Delixi Electric: the concept of corporate change first

Brand strategy. Competition in the 21st century has become a competition between brands. West Germany of the implementation of brand strategy, to a quality brand, products were identified as Chinese well-known trademarks, Chinese brand-name products, received the highest award in the field of Chinese Quality Management - National Quality Management Award.

“ A nation without culture is a sad nation. Similarly, a company without a corporate culture is also a company with no future. The vision determines the realm and the way of thinking determines the way out. Business transformation takes the concept first. ”

From 8 people's Yueqing County Refinement Switching Plant to today's large-scale enterprise group with 70 subsidiaries, 20,000 employees and total assets of more than 8 billion yuan, Delixi is undoubtedly the leader in the ranks of private enterprises. In the shortest 20 years, Delixi created a miracle of economic growth and was known as the " Delixi phenomenon. " Delixi's success comes from the leader's clear goals, continuous innovation and advanced concepts.

It is not accidental that Hu Chengzhong enters the electrical appliance industry. Delixi’s predecessor was the refinement switch factory. In 1984 , when he established the switch factory, he was only a salesman. The sensitivity of his occupation made him realize that he was an opportunity to make electrical products. At the beginning, it was just a single part, but this did not bring more competitive advantages. The switchgear gradually developed into an electrical appliance manufacturer, and the quantity and quality of its products continued to increase. It eventually developed into today's production-oriented industrial electrics, involving high-tech, mineral energy, integrated logistics, transportation, environmental protection projects, renewable resources, PE investment, etc. Industry's huge industrial group. Delixi's establishment, development and growth are all in a clear direction and the development track is clearly visible.

The continuous development of enterprises depends on innovation, so that Delixi emerges from sustainable innovation and strategic innovation. The concept of green, low-carbon and environmental protection makes the development of the company more environmentally friendly and more in line with the interests of the company's own development and the direction of social development. It is the long-term strategy of Delixi to attach importance to human resources, build corporate brand, and mutually beneficial cooperation with business partners.

Dean of the Cheung Kong Graduate School of Economics said in his speech on innovation, “ To truly create disruptive innovation, first of all, it is beyond vision and thinking. The expansion of the thinking space can lead to significant innovation. ” Delixi's success is a good example of this sentence. Behind the innovation and achievement [36.08 -1.07%] is advanced concepts and vision. The shortcomings of the private enterprises after their expansion were subtly overcome by Hu Chengzhong. He did not nepotate and established a modern enterprise system. He also abandoned many “ prizemakers ” of private entrepreneurs, not only focusing on short-term interests, but from the perspective of long-term development of the company, changing “ fortune outlook ” to “ development view ” . Hu Chengzhong integrated the vision and thinking of the leader into the corporate culture, making the concept a core competitiveness of the company.

"Yangtze River": In your opinion, where has the company's core competitiveness been so far? Where is the most central charm? What are the innovations in the company's content and the improvements in its marketing operations?

Hu Chengzhong: Some people say that a nation without culture is a sad nation. Similarly, a company without corporate culture is also a company with no future. The vision determines the realm and the thinking determines the way out. Business transformation takes the concept first. First of all, it must have internal spiritual power to lead the company's technological innovation, management innovation, marketing innovation, and strategic innovation. In my opinion, cultural qualities determine the status of a company and are its core competitiveness. The development of Delixi benefits from a unique corporate culture.

First, use concept culture to enhance the value pursuit. On May 1 , 2001 , Comrade Hu Jintao, then a member of the Standing Committee of the Political Bureau of the CPC Central Committee and Vice President of the State, visited Delixi in person. He asked us, "West Germany" is the name mean? I replied: " Germany is the moral of humanity; force is to create the future; West is to surpass the West. " Comrade Hu Jintao said happily: " Well, the party and the country need a large number of entrepreneurs with social responsibility. " We interpret " Delixi " as " Virtue to the people and create the future " . This philosophy and values ​​are constantly formed in the course of the development of the company.

Focusing on " German newspapers and humanity and creating the future " , Delixi formed a corporate philosophy value system. The values ​​are " Let the quality write out the dignity of the Delixi people " ; the talent concept is " Hai Na Bai Chuan, let Xiao Long take off; Qianzhou competes, Ren Qunying competes first " ; the mission is "to provide customers with superior products and value-added services " ; the vision is " Build a company with great international competitiveness. " Corporate branding, thematic concepts, and value pursuits are fused into a culture that shapes the corporate spirit of “ unity, truth-seeking, innovation, and development ” and is implemented in the implementation of corporate strategies.

Second, the institutional culture regulates corporate behavior. Most private enterprises originate from family businesses. At the beginning of the venture, they were small in size and the whole family was single-minded and they made a lot of worlds. Businesses are big and problems are exposed. I propose to hand over management to professional managers, but it does not mean that all " founding heroes " should be expelled. In my opinion, the key is to establish a modern enterprise system. We emphasize "the system first, the chairman of the second. " Delixi established a number of systems such as personnel management system, labor contract system, and salary system. We also summed up the corporate management rumors: " Your right is to lead the team to make rules scientifically, your power must be quantified in the rules; your rights are to lead the team to strictly enforce the rules, and your power cannot override the rules. " equality before the system, to really put the system as a corporate code of conduct, institutional culture to form a "rule of law" rather than "rule of man" pattern.

The third is the need to create an affinity atmosphere with emotional culture. There is an old Chinese saying that “ people who have the hearts of the people have the world ” . In modern enterprises, the tough, authoritarian and imperative management style is no longer the mainstream. We use the influence and infection of corporate culture to win the hearts of employees.

Finally, we must enhance our influence with brand culture. One is to carefully design the brand image and highlight its personality characteristics. The second is the concept of culture, the brand into a rich ideological connotation. We interpret “ Delixi ” as “ Virtue reported to humanity and strive to create the future ” and integrated this corporate philosophy into the corporate brand, injecting the soul into the brand. The third is to build brand reputation with quality products and first-class service. The fourth is to increase social reputation by actively participating in social welfare activities. Delixi is enthusiastic about social welfare and charitable causes. In recent years, various donations have reached more than 100 million yuan, and the public praise is very good. Social reputation improves the popularity of Delixi and customer loyalty to the product. The fifth is to increase brand influence through participation in major events. Delixi undertook the electrical business applied to the command system of the Jiuquan Satellite Launch Center. This business has a negligible profit and can be very strict, but everyone thinks that this is a battle for honor. The company has signed a responsibility statement at every level, meticulously meticulously tightened and stricter to ensure that it is perfectly safe. Delixi helped God 5, God VI, and God 7 fly to help the moon around the 1st, greatly enhancing the influence of the Delixi brand.

“Yangtze River”: What are the most different things you do compared to your competitors? Compared to pure product innovation, process innovation and business model innovation, where do you think the value of corporate innovation is?

Hu Chengzhong: The company's innovation value is in strategic innovation.

Industrial strategy. According to changes in the internal and external environment, we further clarify the direction of the main attack and carry out appropriate strategic adjustments. This is to consolidate the original industries while upgrading the three core industries of advanced manufacturing, high-tech industries and energy minerals.

Talent Strategy. Human resources are the first resources. We have formulated a series of measures to attract talented people, retain talents, use talented people, cultivate talented people, and develop talented people. We have created a relaxed atmosphere that stimulates innovation, trust and understanding, and a good environment for talented people.

R & D strategy. New product development must occupy a unique model. Delixi Science and Technology Center has been recognized as a national-level technology center by five national ministries and commissions. Four companies have been identified as " high-tech enterprises, " and the total number of patents has reached 301 , and they have won 3 national science and technology progress awards.

Brand strategy. Competition in the 21st century has become a competition between brands. West Germany of the implementation of brand strategy, to a quality brand, products were identified as Chinese well-known trademarks, Chinese brand-name products, received the highest award in the field of Chinese Quality Management - National Quality Management Award.

Co-opetition strategy. As the old saying goes, shopping malls are like battlefields. The rival to business competition is the enemy and it must be defeated. But now this competition model is being replaced by a new concept, which is " co-occurrence. " Enterprises compete and cooperate with each other. Competition is for everyone to grab a piece of cake, and cooperation is to make a big cake together. The Group’s more than 70 companies, suppliers and marketers are all strategic partners. In particular, the joint venture with the world electric giant Schneider has made great development in the development of the company. Today is an era of global integration. Without cooperation, we cannot adapt to the trend of the times.

"Yangtze River": on the path of development of industrial enterprises, which experience between innovation and business success are ready to share??

Hu Chengzhong: Delixi leads innovation with the concept of green development. " Low-carbon, environmental protection and innovation " is the most important concept of the Shanghai Expo. From the preparations for the Expo to the exhibition, we have seen the general trend of urban development, technological development, and industrial development, and we have learned how to change the mode of economic development. Putting the concept of the World Expo into the development strategy, Delixi made structural adjustments in due course, and proposed that while consolidating the original industry, it should upgrade and build the three core industries.

The first is advanced manufacturing. Electric is also the area that Delixi is most familiar with. It has always been Delixi's basic industry. The company is in a leading position in the domestic industry and has strong resources in all aspects. We use advanced management models and advanced technologies to vigorously develop green and energy-saving products and build the three major electric manufacturing bases in Wenzhou, Shanghai and Hangzhou into advanced manufacturing bases with international competitiveness.

The second is the high-tech industry. Shanghai World Expo Park is the world's largest LED demonstration zone. 80% of indoor lighting uses LED green light source, which saves 90% of electricity compared to ordinary incandescent lamps. LED has been recognized by the world as the latest generation of energy-saving model. Delixi has entered the optoelectronic high-tech field and is embarking on the construction of a first-class LED industry research and development and production base. Now that the equipment has been installed, it will soon be ready for production.

The third is energy minerals. Delixi owns a variety of non-ferrous metal mineral resources, including more than 500 million tons of gas coking coal reserves. We enter the coal chemical industry and are implementing a coking project with an annual output of 3.5 million tons to produce clean energy. We are also building waste-to-energy projects in Pinghu and Yueqing Liushi in Jiaxing, turning waste into treasure, and we will beautify the city's human settlement environment.

"Yangtze River": How will you conduct sustainable business development? Will the business model still usher in more changes?

Hu Chengzhong: I think that only by achieving these changes can companies continue to develop.

First of all, from the concept of wealth growth to the concept of development. Most of the companies in China grew up after the reform and opening up. The main purpose of the owners of enterprises investing and setting up factories was to solve the problem of food and clothing, and to get rich. If you have the idea of ​​getting rich, you will easily observe the old stalls. The behavior of the company must be oriented toward short-term interests, and you are reluctant to take the risk of making long-term breakthrough innovations, so that companies will stay at a low level and At a lower level. Enterprises must adhere to a long period of effective innovation, must change from the concept of financial development to the concept of development, the establishment of enterprises as a business, and rejuvenate enterprises to serve the country, they are willing to work hard to re-innovation. Only by enhancing the ideological realm and focusing on the long-term development of the enterprise can we sustain long-term capital investment and knowledge accumulation, experience accumulation, capacity accumulation, social resource accumulation, and achieve long-term sustainable and healthy development.

Second, change the chance of winning to win strategy. In the early stage of entrepreneurial business, private enterprises were actually a special historical period of “ opportunity to win ” . Products were in short supply, and they only had to bury their heads in production. There was no strategic thinking. With the increasingly perfect market system and increasingly fierce competition, strategic issues have become the key to determining the success or failure of enterprises. Today's corporate development depends on strategic wins.

The third is to become the leading technology leader. China has abundant labor resources and low manpower costs. Enterprises generally rely on flexible market mechanisms and extensive operation with high consumption, high pollution, low added value, and low cost to achieve rapid development. Most companies rely on their cost leadership strategy to seek a foothold in market competition. Because of the lack of deep-level competitive resources such as technology, it is impossible to obtain high profits and can only be at the end of the world's manufacturing production chain. Technological advantage is the real advantage. As the prices of energy and raw materials rise, the costs of transportation and human resources continue to increase, and our cost advantage gradually weakens. We must use a strategic vision, effectively change the concept of cost leadership, master core technologies through innovation, and enhance the company's core competitiveness.

Fourth, we need to change competition into competition and cooperation. " Co-opetition " means that companies compete and cooperate with each other and achieve mutual benefits and win-win results. Competition is for everyone to grab a piece of cake while cooperation is to make a big cake together. Excessive competition often leads to both losses. There are many cooperative enterprises under Delixi. The principle of our cooperation is who cooperates with me and who has more interests than me. All the semi-close-up companies that joined Delixi had the other party's control and dispelled the concerns of the other party being eaten. And multinational corporations can actually cooperate and win together. We strategically cooperated with the international electric giant Schneider, each of which holds 50% of the shares and established Delixi Electric Company. The practice of the joint venture company for more than three years has proved that Delixi and Schneider’s “ marriage ” is complete, and the world’s advanced management experience has been fully utilized by Delixi Electric Company, significantly reducing the company’s management costs and increasing profit margins. More than doubled, taxes turned over to Wenzhou City. After the joint venture, the economic strength and technical strength have been greatly enhanced, successfully resisting the impact of the financial crisis. In the past, Schneider was also a rival to Delixi. We also had lawsuits. Nowadays we have become partners in cooperation. From competition to competition, there is only one word change, but the result is a thousand miles away.

In the end, changing the business into a business enterprise. The connotation of business management lies in the management of products, while operating companies include operating teams, assets, and brands, so as to maximize the economic and social benefits. Product management, brand management and capital management are all important. The sustainable development of the company must rely on a solid foundation, that is, product management, the foundation is not solid, and if there are signs of trouble, the company will have a crisis. At the same time, product management must be combined with brand management. Only when the company establishes a good brand image can it accelerate its development. Capital management is the only way for a company to become bigger and stronger, but it must be based on product management. Otherwise, it is a building on the desert. A gust of wind can blow it down. Doing a good job of product management and brand management, capital management can give companies a multiplier effect.