Information Pathway Innovative Operating System Research

The IT distribution industry is distinguished from other distribution industries by its short product life cycle, rapid and significant price reduction, and the demand for after-sales services. The operation system of this industry covers inventory management, channel management, logistics and reverse logistics, repairs, credit limit control, and others. Therefore, the operation system in IT distribution industry features technology-intensive management. The development of the IT distribution industry in China mirrors the development of the IT industry in China, alongside the rise and fall of the information industry. The continued development of the market enables people to understand better that the user is the only master in the market. Whosoever can satisfy the maximum needs of the customers and can offer products to the customers at the lowest price and in the most convenient way can win customers. The entire industrial structure of China started to change in order to cope with the change in this mindset, and has entered into a concurrence of multi-mode coexistence with cooperation and competition in diversity. Currently, the IT distribution industry structure in China has already gone into a manufacture driving model, which is called the M model, and the retailer driving model that can effectively satisfy the overall needs of the users, which is called the R model. The distributors, who previously positioned at joint core node in the supply chain in the IT distribution industry of China, are being compressed or marginalized under the pressure from the upper and the lower stream. As such, the distributors of the IT distribution industry in China are compelled to transform or reengineer.2008 was a very special year characterized by ice storms, earthquakes, the Olympic Games, the global economic crisis, and economic recession. This was a year of turbulence. The risk of change was high and factors of uncertainty numerous. As such, the transformation and reengineering in the IT distribution enterprises of China confronted higher risks and challenges. Under such a difficult situation, the IT distribution enterprises of China could choose competition or monopoly, as well as cooperation. Therefore, this study is an attempt to propose a new mindset. In applying the competitive strategy of Michael Porter to strengthen the capacity in business operation or the blue ocean strategy in creating customer value, enterprises may also consider to merge with the traditional Chinese cultural norms of " being nice to people" and "making friends instead of enemies" in their strategic mindsets. This is just like the 9 sayings of strategy, the "competition theory", "the interdependence theory", and the "ruling theory" Under competition or threat, enterprises can use the cooperation network to deal with competitors, use the interdependence strategy to converge the strength of the members of the network for joint effort to cope with the pressure. In addition, enterprises can also adopt the strategy of the ruling theory in gaining a good position in the cooperation network for the maximization of value in the industry.Further to the achievement of corporate goals, market trends and customer needs, the implementation of a strategy also entails full control of the situation with systematic methods for the understanding and analysis of the situation with the ultimate objective of designing a cautious, verifiable, and workable innovative operation system. Therefore, further to the proposition of the alliance theory as the foundation, this study also attempts to present a set of methods and tools for assisting enterprises to use a relatively scientific framework and tools to map out strategy and action plan frameworks and cautious methods for verification and design that could be tested by the challenge of the operation system:to apply the competitive advantage theory of Porter in industrial chain and tools to analyze the IT distribution industry of China, the blue ocean strategy as tools for reconsider the efficiency of the buyers. The experience of the success of Taiwan in the IT distribution strategy is also adopted. The tools of the blue ocean strategy are used for map out the strategy and action plan frameworks. Finally, the service engineering is used to verify and design the innovative operation system.A small-middle scale IT distributor in China is used as the case in this study. Based on the operation environment of this company in 2006 and the resources available to this company in mapping out the strategy, action plan framework, and construct an innovative operation system. Further to the strategic formulation, this study also provides a blue print of the tools being used. Evidence will also be provided after fitting relevant information into the innovative operation system proposed in this study on condition that the secretive information of a company is not being jeopardized. This information showed that a new innovative operation system can help to significantly reduce the cost of operation in a situation where gross profits fell substantially. This innovative operation system also contributed significantly to the allowance for idle inventory and doubtful accounts. The result is the creation of thicker profit portfolio without the input of resources. The IT distribution strategy could follow the research framework, methods, and tools of this study to design a viable innovative operation system meeting their specific needs in the use of resources. Academically, this is in addition a case study of the innovation network featuring the special humanity of Chinese culture, and also kicks off service design in the study of the logistics industry in China.