The Amoeba business model is a business model created by Kazuo Inamori, the Japanese business saint. Inamori founded two Fortune 500 companies, Kyocera and Daini Telecom (KDDI). It is the Amoeba business model that has allowed these two companies to thrive and prosper. Kyocera has created a legendary performance - it has never made a loss in more than 50 years, and the more economic crises there are, the greater the development. On February 1, 2010, he became the chairman of the bankrupt and reorganized Japan Airlines, and served for a total of 424 days until the end of March 2011. Kazuo Inamori served as the president of the former Fortune 500 Japan Airlines (JAL) that was bankrupted and reorganized. He is trying to introduce the Amoeba business model to Japan Airlines. In fact, the Amoeba business model and Kyocera accounting are known as the two pillars of Inamori's business philosophy.

The essence of the Amoeba business model

As the saying goes, there is no construction without destruction. "Destroying" the organization is the first step to promote Amoeba. First, the traditional pyramid organization is transformed into an "inverted triangle" organization, that is, all levels in the organization serve the final product and users. The "inverted triangle" organization changes the role cognition of the bureaucracy. The work of "leadership" is no longer commanding and directing, but serving and guiding. The "top" that contacts the user is what ultimately generates value.

The second step of the transformation to A-MEBA is aimed at "networking" and "decentralization", and two major adjustments have been made to the organizational structure: building a basic business platform; transforming business departments into "small and micro companies". The original functional departments such as procurement, R&D, manufacturing, and logistics within the enterprise have all been transformed into business platforms. All business units originally affiliated with various departments have been cancelled, and employees have formed "small and micro companies" with different capabilities. The roles of employees have also been transformed from business unit managers, department managers, etc. to platform owners, small and micro owners, and makers. The makers here emphasize entrepreneurial and innovative activities, and are actually integrated with small and micro owners. The platform owner is responsible for the operation of the business platform, and its main task is to attract more high-quality resources to enter the platform and serve small and micro enterprises. Small and micro enterprises directly connect with users to achieve value creation by discovering needs, developing products and services.

Ameba business software implementation

How to use software to implement Amoeba, Inamori Kazuo did not explain, and there are few precedents at home and abroad, how to do it? This is a question I have been thinking about. Based on my dual understanding of software and mold, tooling, and non-standard industries, I proposed to my R&D team the guiding ideology for developing Amoeba software, namely: "Organize flexible units and perform real-time independent accounting."

After nearly a year of research and development, the first A-MEBA business management software in the mold industry was born, which provides IT technical support for the localization of A-MEBA applications. At the same time, we seamlessly embed the A-MEBA management software into the Fangtian mold ERP management system, so that the A-MEBA business management can be quickly implemented without the need for the company to reorganize and implement the business.

The mold company is organized into small "Amoeba" groups (project teams, manufacturing centers, etc.). Each small group is like a small and medium-sized enterprise, and each is an independent BU (business unit). The company's assessment indicators are directly implemented on large and small unit organizations.

The system supports the smallest granularity of Amoeba units (Cell-SBU quantitative decentralization), and enterprises can define accounting organizations with flexible unit characteristics in Fangtian's "Design Flexible Unit" module according to their own circumstances.

To realize A-MEBA business management in software, a strong financial management system is necessary. This is not difficult for us because we have planned the financial module at the beginning of the system architecture. However, we faced many challenges in the implementation process. We found that the original financial system was designed on the basis of financial accounting and management accounting, and it was more of a post-event financial accounting. A-MEBA software must be developed under the guidance of business accounting to truly help enterprises solve business problems.

Therefore, we made major adjustments to the financial system to cope with this change, realize real-time independent accounting, promptly discover unreasonable phenomena in the company's production and operation revenue and related expenses, and strive to "maximize profits and minimize costs."

The essence of business operations can be seen through the numbers in the Amoeba organization. Every employee of the company can participate in the business operations, clearly see their own contributions, and enhance their sense of belonging and responsibility.

Where does the most important assessment target come from? The system is directly linked to the gross profit index in the Fangtian Mould ERP quotation system, which is calculated entirely according to market prices. Therefore, in order to survive, each "Amoeba" must try to reduce the cost of products or services.

The biggest benefit of real-time accounting or unit time accounting is to set short-term goals and implement and complete them. It builds employees' subconsciousness to complete their goals no matter what. All problems can be improved and answered on site.