Tiger Sniff Note: This article is the nineteenth article in the "Thinking and Enjoying Digitalization" dialogue series produced by Tiger Sniff Think Tank, presenting the thinking and practice of Shunjierou, a leader in the household paper industry, in digital transformation.
Produced by Tiger Sniff Think Tank.
Written by Ji Yujie.
Header picture丨Visual China.
When going out, most people get used to bringing a pack of paper towels or wet wipes.
But most people should not know how these thin sheets of paper towels are produced.
In fact, because tissue paper is in direct contact with human hands, mouths and other parts, it has very high hygiene requirements, so its production, packaging and storage processes have special needs.
Taking wet wipes as an example, they need to be produced in a dust-free workshop, which is divided into first-class, tenth-level, hundred-level, 10,000-level, 100,000-level, 100,000-level, 300,000-level and other grades according to the degree of air purification. Wet wipes are produced in a 100,000-level dust-free workshop through nearly ten steps such as liquid preparation, filtration, coating, and embossing.
It covers an area of 486 acres with a total investment of 37With an annual output of 580 million yuan and an annual output of 480,000 tons, Zhongshun Jierou's Yunfu factory has countless such dust-free workshops, which are constantly producing tissue tissues, wet wipes, face towels and other household papers.
In the automated three-dimensional warehouse of Yunfu factory, the corridor design is adopted between the production workshop and the automated three-dimensional warehouse, and the whole process of paper products from production to storage is in a relatively closed environment, with a width of 5The 6-meter crescent-shaped paper machine shuttles forward at a speed of 1800 meters, and the mini tissue packaging machine can pack 850 packs of paper towels in 1 minute. The highly automated and intelligent operation process in the factory also ensures the environmental cleanliness required for paper hygiene.
And such a digital and intelligent chemical factory is just the tip of the iceberg of digital technology infiltrating the Zhongshun Jierou tissue industry chain. From the production end to the channel end to the marketing end, Zhongshun Jierou continues to try to use digital means to promote enterprise transformation.
At present, the competition in the tissue industry is becoming increasingly fierce, and the 45-year-old Zhongshun Jierou is also making every effort to sprint towards the goal of 10 billion. Naturally, the expectation of digitalization is not only to reduce costs and improve efficiency, but also to undertake the exploration and expectation of greater market increment.
With the deepening of digital transformation, Zhongshun Jierou has gradually realized that digital transformation is actually a change for enterprises, but also about people. As Yang Linlin, CIO of Zhongshun Jierou, said, "Digital transformation is enterprise transformation, and the core is to get people, especially the CIO, as the supreme commander of digitalization, if you can't become a hexagonal warrior who understands strategy, business, technology, data, process, and innovation, then it will be difficult for the digital transformation of the enterprise to succeed." ”
Based on the above perspective, this article has this title: To be digital?Solve the problem of "people" first!
Regarding the experience and challenges in the digital transformation of Zhongshun Jierou, recently, Tiger Sniff Think Tank chatted with Yang Linlin, CIO of Zhongshun Jierou. Yang Forest has served not only the top 500 enterprises, but also more than 10 billion enterprises, and has rich practical experience in the digital transformation of consumer enterprises. It is hoped that the digital exploration and practice of Zhongshun Jierou Yang Forest can bring some inspiration to the industry.
Here are some highlights from the conversation:
The digital essence of Zhongshun Jierou: a new match of people, goods and places.
At present, enterprises are engaged in digital construction, what are your different views on the definition and understanding of digitalization and digital transformation?
Poplar Forest:Digital transformation is actually a form of enterprise change management that focuses on "transformation" rather than "digitalization". We need to think of digitalization as a tool, and don't overdo the development of tools and ignore transformation.
Many companies look at digitalization as a project and expect to see significant results in the short term. However, I believe that digital transformation is a strategic issue that requires a long-term approach, and we cannot rush to achieve results, and we cannot simply pursue digitalization while ignoring actual needs and goals.
The key to digital transformation is the transformation of people. We need to shift our mindset and embrace new technologies, but at the same time, we need to recognize the limitations of new technologies and not be blind. In this process, it is more necessary to give full play to the role of people and let people participate in the process of digital transformation, so that enterprises can better adapt to the development of the digital era and improve their efficiency and competitiveness.
You have a wealth of experience in digital practice, and from your past experience, what are the pitfalls in the digital transformation process of enterprises?
Poplar Forest:In my personal experience,The first "pitfall" is the blind worship of consulting firms. For example, in one of the companies I worked for, we spent 30 million yuan to ask a well-known consulting firm in the industry to conduct research and form a consulting report. Later, we spent more than 20 million yuan to ask Midea to help us sort out the process and output a large number of complex models and theories to us, but we didn't understand these models at all, and these theories were difficult to land.
Later, the boss wanted to form data assets, and we asked IBM and Huawei to assist in the digital asset work, and the whole set of consulting process went down, spending more than 80 million yuan, but only bought a rich PPT, which did not bring substantial improvement to the company's business. In the later stage, we can only bite the bullet to land, but the business does not buy it, IT is also very arrogant, and is unwilling to discuss problems with the business department, and the final result can be imaginedSo I think consulting companies can help us solve some of the problems, but the business is ours, don't blindly worship consulting companies.
The second "pitfall" is to treat digitalization as a project and pursue short-term benefits. In many cases, the first thing CIOs face in the enterprise is the pressure to survive, so the boss will pay great attention to what achievements will be produced after promoting digitalization. When I came to Zhongshun Jierou, the first thing I did was to change the boss's inherent cognition, so that the boss realized that digitalization is not a panacea, it is a long-term strategy, not a short-term thing that can generate benefits. I also advise CIOs not to boast to their bosses about the power of digitalization, because if they can't manage their bosses' expectations, then digitalization will not achieve the results they expect.
The third "pitfall" is that digitalization is detached from business and is only an IT business. Objectively speaking, performance improvement cannot be achieved by just one soldier, and some CIOs believe that marketing digitalization is very simple, and there are many ways and tools to do so. But the reality is that the sales mind is full of KPIs. One of the most important things that the salesman of many companies do is to drink and eat with the dealer, and then you go to talk to him about portraits, tools, and empowerment, and his real idea is that these things can make dealers buy?If not, then don't talk about it.
So how should this problem be solved?I think "co-creation" is a good way to do it. In Zhongshun Jierou, I choose to use the algorithm model to drive, let our salesman become the executor, tell him what needs to be done, and let him execute. In my opinion, empowering the grassroots is an ideal state in many cases, and it is better to just let them implement it in a down-to-earth manner.
The fourth "pitfall" is that business personnel are still accustomed to patting their heads and will not use modern and smarter data to make decisions. For example, in everyone's mindset of swimwear, it may be that swimwear in coastal cities sells better, but in the data, it is Xinjiang and Inner Mongolia that sell the best. In order to combine digitalization with business, it is necessary to deeply integrate business with digital systems, and let the business see the actual value of the system, so as to avoid the decision-making method of "patting the head" and make decision-making more reasonable.
What is the digital strategy of Zhongshun Jierou?What is the relationship with the development strategy of Zhongshun Jierou enterprise?
Yang Linlin: At present, the troika of Zhongshun Jierou's development is process, data and IT, and behind the data is the reconstruction of business processes. Unlike many enterprises, Zhongshun Jierou's culture is IT to lead and promote the business, and what the business needs to do is to execute.
I believe that behind the digitalization must be the restructuring of the business, and an organizational structure of 0 to 10 billion must not be able to support the development of 100 to 20 billion. For example, when we place an order on the front end by mistake, the goods are out of the warehouse, and then they cannot be put on the shelves immediately, and can only be put in the inspection area. That's why IT must drive business and process refactoring.
The IT system is the last function of the digital link, and we need to think about all the things after the fact before building the system。When the business model is immature, I don't blindly do the system. When I first came to Zhongshun Jierou, the company had 52 systems, which were distributed in a dotted pattern, and they couldn't even talk about chimneys. Later, I pulled everyone together to reorganize the business and processes according to the company's development strategy, and almost all the systems were overturned and rebuilt.
From the perspective of Zhongshun Jierou's corporate strategy, I think our business will be concentrated in the future. Because the essence of business is the exchange of resources between people, in this essence, business must have transactions, warmth, and experience. Therefore, in this environment of national e-commerce, I insist that Zhongshun Jierou should play offline.
Why?Let's make an estimate, 300,000 stores can do 4 billion business, what about 1 million stores, this is a simple and crude business model. Of course, you will ask these stores from?At present, Zhongshun Jierou has cooperated with Tencent to get 10 million retail stores across the country and the area, image, and label around each store, so you can know what store the target consumer likes, what mobile phone to use, and what the occupation is.
The new matching of people, goods and places is the essence of Zhongshun Jierou's digitalization. When people, goods, and places are newly matched, and the overall corporate strategy is planned, we will talk about how the digital system should be laid out, so that digitalization is logical.
Be a person first and then do things, and grasp the balance between people and systems.
The strategy and path of Zhongshun Jierou to reconstruct digitalization is to reconstruct the business process and enterprise transformation, and there is a difficulty in this reconstruction is to efficiently connect the online and offline processes
Yang Linlin: The concept of "process" was first proposed by IBM. At present, China has done relatively well, such as Midea and Huawei, which are all carried forward on this basis, but it is difficult for business process standardization to survive in the large consumer industry.
Why do you say that, because it's a thing that is constantly balanced between human nature and institutions. Doing things in a physical enterprise is a process of being a person first and then doing things, and it is necessary to grasp the balance between human nature and systemIt is not a simple end-to-end process pull through according to standard specifications.
For example, is a three-node process necessarily more efficient than five?Not really. Zhongshun Jierou does not pay too much attention to whether it is necessary to reduce those nodes in the process. The core of the process is to let everyone follow the rules of the system within the system, and work very efficiently and comfortably, which is the essence. It's not done for the sake of doing, and the best process is one that everyone doesn't feel it, but it spontaneously follows it.
The essence of the system is actually the transmission of information, and it is anti-human, so when improving efficiency, we must consider human nature. If you ignore the "human" factor, you will find that people will think that the process you have set is very demanding. But if the "human" factor is considered too much, then there is no process, it is full of loopholes, and it is very important to control this balance point.
In the process of process restructuring of Zhongshun Jierou, the first thing I solved was the most complained about and annoying processes, such as finance, administrative approval processes, etc. In this process, I will use the data of process efficiency, nodes, and approval time as references, but I pay more attention to people's emotional persuasion.
Therefore, the setting of the digital system must measure a lot of factors, because it is not only a matter of technology or system, every point, every system is the result of measuring the environment, people's emotions, behavior, corporate culture, system and other factors.
Zhongshun Jierou's digital practice starts from finance, how does the digital transformation of finance unfold?
Yang Linlin: Previously, Zhongshun Jierou's finance department had hundreds of employees, often working overtime day and night, and although it was very busy, the actual output value was limited.
In order to solve this problem, we are considering how to design and position the finance department at the beginning of the digital transformation of finance. In my opinion, in order to better adapt to the future development of Zhongshun Jierou, the finance department needs to be transformed into a comprehensive department, with better communication and collaboration with other business units.
First of all, after clarifying the responsibilities and positioning of each position in the finance sector, focus on people who have the ability to understand the business and have model and algorithm thinking to form a sharing center, so that these people can participate in daily business communication, discussion and reporting
Secondly, the financial staff is divided into three parts: strategic finance, business finance, and cashier accounting. Among them, the core is business-oriented finance. We hope that in the course of business, business-oriented financial personnel can help enterprises control risks in advance at the first time, and even lead and promote the development of business. After all, the best way to control risk is to avoid it before it happens.
In addition, at the management level, strategic finance needs to consider the direction of ROI investment and the strategy of spending money. I don't think companies should spend money to save money, but should create more value by spending money. In the case of limited economic growth, money should be spent on things that generate value, and the goal of Zhongshun Jierou has been financial transformation is to improve the efficiency and competitiveness of enterprises.
Zhongshun Jierou's digitalization has also taken a detour, you also mentioned earlier that there have been repeated iterations on whether the factory should be on the MES system, can you talk about this process specifically?
Yang Linlin: Previously, Zhongshun Jierou's Yunfu Automation Factory spent 6 million to deploy the MES system, allowing workers to adjust the machine parameters according to the large-screen data in the production workshop. When the data is inaccurate, it takes three people to make real-time adjustments in shifts, which is time-consuming and laborious and cannot solve the problem.
Later, when we went back to why we wanted to build this system in the first place, the answer we got was to extract data, do report analysis, and adjust machine parameters and speed based on the data to improve production efficiency and productivity.
But back to reality, the degree of automation of the Yunfu factory is very high, the machines on the production line are running non-stop, the processes are connected, almost no manual work, even if the sampling inspection, sampling and other processes are also completed by the machine, and the factory adopts the vertical warehouse setting, after the production of paper towels is packaged by the automatic packing machine, automatically on the three-dimensional warehouse, sales If there is a shipment plan, **After the order is placed, the truck will wait at the door, a** The car pulls the goods over, the driver loads them into the car, and the whole process is over. With such a high degree of automation, there are only a few problems that can be solved by an MES system.
Later, we analyzed it and found thatThe real pain point of the factory is the uneven production capacity at the beginning of the month and the end of the month, and the problem of frequent production of useless goods and frequent cross-regional transfer caused by inaccurate sales. We don't need to do MES system, what we need to do is to use APS advanced scheduling system to improve the accuracy of sales and solve the problem of logistics warehouse network planning, which is the key. So, we stopped the MES system and started to deploy the APS advanced scheduling system.
The above is the public content of Shunjierou CIO Yang Forest in the Tiger Sniff Think Tank dialogue. In addition, Tiger Sniff Think Tank also communicated with Zhongshun Jierou about channels, business and organizational changes in digital practice, and thousands of words of essence and dry goods will be fully presented in the form of "502 digital internal reference" in the Digital Club community of Tiger Sniff Think Tank.
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