Based on the profound changes in the world's business environment and the development trend of enterprises, and through the analysis of a large number of successful cases, we believe that the core strategy of business model innovation should include five aspects: value innovation as the soul, customer capture as the center, economic alliance as the carrier, resilience as the key, and information network as the platform.
Value innovation as the soul
The soul of business model is value innovation. The core of business operation is the realization of market value, which must be created with the help of business model for value creation, value marketing and value provision, so as to realize enterprise valorization. The business model should answer a series of questions: what customers to provide value, what kind of value to provide customers, how to provide value for customers.
Focus on asset-light operation
The so-called asset-light operation is the scientific allocation of various resources on the basis of limited resources, to minimize the investment in the business model to achieve enterprise valorization. Light assets are the various assets that lay the foundation of enterprise competition in the knowledge economy era, including enterprise brand, enterprise experience, standardized process management, governance system, relationship resources with all parties, customer relationship, human resources and so on.
The core of asset-light management is knowledge management, which is a good management of intellectual capital. It requires efficient knowledge-based employees to combine into highly performing work teams, integrate corporate resources such as customers and suppliers, and utilize network technology to do effective communication and coordination to provide valuable production and services. The actors of asset-light management are all stakeholders in the enterprise value chain, including employees, suppliers and customers. Light asset management should not only have strategic planning, process optimization, more importantly, there should be a kind of corporate culture compatible with light asset management, with corresponding incentives to ensure that the value created by light asset management.
Strengthening market value management
Strengthening market value management must respect the law of value to do a good job of matching stock price and value. There are two major factors affecting stock prices: one is internal, i.e., the intrinsic value of the stock; the other is external, i.e., the market's discovery and recognition of the intrinsic value of the stock.
To enhance the investment value of the company, it is necessary to continuously improve the operational quality of the enterprise. It is necessary to emphasize the main business of the enterprise, construct a strong position in the industry, and form a sustained profitability, which is ultimately reflected in the rising market value of the company. At the same time, listed companies should also build a rigorous governance structure, cultivate excellent team quality, standardize the level of company operations, enhance the company's growth, transparency and integrity and other initiatives to create corporate value and promote market value appreciation.
Constructing a corporate value network
With the increasing competition and the establishment and development of corporate alliances, future competition is no longer between companies, nor is it between a single linear value chain; companies are moving from creating value independently to creating value cooperatively, and there are multiple value chains to construct a corporate value network. In the value network, enterprises can connect many partners together, and through effective resource integration, constitute a fast, reliable and convenient system to adapt to the ever-changing market environment.
The most typical example is Cisco, which has successfully utilized the "external resource production method". Cisco's business model is: the entire system of product manufacturing commissioned design, commissioned manufacturing, commissioned sales. The use of the network makes designers and suppliers look like a department of their own. This does not require the establishment of new factories, you can expand production capacity four times, so that the time to market for new products shortened by 1 / 3, the staff is only 1/4 of the traditional enterprises, annual savings of up to 500 million U.S. dollars.
Creating value for customers in the broadest sense
The purpose of value creation is to benefit all stakeholders in the enterprise value chain. Customers in the broad sense include customers, shareholders, employees, and society. This requires a business model that creates four types of value:
I. Customer value. Can provide customers with first-class products and services, and strive to create value for customers. Creating customer value is the basis and guarantee for creating other values.
Two, shareholder value. Can provide shareholders with sustained, stable, high level of value returns.
Three, employee value. Can create good growth and development space for employees, so that employees and the development of the enterprise *** with the growth.
Four, social value. Can strive to return to society and make positive contributions to social development.
Occupy customers as the center
Business model innovation must be customer-centered, shifting from enterprise-based to customer-based, from occupying the market to occupying the customer, must be based on customer-centered, creating value for customers. From the consumer's point of view, carefully consider the benefits that customers expect to obtain, only the competitive perspective deep into the level of value creation for users, in order to enter the competitive space of the swim.
Careful study of customer needs
Customer-centered, that is, careful study of customer needs, from the customer's point of view, the important thing is not what the enterprise can provide for the customer, but what the customer wants to get. Customers' expectations are more important than the product itself, and the key to improving satisfaction is that companies must effectively meet customers' expectations of their own products or services in accordance with their requirements.
Customer requirements are diverse, to be screened, for the special needs of customers, to achieve "differentiated", "personalized" service. At the same time, enterprises should predict the demand, guide the demand, tap the potential needs of customers, the key lies in the forward-looking judgment, moderately ahead of the vision, the means of science and technology to guide customers. Through researching customers, guiding customers, serving customers, winning the first opportunity in the market, winning the competition.
Implementation of key account management
The funnel theory in marketing suggests that: as the enterprise will focus on the management of pre-sales and sales, resulting in after-sales service in the existence of many problems can not be resolved in a timely and effective manner, and ultimately, will make the loss of a large number of existing customers. In order to maintain sales, enterprises must continue to replenish new customers, and so on in a continuous cycle. Because the cost of fighting for new customers is obviously much higher than the cost of retaining old customers, so from the perspective of customer profitability is very uneconomical. For companies, the importance of serving existing high-value customers cannot be overstated.
No matter what kind of industry, large customers have a large contribution to income and business growth potential is characterized by the enterprise's "gold customers", must lock large customers, the establishment of account manager system. The implementation of the large customer service, consulting services, lifelong service.
Implementation of customer interaction management
Customer-centered must deepen the service, the implementation of customer interaction management. Let the customer in the enterprise management process dominant position, the customer front, so that its participation in the product or service design, production, pricing and other processes. Through this way to produce new products to truly meet customer demand, effectively improve customer loyalty.
Dell's entire design, manufacturing, and sales process is tightly focused on the consumer. The direct marketing business established by the company began with telephone visits, followed by face-to-face exchanges, and now it is possible to communicate through the Internet. These practices can get customers' reactions in a timely manner, and comprehensively obtain customers' suggestions for products, services and other products on the market, and know what kind of products they would like the company to develop.
Creating new added value
The price of a product is actually made up of "product cost + added value". Why is it that some products of the same type, such as watches, are sold for only a few dozen dollars, while others can be sold for tens of thousands of dollars? In this case, "added value" plays a key role.
If there is no qualification, through the value-added to the product value-added approach is very much in practice there are three main ways:
One, the cultural value-added. With the improvement of economic life, cultural consumption demand continues to rise, people are no longer satisfied with the use of products, and more in pursuit of visual, auditory or other sensory enjoyment, which is the so-called "experience consumption.
Second, the added value of services. The new business environment, products and services compared to the service is more important. Bill. Gates believes that 80% of Microsoft's future profits will come from the sale of products after a variety of upgrading and maintenance services such as consulting, only 20% of the profits from the sale of the product itself.
Third, the attachment value-added. Now the product itself is less and less profitable, and the main point of profit lies in the accessories. The most typical is that more and more online games, providing players with free use, the real selling point is to buy and sell props. Industry insiders comment: the traditional price war is doing subtraction, reduce the scale of the industry and market capacity, grab competitors' turf, harmful to the industry. But free online games are actually doing "addition", attracting more players, creating new demand and expanding the scale of the industry.
Economic alliance as a carrier
Today's rapid development of science and technology and the increasing complexity of products, no matter how strong the strength of the enterprise, the era of individual control of all the products and all the technology is gone. There is less and less potential to be tapped into the traditional value chain, and it is becoming increasingly difficult to find effective sources of productivity improvement from within the organization.
According to statistics, 1/3 of the value curve created by companies today originates within the organization and 2/3 between companies. The new business model is no longer a lone enterprise, but must take the alliance as a carrier to develop the alliance economy. Through cooperation, aggregating each other's core competencies in the value chain, creating greater value and forming stronger group competitiveness. Enterprises to develop alliance economy, to do the following three points:
Strengthen the supply chain management
Supply chain is a new form of business organization and mode of operation since the 90s of the last century, the international emergence. It is a network chain structure formed by the consumer demand, through product design, raw material supply, production and manufacturing, wholesale, retail, after-sales service and other links, to the final delivery of the product to the end user of the various manufacturing and commercial activities.
The Hong Kong Li & Fung Group is an international model for the implementation of supply chain management. For a long time, manufacturers, traders and sellers are from their own point of view to consider the cost, pay little attention to the total cost of the entire production and marketing process, they have always been segmented, each accordingly. After entering the 90's, Li & Fung Group boldly innovated in the business model, the company centered on customer demand, from "supply", "production" to "sales" strung together into a "chain". The company centers on customer demand, from "supply", "production" to "sales" to form a "chain", forming a holistic solution, coordinating all links, and ensuring that products are fast, timely, of high quality, in the right quantities, inexpensive, and highly profitable.
Build the core competitiveness of enterprises
Core competitiveness is the enterprise in the market competition, to obtain and expand the advantage of the decisive force. It has various forms of expression, which can be design capability, manufacturing capability, distribution capability, transportation capability, brand or goodwill, but in its essence, the core competitiveness of an enterprise is the deep ability structure of the enterprise, the knowledge and resources unique to the enterprise, and the special ability of the enterprise to gain a competitive advantage, which is a kind of heterogeneity of the resources. Core competitiveness must have a key contribution to the value valued by customers, and has the characteristics of uniqueness, durability and extensibility.
Outsourcing non-core business
Outsourcing of business is an important component in supply chain management. Under the condition of limited resources, in order to obtain the competitive advantage, the enterprise only retains the most critical core business, and outsources the non-core business to a professional company. By establishing strategic partnerships with suitable companies around the world and integrating them with the power of external resources, they can realize greater value for themselves.
For many large companies, outsourcing has become part of their corporate strategy. For example, Nike, as a world-famous sports shoes manufacturer, the company does not produce a complete pair of sports shoes, but only produces the most critical part of them - the air cushioning system of Nike shoes, while the rest of the parts are provided by external suppliers.
Resilience as key
Darwin once said, "It is not the strongest species that survives, nor the most intelligent that survives, but only those that are best able to adapt to change that thrive." The laws of nature are equally applicable to all economic entities today. If the business model determines the success or failure of the enterprise, the ability to adapt is the key to the success or failure of the business model. Resilience is the ability to adapt to the complex and changing market and the strategy to adapt, which is the basis of competitiveness.
Time is the first cost
Today's society is not only the competition of economy of scale, but also the competition of economy of speed, and time is the first cost. Enterprises must make rapid adjustments due to time, place, competitors, changes in customer consumption psychology, etc., to grasp the direction of change and opportunities to accelerate the development of their own. In order to achieve this goal, the enterprise collects market information to highlight the "early" and "full", to make contingency decisions to highlight the "fast" and "accurate "so that we can fight for the initiative and seize the first opportunity. In practice, we should be able to sensitively grasp the information, accurately make judgments, correctly make decisions, fast action and dare to take risks.
Practice has proved: enterprises that can achieve sustained development are those that have a strong ability to adapt and have a first-mover effect. At present, the network instant messaging tools more and more, but these tools are very difficult to shake the monopoly of QQ. Because QQ has been focusing on the study of user needs, in the product, service, operation and other three aspects of every possible way to meet the needs of users, from voice chat to video chat, from online games to online auctions, each time the introduction of new services are in line with the development of the times, to seize the hearts of users, so as to maintain a first-mover advantage.
JIT change with demand
Enterprises must change with market demand, to follow the market, with limited resources to obtain the benefits of the JIT was born in this context, it is a change in the market demand "pull" management system, the establishment of this concept can be prompted to the enterprise in accordance with the laws of the market, requiring enterprises in all aspects of the business of the "pull" management system, the establishment of this concept can prompt enterprises in accordance with the laws of the market, requiring enterprises in all aspects of the business of the "pull" management system. Market laws, requiring enterprises in all aspects of the exact time, the exact place, to provide accurate products to eliminate waste, save time, cost savings and improve the quality of logistics services.
JIT from the customer's point of view rather than from the point of view of the enterprise or function to study what can produce value; according to the entire value stream to determine the supply, production and distribution of products all necessary steps and activities; to create no interruptions, no bypass, no waiting, no return value-added activities of the flow; in time to create the value of the value of the customer pulled only by the customer; with the market changes, and constantly eliminating waste, the pursuit of perfection.
Personalized customization
With the development of the global economy and the intensification of market competition, the original relatively stable market has turned into a dynamic and changeable market, i.e., the life cycle of the products is shortened, the varieties are increased, the batch sizes are reduced, and the customer's requirements for the product's delivery lead time, price, and quality are getting higher and higher. In this context, personalized customization is becoming increasingly popular, and the traditional business model of enterprises has been challenged.
This new production method takes into account a comprehensive set of requirements for the control of the manufacturing operation system, including: rapid increase in product variety, smaller batch sizes and increased randomness of orders. Its main advantages are: to enable enterprises to provide products to meet the individual needs of customers, better adapt to the rapid changes in the market, help reduce production costs, the continuous improvement of the process and products, and the long-term survival and development of enterprises. Dell is the pioneer of mass customization.
The information network as a platform
With the rapid rise of the Internet, the global economic network, digitalization has become the main theme of the times, the network economy is the background of economic globalization, modern information technology as a means to profoundly affect the development of human economy and society. The new business model must pay attention to the power of the information network, detached from the information network platform, the enterprise will have no competitiveness to speak of.
Constructing the competitiveness of the virtual economy
Because of the rapid development of Internet technology, the rapid growth of global Internet access enterprises and users, the network virtual space is providing the world economy with a new, multiplying source of profit. More and more enterprises are increasingly concerned about their own survival and development in the network environment, constructing the competitiveness of the network virtual space has been urgent.
In the information society, the network platform can create countless myths. Enterprises must have a keen sense of business, to seize the business opportunities, gallop in the network world, while well connected to reality. Called the first network of food "QQ energy date" to "virtual + reality" business model is widely praised by the industry. The traditional food enterprise Lvsheng Company cooperated with the day smooth technology company, the first time in the network game in the sale of real goods, the game players can be in the game of virtual food store, order to buy real goods, through the specialized distribution system, can be immediately sent to the hands of the buyer, the buyer can also choose beforehand credit card payment or payment on delivery. This is the first time that the traditional industry embedded in the online game industry, the formation of the network inside and outside the interactive docking in the network era for the first time to realize the "real life" and "virtual life" of the docking.
Speeding up the electronic business
Today, the competitiveness of enterprises is increasingly closely related to the level of information technology. The traditional enterprise management only with the organic integration of information technology, through the enterprise business e-commerce, strengthen the logistics, capital flow, personnel flow and information flow of integrated management, to promote the overall management of the enterprise change, in order to continue to improve the operational efficiency and speed of response, for the development of the enterprise to bring new growth space.
Enterprise business electronic is a new business model, it will operate all business activities, through information technology to implement electronic, digital operation, in order to greatly improve efficiency, reduce costs, shorten the cycle, enhance competitiveness.
Promoting process reengineering
The rapid development of information technology has fundamentally changed the way organizations collect, process and utilize information, thus promoting a huge change in the form of organizations.
Reconstructing the core of the enterprise organizational structure is the implementation of process re-engineering: the original tower structure is being refined, agile, innovative spirit of the flat "dynamic network" structure replaced. In this structure, on the one hand, the computer system will replace a large number of functions of the middle management and control departments, strengthen the direct communication between the decision-making level and the executive level, so that the middle management reduces the level and cuts down the size of the organization. On the other hand, a variety of "work groups" become the basic activity unit of the enterprise, the management mode from the control type to participate in the realization of the full authorization.
The five core strategies of business model innovation are also the guiding principles and basic requirements of business model innovation. Of course, in practice, it should be adapted to the enterprise, flexible application, combined with the actual innovation. Any business model has its suitable environment and survival of the soil. A good business model must always maintain flexibility and adaptability, and only enterprises with a dynamic matching business model can achieve success.
Chinese enterprises have entered the innovation-driven development stage after going through the factor-driven and investment-driven stages. While technological innovation is important, it must be preceded by business model innovation, otherwise the market value of technological innovation will not be realized. Now, what Chinese enterprises lack most is a successful business model, so the innovation of business model has become the key to win the competition of Chinese enterprises.