Research On The Business Model Reconstruction Of A Smart Fire Protection Company Based On Wei-Zhu Six-Element Model

In October of 2017,the Ministry of Public Security issued the Guiding Opinions on Comprehensively Promoting the Construction of "Smart Fire Protection",marking the official launch of the national smart fire protection market.According to the progress of the smart city construction,it is estimated that in the next five years,the growth rate of China’s smart fire protection investment is expected to remain at about 15%,and the smart fire protection market size is predicted to reach about 8 billion yuan by 2025.However,although the future market for the smart fire protection is huge,the construction of the smart fire protection in my country is still in the early stage,and the phenomenon of backward development and irregularities is prominent.For example,the lack of leading enterprises to dominate the market,the industrial value chain urgently needs to be integrated,industry competition is fierce,the awareness of the corporate cooperation is not strong,and so on.It can be seen from this that my country’s smart fire protection industry is an industry with both opportunities and challenges.Dalian A Smart Fire Protection Technology Co.,Ltd.(A Smart Fire Protection Company for short,the same below)was established in early 2016 under such industry background.A Smart Fire Protection Company has its own advantages.However,since the establishment of the company,its performance has been at the average level of the industry,far from reaching the strategic goals set by the company.After analysis,the company’s seniors believe that the traditional business model and insufficient profitability are the fundamental reasons.For a long time,the company has not found a scientific and effective solution.This paper uses the literature research method and case analysis method to comprehensively sort out the domestic and foreign business model theories and application models,conduct systematic research on the similar enterprise cases,and it is concluded that the Wei-Zhu six-element model and the Value Constellation Theory are effective tools to solve the current business dilemma of A Smart Fire Protection Company,and can provide theoretical support for the business model reconstruction and profitability enhancement of A Smart Fire Protection Company.This paper aims to solve the current business dilemma of A Smart Fire Protection Company.Through the guidance of the Value Constellation Theory,using the Wei-Zhu six-element model,the business model of Smart Fire Protection Company A is reconstructed and designed.Under the condition of objectively understanding the company profile and the current business model:First of all,the interview method is used to collect the problem clues from the interviewees.After analyzing and putting it in order,the main problems of A Smart Fire Protection Company are found in six aspects:first,the positioning of business model is not accurate;second,the business system is unreasonable;third,the resource capacity is not fully explored and utilized;fourth,the single profit model leads to the lack of profitability;fifth,the sales collections are not timely which affects the cash flow structure;sixth,the deviation of business status and development goals affects corporate value.Secondly,using the Wei-Zhu six-element model,aiming at the six main problems of A Smart Fire Protection Company,according to the six elements of positioning,business system,key resource capability,profit model,cash flow structure and enterprise value,this paper reconstructs the business models of A Smart Fire Protection Company successively in six steps.Finally,in order to ensure the smooth implementation of the business model reconstruction,this paper has developed scientific and effective safeguard measures from four aspects:the staff’s knowledge level,the operation overall planning,the financial security and the stakeholders’ management;after many reviews,demonstrations and adjustments,these safeguard measures are fully matched with the business model reconstruction scheme of A Smart Fire Protection Company,which can ensure its smooth implementation of the business model reconstruction.The effective implementation process of the safeguard measures is the process of A Smart Fire Protection Company’s business model reconstruction to enhance transaction value,reduce transaction costs and transaction risks.According to the logical thinking of putting forward,analyzing and solving problems,this paper reconstructs the business model of A Smart Fire Protection Company,and finally draws four important conclusions:first,the smart fire protection industry in China is a sunrise industry with the huge development space,and A Smart Fire Protection Company has the opportunity to seize the golden track in this industry and get development;Second,the traditional business model of A Smart Fire Protection Company has seriously hindered the development of the company,and the reconstruction of business model is imminent;third,the Wei-Zhu six-element model and the Value Constellation Theory are the most suitable theory and application model for the reconstruction of the business model of A Smart Fire Protection Company;fourth,the safeguard measures for the reconstruction of business model of A Smart Fire Protection Company can guarantee the smooth implementation of the reconstruction scheme.Based on the Wei-Zhu six-element model and the Value Constellation Theory,this paper reconstructs the business model of A Smart Fire Protection Company,which can not only reverse the current unfavorable situation of A Smart Fire Protection Company,but also realize its transformation and upgrading and the strategic goal of enterprise value.Meanwhile,it can also provide a reference template for the reform and innovation of the business model of smart firefighting.