Not long ago, at an internal core manager meeting, BOE announced a brand-new organizational structure and operating mechanism for the transformation of the Internet of Things based on the "object screen" development strategy. To put it simply, BOE broke the traditional business organization structure, took the product line as the core, and integrated some functions related to the display business, intelligent system innovation business and chief technology officer institution of intelligent IOT into the innovation business of Internet of Things, and established the leading group of innovation business of Internet of Things, including the intelligent terminal operation coordination group, the system scheme operation coordination group and the group innovation center.
In response to this crucial strategic and organizational change, Chen Yanshun, chairman of BOE, said: "The' object screen' strategy is the core guiding principle for the company's future development, which was summed up by the company in the transformation practice of the Internet of Things in the past few years. The adjustment of organizational structure is based on this core outline, which is product-oriented, market-oriented and customer-oriented. While fully stimulating the integration of enterprises' own capabilities and resource advantages, accelerate the growth of core capabilities and the development of emerging markets, and open the era of BOE's high-quality growth of Internet of Things innovation and development 2.0. "
After five years of exploration and practice, this major change has also released a signal to the outside world that BOE is getting closer and closer to becoming a global Internet of Things innovation enterprise.
March into the internet of things and seize the new blue ocean
In fact, BOE has long been eyeing the big market of the Internet of Things. Chen Yanshun gave a vivid example: A bowl of ordinary rice only sells 4 yuan money at most. When you make a rice ball, put a small seaweed on it and wrap a small piece of salmon with a good name "sushi", and you can buy dozens to hundreds of yuan for one piece, which is the value extension.
Where is BOE's value extension goal? In the internet of things. Today, BOE has firmly occupied the top spot in the global display equipment, with a global market share of more than 25%, ranking first in the world in many sub-sectors such as mobile phones, computers and tablet computers. In recent years, with the explosive development of intelligent terminals under the digital wave, BOE has emerged a new blue ocean of "intelligent display+Internet of Things application scenarios".
Recently, IDC, a well-known research organization, released the V2 global Internet of Things expenditure guide for 20021year, and predicted that the global Internet of Things expenditure would reach $65,438 +0.2 trillion in 2025, with a five-year (202 1-2025) compound growth rate (CAGR) of1.
This is a large enough market, and it is also very suitable for BOE, an industrial giant, to anchor a new direction. The basic components of the Internet of Things are cloud, tube and terminal. BOE has a strong innate advantage in the field of "end", that is, panel and port. What it needs to do is to achieve industrial chain extension and new business growth points by creating an industrial ecology of "screen is platform and screen is system".
Therefore, as early as 201165438+10.8, at the BOE global innovation partner conference, BOE put forward the concept of "opening two cores and holding your breath", which blew the horn of entering the Internet of Things.
On the one hand, BOE is constantly strengthening its "screen" ability; On the other hand, BOE is also strengthening its technical capabilities in artificial intelligence and big data, and has established BOE artificial intelligence algorithms and BOE Internet of Things industry application software to meet the different needs of different sub-sectors.
In the past five years, BOE has successfully seized some market segments of the Internet of Things. According to the data of Omdia, a market research organization, in 2020, the shipment area of BOE vehicle-mounted display has jumped to the second place in the world, and the market share of vehicle-mounted display above 8 inches has jumped to the first place in the world. BOE provides intelligent financial solutions for more than 2,000 bank outlets nationwide; Intelligent transportation solutions have been applied in Beijing, Taiyuan and Qingdao 1 1 subway lines, as well as Daxing International Airport and Capital International Airport. Smart Park solutions have been launched in more than 20 cities including Beijing, Tianjin and Chongqing. The "source-network-Netherlands" integrated zero-carbon comprehensive energy solution created by BSEOS (BOE Smart Energy Operation System) platform has carried out energy-saving business in Beijing, Hefei and Jiangsu, and deployed several digital hospitals in Beijing, Hefei, Chengdu and Suzhou.
However, BOE is not satisfied with this, but hopes to seize the opportunity of the great development of the Internet of Things and become a global leader in Internet of Things innovation in the next decade.
Five pull through, three horizontal and three vertical.
In order to seize this huge market opportunity, BOE must face the huge challenges brought by the Internet of Things. You know, the Internet of Things is a very fragmented market, with a wide distribution of customers and diversified needs, but the scale of a single order is generally small.
This is very different from the display device market that BOE used to be best at. In the past, BOE had more business dealings with big customers. To this end, BOE will set up a team or even BU to serve one or several big customers. Nowadays, IOT customers are scattered in all walks of life, and the annual order volume of a customer is much smaller.
"When the scale of customers is different, our measures, means and mechanisms for serving customers are completely different. To put it bluntly, you have to plunge into the customer pile, go to the front line, and go where the customer needs you, instead of doing the main business. " Chen Yanshun said that the focus of the reform of BOE's organizational structure and operational mechanism is to achieve five "connections".
1. The business has survived. Previously, BOE's team had different business departments, such as semiconductor displays, intelligent systems and intelligent medical workers. From the perspective of the Internet of Things, these business segments are actually interrelated, so they need to be connected.
2. The product line has weathered the storm. A complete product and solution of Internet of Things requires not only equipment, but also complete machines and systems, which requires organizational changes to open up product lines.
3. Spend the product life cycle. From planning to research and development, to manufacturing, to marketing, as well as system service and after-sales service, the whole product life cycle also needs linkage.
4. Cross the platform. The whole Internet of Things must be platformized, while the previous model of BOE was that Abu was only responsible for one or several big customers. In the future, BOE will establish a unified platform on which all products and employees will be based.
5. The mechanism is pulled out. In the past, BOE display devices had the mechanism of display devices, intelligent systems had the mechanism of intelligent systems, and intelligent doctors had the mechanism of intelligent doctors. It is now necessary to unify all these mechanisms.
Therefore, for the brand-new Internet of Things market, BOE is building a brand-new management model of "three horizontals and three verticals".
The "three horizontals" are agile foreground, capability middle platform and support background. By letting more employees go to the front desk and customers, it helps to grasp the real needs of customers. These requirements are fed back to the competence center, and the products are delivered to the front desk through BOE's strong technical and product capabilities, supply chain capabilities, manufacturing capabilities and quality capabilities, so that the frontline battlefield can develop rapidly. The back office is the rear area that provides support for the front-line troops, undertakes the business support functions of the group such as personnel, finance and auditing, and provides authorization and guarantee for the stable operation of the front office and the middle office.
"Three verticals" is a vertical management system that runs through the front, middle and back office, and it is strategy, process and performance. Strategic management is a "direction" and a consistent goal, with clear strategic direction and landing measures as the core, rather than fighting separately. Process management is to "improve efficiency", which is guaranteed by constructing a value-oriented, efficient operation and risk-controllable process management system; Performance management is "activation", based on professional team and market-oriented performance appraisal mechanism, so that employees who can create value for the enterprise can enjoy the dividend of enterprise development and mobilize everyone's enthusiasm.
Call for artillery fire and face the challenge
Chen Yanshun, who has worked in BOE for nearly 30 years, deeply feels that the biggest test of this change is the change of management thinking and management culture. In the past few years, the business model focusing on key customers and display devices has created BOE's intensive and asset-oriented management model. The company's culture emphasizes control and obedience, and has always been a management model of "horizontal to edge, vertical to the end". How do employees adapt to the new management mode of "strict trunk and authorized branches and leaves"?
"Now, the function of our leaders is not to command, because every link and individual is a commander. What we have to do is to empower everyone and let everyone play their role better. " Chen Yanshun said that people who can hear and see the gunfire at the front line must command the battle.
Chen Yanshun believes that the key to completely change BOE's inherent corporate culture is to get rid of the habitual thinking of the core management. The new management model puts forward higher requirements for the core management: they empower the front desk and the middle desk, provide artillery support, and at the same time "fire" themselves.
"Now I spend a lot of time and energy indoctrinating our cadres to transform, to change their concepts, and to turn to people without changing their concepts, because the changes in the market are not for you to decide." Chen Yanshun hopes to form a methodology system of theoretical guidance and practical guidance for BOE's transformation in the field of Internet of Things within five years through continuous exploration.
From the global semiconductor display leader to the global Internet of Things leader, this is the development goal that BOE has set for itself in the next decade. The great ship has set sail towards its goal, and it needs more firm determination and efforts to reach the other side of success smoothly.