A study on Science Technology Innovation, Industrial Value Chain Re-structure and Customer Service that Impact to Company's Performance --- Case Study on M company

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Since the semi-conductor industry was separated from IDM (Integrated Devicd Manufacturer) to IC design, chip manufacturing, chip assembly and testing, other supplier and also system manufacturing; all of these supply manufacturing had got completely developed at Taiwan. By this industry environment, IC design department at Taiwan got great revenues as the 2nd grade of revenue of the world in market sharing，especially M company was the best one of IC design company at Taiwan, she was the 5th in revenue of the fables IC Design House of the world on 2008, and had big gap in revenue compared with 2nd of Taiwan. Why MTK could have such performance in past 12 years from she was spin off from UMC group ? By this study, we found M company always started later than her competitors but got better performance to win the market sharing, by all of the products CD-ROM, DVD-Rewritable and DVD related chip, even wireless communications product 2G/2.5G cell-phone chip and digital television chip. M company had some important competitive strategy as below: 1. Based on knowledge management and developing new competitive technologies as her strategy, MTK set one things --- to set one of her company targets in supporting customer solving problems from 1997 when M company born. She always set highly target and put much resource in R&D to develop better and cheaper with high tech product for customer. 2. To create a new business model and re-structure the value chain with customer: M company broke the original value chain in cell-phone product, she designed a SOP chip (system on chip IC that combined many complex technologies and soft programs in one IC) that was cheaper and more easy to develop next production in cell-phone by her customer. Cell-phone manufacturing became very easy by M company’s total solution and then got the better benefits both M company and her customers. 3. Customer services and customer value creating: M comoany stop the technology gap between the big international IC Design House and local cell-phone maker, to support local cell-phone maker all of the things they need, including digital camera、video、MP3、radio、PDA、electric book. Customer could save much money by M company’s verified chip, also customer could have M company’s more support in total solution even including cell-phone mother board design, engineer training, tuning the production yield in cell-phone production. M company also introduced new request from India to her customer while M company set her new branch in India. All of these co-development actions with customer, M company had her customer as loyalist partners and got her benefits. By knowledge management as her base capability and highly target self-asking,to develop new products that could be used on most of peoples; to co-work with customer and re-structure business model and create new value chain, M company had created the new business environments and won customer loyalty by total customer services, then M company won her value as we saw.