Samsung SDS Develops Military Software

Company sets its eyes on leading IT software market at home and abroad expanding into weapons control software

Samsung SDS, the leading Korean IT service company, is expanding its business into the defense sector based on its existing state-of-the-art IT technology and capability.
Starting with the 140 billion won project in 2006 for the Master Control and Reporting Center (MCRC), which was the largest national defense information technology project, Samsung SDS is in the limelight after being selected with SKT, its consortium partner, to become the preferred business player for this year’s battleground control projects such as the third party system development project for the 2nd Phase Navy Tactics C41 and the 240 billion won project for the national defense broadband convergence network (BcN).
One official from Samsung SDS mentioned that the market size of the M&S and the weapons control system was expected to grow by more than four to five times in the next five years. He added that the capability of such newly emerging fields would be strengthened on the basis of experience in battleground control ― namely, the command control field ― that has been the main focus until now.
Also, the company is pursuing a quick response strategy by consistently maintaining the number of experts in the weapons system field, employing more resources in newly emerging fields (M&S and weapons control system) and considering the characteristics of the relevant fields that essentially need investment and research as a priority.
Samsung SDS is also examining ideas of joining hands with prestigious partner companies from home and abroad in order to secure the best talents in the newly emerging fields. Through cooperation with those companies equipped with cutting-edge capabilities in the newly emerging fields, Samsung can expect technical power and synergy effects.
In the meantime, Samsung SDS plans to raise its planned sales proportion in the newly emerging fields from 17 percent in 2008 to 57 percent in 2012, and increase its sales revenue in 2012 by 18 times through the enlargement of the size of the defense business.
President Kim In of Samsung SDS promised to focus on the defense business ― one of the eight key industrial fields of IT convergence ― in nurturing its strategic business and, thereby, contribute to making the defense business a new growth engine for economic development in Korea. He also committed to devoting all his might in raising the capability of the new defense business that has growing potential and can generate a synergy effect with the existing business for sustainable development in the national defense field.
System Development Project for the 2nd Phase Navy Tactics C41:
This is a business project for implementing a state-of-the-art marine command control system for the Navy. It is the subsequent business from the System Development Project for the 1st Phase, which was completed at the end of July 2007. During the 2nd Phase, key functions such as decision-making and combat service support that weren’t supported by the 1st Phase will be developed and be in full swing by the end of October 2010.
The government selected automobile, construction, shipbuilding, garment, education, textile, defense and airlines as the eight key industrial fields that require IT convergence. In particular, the defense industry is likely to receive a boost from the advancement of state-of-the-art defense capabilities as the market will be opened up for Korean IT service enterprises.
The growing importance of IT service in the defense industry is proved by the fact that three defense companies including Lockheed Martin are in the Global Top 10 IT Service Enterprises. In addition, Accenture and IBM have advanced into the defense industry through affiliation and M&A.
The Ministry of National Defense plans to scale up the proportion of weapons system business in the national defense expenditure, and the potential market size of IT service in the weapons system business is likely to double from about 600 billion won in 2008 to about 1.2 trillion won in 2012. The weapon system business is divided into three parts: weaponry, weapons control system and M&S (modeling & simulation). Weaponry includes planes and tanks, and these weapons are controlled by the weapons control system. M&S is represented by virtual training and war games.
In the meantime, Samsung SDS held an executive meeting with 48 of its top-level officers including technology-related ones at its second building in Bundang, south of Seoul, on Oct. 18, presided over by President Kim In. The meeting focused on various subjects on how to make the company a technology leader with discussions on technology research.
At the meeting, it was decided to hold the event every month to discuss various developments in the area of software in a bid to have the company lead the domestic software market. nw

Samsung SDS holds a meeting of its officials and staff to discuss strategies for the application of IT on military weapons.