With the development of intelligent manufacturing, China's manufacturing industry is facing a historic transformation and upgrading.
Over the past four decades, China's economy has experienced remarkable take-off, and the most noteworthy of this is the sudden rise of manufacturing in the face of global competition.
From 1980, China's manufacturing accounted for less than 1% of the world's total, and in 2010, it surpassed the United States to become the leading manufacturing country and the world's factory. In recent years, the escalation of global crises and the unpredictability of geopolitics have aroused the attention of countries around the world, and the discussion of de-globalization and regionalization has intensified.
At the same time, China is also experiencing a historic leap from a manufacturing country to a manufacturing power, from the initial processing and assembly of parts, to independent research and development, independent innovation, the rise of domestic manufacturing under the torrent, is a national enterprise transformation and awakening.
At this point, we can't help but think about how the global layout has an impact on China's manufacturing, how China's manufacturing can respond to anti-globalization, and reflect the actions and responsibilities of the world's factories
With curiosity about the development, rise and future of Made in China, on November 30, the Harvard Business Review Chinese Edition Private Sharing Conference and Yangtze River Lecture Hall invited Mr. Li Dongsheng, founder and chairman of TCL, a benchmark enterprise representing Made in China, to share his journey in the company's transformation process.
TCL's path to transformation.
Founded in 1981, TCL has experienced the whole process of China's reform and opening up, and the company has "crossed the river by feeling the stones" in the process of manufacturing upgrading.
TCL's success is the result of two landmark transformations. A transformation was in 2009, when TCL focused on R&D and manufacturing in the field of terminal products, and opened overseas markets with efficiency, brand, and product differentiation.
The establishment of TCL Huaxing in 2009 enabled TCL to begin to transform from traditional manufacturing to technology manufacturing. After that, TCL Huaxing gradually grasped the right to speak in the global LCD panel through continuous exploration and catch-up, and eliminated the technology generation gap with leading foreign companies in the next generation of display technology to achieve "parallel running".
The initial establishment of TCL Huaxing is not only blessed by objective environmental factors, but also inspired by outstanding enterprises in the same industry. South Korea's Samsung has always been the leading enterprise in the field of LCD and color TV, and it is also the goal of TCL to learn Xi and catch up. The reason why Samsung has been able to continue to lead the Asian LCD manufacturing industry for decades and has an absolute competitive advantage in the consumer electronics terminal market is due to Samsung's forward-looking layout in the upstream display field.
Inspired by Samsung, Li Dongsheng, founder and chairman of TCL, realized that if TCL wants to completely get rid of the dilemma of "less screen", it must extend the industrial chain to the field of semiconductor display manufacturing. At present, TCL Huaxing has become a leading manufacturer in the global panel market.
Jing Bing, associate professor of marketing at Cheung Kong Graduate School of Business, summarized the successful experience of TCL's initial transformation from three aspects.
1.At the beginning of its establishment, high-tech enterprises should focus on cost advantages and efficiency advantages, and then turn their attention to product leadership and technology leadership after establishing efficiency leadership. Based on TCL Huaxing's experience, this strategic deployment has enabled TCL Huaxing to lay the foundation for survival and development.
2.Next, enterprises should ensure continuous investment in R&D, steadily transform to high-end products, enrich product line construction, and build a diversified and multi-category product matrix. TCL's continuous investment in R&D has made it one of the leading technology manufacturing companies, and its independent research and development and holding a number of patents have become the most important core competitiveness of the company.
3.High-tech enterprises should also pay attention to the improvement of the industrial chain and continuously improve the industrial ecology. TCL Huaxing's semiconductor display manufacturing requires hundreds of raw materials, and the company has built upstream and downstream industrial clusters through ecological partners to improve the industrial ecosystem. At the same time, TCL Huaxing has also established R&D alliances and strategic alliances with partners to build a healthy, benign and lasting competition and cooperation relationship.
Now, TCL Huaxing not only has an absolute influence in the field of LCD panels, but also has an increasing influence on OLED, another mainstream display technology. According to the data released by the well-known market research agency Stone Partners, TCL Huaxing also achieved a price of 9The 9% market share entered the top three of OLED global shipments for the first time.
The second growth curve.
In 2020, TCL acquired Tianjin Zhonghuan Group to open up a new track for the new energy photovoltaic industry.
Different from the layout of the upstream industrial chain during the initial transformation, TCL's second transformation in 2020 is a march into a new track. Many people are surprised that TCL has entered the new energy photovoltaic industry, but from the perspective of the nature of the industry, the semiconductor display industry where TCL Huaxing is located and the new energy photovoltaic industry of TCL Zhonghuan belong to the same pan-semiconductor industry chain, and their overall development laws, strategic resource needs, and operation and management logic are highly similar, and the two can complement each other. TCL's technological innovation capabilities, operation and management capabilities, and global expansion capabilities accumulated in the field of semiconductor display can be extended, expanded, and matched to the industrial fields where TCL Zhonghuan is located. Therefore, TCL Zhonghuan can be regarded as a horizontal expansion of TCL's upstream capabilities in the industry.
TCL Zhonghuan implements the "global leading strategy" in the field of silicon wafers and achieves the world's first comprehensive strength. In 2022, TCL Zhonghuan's performance will reach a new high, becoming a new growth engine for TCL.
Simplify the complex, control the complex with simplicity.
TCL's achievements are also inseparable from the absorption of R&D personnel in various fields, as well as the continuous improvement of the company's internal organizational structure with business adjustment. In Li Dongsheng's words, TCL's innovation is an "eight-nation alliance", and outstanding talents are pouring in from all corners of the world.
When it comes to how to quickly attract high-quality talents, Li attributes it to TCL's high-quality innovation platform. He pointed out that technology manufacturing companies should give long-term incentive policies to employees who join the company in the early stage, so as to attract more high-tech talents to join, and then quickly complete the construction of the initial organizational talent structure, and independently cultivate the company's backbone.
When the business has reached a certain scale, it should be simplified.
TCL's revenue exceeded $100 billion for the first time in 2014. However, in the following three years, the group seemed to have fallen into the "100 billion curse", not only revenue growth stagnated, but also operating efficiency continued to decline.
As a result, since 2017, TCL has been streamlining its organizational structure and focusing on its corporate strategy to support the rapid development of the company. In the past two years, TCL has divested and closed 110 non-core business enterprises, merged and eliminated departments, optimized redundant positions, innovated management models, and improved operational efficiency.
Although the process of reducing costs and increasing efficiency has been painful for Li Dongsheng, he is very clear about his responsibilities. As a business leader, he said that his most important task is to coordinate, manage and integrate resources, and constantly discard redundant parts to maintain focus and achieve precision in the core business.
Mindset challenges in transition.
China's economy is in the process of transformation from high-speed growth to high-quality development, and at the same time, with industrial upgrading, China's manufacturing industry will gradually shift from "Made in China" to "Made in China". There is no doubt that "intelligent manufacturing" will become an inevitable trend in the development of the manufacturing industry in the future.
Li Dongsheng said that TCL Industry will continue to deepen its cultivation in the smart terminal and consumer electronics industry, and further expand the application scenarios of various traditional consumer electronics products in combination with current artificial intelligence and other technologies.
Secondly, regarding TCL's semiconductor display business, which has always had advantages, Li Dongsheng believes that TCL Huaxing still has huge room for growth in this field. The continuous development of display technology will promote the emergence of more commercial applications, and the strong demand for automotive display and commercial display will be the next breakthrough point.
Finally, for TCL's new energy photovoltaic track, Li Dongsheng hopes that TCL Zhonghuan will actively participate in the global industrial layout and look forward to the global development trend while basing itself on the local market in China.
TCL more than 40 years of history, but also the whole process of Chinese enterprises from small to large, from the inside to the outside, from low to high, for the entrepreneurial spirit, Li Dongsheng also put forward his own views: a thing to do for a year, five years, ten years, thirty years, forty years, to persevere, need to find internal motivation. And this motivation must first of all be that you like it, find a sense of achievement, satisfaction, and pleasure in your career, entrepreneurs must love their business, and secondly, continuous learning and Xi. No one is born an entrepreneur, and no one is born to be able to manage such a large enterprise and a global enterprise, and the ability and knowledge are constantly learned Xi accumulated, so it is very important to continue to learn Xi.
TCL starts with the end in mind, while paying attention to changes in industrial policies and market demand, and continuing to find a force point from itself, which is an important reason to promote its continuous transformation and upgrading. (Harvard Business Review Case Study**.)
Disclaimer: This article is promotional information, does not represent the views of this website, if there is a violation or you believe that the content of the page violates your rights and interests, please contact us, we will deal with it in a timely manner.