Business Model Innovation&Research Of Xi’an SG Company

Enterprise is profit-driven organization. Business model is the foundational way of business operation and profit, which is the strategic core for enterprise’s development. After decades of development, the machinery and equipment manufacturing enterprises in China still keeps the business model of technology research, design and manufacturing, marketing and sales, as well as commissioning and service. With the development of metallurgy, petroleum, chemical, fertilizer and other process industries in China, the demand for the machinery and equipment manufacturing enterprises which serves for the process industries correspondingly has changed dramatically. It has changed from the demand for single product to that for the complete systematic one-station solutions, including project engineering, financial support, construction, installation, commissioning, maintenance, performance monitoring, upgrading, recycling, etc.. Therefore, there is an urgent need for the machinery and equipment manufacturing industry to innovate on the existing business model of providing single product. So, the manufacturing industry must undertake strategic transformation as the core of survival and development.The focus of this thesis is that SG company, as the leading enterprise in China machinery and equipment manufacturing industry, restricted by the original business model, which causes the sluggish profit growth, the limitation of economy scale, as well as the problem of the customer satisfaction, should seek the innovation of business model as the core competence and the fundamental way of survival through making comparison between the similar enterprises in the industry in the domestic and oversees market, as well as the comparison of its own development by collecting data of internal organization structure, operation performance, hence, summarizing the existing problem and analyzing the reasons from the business model point of view; this thesis also proposes the proposals for SG business model innovation, the principals of innovation, design and application of the innovative business model, the associated analysis and integration of the market application; thus, the conclusion is drawn by making comparison between the innovative business model and that of the original one.This thesis includes seven parts:first chapter describes the studying idea and method from the background and the meaning of this thesis; the second chapter reviews the theory of business model and the innovation and the importance to the survival of the enterprise; the third chapter discusses the necessity of the business mode innovation, analyzing the situation and problems of the original business mode; the forth chapter summarizes the associated relationship of the innovative proposal and integration of the market application from the principals of innovation, design and operation of the proposals; the fifth chapter is about the strategy and measures matching the innovative business model from the barrier analysis, the sixth chapter describes the results of the business model innovation from the economic results and the meaning and effects of it; the seventh chapter draws up the conclusion, as well as the problems for further study.By using the business model and the innovation theory to study the Shaangu business model innovation, this thesis obtains the method for the design and implementation of the business model innovation, which proves that SG selects a path matching the market demands, self development and industry trends. Moreover, the essential point of this thesis can play the role of inspiration and guidance to the enterprises in the industry for making its own development plan and strategy.