Management Innovation: The Three Major Strategies for Chinese Mould Enterprises

What is management innovation

Management innovation is one of the three pillars of corporate innovation. According to Paul Romer, management innovation is based on the creation and mastery of new knowledge, actively adapts to the new environment, and promotes new changes and new comprehensive processes in the qualitative and quantitative aspects of production factors.

Specifically, management innovation is based on major changes in the environment (conditions), the management of the main body to choose and adopt new management concepts, management systems, management mechanisms, and methods and methods to make organizations (companies) more adaptable or effective. means.

The premise of mold management companies to achieve management innovation

1. Pursuit of sustainable growth With the accelerating pace of innovation in products, technology, and knowledge, the sustainability of growth has become a more important issue for mold companies than management efficiency.

An enterprise is a man-made system whose internal systems can be transformed. This is an objective condition for enterprises to achieve sustainable growth. Adhere to the concept of sustainable growth management, in the management should focus on overall optimization, emphasize system management, implement the overall function of the enterprise system to optimize; focus on relying on core competitiveness, and constantly improve the market competitive advantage; focus on solid foundation management, management and scientific management , Procedural, standardized and institutionalized; pay attention to people-oriented, and constantly improve the quality of employees, give full play to their role.

2. Improve the operational capabilities of enterprises To achieve “agile management” and enhance the operational capabilities of enterprises, we must make the company’s production, marketing, organization, management and other aspects “agile”, so that the enterprise becomes a brand-new “agility” business entity and realize “ Agile management."

To adapt to the super-speed competition, enterprises must have agility at the following levels:

A. In terms of production, there is the ability to make products and improve services in accordance with customer orders, any volume;

B. In marketing, there are characteristics that focus on customer value, enrich customer value, and produce personalized products and service combinations;

C. In terms of organization, it is possible to integrate internal and external resources related to the production and operation process, and create and leverage resource leverage through interaction and cooperation with suppliers and customers;

D. In management, change emphasizes command and control and changes to leadership, motivation, support, and trust.

3. Transforming the cooperation mode among enterprises Mould enterprises not only provide various products and services, but also must know how to combine their core competences and technical expertise with other various favorable competitive resources to make up for their own deficiencies and limitations. Sex. In the survival principle of mold enterprises, "exclusive" has been replaced by "cooperation" and inclusive. Therefore, mold companies need to change the cooperation model with other companies or organizations.

The modes of mutually beneficial cooperation between enterprises include:

A. Supply chain, especially the cooperation between companies and suppliers. In the value-added chain of the company, the cost of the supply process is relatively high, so the dynamic interconnection of the supply chain is very important.

B. Strategic network type refers to enterprises forming a strategic network by establishing value chains with suppliers, distributors, and end users. The competition at this time also becomes a competition between strategic networks;

C. Cooperative and joint ventures, the performance of companies through the formation of competitors with competitors, as well as with suppliers or other operating groups to form an associate organization, so as to create more value in the market competition;

D. Virtual organization type is the use of information technology to dynamically link various resources, capabilities, and ideologies into an organic corporate network organization, creating value at the lowest cost and fastest speed.

4. Enhance the knowledge and skills of employees The knowledge of a company is considered to be a resource tied up with human resources, funds, etc., and will gradually become the company's most important resource. Improving employees’ knowledge and skills is an important way to gain a competitive advantage.

The value of an enterprise depends more on intangible assets (knowledge). Studies by foreign institutions have shown that 6/7 of the market value of a company depends on "knowledge" assets. The most difficult part of managing these assets is how to treat employees' ideas and knowledge.

5. Switching from performance appraisal to comprehensive performance management The traditional performance appraisal has fatal weaknesses, manifested in: the lack of control from the goal to the formation of performance results; not closed, no organizational means of improving performance as a guarantee, and in the implementation of performance appraisal You may encounter opposition.

Total performance management means making full use of information technology, linking performance management with corporate strategy, and changing static assessment into dynamic management. It mainly includes goal management, key performance indicators (KPI), 360-degree scoring, balanced scorecards, and EVA value management.

6. Use of Information Technology to Change the Mode of Operation of Enterprises Through information integration, the internal resources of enterprises can be centralized, unified, and effectively configured. With the help of information technology tools such as "co-design," "co-manufacturing," and "customer relationship management," companies can Cross the boundaries of internal resources to achieve effective organization and management of the entire supply chain resources.

7. Beyond the "customer orientation concept" Companies must realize that what they are facing is more important than the future market and challenges. To improve the predictability of enterprises and seize the opportunities of the industry, it is not enough to focus on customer orientation. Therefore, companies must have a new competitive thinking that goes beyond "customer orientation." Some high-tech companies headed by Microsoft and Intel have abandoned "customer orientation" for more than a decade and adopted a product-centric business strategy. This successful experience also applies to mold companies.

8. From pursuing one-sided pursuit of self-interest to focusing on fulfilling social responsibilities Good social responsibility strategies and practices can help companies gain commercial benefits while also improving risk management and reputation.

More and more consumers will consider their ethical performance when choosing a business, and ethical business practices have become a top priority. Under the current business environment, it is not a question of whether or not “social responsibility policies should be implemented”, but how to effectively implement them. Most business development plans must carry out moral assessment and environmental impact analysis.

Suitable for mold enterprise management innovation model

1. CIMS—The CIMS (Computer Integrated Manufacturing System), a world-class manufacturing company, is a computer integrated manufacturing system. CIMS is not so much an advanced manufacturing technology as it is an information-based production management method.

The goal of implementing CIMS is to focus on the customer and fully meet customer requirements in terms of T (delivery period), Q (product quality), C (cost), and S (service) in order to truly win the market. CIMS is becoming the main symbol of first-rate manufacturing companies.

2. Lean production - a new production method The main characteristic of lean production is the rapid development and design of new products with high quality and low cost.

It attaches great importance to the integration and effective use of technology, management, and manpower, and emphasizes that advanced technologies and equipment can only fully function through innovations in corporate management, organizational restructuring, and improvement in personnel quality. Concurrent engineering organizes the development, production, and marketing of products to meet the needs of today's small-volume, multi-species markets.