South Korea’s top manufacturer Samsung Electronics Co. is undergoing reinvention with an aim to bolster soft power in tune with the evolution towards the fourth industrial revolution where the concept of the real and technological world would become blurry.

The traditional finished goods maker that turns out from chip components to smartphones and TVs believes it could have edge over multinational technology rivals like Google if it can catch up in software power and connect it with its hardware networks to enrich smart habitat for its consumers.

Its way of spending its rich cash hoard of $30 billion has become smarter too. Instead of making hefty and risky investment, Samsung Electronics would borrow, outsource, or fund needed technologies and solutions as its recent buying spree of overseas venture entities suggest.

The new management and business methodology became apparent after Jay Y. Lee , vice chairman of Samsung Electronics who had run the company on behalf of his bedridden father, took command over the Samsung empire.

Samsung accelerated its M&A campaign after Lee become the registered member of the managing board last month.

Under careful command from the younger Lee, Samsung Group incrementally underwent retooling. First it shed noncore defense and chemical operations. Then it merged Samsung C&T and Cheil Industries to create a holding entity over Samsung Group whose sprawling businesses were simplified to two mainstreams of electronics and finance.

After it reorganization was complete, the group went overseas in hunt for lucrative assets that could better position itself for future growth.

The M&A targets were focused in software and venture now that the company’s rank in hardware is relatively secure. They also indicate where the Korean technology company’s future focus would lie.

Its shopping list include U.S. Internet of Things (IoT) company Smart Things, Canada’s mobile cloud company PrinterOn, U.S. mobile payment firm LoopPay, and U.S. cloud service provider Joyent and most recently, next generation messaging Rich Communication Services (RCS) provider NewNet Communication Technologies of Canada.

The acquisition drive suggests that the company no longer can rely entirely on upgrades on devices as underscored by its major setback with the most innovative-to-date phone Galaxy Note 7.

The company announced that it was adding digital assistant feature to next premium flagship phone with the help of U.S. artificial intelligence (AI) platform provider Viv Labs that it acquired last month.

Another key area the company is intent on is automotive electronics as the society gears itself towards completely electric and self-driving vehicles.

The recent decision to buy the U.S. automotive electronics company Harman International Industries would also give the company a comfortable lead.

As of 14:46 p.m. on Thursday, Samsung Electronics shares rose 0.9 percent to 1,572,000 won in Seoul trading.

By Song Sung-hoon and Shin Hyun-kyu

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]