Kingdee up Breakthrough: IBM shortcut to high-end market means to construct barriers to capital
June 9, Kingdee Chairman of the Board Xu Shaochun and IBM Greater china chairman and chief Acer Aspire 4310 battery executive officer of money large group of manpower clenched together, open China’s management software industry, the new mode of cooperation. IBM Global Business Services Division will set up a specialized software services delivery team, became the most high-end products Kingdee – Group Management Information System EAS delivery organization, which is called “Kingdee Software + IBM service” model.
Before that, IBM Global only SAP, Oracle two delivery teams. From this point of view, in the eyes of IBM, Kingdee’s position seems to have not less, because the cost of the delivery team, but to IBM to bear. IBM future Kingdee able to bring so much business and order?
IBM in the chinese market, why choose Kingdee cooperation, of which another source. June 2007, IBM and Lehman Brothers shares with Kingdee, and signed a series of strategic cooperation framework, consultation services are also a part of the cooperation. “Cooperation with gains in the comparison, I pay more attention to IBM’s team can develop their own consulting services Kingdee power to help us break through to the high-end market.” Xu Shaochun say Kingdee company two years ago also set up a consulting services team efforts to transition from software to services, this time to the introduction of IBM’s services team, to some extent can help Kingdee lot.
This is because consulting services Kingdee To obtain a high degree of customer acceptance may take some time. Over the years, with SAP, Oracle and medium-sized enterprises, focusing different high-end customers, most of China’s management software vendors have been in the SME market in the melee, fight through the channel, fight prices, sale license, etc. continue to expand their living space. With the changing customer needs, to break through the high-end market has become Kingdee, UF and other local manufacturers of military significance.
In the high-end market, as a sales unit headquarters operations in China, SAP and Oracle localization relative lack of UF and Kingdee to provide opportunities beyond. According to CCW Research Report, 2009 UF and Kingdee over SAP, Oracle among the top two markets, the Chinese market, the competition between two strong early arrival times.
IBM shortcut to high-end market
In fall 2008, a drizzling of the evening, IBM Greater China general manager of Global Business Services Ma Changan (Marc Chapman) for the first time visit to shenzhen Kingdee Software Park, the two sides talked about the delivery in consultation with the possibility of cooperation, which made Xu Shaochun excited. After Xu Shaochun twice to the United States called on IBM Global Business Services president Frank Kern, IBM and Kingdee eventually led to the cooperation. IBM set up specifically for the payment of Kingdee EAS product team will have about 100 people early the next five years, plans to expand to 500 scale.
Over the years, IBM and other consulting services and management software giant in China have experienced Asus A32-F5 Battery the same problem, channel sink is not enough for consulting services provide customers with localized high cost paid by the hour consulting service costs unbearable for Chinese enterprises. Cooperation with Kingdee, you can channel all over the country by Kingdee provide services to clients. As a grown up financial software from ERP vendors, Kingdee and other local firms, as in small and medium-class low-end market growth is facing a bottleneck. Kingdee 2009 filing shows the market for large enterprises and industries in the EAS product revenue growth of 49.1%, small and medium business market KIS product revenue increased by only 8.2% growth rate in the high-end market has been far higher than the low-end market. Kingdee Feng Jie, general manager of the Friends business network’s program, KIS end of this year sales are expected to exceed 600 million yuan, while the income attributable to Kingdee less than 300 million yuan, most of the income left channel, showing small and medium market competition intense.
In fact, despite SAP, Oracle and other multinational companies in China face many problems, but still upstream in the management software, product and service advantages that local firms can not catch up shortly. Their main customers still come from a large group of business and has strong bargaining power, although the local vendors on product quality has improved, but because the service capacity constraints and fierce competition, is still difficult to raise their prices. In addition, local manufacturers of so-called high-end customers, in terms of transnational giants are still in small and medium level.
Accor Group is a net food Kingdee IBM in consulting services and cooperation in a typical case, IBM provides a comprehensive net elegant use of the ERP consulting services is Kingdee of EAS products. However, in terms of net Ya on IBM customers are small and medium-level, on the terms belong to a large customer Kingdee. Kingdee 2010 to 2013 in the four-year plan, the proposed transition from products to services, strategies, and two years ago formed his own consulting services business unit. “Large enterprises and high growth markets, some factors are past Kingdee small base in this area.” Xu Shaochun said, “the proportion of software sales will gradually decrease the proportion of business advisory services will gradually increase. Enhance the profitability of the business advisory services ability to maintain performance growth will be key to Kingdee. ”
Influence of high ground
The past two years, Xu Shaochun in an interview prefer to talk about Chinese philosophy on corporate governance implications. This Kingdee impact in improving the company’s strategic inseparable. Last 3 years, Kingdee has been committed to “Chinese Management” research and promotion, hoping to influence the concept of occupation of the highlands.
June 5, in Kingdee customer conference, Xu Shaochun to go to Hong Kong China Travel Group Chairman Xue-Wu ibm ASM 92P1126 battery Zhang, China Merchants Bank president Ma Weihua, president of Dong Mingzhu Gree with other entrepreneurs, promotion of “innovative management model in China.” Not an insider view, Xu Shaochun of this theory and not many new ideas: the management and Chinese culture, Chinese philosophy and other entrepreneurs to link a lot of people, it is difficult to have real substance, short, implement management, or the western style is very mature thinking and tools. However, Xu Shaochun, “China Management” concept, to some extent reflects the business as a thought: After years of economic development, China has a large number of high-quality firms that management practices should be considered, in order, worth learning and promotion.
On Xu Shaochun, the actual level of significance is that this concept can help Kingdee influence the company set a high ground, as one of China’s management software expert positioning, local businesses, as a sale of management thinking and management tools of business, you gotta have their own unique concept of strategic market.
This influence, the annual income of only 10 billion yuan, while industry experts as a management software is essential as there’s Kingdee. 1 Kingdee insider said that once they will visit an annual income of 5.0 billion yuan of enterprise, the other is recognized management experts Kingdee the image, but when people asked Kingdee size of the company’s revenue, sales of 800 million yuan per year slightly embarrassed them.
Although the efficiency of enterprise management can not be simply compared the income, but to do business management software, the unique influence of management thinking is still very necessary. In recent years the whole world is talking about the rise of China, the growth pattern of Chinese enterprises has become a topic of discussion all over the world, combined with this hot, up to the height of the whole industry, can be considered a kind of beyond.
In fact, apart from outside influence, Kingdee three years to build “Chinese Management” efforts are still many substance. Xu Shaochun to Chinese management model through the selection, review and innovation, the methods of these enterprises, the means, tools, system summed up to build a case base for future business management consulting do basic work.
Means to construct barriers to capital
As a corporate luxury, global software industry is facing an awkward reality: the financial crisis, many businesses reduced investment in information technology areas. Not only bid farewell to the high-growth Chinese market, SAP’s total revenue last year, according to U.S. accounting standards fell by 8%, gross profit rose by only 0.1%, the market value of 430 billion dollars, with Google, Microsoft and other IT industry leaders with significant than the gap.
Therefore, the UF, Kingdee such local enterprises to achieve its dream of enterprise-class management SONY VGP-BPS9 battery software, management software alone has been difficult to complete normal development must rely on the capital market to promote its development. This is plain water management over the years the software industry, the most in 2012 to UF and Kingdee with constant attack was becoming very noisy reason.
June 17, UF notice issued to 491 million yuan acquisition of the domestic automobile industry solution provider for all equity EF thinking, into the automotive industry solutions. EF thinking in the DMS (dealer management system) is the largest company in the field, it has 20 auto plant, 3500 4S shop customer, the market share of 30%. In 7 days before the announced 10 million yuan Kingdee professional collaboration software vendor mergers and acquisitions of soft technology development Co., Ltd. Shenzhen Yi. Earlier this year, Kingdee has been going on since 2 M: M 20 million yuan respectively, PLM (Product Lifecycle Management) industry, software companies and real estate industry in GuangZhou PVP Shenzhen Jia code software vendors.
Throughout 2009, Kingdee completed three acquisitions since, but UF was completed nearly 10 acquisitions since. Either UF or Kingdee, frequent mergers and acquisitions in this race are pointing in the vertical industries. This is because, in the Chinese market, the group of the largest enterprise management software has been the demand side, electricity, petroleum and petrochemical, telecommunications and other industries, often one or several of the leading enterprises of a central system, information on a line Daodi Therefore, the acquisition of market share in the industry’s largest software vendors in the industry of information technology to gain a good position to establish leadership.
In fact, some of the specialized vertical industry software company in the income scale in recent years has far exceeded the growth of some common software companies, such as zhuhai, beam software, general associated software, for a long time already have their software listed inside and outside. Account for 80% of the electricity industry in market share much light software Zhuhai Co., Ltd., is the financial and power industry leading provider of enterprise management software, has been in the A share market, its 2009 total revenue of 310 million yuan, income and profits The increase of 44.89%, respectively, 62.47%, higher than the Kingdee 13.9%, 11.7% and 36.0% UF, the growth rate of 28.2%. Since the acceleration of China’s electric power information, much light to get a steady flow of a large number of software orders.
In addition to mergers and acquisitions, the capital market, Kingdee also seeking new breakthroughs. This year in March, has been split Kingdee middleware business, Xu Shaochun hope middleware companies listed on the GEM. This year in April, the Friends Kingdee to its business network and business integration KIS. Friends of the business e-commerce services network is Kingdee’s website, via the Internet to provide services for small businesses, KIS is Kingdee products for small business department of this company after the merger in revenue last year reached more than 200 million yuan, will exceed 300 million this year Yuan, plan for the future four years to achieve listing.
Xu Shaochun this integration is to seek a breakthrough in the Internet a great try. In the Chinese market, financial management software is a one billion yuan market scale, ERP is 10 billion yuan market scale of e-commerce is a billion Vaio Vgn-cr290 battery dollar market. If the management software market alone by conventional development, Kingdee has no chance to overtake their competitors, but the Internet provides an opportunity to turn to overtake, for the future provided adequate room for imagination.