| Summary: | 碩士 === 國立交通大學 === 管理學院高階主管管理碩士學程 === 95 === The manufacturing oriented industry of information technology at Taiwan has been facing the severe challenge of thin gross margin for years. In addition to further expanding the size of operation to be in a more economic size as well as trying hard to squeeze and low down the operating cost, branding turns to be a new focus of IT industry especially right after the invention “Smiling Curve” of Mr. Stan Shih, the founder of Acer in 1992.
Unfortunately, branding itself does not mean higher profit is guaranteed. In the traditional buy-and-sell business model, the zero-sum conflict is always there and needs to be resolved to achieve better effectiveness of industry value chain.
In this case study, AG Neovo develops its business model into an MP-LC-LR way that makes the best use of collaboration among partners in its value chain and demonstrates an outstanding result.
We can conclude from the case study on AG Neovo:
1.Value innovation is not limited to the products and services. It can be originated from the
innovation of new business development.
2. Some zero-sum conflicts exist in the traditional value chain of IT industry that bring down
the total effectiveness of subject value chain. Effective collaboration among partners in the value chain is the best way to have these conflicts eliminated while the value chain effectiveness can therefore be improved at the same time.
3. MP-LC-LR way developed and implemented by AG Neovo shows the outstanding
effectiveness of value chain management. It further proves that the improvement of current value chain in IT industry is feasible and possible.
4.The development and implementation of a new business model is originated from the
strategic thinking and capability of execution in value innovation.
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