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Rethinking the Chinese Businesses in the Internet Age

Rethinking the Chinese Businesses in the Internet Age

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Rethinking the Chinese Businesses in the Internet Age

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  1. Rethinking the Chinese Businesses in the Internet Age Cai Jian(蔡剑),Ph.D. Deputy Director, GH-BPM Research Institute Guanghua School of Management Peking University

  2. Dilemmas Faced by SVC • S&S: Survive and Stay • F&F: Fortune and Family • R&R: Return but no Return • C&C: Connection and Contribution

  3. Outline • Doing business in China is very different • My experience after returning for 3.5 years • The projects done within GH-BPM PKU • A new framework to understand Chinese businesses • Data and research findings • A new attitude toward our career and life • The new way of thinking • Decision making and actions suggested

  4. Some of Our Work in China Routine Work: • Teaching (150MBA/EMBA, 20Masters, Yearly) • Normal Researching (Journal papers, Articles, Books) • Meetings (Forums, Conferences, Dinners) Action Research: • learning by playing community, started from 2004 • Collaboration with Hyperion to build the GH-BPM, 2005 • CCTV performance management consulting project, 2005-2006 • Written “White book of E-Business 2005” for Commerce Ministry of Commerce (the report states BPM as one of the hottest IT trends in 2005) • “Infortune” Program with Ministry of Commerce, 2006 • Advisory partner to Gome, Zhengda, and other universities, 2005- • Developed the world first BPM simulation game (for MBA): BizSim, 2006 • Management Innovation Initiatives, 2007 • ……

  5. Case 1: Value Innovation in Traditional Businesses D2S • D2S Model to Create More Customer Value • Move low cost solutions to higher profit • Use Government Policy Support • Out of Box Thinking Brings New Paradigm

  6. Identifying Customer Value Improving Access & Quality Leveraging Resources to Attract Supports & Adoptions Providing Scalable & Sustainable Solutions Case 2: “InFortune” Project of Ministry of Commerce China • Research Actions: The first used PC donated by PKU students in 2004; The ROI of the model was proved; Meet the high-level officials to demonstrate the idea • Environment: The No.1 document from the communist party 2006 to develop the new countryside of socialism • Impact: MC China sets up Internet service stations in 10000 villages each year, from 2006 to 2010, ¥100M/year

  7. Case 4: “BizSim” Project at

  8. Case 4: “BizSim” Project at • Research Actions: • Developed the Web-based business simulation game to support more than 10000 users to compete for awards. • Organized a national integrated media cup game with the largest PC retailer and CCTV in 2006 • Gathered and analyzed the profile and gaming data from thousands of students. Use 4Q search algorithm find the best. • Proved the concept of the first “healthy” online game in China. • Environment: • Most of the online games dilapidates kids and get evil impression • Millions of students play games but could not find jobs • Government is in dilemma to whether to censor online game • Impact: • 2006 China Management Cup attracted 2000 teams from 150 universities • 12 students got ideal jobs provided by top companies in China • The TV show will be broadcasted to 60M audience by CCTV

  9. History of the BizSim Competition 50000 人 预计10000 队 2007年 管理创新挑战赛 15000 人 3000 队 2006年 宏图三胞杯 6000 人 1200 队 2005年 光华杯 4000 人 800 队 2004年 爱国者杯 1500 人 300 队 2003年 健康杯

  10. BizSim: The Largest National Management Competition to Educate BPM Concept

  11. 2006 China Management Competition • 全国168所高校参加; • 两岸三地共计15000多名在校学生及MBA、EMBA参加了比赛; • 大赛在Google、Baidu等搜索引擎中始终排名第1; • 中央电视台经济频道《绝对挑战》栏目制作了四期大赛特别节目,并对大赛进行跟踪报道,6000万观众关注; • 网易做为独家网络媒体合作方,开设专栏并全程报道了本次大赛; • 新华社,财经,中国青年报,北京青年报,IT经理世界,北大商业评论,农民日报,计算机世界,新浪,搜狐,网易,中国MBA网,中搜,人民网等40余家媒体也对本次大赛做了详尽报道; • 宏图三胞、联泰集团、金光纸业等企业为本次大赛提供了近100万的活动赞助; • 联想集团、神州数码、宏图三胞、金融街控股、我爱我家、新加坡旅游局等企业为本次大赛的优胜选手提供了工作机会; 2006年中国管理竞争大赛简介

  12. 2006 China Management Competition BizSim大赛颁奖晚会: 科技部领导、北大校领导、企业总裁 为全国12支获胜队颁奖 新闻发布会 发布健康使用互联网宣言 全国40余家媒体到会并报道

  13. Dynamic and CharmingChinese Internet Businesses

  14. IT Companies Underperform in China Jian Cai, Why IT Companies Underperform in China?, 2006/12

  15. Economic Development 1980-2005按美元汇率估算的人均GDP(单位美元/人)

  16. Higher Education Increase 1952-2005年中国普通高校招生数(单位:万人)

  17. R&D Investment Decrease 1952-2005年中国国家财政用于科学研究支出比财政收入

  18. New Performance Source:The Fortune at the BOP Mid-Class BOP

  19. Segment 0 Concept Andrew S. Grove , Intel Chair

  20. How to Think the New Online Business Models VALUE = P×T×N^2 P: the average profit of an online transaction T: the number of transactions between two users N: the number of users New Business Value Formula PROFIT = (P – VC)×Q – FC P: the unit price of a product VC: the variable cost of a unit Q: the number of products sold FC: fixed costs Traditional Business Value Formula

  21. Learning Methods and Effects Target zone Success after Failure Gained Skills Real Experience Consulting To do Case Learning Practice Gap Class Discussion To study Reading Texts Variety of Knowledge

  22. The New E-Business Paradigm in China Identifying Customer Value and Testing it Improving Customer Access & Quality Leveraging Resources to Attract Supports & Adoptions Providing Scalable & Sustainable Solutions

  23. Research Findings • Western theories and technologies sometime become unpractical to Chinese E-Business. This create doubts of managers and students • The paradigm of E-Business model in China can be shifted to be more practical and profitable • “Power” and “Resources” are still among most important factors to affect the performance of a business • “Performance” of E-Business should not be treated the same as “Profit” for the new paradigm • On this topic, what we learned by doing is much more than what we learned by reading

  24. Rethink the Business Models in China • Rethink Chinese companies:From leading emulators to perspective innovators • Rethink Chinese government:From rules setter to service provider • Rethink customers: The paupers could become sensitive entrepreneurs and valuable customers • Rethink information: Information is right, to be able to access information is the basic human right • Rethink performance: It will create disaster if GDP becomes the only KPI of the government. The same if profit becomes the only KPI of the companies. • Rethink business school: the school might not be able to make the companies profitable, but it should help the companies and society to persistently seek sustainable development in a right way (with the power of creating applicable knowledge)

  25. The Tracks of Return or Not Return Achievement 2000 90 Time

  26. Establishment of Career Achievement Expectation Zone of dissatisfaction Capability Fulfillment Age Time 自我实现者

  27. Reality Oriented Achievement Expectation Zone of dissatisfaction Capability Career Start Time 面对现实者

  28. Out of Expectation Achievement Expectation Zone of dissatisfaction Capability Fulfillment Age Time 愤世嫉俗者

  29. The Real Needs of a Professional Growth & Development (MIND) Meaning, Integrity, Contribution (SPIRIT) Relationships (HEART) Financial Health (BODY)

  30. Discover Your Voice The 4×5 Matrix of Thinking Express Your Voice 聚焦 执行

  31. A Successful Entrepreneur • 要有长远的眼光 • 简单的复制成功者有可能就能行 • 雄心壮志(Think big) • 商业模型要被证明是可行的 • 需要有竞争者存在, 但你能够脱颖而出并获得成功 • 全明星团队: 技术,战略, 运营, 财务, 市场… • 专注, 对机会的挑剔, 重视品牌 • 善于管理财务, 精打细算 • 文化, 责任心, 强的结果驱动, 永不放弃 • 正确的人IQ+EQ, 坚强意志, 互补的技能, 共享的价值观 • 独立, 专注与客户 • 战略导向

  32. What Matters When You Return • 首先要找到自己的心声 • 聚焦什么是不能够做的 • 时机是关键,资源是基础 • 理解先入者的优势和劣势,尽早识别进入障碍 • 对相同的问题创造颠覆性的解决方法 • 理解你的竞争对手,理解你的合作伙伴 • 团队:定其交而后求,对客户:定其求而后交 • 创新能够生成持续的成功并保证成为业界领导 • 君欲取之,必先与之 • 世界级的企业不做恶事

  33. The Right Team Is • 正直是最重要的 • 创始人是领导者,定义了正确的文化 • 团队志同道合, 优势互补 • 自私是危险的 • 谦虚+强的结果=最合适的领导 • 创始团队要能够牺牲, 要显示其决心 • 团队成员对成功如饥似渴 • 历史记录并非总是有用 How to get this kind of team?

  34. What Do You Need to “Return” • A Right Team • Start Founding • Clear and Applicable Idea • Right Understanding to Chinese Business • Strong Technology and Product • A Network of the Essential Resources • A Group of Trustable Friends with Integrity • A Strong Commitment to Do What You Believe • To Summarize: You need a great platform!

  35. GH-BPM Institute Organization Committee Advisory Board Research Fellows BPM Research Institute Expert Committee Technical Research Project Promotion Partner Research Associate Project Manager Tech Staff Research Assistant Project Assistant Point of Contact Tech RA

  36. Service I: Applied Research Marketing Campaign Setup Project Customer Relation Result Leverage Projects Software Forums Founding Project Mgr. Articles Books Prepare Proposal Conduct Research Write Report Research Assoc. Online Marketing Technical Support Technology Transfer Technical Staff

  37. Service II: Fundamental Research Conferences Textbooks Setup Project Resource Fulfill Result Marketing Project Mgr. Explore Field Prepare Proposal Conduct Research Write Paper Research Assoc. Papers Explore Technology Technical Support Infrastr. Improve Technical Staff

  38. GH-BPM Help A Overseas Expert Committee Member Get: • Networks to Government Officials, Top Company Executives, Star Professors, and VCs in China • Business Plan/IdeaReview and Consultation • Access to Research Funding, Smart Students, Local Entrepreneurs • Book/ArticlePublishing in China • Opportunity to Teach PKU and Tsinghua Students The Platform to Make Things Happen and to Contribute (S&R: Stay and Return)

  39. What We Expect From EC Fellows • Time (Speech at PKU and Guidance to the Institute) • Creative Ideas and Management Experiences in US • Commitment to Make Knowledge Contribution to China • Purpose for Learning and Serving