Five Transformations in the Development of Chinese Manufacturing Enterprises

The reform and opening up has already gone through more than 30 years. The Chinese manufacturing industry has matured in its growth. The key lies in the word “walking”. How to go better, Luo Baihui believes that the key lies in grasping the "five transformations," which is the top priority for the development of China's manufacturing industry.

The first is the transition from "manufacturers" to "system solution providers."

Since China’s accession to the WTO, the concepts and facts of “Made in China”, “Created in China” and even “China’s Ingenuity” have been reported in various media. However, in the comparison, we found that when competing with foreigners now, others are taking technical monopoly to compete with us. What is a technical monopoly? It is not the product itself but a supporting system. It's like a suit, a software, and everything inside. We promote this system. The components can be easily promoted. This is the technological revolution. Today, those multinational companies are already listed on the system solution. This is the application of information technology and other high technology to graft traditional industries and take a new road to industrialization. This is the problem of R&D strategy in the technology - from a pure product manufacturer to a system solution provider.

The second is the transformation from "traditional industries" to "energy-saving and environment-friendly industries."

Due to the continuous natural disasters caused by environmental pollution, people on earth must inevitably develop new energy sources. Except for nuclear energy, almost all energy comes from solar energy. Solar energy is inexhaustible. Solar panels are installed in 1% of the Earth's entire area, and all of the electricity is completely solved. This is an incredible thing, and it is the cleanest and most environmentally friendly.

The third is the transformation from "selling products" to "selling services."

It is to implement the "going out" strategy and implement the "turnkey" turnkey project. China has contracted dozens of transformation projects for power plants, substations, and power grids in Southeast Asia, the Middle East, Africa, and Europe, and has driven the sales of complete sets of equipment. This shows that we have established a global network marketing system, innovative industry "M2B" marketing model, is actively exploring the transition from selling products to selling services.

The fourth is the transformation from "enterprise management" to "operating enterprise".

From the family workshop "fire stove" burned the city's "tiger stove", and later burned to foreign markets. The temperature of the water is also good, and the fire is also very prosperous. The current five transformations are just for us to mature better and faster in our growth.

The fifth is the shift from simple and spontaneous management of enterprises to a scientific management transformation.

Although private enterprises have developed through the catalysis of reform and opening up, they are still in the simple and spontaneous management level formed and summarized during the period of creation. With the gradual transformation of enterprise competition from scale expansion to management management level competition, the lag in management has become a bottleneck that hinders the further development of the enterprise. Therefore, private enterprises must complete the transition from simple and spontaneous management to scientific management, and must apply the ideas, principles, methods, and technologies of scientific management to the management practices of enterprises to comprehensively improve the management level of the enterprise.

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