The Study of Innovation Management Model: Trust, Mutual Assist, Thanksgiving - An Example of a Healthy Chain Ret

1. The Study of Innovation Management Model: Trust, Mutual Assist, Thanksgiving- An Example of a Healthy Chain Retail Stores Student: Li-Siang Lin Advisor: Jing-Er Chiu, Ph.D.

2. Contents • Abstract • Introduction • References • Research method • Expected results

3. Abstract(1/3) • Consumers gradually accept organic crops, and this causes the booming of chain retail health food stores. • The concept of "trust" in the supply chain of suppliers or partners is the object of study. • The impact of core values - "trust", "mutual assistance" and "thanksgiving" on innovation management model and the supply chain performance.

4. Abstract(2/3) • Identify the key performance indicators of the supply chain through literature review and expert questionnaires and compare with the performance of CPFR. • Finally, analyze the results of this study, and find their innovation management model for this health retail chain store.

5. Abstract(3/3) • Part of the expected results, make use of a healthy retail chain stores based on "trust" the dimensions of the four major competitive advantage: speed, quality, cost and flexibility and find out the key of dimensions, to strengthen and improve the supply chain processes. • Make some conclusions to the healthy retail chain stores as a practical reference.

6. Introduction • Research Background and Motivation • Research purposes • Research framework and processes • Limitations of the research

7. Research Background and Motivation(1/4) Organic Mechanistic

8. Research Background and Motivation(2/4) • Mechanistic organization: Fewer span of control, vertical communication, decision-making slowed, employees lack of the autonomy, flexibility weak, higher management costs. • Organic organization: the group is a kind of flat that include cross-functional, cross-level and cross-department, reduce level, enhance employees autonomy, no excessive standardization work or regulations, the organization has a more flexible, comprehensive communication network.

9. Research Background and Motivation(3/4) • The object of this study is a healthy supply chain stores, that branch in Taiwan has already reach as high as eighty-eight, the overall business organizations through “Trust" and " Mutually Assist " and “Thanksgiving" for the core values​​, and establish a system of trust between consumers and producers.

10. Research Background and Motivation(4/4) • CPFR:A collaborative process whereby supply chain trading partners can jointly plan key supply chain acidities from production and delivery of raw materials to production and delivery of final products to end customers. Collaboration encompasses business planning, sales forecasting, and all operations required to replenish raw materials and finished goods.

11. Research purposes(1/2) • Analysis of the concept of "trust " for a healthy retail chain in the supply chain between suppliers or partners. • The impact of core values - "trust", "mutually assist" and "thanksgiving" on innovation management model and the supply chain performance.

12. Research purposes(2/2) • Compared the performance of CPFR between the object and suppliers. • The literature review and expert questionnaire to identify the key performance indicators of the supply chain, with CPFR there the similarities and differences, and define innovation management model belonging to the shop.

13. Identify research problems • Search for relevant research literature Analyze the trust of supplier and find the difference with CPFR • Definition of innovation management model Results and future research Research framework and processes • Ch1: Introduction. • Ch2: References. • Ch3: Research method. • Ch4: Expected result.

14. Limitations of the research • Across a wide range of healthy organic retail chain. • For familiar with the study of the organizational structure, the path of the supply chain and operational procedures. • The research will be focus on the healthy retail chain Douliu stores, the Taiwan branch has been up to eighty-eight stores since 1998 as the research object.

15. References • Organic agriculture • Collaborative Planning Forecasting and Replenishment • The concept of trust • Innovation management model

16. Organic agriculture(1/2) • In 1924Dr. Rudolf Steiner took the lead advocate of organic crops cultivation method. Until the 1970s, the oil and energy crisis, organic agriculture was gradually by the national attention to force governments to re-examine the agricultural policies and norms.

17. Organic agriculture(2/2) • The definition of organic agriculture from Council of Agriculture for: Organic agriculture is to comply with the principle of circulating sustainable use of natural resources, does not allow the use of synthetic chemicals, the emphasis on the conservation of soil and water resources and the ecological balance of the management system, and to achieve the goal of agricultural production of natural safety of agricultural products.

18. Collaborative Planning Forecasting and Replenishment • CPFR: Introduction • CPFR: Guiding principles • CPFR: Mission and step • CPFR: Model and process

19. CPFR: Introduction • Use of Internet technology, the public share downstream end of the supply chain inventory and sales information, under the guidance of this group, retailers and manufacturers within the supply chain collaborative planning, forecasting and replenishment, and also jointly bear the consequences and responsibility. • VICS first pronounce CPFR in 1998. • CPFRGuide lines(2004):The process flow between the two corporate partners to the formal specification. Enterprises of both sides must agree to collaborative planning and forecasting, and monitoring the entire process until the success of the operation between replenishment, and then verify the occurrence of the abnormal condition, and finally take feasible solution to solve.

20. CPFR: Guiding principles Source: Chang, P. L. et al.(2006),Production management .

21. CPFR: Mission and step • Strategy & Planning: Establish the ground rules for the collaborative relationship.Determine product mix and placement, and develop event plans for the period. • Demand & SupplyManagement: Project consumer (point-of-sale) demand, as well as order and shipment requirements over the planning horizon. • Execution:Place orders, prepare and deliver shipments, receive and stock productson retail shelves, record sales transactions and make payments. • Analysis:Monitor planning and execution activities for exception conditions.Aggregate results, and calculate key performance metrics. Share insights and adjustplans for continuously improved results.

22. CPFR: Model and process Source: VICS website, http://www.vics.org/committees/cpfr/#f1

23. The concept of trust(1/7) • Researchers have long maintained that trust is essential forunderstanding generalized behavior and economic exchanges(Benassi, 1999). • Trust is taken for granted in business transactionsand is more conspicuous in its absence than in its presence(Baier, 2004). • On a national basis, trust has been shown to be an integralcomponent of a tight syndrome of social, political and economicconditions(Delhey, 2002).

24. The concept of trust(2/7) • Trust is also applied as a frameworkfor considering the dynamics of inter-group and intra-group interactionswithin and between social contacts at all levels, includingfamily, friends, community, and nations (Hardin, 2002). • The differences between these definitions illustrate that trustcan be viewed on many levels (i.e., global, national, regional, organizational,community-based, interest-based, and interpersonal)with varying degrees in between. It remains a difficult conceptto describe due to its dynamic, evolving and multi-faceted nature(Lewicki& Bunker, 1996).

25. The concept of trust(3/7)

26. The concept of trust(4/7)

27. The concept of trust(5/7)

28. The concept of trust(6/7)

29. The concept of trust(7/7) Source: D. H．McKnight, L．L. Cummings and N．L. Chervany (1998)

30. Innovation management model(1/3) • The impact of innovativeness on firm performance and economic growth has been of interest to economists for decades (e.g., Mansfield et al., 1971). • Innovativenessisdefinedastheadoptionofanideaorbehaviour—whetherpertaining toadevice,system,process,policy,programme,productorservice—that isnewtotheadoptingorganisation(Zaltmanet al.,1973). • One person or group’s propensity to adopt a new idea or technology early, relative to others, innovativeness. (RogersandShoemaker, 1971)

31. Innovation management model(2/3) • Innovation refers to any incremental or radical change embodied in product and process and includes change in value activities such as service and administration (Sher and Yang, 2005). • Innovativeness has been consistently linked to higher firm performance (Calantoneetal.,2002; Deshpande andFarley,2004)

32. Innovation management model(3/3) Source: http://amaanali.wordpress.com/tag/organic-structure/

33. Research Methods • Research Process • The frame of questionnaire • Expert questionnaire process

34. Research Process(Conceptual framework)

35. The frame of Questionnaire Source : M. A. Youndt, S. A. Snell, J. W. Dean, Jr., D. P. Lepak(1996)

36. Literature collection • Draft questionnaire production • The opinions of experts and scholars • Questionnaire correction • Sent out questionnaires Expert questionnaire process

37. Expected results • "Trust" structure of the object and its suppliers, as an important basis of the core values​​. • Find the impact level of the core values - "trust", "mutually assist" and "thanksgiving" on innovation management model and the supply chain performance, and gives the results as a reference to this store. • Compared the performance of CPFR between the object and suppliers. • Define innovation management model belonging to the shop, and gives the results as a reference to this store.

38. Thanks for your listening