China Automotive progeria

 This is a speech encouraging people to wake-up call.
Do not think it is groundless, or making a fuss. Triumph in the Chinese auto industry when the mouth, we particularly need this kind of objective and calm voice.
This is the CPPCC Standing Committee, Honorary President of Society of Automotive Engineers of China this year, the Guangzhou Motor Show Forum Shaoqi Hui's speech, in this, I will be their original article, were to share with you.
Shao old with serious and pragmatic style. I interviewed him, He said that the annual auto show, whether it is Beijing Auto Show Ye Hao, Shanghai Auto Show matter whether he does not attend. He only participated in the Guangzhou Motor Show. while the Guangzhou Motor Show Forum keynote speech, he will spend 3 to 6 months time to prepare: general is his own written word by word, and then make corrections, and multiple comments, and finally knocked out by the Secretary. their love of their King, it is emotion.
China Automotive progeria
some companies had not come easily The success, perhaps we are paralyzed from the concept, strategically distract us so that we can not accurately determine their own dreams, the strength and the gap between the objective need
Honorary President of Society of Automotive Engineers of China Shao Qihui
victory in the Seventeenth Party Congress was held, opened a new chapter in the development of China's socialist cause, so that we stand on a new historical starting point, look to the prospect of the great rejuvenation of Chinese nation. We face unprecedented opportunities and challenges is also unprecedented. the sacred task of our automotive industry, is the cause of building a moderately prosperous society, maintaining the automobile industry and good, fast, sustained, healthy development, contribute to a harmonious society.
avalanche of China's auto industry is to rapid development trend, we are in the car power to a vehicle power an important period ahead. In this critical period, we must unswervingly from the mind, reform and opening up, scientific development of social harmony and building a moderately prosperous society in four aspects Deep research and development to improve the industry. China Automotive struggle of people have the courage and passion, but lacks a calm, deep reflection; for victory to get a strong look forward with confidence, they have no worries and prepare to face failure; China automotive industry on the whole, beautiful spring, glorious future, but some companies have emerged signs of premature aging. These problems are not trivial, nor is it alarmist, it is deciding the rise and fall, and directly affect the healthy development of the industry. I speak today, the purpose of is facing unprecedented challenges to enhance the sense of auto companies, to avoid premature aging.
metabolism, survival of the fittest is not only a natural evolution of the law, law of social development, but also the fate of the market economy the law of business. Throughout the world, business, few companies can claim to longevity, countless businesses escape the fate of premature decline until extinction. Statistics show that approximately 62% of U.S. corporate life is not more than 5 years, only 2% of the enterprises to survive 50 years. medium-sized businesses of less than 7 years, generally multinational companies 10 to 12 years average life, average life expectancy of less than big business 40 years. Japanese companies slightly longer life expectancy, with an average of 30 years. 1994 to 1997, the Global Growth quick survey of 200 companies, only 16% of the company can maintain the growth rate over 10 years. According to Fortune 500 companies in the study shows that 50 years of the 20th century, 500, to nearly 90 1 / 2 disappeared, and today only 1 / 3 of the 70 century, the world's .20 500 companies, are now only about half of the.
much the same situation in China. The average life span of small businesses was 2.9 years, the average private enterprise life of 5.7 years, average life span of the company 7 to 8 years. According to statistics, in 1988 has reached the scale of private enterprises, so far only 9.2% were still alive. China has nearly one million bankruptcies each year. from 1999 to 2006 individual businesses to reduce 870,000 per annum. National high-tech enterprises in the past 20 years, have been eliminated 90% of the continent's richest .90, and now only a few left in the list on the.
reform and opening up Since a number of industries and many companies are at different times had a glorious, but now a lot like a meteor has fallen. such as household appliances industry, the boom in 1995, more than 200 brands from time to time, to 2000, only 20 , 90% of the brand disappeared. Others, such as cosmetic and other industries are basically the same. Many people who are proud of the companies such as Sun God, three, giant, dragon, Asian, love more, Qin pool, has been turned into history Elegy blowing in the wind .2005 Mr. Liu Fuguang published a book, entitled The: Steel crazy sun rose: the first defeat of tea
crashing down the mountain today crashed
Wang Mazi: century-old Big L: Grassroots Elegy precarious financial
unlimited ... ... < br> Finally, preceded by a huge exclamation point. The book writing is vivid, concrete examples, it is worth entrepreneurs reading. all these years, I deeply feel that the success of companies and individuals on the reports, are more superficial, indeed, full of flattering the speech. Only when failure comes, we can get a glimpse of the true colors, unfortunately too late.
I do not want to say, enterprises and entrepreneurs will die. On the contrary, I would like to point out that although the market competition is so tough, if always remain sober minded, enterprises and entrepreneurs always have some evergreen. commendable that they passed with the storm of hard work, to adapt to change with the times, constantly deny themselves, better bring to adjust and reshape itself even the all-round reform, and thus from victory to victory, after hundreds of years without failure In 1996 the world's top 500 enterprises in more than a hundred life of more than 100 years, 44 of which more than 150 years, 8 more than 200 companies years, the oldest is the Swedish company STORA pulp and paper companies, it has been there 700 years.
enterprises have failed to return for expensive lessons, successful companies will have difficult and hard work worked out a success. In fact, we pay more attention to product life cycle of observation and research, but rarely consider the law of illness and death of enterprises. As then, we have to cherish the history of Enlightenment, drawing on successful experience, try to avoid repeating the mistakes of premature aging.
review China's auto industry, in the past twenty years, because of market demand, the gate was open and decisive, not only to guide the policy of reform and opening up of international capital, technology, talent and brands rolls into the room , and solved all the fetters of corporate development model, coupled with exceptional levels of government effort to help, so camel auto industry development and growth spurt, almost all of the auto companies have achieved varying degrees of success. But now international and domestic brutal competition has intensified, the market is full of too many risks and uncertainties, especially in some of the difficult business to the success of the original, perhaps we are paralyzed from the concept, strategically distract us, so that some business leaders can not accurately determine their own dreams, the strength and the gap between objective needs, but it is difficult to make an informed choice is painful, and some companies began to emerge a harbinger of premature aging, it is worth attention. Now, I am the cause of premature aging auto companies a rough analysis.
(Note: this speech, I quoted some examples, but more about general business, less about the automotive industry; about foreign and more about less domestic. This is because although the domestic auto companies The success and failure is caused by my thinking based on, but I still do not want the special conditions of the automotive industry to cover up the general laws, but also that of an emerging industry and business, to make specific conclusions too early.)
a , Impetuousness automotive industry is still the enemy of implementing the scientific concept of development and will lead to premature aging
business nearly ten years, the automotive industry's rapid development, do let the car were proud. But this fast after all the special times , achieved under special conditions. This specificity can hold out? automotive industry, the rapid development of our credit, but the subjective and objective role in the success of how much each? climate, geography and people and each dash? some business success causal factors too, too late to calm business leaders and even the causes of success and potential problems, we can not wait to talk about the experience of success, peace of mind to accept the media touted (and some money to buy), blurted out rhetoric without cover . engage in a new product, to dare to boast of epoch-making significance. won the first foreign order, or even just a few more orders for prototypes, to claim that has been exported to dozens of countries and regions in the international market success. Of course, the success of results can form the rhetoric, but rhetoric may not be able to piece together future performance; temporary success, not necessarily you every success in his life. We in the plain language of the automotive industry too little, filled with many occasions boasted of the advertisement, is worrying.
in the report of the Seventeenth Party Congress, Comrade *** warned us deeply, although China has made remarkable achievements and significant far-reaching changes, but China is still in primary stage of socialism, and long-term basic conditions do not change, we must always remain sober minded, primary stage of socialism, the largest practical. only not sell ourselves short, wallow in backwardness, and do not unrealistic pursuit of quick results. This is entirely consistent with the status of the automobile industry. Although we are the automotive power, but the whole process of development of automobile industry perspective, we are still in the initial stage; from the auto industry overall, despite our dynamic industry, still lack adequate power. This is the industry's largest practice, all our thinking and behavior can not ignore this basic situation. Hong Kong has a business called the Johnson Electric Group, in the sub-micro-motor and drive the worldwide leader in the field, the annual output over one billion units, the Hang Seng Index constituent stocks of the only industries. Company credo is never say that they are the first, otherwise it will lose the momentum to move forward.
goal is the pursuit of higher performance revolution passion and dedication, impulsiveness with which the surface has some similarities. The difference is that the revolution career goal is through scientific argumentation, practical, and the impetuous wind advocates the goal is arbitrarily, without basis, not to deceive others, is to lie to myself. Now, some car companies do not speak and stronger, they talk about bigger ; not in quality efforts, he kept the volume to make a fuss; do not take seriously the economic issue, but blind misappropriating attract investment, expand the scale of harm than at a great trend. impetuous in product development, the main characteristics of the wind is eager to find as, at the infringement of intellectual property rights of others, nor care of their innovations; honestly do not experimental, not the accumulation of data, not copy, even immature products to market, allowing users to taste the bitter pill. There is no doubt that China automobile industry goal is to continue to focus on the domestic market, into the international market. internationalized This step is very important and also very difficult, requiring scientific and rational, are prepared to coordinate a planned expansion. At present, some companies do not devote themselves to study international the operating rules of the automotive market, not to analyze the areas of regulations, standards and intellectual property requirements, pay attention to seize the opportunity to Hampyeong said: Chinese companies, and now I could not understand what is it the most? impatient, just bigger. I think that companies should step by step, first and then do a big business and stronger, this is a positive purposes. enterprise virtual large very dangerous. entrepreneurs should engage in some claimed to have hit a few to create some kind of miracle auto companies are now facing an embarrassing situation. industry insight that some monster return as soon as possible if the scientific development of the road, crashing down the day not far away. This language is not alarmist.
the last two years business has some thought-provoking event, which is one of China Resources Group has been on the Huayuan Group and Sanjiu Group was reorganized, and control. Review of Resources, Huayuan and Sanjiu history, the There are many similarities, are old state-owned enterprises are expanding rapidly, both to diversify the road, had a smash hit. But people with different life, on the the latter two . and finally dried up, Huayuan instant collapse of the Empire. Sanjiu Group started 500 million over ten years by hundreds of times between the mergers and acquisitions, became known as the 200 billion in assets, three listed companies and 400 subsidiaries of the pharmaceutical empire. San Jiu Wei Tai is to create the miracle of Chinese medicine industry sales. But just as arrogant when it CR compared to the previous two, the biggest difference is that the road go steadily Dangdang, and always create value for shareholders on an important position, both to avoid the Sanjiu the rule of man, but also in the expansion of some restraint than Huayuan, and ultimately success. history is so, opportunities and risks always exist, to be honest, we tend to be more sober look at the past, and often easy to see the future far-fetched.
the impetuous wind of auto companies and business leaders, although related, but the whole industries, the impetuous wind is in certain government departments and local government formed under the clamor and encouraged. Many auto companies can not really solve the witch hunt, the enterprise has a very significant administrative act color is almost certain major decisions mainly controlled by the government authorities. chasing GDP performance of certain officials do not care the basic rules of market economy, local protection seriously, elimination mechanism failed to form. the blind pursuit of high indicators of certain acts, not only with the scientific concept of development is not inconsistent because criticism and stop, but was touted as a bold vision and courage. a city of only 200,000 automobile production capacity to say 10 years later to become the Detroit of China. Some government departments do not cherish the rights conferred by the party and the people, and sometimes abuse released Some unscientific and unrealistic regulations and guidance, companies often have to face a number of subjective and objective conditions do not have the ability to Some policy-oriented, so lay smoke and mirrors, the industry speechless and confused.
scientific concept of development has always been to keep the economy is one of the rational growth, stressing that . Impetuousness in essence, do not follow the scientific concept of development. impetuous people in the epistemological and methodological deficiencies due to: the epistemology and ignoring the objective law of progress of things, replace the objective with the subjective and objective may be, expressed as impetuous; in the methodology regard, the development of things that do not follow scientific procedures, using administrative means to apply force, preferences Taihongtaiweng, do not want a solid, step by step, also performed for the impatient. impetuous do harm a benefit, when faced with difficulties and setbacks , blundering through the efforts will be adversely affected by possible turn. When the moment made some achievements, impetuous is more dangerous, likely to jeopardize them, go in the opposite.
Second, awareness of independent innovation bias and distortion, will allow businesses to lose innovative activity and premature aging
innovation is a resounding slogan, but nowadays many executives and policy makers understanding of innovation both superficial and one-sided, and the formation of a wrong mindset, not only seriously affect the CPC Central Committee on the establishment of innovative practice-oriented country, and to develop strategies affect the correct development.
how to understand innovation is an international issue, it has a distinct characteristic of the times In 2003, the EU proposed new understanding of innovative concepts to .2004, the U.S. national innovation action plan, repeatedly emphasized the innovative variations .2005, anchored the CPC Central Committee to the scientific development concept, proposed the establishment of a comprehensive and profoundly innovative country.
in different areas, innovation has different priorities and standards. For enterprises, innovation is market-oriented, for commercial purposes, to give the economy into society, enterprises and consumers the additional value of new things. innovations in resource allocation have a basic role. That is: Innovation and the price is different from the hand of the market economy two mm instead of a comprehensive concept of innovation, and even replace a more general political philosophy is more fundamental profound economic benefits. Many people only emphasized the innovative technology leadership, the neglect of innovative business and application, so their No intellectual property rights and patents, but by how much it is spending to create value and social value, and created a number of advantages can be translated into the unique nature of business. enterprises can not achieve commercial success, they are bound to decline.
the essential characteristics of innovation, is its diversity and dynamic. innovative and dynamic nature of diversity, first by the diversification of sources of innovation. quite a lot of people think that the only source of R & D innovation. the real innovation comes not only from research and development, and is derived from many aspects, including market demand revelation, the pursuit and recognition of users, industry changes the rules, production process improvements, the accumulation of experience and some surprises. innovation and diversity is the diversity of participants in a expression. Innovation is not a department or a small number of experts and researchers the task, but of the entire staff shared ideals and goals. modern innovation is not limited to a single enterprise, but covers all aspects of the pursuit of establishing a new innovation system, showing the characteristics of a collaborative network.
Second, the diversity and dynamic nature of innovation is also reflected in its content is very rich, much more than technological innovation and product innovation, it also includes institutional innovation and mechanism innovation, management innovation, business model innovation, service innovation, mechanism innovation and other personnel. Some people mistakenly believe that innovation is the only new thing today. In fact the history of mankind is a history of innovation. from the date of the new China was born when we have no land is not without innovation, especially after the Third Plenum, the policy of reform and opening-round lead with a fundamental innovation, it is this innovation so that the motherland of socialism with Chinese characteristics and create the great cause of world interest, but also the Chinese automobile industry took a great power. We live in the new economy, the simple technology to save the enterprise point of view is very outdated. currently ranked the world's top 30 companies (by revenue), only three in the high-tech (GE, Siemens, IBM), This history also have 3 100 years. of those who are out or exit 500 companies, is basically the main reason for failure is not technical reasons, but mostly business strategy and system innovation has not kept pace .
new situation gives new meaning to industrial innovation, but new content is still based on the reform and opening up this point, and the same strain. innovations in all aspects of content are intrinsically linked, form a system. technological innovation requires other Many reform and innovation to be effective co-ordination. only by pure technical innovation, in general, can not achieve commercial success, the industry has many examples of successful companies confirms the correctness of this understanding. Shenzhen Hang Sheng as a rapid rise automotive electronics enterprises, the development of technology is critical to their business, but they are not therefore be neglected and innovative content. these years precisely because they take a scientific innovation, comprehensive, coordinated and carried out, including strategy, concept , mechanism, technology, marketing, management, innovation in six areas, which business continuity, rapid and healthy development. Jianghuai the system as a core competence.
Third, innovation in content and extent of the huge difference is the diversity and dynamic nature of innovation and significant features. did not exactly the same enterprise, nor the same subjective and objective conditions and therefore there is no standard model innovation. with a business, in different periods of innovation in content and form are different. different enterprises in different stages, should determine the different innovation strategy. every enterprise to find and only from the reality choose the right innovative ideas and innovative solutions at the right time to launch a comprehensive, effective organization and implementation, to be successful. independent innovation and joint ventures, which are used by some people think is the absolute opposite entirely different path of development, fluctuations in the stirring operation of the market, the unconsciously began to come together. has been Guangzhou Honda began to make their own brand. This change is the development of corporate strategy, is growing by leaps and bounds, accurate and innovative ways that this is the business of innovation. We appreciate this spirit of reform, innovation and smooth look.
III traditional management philosophy, will limit the company's modernization
country towards modernization, social modernization at the turn of our times if you do not become a modern business enterprise, will decline even be eliminated. enterprise modernization of the essence not primarily modern equipment, modern products, but the concept of modernization, the modernization of management.
our automotive business in the traditional management model is currently overwhelmingly dominated, and in the management is the pursuit of norms, pay attention to the system, attention to detail, emphasis by rules of practice management and ordering. These methods are, and the mechanization of the Industrial Revolution, large scale assembly line production methods and adapted, have effectively played a role in the future will continue to be effective in many ways. But the scientific Marxist thinking qualities and management principles, basically as the main system to prevent the characteristics of the concept and the requirements of modern society it is the growing gap.
production determines the superstructure, the level of productivity and social development determine the management model. Modern society gradually into the information technology and high-tech era, computer applications greatly expand the ability to work and efficiency of network and unlimited open information systems and human communication platform, fast-paced modern production methods , varied, high-efficiency features, highlighting the human role. but man's role into full play, to be social progress, the most decisive factor. modern society, the fundamental concept of people-oriented, in order to build a harmonious society as the goal. consequent modern enterprise management philosophy is to continue to manage as a corporate value and based on the objectives and implement people-oriented principle, to caring for people, do good work and play to people's subjective dynamic role, as the core of enterprise management .
traditional management mode and modern management mode difference between the two is that the former focus too much on personal financial interests and corporate profits are achieved to meet to achieve the goal of maximizing benefits. the latter is the maximum degree of importance to train and play team everyone's enthusiasm and potential of the human capacity as the first enterprise resources in order to achieve overall business goals with each employee. The former . The former The latter great enthusiasm and creativity. The former general in the business development staff are still capable of a smooth and stable when only the senior technical staff and executives still do not suddenly quit. And when companies encounter difficulties and setbacks, the team easily and quickly lead to thinking confusion, companies can quickly collapse the building. the latter regardless of the wind against the risk of emergency, the staff has always been business as their home, love enterprises such as home, and down to a heart like, an effort to make, often saved the day.
play staff's enthusiasm and creativity of the key is to have the talent to use modern management mechanism, to give every employee a viable career upside and a clear career development prospects. The key point is that these are achievable, rather than perfunctory staff elusive. DuPont 200 evergreen, and their experience is one of the important business of all employees do everything possible to create an environment display their talents. They have plans in the work of training, practical work in different situations of staff direction of development laid down so that the staff's personal goals and expectations of the company's unified. For example, the development potential of individual employees, to give more attention and specialized training to help him achieve a breakthrough and upgrading; development space for those small employees, then help them to maintain the existing good condition, get the necessary psychological satisfaction. in the world almost all of the evergreen enterprises regard to staff training and concerns as the most important long-term investment. all these years I have been concerned about and admired Guangzhou Auto innovative model of development potential, take a look at the total annual harvest, the feeling is that they made the most Geely visit, in some ways deeply auspicious beginning to a mature modern enterprise. The most important thing is that they emphasize the dominant elements of business people, the right skills for its creation, technology development level, and other multi-channel post so that their talent was the best use of business to be invincible. excellent management experts Welch said: Well of Wisdom. Africa, a fundamental guarantee for all the struggle and the party is for the benefit of the people, so that development for the people, development depends on the people, the fruits of development shared by the people. We have resolutely smashed in the enterprise reform of the planned economy iron rice bowl reflection. with this, why not rely on the wisdom of all, find another way, create a new In the final analysis is the millions of hard work and sweat of workers cast, we will never forget or ignore that. Hewlett-Packard was founded in 1939, not only for its excellent performance into the ranks of the world hundreds of large companies, but also its human attention, respect and trust throughout the world. The company's employment policy is: to provide you with a permanent job, as long as you perform well, the company will never hire you. recession in 1970, the company has been clobbered, but the company did not cut a person, but all employees (including leadership) 20% of all pay, up and down worked hard to tide over the crisis, the results of the company while maintaining full employment, and successfully get through a recession.
prevent us from understanding and the real implementation of the , typically in a certain area of outstanding planning to create some earth person. entrepreneurs different from ordinary managers, they must have highly sensitive to market perceptions, to understand the industry situation the bigger picture, good at grasping the development of enterprises direction and opportunities for the development of business planning, capital and manpower to properly dispose of, take major decisions. entrepreneurs to a greater extent of the rise and fall of enterprises, so much respect. but also entrepreneurs, who by the time and space, in the thinking and knowledge also have some limitations, they have their own feelings and emotions, as well as their own personal lives, and therefore we can not inappropriate to their excessive demands made in the publicity They can not be , Before the performance, overestimated the role of the subjective and personal effects of prominent individuals in the team, the collective contempt, not listen to different views in decision-making, self-righteous, conceited, opinionated, their ability, experience and habits may become continue to develop the disorder, past glory to cover the eyes of smoke could be difficult to find signs of decline. business growth is not easy, crashing down very quickly collapse.
Bill. Bill Gates created Microsoft, the world's most profitable companies, said that only 8 countries gross national product than Microsoft, so some people joked that Microsoft is the world's 9th largest country. Someone asked Bill. Gates, Microsoft's why development so fast? What is the key to success? Gates always said every time: I was invited even better than me, better person than me to join Microsoft.
Fourth, enterprises and qualitative trend, some companies will accelerate premature
number of enterprises has been the high side of the vehicle, but since a few years ago most of the automobile business owners compare specific products, product mix and significant differences between enterprises, coupled with the enterprise have received care and support of local government, it has not caused serious block the development of the automotive industry. But the past two or three years, auto companies product mix suddenly accelerated the trend of convergence, becoming increasingly severe, a cause for serious concern.
any viable thing has its own characteristics, can be said that feature is the vitality. the socialist cause in our country has always been vibrant, the fundamental reason is that with Chinese characteristics. the party's congress made it clear that only socialism can save China, only the characteristics socialism can develop China. socialism with Chinese characteristics is a great way. can be said about this issue is by far the strongest voice characteristics of the road.
unique features of the enterprise is also very important, or even can be said that corporate vitality and strong competitiveness of whether or not the sign. the highest level of competition among enterprises is to win without fighting. win without fighting the basic principle is: more than the pursuit of better, and to pursue different; not simply lost in the follow-up, and to the courage to create . the so-called: find differences in the same industry, with product demand specialization. high-level competition of winning without fighting the power, far greater than the same level of melee-style fighting. Coca-Cola CEO Robert wrote: If you can not different , it is doomed to fail miserably.
product mix, technological structure and business model convergence, some business leaders is the lack of strategic vision, the pursuit of immediate interests of the upset, is a non-party and vicious competition, innovation and courageous performance . China's home appliance industry in the history of ...