Red Bean Group: The Construction And Extension Of Enterprise'S Systematic Capability

From the knitting factory below Hodo From the workshop collective enterprises to the listed companies, from the "south" to the "frontier" to the development of South Asia, the development of the red bean group in 1957 has been a model for the spanformation and upgrading of Chinese enterprises. There are many directors of this board. Zhou Yao Ting Mr. Zhou Haijiang's assessment of the situation and foresight can not be separated from the Secretary of the Party committee and the president of the Party committee. Reporter recently to red bean group information department chief Ren Xi Feng Interview, let us examine the key role of IT system from another angle.

What systemic capabilities did the red bean group build?

What is meant by "systemic ability"? The vocabulary not seen in classical theory is actually a comprehensive description of various concepts, including the connotation of "system theory" and "competitiveness". "Systemic capability" includes at least eight aspects: enterprise strategy, brand building, talent strategy, capital operation, enterprise management, supply chain thinking, global marketing capability and IT construction. The coordinated and coordinated development of these aspects is an important guarantee for truly giving full play to systematic capabilities.

In 1984, the registration of "red bean" trademark is an important milestone in the brand building of the red bean group. There is no doubt that "red bean" as a clothing brand is quite a coincidence. The love legends of Acacia red bean and the popular poetry of Wang Wei in the Tang Dynasty are naturally the brand connotation that can be produced and extended. From another point of view, "red beans give birth to the South and spring sends a few sticks"? It is gratifying to note that the "red bean group" is indeed through the spring breeze of reform and opening up and globalization, spanning four major fields: clothing, rubber tires, biopharmaceutical and real estate. It has moved from the southern Jiangsu to the whole country, and has crossed the national boundaries.

"Red bean is a partnership enterprise in the era of lower knitting mills." The introduction of Xi Feng, director of the Information Department of the red bean group, changed the view of the red bean group's predecessor as a family enterprise. "In 1983, Zhou Yaoting became the director of the knitting factory in Hong Kong, and the policy of mobilizing workers to raise funds was very advanced. It not only solves the problem of lack of funds for enterprises, but also foreshadowed the spanformation of workers' welfare shares and shareholding system. That is to say, in the era of planned economy in 1957, there was a shadow of joint-stock system in the lower knitting mill. In 1983, the knitting factory under the port has made a very good and useful attempt to clarify the property rights and modern enterprise system.

"Small factory big company" may not be the first creation of the red bean group, but the scope and intensity of the implementation of the system are quite typical. "Enterprise culture is the foundation of development. We take the red bean culture as the root, and make the farmers' enterprising spirit, competitive consciousness and way of thinking conform to the requirements of the market economy. At the beginning of our business, we have a competitive mechanism. As a member of the enterprise, everyone must have a sense of crisis. At first, it was the way of mechanical recording, and then to performance appraisal, property rights benefit and so on. Since 1988, the trading and settlement system has been adopted. All the workshops, warehouses and various independent departments are independent enterprises, and they use spanactions to settle accounts. For example, you are producing motorcycle, not necessarily buying tire inside the group enterprise. At that time, we had a business that went bankrupt for 5 years. Some people questioned why we should do this. We must grasp the benefits and quality before we can catch the market. This also leads our enterprises to have competitive advantages and avoid big meals. " Xi Feng said, "such a management system has made nearly 200 independent corporate enterprises under the group company, not only small, but also flexible and competitive."

After the 14th National Congress of the Communist Party of China, the "small factories and big companies" system was implemented more resolutely, breaking the original production and operation institutions and accounting independently. "Walking out of the workshop and going out of the factory is the international market." Xi Feng said, "we had a Western-style clothes factory that specializes in Western-style clothes. There are two workshops in the same factory. The same product has two factories. When foreign enterprises come to visit, they do not understand that such a management mode is not very wasteful. Every factory has a set of management personnel and accounting mechanism, and a corresponding market, which leads to internal waste and wastage. But now we still retain this mode, which is separate from the region, but the same product is produced. Competition leads to the development and growth of enterprises, and the fierce competition among enterprises will lead enterprises to find their own way out. Xi Feng, for example, said: "there is a clothing factory facing South market and the northern market, the products are differentiated. The competition in South market is fierce, fashion and fashion are demanding, while the northern market is stable, but the quality is high. Such a product leads to two directions, one tends to be fashionable, the other tends to quality. A domestic market is the main and the other is from the south to the international market. This is the advantage of our competition, and these two enterprises will not survive because they have their own market and competitive advantage. "

In 1996, the general manager of "million annual salary global recruitment" was sensational. Zhou Yaoting's open mind, claiming to be a farmer, is no loss to young people. Mr. Chen Zhong from Canada brought fresh management ideas to the red bean group in the position of general manager. "He worked harder, we hired a year, and then extended for half a year." President Zhou Haijiang reviewed the experience in an interview with the media. "After the end of the general manager's appointment, Mr. Chen Zhong took up another position." Obviously, this process reflects the red bean group's multiple thoughts in marketing, brand promotion and talent strategy.

In January 2001, "red bean stocks" were listed on the Shanghai Stock Exchange, and enterprises began to enter capital management. In May 2002, the red bean New York company was formally established in the BROADWAY1411 building of the United States. In 2003, 6, red beans entered the real estate industry. In June 2008, red bean set up China's first home textile color research and development base. In September, the State Forestry Administration approved the yew high tech eco industrial park as a Taxus technology demonstration garden and entered the Zhongnanhai. In November, the red bean group finance company was established. The red bean group now has ten subsidiaries, and has built 11.13 square kilometers Industrial Park in Kampuchea. It has two overseas branches of New York and Losangeles, and its products are exported to more than 20 countries and regions. The group currently employs more than 20 thousand employees, indirectly leading to 100 thousand jobs.

The ability to expand steadily and sustainably reflects the systematic capability of the overall operation of an enterprise. In contrast to our definition of "systemic capability", the red bean group has performed well in eight aspects. "The group's current strategy is to develop towards scale, modernization, internationalization, informatization and schooling. From top management to grass-roots employees, we understand that we are striving to create a goal for a century's multinational enterprises." Xi Feng, while introducing the vision of the group, is also aware of the need for the corresponding IT strategy and the ability of his team to perform. {page_break}

IT supports the construction and extension of "systemic capability"

"Our investment in information technology in 12th Five-Year is very high and will reach 50 million yuan, focusing on logistics, supply chain improvement and system integration." Xi Feng believes that "the difficulty of informatization in the clothing industry is relatively large, and the investment in the past year has reached about 5 million. Finally, we should integrate several interfaces to form a complete information system.

In fact, the IT system now used by the red bean group includes the group financial control and management of golden abacus, the nine star capital management software, and ERP and other office collaboration software. It basically plays an important role in supporting the formation of enterprise's systemic capability according to the software purchased at different historical stages. However, with the rapid development and expansion of enterprises, higher requirements for IT strategy and implementation goals have been put forward. We must examine and control the IT strategy and structure from a higher level to meet the management needs and overall strength of enterprises.

Why do we choose golden abacus management system instead of other companies?

"In fact, the golden abacus was determined by our bid in 1988." Xi Feng recalled, "at that time, we inspected many enterprises, making cash abacus is more suitable for the management mode of enterprises, more flexible. The golden abacus helped us define the "decentralization + centralization" mode. After the financial system was launched, good results were achieved. The whole group had 107 enterprises at that time, each enterprise had 3 people to do financial affairs, and 380 or so financial personnel, like most enterprises, the settlement should be 15 days in advance, and the business of last month will be settled around 10 this month. After the use of computerized accounting, we now need only half of the staff, and we can settle accounts within two days from 10 billion to 30 billion. Xi Feng believes that the flexibility and controllability of the abacus management system has made significant changes in the financial management and control of the group over the years. In addition to financial aspects, we have other cooperation with the gold abacus, such as e-commerce, asset management and so on. Part of the effect is still better, mainly from the financial aspects continue to extend.

According to Wang Xiao, general manager of Jiangsu golden abacus, the golden Acacus is also helping the red bean group make the whole e-commerce layout. It hopes to upgrade its existing information system to the whole e-commerce platform, and help enterprises to follow the rapidly developing e-commerce business.

Before the golden abacus management system, the 7 branches of the red bean group are all financial software. Some are friends, some are Kingdee, others are gold abacus, and they also use housekeepers. "Very dispersed, which is not conducive to the development of the group. Therefore, at that time, the group leaders also asked to gather the financial resources at that time, and we could not evaluate which software was more suitable for us, including the price is not too spanparent. Therefore, we first purchased a financial management system in Jiangsu by bidding. Xi Feng said frankly that without the support of the leader, it is impossible to make such a big decision. "In the implementation process, there is no big difficulty. At that time, the difficulty of manual processing of financial affairs was very high. The difficulty is consistency of the application and management of financial software. Some companies are relatively backward in management, and there are some problems in the synchronization of management software caused by the irregular accounts. However, by improving the standardization of finance, the use of abacus management system, including the use of other software, can improve our management level, and more regulate the handling of our accounts.

Xi Feng believes that although there are many ERP products in the market, such as SAP, Oracle, UFIDA, Kingdee and so on, but the management mode of each product is not consistent with the actual management mode and strategy of the enterprise, and there is almost no software that is completely suitable for group management. "The above software companies have inspected, and the final conclusion is also true. For example, some product lines are relatively complete, but they do not cover the whole product line of the whole red bean group. For example, some ERP functions, but no distribution, must use other company's distribution system. If we use Kingdee and UFIDA distribution system, there is no solution for rubber and tyre industry. " Xi Feng said, "our approach is to select a more advanced management software in the industry to implement it. For different industries, it is mainly for the needs of this kind of management, and then make system interface and system integration according to the expansion needs of different industries, which is more suitable for the development strategy of the group. Now it is the 4 main industry, and it may develop to 5 or 6 in the future, so informatization must adapt to the development needs of the group. "

"Of course, there still needs to be some mature market-based software. But in different industries and different formats, the applications are different. For example, we and Wuxi enterprises have also developed a set of clothing industry software, which has been very successful in some of our enterprises, but basically failed in other enterprises. The main reason is still in management, which also needs to explore how to regulate our management and execution. Xi Feng has great sympathy for the group's incorporation of information technology into the overall strategy of the group. "Group leaders' application of information technology has been integrated into their daily thinking. This is also a very important reason why we are promoting the smooth development of information technology projects." {page_break}

Connotation of enterprise spanformation ability and post role

"Looking at IT from the perspective of business strategy" and "looking at business strategy from the perspective of IT" seem to be two completely different perspectives, but it may actually be the two aspect of a problem. In the era of globalization and information, enterprises can not be able to carry out normal business operations without the combination of the two. At the same time, we also put forward better requirements for the knowledge structure and ability of talents in different positions. In a sense, the spanformation capability of enterprises is based on the overall improvement of the "systematic capability" of enterprises, which also includes the talent strategy, that is, the test of the matching ability of different roles and capabilities of different positions.

During the "12th Five-Year" period, the textile industry will face a collective spanformation. What kind of information strategy will the red bean group support for the strategic spanformation of the group?

"In fact, the spanformation of our group began in 11th Five-Year." Xi Feng said there were many media reports in the past. "The group has always focused on brand innovation, scientific and technological development, talent introduction, product quality and platform construction, striving to achieve breakthroughs in the group. And the traditional industries, new Xinghua, new industries, and the internationalization of these industries, these three aspects, at present, we must constantly extend the industrial chain, because this is the way that we have today. This way is a historical reason for the development of the group enterprises. We started to make clothes, and later did foreign trade, and the foreign trade was very good. Later, we did a good job in the motorcycle industry, and later did the development of tire, cord fabric, aluminum alloy, feather and so on. The extension of the industrial chain was a portrayal of the development of the red bean group for several decades, and also an important reason for the vitality of the red bean group.

The responsibilities of Xi Feng, director of information department, are given more connotations in the continuous expansion and spanformation of enterprises. As an importer of the IT system, it is not enough, or as a member of the enterprise operator, it is not enough, but it needs to understand and integrate the enterprise development strategy and IT strategy. To put it simply, this is a post that requires a lot of skills. At first, Xi Feng, who was engaged in foreign trade procurement business, had a lot of thoughts on the construction of information technology in the business department. In 1996, he founded the information center of the group.

"At that time, it was still lagging behind, and software management was not paid enough attention to. With the establishment and management of information centers, there is a need for professional managers. Now there are more than 40 people, each company also has IT management personnel, three level enterprises also have, about 3-4 people. Xi Feng is better at IT planning, and for the two level enterprises involved in different industries and products, how to find a suitable IT plan is the key to success. "Different enterprises have different management modes and ideas. Separating IT from management team is more conducive to the development of the industry. We always think that IT is the assistant of management and management is the leading factor. Leaders' requirements for management are far away. Products and sales include IT system. IT management is a specialized organization of enterprises under the whole group.

"The red bean group has always adhered to the four major strategies: name, talent, culture and innovation. 2011 is the brand year, mainly the construction of several projects, to speed up the construction of red beans talents, distribution centers, improve visibility, reputation and satisfaction, reputation and so on. The clothing industry in the future is still a more important business. The sales of Taxus should reach 20 thousand plants, and the tires should achieve nearly one million sales and real estate. IT system is very urgent in terms of control at the group level, and in every subsidiary company and branch business, and it also has great challenges for us. " Xi Feng said: "we hope to have more opportunities to cooperate with those IT enterprises with distinctive characteristics, learn from each other's strengths, and integrate them into the red bean's overall strategy."