Yonyou (formerly known as “UFIDA”), the largest Chinese management software provider, transformed its business model based on value chain into a platform provider. The case traces the success route of Yonyou and provides the key reasons for this transformation and describes various market forces, and how Yonyou caused this disruption. However, Yonyou became an Internet-based platform company in 2013, when it introduced a new strategy, but it also confronted various issues after its transformation. The key issues included: exploiting its existing strengths to facilitate the new business models; balancing its current business along with transforming business models in a dynamic industry; recruiting professional workforce while also considering the cultural dilution.
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