A Study On The Prerequisite Of Enterprise Value Innovation

In recent years, with the increasing speed of technological progress and intensifying global integration, the situation of supply exceeding demand is becoming more and more serious in majority of the industries, industry competition intensifies, while the profit margins of enterprises has continued to become smaller, many enterprises fall into a piece of bloody Red Ocean. However, some companies can open a new window, re-define the industry-wide, jump out of the competition with many competitors, enter a piece of lucrative Blue Ocean that is free from competition. The process of from "Red ocean" into the "blue ocean" is enterprises "value innovation" process. In this sense, value innovation is not just "innovation", but the strategy that covers the whole corporate system. That is to say, at this stage, the important means of enterprises achieve sustained profitability is value innovation.However, a strategy needs prerequisites, the value innovation that is related to some conditions such as the external environment and the internal capacity, as a systematic project is no exception to this. Value innovation as a kinds of dynamic systems engineering, has a great deal of risk and needs for harsh precondition, the blind implementation of value innovation, will possible result in a strategic failure. Therefore value innovation could be implemented, only in both the external conditions are right and the capabilities are fitted.Based on this, firstly the article discusses the theoretical source of value innovation, and on basis of previous studies, advances my understanding of the meaning of value innovation, thinks that value innovation is the fundamental change of existing business models, as well as the enterprise strategy that is by the reconstruction existing market boundaries (by breaking the existing rules and changing the nature of competition) to create significant customer value and high-speed growth. And further by the contrast research between value innovation and tradition strategy, analyzes the unique risks of implementation of value innovation, points out that the value innovation of enterprise needs for strict preconditions.Secondly, based on the understanding about value innovation, after a detailed analysis of the intrinsic strategic system of value innovation, combined with the awareness both the school of capacities and resources and the school of industry organization, thought a key factor for business success of, systematic analyses the necessary precondition of the enterprise implementing value innovation, advances three circles model that the business needs conditions when implementing value innovation.Furthermore, on the basis of three circles model, sums up the evaluation system of prerequisite of value innovation, and learns from the evaluation method of neural network to provide a method of evaluating whether it is suitable that the occasion of enterprise implementing value innovation.Finally, based on the above-mentioned theoretical framework, this paper builds a feasibility analysis model of business value innovation, points out several specific strategies that enterprise faces value innovation in several typical cases, the of strategies for businesses in dealing with before. And further, points out several aspects when business facing value innovation.