Three major concepts followed during the transformation of engineering machinery

On the afternoon of November 28th, the 12th China Construction Machinery Development High-level Forum was held in Linyi City, Shandong Province. Vice President of Zoomlion Yin Zhengfu and President of Caterpillar (China) Investment Co., Ltd. Chen Qihua and other senior executives organized forum innovations. The themes of drive, quality first, organization optimization, and green development have delivered distinctive and enthusiastic keynote speeches.

After China's construction machinery experienced a period of high-speed development of gold, the industry once fell into the problems of overcapacity, low operating quality, few core technologies, weak brand influence, and insufficient capital operation capacity. At present, China's construction machinery industry has reached a crossroads and has come to a critical moment of transformation and adjustment. We urgently need to reflect on our development, and pay more attention to the development of a new sustainable development path with new development concepts, new products and technologies, and new internationalization strategies. The transition period of the industry determines that business operations must follow suit. The transformation. This transformation is based on the establishment of a new business philosophy. In the future development, we should pay more attention to nurturing and consolidating the three major concepts.

1, the rapid growth of competing ideas <br> <br> construction machinery industry, can not do without fully competitive environment. It is precisely because many industrial companies with different systems, regions, and masses have competed with each other on the same stage and each director of the institute has stimulated their respective vitality and created brilliant achievements in this industry.

However, the relationship between peer companies is not just a matter of competition. In an industry mature stage, we should adhere to a concept of co-opetition. Peers should not be opponents, but should be partners; they should not be enemies but should be comrades-in-arms. Because of the harmony of the industry, it depends on the behavior of each company; the future of the industry is also our common future. Enterprises should open up competition in high-end technologies, internal management, market development, etc., so that we can always feel the pressure of the market to maintain their fighting spirit and compete for development; in general technology, supporting resources, purification and competition environment, etc. should cooperate Create a new image of the industry. The concept of co-opetition should be an important indicator of industry maturity and enterprise maturity.

2, the concept of business quality priority

If we say that the previous decade was an era of scale growth, then the next decade will be the era when management quality is king.

In the past, we emphasized that the increase in scale was an objective reality for the development of the industry. Because in the period of rapid market growth, we must first increase production capacity and continue to meet market demand. In an environment where MNCs have strong influence, if Chinese companies do not achieve sufficient scale, they will not be able to compete with multinational giants on the same stage, and they will not be able to take a place in overseas markets.

We now emphasize the quality of operations and it is also an inevitable development of the industry. We see that the per capita average operating income, per capita profit, per capita assets of Chinese construction machinery companies are only 12.95%, 29.62%, and 1.57% of the world's top companies, respectively; the average profit level is only 12.06% of the average profit level of the world's construction machinery companies. This gap determines that after a relatively extensive decade of growth, China's construction machinery companies will inevitably pursue an era of refinement, efficiency, and optimal resource allocation. Enterprises with low operating quality and no core competitiveness will be eliminated by the times.

3, the concept of soft power

The history of the progress of human civilization fully shows that without active leadership of cultural power, without the great abundance of the spiritual world, without the full play of cultural creativity, even if a country or a nation has considerable material and technological hard power, it cannot be established for a long time. In the world of advanced ethnic forests.

This is especially true of companies. If we say that the previous decade is an era relying on the growth of tangible assets, then in the next decade, the power of intangible assets will be more manifested. A company’s brand image, spiritual culture, and management capabilities will become the most important factor in determining how far a company can go.

As early as 2,000 years ago, Lao Tzu advocated “taking soft gram just”. It can be said that in the process of Chinese companies becoming mature, soft power is no less important than hard power. A common vision, a sound mind, and an open and inclusive mindset are prerequisites for the achievement of world-class great companies. This is the direction of efforts of Zoomlion and all industries.