The cold winter of industrial tablet PC manufacturing, the transformation of traditional industries (2)

Jan 19, 2016

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3. Diversified layout

Diversified layout is an important means to deal with market instability. In the current cold winter of manufacturing, diversifying the market, diversifying products, and diversifying the industrial chain can make enterprises more stable in the market. All eggs in one basket".



In traditional industries, there are some cases of achieving performance growth by extending the industrial chain. For example, Baoshan Iron and Steel Co., Ltd. (“Baosteel Co., Ltd.”) in the steel industry is the largest and most modern steel conglomerate in China. The current predicament of the steel industry is overcapacity, high cost and low efficiency. In order to solve this dilemma, Baosteel has built its own procurement e-commerce platform, which can provide online information, capital, and logistics "three-stream" whole-process services. 10 million tons. "Baosteel hopes to establish a system above the system, standing at the height of the industry, to open up the boundaries between upstream suppliers and downstream user systems. When the steel industry is in the overall downturn, Baosteel's diversified layout is undoubtedly an effective transformation. method.



The above experience of Baosteel has the shadow of vertical integration, which can be said to be a diversified layout of the industrial chain. In addition to vertical integration, diversified layout can also be carried out in the direction of horizontal integration, or even direct cross-border layout of new industries.



For example, in the electronics industry, according to The Wall Street Journal, Foxconn, the world's largest electronics manufacturer, will cooperate with American medical equipment manufacturers to enter the Chinese medical market. The profit margin of medical equipment foundry business is as high as 23%-25%, much higher than the 4%-7% of consumer electronics products. Driven by China's rapidly growing health demand, Foxconn's health business revenue in 2020 is expected to increase from US$20 million (approximately RMB 120 million) in 2014 to US$200 million (approximately RMB 1.2 billion). In this way, Foxconn is equivalent to opening up an emerging market alone.



In addition to manufacturing enterprises, manufacturing equipment channel providers are also faced with diversified choices. Agents of one product or multiple products. The profit margin of each product brand and the market stability formed by the proportion of each brand have become a must for many managers. Facing and thinking about problems.



4. Management innovation

Management innovation is an important aspect of increasing production and efficiency of enterprises. Many long-lasting companies in the world have achieved continuous breakthrough growth in performance through management innovation, and have formed many management models that are worth learning from other companies. The poor performance of many companies, in addition to the sluggish external market, is due to excessive internal friction and excessive management costs. Through management innovation, reducing unnecessary management costs and saving production resources, performance improvement can often be achieved within a certain period of time.



In order to achieve the growth of performance in the manufacturing industry, in addition to technological innovation, a more important aspect is to carry out management innovation. In 2015, some companies achieved good results in performance through management innovation.



Haier's "Innovation Platform" is a good attempt at management innovation. Haier is developing itself into an entrepreneurial platform serving hundreds of "small and micro enterprises". In the process, Haier cut its full-time workforce from more than 80,000 to just 60,000, including 10,000 mid-level workers.



From 2005 to 2015, Haier achieved performance growth for ten consecutive years, and made great contributions to management innovation. Going deep into Haier's manufacturing system, the introduction of a large number of intelligent and automated equipment, the informatization interconnection of supply chain, manufacturing, logistics and distribution systems, and the construction of interactive platforms with users, R&D resources, and supplier resources are all cost-intensive. It will be the foundation to support Haier's future intelligent manufacturing.



The transformation of the industrial tablet computer industry generally starts in these four aspects, but for a single enterprise, the problems faced by managers will be more specific. In 2015, the manufacturing industry encountered a cold winter. In 2016, can the manufacturing industry break the ice and how long will the cold winter in the manufacturing industry last? Are all walks of life in manufacturing ready for winter?

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