The Magic Tree


The Fundamentals of the Innovative Organization

CPRAM employs the “Magic Tree” model to clearly and promptly communicate CPRAM’s approach to creating innovations, both internally and externally. CPRAM is a tree with different divisions equal to different branches. Each leaf is an employee and this tree produces fruits, which symbolize innovations.

There are seven types of fruits or innovations at CPRAM.

  • Business Model Innovation : how the business is run in order to succeed. For example, the project at Panyapiwat Technological College where students do not have to pay tuition fees and will also receive salaries while on practical training
  • Technology Innovation : developing new technologies that can be used widely such as developing RFID for keeping track of assets
  • Organization Innovation : structural reorganization for increased efficiency. For example, having R&D department report to Marketing team instead of Production team
  • Process Innovation : improving and changing process for higher efficiency. For example, automatically producing dimsum-on-stick without having to use workers’ hands, automatically producing food packaging, and the water recycling project for a sustainable environment
  • Product Innovation : improving products to exceed customers’ expectations. For example, grilled pork and sticky rice burger, steamed bun in venting pouch
  • Service Innovation : improving service. For example, automatic food vending machine
  • Management Innovation : a move towards a change in daily activities carried out by different departments in the company such as financial innovation, marketing innovation, human resource innovation, and supply chain innovation. An example for the supply chain innovation is the holy basil management.

This tree can grow to be strong and fruitful by the nutrients it receives, either those be fertilizers or water coming through the roots. The nutrients absorbed through the roots are

Intangible resources which cannot be seen or touched. These can be divided into four parts:

  • Relational Capital
  • Structural Capital
  • Human Capital
  • Information Capital

The strong trunk equals tangible resources that can be seen such as land, buildings, machine, money and facilities. The seven types of innovation must create economic, social and environmental values to all stakeholders involved. With employee in the organization understanding the “what” and “how” in innovation,

“innovation culture” can be established comprising of

  • Compelling Vision
  • Inspirational Leader
  • Effective Communication
  • Empowering Climate
  • People Development and Learning
  • Goal Oriented
  • Customer admired
  • Stakeholder Engagement

Every CPRAM employee appreciates the vitality of continuous improvement of P-D-C-A in achieving Kaizen in the organization. However, together with the unique innovation culture of the company, many improvements arising from creative ideas can be called “innovations”.