Resources limitation in corporation renders the need for open innovation to advance their competence. Open innovation suggests utilization of outside resources can improve internal innovation and the internal IP¡¦s shall extend their usage beyond the boundary of firm to reach maximum benefit. The most remarkable open innovation paradigm in the history was IBM¡¦s release of its PC core software to give impetus to information revolution. Recently, Proctor and Gamble adapts the open innovation model and seek for external ideas which account for more than 50% of innovation of the company. Despite its phenomenal success in several cases, open innovation is not rooted in many industries. This study would investigate on the feasibility of the application of open innovation model to the electrical steel (ES) industry chain.
Electrical steel is one of the most dedicated products in the steel industry. It¡¦s the crucial material in motors and transformers. China Steel holds more than 7% of the market share of ES of the world and influences the local motor markets greatly. Taiwan was once recognized the most important manufacturing base of small motors in the world. Nevertheless, motor industries in Taiwan have suffered huge decline in the past 20 years due to migrating to China whose economy reform provides much more attractive investment environment by lower wages and other operation costs. Until recently, soaring energy prices and tighter environment protection measures recently create growing worldwide need of high efficiency motors and provide new opportunity for the motor industry in Taiwan. Being the sole supplier of high quality ES in Taiwan, how China Steel takes advantage of this opportunity and enhances its competiveness is the main interest of this study.
This study focuses on the industry chain of ES in Taiwan by systematic survey on its market, technology, and man power to understand its strength, weakness, facing threat and opportunity. An open innovation model is proposed and implemented in the ES industry chain by establishing a new platform, introducing new management paradigm and creating new efficacy indices. The model potentially allows continuous technology support to the chain and creates a sustainable business environment. Its feasibility is further discussed as to forming a healthy industry chain.
The fast growing trend of global production volume of ES indicates the ever-increasing demand in the motor industry. The consumption rate of ES in Taiwan however did not appear the same order of growing rate as the rest of the world. This may imply the motor industry in Taiwan still faces tough challenge from China. Advancing and upgrading in design and analytical capability along with the competitive manufacturing bandwidth is the only solution to regain the competiveness. The proposed open innovation model is anticipated to promote the value of the ES industry chain, which in turn will increase China Steel¡¦s domestic market share for high quality ES.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0718109-141528 |
| Date | 18 July 2009 |
| Creators | Tsai, Song-jau |
| Contributors | David Shyu, Der-ming Lieu, Jen-Jsung Huang |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0718109-141528 |
| Rights | not_available, Copyright information available at source archive |
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