On December 21, 2018, the "Innovation·Empowerment | Second Management Innovation Summit Forum" was successfully held in the Weilun International Seminar Hall of Tsinghua University of Economics and Management. This forum is sponsored by Tsinghua Management Review and co-organized by Tsinghua University Technology Innovation Research Center, Tsinghua University Alumni Development Center, Tsinghua School of Economics and Management EMBA Education Center, and Tsinghua School of Economics and Management Senior Management Education Center. It will jointly find outstanding management scholars, business leaders and outstanding enterprises who lead the beauty of wisdom, business, industrial innovation and the tide of the times in the context of Chinese enterprises' transformation and upgrading. "Tsinghua Management Review" selects the top ten management innovation leaders in 2018, the top ten management model innovation enterprises in 2018, and the top ten books in 2018, the top ten management model innovation enterprises in 2018, and the top ten books in 2018, from the five dimensions of "value, innovation, forward-looking, growth, and new-minded".
Chairman and President of Gree Electric Appliances Dong Mingzhu Ms. Dong Mingzhu , Chairman of iFlytek Co., Ltd. Liu Qingfeng , Chairman of Zhejiang Geely Holding Group Co., Ltd. Mr. Li Shufu, Chairman of China Sinochem Group, Mr. Ning Gaoning, Chairman of Acer Group , Mr. Shi Zhenrong , won the award of "Top Ten Management Innovation Leaders and Practitioners of 2018". Mr. Wang Jianzhou, former chairman of China Mobile and president of the China Listed Companies Association, presented them with awards.
Mr. Shi Zhenrong, founder of Acer Group, attended the forum and delivered a wonderful speech entitled "King Way and Dragon Dream". The following is the full text of the speech.
Mr. Shi Zhenrong
Founder of Acer Group
King's Way and Dragon Dream
Today I want to talk about "King's Way and Dragon Dream". This year marks the 40th anniversary of the creation of the song "The Session of the Dragon". At that time, we were greatly influenced by this song in Taiwan, so after I founded Acer (Acer) in 1976, I proposed that "Chinese people can be proud on the international stage of high-tech."
By 2016, I went further and proposed that "Chinese people made specific contributions to mankind in the era of silicon civilization." "Silicon", which is mainly based on technology, was originally called "silicon", but later changed to "silicon".
Stan The evolution of Brother Dragon Dream
I have an nickname - "Brother Stan". Once I had a conversation with Ashin, the lead singer of the Mayday Orchestra. He called me "Brother Stan", and I liked it very much. So it has been used to this day.
I am now the chairman of the Zhirong Foundation. The so-called "using wisdom integration to cultivate wisdom dragons" means cultivating wisdom Chinese through the integration of wisdom. In order to get closer to my young friends, I call myself "Brother Stan", although I am 74 years old this year.
In 1976, I founded Acer for NT$1 million, or NT$25,000, which was after the Second Industrial Revolution. 250 years ago, we did not pay attention to the first industrial revolution, so we lost the opportunity for the entire modernization. So when I founded Acer, I called on young friends to find a way to seize such an opportunity. In the second industrial revolution, if we do not make any breakthroughs, we will become sinners of history. Acer needs to be a gardener of the processing machine, not a sinner of history. This is 1976.
In 1981, Acer began to be the first professor, in 1982, Professor No. 2, in 1983, Acer launched personal computers. By 1986, personal computers became very potential and grew very fast. So we proposed "Longteng International" and "Dream of Dragon Comes Real". We Chinese should start to be active on the high-tech international stage, be able to be proud and dream come true.
In 1989, I proposed "Have technology in mind and look at the world" and use technology to face future development. The vision of the entire Taiwan is to be a science and technology island, be friends with the world, and make specific contributions to the local society.
was very fast, and this proposal was echoed by everyone. In the 1990s, Taiwan's high-tech industry developed very rapidly. In 1996, I proposed that it was not just one technology island, but a humanistic technology island, which was the most important ultimate goal.
2016 happened to be Acer's 40th anniversary. I proposed that for the new generation of Taiwan, it should be an innovative silicon island (Si-nnovation), just like I inexplicably created the " smile curve " and became popular inexplicably.This Si-nnovation is actually , Silicon Valley, , no longer has silicon, but it is still the main source of global innovation and the birthplace of global emerging industries. How to use silicon (Si) as the basis for innovation? I am a director of TSMC. TSMC is the company with the most applications and most influential silicon (Si) in the world, even larger than Intel, because it has a large number of customers and has made specific contributions to the entire Si application. How can Taiwan continue to apply these foundations to make more innovations? This is the question we need to think about. In order to better understand Si Si civilization, I went to Google to search and found that the so-called human civilization is related to technology. For thousands of years, civilization has been established because of the advancement of science and technology. After each industrial revolution, there is one more civilization. The invention of computers is a civilization, and the emergence of the Internet is the same. Now artificial intelligence and the Internet of Things are the foundations of civilization. The mainland and Taiwan have made concrete contributions to human material civilization. However, although our ideological and cultural ideas and cultures were ahead of the world in the early days, in the past two or three hundred years, Western spiritual civilization seems to have become the protagonist of the world. How can the Eastern silicon civilization integrate with the West and make specific contributions to mankind?
Therefore, in terms of application innovation, we must integrate our thoughts and spiritual civilization into our products, software, and services. This is one of the things we should think about in the future.
I have consistently followed the above.
King's Way, the strategy of leaders
2500 years ago, Mencius proposed that the king's way is the way of king. Today, the kingly way is the leadership of leaders of all major and small, and is a management philosophy and strategic thinking that keeps pace with the times.
The three core beliefs of the king’s way: sustainable management, value creation, and balance of interests
The three core beliefs of the king’s way are "sustainable management", "create value creation", and "balance of interests". I shared it with my EMBA colleagues in Beijing or Shanghai. They told me that this is "heaven, earth, and man". Heaven means self-improvement, earth means virtue to carry things, and man is just benevolence and etiquette. In order to operate continuously or continue to operate, value must be continuously created. Leaders should use social resources to create value. This creation of value is co-creation, not that someone can create it. The buyer and seller are also co-creation, and all stakeholders can create it together. Therefore, we must build a mechanism for balance of interests, that is, humanity. "benevolence" means the relationship between many people, and "ritual" means balance.
Six-sided value general ledger theory
creates value. When facing costs, you must consider direct, indirect, tangible, intangible, present and future. Leaders must consider these six-faced aspects to create total value. However, most people attach more importance to direct, tangible, and current explicit values, and the implicit values are easier to ignore. Especially when capitalism designs votes in democratic politics, it mainly focuses on explicit values, and the quantitative indicators of management systems and KPIs are the same. Therefore, the progress of human society and the creation of explicit values are well measured in a systematic manner. But in fact, in the true total value, the implicit and obvious must be balanced, and indirectly will affect the direct, and the invisible will become tangible. The future and the present are related, and the six-sided balance is very important.
When a leader, you must consider these aspects. With Acer's management thinking, I spent a lot of time doing decentralized management and tried my best to authorize it. I enjoyed the power and lost it, just to provide everyone with a stage and environment so that people can realize their potential. Investing in the cultivation of talents is indirect, intangible, and future value creation, which is very important.
Balance of interests: Interests (also six-sided) are major incentives for creating value
Balance of interests has no absolute balance, only relative and dynamic balance. Because time and space are constantly changing, the value of each resource and the contribution of human beings may not be exerted in a timely manner, so we need to constantly adjust the mechanism of interest balance to give everyone good incentives and ensure the exertion of team strength and continuous cooperation to create value.
West, winners take all; East, coexist and prosper
Western culture is winners take all, competitive thinking. In fact, the kingly way also emphasizes competition, and the kingly way emphasizes a leader using relatively limited resources to create a relatively large six-sided total value. If value is not created, it means that it is not kingly, and the kingly way must be able to create value. Our Eastern thinking is to coexist and prosper together, and we all build a harmonious society together, so the starting point of the entire thinking between the East and the West is completely different.
The advantage of the winner taking all is that the inducement is very strong, but self-interest may not necessarily be altruistic. In my basic thinking, for the sake of self-interest, we have to consider altruistic, so altruistic is the best self-interest.
from CSR to PSR. Although I retired from Acer, I did not retire from society
I started my career from the beginning and now I retired to do my career. In fact, career and career are integrated. I have never thought that making money is a goal. Making money is a must, and it is also a condition needed to operate continuously. So while running the business, I create a lot of hidden value for the society. What I spend the most is the cultivation of talents. In Taiwan's high-tech field, there are many colleagues who "graduate" from Acer, because what they have learned from Acer are more kingly thinking, decentralized management model, and paying tuition for employees. I think it is my career, which can truly make specific contributions to society indirectly, intangible, and in the future.
I am now working on the Zhirong Foundation, which is operated by a social enterprise. Its business model is to let users pay and sponsors think it is valuable, so that the public welfare undertakings in society can be sustainable. The social enterpriseization of public welfare undertakings is also the experience gained by Western society after many years. Doing charity is not just about donating money, but your thoughts, experiences, and influence may be more important. I and Mr. Chen Jin, professor of the School of Economics and Management of Tsinghua University and executive editor-in-chief of "Tsinghua Management Review", talked about the digitization of ancient Chinese medicine books last night. This is probably because traditional Chinese medicine can make specific contributions to human civilization. In this process, if we want to be able to develop continuously, we must have the thinking of enterprise-oriented management, so both implicit and explicit can be sustainable. In fact, this is a balance problem. 0 and 10 are imbalances, and 0.1 vs. 9.9 or 1 vs. 9.9, and 1 vs. 9 may already have a balance point. It is not necessarily that only 5 vs. 5 is the balance point, because the difference in time and project, the balance point is different. But you can't just invest in tangible resources for implicit value, and you can't produce explicit value without producing explicit value. This won't work, because there is no continuous development.
Five "Top Ten Management Innovation Leaders and Practitioners of 2018" group photo
From left to right are: Mr. Wang (who received the award on behalf of Mr. Gaoning), Ms. Dong Mingzhu, Mr. Wang Jianzhou, Mr. Liu Junfeng (who received the award on behalf of Mr. Liu Qingfeng), Mr. Shi Zhenrong, and Ms. Zhang Aiqun (who received the award on behalf of Mr. Li Shufu)
In 2004, I retired from Acer, and I also hope to have a new vision, and not stop like ordinary Chinese people, just like those of you, and you will die. So I retired at the age of 60, and I hope that the company can pass on its heritage effectively. But I did not retire from society. Everyone thinks that I seem to be idle after retirement. In fact, it is not. The only thing is that I have less pressure because I have a heavy sense of responsibility. Although I have tried my best to authorize and enjoy the power to lose, you have to be fully responsible for your success or failure as the chairman of the company. Although the work has been outsourced, the responsibility cannot be outsourced, which will also have an impact on your body. After retirement, I will calculate as much as I do. If the pressure is too heavy, relax a little. It doesn’t matter if I am late and leave early every day. Although it does not have to do with time, I use my brain a lot. Last week I went for an MRI examination on the head. My brain is not so physiologically ideal, but it is very functional. This is because I use my brain every day. So I am from the company, the social responsibility of the company has become the social responsibility of the individual.
I mentioned earlier that Taiwan wants to be a humanistic technology island. I not only said that, but also did this. I am now the general convener of the Taiwan Cultural and Technology Industry Development Alliance. I hope that new media art creation and cultural dissemination can be thought through the application of technology. In fact, technology is also a new media.
Belief in creating value and implementation
Speaking of creating value, I have a basic belief: challenge difficulties, break through bottlenecks, and create value. In 1996, I wrote my first book, "Recreating Acer". Because I don't know much about writing, I used oral instructions. The author of the book asked me what my motto was, because I was a science and engineering graduate, and my thinking was still logical: to create value for society, what is cheaper to do is to find a bottleneck where there is a bottleneck, and then find ways to break through the bottleneck. Because of bottlenecks, value naturally cannot be reflected, and a lot of value is wasted. For example, Acer's corporate culture is based on human nature, decentralized management, masters do not keep their hands, pass on wise men but not children, etc. These are all some bottlenecks that break through our traditional social thinking. Of course it is difficult to break through the bottleneck, otherwise it will not be your turn. Maybe it will not be the bottleneck for a long time, so we have to challenge difficulties every day. I have no interest in making money simply. We must have challenges and create value. If you wake up every day and find that there are no difficulties to challenge, I don’t want to live anymore, and there is no meaning to live. Living is to challenge difficulties.
The method of implementing value creation is also very simple: think in reverse and be positive and optimistic. Me too is not my style. Usually, I think about it this way, but I think about it the other way around. If you think about it, you may not necessarily have the correct answer. However, at least when you are innovating, you need to look in the opposite direction. It may be ten degrees worse than the original direction in the end, but you have to look from the original direction. That ten degrees cannot be found. Only by slowly looking from the opposite direction can you find the feasibility. It is actually very simple to have a vision. Everyone laughed at me for being too ambitious. The media said that I am far-sighted. In my opinion, these two are exactly the same. The most important thing is to be pragmatic in order to be high and far-reaching.
is always optimistic in the future, so we have dreams, and we are constantly pursuing dreams and doing things pragmatically. The dream project is not ten or twenty years, but fifty, one hundred years, or even hundreds of years, so this is one after another. Acer originally had a marathon spirit, but later it was changed, called a relay marathon, which means that we hope that everyone will continue together from generation to generation.
starts the transformation with a kingly thinking, change your head first and then change your people
Our Acer has been more than 40 years since its establishment. High-tech companies around the world have lived for 40 years, and there are not many senior IT companies than ours. We have also experienced many changes, and the thinking of change is very simple. It turns out that where there are problems with value creation, you need to find new methods and new areas to create value. The kingly way is to talk about creating value. How to use an organization or a system to enable stakeholders to create value together is that simple. So you must face new directions, new vision, new strategies, and new organizational culture. We must consider new models of innovation and create value and continuously adjust the mechanism of balance of interests. Only in this way can we continue to develop. This is the whole kingly thinking.
The most critical and difficult thing in the transformation of
is actually the change of thinking. It is very difficult to turn thinking, so I often have to change my head before the transformation. When Americans want to change, they will change their people, because they will naturally change their heads. But there are a lot of American talents, and our Taiwan talents are limited, especially management talents. Of course, there are more and more people now because the stage is getting bigger and bigger. When there weren’t so many talents back then, it was extremely difficult for you to change people. Especially in our organization, we must also convince people with virtue. It is not that you can handle it by putting you in that position, but you also need good interpersonal skills and personal connections. So if the Chinese organization wants to change, based on my experience in recreating Acer in the past three times, I should change my head. You can't change your head, and in the end, you will change someone. Of course, people who don’t change their heads have to change people.
1992 Acer recreates, a global brand, combined with geographic
1992 Acer hits a bottleneck for the first time, which is also a very important turning point in the IT industry. Personal computers have begun to have a breakthrough development. White-branded desktop computers account for 50% of the global market, and branded desktop computers only account for 50%. In the 1990s, the entire IT industry was changing, and the entire ecosystem shifted from vertical integration to vertical division of labor. The issue of "Havard Business Review" in July 1991 proposed two major industries in the future - the computer industry and the semiconductor industry. Computer companies do not manufacture computers, and semiconductor companies do not need to have their own wafer factories. That is, these two world's most important industrial models have been transferred, and the initiator is in Taiwan. In 1983, Acer used its own brand to promote computers to the world, letting the world know that Taiwan also has the energy to develop computers and can produce high-quality products.
TSMC, which is famous for wafer foundry, has been chairman of Zhang Zhongmou in 1987 and was puzzled how to enter the semiconductor industry. Finally, she came up with the model of wafer foundry because in 1983, 1984 and 1985, many Chinese in Silicon Valley came out to start businesses and designed many ICs, but they didn’t have the money to buy equipment. So in that situation, Zhang Zhongmou came up with the business model of wafer foundry, which changed the entire ecosystem.
The 1990s was a very important period of development and change in the IT industry. Acer itself hopes to be a global brand, but the entire Taiwan market accounts for less than 1% of the world market. In this case, how can it become a globalized thinking? I proposed "Global Brand, Local Touch", that is, "global brand, combined with geographic region", Local Management, and even hoped to achieve Localshare. The entire decentralized style, there are Acer everywhere, and Acer everywhere, but different shareholders and locals hold large shares. This kind of Local share was not successful in the end, but my thinking was like this, that is, Acer reinvention in 1992.
In terms of organization, in order to effectively grasp the situation of various regions and different products, I used the client-Server Organization, the desktop PC is very large in size. If it is transported normally by sea, it will take one and a half months to reach the market. At this time, the technology is no longer new and the product has no competitiveness. So I used the McDonald's-style fast-food production and sales model to move the assembly computer to the market for assembly. I drew a smile curve to communicate with our colleagues, especially those in the manufacturing department of the science park, with the purpose of which was to move the assembly company overseas. There is a word in Japan called industrial hollowing, which politicians don’t like because of employment issues. We moved resources from assembly without added value to parts, motherboards, etc. with more added value. This is on the left side of the smile curve, and on the right side of the smile curve, it is moved to services that can be planned worldwide, because Acer began to use the smile curve in 1992, and in terms of productivity, it can grow by more than 50% per year. The master-slave structure means that every business unit can be the leader. I call it the Dragon Group Plan and hope to cultivate 100 general managers, "If the dragon dream is to come true, the dragon Group will have no leader first." In the 21st century, there were twenty independent listed companies, each listed company operated completely independently, and was responsible to every stakeholder, especially different shareholders and employees. There was no central control thinking in it. This was my thinking in 1992.
2001st century changes, please ask the Italians Ranchi CEO
2000 Before we invested a lot in the Internet career and encountered the dilemma of being abusive. When Acer recreated in 1992, it was financially hard, but in 2001, it had a lot of financial funds, but the model was wrong, because Acer was one of the few computer companies that made computers, and there were only two computer companies in the world that made computers. One is Acer and the other is Asus, and Asus is from Acer. We can only follow the general trend, follow the trend and prosper, and fall against the trend.I thought of dividing the original research and development manufacturing department into Weichuang. Acer only focuses on managing the brand. I told them that there is nothing in Acer in the future, only four words left. Acer is the four words of management of Acer. This brand has indirect, intangible, and future intangible value. Few Chinese companies only focus on brand management. The reason why Acer does this is because of the experience and energy accumulated over the years. It is not because it did it on the first day of its establishment, unless the entire industrial environment is very mature.
Mr. Shi Zhenrong, founder of Acer Group,
We also proposed a different division of management responsibilities from other companies around the world. Generally, multinational companies use headquarters as the profit center, regional headquarters or regional companies as the cost center, all operations are only brands, and the rest are outsourcing, so we reverse it, and of course today we reverse it.
Judging from the development of multinational companies I know, the general trend is that the headquarters' management and sales expenses are constantly increasing, so there is no competitiveness in the whole world. Because it is easier to control other people's costs, it is relatively difficult to control one's own costs. Therefore, we specially designed the headquarters as the cost center at that time, which made Acer reach the second largest PC company in the world from 2001 to 2010. At the same time, I boldly appointed an Italian, Mr. Gianfranco Lanci, as our CEO, which is a very important change.
In order to allow such a large organization to face new changes, I attach great importance to communication. Terms such as Smile Curve, Longteng International, etc. were created by me, mainly to let everyone know what the strategic direction of the entire company is. So we took the new Acer as our positioning. The first change was still the original Acer, but the strategy was different, but now it is the new Acer. We are Mega Startup, because the business model is completely different. It is the concept of a large startup company. I hope everyone can understand this mentality of a large startup.
2013 Sanfada Acer, invited 40-year-old minister Huang Shaohua to be the new chairman, and at the same time made good inheritance arrangements with Chen Junsheng
By November 2013, I was very reluctant to be invited back to be the chairman. This is a task in the face of danger. I believe that the transformation and inheritance of the enterprise must be the DNA and genes of the entire organization. Therefore, as the founder of Acer, I cannot deprive the entire company of the DNA ability to cultivate this self-inheritance and self-information, because change is a normal state. In our IT industry, it will change every ten years. At that time, I decided to transfer the position of chairman after the re-election of the director in 2014. At the same time, I have discussed with Mr. Huang Shaohua, one of the co-founders of Acer, and an old minister of forty years, and invited him back. In fact, Mr. Huang Shaohua was already very happy with his retirement life at that time. He played golf every day. When I asked him to go back to Acer, their family had five votes, and he did not count them. The other four votes were against him. I only voted in favor. But because Mr. Huang Shaohua's wife, before we founded Acer, we worked together at Rongtai Electronics. Both of them were my subordinates. I told their youngest son that if it were not for my family to introduce your parents to know each other, there would be no you. So the weight of my vote was a bit heavier. The so-called different rights of the same share. Later, Huang Shaohua also agreed to come out to help. After I stepped down, he would be the chairman of the board. At the same time, I also negotiated with the next chairman Chen Junsheng to let Chen Junshi be the CEO first, so as to make the inheritance plan.
The new positioning of the entire company is Xinxin Acer. Acer’s past thirty-five years is equivalent to hardware-based. In the future, software must be added, services, and even services must be used as the main focus. In order to provide services, we have to consider having hardware and software. Our ultimate goal is to become a service company, which is a big transformation.
After our transformation, the management culture is actually completely different, and the objective environment is not easy, because Taiwan’s market is very small. The advantage is that if there is a small market to experiment with the entire new model, it can make it more mature. In addition, Acer’s global popularity and global service energy can quickly bring it to the international community. That was the era of cloud computing, and everyone was mainly public clouds. In this regard, the United States was already very common. We always had to take a different path. Because there was no space for public clouds, I proposed a vision and direction of BYOC (Build Your Own Cloud) self-built cloud, which is also related to decentralized management. In the future, the world will definitely be built on its own cloud, which is generally used in public clouds, and is mixed. However, all industrial developments, from the development of the computer industry and the development of semiconductor industry, are relatively large at the beginning, but in the end, they will slowly divide the labor. So this is the effective method after it is mature. Especially recently, you can also see that AI has talked about AI in the end. In the past, everything was done in the central government to do AI planning.
Later, the concept of IoT (Internet of Things) networking was introduced. In fact, there are differences in the translation of Thing. Thing is not just things, but also things. When things happen, big data will be included. Things sensed by things will become big data, which will be considered by the so-called artificial intelligence. So I proposed the concept of IoB (Internet of Being) intelligent networking. The company needs to look to the future, and we must take a path that is completely different from others. We must be confident within and believe it with confidence. This path is future-proof. Fortunately, what I talked about in the past is more reliable, so everyone will believe me.
Later, everyone was talking about Hardware + Software, so I proposed BeingWare, because if you want to connect smart to the Internet, you need BeingWare, which I call Zhiyun Sports. The entire development strategy is that I use SO-Techfor3rd World, because we are a technology company and a service-oriented technology company. The practice is to target Third World . In fact, Acer's past brand strategy was to use the model of surrounding the city with the countryside and slowly enter the big market, which is called a global brand. The definition of the Third World here is different. My definition is that the worlds outside G2 are called the Third World, Europe is also the Third World, Japan is also the Third World, and only China and the United States are the First World.
We must be pragmatic in our ability. During the entire process, the entire company was rejuvenated and inherited. Now the front line leaders are all in their forties, and they are a little older than their friends in mainland China. Jack Ma went to Taiwan to say that people in their seventies have not innovated. However, I prove that people in their seventies seem to be able to innovate. Of course, we still have to rely on being younger and launch a new group of dragons at the same time. The Dragon Plan itself is decentralized management. The New Dragon Plan hopes to have new career development in large organizations, and the development of new careers requires entrepreneurial spirit. Organizational management and management methods are different. How to structure a new mechanism for balance of interests is a problem that has not been solved in the whole world, including the United States today. We want to make a breakthrough and hope that in the next five to ten years, we can propose some new theories.
Listen to my mother, it is more useful and more useful
I do these things because I have listened to my mother since I was a child. She hopes that when I grow up, I will be a useful person. I should be very useful now, but if it is useful, it is still more useful.
The kingly way is an important key to realizing the dragon dream, and my way is consistent. Thank you everyone!
Email: [email protected]
