Innovation is the source of enterprise development

Liu Chaosong , General Manager of Diamond Tools Division of Boshen Tools Co., Ltd. First of all, I will briefly introduce the basic situation of Boshen Tools. Founded in 1994, Boshen Tools is mainly engaged in diamond circular saw blades, diamond thin wall engineering drill bits and diamond grinding discs. In the recent years, the company has gradually expanded its power tools and alloy tools business. Below I mainly talk about personal knowledge around the diamond tool products industry. As we all know, since the 1960s, the industrialization of diamond tools has experienced the industrial transfer from developed countries in Europe and America to Japan, South Korea, and then to China. The country started from the 1990s, although it started. Later, but after 20 years of development, the diamond tool industry has occupied a pivotal position in the international market. The achievement of these achievements is inseparable from the colleagues here, especially the revolutionary technological changes in the upstream industry, and the joint efforts of the leaders and practitioners of the association. In particular, in recent years, there have been some encouraging changes in the industry development momentum. First, the diamond tool manufacturing industry is moving from the initial simple cluster development to intensive development. Yesterday, Chairman Yin Yuhang mentioned that there are a large number of enterprises engaged in the diamond tool industry in China, and the market competition is becoming increasingly fierce, even reaching a simple price competition situation. However, this kind of competition also has a positive side. At the same time, competition is also promoting enterprise technology. Progress, even forcing companies to increase their strength in lean, low consumption, and high quality, has also played a positive role in the development of the entire industry. Second, the trend of industry segmentation and enterprise specialization is increasingly obvious. With the rapid development of the national economy, the downstream industry segmentation and specialization are getting higher and higher, the diamond tool end users are more and more mature, more and more professional, and the individualized demand for tools is becoming more and more clear. Drive the industry segmentation and professional development of the tool manufacturing industry, who will adapt to the market demand during this period, who will grasp the market pulse and achieve rapid development. Yesterday, the speech of General Manager Jiang of Zhengzhou Xinya left a very deep impression on me. The industry segmentation and field segmentation itself is a kind of specialization extension. The phenomenon that a product hits the world will become history. The third is the rapid upgrade of technical equipment in the industry. Especially in the past two years, with the increasing aging of the society and the entry of the 90s into the society, the original technical equipment can no longer meet the demand. At the same time, the increasing degree of specialization in the equipment manufacturing industry has provided a guarantee for the upgrading of the technical equipment of the diamond tool manufacturing industry. The professional upgrade of technical equipment is reflected in two aspects, one is the emergence of high-precision equipment, and the second is the popularization of automation equipment. Fourth, the third industrial transfer of the diamond tool manufacturing industry began to appear. For the diamond tool manufacturing industry, today's developed countries in Europe and America are our tomorrow, which is a law of development. Two important factors that have re-emerged in the domestic industry depend on the development of China's national economy and the economic development of third-party countries. With the regulation of domestic resource materials and the pressure of cost, the demand for industrial transfer begins to appear, and at the same time, With the economic development of third-party countries and the expansion of market demand, industrial transfer has become a necessity. The above is my understanding of the development trend of the diamond tool industry, mainly on the positive side. Of course, we can't deny that there are still many shortcomings behind the flourishing development. Yesterday, Chairman Yin Yuhang has summarized it very comprehensively. I want to elaborate on it in three aspects. First, there are many companies in the industry, but they are big but not strong. In the early 1990s, the domestic diamond tool manufacturing industry began to take off, and it was also the best market entry period for industry practitioners. By getting rid of the monopoly position of Japanese and Korean companies in the domestic market, practitioners also obtained huge profits. And got a lot of development. However, in recent years, practitioners have entered the market in large numbers, and market competition has become increasingly fierce. Of course, full competition is conducive to the overall development of the industry, but one fact we cannot avoid is that the increase in industry practitioners is largely a simple fission, a simple copy of capital and technology, and rarely qualitative. Variety. Second, the industry's high-end technology and products are still in the hands of developed countries such as Europe, America and Japan. In any process of industrial transfer in the international arena, there is helplessness, including inevitability, but at the same time it contains strategic. As far as the diamond tool manufacturing industry is concerned, practitioners in developed countries in Europe and America will not take the initiative to break their monopoly position and give up profits. However, with the pressure of cost and the development of foreign technology economy, their dominant position in competition is gradually reduced, and industrial transfer It becomes inevitable, and it also contains the helplessness of foreign practitioners. On the other hand, behind the inevitability of industrial transfer, there is also its strategic nature. It is a transfer of resources and labor costs. High-end technologies and products are still in the hands of developed countries such as Europe and the United States, such as in aerospace, electronics and many other fields. Products in these areas still have high added value. Third, international brand and channel construction still needs to be strengthened. From the perspective of the development of the whole industry and market distribution, domestic enterprises are still in an unfavorable situation in the international market competition, especially in developed countries such as Europe and the United States. After years of development, they have become more mature in terms of brand and channel construction. To a large extent, it has become a kind of capacity transfer, and European and American countries still get higher returns on brands and channels. The above points are some of my personal views. Since my own time in the diamond tool manufacturing industry is relatively short, some views will be biased. However, I believe that this is a necessary stage for the development of a developing country's industry. If you flatten your mind and work hard, this stage will be greatly shortened. How to correctly analyze the current status quo and development trend of the industry, and to achieve the necessary conditions for maintaining the healthy development of the enterprise. Let me talk about the situation of Boshen Tools Co., Ltd., and share with you. I personally joined the family of Boshen Tools in 2002. During this 10 years of work, I experienced the rapid development of the company to the stage of successful listing. What is the deepest impression of Bo Shen during this period? That is innovation. First, adhere to the concept of innovation, and promote the sustained and healthy development of enterprises. Boshen's several major developments in the development, thanks in large part to the previous strategic adjustments, accurately predicted the future development trend of the industry, and took the lead in the transformation and upgrading of the concept. Based on the current development status, based on the full and scientific analysis of the external environment and internal environment, the development strategy of the “Twelfth Five-Year Plan” was formulated: adhere to one main business, do a good job in three products, and do five support to build sustainable management. An internationally renowned company with rapid growth and healthy development. One main business is the tool manufacturing industry; the three types of products refer to diamond tools, cutting and grinding small construction tools, and carbide tools; five supports are technology, management, brand, sales channels and corporate culture. Boshen has always insisted that enterprises must have a big development, they must go out and participate in the concept of international competition. Therefore, Boshen regards the development of the international market as an important task related to the sustainable and healthy development of the company. In order to meet the requirements of international competition, Boshen Tools continuously strengthens its competitive strength and actively integrates with the international level in terms of equipment, technology and management level. It has introduced the German CNC laser welding production line, the American laser cutting machine and automatic brazing equipment, the German numerical control cold press, the CNC grinding machine, the Italian diamond detector and other production testing equipment, and the process equipment has reached the world leading level. In order to achieve the planning goals, Boshen's innovative development model, on August 21, 2009, Boshen listed on the Shenzhen Stock Exchange, became the first private enterprise in Shijiazhuang listed on the A-share market, standing on the platform of the capital market. Through mergers and acquisitions, Boshen achieves rapid growth of its business and builds a platform to expand its international market share. In 2010, Boshen acquired the German-owned Pudongao (Shanghai) Machinery Tool Manufacturing Co., Ltd., a German-owned company invested by Prewi in Germany, and began an attempt to acquire foreign brands. In 2010, the company invested $1.5 million in Sao Paulo, Brazil, and established Boss Brazil Limited. In the same year, Boshen spent $3 million to successfully acquire 100% of the Canadian company Syracuse to expand the North American market. After becoming a US-based Boshen limited liability company, the company established another wholly-owned subsidiary in North America. In 2011, the company invested 239 million yuan to set up a wholly-owned subsidiary in Thailand to build a diamond saw blade production base overseas. Prepare for the company to further expand the international market. Second, adhere to management innovation, relying on management innovation to stimulate corporate vitality. The management level is the embodiment of the comprehensive strength of the enterprise, the "internal strength" of the enterprise cultivation, and the fundamental of the enterprise's ability to resist risks. Boshen has always focused on the scientific management within the company. The first is to establish a scientific governance structure. Most of Boshen's shareholders are in the company or subsidiaries. Most middle and senior managers or business backbones hold shares in the company, and the shareholding ratio is relatively uniform. Reasonable equity arrangement not only reduces the cost of agency and agency, but also prevents the disadvantages of family control, and more effectively motivates the middle and senior employees of the company. The second is to establish a standardized management system. The standardized management system can greatly improve the management effectiveness of enterprises and improve their competitiveness. Standardized operation procedures and employee work behaviors form a harmonious, competitive and orderly working environment, and bring the long-term development of the company into a benign track. The third is to introduce advanced management tools. Boshen has invested more than 20 million yuan and introduced the advanced ORACLE ERP management system, which has promoted the comprehensive optimization of the management of all resources, production, supply and sales of enterprises, finances and materials, and realized information flow, logistics and capital flow. Comprehensive dynamic management to streamline and standardize business processes. The fourth is to continuously carry out management changes around the development of the enterprise. In order to integrate resources and dock the market, we have decisively reformed the business department system. Based on the existing resources of the company, we have established diamond tools, power tools, and alloy tools divisions to integrate production, R&D, and sales to form accurate positioning. Efficient operation, chain, interactive, and cooperative management advantages enhance market competitiveness. The third is to adhere to scientific and technological innovation and build a strong driving force for enterprise development. The first is to strengthen the construction of technology centers. Investing 50 million yuan to build an enterprise technology center, based on the existing provincial-level technology center, taking the opportunity to build Hebei Diamond Tools Engineering Technology Research Center, increase investment, optimize basic research and product development conditions, and strengthen the construction of technical center team. Improve the quality of the scientific and technological team, strengthen the application of basic research work, improve the independent innovation and product research and development capabilities of the enterprise, and build the company's technology center into a national enterprise technology center integrating diamond tools, power tools and hard alloy tools. Second, continue to adhere to the scientific research and development and independent innovation system combining production, education and research, carry out technical cooperation and promote technology upgrading. Continue to establish long-term cooperative relations with Huazhong University of Science and Technology, Yanshan University, Shijiazhuang Railway Institute, Hebei University of Science and Technology, Shanghai Electric Tools Research Institute and other institutions of higher learning and research institutes, with German Feiyu Company, South Africa Element 6 (Element6), Germany WEKA Such well-known enterprises carry out international technology cooperation and rapidly improve the research and development capabilities of Boshen, so that the technical and technological level of Boshen products will reach the domestic leading level. The above is my understanding and understanding of Boshen's tools as a professional manager. It should be said that management is an art. Simply speaking, it can be a degree of grasp. The angle of thinking is different. The ones that are concerned and respected are also Different, only by correctly understanding the market and correctly understanding oneself can we grasp the opportunity and grasp the future. Finally, I wish this event a complete success and I wish all entrepreneurs a greater development in 2012.

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