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Tianan: The IoV Business Model in China

內容大綱
In May 2023, Lei Yang, general manager of Jiangsu Tianan Smart Science and Technology Co. Ltd. (Tianan), based in Wuxi, Jiangsu Province, China, was deciding how to improve his company’s profitability. In its early days, Tianan had sold in-vehicle infotainment devices to automobile companies, and in 2014, it started installing in-vehicle software systems and driver terminals. But from 2010 to 2017, the company lost money. So when the Chinese government announced in 2018 its plan to create internet of vehicle (IoV) pilot zones throughout China, Yang recognized this as an opportunity to transform his company and get rid of its losses. He restructured Tianan’s team, integrated its hardware and software suppliers, took advantage of the government’s help, and turned Tianan into an IoV system service provider. Tianan was profitable in 2020, 2021, and 2022—but Yang was not yet satisfied. Despite the turnaround, the company’s revenue still came primarily from the government, its project delivery capacity was too low to increase sales volume, and its limited bargaining power led to high purchase costs from suppliers. Now, in 2023, what could Yang do to improve his company’s profitability?
學習目標
This case is intended for graduate-level courses in operations management and strategy management and can help students master the business model. The case is expected to help familiarize students with the development of IoV in China and understand its business model. After working through the case and assignment questions, students will be able to do the following:<br><br><ul><li>Define the value proposition of the business model of IoV.</li><li>Identify the key resources of the business model of IoV.</li><li>Explain the key process of the business model of IoV.</li><li>Explain the profit formula of the business model of IoV.</li></ul>
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