From traditional manufacturing to intelligent manufacturing, the fundamental reason why Midea can reach today is that the 50 year old group dare to deny itself, constantly subvert the past successful models and experiences, and find new paths
industry is the foundation of a country, the instrument of rejuvenation, and the foundation of a powerful country. Looking back on the 70 years since the founding of new China, China's industry has achieved a historic leap forward, and is striding forward from a manufacturing power to a manufacturing power. In 2018, the added value of China's manufacturing industry accounted for more than 28% of the world's share, becoming an important engine driving global industrial growth
in the long history of development, the representative manufacturing enterprises in South China have complied with the development of the times, actively sought the way of transformation and development, and delivered a beautiful report card. As a leading enterprise in China's household appliance manufacturing industry, Midea Group has achieved transformation from a township enterprise to the world's top 500 through 50 years of development
fifty knows destiny, not resigned to fate, but adapt to the changes of the times, grasp fleeting opportunities, and establish new competitive advantages on the basis of leading scale. Fang Hongbo, chairman and President of Midea Group, said that technological progress drives industrial upgrading, and China's traditional manufacturing industry is constantly facing new opportunities and challenges. New perspectives and new patterns are emerging
de familialization inheritance path
Shunde, Guangdong Province, is located in the middle of the Pearl River delta plain. The natural conditions of dense ponds and crossed rivers not only create Shunde's delicious food everywhere, but also the geographical advantage of being adjacent to Guangzhou has promoted Shunde to become the birthplace of the rise of China's private economy. It is in this fertile land that he Xiangjian gave birth to Midea Group
In 1968, in order to solve the problem of mass employment, he Xiangjian, 26, led 23 Street residents to raise 5000 yuan to establish the plastic production group of Beijiao Street office, specializing in the production of medicinal glass bottle caps and plastic bottle caps, which was the predecessor of Midea Group In 1979, the spring breeze of reform blew all over the earth. At the forefront of reform and opening up in China's coastal areas, Midea Group, driven by the tide of the times and relying on its technological advantages, independently developed and produced the first metal fan in 1980, and registered the trademark of Midea in 1981, opening a new journey towards home appliance manufacturingin the view of he Xiangjian, if enterprises want to grow, they must follow the development of the times. In 1992, Midea took the initiative to propose reform demands, and was designated by the Guangdong provincial government as one of the first batch of pilot units of internal joint-stock reform enterprises in the province. The following year, Midea Group's shares were listed on the Shenzhen Stock Exchange, becoming China's first listed company restructured from a township enterprise
in the 1990s, with the rapid development of the national economy, people's living standards continued to improve, the purchasing power of household appliances rose sharply, a large number of household appliance brands emerged, and the market competition entered a white hot stage. Midea, which obtained financing, also accelerated to improve its technical level and new product development ability. Relying on the market and channels, as well as the strategy of small profits but quick turnover, it soon occupied a place in the market
2 plastic will deform under stress. In 012, he Xiangjian, who has been with Midea for 44 years, retired. However, the helmsman of Chicheng industry for many years did not pass the baton to his children, but chose professional manager Fang Hongbo. Before that, Fang Hongbo had grown up with Midea for nearly 20 years
however, Fang Hongbo, who just took office, encountered a big test of his performance. In 2012, Midea achieved an operating revenue of 68.071 billion yuan, a sharp decrease of 25.037 billion yuan over the same period last year, and the net profit attributable to the shareholders of the parent company was 3.477 billion yuan, a year-on-year decrease of 6.25%. For a time, the outside world questioned whether Hong Bo could take charge of Midea
at that time, Fang Hongbo believed that China's household appliance industry had reached a dead end by relying on the model of low-cost scale expansion. Transformation means to achieve product leadership rather than continue to do large-scale. As a result, Midea sold all assets unrelated to its main business, stopped the construction of production lines, returned more than 6000 mu of land to the government, integrated the business of four major sectors, namely, household appliances, electrical machinery and logistics, and began its own transformation model
Fang Hongbo frankly said that transformation is like running on a highway, suddenly telling you that there is no road ahead, but the speed can't slow down. At the same time, we must find a new exit, so we must find another road. Fortunately, Midea did not deviate
after more than two years of painful adjustment, Midea Group reversed its decline in 2015, achieving an operating revenue of 138.441 billion yuan and a net profit attributable to the shareholders of the parent company of 12.707 billion yuan, an increase of 21% year-on-year, nearly three times that of 2011. This year, Midea ranked 32nd in the Fortune 500 list, ranking first in the household appliance industry
not only that, Midea Group has accelerated its globalization process through mergers and acquisitions. At present, it has formed a multi brand portfolio including cygnet, Hualing, Toshiba, KUKA and welling, and provides more than 400million household appliances and services to families in more than 200 countries and regions around the world every year
as for the inheritance of Midea Group, Fang Hongbo has repeatedly said that the model of Midea cannot be copied, and you cannot learn it. For the future inheritance of the group, Fang Hongbo also spent more energy on talent training. At every level of the company, what I talk about most now is using young people
from traditional manufacturing to intelligent manufacturing
in China, after the reform and opening up, the success of many manufacturing industries, like Midea Group, initially relied on China's low-cost advantage and the cost difference between developed countries, rapidly starting from the low-end manufacturing industry and gradually developing
however, affected by the 2008 financial crisis, the two prerequisites of the past manufacturing development model, namely, scale efficiency and cost advantage, have changed, the market growth rate has stabilized, the low-cost advantage has been lost, and the traditional model is no longer suitable for the development of the times
if the manufacturing industry needs to be transformed and upgraded, the traditional model has failed and is no longer competitive. What should we do? We must look for new models and new abilities that can survive and develop continuously. Fang Hongbo believes that the transformation path of China's manufacturing industry mainly includes seeking new cost advantages, cultivating the ability to establish differentiation, and realizing inter industry transformation and upgrading
Midea began its first transformation in 2011 around three aspects: product leadership, efficiency drive and global operation. By constantly changing the investment mode and strategic direction, Midea has devoted all its resources to new business activities, including technological progress
with the surge of intelligent manufacturing revolution, Midea spent 29.2 billion yuan to acquire Germany KUKA, one of the world's four largest robot giants (14.900, -0.13, -0.86%), in 2017, which became its important focus in the field of intelligent manufacturing. In 2017, Midea Group achieved a total operating revenue of 240.712 billion, a year-on-year increase of 51.35%, and a net profit attributable to the shareholders of the parent company of 17.284 billion, a year-on-year increase of 17.70%
driven by the integration of industry and Internet, Midea Group pointed out at the 2018 annual strategy conference that human and machine will change into a deeper and more integrated cooperative relationship, and proposed a new generation of man-machine strategy, which has triggered the global household appliance enterprises' focus on the intelligent manufacturing of Chinese household appliances
in the same year, Midea Group officially released the industrial interconnection platform Midea T, becoming the first domestic supplier of complete industrial interconnection platform integrating independent industrial knowledge, software and hardware. Midea Group said that in the future, Midea will further invest in robotics and automation, intelligent logistics, IOT and other fields, establish a leading industrial interconnection platform, and form a full value chain digital solution
Fang Hongbo said that Midea T platform not only promoted Midea's transformation from traditional manufacturing to intelligent manufacturing, but also played a pilot, demonstration and leading role. Through Midea smart data, it promoted Midea's successful transformation experience to more than 200 large and medium-sized enterprises in more than 20 industries and promoted the development of industrial interconnection
nowadays, with the improvement of scientific and technological level and the continuous change of market demand, in Guangdong, which is known as the world's factory, in addition to Midea Group, the transformation of a large number of manufacturing enterprises is driving Guangdong's industry to a steady pace of high-quality development in which researchers place a 4 mg round cake like "sponge" 3-dimensional graphene material into a vacuum tube
transformation technology group
in recent years, the national "guiding opinions on deepening the integrated development of manufacturing industry and Internet" and a series of policies have been intensively issued, so that the popularity of digital transformation of manufacturing industry continues unabated
Fang Hongbo believes that if China's traditional manufacturing industry wants to take the lead in the digital era, there are two important points: first, the mode of growth must be changed, from incremental dividends to stock fission; Second, the business model of China's manufacturing industry must be changed in the context of the reconstruction of the industrial chain, from manufacturing LED, production led to user led
in fact, Midea Group has been exploring the path of industrial interconnection and digital transformation since 2012, and has invested more than 10billion yuan. However, Midea is not only satisfied with the internal practice of digitalization and intelligence, but also hopes to open up a second runway of the industry
the fundamental reason why Midea can reach today is to dare to deny itself, constantly subvert the past successful models and experiences, and find new paths. Fang Hongbo said that in the future, Midea should build a new competitiveness and turn from a highway to a new highway
in March 2017, Midea launched a new round of strategic transformation and upgrading, and proposed the transformation of a technology group for the first time, that is, from a traditional home appliance manufacturer to a technology group covering consumer appliances, HVAC, robotics and automation systems, and intelligent supply chain
Zhang Xiaoyi, CIO of Midea Group, said that Midea already has the foundation of industrial interconnection, has the layout of the whole industrial chain from hardware to software, and has achieved zero inventory production, 100% logistics tracking and c2m customization. More importantly, Midea industrial interconnection is not only applied to itself, but also exported through Midea cloud smart data
at present, the biggest challenges facing the whole digital transformation include: the value cognition of digitalization; Resource input; It technology and it transformation; Facing the situation of large or low investment and supply side problems, if not impossible. Gu Yunsong, general manager of Meiyun Zhishu, believes that digitalization is not a tool for enterprise change, but the ability of enterprise change. A good enterprise must have this ability
in the past five years, Midea Group has invested more than 30billion yuan in R & D. In 2018, Midea Group applied for 15895 patents and 6102 invention patents, with a total of 44000 authorized patents. The huge R & D investment has provided good support for Midea's technological innovation
the core of the enterprise is transformation and upgrading, which is to continuously improve its competitiveness. The development of human history has proved that recycled plastic granulator will have a large customer base in the future. Only technological progress can drive the subversion and change of various industries. Integration, elimination, the survival of the fittest and the tide washing sand are all fundamental to the development of enterprises. Fang Hongbo said that Midea will further develop in robotics and automation
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