Igor: Digital Transformation

Igor was founded in the 1990s. As a global provider of power products and solutions, it has initially established a service network that radiates to major countries and regions around the world, and provides services to world-class customers around the world, such as Huawei, Philips, IKEA, Hitachi, Meidensha, Agilent et al. In December 2017, it was successfully listed on the domestic A-share market.

Xiao Juncheng founded Igor in 1999, insisting on customer demand-oriented, customer satisfaction as the ultimate appeal for independent research and development and innovation, always grasping the development trend of the industry and the main direction of the company's development, so that the company's Economic benefits have been sustained, stable and rapid development. In 2017, it was awarded the "First Outstanding Jiangxi Businessman Returning Hometown Investment" issued by the Jiangxi Provincial People's Government.

Focus on award-winning management practices

Igor launched a digital transformation planning project in 2018 to create "intelligent" competitiveness. The project focuses on "building a leading digital operation and management platform in China", and focuses on strategy, orders, products, and assets to clarify the company's digital transformation ideas and direction, from strategy implementation, digital management, management in place, excellent research and development, excellent operation, Intelligent manufacturing, smart park, ICT foundation and security are eight management directions, and the digital transformation strategic planning is carried out around the four digital elements of organization, process, data and application.

In addition, Igor also planned 5 management programs based on the current situation: supply chain management program, R&D management program, marketing management program, strategic management program, platform and security program , clarified the overall thinking and implementation benefits of Igor's digital transformation management, and clarified the management strategy for Igor's strategic realization and business development.

The project is carried out around the following main lines and has achieved fruitful results:

1. Improvement of per capita efficiency: Through the opening of 5 project groups, a mechanism for improving per capita efficiency management has been established.

2. Operational efficiency improvement: The end-to-end operation from customer demand, market orders to R&D, supply chain, delivery and service has been opened up, ensuring process efficiency, decision-making efficiency, customer service efficiency, etc., optimizing The interface of each link is realized to achieve the best efficiency.

3. Best customer experience: Strengthen customer stickiness and improve customer satisfaction.

4. Maximize asset value: not only consider the investment in software and hardware from the perspective of business needs, but also ensure the maximization of value through advance planning of goals and benefits.

5. Business model grafting: Prepared and supported the grafting of new business models in the future, fully considered and guaranteed the implementation and landing interface of new projects.

Dialogue with award-winning entrepreneurs

CEConline: How is your business doing when your company implements the management practice of "digital transformation"?

Xiao Juncheng: Igor's digital transformation project has been brewing for a long time, mainly because it encountered many specific problems and management improvement needs from customers and internal management. Based on the company's management foundation and operating conditions, we carefully seized the opportunity and carefully organized and implemented the project. The project is divided into two stages: before the company was successfully listed on the Shenzhen SME board at the end of 2017, the main work was pre-project planning and research. In order to invest limited resources and clarify the existing problems; the second stage after that is to start the specific implementation of the organization in 2018. On the basis of sufficient preparation, the company allocates resources reasonably and implements it step by step according to the plan, focusing on ensuring the quality of the project.

CEConline: How does this management practice relate to your company's corporate strategy?

Xiao Juncheng: In the practice of the market, we realize more and more clearly that, as a manufacturing enterprise, continuously improving product strength and delivery ability is the core demand of the market and customers, and also the source of our work. With the advancement of informatization and big data, the requirements for more efficient and perfect results are becoming more and more clear. Based on Igor's self-built internal operation system in the early years, and later, with the development of the enterprise, the introduction of the Oracle Oracle management platform, we fully feel that if we do not build the process of R&D, operation, and intelligent manufacturing around the enterprise's strategy, there will be no order-based process. , products, and assets-centered digital operation platforms cannot support enterprises to continuously meet the increasing demands of the market and customers, and enterprises will have no future.

"CEConline": As a company leader and decision maker, what methods have you taken to promote the implementation of this management practice? What was your main role in this process?

Xiao Juncheng: Igor's corporate governance structure was established relatively early, and the board of directors and the management team performed their respective responsibilities and operated effectively. This is mainly due to the traction of the company's IPO target to the company's standardized operation, and the traction of the needs of major customers to improve the company's management. The company's digital transformation is a large project with a time span of more than 3 years, and it requires a lot of resources. The management is responsible for the practice and implementation of the project. The project is currently in the process of implementation. As the chairman of the company, I mainly promote the preliminary planning and research of the project. According to the current situation of the company, I will give opinions and suggestions to the project implementation, allocate relevant resources, and promote the implementation of the project according to the predetermined plan.

"CEConline": Up to now, what positive impact has this management practice brought to your company's business development, especially in terms of performance, and what achievements have you achieved? What are your customers/partners saying?

Xiao Juncheng: Igor's digital transformation project has completed the analysis of the existing operation status of the management platform through preliminary planning and research, taking customers and partners' complaints and problems as the breakthrough point. With the help of a professional third-party organization, we found the key problems, formed solutions, put forward a specific plan for the digital transformation of the management platform, and completed the planning and design, project budget, organization and implementation and other related work. At this stage, it should be said that the positive impact on the interior is relatively obvious. From the update of cadres' responsibilities and personnel flow, from the adjustment and strengthening of the organizational structure, all have been put in place and have entered the rhythm of work. The project is in the implementation phase and the impact on customers, partners and performance will take time to verify.

"CEConline": What is your company's focus on management optimization and upgrading in the next stage?

Xiao Juncheng: First of all, we must advance the digital transformation project in a solid manner to ensure that every step forward can form an effective positive accumulation. After all, practicing internal skills is the foundation, and the current external environment is also urgent. We need to do this homework. With the advancement of the project, after the company's digital management platform is gradually built, connected and completed, and an efficient work process and operation platform are formed, how to manage and optimize the work efficiency of individuals and teams will become our focus. We hope that through project practice and personal efforts, more young people in the company can make progress and grow up. The development of the company's new digital management platform will also provide young people with more opportunities for practice and management improvement.

"CEConline": As the editor of CEConline, I would like to ask you a question on behalf of our readers, especially the group of business owners, in the face of today's market environment, in formulating future business How to choose the management practice suitable for the actual development situation of the enterprise?

Xiao Juncheng: The current market environment is complex and changeable, and the environment and problems faced by enterprises are mostly similar. When formulating a company's future plan, I personally feel that there are three words that are closely related to the survival and development of the company: First, speed, in the current market competition, demand iteration is getting faster and faster, and there is no basis for information asymmetry, "Kuiyu Eat slow fish", the fight is speed. The second is efficiency, which is the cost orientation. Only with high input and output, less consumption and more accumulation can we live longer. The third is innovation, which is the direction of talents. There must be unknown problems. Only by innovation can they be solved, and talents are needed. Therefore, any management practice that can effectively improve the speed, efficiency and innovation of enterprise operation should be highly focused and promoted.

Reviews from reviewers

Hu Zuohao

Professor of the Department of Marketing, School of Economics and Management, Tsinghua University

In the digital age, "Made in China" to "China" The key to the transformation of "creation" is how to realize "intelligent" manufacturing in China. Guided by the core demands of customers and partners, Eagle Electric implements the digital transformation plan and achieves the expected results around the strategic goal of "building a leading digital operation and management platform in China". This management practice shows that manufacturing enterprises must not only grasp the direction of digital transformation, but also train their internal skills to do a good job of systematic planning and implementation of digital transformation. In the tide of digitalization, only innovation can be one step ahead, and only hard work can be one step ahead.

Xie Zhaohui

Founder of Zhixue Consulting, Founder of Balanced Scorecard

Chinese partner builds "intelligence" to create competitiveness, enhance product strength and Delivery capability is a tool for traditional manufacturing enterprises to upgrade to meet customer needs. Focusing on corporate strategy and core processes, build a digital operation platform for the manufacturing supply chain, and derive "efficiency" from "efficiency". It is worth learning from the transformation practice of traditional manufacturing enterprises.

Ye Xiaosong

India Group-Chairman of Xiamen Hill Enterprise Management Consulting Co., Ltd.

If you don't focus on the company's strategy, build R&D, operation, intelligent manufacturing Without the formation of a digital operation platform centered on orders, products, and assets, it cannot support enterprises to continuously meet the increasing demands of the market and customers, and enterprises have no future. - A sentence that highly summarizes the internal power source of Igor's practice of "digital transformation". Enterprise strategy and transformation should be based on "thinking what customers think and seeing what customers see"; and even "thinking what customers have not thought and seeing what customers have not seen".

Zhang Zhenghua

Founder of Best Consulting Group

Igor implements a comprehensive transformation of digital strategy around organizations, processes, data and applications, and ultimately It has also been fully enhanced and improved in the five dimensions of per capita benefit, operational efficiency, customer experience, asset value and business model.

Zeng Shuangxi

Partner of Kellogg Consulting Group

Igor under the leadership of Xiao Juncheng is a veritable unicorn company. It can become an "invisible champion" with two strategic fulcrums. One is to focus on market segments to carry out long-term professional and deep cultivation, and many competitive products are the champions in their respective segments; From "big fish in a small pond" to "big fish in a big pond". Digital transformation further strengthens these two strategic pivots, improves efficiency and effectiveness, and improves customer satisfaction. It is a classic case of successful digital transformation.

Interpretation of Relevant Classic Theories

Digital transformation is the use of digital technologies (such as big data, cloud computing, artificial intelligence, etc.) to promote the transformation of business models, organizational structures, corporate culture, etc. change measures. Specifically, it is divided into digital production, digital operation and digital decision-making. The importance of data in management decision-making has been mentioned in a very high position. Enterprises conduct quantitative management based on data, find problems, qualitatively and quantitatively analyze problems, and then solve problems and verify the effect.

With the progress of informatization and big data, Igor realized the requirement of perfecting the enterprise management mechanism in the market practice. Through preliminary planning and research, Igor analyzed the existing operation status of the company's management platform by taking the problems that customers and partners complained and responded more frequently, and formed a digital transformation project with the help of a professional third-party organization. specific plan. This program is centered on Igor's strategy, orders, products, and assets, and focuses on eight management directions: strategy implementation, digital management, management in place, excellent research and development, excellent operation, smart manufacturing, smart parks, ICT foundation and security. Organization, process, data and application of four digital elements to carry out digital transformation strategic planning.

Digital transformation will bring disruptive changes to enterprises. For example, in the traditional model, data collection, design, and manufacturing are too slow, and it takes months to plan updates, tests, and releases in advance. even years. More and more businesses are now turning to agile design, manufacture and release, achieving a better balance between speed and quality.

Considering the real-time online feedback, automation, intelligence and other characteristics of digital management, under the premise of customer orientation, in order to establish a real-time strategic mechanism and agile ecology, Igor's R&D center has Data authorization sharing between them, using the same design system, can directly connect with customers in the product development process. A newly adjusted design scheme can be sent to the customer immediately. After the customer's review is completed, it can be quickly confirmed on the Internet. The product can be ordered simultaneously, and the production line can immediately start the production of a new batch of orders.

It is precisely because of the establishment of the internal digital information platform of the enterprise that the speed from design to production to delivery has been greatly accelerated. Igor's partnership with the Hitachi Group uses this model. Due to the qualitative change in response speed brought about by digital transformation, coupled with the leading technical quality of special transformers, Igor has become the only overseas factory of this global top 500 Japanese company.

In addition, digital transformation enables businesses to enhance data insights. Only by understanding the meaning of data can information be transformed into competitiveness. In fact, every business has considerable data on customers, competitors, and internal operations, so it needs the right tools and processes to unearth the true meaning of the data, make fast and informed decisions, foster innovation, and develop forward-looking sexual development plan. Igor's business divisions have established R&D centers, established a regular communication mechanism with customer technical experts, and quickly obtained the latest needs of the industry through long-term cooperation; and demand-oriented, develop new products to match the development trend of the market.

The successful implementation of Igor's digital transformation project has built a first-class digital platform in the industry, and effectively supported the company's internationalization and intelligent manufacturing strategy, forming the company's role in the "smart" manufacturing field. core competitiveness.

Figure/Igor