entered the field of risk control compliance and contract legal digitization in 2004, then Huidian Technology incubated the "FaZhiYi" entrepreneurial project in 2018, and now independently established Beijing Taiji FaZhiYi Technology Co., Ltd., which has experienced nearly 20 years. With the precipitation and accumulation, Tai Chi Fa Zhiyi has completed a gorgeous transformation and entered the 2.0 stage in great strides.
Fazhiyi welcomes a new strategic starting point
As we all know, industrial digitalization and digital industrialization are two obvious characteristics of the digital economy era. Among them, industrial digitalization uses technology as a breakthrough to clear the blocking points between traditional industries and the integration of digital technology , so as to achieve industrial transformation and upgrading or overtaking in corners. The digital product formed in this process will be widely promoted in various industries, thus forming digital industrialization.
Xiao Yi, president of of Taiji Computer Co., Ltd., said that only by deeply cultivating the digitalization of the industry and developing efforts in all scenarios can we provide strong support for the digital upgrading of the industry. "Contract and legal management are typical management domain scenarios. Taiji Fazhiyi relies on the new generation of information technology to help enterprises solve the pain points of contract management and achieve efficient management and high-quality development. At the same time, as the process of globalization accelerates, compliance Operational capabilities will help enterprises better cope with international challenges. Based on a large number of customer practices, Taiji Fazhiyi will be able to better match the new demands of enterprises." Under the two-wheel drive, Taiji Co., Ltd. has incubated many leading digital companies, among which Huidian Technology is the most typical one. In recent years, they have made great achievements in the market through "several carriages" such as collaborative management, contract legal management, and mobile office. In particular, we have vigorously cultivated the Tai Chi Yi Yi business, making it one of the most competitive products in the market.
As enterprises’ demand for high-quality development becomes increasingly strong, Taiji shares have insight that the contract legal management market will usher in historic development opportunities. In order to seize this forward-looking opportunity, Taiji Co., Ltd. split the contract legal affairs, risk control compliance, and digital procurement businesses of Huidian Technology and established a separate "Beijing Taiji Fazhiyi Technology Co., Ltd." Doing so will be beneficial to Tai Chi Fa Zhi Yi's own business development, giving him better track and resource support. It will also help Huidian Technology focus more on its core business and develop collaborative office products.
During the "14th Five-Year Plan" period, Taiji will deepen the implementation of the "one body, two wings" development strategy, in which the industrialization of core products has become an important engine. After going solo, Taiji Fazhiyi will take product industrialization as a new starting point and use CLM (Contract Lifecycle Management) as the entry point to help Taiji Co., Ltd. deepen its value and make greater contributions in the management field.
Xiao Yi said that based on Taiji's in-depth understanding of the compliance management of state-owned enterprises, combined with new technologies and industry best practices, Taiji Fazhiyi's leadership in the CLM market will be shaped. At the same time, through co-creation with leading customers, the analysis and reuse of process data will also feed back product upgrades and iterations.
Make a breakthrough and face the crises and opportunities of the CLM market.
Enterprises are an important pillar of the market economy, and compliance is an important line of defense for enterprise operations. The central government proposed "comprehensive rule of law" as one of the "Four Comprehensives" strategic layout, and determined to accelerate the goal of basically building a "law-based country, law-based government, and law-based society" by 2035. In the context of this new era, it is imperative to accelerate the construction of a modern corporate compliance governance system and strengthen and improve corporate compliance management capabilities. At the beginning of 2022, the State-owned Assets Supervision and Administration Commission officially deployed the "Compliance Management Strengthening Year" work, with a view to establishing and improving systems and mechanisms to achieve the corporate legal construction goals of "improving governance, standardized management, operational compliance, and law-abiding integrity".
For many years, Taiji Fazhiyi has been committed to research in the field of legal compliance, starting from the field of contract management, using the idea of risk control and compliance, and empowering Chinese enterprises to develop high-quality development through digital technology.Tai Chi Fa Zhi Yi was also the first to introduce international CLM management concepts and information system architecture into China, and released the first domestic CLM industry research and analysis report, ranking first in domestic market share.
Adhering to the trend of digital economy, Tai Chi Fa Zhi Yi actively seeks change. For this brand-new company, Taiji Co., Ltd. has high expectations for Fazhiyi and its support for the business is also firm.
From a support perspective, Tai Chi Fa Zhi Yi will quickly improve its product and business capabilities. By giving entrepreneurial teams new platforms and spaces, it will stimulate employees' innovation vitality and create a more combat-effective team. At the same time, based on the platform effect, customer resources and industry experience of Taiji Co., Ltd., Taiji Fazhiyi will receive more resource support and obtain more business opportunities. In addition, Taiji Co., Ltd. will also input its capabilities in technology platform and operations to help Taiji Fazhiyi improve the service form of its products. Li Qing, vice president of Taiji Computer Co., Ltd. and chairman of Beijing Taiji Fazhiyi Technology Co., Ltd., said, “Whether it is policy, financial support, or customer injection, only by making a difference can we better serve the digital transformation of enterprises and . ”
Vice President of Taiji Computer Co., Ltd.
Li Qing, Chairman of Beijing Taiji Fazhiyi Technology Co., Ltd.
As the key point of integrating external transactions and internal management of enterprises, contract management carries the flow of funds, commitments to customers, and upstream and downstream the link to. From informatization to digitalization, enterprises' demand for contract management has exploded overnight, giving manufacturers such as Taiji Fa Zhiyi an unprecedented opportunity.
From the perspective of customer opportunities, in today's changing internal and external environment, contract and legal management, as an effective way for enterprises to develop high-quality, improve efficiency and prevent and control risks, have been favored by more and more enterprises. Its service boundaries are gradually being broken down and have been extended to high-risk businesses such as material procurement.
In terms of technical opportunities, with the help of AI, contract management is equipped with intelligent capabilities and scenarios; combined with big data technology, it can help enterprises improve risk control.
In terms of capital opportunities, combined with the strategic advantages of Taiji Shares and the support of the capital market, Taiji Fazhiyi will use capital to seize the track and achieve rapid take-off.
In the past three years, Tai Chi Fa Zhiyi has achieved considerable results. Not only has the compound annual growth rate exceeded 50%, but it has also served hundreds of large and medium-sized customers, with industry leading companies and large customers accounting for 20%. At the same time, the company has also made great progress in deepening the industry and establishing a market brand. It is not surprising to see it as the leader in the CLM track.
However, the enterprise service market is complex and crises coexist, and there are still many variables in the development of new companies. Li Qing said that products are the first element of enterprise development. Only with good products can we explore more development models and create greater market prospects and competitiveness.
Therefore, they will firmly focus on Taiji's strategic deployment, focus on cultivating internal skills, solidify business foundation, strengthen products and internal teams, and achieve a qualitative leap with the support of the capital market!
Reshape core competitiveness and empower central and state-owned enterprises to benchmark against world-class
"In recent years, China's CLM track has developed rapidly. The platform and independent development opportunities provided by Taiji Shares will help Taiji Fa Zhiyi obtain success in the 2.0 stage Bigger and faster development,” said Orui, President of Beijing Taiji Fazhiyi Technology Co., Ltd.
President of Beijing Tai Chi Fa Zhiyi Technology Co., Ltd. Euromonitor
This year is the final year of the three-year reform of state-owned enterprises, and benchmarking against world-class enterprises has also entered a critical stage. As central state-owned enterprises transform from the pursuit of scale to high quality, enterprises need to improve the quality of products and services through core technologies on the one hand, and on the other hand, they must improve risk control levels and achieve compliance operations.
Euromonitor believes that as we enter the deep-water area of digital transformation, how to improve corporate governance capabilities with the help of risk control and compliance digital products and make the overall transformation more effective has become an urgent priority for enterprises."Under the strategic guidance of 'digitalization empowers the high-quality development of Chinese enterprises', Taiji Fazhiyi has implemented risk control, compliance, internal control requirements, and domestic and foreign regulations into the basic capabilities of enterprise digitalization, and through contracts The starting point of management empowers enterprises to improve the effectiveness and high quality of their business activities, thereby providing a basic foundation for the global development of Chinese enterprises. "
Facing a more complex competitive environment in the future, we can only continue to improve products and services. The competitiveness of services can lead to sustained and stable development. What are the core competitive barriers of Tai Chi Fa Zhi Yi?
First, industry best practices. Taijifazhiyi contract legal management software has unique business advantages and has covered more than 20 key areas such as transportation, finance, new energy, electric power, and central state-owned enterprises, and has created many industry-based practices.
Second, they have accumulated extremely profound business advantages, including more than ten years of business research on risk control and compliance, and a thorough understanding of contract management models in various industries. This is an important weight for their leadership.
Third, Taiji shares’ platform empowerment. The ultimate competition in digital industrialization is the competition of the underlying digital platform, and this is another core competitiveness of Tai Chi Fa Zhi Yi based on the market. Taiji Technology injects big data, AI, security, as well as stability and agility capabilities into the underlying platform of Fazhiyi products, thereby supporting upper-layer applications to quickly respond to needs and change as needed.
Fourth, At the product level, Taiji Fazhiyi has created a complete set of mature product suites, including contract life cycle management, legal affairs management, risk control compliance, digital procurement, etc., and through continuous investment and Update and iterate to maintain the advancement of products.
In 2022, Taiji Fazhiyi released a new product suite on Taiji's low-code platform, including smart contract management, intelligent legal management, digital risk control and compliance management, digital procurement management, and "Ji Xiaoyi" smart application. There are several highlights in this release that I have to mention.
The first is smart contract management. The new product has three core design concepts: taking into account contract supervision and contract business development, avoiding or prompting possible risks, and contract data to assist business decision-making. Among them, strengthening contract supervision and assisting business decision-making are important features of the new product. The contract data middle platform will connect various business systems related to contract data to help enterprises achieve timely acquisition and intelligent analysis of multi-level contract data across the group, achieving "one point" With the goal of "implementation and multi-point sharing", it provides enterprises with a comprehensive analysis of operations and risk control. At the same time, the new product provides business-depth versions of more than 15 industries to meet the contract management needs of different industry business scenarios, as well as the connection between contract management, business control, and financial management.
The second is the "JiXiaoYi" smart application. Through the comprehensive application of artificial intelligence technology in contract management scenarios, functions such as intelligent drafting, intelligent review, intelligent comparison, and intelligent retrieval can be realized to help enterprises quickly handle simple and repetitive tasks, making contract management more intelligent and efficient.
The third is digital risk control and compliance products that are integrated, embedded, interconnected and supervised. This is a set of digital products that comprehensively cover risk, internal control and compliance under the regulatory environment of big compliance in 2022, and can realize "embedded" risk control and connected business systems. With the help of data middle platform, the risk control system is interconnected with other enterprise management information systems and state-owned assets supervision information systems, and big data, intelligence and other technologies are used to carry out real-time dynamic supervision of key areas and key nodes.
The fourth is intelligent legal management products. Use technology to realize the smart legal department of enterprises and innovate the form of legal services. Digitalize the work of the corporate legal department online, including dispute cases, lawyer law firms, legal review, rules and regulations, etc. Through the cloud service model, corporate legal affairs can work with external lawyers and agencies to know the work progress in real time. Apply big data technology to connect laws and regulations, similar cases, legal opinions, litigation-related services, litigation risk assessment, legal publications, journals, etc.
Finally, there is digital procurement. Taiji Fazhiyi has extended its contract management capabilities and built a full-process digital platform from procurement planning to procurement budget, procurement project establishment, bidding management , and then to contract management to meet the needs of enterprise supply and demand matching, resource integration, and internal and external collaborative procurement. Digital demands to create a more transparent and sustainable procurement business.
It is reported that the electronic procurement platform of China Electronics Technology Group Co., Ltd. is unifiedly built by Taiji Fazhiyi, covering more than 700 subsidiary companies, helping enterprises manage complex procurement transaction processes and achieve strategic sourcing and risk control. Euromonitor said that as the industry and scenarios continue to deepen, they will continue to improve their contract management capabilities, thereby stimulating the value of digitalization.
Be the game-breaker in China’s CLM track
As a new trend in the enterprise management field, CLM has been developing in the United States for more than ten years and has entered the fast lane since 2016. The total market value of addressable contract management services in the world has exceeded It has reached US$20 billion and is still growing at a rate of 35% every year, becoming the fastest growing field of enterprise services. The rapidly developing market has created technology unicorn companies like Icertis, which has received US$80 million in Series F financing and has a valuation of more than US$2.8 billion.
Different from the situation abroad, the domestic CLM market has only entered a rapid start-up stage since 2019. It is still in a relatively chaotic primary development stage, but it has developed rapidly. In recent years, many companies have gained the favor of capital. In the next 5-10 years, we believe that the CLM track will usher in a period of rapid development. However, domestic and overseas markets are different. The digitalization of enterprise contract management in China pays more attention to risk control and compliance, which is an important competitive advantage of Taiji Fazhiyi. At the same time, through continuous exploration and practice, Tai Chi Fa Zhi Yi has created many industry best practices in China's CLM track.
For example, Beichen Group, a large municipal state-owned enterprise, has built an integrated legal digital platform to create a contract full life cycle management system, case management system and legal risk prevention management system with Beichen characteristics. The new platform not only breaks the data island and realizes interconnection with finance, asset management, OA system , but also improves corporate data monitoring capabilities. More importantly, it supports corporate collaborative innovation and continuous compliance optimization.
Another example is Henan Investment Group , which has more than one trillion assets under management. Through cooperation with Taiji Fazhiyi, it has built a contract legal management platform covering the entire group and all business sectors, meeting the contract management requirements and needs of all assets under the group. Risk compliance control resonates with state-owned assets supervision while accelerating the digital transformation of enterprises.
As Euromonitor said, the next five years will be a critical period for the development of domestic CLM. Customer needs will become clearer and the track will gradually become clearer. In this process, the market will definitely give birth to several leading manufacturers with different characteristics. As the only leader with a state-owned assets background, Taiji Fa Zhiyi will lock the track from a strategic perspective, lead the Chinese CLM market to break through, and create the best path for the high-quality development of Chinese enterprises! (Chief Information Officer Xu Rui)
