Wednesday, July 21, 2010

Dan Zhongshao: I want to lead by two years


In Dan Zhongshao (middle) who, it is easy to feel the Zhejiang Culture temperament.



* Dan Zhongshao Introduction

1963, Hangzhou Newgrand Software Corporation president. CPPCC Zhejiang Provincial Committee, executive director of China Software Industry Association, China's top ten software enterprises leader of outstanding private technology entrepreneur in China, the Ten Outstanding Young sixth Hangzhou, Hangzhou Software Industry Association, vice chairman of Hangzhou City District CPPCC National Committee members, the Standing Committee of China Democratic League, Hangzhou, Zhejiang Province, member of NLD Youth Work Committee.

August 1993, Dan Zhongshao floor with partners and boosting co-founded the Institute of Hangzhou Newgrand computer system. October 2000, Hangzhou Newgrand Software Co., Ltd. was officially established.

Dan Zhongshao continuing commitment to innovation and enterprise management software innovation and development of management thought. In 2003 he put forward the original resource plan based on Agile management URP thought publication of the "End of ERP" a book in 2004, partnering with the Beijing Xinhua published the letter, "End of ERP" companion "Taking Place - the story of Smart Union . "

Just past 2006, for Shizhong Shao and his Newgrand Software Co., Ltd. Hangzhou for a harvest year. This year, URP idea further recognition of domestic customers, market share steadily; Group Finance, Group management software to implement successfully, especially in the Group management solutions put forward, enhanced Newgrand customers in the high-end software the competitiveness of the group.

Clearly, Dan Zhongshao vision much more than that. He let his software solutions always two years ahead of the competition; to implement the service leadership strategy, the company should do, not bigger. These rock-style management concepts from the innovation for wealth, do not do software outsourcing from his firm's attitude is also evident. In 2007, for Newgrand it will be an important year, because the URP will lead the group overall management, as Dan Zhongshao has his sights on international.

Service for the management of the core

"Good companies will ultimately be selling services rather than selling products." Stone-style management philosophy is to serve the first to emphasize the core. URP to group management is optimistic in the e-commerce, URP service great potential for group management.

GUO Xu: 2006 This year Newgrand how the situation?

Dan Zhongshao: Over the past year we continued to advance in the field of high-end: some elaborate strategy early, mid-year SOA product, the end users to groups with financial, group management, URP communication, communication management at the Group successful application.

We divided into two types of group management, one is a multi-industry holding group. A group following many industries, such as in real estate, hotels, manufacturing, pharmaceutical industry, several blocks, is a multi-industry holding group. Multi-industry holding may be the state-owned enterprise restructuring, certain bureau or a certain group such as the Office into business.

A second body called the Economic Resource Alliance Group brand chief and type. This group is not big business, in fact, is a virtual value chain, like Hangzhou, Zhejiang, with which many of these brands. This brand is very strong upstream and downstream enterprises, which integrate the upstream suppliers and downstream distributors, not all of their investment, but a virtual business. It is this virtual group as Metersbonwe, its control is very strong. Of course it may have been franchise store, not his own investment company. This conglomerate is our future direction. Brand dominant enterprise is China's hope, its own brand, a single industry, virtual business, economic, physical operation of the Resource Alliance, this company is China's future development direction.

GUO Xu: Newgrand URP time made very long, URP any progress in ideology and practice of how the situation like?

Dan Zhongshao: URP thought we launched in 2003, and now we already have a number of real users of URP and some success stories. These customers should realize the economic resources that union body and optimize resource management, to optimize the management of the Union, the state body. For example, Shanghai Diesel Engine Factory, Hangzhou Automotive Engine Factory, they do the engine, more than 200 stores nationwide 4S, 4S shop that is more than 200 virtual management, many manufacturers are not investing, is to join the. 4S shops and auto parts needs engine sales, service, information feedback, which should be unified in the Internet platform to manage. We give it a URP program, all information can be sent to the latest service point, and then point to the customer service problems. The platform is a very good application of URP.

ERP previous question is that it's resources are not their own, all the ERP can not solve the problem. The focus of in-house ERP logistics, manufacturing, finance, does not extend to the alliance overall management body of the platform, system sales, collaborative services. Currently more and more companies like - to use the Internet platform and some of its partners in service-oriented organizational structure system, service-oriented process architecture. Why? As dealers, suppliers, customers, partners provide services, such services is the Agile approach. Such as McDonald's management headquarters to give the following services, to provide guidance. A dominant enterprise, its function is, both the guide, coach, but also a nanny, not only to provide services, but also provide the platform.

GUO Xu: You mentioned that the dominant enterprise is to provide services for the Alliance, does not mean it is a service industry, right?

Dan Zhongshao: We want to build service-oriented enterprises, but the company does not have to do the service sector. Service industry itself should provide services, it is directly for the final consumer. I just talk about service, refers to all business enterprises, there are service-oriented production. This kind of enterprise, we think it is a service-oriented enterprises, not service-oriented industries. Modern service-oriented enterprise is the trend.

GUO Xu: Newgrand from the internal supply chain and the angle of URP concept of the ecological environment, but WebService is raised from a technical point of view, but I feel there is a consistent ideology, I would like to invite you to talk about their similarities and differences.

Dan Zhongshao: WebService We have been studying the concept, it is business-oriented architecture, is a technical one. URP is in the process on. But regardless of what the modern business enterprise, we should have a technology or process the idea of serving. Bluntly in one sentence, service penetration to all processes inside.

URP's idea is to reflect a service, the Union's resources to the optimization of physical well planned, was asked to thinks of others, reduce the costs of upstream and downstream, will be very competitive. Therefore, management must use a win-win alliance body thought management, awareness must be services to management, resource planning body of such an alliance can do. If you only consider their own, do not provide services, not to the Union to provide a good trading platform body and the service platform, then the body of the league will be very poor service satisfaction, brand satisfaction are low, the end result is the impact of their own. To achieve URP management, there must be Service Agile thinking, would take into account all of the Alliance all the body, for the sake of union body.

GUO Xu: It is now very popular in e-commerce and vigorously promote the premise, URP, how are you have a good difference between e-commerce? How can complement each other?

Dan Zhongshao: We asked when the URP, and e-commerce is fully consistent, URP is the success of e-commerce pioneer dominant enterprise brand. Not just because of URP tube, but all internal and external control, is body-oriented alliance. E-commerce platform to help realize the URP must be a means of e-commerce.

URP ideas and e-commerce business model of successful enterprises are the same, their success is due to provide a new service. Alibaba to provide SMEs with an online publishing platform for all information and build their own portal, store platform. Including the payment of Po, Taobao is to provide services, there is no production and sales, just by way of members money, earn money.

Now Agile approach is to attract people through the Internet platform to solve the problem we sell. B2C in China now is very small, very popular in the United States. We order products online when the website is a sense of service. Site also Purchasing Guide, as we have in store as Purchasing Guide, you see clothes, he tells you how to do, and not to sell your product. With the development of the Internet and URP-depth, more and more services Shopping guide.

To get wealth from innovation

"My company should adhere to the path of innovation, outsourcing will not do." This is a rock-style management philosophy of an important principle. Newgrand goal is two years ahead of the competition in technology. In fact, in the promotion of the URP few years, they have done.

GUO Xu: Now we all accept the software level services, including customized services to large enterprises, more and more a tendency in this regard. There are many customization cost control, of course, now there are many new technologies resolved. Available products can still market performance in recent years, which shows that the software-level service is not that time, or have any questions?

Dan Zhongshao: This is a process that allows everybody to accept now is unlikely. For us, the software level increasing proportion of services that more and more to software development services. Do not make money selling software, but the service a lot of money, services, income increasing proportion of our company which has been high, this is the first.

Second, we provide software to the group, while the dominant enterprise, in fact, is also seeking to make software cheaper and higher value services to our customers with our technology center how to interact together, how to provide more Internet-based platform support, technical support easier, and how our customers better in a platform for exchange of inside, the same group as the construction of a QQ interaction. Providing such services more and more, more and more additional content, in fact, will ultimately reflect the many benefits. The price of software services in Europe and the United States the ratio is not high, and we just the opposite, but is changing. The future trend is that software is almost free of charge to the customer, but the service must be charged. After the adoption of software, including some advertising revenue, such as you use my software, if they can accept my ad, you can use free of charge.

GUO Xu: Domestic software Ye Hao, domestic corporations, or, in fact, is their biggest problem is how innovation. China also raised the concept of an innovative country. Have been doing for so many years Newgrand software, the proposed concept are innovative. What next step can continue to innovate, or innovation in the areas where there is difficulty to be overcome?

Dan Zhongshao: We continue to deny the company itself is growing up among themselves. Group Finance proposed in 1996, we first negate the others. Just launched in 2001, when the international ERP, began self-criticism. URP 2003, again denied his release, continue to innovate. Of course, we must first lead by six months or a year. Currently, we e-commerce solution is two years ahead of the competition. We are in 2003 and 2004 do, now opponents are actively operating. From launch to maturity takes time. We do model 2004, model 2005, project acceptance, in 2006 to promote, two years ahead of time. Therefore, we must keep to innovation, because we, after all, who later, but the technology we have to advance the above.

GUO Xu: What do you think support Newgrand innovation?

Dan Zhongshao: a culture. Our culture decided that we must be innovative to survive, we must lead rivals, some people do not dare to do, do not want to do, but what the future is very promising, we must try, no matter how much the price can not just follow others go, or must not have any living space. The second is our company's talents. We should be above the high-end talent that has been very good. These two points are the basis for our innovation.

GUO Xu: Do you think management philosophy on the role of management software in the end how much? Its success or failure of the management software will play what role?

Dan Zhongshao: management philosophy in terms of management software is essential. Because the technology platform through technology continues to follow up the input to do to upgrade, but if you can not be innovative management ideas, can not move forward, your product can bring value to those customers to upgrade quickly. If you are the advanced management concept, you can support the new business model, then it is a support business innovation. Software does not hinder business innovation, but rather to support business innovation. We provide a platform for enterprises to learn URP hopes the idea, hope they have a greater competitive edge. This ERP enterprise from a narrow ideological jumped out to a broader vision to see alliance structure.

Most do not do the best

"Which one of the plates is not large, which one would best." This is a rock-style management in the concept of business concept. Dan Zhongshao that only the pursuit of quality, pursuit of reputation, a good company to success. In 2007, Newgrand will try to reach the international.

GUO Xu: You do business in the URP does not have the radiating case, doomed to customers less, blossom everywhere this influence with others is not the same. All these years you are widening or narrowing the gap? This has nothing to do with the business strategy?

Dan Zhongshao: We Newgrand position, not the pursuit of the plate size. Our pursuit of quality, pursuit of these enterprises in which we locate how to do the operation fine. We care about is a word of mouth, is a brand. A good brand does not mean it the largest plate. Large domestic color TV which a plate on which one best do? Not necessarily. Is the same car, the plate is the largest public companies in the world. Volkswagen is the first brand? May not. Now entering an age of branding, not the plate is the first company of the largest companies. We are also learning such as the Toyota Fine thinking, can create such high quality as the Lexus cars. Each group has a preference does not mean that most who hear the name of who bought the software, it must trend. Our strategy for next year is very clear, that is service leadership strategy. The second strategy is the internationalization strategy, the new international market in the General Assembly.

GUO Xu: Newgrand how to consider the issue of internationalization?

Dan Zhongshao: We have tried, next year will give you some answers. These two strategies are very clear corporate strategy, leading services, fine service, etc. All of these are Newgrand to do. We are not after the plate much, but that I consider myself strong in this area, the brand and excellent, my customer base the most promising to me. Newgrand is a pursuit of fine service company in Hangzhou area with our brand image have a very strong correlation, we reflect on the good sense of service, service leader. Customers buy is service. Service leader is now the first strategy, internationalization is just a stage thing.

GUO Xu: how do you see the internationalization of China's software?

Dan Zhongshao: We caught the market to find, but after this market will enlarge, use our low-cost China - the most dangerous place is probably the most safe place. We kill to go inside the heart of the enemy, he may be a very promising product. But we do not outsource, many companies, so I am outsourcing, and I was refused.

GUO Xu: entrepreneurs should know not to do, before we know what to do.

Dan Zhongshao: Yes, must have a clear positioning, just as my previous position, do not fly that does not sit. I have a lot of Hangzhou leading to other areas, but were I refused. Newgrand positioning service fine pure software companies, software companies are the real Hangzhou is Newgrand, hundreds of R & D personnel are in Newgrand. An entrepreneur must have their own position.






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