The Application And Research Of The Amoeba Business Model In Electrical Enterprises

Since the 21th century,the competition in low-voltage electric market is getting fiercer and fiercer.Enterprises in low-voltage electric industry usually win orders with their low cost strategy,which drives the low-voltage electric enterprises to offer lower and lower price for bidding,and the profit that the enterprises obtain is getting smaller and smaller.The traditional enterprises in low-voltage electric industry are facing with bigger pressure for living.Supported by a Shanghai consulting&management company,Firm D implemented Amoeba operating model for its management.According to the requirement of Amoeba management model,every single department of Firm D is an independent work cell of Amoeba operation,each department goes with independent accounting and clearing.Each department could gain profit as much as possible by maximizing its income but minimizing its expense.By introducing market pricing mechanism to Firm D,sales price of products is completely determined by the market,this requires every department must reduce its operating cost as much as possible.R&D must follow market-oriented direction,no matter whether it's related to new product technology or it's associated with product cost.It's been a few years since Ameoba operating model was implemented in Firm D,the operating efficiency of each department is improved and its operating cost is down,product quality is improved too,and lead time is shortened as well.However,new problems appear since Ameoba model is used.For example:the company pays too much attention to the operating index but ignores the factors for driving continuous improvement,and the company is unable to keep young talents and is facing talent shortage on some key positions.All in all,Firm D's operation is improved a lot since Ameoba model was implemented.While Firm D needs to pay attention to the new problems.