After another 20 years, we meet again
On the Spring Festival Gala in 1998, singer Faye Wong and her buddy Na Ying sang a song called "Meet 98". The song quickly sang north and south, and throughout the whole year thereafter, the whole Chinese dance drew near to the demon Among the melodies.
In 1998, on the 20th anniversary of the reform and opening up, Wu Xiaobo shocked the theme of this year in his "Thirty Years of Insurgency," when he was appointed Premier Zhu Rongji at the time of the two-year press conference. Four words: "Whether in front of the mine array or the abyss, I will be indomitable, hesitate, spared no efforts, after death. & rdquo;
Premier Zhu Rongji's position profoundly revealed the complex and difficult year of the reform. After Deng's southern tour for six years, the rapidly developing market economy had a sharp collision with the old system of economic governance. In that year, however, Penning was helpless Leave, Chu Shijian be jailed.
In such a drastic change, what kind of strategies are there for Chinese entrepreneurs and what are their dreams? After thinking these 20-year-olds are still struggling to reform the Sham Shui Po area and are still pursuing the modernization of economic governance, they are undoubtedly a fortune of previous experience.
Fortunately, the "China Business" in that year, "dialogue with the boss," the form of the report, a true record of 20 years ago, Chinese entrepreneurs thought, in commemoration of the 40th anniversary of reform and opening up today, we believe so Looking back is useful, it is even more necessary.
Is for the foreword
Lenovo on "Lenovo."
When asked to write a report Lenovo Group, suddenly felt unable to write down. Because Lenovo is a highly transparent business, there are numerous articles about Lenovo, many of them are very good classic. From the mid-to-late 1980s, the reports of Lenovo Group began to appear in newspapers and journals, and it has been almost endless for more than a decade. This shows that Lenovo is doing well, on the other hand, Lenovo Group attaches great importance to public opinion. But think again, when the publicity can be synonymous with the Lenovo business there are many, but now there are a few? It is indeed rare. Think like this, but also think of Lenovo is an indefinable business, always make people have imaginative place.
Every successful business has its own development reasons, but Lenovo's calm and self-knowledge is beyond reach. Liu Chuanzhi once said: "What can not do? There is no money to make things can not do; money earned but can not afford to cast money can not do; rich earn money but no reliable investment to do, such a thing can not do. "This kind of force to make Lenovo to avoid the management of the innumerable attractive trap. Over the years, the Chinese economy has seen great ups and downs. How many enterprises have been stuck in the real estate industry, how many companies have lost their share of stocks and futures, how many have been turning over when large-scale diversification has taken place, how many enterprises have been developing rapidly Management out of control and split it? The leadership of these enterprises can not be unscrupulous, enterprises can not be described as lack of strength, perhaps the lack of it is calm and self-knowledge. However, in the trajectory of Lenovo's development, it has always been able to find such a valuable calm and self-knowledge. If there is an impulse in the trap of these temptations, Lenovo may not be today's association.
In his conversations with Liu Chuanzhi, we seldom hear exciting agitation, more analysis, even when talking about the future and ideals of the association. He also reveals astonishing calm without the slightest extra emotion. Only from this point of view, Lenovo's success is not by accident. It is naturally important to raise the motto of inspirational slogans and goals. There is no shortage of people who succeed in this cloud, but few are capable of long-term achievements. Chinese companies want long-term development? May wish to Lenovo Group's experience from more association.
"Trade" word to explain what?
host:Enterprises that survive in the information industry are undoubtedly important to master the core technology. CPU technology in the hands of the Americans, making it in the world has always maintained the initiative in this industry competition. Faced with such a big market as China, in addition to its own survival needs, the national industrial enterprises have to shoulder the heavy responsibility of rejuvenating the national computer industry. Many hope that Lenovo, a leading player in China's computer industry, will also be able to shape its technology and compete with large foreign companies. However, according to their own actual situation Lenovo developed trade, engineering and technology development path, which may be some people's expectations of Lenovo have a gap, but practice has proved that this is a successful road, "trade" lead the word to Lenovo What's coming? This is a question many people want to know. Please talk about it.
Liu Chuanzhi:Recently, some experts and scholars have conducted discussions on this issue. All of you are working together to compare FTA, trade, trade and Lenovo's trade, industry and technology path. Which is more suitable for China's national conditions? We think that there really is a profound truth in it. This should be considered from two angles, one from practice, and the second is from truth.
From a practical point of view, Lenovo had a fairly large number of technology research centers in the late 1980s and early 1990s, and the phased results that were developed can be translated into dozens of products, the largest of which is 500 million, called multi-Han card, this product is still more market, and some Taiwanese manufacturers are still doing. But at that time, we did not achieve much success. Why? Because there is no market development capability. First, the product itself is not running back and forth in the market repeatedly, the performance and quality of the product should also get more opinions in the market; Second, sales staff do not know how to sell in the market. Although Lenovo is engaged in sales started, and like our business elders come out from the computer to engage in sales, research market, but in the early nineties we have not figure out how to form a large-scale sales, and tap the market, operation Emerging market rules. The original sales staff will only sell Lenovo Han Cards andIBMWhen you open up new areas of products, I do not know where to start. The initial sale of Lenovo Han card, all the company-wide staff are rushed to the top, including the deputy general level staff, although not found the law, but things are still done. For example, engage in pyramid schemes, start shouting slogans, swear, cheer up. If you do not have these, just sit at home stupidly waiting and may not be able to sell anything. It can be said that in the early nineties, although Lenovo has a certain sales ability, but still not touch the law. So we either can not develop the product, or develop the product can not be sold.
Logically speaking, China still lacks the soil for marketing commodities. Such as technology products into commodities, why Americans on the line, the Chinese will not do? Later we understand, likeMicrosoft,IntelOf technical staff engage in market sales, they are long-term in a commercial society, and have long been proficient, can Chinese enterprises know? It is only the special case of China that we have only done these years as we have done and we have been able to understand this suffering. China's long-term planned economy, the state-owned enterprises engaged in sales is to open an order, the real large-scale sales is to engage in lay, Lenovo is only in the past few years to gain some experience.
Also, I think the growth of Chinese enterprises should be studied in three aspects: First, the law of the development of the industry, such as engage in computer, is to engage in the network or hardware or software to go; Second, the law of enterprise management, that is, the business itself Third, some special situations in China should be studied. In foreign countries, people's markets are basically the same, there is no need to study the special circumstances; foreign business management is more mature, so they can concentrate on the study of industry rules, focus on "technology" , With "technology", there is this potential, there is this ability to promote the market, as Soros, he is the potential energy for others to do it? Some scholars said: "Technology can promote users, technology to guide market demand". It's true, but who should do it. Honestly, we do not have this potential today. We are not enough funds or technology, but we can not stop. We must also work toward this goal. What should we do? Therefore, we engage in trade, industry and technology is to use "technology" as a guide to the market as a basic means of "trade" for Lenovo such a business is very important. We can compare Founder, Founder is from "technology" to start, but he is selling professional products, not universal products. I believe Founder today if you sell computers, but also to explore the experience of doing business, it is because of different product backgrounds. If it is done in the typesetting industry, more than 20 people can do the national market, but to sell computers? Sell generic software? You have to organize large-scale propaganda offensive, a large-scale market development capabilities and so on. Therefore, it is necessary for Chinese enterprises to make up the trade course. I can not say that this is a law, but for Lenovo, this road is very real. If we put it more clearly, we should do trade first, then clear up the large-scale industry and finally lead the market through technology.
After 1997, Lenovo gradually increase the technical content of products, such as our application software, shape design, motherboards and so on. The world's real "technology" to guide the market to have a few? That isIntel, Microsoft, others rely on marketing, rely on trade, want to use technology to guide the market, companies have strength.
Lenovo how to estimate competitors?
host:The computer industry is a rapidly developing industry. It is not easy for Lenovo to maintain its rapid development in more than a decade in such a highly competitive industry. But from the current situation, the future competition will be more intense, on the one hand large foreign companies want to eat this market, on the other hand domestic counterparts in the competition, including several well-known domestic appliance enterprises have to enter the computer market, Lenovo how to treat IT market, but also how to estimate these competitors?
Liu Chuanzhi:China's major rival computer companies or foreign enterprises. In 1990, the sales volume of China's computer market was only 85,000 units, up from 3.3 million units in 1997. The main reason for such rapid growth was the massive entry of foreign computer companies around 1994, which stimulated the demand for computers in China. Because anyway, computers at that time were indeed better than domestic ones, which made people from all walks of life dare to use computers without any problems. In the past, users were always afraid of using domestic computers, and the massive entry of foreign computers changed the status. At that time, domestic computers accounted for 50% of the domestic market and now account for 50% of the total. However, the current 50% is quite different from the 50% in the past. At that time, foreign computers were kept out of file and approval documents, The result of competing with strong competitors for business development is good, this is my point of view. In addition, look at what the market before the competition. If this market is an immutable market, or is not a big market, the competition will be cruel, is you eat more I eat less. I hope that the current computer market is both competitive and integrated, making the cake bigger, which is good for competitors.
You see, in 1990, the domestic computer market was only 85,000. In 1997, it was 3.5 million. By 2000, it could be 10 million or maybe 5 million. This depends on how the market is doing and how the market is changing. And the development of the market by what? Depends on how to solve the market bottleneck. Now that the bottleneck that hinders the computer market from developing is software applications, it is up to the Chinese and foreign software companies to bring the market together. As Intel is doing hardware, but he is very concerned about the development of China's application software, Microsoft has also made a lot of efforts in this regard. Lenovo's cooperation with software companies not only for the development of their own business, but also to make the cake bigger, so in the market competition, the first is to consider how to make the market bigger, and secondly consider their share. This is the combination of strong competition in the competition, according to market conditions to find the weak links in the IT industry to expand the market is our common request. Because it is good for everyone to do 10 million units.
Therefore, in this case, the home appliance business into the computer industry is also good. Appliance business has many features, such as their services, sales methods, etc., is enlightening to us. Now the competition of domestic enterprises is training troops, but also in the future to fight abroad.
host:Now domestic enterprises play a very lively price war, the appliance industry, the computer industry there, some of the industry's price war has led to the intervention of relevant departments. Lenovo is how to see the price war?
Liu Chuanzhi:Lenovo took the lead in 1996 five price cuts, making the entire domestic computer prices down. We think Lenovo's price reduction is contributing to the development of China's computer industry. How to say? There are two points, one is when the domestic computer performance and price than foreign. At that time, foreign countries also used 386 at 486, and their domestic prices were still more expensive than them. This is the time when foreign products dominate. Later, domestic enterprises came up with various advantages to make the situation come to an end. Now the most advanced machines in China are almost synchronized with foreign countries, and the prices are cheaper, which is beneficial to China's IT industry and users. The second is to see if your price is still profitable, if it is not long-term profit, it is suicide. For Lenovo, the computer is the most profitable one of Lenovo's four major industries, accounting for 60%. Therefore, look at the towel can not squeeze the water, depending on the level of management and work efficiency.
In addition, Lenovo is also working with other companies to guide the computer market in a healthy direction, for example, the software. We regard software as a point of economic growth. It is a trend of the industry to march into the software. If we can solve the bottleneck, we can make the pie bigger. Also, the company is good at developing its own hardware while doing the software. At the same time, the software itself is Important profitability. Now one of the biggest problems with software is piracy, which makes it hard for software vendors to recover the benefits they deserve. As a result, the reinvestment will be less and software quality will not be achieved. Users will not be satisfied and a vicious circle will be formed. Lenovo, on the other hand, has a relatively large-scale hardware production that can be bundled with the software. This opens up more piracy from a strategic perspective and at the same time promotes the development of China's intellectual property at a strategic level.
host:Lenovo in the future how to engage in bundled sales?
Liu Chuanzhi:Lenovo in the future to engage in large-scale bundled sales, you can engage in two sets of software, a set of commercial, a set of home, you can bundle sales, but also supporting sales.
Lenovo is a state-owned enterprise?
host:Clear property rights, management science is a basic requirement of the modern enterprise system. Now some countries engage in reform is to take the road of clarity of property rights, while the developed countries in the process of socialization, property rights have blurred the trend. Someone once said: "Lenovo is a mystery." Probably one of the points is that the property rights of Lenovo did not find out the structure. Is not a property right issue a very important issue for a high-tech enterprise?
Liu Chuanzhi:From the Lenovo main body, the CAS Institute of Computer is the major shareholder, the main body is called "Legend Holdings", when the Chinese Academy of Sciences was originally invested 200,000 yuan is voted here, where the Chinese Academy of Sciences accounted for 65% of the shareholdings of employees will account for 35 %. Lenovo Holdings controls a big company, Lenovo Group, which is a Hong Kong-listed company. All of our business is here. Our share here is 68%. The remaining 32% are social funds, mainly foreign Big fund. Lenovo Group has a lot of business below, Legend Holdings also has some business below, Legend Holdings business is mature and then sold to Hong Kong Legend to get more shares. For example: Today, we bought 150 million shares at a price of 3 yuan. The 50 million shares are sold by the major shareholders. One hundred million shares are expanded shares. In the future, the stock price will rise to 4 yuan per share. At this moment, the shareholding ratio from the original 72% down to 68%, but our major shareholders got 150 million in cash, listed companies take 300 million funds, money can do things. Hong Kong stock market is not very good now, so be able to sell stocks improved. Shares held down, Lenovo Holdings can sell good assets to listed companies to increase their shares. For example, a laser printer (owned by Legend Holdings) has a profit of 10 million yuan a year. When it is sold, it multiplies its price-to-earnings ratio by its profitability. If the result of the evaluation is multiplied by 13 times, it becomes 130 million Yuan, such as the stock was 1.3 yuan a share, we can exchange 100 million shares, which in turn increased the shares of major shareholders. This back and forth to do, more and more funds, Lenovo Holdings have the power to raise the chicken to lay eggs to sell chicken.
In short, Legend Holdings is a purely state-owned enterprise, which controls a public company called Lenovo Group, which made 68% of its profits to its major shareholders.
host:That Chinese Academy of Sciences had voted 200,000 yuan, then how much revenue?
Liu Chuanzhi:Chinese Academy of Sciences this year, there are 60 million yuan of revenue. After the Chinese Academy of Sciences got the money, it re-used the computer to make a complete renovation. The funds recovered are used in this regard.
host:That Lenovo's employee stock ownership will be 35% of the shares is how is it?
Liu Chuanzhi:We call it a 35% stake, is the Chinese Academy of Sciences to share ownership of employees, not shares to everyone's head. If the shares of the company will be scattered. The meaning of equity means that 35% of the profit is distributed to everyone, so that the sense of ownership of employees is greatly enhanced. You will find in Lenovo, where the main person in charge are about 30 years old, how to become like this? Since all the old comrades who started their businesses with me stepped down, the old comrades were able to withdraw smoothly from their vice posts and have a direct relationship with this 35%. 35% of this 35% is for the 16 start-up veteran comrades, because after having the rights and interests to ensure that they continue to share their entrepreneurial fruits, so there is no general state-owned enterprise leaders do not quit the day not to retire, but also 35% are given to the general old comrades, the rest of the rights and interests for the later newcomers. Such old comrades can happily retreat, the newcomer can go smoothly, to ensure the development of the Lenovo Group.
Lenovo does not exist When the general state-owned business operators in the office to make the business booming, approaching retirement found nothing after nothing, and to take some illegal means for personal gain, the so-called "59-year-old phenomenon". Therefore, Lenovo's ownership is a very important issue, and this is very important to any one business.
Lenovo can avoid mistakes?
host:During the 20 years of China's reform and opening up, numerous enterprises or entrepreneurs have risen up and down during this period. It has been like a monumental phenomenon. For example, Shenyang Flying Dragon and Zhuhai Giant are both making mistakes in making decisions when enterprises are in rapid development, causing violent turbulence in their enterprises. The association has been steady and rapid development, Lenovo is how to avoid making mistakes?
Liu Chuanzhi:This question is well asked, in fact, Lenovo's mistakes are constant, but Lenovo in the development of special emphasis on three elements, is to build team, set strategy, team. This is the heart of our business management. Building a team is the first one, with a good team can set a good strategy, trade, industry and technology is one of our strategy. Lenovo's strategy is five strategic lines: first, adhere to the diversification in the field of information industry development; second, adhere to the Chinese market-based business; third, lay the industrial foundation for scientific research and development; fourth, strengthen the child The company's R & D in promoting the role; Fifth, opening up the stock market financing channels. With the strategy can not be implemented is another thing, just as the Battle of Northeast China set to play Jinzhou, if the troops can not fight down or not, this is the problem with the team, and the development of strategies are two different things. Belonging to the team in five aspects: First, the organizational structure; the second is the rules and regulations; third is the incentive means; fourth is the corporate culture; five is to train personnel. These strategies will help Lenovo smoothly achieve its goal of 3 billion U.S. dollars in 2000 and become a truly high-tech enterprise with advanced international standards.
The building team just mentioned is very important. This is an important factor in avoiding mistakes in decision-making. Here are three factors to consider: First, we can form leadership prestige after we have a team. For example, a person can not do anything in the company, because there will be opponents of anything, a person can not be a force. With the team will lead the formation of prestige. Second, there is a group to form a collective wisdom, no matter how to say, a person's intelligence is always limited. Third, with the team, there will be a first-hand control. No restriction is not acceptable, such as Shenyang Iron Dragon is the lack of such enterprises in this area: First, personal considerations are not comprehensive, and second, a person wants to do without restrictions, the third is to make a decision and then push does not move, this is Prestige is not enough. You see, all enterprises that made major mistakes did not form a leading body, or ostensibly, but in fact did not form a team. Lenovo formed a team, in each department has a planning office, in charge of various functional departments, such as business development department, human resources department, public relations department, its role in addition to specific operations, but also the role of the company think tank, this department Some of them are very experienced and can guide the decision-making of the company to make decisions to help the company leaders understand the internal and external environment. This department can not only support the leadership decision-making, but also promote the implementation of the decision-making. Lenovo's top six decision-making level, three older, three young, planning director is the executive director.
That year we did not enter the real estate industry is calmly considered the decision. Therefore, Chinese enterprises should still place special emphasis on the building of the leading body. They must work together to form a synergy. With a synergy, they must have a core and a core to make a decision.
Lenovo is ideal?
host:You have a conception of Lenovo, Lenovo now is your ideal association? Lenovo's employment standards is what?
Liu Chuanzhi:Lenovo now and my ideal association is still very far away. The association I want is a long-term, large-scale, high-tech company. Long-term means we do not do short-term behavior, such as speculation in stocks, real estate speculation, although also make money, but can not exercise our ability. Therefore, we have come to an end today through the road of trade, industry and technology. Nowadays, we must also increase the technological content and profit from technology content is a matter of great concern to me.
Also, our current question is how to combine the goals of our employees with those of our business. At this point there is still a big gap between my ideal. I hope Lenovo's key employees can form a group of masters, such enterprises can do a good job. General state-owned enterprises said there is a master, but in fact no owner, while most private enterprises are mostly personal management, family management, which also limits the development of enterprises. Our enterprise should have a better mechanism to mobilize the enthusiasm of employees to the fullest extent. If this can be done, the development of staff should be limited.
I also think that the top backbone should be a dedicated and capable comrade. Career mind is different from ambition. Those who are motivated will work hard, but their purpose is for their own self-interest. However, the cause is different, and the industrious people work hard for the cause of the nation and for the cause of association. If you are a group of people with a professionalism can work together to expand.
host:Enterprises can not do without people, but also in the defeat are also people, business risk is the biggest factor in human management, Lenovo is how to measure talent, Germany and how to weigh?
Liu Chuanzhi:Under what circumstances is the use of talent based on virtue? Under what circumstances to give priority to? Lenovo believes that senior employees should have both ability and political integrity, and the German side must not allow mistakes. As long as the average staff on the line, of course, I also hope both ability and political integrity. The meaning of Germany is nothing more than the value or the value orientation. Values derived from the needs of people, such as a person is based on career or love, in order, the order itself formed a value, and one of the values of altruism determines the standard of Germany, if a person doing Things are only for themselves, then his virtue is not very good. As human resources department should make this work as much as possible refinement, and then look at his spirit of cooperation, personal efforts and so on, and finally give this person overall rating.
host:Nowadays, people often talk about "economically capable" people can set up a business and they can ruin a business. The decision of one person decides the rise and fall of a business. How do you see "Economist", how do you think about your own successors?
Liu Chuanzhi:Entrepreneurship in the business phase, can not be economically inevitable, but a real business should not be true. Just as the president of the United States changed so much, but he did not hear anyone who wants to change his law to become a third term. The same is true of the United States, large enterprises, in addition to founder of the founder phase, who remember what the president? But he has a set of systems and mechanisms that fit the laws of the market, so the business will last forever. Lenovo's ideal is to long-term development, is a set of sound management mechanism. People are absolutely important. People can not only do things well at the stage of starting a business, but also improve the mechanism so that capable people can come and create new ones.
For me personally, if Lenovo really left me, that is my failure. I now consider more is the issue of human level, not the pedestrian, that person does not work, college students have an association to raise the issue of raising the level. Grass-roots staff to improve the level of the middle level to raise the level of high-level backbone also need to raise the level. After the formation of the highest level naturally has the core. The highest level should belong to the type of career. First, it should be industrious rather than personal ambitious. For the cause of association, it is necessary to strive for China's high-tech undertaking. Second, we must be good at summing up. Not only can we do things well, In addition, this level of people should have a global outlook, to represent the interests of the entire group, rather than the interests of a particular department representative.
Zhongguancun why did not become Silicon Valley?
host:Zhongguancun in Beijing is known as China's Silicon Valley, but it is actually far short of the Silicon Valley in the United States. In retrospect, when many companies in Zhongguancun started their businesses at the same time as those in the United States, they started out at the same time as large companies such as Microsoft and Intel, and what are the reasons for this disparity?
Liu Chuanzhi:Lenovo's success is by chance, in the United States, if the major shareholder to an employee 200,000 yuan, 14 years no additional investment, he can do a big company like Lenovo? How much operational risk in this intermediate, policy risk? There are three unfavorable factors in setting up high-tech enterprises in China. The first is the issue of mechanism. Gruff and Bill & middot; Gates why develop so fast, because he is the owner of the business. In the high-tech field, the entrepreneur must be the owner of the enterprise. Therefore, to set up high-tech enterprises in China should start from having entrepreneurs own the shares of the enterprises. Of course, the shares are not necessarily on the line, but certainly not much worse shares. Another point to illustrate this is that private high-tech enterprises in China develop much faster than state-owned high-tech enterprises. However, it stands to reason that the strength of state-owned enterprises is much greater than that of private-owned enterprises, which is related to whether the operators are the masters or not. The second point is the funding issue. The United States Silicon Valley guarding the securities market, high-tech who did not grasp the beginning of it can be done within two or three years, the bank did not dare to loan. However, the venture capital fund is willing to invest. The venture capital fund invests in ten enterprises, of which eight have lost and two have succeeded. The venture fund has made these two enterprises listed on the market far more than the eight ones. China has not yet formed a risk fund, listed companies require a certain size of the country, there is no high-tech listed that so compared with the United States, there is no way risk-making fund. The third point is the issue of talent. There are plenty of people in Silicon Valley in the United States. I have many contacts with high-tech enterprises in Taiwan, Taiwan, where many people have a history of studying in the United States, a background of working for a U.S. company, a difference in mainland China, and the inability of our business to pay So high salary, people who study abroad to return to China are not many. Lenovo's approach is to do business with large foreign companies, through cooperation to gain technical and management experience, or send people to go out, or ask foreigners to be consultants.
Lastly, what I want to say is that China really needs entrepreneurial and business ideas. How to form an entrepreneur and a correct corporate philosophy in an environment like China? It can not be learned from books, can not be learned at Harvard, and hardly learned from state-owned enterprises. This requires that successful entrepreneurs in China often speak out their own experiences and lessons so that people may become influenced and form an entrepreneurial society in China.
The host is "China Business" reporter Zhang Shuguang Li Quanwei
Proofreading: Zhai Jun
In the 40 years since China's reform and opening up, the Chinese nation has rejuvenated itself in the great rejuvenation history for 40 years. It is also a history of the development of Chinese enterprises, recording entrepreneurial innovations of entrepreneurs and witnessing the growth of entrepreneurship.
At the 40th anniversary of the reform and opening up, China Business Daily hopes to deepen dialogue through words, lenses, entrepreneurs and scholars and to arouse their youthful memories in many dimensions, understand their judgment on the future at various levels, and summarize the laws governing the development of enterprises in the new era And win the road to tap the entrepreneur's business intelligence and life thinking, so as to extract a unique Chinese entrepreneurial spirit.
2018 series of reports will be launched, so stay tuned.