At the beginning of 2024, all signs of the software industry are pointing to a better state, which makes Miao Feng particularly energetic. As the founder and CEO of Shangyue Technology, he has always stood on the cusp of the digital procurement track for six years, and has felt the ups and downs along the way.
In the data just released by the Ministry of Industry and Information Technology, in 2023, the domestic software business revenue will exceed 12 trillion yuan, maintaining rapid growth. It is in this context that in order to achieve better development, Shangyue has gone through the process of starting from scratch and from existence to refinement, and has completed the transformation again and again in continuous evolution. Whether it is products, services, capabilities, customers, operations, and performance, compared with the early days of its establishment, there has been a qualitative leap.
It is said that everything is changeable, and its true color remains the same. For Miao Feng and Shangyue led by him, this is the original intention of "devoting itself to promoting the digitalization and intelligent popularization of procurement of large and medium-sized enterprises in China" has never changed!
Advocate the "return to value" of software
The more difficult the moment, the more we must return to the origin and value, and the more we must focus on the main business and build the core competitiveness.
Different from the overall growth of the industry, in 2023, the domestic enterprise-level software market will experience the most difficult moment of opening high and going low, and the revenue of many service providers will shrink significantly. In order to pursue business figures, everyone wantonly expands the boundaries of products. This has led to the intensification of involution in the industry, and the market is full of all kinds of disorderly competition. And the service provider has also lost its professionalism and lost its main position.
In fact, in the era of uncertainty and uncertainty, software service providers must be customer-centric, pursue long-term value, and shift from opportunity growth to value growth. As Miao Feng said,Now is the best time for the value of China's software industry to return. Every software company should focus on its core business, strengthen its products and services, and bring the best value to customers, so that every enterprise can survive for a long time and China's software industry can develop benignly. The pursuit of long-term value is the pursuit of customer value, which is the path of returning to the long-term development of the enterprise. Otherwise, there can be no more sustained growth.
In order to better create customer value, from 2019 to the present, Shangyue has released new products all the way, and has continuously upgraded and iterated all the way in combination with customer needs and scenarios, whether it is procurement, Juxian Pavilion open platform, Qianjige PaaS platform or intelligent procurement 10-4.0, they launched a major version every year, and quickly completed the full-link layout of enterprise procurement of digital products. Last year, led by depth and intelligence, they released a new foundation for the digital transformation of enterprise procurement - Shangyue intelligent procurement platform R5, completing a comprehensive upgrade of "product + service".
R5 deeply integrates the world's leading intelligent technologies, from the cloud native capability layer to PaaS, SaaS, and BaaS, and it covers the whole scenario of enterprise procurement digitalization with a complete product architecture. This not only marks another breakthrough in Shangyue's product strength, but also the most direct embodiment of their deep cultivation in the field and professionalism.
In the face of the comprehensive baptism of large models and generative AI for enterprise-level services, Shangyue has chosen the strategy of actively embracing and exploring deeply, but applying it cautiously. They admit that they are not the creators of new technologies, and they cannot make repeated trial and error at the expense of customer experience, but this does not prevent them from practicing their internal skills in private, and doing a good job in technical reserves and model training. Once the timing is ripe, it can be quickly delivered to the customer.
Therefore, on the basis of the general large model, they built the Shangyue Qianji large model MaaS. The model integrates the PaaS platform, DpaaS platform, AI PaaS platform and poly-standard IpaaS platform, realizing the convergence of all capabilities from low ** to data application, model center, to API orchestration and integration connection. At the same time, they take improving interaction, auxiliary applications, process applications, and intelligent decision-making as the main scenarios, and conduct special training on the model, so that it can accurately meet the actual demands of enterprises. In addition, Shangyue also took the lead in the research and construction of the technology ecology of enterprise procurement large models, and worked with partners to go deep and build AI innovative applications.
In addition to products and technologies, in terms of delivery methods, Shangyue is also more determined to parallel the subscription model of private cloud services and public clouds. In this way, it can be completely from the perspective of customer needs, so that the personalization and industrialization of procurement business scenarios can be responded to in a timely manner, so as to quickly realize customer value.
Miao Feng said that Shangyue has consistently adhered to the product principle of "intelligent procurement uses Shangyue". Through Qianjige, they make the application more powerful; Through proprietary cloud deployment, they go deep into industries and scenarios; Through SaaS services, they can quickly migrate their procurement business to the cloud. Through Juxian Pavilion, they connect commodities and everything; Through light consulting, they help customers avoid detours in the digital construction of procurement; Through comprehensive information and innovation adaptation, they promote the rapid implementation of localized substitution.
It is to stick to the main business and focus on specialized products for a long time, so that Shangyue can still maintain medium and high-speed growth in 2023, when the industry bottoms out! He said.
Love that goes both ways is more meaningful
After a three-year survival period, Shangyue has been able to increase about 100 new customers every year in the past two years. With the continuous fermentation of word of mouth, they have achieved a "double rise" in the quality and quantity of contracts.
In terms of new customers, in 2023, Shangyue has signed contracts with China Sinochem, Century Jinyuan, Hikvision, China Overseas Property, Liugong Group, Yuntianhua, Mingtai Aluminum, Jiangxi Water, Qingdao Metro, Zhongxun Agricultural Science and other enterprises, and continues to deepen its cultivation in eight major fields such as manufacturing, property industry, high-tech industry, and public utilities, and has accumulated many best practices.
As a typical state-owned energy enterprise, Shaanxi Coal Materials Group aims to help its parent company, Shaanxi Coal Chemical Group, become stronger, better and bigger during the "14th Five-Year Plan" periodThey took the coal sector as the entry point and joined hands with Shangyue to jointly build materials, realized the full coverage of the company's procurement needs, and completed the localization of the original SAP SRM.
In this project, Shaanxi Coal Materials Group not only built a unified workbench for material business services, realized the goal of "one set of codes" for the application of all categories including 99 categories, more than 6,000 sub-categories and more than 50 million materials, but also created a standardized, efficient and transparent procurement and marketing business system to realize the integration of procurement and marketing.
As one of the leaders involved in the project said, in those days of two-way running, the two sides made a hole to overcome the difficulties together, and promoted the group's procurement business to complete a major change with scenario innovation, thus achieving value creation.
In terms of old customers, with the continuous evolution of product capabilities, Shangyue continues to provide services for Sany Heavy Industry, Shanghai Electric, Tsingtao Beer, Wanwuyun, Shell, Great Wall Motor, China FAW, Yadea, Shandong Port and other enterprises, and has been fully recognized while promoting the digital transformation of customer procurement. Last year, the retention rate of Shangyue's old customers was as high as 97%, and they jointly contributed more than 60% of revenue.
As a state-owned super-large automobile enterprise, FAW Group has cooperated with Shangyue since 2019, and based on the intelligent procurement platform, the two sides have transformed in scenarios such as procurement, procurement collaboration, intelligent comparison, automatic order transfer, and automatic reconciliation, realizing the digital procurement of FAW Group's office supplies, labor protection auxiliary materials, equipment spare parts and other categories. At the same time, the two sides vigorously promoted the docking of the procurement digital platform with a number of e-commerce platforms such as Deli, JD.com, Suning, etc., and realized the interconnection between the upstream and downstream of the procurement business at the group level.
Thanks to good trust and recognition,In 2022, the two sides will go one step further and take FAW Hongqi as the benchmark to promote the system to Volkswagen, Toyota, Jiefang, Besturn and other business sectors, so as to build a unified digital procurement chain system of the group and achieve "consistent platform, consistent management, consistent products, and consistent products".
Over the past few years, the continuous cooperation has allowed FAW Group and Shangyue to establish a deep foundation for cooperation. Last year, even under the influence of many unfavorable factors from the outside world, they once again deepened their cooperation. Combined with the overall needs of FAW Group's procurement business, with the goal of reducing costs and increasing efficiency and improving procurement efficiency, the two sides completed the unified settlement of some of their own merchants in procurement, and also promoted the docking of more than 10 subsidiaries and tenants with e-commerce.
It is said that the love of two-way running is more meaningful, and only if you have experienced it in depth like Shang Yue, you can know how to cherish it.
Seize the opportunity period of "reducing costs and increasing efficiency".
Through the economic cycle, enterprises have lived a tight life, and reducing costs and increasing efficiency has become the concerted action of any enterprise to practice fine management. Of course, this is also an inevitable requirement to enhance core competitiveness and vitality.
Not long ago, Miao Feng visited more than 10 customers, and he found that the IT budget of most enterprises has generally decreased, and how to rationally use limited resources has become a problem that enterprises are thinking about. It is gratifyingIn the current environment, every enterprise has uncertainty about the growth of revenue, but reducing costs is what every enterprise must do, and the procurement digital platform has become the core and most frequently purchased product after ERP. Enterprises will use the digital transformation of procurement to better reduce costs and increase efficiency.
This makes Shangyue naturally in a huge market opportunity. This is a kind of luck, the company has a development opportunity, but at the same time, the industry competition is still fierce, and they have to withstand various challenges in order to catch this "splashing wealth".
In this situation, on the one hand, Shangyue has the responsibility to further purify the market and help all parties gradually clarify their understanding of procurement digitalization; On the other hand, they need to improve their product and service capabilities, deepen their understanding of customer procurement business, procurement scenarios and industrial applications, so as to seize market opportunities.
At present, Shangyue seems to be engaged in a war of liberation in the procurement digital market. From Yan'an to Xibaipo, they had just crossed the Yellow River. With the continuous increase of market concentration, they will clarify their position in the industry, continue to unswervingly follow the professional-level product route, and focus on reducing costs and increasing efficiency driven by the digital transformation of procurement, so as to create value for customers.
At the same time, as a start-up company, Shangyue will also seek benefits from operation and management by building a healthy financial model; By building a future-oriented talent system, we will grasp the dividends of engineers; At the marketing level, they will launch the "A100 Initiative", which is to develop 100 top customers in each province and create best practices in various industries.
Since 2021, Shangyue has determined the strategy of moving from capital-driven to operation-management-driven, and until now, it has maintained that the scale of its personnel has not expanded, but its performance has increased by as much as 3 times. With the continuous improvement of human efficiency, we will uphold customer value first.
1. Financial model.
Second, the business model of the third business idea, not blindly pessimistic, not too optimistic, for the future of the real market, large-scale development of the full preparation. Miao Feng said.
The deeper and farther it goes
Depth is a persistent and in-depth pursuit, and it is an indispensable quality on the way to excellence.
Shangyue is well aware that only through in-depth research and unremitting efforts can we make breakthroughs in the field of procurement digitalization, better provide valuable products and services, and lead the development of the industry. Therefore, they consistently run on the track, and strive to become a company with professional depth, respect, and core competitiveness; They practice long-termism and hope to grow together with every customer and share value; They have always maintained their love and pursuit of professionalism, and strive to develop into a high-quality technology enterprise to create more possibilities for the industry.
Of course, in the face of such a complex procurement business, how to help customers get started quickly and apply in depth, and release the pioneering role of procurement digital construction for the overall transformation and upgrading of enterprises, still needs to be explored by Shangyue.
Miao Feng said that he hopes to one day30% of China's large and medium-sized enterprises run on the Shangyue intelligent procurement platform, which helps each customer to continuously reduce procurement costs every year, thereby driving Shangyue to become a leading manufacturer in the field of intelligent procurement
We have no doubt about the arrival of this day, and the practice of "deeper and farther" business Yue, so that this day will come soon!