Research On Industrial Chain Management System Of Modernized TCM

Since the 1990's, as a distinguished industry and predominant field of China, TCM (Traditional Chinese Medicine) industry has been paid more attention by our nation, governments and pharmaceutical enterprises. Especially after China joined WTO, the modernization and internationalization of TCM industry has become an urgent issue with the fast development of science and technology as well as the status quo of our pharmaceutical industry. TCM industry is currently confronting with the transition from TCM to modernized TCM and the transformation from traditional industry to modern industry while undertaking the formidable task of industry upgrading and management strengthening.Regarding to the reality of the development of TCM industry, the defective industrial structure and the undeveloped management style limit the modernization and internationalization of the TCM industry. It is necessary to find an epochal management method to improve the management level of TCM industry. The industrial chain management (ICM) is an item of management innovation, which has risen in developed countries. The whole industrial chain is defined as competitive units in ICM system to promote the upgrading and structural optimization of the industry, by which the enterprise is able to control the product quality and improve service level from the leading part to meet requirements from customers with the lowest cost, highest speed and best quality. The ICM system also enables the enterprise to establish the cohesive organization system or strategic alliance and form mutually beneficial partners based on the inner correlation of the enterprise. Furthermore, the application of ICM will benefit every unit inside the whole enterprise so as to provide more competitive power than that is simply added up by all individuals.According to the theory of ICM, the thesis explored the way of accelerating the pace of the modernization and internationalization of TCM industry via the establishment of ICM system from the perspective of systematic construction. It was illustrated from the following aspects: globally analyzing and summarizing the research status of industrial chain to reveal the key research field and the developing direction; clarifying several relative concepts of TCM industrial chain to demonstrate the principle of TCM evolvement and construct the fundamental structure of ICM in TCM; deeply exploring the management of its subsidiary systems such as value chain, information system, organizational system, logistic system and technology system to establish the conceptual framework. Furthermore, the thesis analyzed the typical TCM enterprise and summarized the excellent experience from the development of TCM industry and ICM in compliance with the requirement of theoretical research. As the key case, the management in different sections of Tasly Group has been amply analyzed correspondingly to realize the harmonization between theoretical research and practice.The significance of the study is to provide the reference to the constitution of national or regional industry policies while promote the upgrading and optimization of integral structure of TCM industry as well as enhance the comprehensive competitiveness of the TCM industrial chain. The thesis also aimed to promote the establishment and perfection of standard system of TCM together with improve the managing mode of TCM agriculture, TCM industry and TCM commerce. In addition, the thesis contributed to the improvement of the industrial structure & organization together with the development of strategic management to provide the reference for making the decision for the industrial development and construction of management system of TCM enterprises.From the whole perspective, the research of the thesis is innovative since there is no systematic study on industrial chain in the field of TCM at home. As an incipient modern TCM high-tech enterprise, Tasly Group has proposed the concept of establishing Modernized TCM industrial chain and achieved the outstanding success in practice; however, it has not yet systematically summarized the experience and advanced the theory. The study of the thesis is innovative in both theory and practice and sets up a number of creative ideas on the basis of abundant research.First of all, the thesis systematically discriminated concepts in chapter II. Especially regarding to the value chain and supply chain, which are relative to the Industrial Chain, the thesis presented concepts of industrial chain and ICM by analyzing similarities and differences of the above three concepts and clarified their definitions. Industrial chain was defined as a multi-unit chain structure relating to some kinds of products or services based on the correlation of inner industries. As for its extension, this definition not only included connections of all participating enterprises but also emphasized industrial linkages among different industries participated by all enterprises. Regarding to the connotation of industrial chain, apart from the unified tendency of production, trade and service, it also expanded to stock supply, information communication, industrial organization, technology innovation, value realization, profit distribution and etc. Therefore, the thesis extended the research of industrial chain to an extensive and deep level. In addition, the summary on the rise and development of industrial chain at home and abroad was relatively creative as well.The thesis exclusively revealed the essence of modernized TCM from a deep and comprehensive level in chapter III, which is unprecedented in domestic and overseas public literatures. It was also the first time to construct the conceptual and structure model of TCM industrial chain while as summarize its characteristics. Furthermore, concerning to the significance of ICM of modernized TCM, the thesis inventively combined the research of TCM industry and establishment of developing strategy according to the reference on concept of Systemic Competitiveness in overseas literature.In chapter IV, the thesis innovatively generalized industrial linkages among various industries and explicitly defined that as the fundamental theory for ICM. It introduced Customer-oriented Economy into TCM industrial research and clearly proposed the concept of customer value to be the motivation of the evolvement and development of TCM industrial chain, which is inventive in domestic as well. The profound analysis on the mechanism of value-oriented force of modernized TCM would lead people to a definite direction on the development of modernized TCM.In chapter V, the author creatively carried out the research in the way of combing the TCM industry, industrial chain of TCM and industrial organizational system to reveal the trait that industrial chain has been merged with the concept of industry organization and corporate organization. The introduction of certain tendencies of organizational management of industrial chain, such as core-orientation, strategic alliance, industry clusters, virtual organization and etc will help modernized TCM enterprises to choose the management mode with the higher maneuverability. Corresponding to the demonstration of chapter VI, the author defined the organizational system as the external connection of the industry chain while regarded the information system as the inner connection in chapter V, by which to give a comprehensive illustration on the inner structure of industrial chain. In addition, the author profoundly analyzed the effect and function of information system to the industrial chain of modernized TCM in chapter VI, therefore to deepen the recognition of modernized TCM industry.In Chapter VII, the author proposed that the logistic management of industrial chain should be one of the sources of competitive advantages and comprehensively illustrated the basic issue of logistic management, the tendency of logistic development of pharmaceuticals, establishment of logistic management of modernized TCM industry and etc. The fundamental framework and developing prospect of the logistic management of modernized TCM industrial chain was also presented in this thesis.As an independent element of industrial chain, technology was systematically analyzed in chapter VIII, which overcame the limitation of considering technology as an auxiliary factor in the research of the value chain as well as the supply chain and exceptionally showed the character of management system of industrial chain. The thesis specified the definition of viewpoint on technology and technological management of industrial chain. According to this, the author set up the conceptual framework of technical management of industrial chain, which enabled to improve the core technology of modernized TCM and move forward the combination of independent scientific research and external technology based on the concept of customer-oriented and quality-cored. All standpoints demonstrated in the thesis ranked at the top in the field of TCM industry.In compliance with the investigation of various subsidiary systems, the demonstrative study of Tasly Group has been illustrated in different sections. Therefore, the thesis was able to extensively cover Tasly Group and summarized some relatively advanced practices in spite of concentrated research in every aspect, which would intensify the theory from the practical experience by Tasly Group. The author demonstrated a few political and practical suggestions from the viewpoint of systematic construction of TCM industrial chain in chapter IX, which providing certain references to the upgrading of industry and the development of enterprises.The thesis cast an extensive research including value system, industry organization, logistic system, information system and technology system, which consequently restricting the depth of the study. Moreover, the quantitative research was inadequate since the thesis mostly addressed the issue of establishing the conceptual framework in its exploratory research. In addition, the discussion on marketing system that should be included in the ICM system in terms of the systematic integration was not mentioned in this thesis. Regarding to some individual point of views such as the generalization on the feature of TCM industry was incomprehensive due to insufficient references. With the respect of demonstrative study, the thesis exclusively analyzed the case study of Tasly Group to deepen the research. Therefore, studies of other enterprises in pharmaceutical industry could not be illustrated in this thesis, which accordingly limited the extent of the research.