2013 Best Management Practice Nominee

Since 2013, businesses have been facing two main problems. One is employee management problems brought about by rising labor costs, and the other is operating pressure brought about by rising raw material prices. When Chinese companies are still thinking about how to go overseas, multinational companies have already taken emerging markets as their main battlefield; The maturity of the new technology environment represented by networking and 3D is shaking the foundation of traditional industries. Today, whether it is the formulation of corporate strategies, the improvement of production efficiency through internal operation management, and the matching of human, financial and material resources, a broader perspective and even cross-border thinking are required. Under the complex and ever-changing economic and technological environment, China's management practice is stepping out of the paradigm of imitating the West in order to explore its own development path.

1. Industry Chain Extension: Transformation from B2B to BMC

For B2B enterprises, some choose to use their core advantages to occupy the upstream of the industrial chain, while others Choose to extend downward, or even do the whole industry chain. According to the characteristics of the industry and the status quo of technological development, the connotation of the entire industry chain has been given new content.

Representative enterprise: Beijing Autobase Car Wash Equipment Co., Ltd.

Autobass is the world's leading car wash equipment manufacturer and car service provider. Starting from the manufacture of car washing machines, it extends to related fields such as car service and sewage treatment. In order to open up the entire industrial chain, Autobus started with the establishment of a car wash alliance, and participated in the chain operation of car washes in the form of "financial leasing" of car wash machines.

In addition to providing equipment, Autobus is also responsible for providing professional car washing services, technical training and management for employees. After the five-year contract expires, the car wash can continue to "lease" the equipment and Autobus can buy back its shares.

As a result, the cooperation between Car Wash and Autobus has become closer and closer. This is just the first step in the company's business plan. Next, they will build an international comprehensive car service center, and implant ecology such as fast food, coffee, and amusement centers. Sri Lanka takes car washing as an entry point and completes the transformation from B2B to BMC by establishing business platforms such as car washing centers. M's medium refers to the foundation and core business of professional car washing.

Autobus has developed a "cross-border" business platform from the professional field of car washing. Although the transformation is strong, it is logical, and at the same time, it also has a core concept, that is, having customer resources is the key.

2. Be a Service Provider Together

From selling products to selling services, to providing a complete set of solutions, the competition of enterprises has not only Limited to technology, what is more, the win-win and mutual benefit of the entire industry is the foundation of sustainable development.

Representative enterprise: Redsun Energy Saving Technology Co., Ltd.

Relying on micro-groove composite phase change heat dissipation technology, Redsun Energy Saving Technology Co., Ltd. has become a leading supplier of heat sinks in the LED lighting industry.

Compared with end customers such as NVC Lighting and GE, they are more focused on being high-quality suppliers in the upper and middle reaches of the industrial chain and providing customers with overall solutions. Leading the project with partners, alliance members adhere to the principle of mutual benefit and win-win, and jointly serve terminal manufacturers. To ensure the authority and professionalism of the alliance, its members must be suppliers with leading technologies and brand effects in the industry.

Secondly, the teams and concepts of the partners must be able to integrate together, otherwise it will be difficult to implement. Now, Hongsang is one of the LED lighting standard setting units in North China. In addition, the members of the alliance "share" customers, "from point to surface", and also expand their respective market shares. At the same time, by focusing on high-quality customers, it is also conducive to building its own brand.

Relying on technology, establishing an alliance is a way to build a platform on which to integrate and share resources.

3. Reverse innovation

With the economic recession of developed countries, the rapid development of emerging markets, and the continuous improvement of innovative technologies by local enterprises The strategy of “transformation” has become outdated. Therefore, in recent years, more and more multinational companies have started "reverse innovation", that is, localized innovation for emerging markets, and then reverse promotion to other regions and even developed countries.

Representative companies: Siemens, Philips, General Electric

In 2005, Siemens China's innovation strategy was released. This strategy, referred to as SMART, consists of five parts, namely Simple (easy to use) , Maintenance-friendly (easy maintenance), Affordable (appropriate price), Reliable (reliable and durable), Timely-to-market (timely listing). It includes not only the production of products in China, but also the construction of new ecosystems, the localization of R&D and supply chains, and the cooperation with the government and key partners. Taking the power grid microcomputer intelligent protection device as an example, the new products developed by Siemens China Research Institute for the Chinese market are 30% to 40% lower than the previous generation products, and the product development cycle is only 18 months, which is only equivalent to the global development cycle of Siemens. 1/2.

In addition to local research and development, another key point of reverse innovation is whether it can be extended to other regions or even developed countries. "Philips uses "local for global innovation" to express the concept of "reverse innovation"." Philips Global CEO Wan Wan Dun said that the Philips car air purifier developed and produced by the Chinese R&D team according to the needs of the local market has been adopted by international car manufacturers. Cars are designed and sold to the global market. There is also a Philips pasta machine that was also born in the Chinese market, and was subsequently promoted to Europe to be used to make pasta.

General Electronics CEO Jeff Immelt once wrote that the global localization strategy has shaped the organizational structure and operation mode of multinational companies. To carry out reverse innovation, a new organizational structure must be developed. In the end, GE formulated five principles: fully empower where the business grows; develop new products from scratch; build a local team like a new company; establish specific goals and metrics; let the local growth team report directly to senior executives in the company .

Reverse innovation is a strategy, which is followed by the adjustment of the entire organizational structure, decision-making mechanism, and operational process. It will affect the whole body, and the rational and effective allocation of global resources is the future direction.

Flexible welfare

Flexible welfare originated in the United States in the 1980s and is an international advanced welfare management model. However, in China, except for a few foreign companies, few local enterprises have established the system. flexible welfare system.

Representative companies: Coca-Cola, Shanghai Unicom

Coca-Cola adopts the "core + optional welfare" approach to design flexible welfare plans. Flexibility to upgrade benefits according to your needs. For example, basic medical benefits can be optionally upgraded as part of the core benefits in the plan. Coca-Cola has established an online welfare platform where employees can log in to the system for self-service welfare management, which improves management efficiency and employee communication.

As a state-owned enterprise, Shanghai Unicom has explored flexible benefits to attract and retain employees. In terms of the configuration of welfare programs, Shanghai Unicom plans to build a complete employee medical security system to prevent the company from being overburdened by serious illnesses and to become impoverished due to illnesses as much as possible. It also sets up flexible consumption accounts to increase the flexibility of the plan. At the same time, it is also managed through a one-stop online self-service flexible benefit management system.

With the disappearance of demographic dividends, flexible benefits can be regarded as a convenient way of human resource management.