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| USER CONFERENCE |
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| The Fifth
HEADING User Conference on Modern Commercial Management |
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Accumulating and Depositing
are the Competitiveness that can not be Shaken
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Time: October, 2004
Place: The Sun Island International Holiday Resort, Shanghai
Theme: Accumulating and Depositing are the Competitiveness
that can not be shaken |
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Professor
Ding Yuzhang
Director of Shanghai HEADING Information
Engineering Co., Ltd
Every year, we meet here, whenever we are busy or far away from
shanghai during this period. We all pay great attention to the
thesis of competency, which usually determines a firm's future.
So, we meet here and discuss it.
What cheers me most is to see our company growing in a healthy
way. We often have some interior discussions on a topic that
what kind of relationship we HEADING has established with our
user. Do we gain it through our excellent service? How to describe
the relationship--business relationship, emotional relationship,
friendship, or just trade relationship? Do we only have excellent
service? What is an exact definition of "excellent service"?
I believe that we have already exceeded a simple mode of service
relationship. Everyday there are special staff thinking for
our company's future development, tapping actively the talent
power, summarizing the new discoveries and then spreading and
motivating every user, then the whole HEADING's user family.
We link together with our user, and we pay much attention on
their sustenance and development. That is the true relationship
we have with our user.
Our users have been deeply impressed by the more and more evident
effects that IT has on their operation. It is this relationship
between our user and HEADING, which exceeds the usual relationship
and makes us a whole. It is HEADING's business and duty as well.
What HEADING is facing now is not a problem of existence. Although
many businessmen of IT industry still stay in the level of existence
and making orders, we HEADING has already focused on the further
development, discussion and research of IT industry and Chinese
commerce industry. I believe we have the required ability, and
therefore, we will reach our goal, and I am also convinced that
what we successfully created will finally be beneficial to the
HEADING family. In the previous session, I said HEADING's blueprint
in the long run is not to expand the business dimension but
to deep it. The same is true of today. We determine several
typical users, do further research on them, cumulate and write
out our knowledge and experience, and then share all the knowledge
and experience with all our users.
There is great deal of information in our "HEADING MESSAGE",
volume 7. For more detailed knowledge, please read it. You will
find it contains not only useful knowledge, but also many scientific
methods and ideas.
ˇˇ
If we have done something successfully, I should thank every
one of you. Whenever how far we are, we long for meeting with
each other every year. It contributes to HEADING's excellent
organizing work, and what is more important, it contributes
to the unique relationship between HEADING and our users.
When I look back our way, I got some ideas. If we can say we
have get some achievements, I would like to contribute them
to firmness in our belief, diligence in our enterprise, honesty
to others, attitude to difficulty and frustration.
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Leading
the management team with excellent culture
Mr. Qiu Yuanchang CEO of Shanghai KEDI
Convenience Store Co., Ltd
I used to focus on IT application in firms at previous user
conferences, because HEADING systems really provided great support
to our management and operation. Now I found, in order to get
sustainable competitive advantage, we also need to focus on
firm culture. It is primary management element, and I hope to
communicate it with you.
First, there are three necessary phases during a firm's development.
During the first phase, from zero to a new firm, the key question
is to set up rules in many aspects. Managers need to learn the
industry and their customers, and deal with business themselves.
During the second phase, from a small firm to a larger firm,
the key question is about system and business process reengineering.
HEADING Company, KEDI has achieved goals of this period. Managers
emphasized on to enhance their systematic management ability,
process supervision ability, and adjustment ability. During
the third phase, from a large firm to a powerful firm, firm
culture has been a key question. Managers need to learn people,
train people, form teams, lead to the whole organization. CEO
is really equal to a CEO of the HR department. Managers deal
with people more than specific business activities now.
Second, firm culture should finally be represented by our behavior,
including individual behavior and team behavior.
KEDI mission: creating more free time for people to enjoy their
life. Convenience is our sustained positioning.
KEDI goal: being a sustainable leader in Chinese convenience
industry. We set our annual budget and work goal every year.
KEDI values: surpassing yourself, pursuiting excellence, contributing
to the society, obtaining self success, being an honest and
upright man, trading others tolerantly and hot hearted.
KEDI credendum: trusting in our employees, supporting our customers
with more convenience, wining-wining strategy between KEDI headquarter
and its' stores, behaving first.
Firm culture is not equal to some rules, or some words. Its
power lies in its' sustainability and penetration ability.
Third, chief managers usually have great impact on firm's culture.
Managers used to influence the firms by his authority, now more
by his thought.
Set up firm's culture, including mission, goal, and value.
Make market-oriented mid-term and long-term plan.
Make specific tactics, keep good attitude, avoid our weakness
and show our strength.
Strengthen yourself with broader mind, more tolerant attitude,
stronger perseverance, and so on.
Have management mode that could inspire employee' work enthusiasm.
In a word, an army without culture is a silly army, it will
seldom win. A firm without culture could not achieve its' goal.
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Competitive
strategies for single store of middle-small sized firms
Zhang Baihui Vice President of Vanguard
Retail Company
What are the key focuses of middle and small sized firms in
Chinese chain industry? They are competitors and customers.
Customers' information is collected at stores. Store is also
the main way that customers could learn the firm's value and
competitive advantage. Store can improve their quality in the
following aspects.
Learn to analyze your competitors. Analyze their strength, their
weakness. You can find your chance in this way. Differentiation
advantages would come from goods, price, demonstration, imagination,
and innovation ability.
Differentiate your goods, for example, rational price difference,
brand, self-produced goods, complemented goods, unique goods,
abundant goods.
Effective marketing strategy. Meet customers' need, satisfy
them, appealing demonstration, and effective promotion.
Make consumer communication easier to be understood. In order
to inspire consumers' purchase need, based on the rules of simple
and detailed communication, you need prepare plain guiding pictures
and words in your store, detailed function introduction of your
goods, and plain price cards.
Provide high quality customer service. Treat your customer with
right method, and improve service quality step by step.
Improve efficiency of your business. Compare your financial
data with the industry's level, use automation method, reduce
your cost, encourage your employees to take part in the activities.
Build excellent work team. Hire right person, provide training,
learn new knowledge periodically, communicate effectively, and
adopt the idea of customer orientation.
In order to operate a firm well, you should persist in those
primary rules. When you persist in the primary rules, you would
finally be a successor, or you might fail.
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Improving
your core competency based on IT
Professor Hanyongsheng Researcher of Software
Academy
What are the key focuses of middle and small sized firms in
Chinese chain industry? They are competitors and customers.
Customers' information is collected at stores. Store is also
the main way that customers could learn the firm's value and
competitive advantage. Store can improve their quality in the
following aspects.
Learn to analyze your competitors. Analyze their strength, their
weakness. You can find your chance in this way. Differentiation
advantages would come from goods, price, demonstration, imagination,
and innovation ability.
Differentiate your goods, for example, rational price difference,
brand, self-produced goods, complemented goods, unique goods,
abundant goods.
Effective marketing strategy. Meet customers' need, satisfy
them, appealing demonstration, and effective promotion.
Make consumer communication easier to be understood. In order
to inspire consumers' purchase need, based on the rules of simple
and detailed communication, you need prepare plain guiding pictures
and words in your store, detailed function introduction of your
goods, and plain price cards.
Provide high quality customer service. Treat your customer with
right method, and improve service quality step by step.
Improve efficiency of your business. Compare your financial
data with the industry's level, use automation method, reduce
your cost, encourage your employees to take part in the activities.
Build excellent work team. Hire right person, provide training,
learn new knowledge periodically, communicate effectively, and
adopt the idea of customer orientation.
In order to operate a firm well, you should persist in those
primary rules. When you persist in the primary rules, you would
finally be a successor, or you might fail.
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Retail
operating practices
Distribution department of NEC china
Topic 1: CRM in Japanese
retail firms, and how to make profit from customer information
Digest: There is great deal of information in many companies,
especially in the IT system, how to get profit from it? The
lecturer showed how to set goals in CRM activity, how to find
profitable customers, how to maintain relationship with customers,
how to make specific plan, and how to get profit from the customers'
information finally.
Topic 2: Communication
on success experience of Japanese convenience stores.
Digest: The lecturer introduced experiences and techniques
of successful convenient stores in Japan, for example, how
to understanding what is Goods, order model based on single
goods management, goods list based on information analysis,
effective goods logistics network.
Topic 3: New information
system in department store and shopping mall, and analysis
of the Chinese market.
Digest: Communication has become more and more important in
this information society. Information after the consumption
activity is not enough now; we need to gather consumption
information during the process. Based on new IT method, such
as IC card and RFID, we can build a new information communication
system, gather consumer's information, and analyze the information
in real time. Finally, the lecture showed how to introduce
this new system in Chinese market.
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Business
strategy and process management
Doctor Ho Nai Choon
President of IDS-Ginitic Pte Ltd, leader of Singapore National
Study Institute SIMTECH and business process management. Doctor
Ho has 26-years work experience in universityˇ˘institute and
enterprises and has more than 20-years experience in business
strategy planningˇ˘management consulting and business information
construction.
Digest: We should analyze business process from the strategy
perspective; build BSC and KPI system on the base of business
strategy. Doctor Ho gave some case analysis and provided a whole
system to manage business process.
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BPR application
in ERP implementation
Doctor Lilin Consulting Director of IDS
Sheer china
Digest: Doctor Li demonstrated how ARIS used in the ERP project
practically and theoretically. He gave one case analysis from
manufacturing industry. The experience could also be used in
the distribution industry.
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Dialogue
Competition in Chinese retail market

Host:
Zhufang
Vice-editor-in-chief from <Chinese
Business Herald Market Weekly>
Guest:
Professor Ding Yuzhang
Director of Shanghai HEADING Information
Engineering Co., Ltd
Mr. Qiu Yuanchang
CEO of Shanghai KEDI Convenience Store
Co., Ltd
Professor Hanyongsheng
Researcher of Software Academy
The experts from four different fields held a discussion with
audience on the issues of competition in Chinese retail industry.
What is the change that KEDI has in the more competitive environment?
How about Chinese firm's competitive advantages in the new market
conditions?
What is the core competency of a firm?
Is the investment level of Chinese firm's on IT rational?
For an IT service company, how to satisfy user's customized
requirement?
HEADING Company?
What are your thoughts of team management and human resource?
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