Modularity-Based Business Model Innovations

As the continuous development of the Internet economy, many domestic and foreign enterprise practitioner and management researchers focus attention on the Business Model.This makes the Business Model become a hot issue and frontier problem in management scholars. On the one hand, As many enterprises get outstanding achievement through business model innovation in the media, aviation, tourism and other industry, enterprise managers take the attention on business model with growing enthusiasm.On the other hand, many scholars have study and made a lot of achievements for the meaning of business model and the innovation mechanism. However, because of the complexity and abstractness of the business model, it is hard to find achievements in theory to explain business model in the existing literature study, which is regarded as "black box" by many people. Therefore, we need to explain and research business model and its innovation in a new Angle of theoretical.At the same time, the modular theory produced in the1960s had got a rapid development in recent decade activities.Modular technology and its application field all thoughts have greatly expanding. It is important to emphasize that modularization theory could make micro enterprises and medium industry together very well in theoretical analysis, which is to achieve a systematic analysis structure and enlightenment. Modular theory offers a new perspective for business model research. We construct business model innovation analysis framework and do the theoretical analysis and case study for business model innovation and evolution in mobile terminal industry with the angle of modular, which is help to grasp the mobile terminal the trend of the development of the enterprise competition more accurately.Based on the theory and practice of business model and modularization, this article construct business model innovation analysis framework and do the theoretical analysis and case study for business model innovation and evolution in mobile terminal industry with the angle of modular.Firstly, this paper sum up the business model and its innovation theory and modularization theory, having evaluated the existing business model innovation theory and summarized modularization theory. This paper summarizes the development situation of the mobile terminal industry. Secondly, This article have summarized the perspective of modular the business model of operation mechanism through the modular analysis of value chain in the mobile terminal industry, and have interpreted the business model innovation evolution mechanism according to the modular approach.Once again, Then, with the case study for the mobile terminal enterprise business model innovation,this article concludes that business model innovation core ideas and general innovation path in the modular perspective.Finally, in order to improve the guiding for enterprises practice, this paper have divided mobile terminal manufacturers into system integrators and module suppliers according to the theory of modular manufacturer, and we have respectively put forward some concrete business model innovation measures and suggestions for them.This paper aims at analyzing modular business operating modes of the mechanism with the Angle of modular, and put forward the path of the business model innovation and its implementation countermeasure. The study has the important significance in the management theory and enterprise practice. This paper’s innovative points mainly embody in the following aspects:Firstly, it is with the modular simplified angle that this paper constructed the business model operation mechanism. This is helpful to deepen our understanding of the business model in the range and depth, which will help to break people’s "black box" concept for business model. Secondly, according to the theory of module operation, the paper put forward the evolution and innovation path of business model, which is easy to understand. This paper have interpreted the business model innovation evolution mechanism according to the modular approach, which include six modular operating way,such as Split, Substitute, Exclude, Augment, Inversion and Porting. It is a new perspective for people to understand the business model evolution and innovation. Finally, according to the theory of modular manufacturer, this paper has divided mobile terminal manufacturers into system integrators and module suppliers, and we have respectively put forward some concrete business model innovation measures and suggestions for enterprise practice.