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Business model innovation through collaborative product development: a case study of design services in Taiwan

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2 Author(s)
Chih-Hsing Chu ; Department of Industrial Engineering and Engineering Management, National Tsing Hua University, Taiwan, China ; Cheng Han-Chung

Due to the ever-increasing global competition in the market, most Taiwan companies have attempted to transform their business from OEM to ODM, and thus continue to create niche values. "One-stop Shopping" design services have emerged as an innovative business model during this trend, particularly in high-tech industries. In this model, a design company collaborates with various manufacturing companies integrates different core competences, leverages individual resources, and thus offers complete product development services as a virtual enterprise. International customers can outsource NPD as a whole to the service team through a leading design company. This paper describes such a business innovation based collaborations of SME's. Important findings regarding the innovation are generalized from a case study, including value creations, potential risks, and enabling methods. Finally, we propose a protection buffer theory that facilitates the execution of this business model.

Published in:

2007 IEEE International Conference on Industrial Engineering and Engineering Management

Date of Conference:

2-4 Dec. 2007