Page 7 - USI Newsletter No.94

Chairman 董事長專訪
94
Interview NO.94
NO.
Optimizing Limited Resources

to Achieve Maximum Efficiency

Author: Chairman / Jeffrey Chen

ecently, I have been studying an article on the Resource-Based View (RBV) of the firm in Harvard
R
Business Review, titled �Competing on Resources�. It was highly inspiring, and here I would like to
share some of its key concepts with you.

Resource-Based View (RBV) is an economic-based etc. Therefore, building a company's strategy on existing resources, we must remain vigilant and deciding not to pursue every opportunity can prevent
method used to assess a firm's resources. It provides resources that the company cannot control may adjust strategies accordingly. Understanding and resource waste and serve as a prerequisite for success.
a scientific approach for evaluating whether a firm hinder profit capture. leveraging individual's strengths, putting them at
possesses resource advantages that can contribute to suitable positions and utilizing the most of resources In USI's daily operation, we need to start with
long-term development. The Test of Substitutability are keys to business operations. The concept of resource assessment, determining whether a
The market is constantly searching for cheaper particular resource is effective or conducive to our
Having resources of strategic value is the crucial alternatives, and the crux of the matter is whether a "utilizing the most of resources" involves optimizing future development. Then, consider how to make
limited resources to achieve maximum efficiency.
determinant for achieving sustainable business company owns the resource that underpin a Only then can a company maintain invincible in the better business decisions by utilizing that resource.
operations. The article mentions that resources with company's ability to deliver unique and unparalleled fierce market competition. As USI's global presence has reached today's scale, it
strategic value can be assessed through the following products or services. is the time to carefully examine whether our past
five dimensions: For USI, it is crucial to recognize business resources are strategies are still applicable to future development―
The Test of Competitive Superiority finite. Our production capacity, financial resources, "DON'T use yesterday's strategies to fight tomorrow's
The Test of Inimitability Core competitiveness is not self-defined, but rather and teams' time are all limited and valuable. war." Instead, We should contemplate how to
Inimitability is at the core of value creation as it limits defined by the harsh external market. How do you Therefore, effectively allocating resources and
competition from rivals and generates sustainable compare to your competitors? What advantages do maximizing efficiency are the management wisdom enhance resource utilization while making
profits. However, inimitability does not last forever, you have? Is the strategic resources established by the and key skills that USI team must possess. Let's appropriate strategic adjustments. We need to
as competitors will eventually find ways to replicate company superior to those of the competitors? consider a simple scenario. When we choose to leverage our existing resources advantages, mobilize
it. Additionally, for some companies, core competitiveness allocate resources to serve Customer A, we may not our proactive initiative, promptly adjust resource
lies in a combination of resources. Although each allocation and business models, explore new
The Test of Durability individual skill may not be outstanding on its own, have additional resources to serve Customer B or channels for resources to keep the competitive edge.
The more long-lasting a resource is, the more when combined, they form a unique and competitive other potentially more profitable customers. In Only in this way can USI achieve the long-term vision
valuable it becomes. However, the value of resources advantage. reality, Customer B or other customers may bring of sustainable operation in the unpredictable market
depreciates quickly over time. Especially, technological greater profits to USI than Customer A. Another environment.
knowledge in a fast-moving industry is a rapidly In today's rapidly evolving world, where technology scenario is that even though USI currently has 28
depleting asset. Therefore, building long-term is advancing at a rapid pace and products are global production sites, each site has its own capacity Lastly, through today's sharing, I expect that USI
strategic plans relying solely on a single resource constantly being introduced, the value of resources is limitation. Therefore, we need to make trade-offs team could gradually develop the management
advantage carries risks. easily eroded by time and competition. Old resources and propose solutions to customers that may align wisdom of resource perspective. While working with
gradually depreciate, losing their core advantage. In better with our overall strategy and interest. It is dedication, it is important to enhance our overall
The Test of Appropriability such a dynamic environment, it is crucial to maintain important to engage in discussions with customers vision and tackle work challenges strategically and
The value generated by strategic resources does not sharp insights and foster innovative thinking. We rather than blindly satisfying their demands for intelligently. By doing so, we can achieve greater
always flow entirely towards the company. It may need to continuously monitor market evolution and capacity and site. Similar situations arise in multiple efficiency and productivity, accomplishing more with
flow to a host of business participants, including constantly upgrade the value of resource, and actively actual operations of the company. Sometimes, less effort.
customers, distributors, suppliers, employees and
explore new opportunities. When dealing with strategically withdrawing from certain activities or

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