Its high-speed development may not represent the rivers, dangers, but they have exposed their high-speed development, but the problems behind the high-speed development are the common diseases of the grassroots software enterprises at the end of the 1990s. Analysis of L Software companies, help us understand the key points of high-speed development in SMEs, and how to "live" longer.
L Software is a typical grassroots private software company without any background. From the registered capital, there are less than 10 employees, and they are crowded in a hunger house in Zhongguancun Hailong Building. Nowadays, there are more than 100 million assets, and have 7 branches across the country, and the number of employees is 500, and the IBM is the same as the IBM. Just 6 years, the growth is a solution provider for the number of industries, and has undertaken a number of 863 planned topics and the national major high-tech industrialization demonstration project construction. Its high-speed development may not represent the rivers, dangers, but they have exposed their high-speed development, but the problems behind the high-speed development are the common diseases of the grassroots software enterprises at the end of the 1990s. Analysis of L Software companies, help us understand the key points of high-speed development in SMEs, and how to "live" longer.
Rapid growth: the result of product innovation strategy
In the Chinese corporate community, "life" philosophy is first, especially for the software industry such as a refrigeration industry. Software companies in the initial business, there is a series of hidden dangers such as strategic lacking. They usually put almost all energy on the relationship between the construction rules, and get a "relational single" from which to collect the "relationship order" of the integrity, so that the startup is in the beginning of the product innovation strategy, while L Software companies are one of the "minority".
It is undeniable that they want to make their own brands from the beginning of entering this industry. Therefore, in the end of the beginning of entrepreneurship, in the days to smoke, drink, "Pacipi" mixed marsh, they don't give up on the road of research and development because of the fear of human nature, although they belong to purebred Grass roots, there is no background and advantage, but they still trust the value they exist, do not forget the "sharpening" while "cutting firewood".
In 2000, they took a large number of the China Software Association and the Ministry of Remote Sensions in the Ministry of Science and Technology in a single vehicle monitoring system and the three-dimensional geographic information system; in 2001, its embedded geographic information system, vehicle navigation system once again won the International Software Expo and China Software Association Awards, the same year and NOKIA, Ericsson as the global strategic partner, entering the R & D of wireless value-added fields; in 2003, the number of national 863 programs have been promoted and the location service system has been internationally advanced. The level, the same year won the funding of Haidianyuan Innovation Funds and the Science and Technology SME Technology Innovation Fund; 2003-2004, continuously undertakes the national torch plan project and successfully, and the same year is divided into key software companies in national planning layout.
Compared to the high-profile enterprise of Fujian, the wind of mobile phone manufacturing, the profiteering of the telecommunications industry, L software company is more like a small family, in Zhongguancun, a downtown, a downtown. After experiencing the comprehensive depression and standardization of IT, most of the industry enterprises survived by the Latty single suffened, and L software company has more powerful, its product's function exclusive, stability has been recognized by industry and users.
L Software company CEO Zhang Memolifies the company's development history, emphasizing the clear product innovation strategy of L company. He said that the company has established an overall strategy of product development as a core in the initial establishment. To make L companies on the basis of product function exclusive, stability and ease of use, and then manage, market, and sell, The integration of all kinds of resources such as services, capital. We always remember that as a product first must have product strength, otherwise it can only be bouced in the process of channel competition. Even with the excellent performance of individual salesperson, the company's life is temporarily extended, but this personal heroic performance is not enough Enterprises have achieved long-term sustained development and expansion of scale. Board of most small and medium-sized software companies in China are all kinds of "life" as all the driving force of the entrepreneurial phase, so completely neglect product innovation, product function aging, low standardization, not strong, even because of pulls a single The huge business expenses are nowhere to pay, and ultimately can only give up the product development, hungry, and finally die. "High-speed development enterprises, basically all in product innovation, especially in high-tech industries. Abandon product innovation, and lost the statement of the company's long-term development, lost the opportunity to serve the society, the life and death naturally "L software company CEO Zhang said.
Channel VS Brand: Channel is the last word
Like any company that has experienced rapid growth, it is rapidly expanded, the market share has risen rapidly, and the various resources have suddenly become intricate, and the company's organizational architecture is usually overwhelmed, and the scale effect of the formation of funds is formed. The management level of the corporate manager has been difficult to drive a growing business body. At this point, there is a cultural idea, Tao, integrate all resources of the enterprise, so that all corporate employees agree with this cultural value and use this as a way to make money together. And brand cultural construction, as an important part of corporate culture construction, it has become more and more.
Since 2003, L Software refers to the brand cultural construction to the agenda, and the company specializes in stripping some of the employees from the market department to form the brand planning department, specializing in the overall packaging and connotation of the company, and directly CEO is responsible. After more than 1 year of exploration practice, L software has established a self-contained system of CI, refining a complete set of employee cultural guidelines, and at the same time, there is a big advertisement, convene a conference, and establish a better brand image.
But after 1 year, what is the order directly obtained?
"I think, more orders is mainly depends primarily on our product value, so the location and people selling products are very critical. Lost channels, good products can not be sold. Of course, brand It must be, but on the company's resources and integrated resources, channels are more important. Because the sales of industry software, more dependent on terminal sales behaviors that promote and consult, at least Marketing behavior can only be used as a auxiliary means, which can only make the company's profits. In the past year, we have spread more energy in the brand construction, and it turns out that this is wrong. If the channel is lost, it will lose the foundation of the brand. After all, we sell industry software and selling mineral water, it is quite different. It seems that there is a scenery, not necessarily applicable in all industries. "L Software market Director Zhong said.
L Software companies are sensible, in order to see the capacity and resources of domestic software companies, it is not enough to achieve acceleration. Moreover, the brand construction should have a few basic conditions, that is, the product has a unique value, personality, very strong customer loyalty and long-term cooperation, and if it is used as a standard to assess domestic software companies, I am afraid there is no qualification. In fact, it is said that the channels and brands should be caused by each other. The company has passed the integration and efforts of the entrepreneurship period through channels, and then the brand is obtained in the invisible asset in the stable period, and then the channel value is improved because of the invisible attraction of the brand, so they are mutual causal. However, on the current situation of domestic software companies, steady channels are more practical. Market share: beautiful trap
The market share is an important indicator, and it has also become the most important goal pursued by many companies. L Software Company has always used the market share as the ultimate goal of work, and the sales department's annual work summary is delayed to show off the flash point, and the sales staff is also proud of it.
But thinking about it, has a strong market share does not mean the ability of the company's sustainable development, and it does not mean the maximization of corporate value, because it is often consumed to consume huge channel expansion resources at the same time. And excessively pursue market share, may result in the following aspects:
First, the climb of market share may quickly consume the profit and gross profit of the company;
Second, the climbing of market share may bring unprecedented tension and pressure to the organization structure, resulting in difficult management levels to adapt to existing conditions, causing business risks;
Third, the climbing of market share may extend the business scope of the company to a unfamiliar or unpredictable customer base, thereby increasing business difficulty and market risk.
The nearest example is, IBM PC career. IBM PC accounts for about 10% of the entire PC industry prior to sale, so why is it necessary to sell? Because the contribution rate of earnings per share is too low, the profit is too low means loss. Therefore, what is the use of the amount again?
War is full of lint. These sideways and exaggerated style, is the company's urgent need; in addition, capital operation is lacking, weak financial management capacity is another reason for this situation.
Enterprise management: cultivate innovative organizations and separation
It is undeniable that L software companies are like other grassroots companies that have just been born with enterprises and gradually move towards ripe and growing grassroots, there is still a very obvious parental production style in the organization's organizational architecture and management. Its CEO is still acting in one of the original entrepreneurs that is not high in management, and the overall organizational architecture is also a traditional pyramid, but it is because of the existence of this structure, resulting in information transmission is always portrait in the grade structure. communicate with. Therefore, any of the hierarchies in the grade structure includes terminal people, ordinary managers, manager, director, CEO, etc., it is possible to become an obstacle to hinder information exchange. After the development of enterprises to a certain stage, in particular, after a sense of superiority, this kind of human nature, the inferiority of the power to win the power, which makes this information exchange barrier a great possibility. And due to its CEO itself as one of the executive director, it has weakened the capacity and strength of the board of directors. The parent-made style of their own habits made the company's success or failure depends on their one person. Any paralyzed mistake, impulse It may cause the company to re-retreat to 6 years ago or even worse.
During the private exchange of directors and CEOs of L Software, both sides generally talked about the issue of innovative organizational cultivation, and how to change the two rights separation in the key stage of the enterprise has a certain scale need to be changed. problem.
In order to achieve a smooth communication, innovative organizations should be a typical flat structure. In this structure, because of the management level, the management amplitude is wide, so whether the information transfer speed is greatly accelerated, whether it is in the longitudinal or horizontal, which is conducive to making more accurate innovation decisions. The value of the enterprise IT system is maximized, providing a substance technology based on flat organizations, enabling the form of organizational decision-making form, weakens the inertness of traditional pyramid structures, greatly enhances the innovation of the company. Ability and secondary entrepreneurial capacity, let IT systems create value in IT enterprises to truly improve management and business model. For the problem of separation of the two rights, Zhang Moukin as a special location of the executive director and CEO, weakened the board of directors to its supervision, and talked about the lack of in-depth thinking in certain decisions. But he also believes that it is a pseudo problem that is excessively emphasizing the introduction of professional managers to achieve both power separation. I can't just stare at the company CEO, I thought that the CEO was replaced with outsiders, and the company achieved the separation of the two rights, this is to go to school. He said that the company's middle or above management positions are carefully selected, professional managers with expertise and experience. The old people who have an entrepreneurial period have only appeared as shareholders, and there are some other stove.
Finally, Zhang said that he is now participating in the formal training of the MBA class of Harvard University, hoping to have some world advanced management philosophy; as for parents, he will fully enhance the overall operation capacity of enterprise systems, so that Bigger responsibility, while reducing his personal pressure. For yourself, I don't want to be a powerful entrepreneur. If the timing is mature, it will return to the scene, after all, the rise and fall of the company is more important, more important than the personal reputation.
Before leaving, Zhang also mentioned the issue of software business model innovation. At present, the situation in the domestic software outsourcing market and the powerful pressure from India.
"But this year, our focus is still cultivating in various industries in China, providing users with solutions that can effectively improve corporate efficiency, improve service support in the domestic market, maximize customer value."
In 2004, it has passed. Looking at the 46-year-old CEO is still mentally fit, there is a taste that can't be said. Is it atenic? Admire? Is it the same?
As a man, he is conscientious for his proud career forever on the road; as an entrepreneur, he is aware of his shortcomings, and changing the chart, hope to get the recognition and trust of others; One member of the software company, he tried to dialed seeds and prayed for the next generation, and even until his next generation, you can gain a hope that you can make a pride of the Chinese software industry.
(Reprinted from Blog China Single Yunci / Wen)
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