Research On Strategic Cost Management Based On Business Model Innovation

The management of costs has always been a top priority for business management,and it is also a key link for enterprises to establish competitive advantages.With the in-depth study of related disciplines,people have realized that reducing costs is not the sole purpose of cost management.How to manage costs to better fit the corporate strategic layout and improve the overall operational efficiency of enterprises is the focus of modern cost management research.The business model of an enterprise is the reflection of various transaction relationships and connection methods within and outside the enterprise.It is one of the implementation results of the company’s strategic choice,and is also an important part of the company’s cost analysis and cost management.As the business model of an enterprise shifts toward a value network,the study of strategic cost management must begin with a value network to analyze the key nodes of value-added and cost-cutting efficiency so as to better match the implementation of corporate strategy.This paper starts with the perspective of business model innovation,analyzes the problems existing in the business model innovation based on the value chain,discusses the development trend of the business model from the value chain to the value network,and summarizes the business model innovation based on the value network.The characteristics and advantages of the business model based on value nets are the best solutions for companies to choose their business models and transform their strategies.Because the business model of an enterprise involves many links related to the strategic cost management of the enterprise,such as strategy,organizational structure,and business process,the business model innovation based on the value network will inevitably result in a major adjustment of the strategic cost management model of the enterprise.On this basis,this paper first summarizes the characteristics of strategic cost management based on value network,and then analyzes the strategic cost management model based on value network in terms of strategic positioning,cost drivers,and value network,and points out that value network strategic cost management can To better meet today’s mesh economy,help companies manage costs from the overall strategic level,and support the implementation of corporate strategy.Finally,this article takes the case of Midea Group as a case,and excavates from the perspective of strategic transformation and business model innovation of Midea Group.It is found that enterprises have changed the key links such as organizational structure and business process through the innovation of business model based on value net,and the strategic cost management Application and implementation are also somewhat different.Companies can enhance their cost-competitive advantages under the new economic situation by improving the efficiency of each link in the value network and optimizing resources.Finally,based on the above research,the paper puts forward conclusions and suggestions related to business model innovation and strategic cost management,and provides reference for the strategic transformation of the company under the supply side reform and strategic cost management under the new economic situation.