Business Model Innovation in the Electronic Manufacturing Overhaul Business - A Case Study of Pump Overhaul in H Co

Abstract

Since the panel industry in Taiwan was hit hard by the financial crisis in 2008 companies have stopped investing in new-generation plants The equipment is old and the maintenance cost has been compressed for many years now resulting in poor equipment utilization The current equipment maintenance business model is no longer satisfactory In the face of customer demands companies need to innovate and change in order to gain a competitive advantage and carry on their competitiveness This study adopts the method of case discussion as qualitative research to study pump maintenance Company H and explores whether the current maintenance difficulties could be solved through business model innovation The results of the study found that the value proposition provided by suppliers in the past is to provide the highest quality of maintenance which does not strive to meet the needs of customers It should be converted into a service-based “total solution ” After such a transformation the supplier has become more motivated to improve quality and maintenance technology The value created by this method has never been achieved by past customers when they tried to force suppliers The key factor of such a transformation is to "take more risks " Technically superior suppliers can convert their leading technologies into huge commercial benefits changing the profit model and obtaining more stable cash flow In order to obtain higher payment for “operating time” and meet the real needs of customers the decision makers of Company H believe that it is necessary to clearly define improvement goals formulate exit mechanisms and formulate three supporting measures including improvement learning plans--agreeing to implement this business model change agreeing that such a change will benefit the company and verifying that this innovative business model is truly feasible in Company H and not just a theoretical solution

Date of Award	2020
Original language	English
Supervisor	Shao-Chi Chang (Supervisor)