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21st Century Business Herald: Penguin sea

As at the end of 2009, Tencent has cash and cash equivalents of about 11.6953 billion yuan RMB, but the road expansion in M & A, Tencent still seemed "timid."

Until April 12, the day night with Russian Internet company Tencent Digital Sky Technologies Limited (hereinafter referred to as "DST") jointly announced that Tencent will invest about 300 million U.S. dollars DST, the two companies will establish a long-term strategic partnership.

Newspaper reporter learned that about 3 million total investment will be fully paid in cash. After completion of the transaction, DST Tencent will hold approximately 10.26% of the economic rights and DST about 0.51% of the total voting rights and the right to nominate a board observer DST.

This is the largest to date Tencent Foreign M & A is also true of its international strategy Beginning of move. But in reality the other side, compared to traditional industries, with strong regional culture of the Internet industry, its international road has always been struggling.

Prior to the June 5, 2009, in Shenzhen FIYTA building - former headquarters of Tencent, Tencent Mr. Ma on the reporter asked why the development of very few mergers and acquisitions said, "We also want to ah (to do M & A), but Can not find appropriate. "

Day of Tencent Holdings (00700.HK) Hong Kong dollar to close at 91.15. At present the company's share price has reached a high of 175 Hong Kong dollars, second only to Google, Amazon, the world's third Internet company market capitalization.

Integrated business model advantages

Tencent shares, if not the DST, the China Internet industry to the Russian Internet market, deep knowledge, few. Even in the Tencent company, most of the staff for the DST and the limited knowledge of the Russian market.

But Russian Internet market, DST has played an important role. DST was founded in 2005, is a leader in the Russian and Western financial institutions backed private company, is also Russian and Eastern European market is the most influential Internet companies. DST brand covers a large proportion of Russian market, page views, more than 300 million people of potential users.

DST owns Mail.ru and other highly popular portal and social networking sites Forticom Group. In addition, holders of Facebook, and Zynga and other global Internet companies shares.

"This investment will enable us to benefit from the fast-growing Internet market in Russia." Tencent's president, said Liu Zhi Ping. The Senior Manager of Investor Relations Tencent Guo Ye Zhen reporter's written interview, said: "We believe that Russian market, Internet and broadband penetration is relatively low, a great growth potential."

Data from comScore show that the number of Russian Internet users from 2008 to 1749 million, an increase of about 4,500 people so far, the fastest growth of Internet users in Europe countries.

"Tencent in China on the successful business model, DST will effectively help enhance profitability in the Russian market." JP Morgan Internet analyst Dick Wei in an interview to this reporter's analysis, in particular, value-added services in the community, Tencent in explore the Chinese market in the world is a leader in social networking sites.

Tencent 2009 Fourth-quarter results, value-added services to chain community category increased 18.1% to 1.2921 billion yuan, accounting for about one-third of total revenue during the period Tencent.

"In the future Tencent may be advantages in the Chinese market business model, exploring the effective integration of the Russian domestic market." Dick Wei analysis, such as value-added services in the community mode of grafting, and even instant messaging in the field of cross-border interoperability in areas such as have greater business integration space.

"Stake in DST through the line to enter the Russian market Tencent's long-term strategy, with strong local companies and cooperation to explore and seize the market potential, our future will continue to explore this strategic business development opportunities." Ip Kwok Ching said.

Tencent's acquisition logic

In fact, M & A expansion is Tencent recent years, the internal one of the most discussed topics.

Since 2007, Tencent into the period of rapid growth - Revenue growth for three consecutive years over 70%. In 2009, the annual net profit of 5.1556 billion yuan Tencent (755.1 million U.S. dollars), up 85.2%, once again become "the most profitable Internet company."

"Quite a long time in the future, Tencent performance still be growing, but not always maintain such a high rate of increase." Many insiders Tencent exchange with reporters admitted.

Analysys International CEO in Jan when interviewed after that, Tencent completed in almost all Internet distribution business, the "introduction of the past rely on business sector rotation to improve the performance of the model will come to an end, the next point where the profit ? should be the Tencent's strategy for the future. "

In this context, M & A expansion will undoubtedly become Tencent improve performance and stimulate share price, "涓?鍙岄洉" move. However, during the development, Tencent treatment of mergers and acquisitions are more cautious then.

"In instant messaging, social networking sites and other fields, Tencent an independent, leading to the acquisition of a larger gap between the two sides is often very difficult to reach agreement. And in the search engines, e-commerce Tencent weaker areas, there has been some domestic market oligopoly enterprise, it is difficult to find suitable acquisition target. "Tencent an insider analysis, relying Tencent QQ's user base has an extremely viscous, Tencent independent development of new business success rate is relatively high:" This is the objective, but also to the lack of M & QQ the need for expansion. "

But this is not Tencent "prudent acquisitions," the whole story.

"We do not want to do is not the acquisition, but not easy to find the right company." Tencent had a high level when interviewed said, Tencent also visit some enterprises: "We have seen too many companies have some results, far too exaggerated, the high asking price, think very far. We do not want to do that. "

Prior to an interview Mr. Ma also said frankly: "(For M & A) You can only pick really good, or is easier to integrate incoming businesses. This right is not always easy to find businesses."

The 300 million dollar stake in DST behind them and flashed the Tencent's instant messaging service core of the grand cross-border expansion. Reporter noted that Tencent's largest shareholder HIM China, Mail.ru in DST shareholders holding more than 30% enjoyed the right to vote.

Mail.ru is Russia's market share in the second instant messaging companies, about 34% market share, second only to the ICQ number one market share of about 51%.

Prior to market rumors, ICQ in the three final bidders, that there is DST, and Tencent. If DST M & ICQ trip, it will take Russia instant messaging market share of over 80%. Dick Wei analysis: "Tencent not rule out participation by DST bid on ICQ."

Journey abroad of China's Internet

Although Tencent is China's largest Internet company, but the journey overseas, Tencent not be considered a forerunner in the industry.

Back in July 2006, Baidu to enter Japan on a high profile; in March 2007, Baidu formally launched beta version of Japan; in January 2008, Baidu formally branch operations in Japan, entered a substantive step into the Japanese market .

But now, Baidu search engine market in Japan, the expansion is still limited. ComScore data show that in February of this year, 91% of Japan's search market share to Google and Yahoo both occupied.

"The Internet will be through the establishment of overseas branches in the form of direct access to overseas markets business, will face geographical and cultural barriers, so the low probability of success." Analysys International CEO in Jan that, compared to select the localization partners, through cooperation in the form of shares of overseas expansion, it appears relatively safe.

Tencent has also echoed the same view, one of the company's long-term strategy is "Through strategic investments and partnerships in emerging markets with the best local Internet companies to cooperate."

In fact, overseas markets, is not the first time in Tencent. June 2008, Tencent, MIH India on the global network through the company (MIH India Global Internet) cooperation, into the Indian market, Tencent holdings up to 50% minus 1 share - not seek Tencent Holdings. Under the agreement, Tencent will next three years, global investment 7.5 million U.S. dollars in India to provide, including instant messaging and e-commerce, including technical support.

"From the design options, short term, Tencent is more of a financial investor." Dick Wei Analysis: "DST shares within one to two years on the Russian market should Tencent awareness and run-in period, at the operational level of integration should not be very fast. "







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Infomation Wizards And Components

Detailed analysis: teach you to master the table character set and proofreading

Each table has a table character set and a proof rule, it can not be empty. To specify the character set and collation table, CREATE TABLE and ALTER TABLE statement has an optional clause:

CREATE TABLE tbl_name (column_list)

[DEFAULT CHARACTER SET charset_name [COLLATE collation_name]]

ALTER TABLE tbl_name

[DEFAULT CHARACTER SET charset_name] [COLLATE collation_name]

For example:

CREATE TABLE t1 (...)

DEFAULT CHARACTER SET latin1 COLLATE latin1_danish_ci;

Select MySQL in the following way table character set and collation:

* If you specify a CHARACTER SET X and COLLATE Y, then the use of CHARACTER SET X and COLLATE Y.

If specified, do not specify CHARACTER SET X and COLLATE Y, then the use of CHARACTER SET X and CHARACTER SET X the default collation.

* Otherwise, use the server character set and server collation.

If the definition is not specified in the column character set and collation column, then the default table character set and collation. Table character set and collation are MySQL extensions; in standard SQL, no.







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Younger's Quickstep

Scale has passed, completing the vertical structure of the Younger chain, is trying to speed up the linkage between upstream and downstream of the "dance"

In Asia's largest garment production base Younger, one of China's garment industry, "Elephant." The China National Commercial Information Center recently announced the first national brand apparel market ranking, Youngor to more than 10% of the market share of tied for first place comprehensive.

A notable fact is that in the past few years, Younger in the initial fabric, garment manufacturing and trade sales of the three links have dropped more than 500 million yuan respectively, the huge amounts of money, thus starting a large-scale structure vertical industrial chain. Apparel industry analysts generally believe that this is "Younger" shirt for 9 consecutive years won the national market share of the first comprehensive, suits are atop the main reason for 3 consecutive years.

However, substantial benefits in exchange for large-scale production has passed, when overcapacity, the market's balance gradually tilted to the buyer, the real decisive factor is the time, the product needs to be in the right time to enter the market. For the Younger, the upstream and downstream in the use of capital controls, but also had to face the test of ability to control the supply chain.

How to expand the scale at the same time, enhance the responsiveness of the supply chain? Today, the Younger this "elephant" are trying to speed up the linkage between upstream and downstream of the "dance."

River water

Big or do fine? In business management areas, it seems forever. Material from upstream to retail end-all by yourself, so that clothing companies have only a handful in the world. Even the head of Li Rucheng Younger, also admits this "is walking a tightrope, risking a lot."

However, from another point of view, this risk is the choice of Younger had to do.

Like their counterparts in China, fabric production was also a weak link in Younger, because the gap between the quality of a considerable part of the high dependence on imported fabrics, this way, not only the purchase cost of natural high and a long cycle. "Younger fabrics every year about 56 billion procurement, of which 10% rely on imports." Younger logistics manager, said the Department of Chen Zhenglong, a suit part of the time spent on fabric sourcing needs 45 days, or nearly 2 months, the fabric in place, through the production of mining, to the finished product storage, a process that usually takes a month, the whole process about 3 months. "We can say that the procurement part of the smooth or not, to a large extent affect the progress of the whole process."

Controlled by others for not purchasing, select the tracing and the Younger to the upstream water.

October 2001, Younger and Japan, "strain" Huang Li washing plant joint venture, started his business clothes dyeing, washing, design, manufacturing, processing and other fields, declared the construction of the vertical chain project start; in June 2002, Younger spent 100 million U.S. dollars the city broke ground on construction of textile; in September 2003, the Japan-China textile printing and dyeing Co., Ltd. Ningbo Younger production, Younger involved in yarn dyeing, weaving, dyeing, finishing and production business, joint venture partners Nissin is one of Japan's largest textile finishing of textiles and clothing, one of the other joint venture partners Itochu holds a wealth of information and resources to downstream customers; a month later, the Younger should Accessories Industrial City Branch inaugurated in Ningbo industrial city gathered a group of manufacturing companies, for the Younger matching accessories to provide high quality products; in May 2004, Youngor and Itochu of Japan and Hong Kong City International Holdings Co., Ltd. established a joint venture in Ningbo Younger Wool Textile Dyeing and Finishing Co., Ltd., Youngor textile factory located in the city is expected to be completed by the end of equipment installation commissioning, which means, Younger will have its high-end wool dyeing and finishing of textile production base, its upstream industry chain and further extension.

With the power of foreign technology and capital, Younger is gradually upstream control. Youngor clothing company, according to Jordan Chan, at present, Youngor fabric used in the proportion of their production is still small, most of the outside procurement. Yarn-dyed shirts for example, about 30-40% of their production, only about 10 percent wool suit. "But even so, the procurement advantages are already evident." Jordan Chan said, compared with outside procurement, production process ourselves, as necessary, but the links in the fabric, after all, for some time.

Moreover, the Younger by intra-group transactions, successfully reduced the production cost of clothing, save a lot of financial costs, transaction costs and transportation costs. Myself textiles, Younger is not only able to control quality, keep up the market, but also the domestic fabrics market. "Although the fabric to bear the risks, but some of the logistics to reduce intermediate links. Such enterprise's own master, when to use what kind of fabric. Because of the upstream have to grasp, when the production of clothing in the course of something, the upstream can immediately respond. in response to changing market needs, we can strive for faster response. "Jordan Chan in the phrase.

Clenched channels

"The sales channels into their own hands, is the Younger to expand downstream industry chain apparel industry an important part." According to Li Rucheng ideas, today's Younger, not only manufacturers or distribution companies.

Currently, the labor advantage has always been based on the Chinese garment industry has entered a marginal profit. With the increasing circulation and opening up, the influx of international clothing brands have significantly narrow channels. Although the local garment enterprises in China has its own marketing system, marketing system, but in general small-scale level is not high, stability is not enough, control is not strong, the efficiency is low, reflected in the brand power and market expansion tension obviously not enough.

Younger Since 1995, the building sales channels, today, already have the largest marketing network of clothing. Layout from the marketing point of view, the self-Younger nearly 600 stores, nearly 700 franchise stores, and close ranks with the major shopping malls more than 1,100 sales terminals. In sharp contrast with domestic counterparts, in all implementation of the "franchise" and will sell clothing to the professional sales, the Younger in 1997 after it spent 11 million to buy a large number of shops, adhere to marketing channels firmly in their own hands.

This decision gave Younger bring a lot of victories. For example Younger main rival in China Shanshan Group, before and after 1998, gradually dissolved the previously established 35 distribution companies and replace them with brand-new franchise mode. But next time, Shanshangufen revenue and profit began to decline, but a matter of course to get the Firs Youngor give up their room for growth.

Younger's self-built networks, led the sales, the data show that more than 35% of current sales Younger benefit from its own marketing network construction. In addition, the marketing network has become an international fashion brand wants to use the target market. "This not only prevents domestic competitors 'aggressive', but also forced the international garment enterprises to see you. With the channel to control the exchange channel with their weight." The words from Jordan Chan is not difficult to find today's Younger , has its own channel as one of its core competencies.

However, with the risk and reward. Excessive self-built network, made of actual stock Younger increase, the maintenance of the network, building, then engulfs the large number of enterprises profits. Each seasonal backlog in the Younger in the suit store around the country, we should discount prices down to sell shirts. In 2001, the Younger on the accumulated backlog of only a shirt on the billions of dollars lost every year more than 100 million yuan. In the industry view, the sale of resources Youngor large but scattered, not formed between the network communication transparent, as long as this problem is not resolved, companies can not get rid of the extra load.

In 2002, Younger invested 10 million yuan Cooperation with Anderson Consulting, adjusted for the channel to begin restructuring its marketing network. Younger final decision is that by choosing different marketing mix, direct-to-market. In major cities, mainly to self channels, franchise and sales of supplement shopping. Through the existing network of more than 2,000 business integration, closing some small stores with poor profitability and franchises, to the elaboration of 1000-2000 square meters of building large stores, for which Li Rucheng also proposed to "build 500 flagship stores. " In addition, two, three markets, the appropriate dealer to find some co-operation.

Younger's intent is obvious. Hopes to build a large but not "stupid" network system, to avoid risks, to the maximum extent seize the market initiative. The end of 2003, Li Rucheng for the next 5 years, the marketing channel construction, approved a 50 billion yuan in the planning.

Transparent glass

Younger front becomes longer, forming a long vertical chain. But since 2000, with the Chinese clothing market shift from a seller to a buyer's market, the apparel industry as the volatility and cyclical companies, clothing companies are followed by large-scale manufacturing to mass customization, customized changes, Ya Gore breaking the chain faces growing risks.

Under normal circumstances, Younger ordering process is this: start with lower self-stores and franchises come calls orders, orders to production headquarters. However, from the preparation, production to distribution, a process often down nearly 3 months, this time changes in market demand and long sales season may be over. Improve the production and marketing rate, and improve responsiveness to market changes, has become the most prominent faces Youngor problem.

The logistics model has also led to a huge inventory, it also makes Younger overwhelmed. Chenzheng Long said: "production of goods sent to the completion of the company's logistics center, then our distribution, Yun to the Gegepeisong center Huo Quan Guo Pei-fat branch, or through third parties logistics Zhijie sent. In this process, each warehouse or logistics center will have a revolving inventory. That is, if only one goods, may order that a shipment of inventory to generate 3-5 times. "

Since 2002, Younger investment of nearly 100 million yuan, began to build an information platform, aims to complete the group of digital engineering and software design, and subsidiary to 161 logistics management information system construction and start 150 stores Digital Management Project. Younger hope that through this platform, will be scattered throughout the De Xu Qiu, Resource and Inventory data integrated with, the use of information Wangluo open up the apparel supply chain of Meiyihuanjie, then Tuidong 鏁?article supply chain integration.
Jordan Chan said: "This work consists of two parts. A walk down from the logistics of marketing system, to branch management system has to store the POS system. Another walk up to the production of the factory's ERP , to the fabric suppliers. Now we come to the factory at this stage is up, go smooth the upward to the fabric supplier. "He hoped that, after system integration can be done automatically generated replenishment proposals to raise the forecast program accuracy, so that the entire supply chain Youngor through by the positive demand-pull operation.

In the downstream, Younger marketing system has been running for some time. "For the market reaction speed consideration, we need to understand the market first-line product sales every day, so most end shops in the market information system construction is the most direct way." According to Jordan Chan introduced to the system on the terminal every day feedback some information, which is the basic unit shipments, sales, inventory numbers and value. In the headquarters, hand every day to do the latest statistics system data and analyze the formation of statements on the appropriate link to make adjustments. This allows the most accurate forecasts and coordination in the supply chain flexibility and speed to achieve maximum production and market changes in order to achieve the greatest degree of agreement between.

Chenzheng Long cited the following example: "in a transparent glass in order to know how much wine left, or else pouring again. We need to do now is to Younger are all made of transparent glass store, and through our network system to see how many stores where goods or not to continue to supply, for the number of goods. "
Jordan Chan to reporters about the Younger, a new business is being carried out: the city's flagship clothing store, customers can choose fabric through a computer, a suit for their custom. Attendants had customers in the amount of height, waist circumference, the first data entered into the computer, the system will send data to the Younger in the production workshop. Days, the factory will be semi-customized to the customers allowed to try on a suit sent to the store. "If not appropriate, can be modified."







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Total household real estate elite of "Le Home"

Prices continued to rise, home decoration hidden "trick", said the home of real estate and its downstream industries, it seems to be the appraisal of these lingering. Even a real estate sales or home improvement company cut prices please the consumer experience, supervision, price, quality and other topics decoration still affects people's sensibilities. March 25, property in Sina's "Fun Home Innovation Summit", with the name "Le Home" came a new real estate concept, build a happy living in a harmonious atmosphere at the core of a participating real estate giant and home industry the consensus of leading enterprises.

Home Real Estate Qi push "Le Home" Concept

"Bring home the real estate would piggyback say a few words." In recent years, with the real estate business and home business more and more frequent interaction, in both upstream and downstream locations also been mentioned frequently. However, the relationship between real estate and home industry, although close, but in advocating ideas and cultural connotation is different, and very little in common. March 25, in Sina's "Fun Home Innovation Summit", when a kind of happy living as the core of "Le Home" concept was first raised when, SOHO China, Pan Shiyi, Chairman, China Vanke, vice president of Shaw Li, Dongyirisheng Chen Hui, chairman of the real estate sector and household sector and other leading figures of the "happy home" concept undisputed that the trend of the future development of the industry.

Pan Shiyi, the "Fun Home" This understanding of "how many years after the house and then others may live in the house come to your house, your money may soon become other people's money, so the most important things, than the house, more than much more important thing is happiness. " In his view, happy life, happy to enjoy live life the most. "Fun Home" concept advocates, the Chinese president, Zhou Xin livable is that although people living in the house, and the environment is very good large house, but for various reasons, he was not happy, he was not happy that this choice actually living is not an appropriate choice. In his view, for yourself, enjoy the happiness from buying a house in the key.

Household sector as the only representative of the Board Dongyirisheng Chen Hui long that "Fun Home" concept is consistent with current market environment. "Before, what the consumer bought a house I'll pretend to be a house, now our goal is under construction in the existing decorated to customer satisfaction, so that they stay happy."

It is reported that Sina property in the "Le Home" concept, under the guidance also introduced the "Le Home" for the idea of a series of service products. Online sales offices as potential buyers and real estate to achieve the project between the interactive multimedia, WooCall online IM tools to help users browse the same properties for sale real-time interaction with each other; scene home so users can change the room in the blossoms face the music while achieving dream home ... ... Whether or cutting-edge network technology interactive experience, both for the real estate and home industry and consumers a bridge erected.

"Fun Home" environmental needs "Tesco" first

After decades of domestic industry development, flooring, tiles, furniture, cabinets, bathroom and other categories of products are more abundant, home improvement field have also been a new concept emerged: sub-module home Matt actually create the package style decoration, Boloni's fourth-generation home improvement, industry peak of Blue Diamond Project, etc., but still occur frequently assemble finished furniture, decoration of consumers taking a closer look after the house well satisfied with the situation. Therefore, Chen Hui seems, bought a house over on the "Le Home" life well before "Tesco" link, that is, first purchase a house suitable for the use of household products.

He described his personal experience: too old to buy their own houses, but this thing had a headache for him too. "On the one hand can not buy the right house, the other is to buy a house, the decoration ideas from here and its not the same as the original, did not meet the imagination of the original results are not pleasant for comfort after the end admitted." According to Chen Hui introduction, there are many customers the drawing reflects the designers and the final result is not the same as the actual decoration, the degree to quite distressed companies.

However, it Dongyirisheng have found solutions. "The initial experience in the construction of museum buildings, such as trade in building materials near the Italian German legalism, which has a model, the materials, design concepts of the show. Later still feel less than perfect, after all floor space is limited, can not show all the buildings materials and model, which is why it started two years experiential marketing, development and design software. "eyes in the Chen Hui, this experiential marketing is a win-win, both can see their customers to buy the building materials is what After effectiveness, or decoration, but also to secure more orders for the company, effective way to avoid disputes arising in the decoration.

"Fun Home" to promote industrial upgrading

This year, the government work report to the housing problem in the first place the "big people" category, and sketched out "Let the people live and work" housing vision. Right now, to create a harmonious atmosphere to create a happy place to live "musical home" concept put forward, not only to meet the national demand for calls and the social environment, with "Le Home" is closely related to real estate and home industry, is an industry upgrade. Sina Luo Jun, general manager of real estate business from the "spectator" point of view frankly, "Le Home" will the real estate from the traditional "developer" status to "people's livelihood and property," the domestic industry from substandard decoration materials hidden transmission of the disease the vortex pull out of bath for each consumer to create good conditions for a happy life.

"This is an important stage in the development of Chinese real estate, those who want to buy a house is still waiting to see the atmosphere, 'On the room at the mere mention' the state is quite serious, and now 'happy home' concept put forward is expected to improve these conditions, changing buy a house concept. "China Real Estate and Housing Research Zhang Yuan, vice president of client that is conducive to relaxed environment for the development of real estate will soon appear, people will buy a house as within our capabilities, to rent as office facilities.

China Building Decoration Association of Home Decoration Committee Secretary-General Ren-as "Le Home Innovation Summit," the guests, said the launch of "Le Home" living conditions have become more sophisticated. "Home market has changed from 'what house to live, what to buy household products' shift 'what kind of products and fitting what grade can enjoy home life', actually home, Meikailong, Jimei home store brands are also have to create a garden-style shopping environment, there is now 'happy home' concept can lead ordinary people just housing consumption, driving home products company launched a more extensive market prosperity. "







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The autonomy to users

ERP development in China so far, almost in trouble: the high failure rate, the endless project development will enable manufacturers to physically and mentally exhausted, on the mere mention of the user, how to solve?

ERP development in China so far, almost in trouble: the high failure rate, never-ending project development, making firms physically and mentally exhausted; and expensive acquisition costs, long implementation cycle, complex and cumbersome process of learning, rigid fixation of the work flow has allows customers to "talk about ERP phobia", and even become a "frightened."

Software platform-based, component-based, modular dilemma is undoubtedly a good way to release is a major trend in ERP development, but these concepts do not know how many years crying, never been any substantive breakthroughs and progress in recent years the ERP market is apathetic.

September 6, the Hai Boke Information Co., Ltd. to "meet the third ERP wave" as the theme, held a news conference in Beijing, proudly known as "the world's first ERP (enterprise resource planning) independent platform" a new generation of Enterprise Information Product MyERP. Deputy editor of this newspaper the first time and the setting Sun Haibo Ke Shen Akashi Information Co., Ltd. CEO dialogue on how to bail out ERP vendors, ERP market forecast change in the situation, for ERP vendors continue to development.

Difficulties faced by the four ERP

Sun set: Some say the industry has recently circulated, it was said that the Chinese software is dead, it was said that this year is the Year of Disaster software. I and many software companies in exchange friends, they all talked about and business is very difficult to earn money. ERP vendors not only the price continued to decline and gradually diluted the profit was shouting like to sell cabbages sold as ERP. Journal of the total, as the industry experts who will comment on this?

Hong Shen: China is indeed a very difficult road to ERP, companies suffer, users suffer. High failure rate, high acquisition costs, long implementation cycle, complex and cumbersome process of learning, rigid fixation of the work flow so all the ills of China's ERP. I think the issue of China's ERP market is mainly concentrated in four areas; First of all, the evolving business and software can not resolve the contradiction between the relative curing; Second, ERP implementation process, as people, processes, technology and other reasons which cause serious hollowing phenomenon, advanced management concepts can not be reflected in the efficiency of every enterprise; Third, the process of ERP customers, business participation is very low, not really for their own ERP system, "the decisions"; Fourth, ERP on-line since the late maintenance process variables result in application of the high uncertainty. The existence of these contradictions and increasingly intensified, making the Chinese ERP caught four "unfinished project" situation.

Fortunately, the majority of Brocade and take a different path ERP vendors, we do two things very beautiful. The first is that after 1998 years ago, we all swarmed enthusiastically participated in the ERP, we have a low profile cut into the supply chain management. Now we are the first brand of domestic logistics sector, has become an overseas giant's archrival. According to statistics of China Association of Purchasing, logistics supply chain management in Brocade accounted for 20% of the market, our customers, including China Petroleum, Bright Dairy, Baisha tobacco, large enterprises in China petrochemical lubricants, etc. for our products are very satisfied.

The second is that we cut into the ERP market in time, not dove into the state-owned enterprises which, instead choose a good basis of information foreign customers, especially Japanese companies. The reason we do this because: First, the localization of Japanese companies is very stress, with the Japanese enterprises to expand business in China, their demand is very strong localization of ERP; Second, Japanese companies are unwilling to accept the Western concept of ERP, They also want to maintain their own ERP features and unique management ideas, and Japanese enterprises in the manufacturing manager is often true of ERP experts, their strong technical strength, we need only do according to their technology or design ideas available, this combination gives us a very high success rate of projects done.

Sun set: From your description, we understand that many of the early Brocade ERP customization projects should be considered. Now many manufacturers of "customization" are terrified, because in this mode, the project development are endless, sales balance due is usually forgotten, and some even 30% of the projects have no way to recover the balance due to, in this regard Brocade is how to do it?

Shen Kang: I think the "custom development" is in line with customer demand. Previous ERP practice is client to go along with the software product standardization process, once the company's business processes do not meet product design ideas, consultants, requires companies to change their business processes to adapt products and enterprises in China, where this approach does not work . First, the Chinese enterprises, especially SMEs, the owner, has its own unique way of doing business, the business way to stand out inside the ERP system in order to maintain firm-specific characteristics and the competitiveness of enterprises If all the processes are standardized, causing thousands of people the way side, then the company's unique business philosophy, there is no, which is fatal for the business.

Second, some so-called "senior consultant" is not to give customers the improvement of management, ERP is an enterprise real owner. We see some consulting firm to recruit students through the six months after the training, they braved the title of senior consultant to customers earn 1,000 U.S. dollars a day there, consulting fees, they have not even been to shop and telling customers about management thinking and process re-engineering, ERP is not so successful.

Therefore, enterprises must satisfy customers "custom development" requirements, to ensure that customers can implement ERP successfully, you need to make a fool the best product, easy to learn, but also have the flexibility and scalability can more easily satisfy customer demand, to what and what customers can do themselves, and this is our ERP platform "MyERP" R & D mind and the ultimate goal.

Industry usher in the third wave

Sun set: we have seen, ERP software platform of a trend, including UF, Kingdee, SAP, etc., have announced major ERP vendors have developed their own software platform; but we also understand that each vendor design and software architecture are different, Brocade ERP software platform means that?

Shen Kang: Brocade "MyERP" The most outstanding feature is that platform, it is the Brocade 10 years to implement ERP projects of more than 1,000 business model derives. Brocade own three-tier ERP system. The first is the service layer to support DB2, Oracle, SQL Server and other mainstream databases. As the platform on the extraction of business data abstraction, making cross-platform database becomes relatively simple. The second is the middle layer, based on independent research and development of BK Brocade independent middleware technologies that can operate in a variety of operating systems, various business rules can be processed in this, and can achieve load balancing, free configuration. In the user layer and the middle layer we use XML for data exchange and use of the modified front-end interface and back-end processing procedures is accomplished through XML parsing. While the user program can be developed through the second plug in the platform, without having to modify the original program or the middle layer of packaging in the middle layer. The third is the user layer, as needed using fat client or thin client in the form of deployment, use of the system provides a rich graphical configuration tool, users can request free configuration and design.

Brocade ERP "independent platform" consists of three levels of meaning: first, business users can configure their own business needs and business process management module, and can change according to business and market adjustment at any time, corporate users of the ERP system, all adjustment and development can be completed independently without any technical support; Second, ERP channel providers can be based on independent platform, completely divorced from the software vendor environment, with local businesses and industry characteristics of the region, to provide fully independent channels are manufacturers their own value-added services; Third, enterprise information technology management consultancy and Zhuanjiawuxu Renhe IT technical guidance, fully capable of ERP Zizhupingtai on Dajiantixian management consulting Sixiang of Gexing of enterprise ERP 绯荤粺, Jiang Di enterprise 瀹炴柦 ERP of Fengxian. Our ERP implementation is "99 +1", that is, in our business platform to meet 99% of the basic processes required, the remaining 1% is independent of individual recycling companies.

Sun set: In fact, the concept of ERP platform, has called out two or three years there has been no breakthrough. Having heard the general description Shen, feeling "MyERP" has a more molded products, which seems to indicate "ERP Platform" of the substantive phase. If so, do you think it will bring to the current ERP market, what impact?

Shen Kang: Throughout the history of the development of domestic ERP has on the whole has experienced two waves: the first wave began in the early 80s of last century, with SAP ERP software Corps, led by foreign Fortune 500 companies carrying the standardization process, the ERP introduced into China, setting off a ERP market, "Western Wind"; then, the domestic group of software vendors to catch up on foreign ERP software ideas and technology to absorb and follow, forming a domestic ERP software camp, but also set off the development of the domestic ERP second wave. Today, Brocade "ERP platform independent" Innovation in a completely open, can shape the growth-oriented channel partners, management consultants and business users in the ERP distribution, implementation, application and maintenance of totally ERP system changed the traditional conceptual model and architecture to achieve low-cost, fast implementation, easy to maintain, can grow to meet the information needs of SMEs in China. I think that this product forms the fundamental change would trigger a new ERP application requirements, will lead the third wave of ERP in China.

Proposed "ERP third wave" is not our Brocade insolent, but not our concept of the hype. First, we see that, because UF U8, Kingdee K / 3 ERP products such iconic train hundreds of thousands of customers, the completion of the cultivation of ERP market, ERP is also open the customer demand for the arrival of the third wave foundation. Second, we believe that Brocade "Zizhu platform" ERP product launch, will lead to a lot of ERP 鍘傚晢's after another to follow inevitably lead to ERP product forms, marketing model, the market structure and so a series of changes and breakthroughs, ERP market will be a In recent years, the boring of the sweep gas, the formation of the third wave.

SMEs are the main users

Sun set: As the General said Shen, ERP software platform will bring ERP of product forms, marketing models, such as changes in market structure, ERP vendors will begin a new round of competition in such a situation, how positioning can Brocade invincible?

Shen Kang: Brocade ERP target customers will be targeted at SMEs. We define small and medium enterprises output value 50 million yuan to 1 billion yuan between the size of the project in the 100,000 yuan to 30 million a year business. About 10 million SMEs in China, I expect the next 5 years in the SME ERP market users in the sales volume will reach 50 million units, according to the average price at 67 yuan terms, this market is very impressive.

Brocade to win in the new round of competition, the first to rely on innovative products, is "platform independent" of the ERP product. Currently on the market, domestic and international well-known ERP enterprise cohabitation similar products, but really to meet the demand for information technology products for SMEs are not many. Almost all of the ERP products are based on the traditional business management and information technology services, business model, and it is this rigid thinking 鍜?application mode, leading to the many SMEs in information technology into "over and over is the project" Ban pause deadlock . But the real products to meet the needs of SMEs should be a higher degree of product maturity, with easier to train up more simple, less costly, more streamlined service products.

Brocade ERP basic idea is "to make complicated things simple, all rights return to the user." Based on the self-platform enterprise ERP system, business users can configure their own business needs and business process management module, the degree of difficulty will not greater than the Excel table to learn; ERP manufacturers can channel to enterprise customers based on autonomous platforms provide complete their own value-added services; In addition, the enterprise information management consulting agencies and experts will have the opportunity to make full use of their management experience easily into ERP solutions providers and service providers.

Second, innovation in business models. For instance, we will launch "an individual member agency" system, in our agent architecture, as much as possible to get rid of the middle layer, to maximize customer's benefits. The so-called "individual member agency" can be part-time staff of enterprises, it can be a consultant, as long as through our training and get the appropriate certification, you can join our "individual members of Club". I hope that China's hundred counties, each county or even every town has an individual member of our agency. I am confident this strategy, confidence in our products, therefore, I believe that there are many like a shark smells blood, as do our agents crossed.

Sun set: I remember the relevant report, in the Jiangsu and Zhejiang coastal area, over 100 million yuan on revenue of private enterprise on ERP ratio has reached 30-40%, that is in a state of relative saturation; and now a lot of export business SMEs in the United States, Europe set the barriers and into suspension or semi-shutdown state, the demand seems to shrink, Brocade how to deal with these problems?

Shen Kang: The better products to expand the market still adhere to our strategy. We believe that the vast SMB market, I also have a discovery, recently I went to Wuxi, Zhangjiagang and other places and found that there are many hundreds of billion of business revenues are not on the ERP, a business owner told me that because of "fear of the ERP" On the one hand it is worried that spent the money but not achieve the desired results, on the other hand are afraid because of the ERP, the core leaked trade secrets.

This made me realize that the management of large enterprises is a strategic type, they need is a strong organization system to protect the effective implementation of the strategy, so it's ERP needs and international standards, requires standardized processes; the majority of SME management is tactical, they must be in the jaws of a market niche in the competition for living space, they need the quick attack and flexible adaptability. Therefore, the SMEs the most important feature of information is to satisfy the constant 'change'.

ERP vendors are now in trouble, not because demand is shrinking, but because our product is not a true customer satisfaction products. I believe that once a good product launch, customer, or is willing to pay for. ERP products are bigger and we want cheaper, so that our users like to use the same easy to use and fool the camera, so that agents can be easy to make money. I believe that this market is needed.

Sun set: indeed, ERP vendors are not difficult to do business because there is no demand, but there is a demand, but the client is no longer as obedient manufacturers will, all the rhetoric before the ERP vendors, more and more is not working for users a growing number of customers requiring manufacturers to follow their lead. In such a situation, do you think Brocade challenge what is it?

Shen Kang: Brocade challenge is not the customer more "harsh", not the pressure of competition, but our own. With the platform of Brocade products in, with the innovative business model, with clear strategic direction for Yi Hou, really face the test of our ability to execute, such as our training system how to build our channel structure to change Our "individual member agency" system to control risks during the execution so.

In fact, China's ERP companies now take a calm look for and find their own characteristics and advantages, because the Chinese ERP market, not a take-all. According to the Chinese market to judge me, ultimately left behind several ERP vendors do not, I hope we look longer term, not to price competition. All aspects of corporate demand, we have to re-position, grasp the business opportunities. Brocade is positioned to meet the needs of business growth and expansion, is like they are cutting, and we are followed by farming.

Sun set: Brocade what the next plan will be?

Shen Kang: We have successfully introduced this year, 20 million yuan of overseas capital, and we have plans in the overseas market. In addition, keep MyERP own platform, we will bring more shocked the industry: financial software such as 64-bit, low-cost business intelligence platform independent products will be available, in addition we will also introduce domestic first J2EE and NET-based technology combined Himalaya (Himalaya) to open architecture platform for growth. I believe this will bring surprises to the customer.

Character image

Lunch, Junqi and ERP

Shen Kang is a smart Shanghai, but he's talkative but very few people in Shanghai. Reporters traveling with him from West Third Ring Road on the way to the Kunlun Hotel, Shen general practitioners from the early experience of speaking of eating lunch, talking about climbing from under the flag game industry from the ERP ambitious about Brocade, laughing , his humor.

Alleged, Shen Kang favorite meal is a few dollars working lunch. Brocade growth of nearly 10 years, 4,000 days, he ate the lunch box no less than 7000. Journal of the total in the interpretation of Brocade's product development carried out on the image with a lunch box metaphor. Lunch in addition to convenience, there are standardized, modular features, meals can choose according to their own preferences and flexible variety of meat dishes, vegetarian dishes to mix and match, the enterprise software market, there are so vastly different character requirements; lunch the other major attractive place is cheap, consistent with the public appetite for consumption, meet the needs of Chinese-style fast food, "Brocade's software in China was born in China's development, but also the same as the lunch line with China's business applications demand and price needs." Obviously, Shen Kang will now be "lunch box theory" is a live transplant to the new ERP Brocade own platform.

Journal of the total spare time greatest hobby is Junqi, especially Siguotaizhan, in his spare time, he had a habit of drawing people to catch on Sisha. Under the four countries, it is necessary to take into account the fight against opponents, but also need to take into account the cooperation with rivals, the test is careful observation and a keen judge, but also need determination and courage, these are competitive in the market have in common. Journal of the total time in the choice of partner is very special, he did not choose, and he matched the person in order to achieve strong combination, but to find strength and weakness of people like to make partner, when partners will soon be destroyed, he alone against the two a strong competitor is the most straightforward thing. This can see Shen Kang, belligerent, on the other hand we can see his alternative strategy. Take ERP market, what he called "people mowing, Brocade farming."






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