HYOSUNG TNC

We are experiencing the most significant recession since the 2008 financial crisis due to the global economic downturn and rising interest rates. In response to rising commodity prices and volatile exchange rates, companies examining their management processes to enhance efficiency. Hyosung focuses on agile management. Cho Hyun-joon, Chairman of Hyosung Group, stressed the importance of agile management, saying, "Like a tiger, we must adapt swiftly and efficiently to new technologies and trends to remain competitive." The dictionary meaning of “agile” is "nimble" or "quick-witted," but what exactly does agile management involve?

Agile was originally one of the software development methods. In software development, it refers to the ability to respond to the environment without sticking rigidly to an initial plan, corporate management has adopted this characteristic. By responding rapidly to customers and employee feedback, this management style actively responds to changes by constantly revising processes and policies.

The previously management styles, known as 'waterfall,' developments progressed sequentially according to the plans, much like a waterfall cascading down from top. In this management style, it was difficult to respond appropriately to sudden issues or changes. As a result, agile management is becoming increasingly important and valuable, as it continuously reflects and modifies the market's evolving needs based on customer feedback from start to finish.

Agile Management: Millennials’ Choice

Millennial, who represents a large percentage of the labor market, were born between the 1980s and early 2000s and place a high value on personal freedom and work-life balance. Therefore, corporations are no longer able to maintain their pyramid structure. The millennial generation prefers startups with flexible cultures and highly values horizontal and open communication within organizations. Rather than simply working to make a living, people seek jobs that allow them to voice their opinions.

Through agile management, companies can break free from traditional corporate cultures and facilitate active communication between the older and millennial generations, attracting high-quality millennial talent. The benefits of agile management are aligned with the needs of this generation's workforce in recruiting top talent. Agile management has the advantage of being able to generate rapid and more effective conclusions and implantation through prompt execution and continuous incorporation of external feedback, all without rigid plans. Essentially, it enables flexible responses to environmental changes while achieving high-quality results.

When many companies halted investment and faced challenges due to the COVID-19 pandemic, Hyosung took proactive measures by investing in advance. They anticipated that working from home would become the norm and “at-home workout” trend would rise, increasing demand for comfortable clothing materials and spandex. As a result, Hyosung expanded its overseas spandex factories and restructured its global production system by the end of 2020. Therefore, Hyosung maintained its position as the top market share holder in the global spandex market and achieved impressive business performance despite the economic downturn.

There was more to their efforts. The company launched a wide range of environmentally friendly black products in April this year, eliminating the need for a separate dyeing process. Due to the increasing demand for eco-friendly materials in manufacturing processes, especially among renowned global fashion brands, they developed black spandex that does not require dyeing. This demonstrates their ability to adapt quickly to changes in consumer awareness and their commitment to practicing environmental sustainability.

Moreover, Hyosung continues to invest in new ventures, including liquid hydrogen and advanced carbon fiber materials. By 2023, Hyosung Heavy Industries, plans to construct Ulsan's largest single-scale liquid hydrogen plant. As part of its expansion, Hyosung Advanced Materials operates a carbon fiber factory with a capacity of 4,000 tons. Hyosung’s core subsidiaries have achieved commendable result despite the COVID-19 situation. The company’s ability to sustain steady growth can be attributed to agile management, which enables it to respond promptly to changing trends and market feedback.

The Foundation of Agile Management: Digital Transformation

Agile management is rooted in digital transformation. By leveraging digital technology across various domains of life, agile processes are deeply intertwined with revolutionary concept digital transformation. There are numerous examples of digital transformation in everyday life in this era. Digital innovations like artificial intelligence, cloud computing, big data, and 3D printing to instigate radical organizational changes or integrate digital elements into existing industries.

Some examples include using cloud services to access data anytime and anywhere and engaging in conversations with AI chatbots. Automating repetitive tasks can significantly enhance the quality and speed of work, naturally increasing productivity. As a result of big data analysis, we can gain a more systematic understanding of market trends and customer behavior, surpassing the previous reliance on human conjecture and prediction. By implementing such strategies, costs can be reduced while results can be improved. As a result of combining agile approaches with digital transformation, refined outcomes can be generated by continuously incorporating data insights and adapting to changes.

In its subsidiaries, Hyosung Group has established Smart Factory Task Force Teams. From raw material imports to production and shipping, the company integrates newly acquired technologies into the Smart Factory system to control processes. It collects and analyzes product conditions and equipment status data to control processes. In 2019, Hyosung launched the "C-Cube Project" to accurately evaluate customer needs by collecting customer voices (VOCs) for databasing and subsequent business incorporation. 62 global trading corporations and 32 production corporations provide feedback as part of the project. These companies are in China, Vietnam, Turkey, and Brazil. Hyosung is also actively engaged in digital-based management, collaborating with ST Telemedia Global Data Centers for data center operations and launching a curation-based NFT platform with Galaxia Metaverse.

Hyosung has uses the metaverse platform "Gather Town" to introduce new employees to the company. A sense of community and camaraderie was cultivated among newcomers while overcoming the limitations of remote training. By mimicking real-world environments, they created virtual training spaces resembled the company's headquarters, auditoriums, and factories. In an immersive environment, new employees explored the virtual space as avatars, learning about their job and company life. Hyosung's proactive adoption of the latest technologies to communicate effectively with millennials is an example of agile management.

Hyosung Group: Building the Future with Agility:

Hyosung recently implemented an independent management system led by professional managers at each subsidiary to streamline group operations. Based on each subsidiary's strengths, the company aims for competitiveness through rapid decision-making and expertise in their respective fields. Hyosung TNC, Hyosung Advanced Materials, and Hyosung Chemical, collectively called the "Big Three in Materials," have achieved their highest performance since they were founded. One’s ability to respond nimbly to uncertain times can determine whether it becomes a crisis or an opportunity for new growth. By embracing agile management policies, Hyosung will continue to achieve new heights with agility and swiftness, demonstrating its spectacular growth.