At the morning meeting of all management cadres on July 1th, 2022, Mr. Wang elaborated on work penetration and continuous breakthroughs from the aspects of overturning tradition, breaking through self, not staying in the comfort zone, and improving professionalism.
On Wednesday, I saw several promotional advertisements issued by company a in my circle of friends: a full set of stainless steel slingshot white frames are 3.5 yuan / pair, sunglasses stainless steel white frames are 2.5 yuan / pair, stainless steel wire core are 0.85 yuan / pair, and so on. Seeing these news, the company specially arranged management cadres to go to company A to understand the situation on the spot. During company A 's visit to the site, we also found that the white frame made of B titanium foot wire (the frame and other materials are ordinary materials) costs only 8 yuan. The wire core, stainless steel white frames and B titanium white frames produced by company A at such a low cost do not happen in Vietnam and Bangladesh, but in Wenzhou local enterprises around us. Middle and senior cadres of the company have read the "innovator's dilemma", which states that "products with destructive technology are usually cheaper, simpler in performance, and easy for customers to use". When these disruptive technologies or low price products are coming, are we ready to undertake and deal with them?
Subvert tradition and break through self
In 2005, Ouhai began to make stainless steel frames, and the base price sold to customers was about $2.5 per pcs. At that time, due to the immature welding process of stainless steel, desoldering often occurred, and the base price was slowly increased to $4.3 per pair. With the application and promotion of laser welding technology, the price of stainless steel frames has gradually decreased. Long ago, we heard that the stainless steel wire core of company a was only 0.9 yuan. During this on-site inspection, we saw that more than 100 people in company a were producing stainless wire core in full swing. According to their person in charge, they can produce 300000 pairs of wire core every day, but the supply still exceeds the demand. The price of stainless steel wire core is half that of traditional nickel alloy wire core. It is this subversive innovation that led company a to dare to make a bold statement that "in terms of wire core, we will replace all accessory factories in Yuhuan." Being a manager is to solve contradictions. Why can Wal Mart sell at a low price every day? Because they solved the contradiction of being both good and cheap. Every time I go to the United States on business, Wang Xun, the sales manager and I will go to Costco (Costco). Costco supermarkets are mostly brand products, and the price is close to the people. It is they who solve the contradiction between quality, brand and price that leads consumers to flock. In contrast, Kodak, as a brand enterprise with a history of 120 years, is undoubtedly one of the most important names in the photography industry. Although Kodak invented the digital camera in essence, it did not focus on it. The reason is that Kodak's traditional film, printing and other businesses brought huge profits, which led to its failure to break through itself, and was soon replaced by Nikon, Canon and other brands that mainly focus on digital camera business. For us, if we can't recognize who we are and break through ourselves, we are likely to be subverted by the times. If we can solve the contradiction between the focus of customers' attention (price and quality), when others are still raising prices, if we can recommend it to customers at a lower price, then we are like bringing cool wind to customers in hot summer. On the contrary, if we cannot solve the contradiction between better quality and lower price, we will have no foundation to become bigger and stronger, and it will be difficult to win competitive advantage.
Can't stay in the comfort zone
In 2007, through the systematic analysis of the global glasses manufacturing industry, we concluded that Hong Kong funded enterprises mainly serve class I and class II customers, and the products of class III and class IV customers are mainly produced in Wenzhou, Duqiao and other regions. Through market research, we also learned that due to limited resources, Hong Kong funded enterprises focus on first-class customer service, and sometimes sacrifice the services of some second-class customers in order to meet the needs of first-class customers. For second-class customers, they have their own brand, quality, delivery time and service requirements, and Wenzhou factory does not have the supplier qualification of second-class customers or cannot meet the service level expected by second-class customers. After years of sedimentation and accumulation, Ouhai's comprehensive capabilities in development, quality, delivery and manufacturing can undertake second-class customers. Therefore, taking advantage of the cracks in the cooperation between class II customers and Hong Kong funded enterprises, the company decided to concentrate resources on class II customers. Due to the precise positioning of the market and products, Ouhai avoided the homogenization competition with Wenzhou enterprises. At that time, we were all reformers, including Qi Fei, Chen Binhui, Zhang Rui and others present. Objectively speaking, some people in our team have the idea of laziness to use past experience to guide their work or lie in their comfort zone. For example, why can't the unit human effect of our plastic frame reach the human effect of more than 60 pairs per person per day of Huahong? Why can't our plastic shelves be delivered in 7 days like Huahong? I remember Zhang Ruimin said, "enterprises don't say you are successful. There is no successful enterprise, only the enterprise of the times". In the torrent of the times, we should keep pace with the times, constantly break through ourselves, and maintain the driving force of continuous reform. We can't sleep in our former advantages, nor can we live in the comfortable area. Only by "breaking and building", that is, establishing standards, breaking traditions and improving standards, can enterprises keep up with the pace of the times and achieve faster, better and stronger.
Improve professionalism and work penetration
It is company A that has carried out in-depth thinking and Research on processing technology, manufacturing level and raw material cost that has achieved some disruptive breakthroughs in some aspects, thereby reducing costs. Reflect on yourself, is our work as penetrating as company A? For example, why are our molds priced so high? Does our cost accounting penetrate into human efficiency, machine utilization, labor costs, processing costs, machine depreciation and so on? For another example, why does the production cycle of some customers' orders take 120 days or 90 days? Why can some customers deliver urgent orders within 45 or 30 days? Have we carefully analyzed the actual time required for procurement, contracting or each section? My children and I often tell the story of Columbus setting up an egg. In particular, when Columbus left the table after successfully setting up an egg on the table, he left a memorable sentence: "I can think of what you can't think of. This is where I outperform you." The meaning of this sentence is to tell us that if our thinking cannot make a breakthrough and our work does not penetrate, we will be like a mosquito living in summer. We will never know that there is minus 10 degrees Celsius weather in the world. Of course, without professional knowledge and skills to support, specialization, quality and professionalism, it is difficult for us to penetrate every work.
Managers solve contradictions. If we can't solve the contradiction between better quality and lower price, we will have no foundation to become bigger and stronger, and it will be difficult to win competitive advantage. If we don't know who we are and can't break through ourselves, we are likely to be subverted by the times. In the torrent of the times, we should keep pace with the times, constantly break through ourselves, and maintain the driving force of continuous reform, instead of sleeping in our former advantages and living in the comfortable area .That is, establishing standards, breaking traditions and improving standards, can enterprises achieve faster, better and stronger, and become an enterprise of the times. At the same time, we should penetrate every work by improving our degree of specialization and achieving specialization, quality and professionalism.