SME business model innovation

Reason for selection: Small and medium-sized enterprises have never been more in crisis than this year. The second wave of economic crisis represented by the European debt crisis is fierce. The decline in demand and the rise in raw materials, labor and various costs have caused the profit margin of small and medium-sized enterprises to drop to the bottom; the central bank has repeatedly reduced money this year, and the capital chain of small and medium-sized enterprises has been broken. occur in groups. There are many external dangers and various internal constraints. Only by innovating in business models can enterprises survive.

Representative practice: NVC Lighting's differentiated market positioning, rural-based business system reconstruction

Business model, the simplest definition is the way or method the company makes money. Harvard professors Mark Johnson, Clayton Christensen and SAP CEO Henning Kagermann wrote in the "Business Model Innovation White Paper" that any business model is a A three-dimensional model consisting of value, corporate resources and capabilities, and profitability. Professor Wei Wei from Peking University HSBC Business School, a domestic expert on business models, believes that a business model is the transaction structure between an enterprise and its stakeholders. A complete business model includes 6 elements: positioning, business system, profit model, key resource capabilities, cash Stream structure and enterprise value.

In the 2011 SME market competition and breakthrough, some companies broke the market ceiling through business model innovation, such as NVC Lighting through repositioning, from the initial sales of products to selling services, and then to launch the overall lighting in 2011 Solution, service customer coverage from commercial lighting to retail and high-end engineering penetration. Another example is the village base, which is rooted in the western region and combines Chinese dishes with the standardized process management of western fast food to realize the reconstruction of the business system.

They are all in the 6 elements of the business model, they have tapped their most favorable key points of transformation, broke the general business model in the existing industry, and found a new growth path that generates customer value. Dai Changjun, a professor and doctoral supervisor at Donghua University's Rising Sun School of Business Administration, said that business model innovation is at the level of corporate strategy, and the success of such innovation will play an immeasurable role in the rapid growth and profitability of small and medium-sized enterprises.

Differentiated market positioning: lighting companies that provide customers with overall solutions

In the 1990s, the excess income of lighting companies came from high quality and low prices. Since the 21st century, the expansion and excess of manufacturing capacity have made Customer choice power is increasing, downward pressure on prices is increasing, and profit zones are shifting. The new profit zone shifts from the product itself to the business activities before and after the product is sold, including design, consulting and post-service. These new profit margins are several times higher than the revenue generated from direct product sales.

Wu Changjiang, President of NVC Lighting, noticed these changes keenly and proposed a new unique positioning of NVC in 2011. "NVC is not simply selling products, but providing customers with overall lighting solutions." NVC has become a channel dealer with more than 3,000 specialty stores.

NVC headquarters, operation center, and specialty store services are an integral part of NVC's one-stop lighting solution offering. The focus of the NVC headquarters is to provide products, engineering support and program guidance; the focus of the operation center is to discover engineering, logistics distribution and installation services; the focus of the specialty store is product display and image promotion.

At the same time, NVC Lighting has also strengthened mergers and acquisitions and cooperation in the industry chain to better serve customers. On September 8, 2011, Schneider Electric officially signed a strategic cooperation agreement with NVC Lighting. Schneider Electric chooses NVC Lighting to cooperate, focusing on NVC's channel advantages, and NVC's introduction of Schneider Electric will add thousands of saleable electrical products to dealers. Schneider will help NVC Lighting develop and serve engineering customers.

On September 21, 2011, NVC Lighting officially provided a one-stop solution for the product chain for the petroleum and petrochemical industry. "This plan is divided into two dimensions: First, from the four aspects of lighting solution design, product development and production, lighting product construction and installation, and quick-response after-sales service, NVC can meet the needs of industrial customers in all aspects. Second, NVC can not only provide industrial customers with lighting products and services, but also meet the complete needs of office lighting, living lighting and park environment lighting in industrial parks. Like NVC, it can provide professional integrated lighting There are very few solutions companies in China." Ji Hairong, general manager of NVC Industrial Lighting, introduced. Professor Wei Wei suggested that it would be more instructive for enterprises to focus on the evolution process and strategic path of their business model while focusing on the overall solution of NVC lighting positioning.

Business System Reconstruction: Standardized Chinese Fast Food main ingredients. The village base creates Chinese-style food on the production line of the modern industrial society. The rice and noodles are fragrant between the cups and saucers. What remains unchanged is the same quality control and efficiency pursuit as Western food.

In 1996, Village Foundation was founded in Chongqing. Two years later, it introduced Chinese food categories such as double yellow lion head, golden fragrant pork ribs, pickled pepper and smooth chicken, transforming from the original western fast food to Chinese fast food. Today, the dishes of the village base are based on Sichuan cuisine, and have introduced and digested a variety of dishes from Guangdong, Sichuan, Jiangsu, Zhejiang, etc., to form their own unique series of dishes. The price is relatively cheap compared to Western fast food. Differential advantages, customer positioning expands from children To young white-collar workers, college students and other groups of people. On average, Ruralji launches 1-2 new products every month to meet the tastes of subdivided people in different regions.

The difficulty of Chinese fast food is not only to maintain the taste, but also to solve the problems of speed and standardization. To this end, Village Ji has created a unique way of keeping warm to solve the speed problem of Chinese fast food. This heat preservation method improves Chinese fast food, maintains the taste of the meal to the greatest extent, and ensures that customers can eat in a short time.

In 2007, there were only 9 chain stores in the village base. In May 2011, the village base rapidly expanded to 141 directly-operated stores. The management idea of Li Hong, the founder of Village Foundation, is very clear: the fast food industry is mainly characterized by rapidity and standardization, and supporting these advantages requires two chains of sales operation and supply chain management. Its supply chain strategy, with Chongqing as the center, gradually expands outward, and starts to build large-scale stores in Chengdu, Xi'an, Hunan and Shanghai. The construction speed of rural-based logistics centers is synchronized with the speed of opening stores.

The logistics center relies on its own fleet to sort out the periodic order quantity required by each store one day in advance according to the store's order plan, and deliver the goods to each store one week in advance. During the period of national expansion of rural bases, it divided the country into 4 regions, established first-level logistics distribution centers with Wuhan and other cities as first-level logistics distribution centers, and closely cooperated with second-tier logistics distribution centers in second-tier cities to form a unified logistics supply chain system across the country. . Professor Wei Wei's research found that the solid supply chain of rural bases is mainly in southwestern regions such as Chongqing and Sichuan. The supply chain extends to Jiangsu and Zhejiang, and the foundation is relatively weak.

With the vigorous development of the fast food and group meal industry, the strength of supply chain management, central kitchen, quality control and other capabilities will become the key factors affecting the future competition landscape. In the process of rapid expansion, Rural Foundation has also encountered many problems such as business model being copied by peers, personnel training not keeping up, and management being immature. In May 2011, Village Foundation introduced Zhong Caimin, the founder of McDonald's China, as a company executive responsible for the company's daily operation and management. Li Hong hopes that Zhong Caimin's rich management experience in foreign companies can bring advanced management concepts to the company.