The Study of Traditional Industries utilize Innovation to Intensify their Competitive Force----In the case of Traditional Chemical Industry

• Main Authors: CHEN CHUN, 陳君忠
• Other Authors: Jason H.Huang
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/98781116588761209343

碩士 === 國立中山大學 === 國際高階經營管理碩士班 === 92 === It is an unchangeable fact that all industries in the world have to face the severe global competitions. This include all traditional industries in Taiwan which had created the "Taiwan Economic Miracle" in the past tens years. But most of traditional industries have been going to the end of their products’ life cycle through long period. Facing the challenge of the global competitions and the threat of low cost from Mainland China, South-East Asia countries, and India, innovation is the only one method to help traditional industries get rid of the follower and keep long term competition. To increase the creativity in a enterprise is the way to maintain competitive forces. But it takes times, labors, and capital investments for accumulation and creation of technology. It also conceal a lot of risks. Therefore, the strategy of most companies will invest their resources on the sustaining innovation instead of the disruptive innovation. Because the sustaining innovation will not fail normally. But actually, The disruptive innovation is the real key point to decide whether the company can sustain or not in the future. The distinctive features of global competitions are that enterprises have to offer the product and service with low cost and differentiation compared with competitors. Here are many good traditional chemical companies in Taiwan share their 80% of R&D resources in the sustaining innovation and 20% in the disruptive innovation. Companies can reach their strategic target of lowering cost and differentiation through sustaining innovation. The disruptive innovation let companies to create a brand-new business for the future market. The 80/20 model can be as a reference for all traditional industries. The knowledge-creating companies utilize knowledge to build their wealth is the smartest method. And the R&D people possess the most important character in this sector. But R&D people also need to work closely together with other departments people in company to create synergy effectiveness. Because the different personal ethos of R&D people and characteristics of R&D works, the way how to promote the efficiency among the R&D people and other people is through the mechanism of knowledge management. In the era of Knowledge-Based Economy, step up the innovation of technology, accumulate and utilize the intellectual properties are the ways to increase the enterprises competitive forces.