Esteemed experts in corporate management from South Korea, Professor Jaeyoung Song of Seoul National University and Professor Ji-Hwan Lee from KAIST, collaborated on an analysis of SK Innovation's four-decade journey in R&D management. The scholars shared their findings during a conference at the SK Seorin Building on July 28.
The professors highlighted SK's impactful R&D management, which played a crucial role in transforming a domestically-focused petroleum enterprise into a globally recognized leader in green energy. This transformation was achieved through a strong leadership framework and strategic R&D management that enabled SK Innovation to excel in both the petroleum sector and vertical integration.
The experts emphasized how SK Innovation's competitive edge in the petroleum industry, combined with diverse technical capabilities, facilitated the advancement and commercialization of core ventures such as chemicals, biotech, lubricants, separators, and batteries.
This foundation paved the way for SK Innovation to achieve autonomous management and transition into a forward-looking entity in the realm of green energy and materials.
The scholars identified a distinct management approach called the "SKinnoWay R&BD," comprising four key components: Entrepreneurship, Enhancement, Exploration, and Expertise. These elements encompassed management philosophy, bolstering existing businesses, developing new future-oriented ventures, and technical capability.
The analysis showcased SK Innovation's commitment to product quality, competitive pricing, process improvement, and technical proficiency. Additionally, the scholars highlighted the significance of Research & Business Development (R&BD) as a central pillar of SK's competitive strategy, resulting in successful endeavors like batteries, separators, lubricants, and bio-business.
Another notable aspect of SK Innovation's strategy was its establishment of an integrated technology research institute system, a first among Korean energy firms. The experts underscored the role of strong leadership in ensuring the longevity of R&D success.
Examples from the past, such as Chairman Chey Jong-hyon's focus on R&D management after acquiring a crude oil venture, illustrated the company's long-standing commitment. SK Innovation's continuous emphasis on technological advancement and its transition to green energy were emphasized by current Chairman Chey.
The professors indicated that R&D should remain central to SK Innovation's growth strategy, exemplified by the integration of MPR (Marketing, Production, and R&D) methodologies into the SK Management System (SKMS) and SUPEX pursuit methodology. This integration ensured R&D's ongoing importance in the company's operations, fostering collaboration between support departments and top management.
The experts concluded that SK Innovation's enhanced R&BD management serves as a strategic initiative driving its identity as a leader in green energy and materials. This approach is founded on technological proficiency, business acumen, and experiential knowledge. The scholars suggested ongoing support for this approach through systemic enhancements, operational systems, and cultural innovations.
