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Chen Chunhua: Create Value Through AIRS

May 26-2021   



As companies embark on digitalization, they tend to be perplexed by three issues: what’s the fundamental question – technical, organizational, or business – that digitalization sets out to tackle? How much should digitalization cost? And is digitalization a capacity, a strategy, or an internal management mode? Based on years’ research into such issues, Prof. Chen Chunhua, Dean of the BiMBA Business School, finds that digitalization boils down to a way of value growth.

 

Speaking in a summit co-held by Harvard Business Review (Chinese version), BiMBA and Corporate Wechat, Prof. Chen proposes her AIRS framework for value growth in digitalization. It is a loop that consists of four client-facing links in which value generation can be achieved: Access, Integration, Reconfiguration, and Symbiosis.

 

Access, the first link, aims to connect all staff, stakeholders, partners, target clients and potential clients in the eco-system through a shared digital platform, so as to improve data connectivity and communication efficiency for all. This reflects the fact that in digital age communication efficiency has become the foremost variable of corporate competitiveness. The second link, Integration, focuses on amalgamating and harmonizing the management of an organization, its supply chain and ecosystem partners, as well as its users. Such end-to-end integration generates efficiency, enables the release of value and benefits the customers.

 

Reconfiguration demands the reconstruction of business structure by re-thinking business scenarios. Internally, distant working should be formulated and accordingly management mechanism be adjusted; externally, direct connection with customers should be built by factoring in communication scenarios, so that the organization fosters capacity for real-time online services. The last link, Symbiosis, is realized through the formation of a symbiotic organization made up of an enterprise and its client enterprises and creating value in both physical and digital space.

 

The first two form the first stage that provides digital empowerment, followed by the second stage - digital enabling - through Reconfiguration, while Symbiosis stands for the last stage in which value is concurrently created for all partners in the value network.

 

Prof. Chen underlines the central position of people in all connections and as the ultimate recipient of services. She also points out that digitalization amounts to an endless game that requires the continuous involvement of people and partners in value creation, unlike traditional competitions in the industrial age when companies could hope for fast shaping of competitive landscapes.

Chen Chunhua: Create Value Through AIRS

May 26-2021   



As companies embark on digitalization, they tend to be perplexed by three issues: what’s the fundamental question – technical, organizational, or business – that digitalization sets out to tackle? How much should digitalization cost? And is digitalization a capacity, a strategy, or an internal management mode? Based on years’ research into such issues, Prof. Chen Chunhua, Dean of the BiMBA Business School, finds that digitalization boils down to a way of value growth.

 

Speaking in a summit co-held by Harvard Business Review (Chinese version), BiMBA and Corporate Wechat, Prof. Chen proposes her AIRS framework for value growth in digitalization. It is a loop that consists of four client-facing links in which value generation can be achieved: Access, Integration, Reconfiguration, and Symbiosis.

 

Access, the first link, aims to connect all staff, stakeholders, partners, target clients and potential clients in the eco-system through a shared digital platform, so as to improve data connectivity and communication efficiency for all. This reflects the fact that in digital age communication efficiency has become the foremost variable of corporate competitiveness. The second link, Integration, focuses on amalgamating and harmonizing the management of an organization, its supply chain and ecosystem partners, as well as its users. Such end-to-end integration generates efficiency, enables the release of value and benefits the customers.

 

Reconfiguration demands the reconstruction of business structure by re-thinking business scenarios. Internally, distant working should be formulated and accordingly management mechanism be adjusted; externally, direct connection with customers should be built by factoring in communication scenarios, so that the organization fosters capacity for real-time online services. The last link, Symbiosis, is realized through the formation of a symbiotic organization made up of an enterprise and its client enterprises and creating value in both physical and digital space.

 

The first two form the first stage that provides digital empowerment, followed by the second stage - digital enabling - through Reconfiguration, while Symbiosis stands for the last stage in which value is concurrently created for all partners in the value network.

 

Prof. Chen underlines the central position of people in all connections and as the ultimate recipient of services. She also points out that digitalization amounts to an endless game that requires the continuous involvement of people and partners in value creation, unlike traditional competitions in the industrial age when companies could hope for fast shaping of competitive landscapes.