The importance of the industrial economy for a country is self-evident. In the list of top 500 Chinese enterprises over the years, almost all manufacturing companies accounted for more than 50% of the total. However, in recent years, the business environment of industrial companies has been deteriorating. In particular, the high cost of industrial companies, and the high cost of R&D and manufacturing itself, was originally thought to be the “going out†opportunity in the golden era. , concealed on a layer of haze.
A few days ago, at the 2011 China Manufacturing Industry Global Operations Summit, Professor Zhou Lin, Dean of the Antai College of Economics and Management at Shanghai Jiaotong University said in an exclusive interview with this reporter that at present, China's manufacturing industry can be described as both opportunities and challenges. “We have industrious and hard-working front-line workers. We have a good time to coincide with being able to 'come in from behind'. However, to seize this opportunity, we must also be aware of the company’s awakening consciousness and the sweat it has to pay for it.†In Zhou Lin’s view, Compared with foreign advanced companies, Chinese manufacturing companies have gaps in their R&D capabilities. To reduce costs and pursue true efficiency, they can make breakthroughs in logistics. In addition, Zhou Lin also believes that the issue of talent is the top priority for the development of enterprises.
“Manufacturing enterprises in China's manufacturing industry must take the 'globalization' line and must be talented. However, there are some shortcomings in the traditional education system that make innovative talents extremely scarce. As a business school that trains future business managers and leaders, it also serves as a domestic First-rate education institutions, we have the responsibility to stay at the forefront, for this continuous efforts, first 'innovation' up." Zhou Lin said.
Innovation should be firm Although there are no authoritative statistics available, it is predicted that in 2010 China's construction machinery industry's total revenue may reach 400 billion yuan. In terms of turnover, two major companies in China have entered the top ten of 2009 World Engineering Machinery Corporation. However, behind the outbreak of the traditional manufacturing market, a series of difficulties still restricts the speed and space for the development of enterprises. The most important issue is the issue of innovation.
According to the data from the China Construction Machinery Industry Association, in 2009, XCMG and Zoomlion ranked ninth in the “Top 10 Machinery Companies with the largest turnover in the world†list with revenues of US$3.5 billion and US$3 billion, respectively. And tenth place. However, the top three US Caterpillar, Komatsu (Japan), and Hitachi Construction Machinery (Japan) sales were $18.1 billion, $13.7 billion, and $6 billion respectively—that is, the Caterpillars’ Global sales accounted for 39% of China's current sales. The gap between the sales volume of Chinese companies and the top few is still not small.
“There are still opportunities for China’s industry to produce world-class large-scale enterprises, but it still faces many challenges. For example, the management mode and technology of enterprises need innovation.†Zhou Lin admits to this reporter that “in addition to strategies and ideas, we must have In addition to innovation, innovation is also required in terms of development and new product production."
Zhou Lin believes that the level of research and development of China's manufacturing companies, especially in "precision" technology, is still not far from foreign countries. The first is the core components and core technologies. These have always been in the hands of individual overseas companies. This has always been a problem that cannot be ignored by domestic corporate executives. “For example, Baosteel Group, although it has excellent capabilities in steelmaking and steelmaking, has visited After the factory, it is not difficult to find that their boilers and other steelmaking equipment are all dependent on imports."
In fact, most hydraulic components and transmission systems in China's machinery industry are imported from abroad. In sharp contrast to this, while the rapid expansion of production capacity of domestic companies, overseas parts and components companies often delay the supply cycle and supply shortages. As for how to catch up with this impossible R & D technology, Zhou Lin suggested: "If you want to achieve the best results in research and development, you must participate in large-scale research projects, stand in a higher perspective to see the market, so as to master the world's most advanced Technology."
The issue of talent is the key There are people in the industry who classify the development of Chinese manufacturing companies into three stages: The first stage is the introduction of technology, digestion and absorption, and the production of products; the second stage is the consumption of a large number of absorption and expansion of production. , Lower costs, make the Chinese people use this kind of product; The third stage is that China's products go to the world market.
More than a decade ago, the Chinese media was concerned about how internationalized companies came to China. Today, we see not only the trend of Chinese companies going global, but also the fact that Chinese companies are “moving†overseas. However, with the increasing aging of the population and the trend of high-tech manufacturing in the future, not only China but also the U.S. manufacturing industry is facing a very critical issue - the shortage of talent.
For China's talent problem, Dr. Ran Ran, Chief Strategy Consultant, Huihui.com believes that “from the point of view of economic supply and demand, China’s talent supply can be imagined as a very 'flat' triangle. This height represents the quality of talent and The level of globalization. However, the demand for foreign companies in China is a relatively 'high rise' triangle, which means that the relatively low-end labor may be oversupply, while the supply in the high-end segment is in short supply.
In this regard, Dean Zhou Lin agrees. He believes that just as the Chinese manufacturing industry urgently needs innovative capabilities and technologies, the reason why Chinese talent is facing bottlenecks is also directly related to the fact that the traditional system has not, to a certain degree, demonstrated the creativity of students.
"The education system with the goal of 'taking exams' has made most graduates focus on examinations only. Endorsing and doing problems has become their main task, which has greatly reduced creativity." Zhou Lin believes that this is why China It is difficult to create an entrepreneur like Steven Jobs.
However, Zhou Lin said that in fact many domestic institutions of higher learning have realized the above problems. Especially for business schools aiming to cultivate the future leaders of Chinese companies, more attention should be paid to the cultivation and integration of creativity, innovation consciousness and practice. “Antai has started to encourage students to innovate and even be entrepreneurial in the setting of the course. We hope that through the study at Antai, the students will not only gain knowledge of management theory, but also learn more in the simulation practice. And use these methods." Zhou Lin said.
Regarding how China's manufacturing enterprises are going global, how to achieve the strategic transformation of local talents and overseas talents, Zhou Lin also expressed his conviction. In the process of globalization, different values, different principles and different methods of management and leadership, especially for the East and the Western world, are all different.
“A good economic manager in Western society may not be able to adapt to the East. Such a problem will be encountered when foreign companies enter the Chinese market. The key is that Chinese companies should realize that they do as the Romans do and understand that different markets exist. Different differences, and to do a full amount of ideological and strategic preparation for this." Zhou Lin pointed out.
The era of "low-cost strategy" has passed the status of China's "world factory", and a large part depends on low costs. In the traditional sense, the cost advantage of China's manufacturing industry is mainly composed of three parts: the first part is a huge number of cheap labor; the second part is that the reform and opening up drastically reduced the institutional cost of the Chinese economy; The part is that human capital has grown rapidly, which is conducive to widespread dissemination of ideas, knowledge, and information on production activities. The most prominent is that large-scale manufacturing of organizational knowledge has taken place in China. This kind of knowledge is an important source of China's cost advantage. However, with the constant changes in the internal and external economic environment, these advantages have gradually shown different changes.
Zhou Lin believes that, on the whole, there are three aspects that reflect the changes in low-cost advantages. “The first is the change in the labor market. In some places, there has been a so-called labor shortage, which is actually a change in the supply and demand situation of the labor force at the local level and stage. These changes are of positive significance to improving the treatment of Chinese workers, especially migrant workers. However, from the perspective of competition, the increase in labor costs must have the ability to digest; if not, the competitiveness will be weakened; the second is the shortage of energy, which is concentrated in the supply of oil, coal, and electricity; the third is the land, It is also a quantitative regulation. Land prices and rents do not fully reflect shortages. For example, for first-class companies such as Huawei and CIMC, to expand production, land is also a big limiting factor.†Zhou Lin believes that for modern manufacturing companies, “low The "cost strategy" is no longer feasible.
Zhou Lin introduced that studies have shown that, with Vietnam's production as an example, its labor cost is almost half that of China, but if it is to produce a product with a high technical content, plus the follow-up steps of R&D, production, etc., Vietnam’s entire The production cost is 1.7 times higher than in China.
"That is to say, the most effective strategy for enterprises is to start from the whole industry chain." Zhou Lin said that only by improving the efficiency and level of the entire production supply chain can we effectively reduce the overall cost.
A few days ago, at the 2011 China Manufacturing Industry Global Operations Summit, Professor Zhou Lin, Dean of the Antai College of Economics and Management at Shanghai Jiaotong University said in an exclusive interview with this reporter that at present, China's manufacturing industry can be described as both opportunities and challenges. “We have industrious and hard-working front-line workers. We have a good time to coincide with being able to 'come in from behind'. However, to seize this opportunity, we must also be aware of the company’s awakening consciousness and the sweat it has to pay for it.†In Zhou Lin’s view, Compared with foreign advanced companies, Chinese manufacturing companies have gaps in their R&D capabilities. To reduce costs and pursue true efficiency, they can make breakthroughs in logistics. In addition, Zhou Lin also believes that the issue of talent is the top priority for the development of enterprises.
“Manufacturing enterprises in China's manufacturing industry must take the 'globalization' line and must be talented. However, there are some shortcomings in the traditional education system that make innovative talents extremely scarce. As a business school that trains future business managers and leaders, it also serves as a domestic First-rate education institutions, we have the responsibility to stay at the forefront, for this continuous efforts, first 'innovation' up." Zhou Lin said.
Innovation should be firm Although there are no authoritative statistics available, it is predicted that in 2010 China's construction machinery industry's total revenue may reach 400 billion yuan. In terms of turnover, two major companies in China have entered the top ten of 2009 World Engineering Machinery Corporation. However, behind the outbreak of the traditional manufacturing market, a series of difficulties still restricts the speed and space for the development of enterprises. The most important issue is the issue of innovation.
According to the data from the China Construction Machinery Industry Association, in 2009, XCMG and Zoomlion ranked ninth in the “Top 10 Machinery Companies with the largest turnover in the world†list with revenues of US$3.5 billion and US$3 billion, respectively. And tenth place. However, the top three US Caterpillar, Komatsu (Japan), and Hitachi Construction Machinery (Japan) sales were $18.1 billion, $13.7 billion, and $6 billion respectively—that is, the Caterpillars’ Global sales accounted for 39% of China's current sales. The gap between the sales volume of Chinese companies and the top few is still not small.
“There are still opportunities for China’s industry to produce world-class large-scale enterprises, but it still faces many challenges. For example, the management mode and technology of enterprises need innovation.†Zhou Lin admits to this reporter that “in addition to strategies and ideas, we must have In addition to innovation, innovation is also required in terms of development and new product production."
Zhou Lin believes that the level of research and development of China's manufacturing companies, especially in "precision" technology, is still not far from foreign countries. The first is the core components and core technologies. These have always been in the hands of individual overseas companies. This has always been a problem that cannot be ignored by domestic corporate executives. “For example, Baosteel Group, although it has excellent capabilities in steelmaking and steelmaking, has visited After the factory, it is not difficult to find that their boilers and other steelmaking equipment are all dependent on imports."
In fact, most hydraulic components and transmission systems in China's machinery industry are imported from abroad. In sharp contrast to this, while the rapid expansion of production capacity of domestic companies, overseas parts and components companies often delay the supply cycle and supply shortages. As for how to catch up with this impossible R & D technology, Zhou Lin suggested: "If you want to achieve the best results in research and development, you must participate in large-scale research projects, stand in a higher perspective to see the market, so as to master the world's most advanced Technology."
The issue of talent is the key There are people in the industry who classify the development of Chinese manufacturing companies into three stages: The first stage is the introduction of technology, digestion and absorption, and the production of products; the second stage is the consumption of a large number of absorption and expansion of production. , Lower costs, make the Chinese people use this kind of product; The third stage is that China's products go to the world market.
More than a decade ago, the Chinese media was concerned about how internationalized companies came to China. Today, we see not only the trend of Chinese companies going global, but also the fact that Chinese companies are “moving†overseas. However, with the increasing aging of the population and the trend of high-tech manufacturing in the future, not only China but also the U.S. manufacturing industry is facing a very critical issue - the shortage of talent.
For China's talent problem, Dr. Ran Ran, Chief Strategy Consultant, Huihui.com believes that “from the point of view of economic supply and demand, China’s talent supply can be imagined as a very 'flat' triangle. This height represents the quality of talent and The level of globalization. However, the demand for foreign companies in China is a relatively 'high rise' triangle, which means that the relatively low-end labor may be oversupply, while the supply in the high-end segment is in short supply.
In this regard, Dean Zhou Lin agrees. He believes that just as the Chinese manufacturing industry urgently needs innovative capabilities and technologies, the reason why Chinese talent is facing bottlenecks is also directly related to the fact that the traditional system has not, to a certain degree, demonstrated the creativity of students.
"The education system with the goal of 'taking exams' has made most graduates focus on examinations only. Endorsing and doing problems has become their main task, which has greatly reduced creativity." Zhou Lin believes that this is why China It is difficult to create an entrepreneur like Steven Jobs.
However, Zhou Lin said that in fact many domestic institutions of higher learning have realized the above problems. Especially for business schools aiming to cultivate the future leaders of Chinese companies, more attention should be paid to the cultivation and integration of creativity, innovation consciousness and practice. “Antai has started to encourage students to innovate and even be entrepreneurial in the setting of the course. We hope that through the study at Antai, the students will not only gain knowledge of management theory, but also learn more in the simulation practice. And use these methods." Zhou Lin said.
Regarding how China's manufacturing enterprises are going global, how to achieve the strategic transformation of local talents and overseas talents, Zhou Lin also expressed his conviction. In the process of globalization, different values, different principles and different methods of management and leadership, especially for the East and the Western world, are all different.
“A good economic manager in Western society may not be able to adapt to the East. Such a problem will be encountered when foreign companies enter the Chinese market. The key is that Chinese companies should realize that they do as the Romans do and understand that different markets exist. Different differences, and to do a full amount of ideological and strategic preparation for this." Zhou Lin pointed out.
The era of "low-cost strategy" has passed the status of China's "world factory", and a large part depends on low costs. In the traditional sense, the cost advantage of China's manufacturing industry is mainly composed of three parts: the first part is a huge number of cheap labor; the second part is that the reform and opening up drastically reduced the institutional cost of the Chinese economy; The part is that human capital has grown rapidly, which is conducive to widespread dissemination of ideas, knowledge, and information on production activities. The most prominent is that large-scale manufacturing of organizational knowledge has taken place in China. This kind of knowledge is an important source of China's cost advantage. However, with the constant changes in the internal and external economic environment, these advantages have gradually shown different changes.
Zhou Lin believes that, on the whole, there are three aspects that reflect the changes in low-cost advantages. “The first is the change in the labor market. In some places, there has been a so-called labor shortage, which is actually a change in the supply and demand situation of the labor force at the local level and stage. These changes are of positive significance to improving the treatment of Chinese workers, especially migrant workers. However, from the perspective of competition, the increase in labor costs must have the ability to digest; if not, the competitiveness will be weakened; the second is the shortage of energy, which is concentrated in the supply of oil, coal, and electricity; the third is the land, It is also a quantitative regulation. Land prices and rents do not fully reflect shortages. For example, for first-class companies such as Huawei and CIMC, to expand production, land is also a big limiting factor.†Zhou Lin believes that for modern manufacturing companies, “low The "cost strategy" is no longer feasible.
Zhou Lin introduced that studies have shown that, with Vietnam's production as an example, its labor cost is almost half that of China, but if it is to produce a product with a high technical content, plus the follow-up steps of R&D, production, etc., Vietnam’s entire The production cost is 1.7 times higher than in China.
"That is to say, the most effective strategy for enterprises is to start from the whole industry chain." Zhou Lin said that only by improving the efficiency and level of the entire production supply chain can we effectively reduce the overall cost.
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