[Wang Dongsheng believes that successful entrepreneurs have to pass three customs: the first is to start a business, to be in the front line, and to bring a team to success; the second is to authorize, to cultivate a number of competent people, to give power, to bear the responsibility; the third is to turn the shift, whatever the quality of the enterprise, from the essence, is the wealth. The rich creation system is the public instrument of the society, not just the individual.
From a 7 year old electronic tube factory to a player who has grown into an important LCD player in the world, Wang Dongsheng has been running for 25 years.
Once upon a time, BOE carried a huge "accusation". Wang Dongsheng, the founder and chairman of Beijing Orient, led the team with continuous investment and continuous innovation to solve the pain of "lack of screen" in China, and was praised as "the father of Chinese liquid crystal display industry" by the industry.
Looking back on the 25 years of founding BOE, Wang Dongsheng said entrepreneurs should have entrepreneurial spirit, innovation and adventurous spirit. Adventure is not a gambler's mind. "The entrepreneurial spirit of adventure is a never-ending spirit of learning and exploration. It is a responsibility for uncertainty and risk."
The display panel is a cyclical industry. In 2017, with the increase of the price of the panel, the market value of BOE was doubled. This year, the price of the panel dropped, and BOE was under the pressure of the year-on-year decline in net profit. Wang Dongsheng has also changed from the youthful young man to his hair, but he is still aggressive. Two or three years ago, BOE began to transform to "IOT enterprises that provide intelligent port products and professional services". Can his "adventure" succeed again this time?
The iron sword strategy ended last year
"Our philosophy is" no weak market, only weak products. " Regardless of whether the market is booming, our products and technologies can lead the trend, and our revenues and profits will grow steadily. We must have the strength and the spirit to defeat our opponents with innovative and enterprising strength, and turn the market downturn into growth opportunities. Wang Dongsheng said.
The rapid rise of BOE is the opportunity to seize the market downturn several times, and expand the cycle to achieve overtaking in the curve.
In 1992, Beijing electron tube factory has been losing money for 7 consecutive years. In September of that year, Wang Dongsheng, who was 35 years old, was sent to the factory director. In April 1993, Wang Dongsheng led the staff to raise 6 million 500 thousand yuan seed fund to reform the stock system and set up the Beijing Orient Electronics Group Co (renamed to Beijing Oriental Science and technology group Limited by Share Ltd in 2001), and Wang Dongsheng was the chairman and President of the company. Subsequently, BOE quickly turned its profit into a profit. In 1997, it realized the B-share listing in Shenzhen, and spent 5 years from being on the verge of collapse to reborn in Nirvana.
After the listing of B shares, BOE raised HK $more than 300 million. Some people have been advised to make real estate in the East. At that time, Wang Dongsheng thought, "we are one of the few professionals in the Chinese electronics industry. If we don't even want to engage in industry, who will go to the industry?" "South Korea has Samsung, Japan has Panasonic, SONY. Neither Korea nor Japan are big in China, they can create world-class enterprises. We have no reason why not.
What does that do? There must be big industries to build a big company. Wang Dongsheng chose the display device. At that time, BOE did CRT (picture tube) accessories, and Wang Dongsheng realized that CRT would be eliminated sooner or later. The new display technology is LCD (liquid crystal) and PDP (plasma). From the technical trend of semiconductor replacing the electric vacuum, the liquid crystal will go farther, so it decides to enter the liquid crystal field.
After the outbreak of the Asian financial crisis in 1997, Hyundai Group wants to sell HYDIS, a subsidiary of LCD business. After seeing this opportunity, Beijing grasped quickly. In January 2003, Beijing announced the acquisition of HYDIS for 380 million US dollars, to break through the technology and patent barriers to the liquid crystal display industry. Then, it sent hundreds of people to HYDIS to study in South Korea, while preparing for a 5 generation line in Beijing, converting the acquisition resources into their own technology and laying a professional foundation for future expansion.
In the 2008 global financial crisis, when the industry declined because of the market shrinking and the international giants slowed down, Wang Dongsheng put forward the "market trough as a growth opportunity". In April 2009, the 6 generation line of BOE broke ground in Hefei. In August of the same year, the 8.5 generation line of the BOE was founded in Beijing, and the high generation line was officially opened. In the five years from 2009 to 2013, BOE continuously built five production lines and jumped to the top five in the world.
In recent years, worries about overcapacity of LCD panels have been heard. In 2011 and 2012, Samsung and LG increased their investment in the OLED panel. Wang Dongsheng had the opportunity to judge the large size LCD panels. In December 2014, Beijing announced the construction of a 6 generation AMOLED production line in Chengdu, another 8.5 generation line in Fuzhou in 2015, and the construction of the first 10.5 generation line of the world in Hefei to seize the high point of the large size LCD panel.
"To be or not to be, to be the leader of the world." Wang Dongsheng recalled, "people say that you are a boast, but we have worked out a 25 year plan and have been insisting on it. The first five years are the entrants stage. We must lay a solid foundation and take root. We have implemented the strategy of "taking root." The following five years, respectively defined as the chaser, challenger, leader, leader four stages, corresponding to the four sword - word strategy: steel sword, Tie Jian, Mu Jian, no sword. Last year, our iron sword strategy ended, and we shipped the world's number one.
Since its establishment in 1993, BOE has grown into the world's leading semiconductor display giant. In 2017, the shipments of the LCD display in the world accounted for 25% of the world's total, and it has jumped to the top of the world.
But BOE really entered the LCD industry. It only started in 2003. In the past 15 years, Wang Dongsheng has led BOE to expand in a "radical way" to achieve the goal of coming from behind.
Even in the first half of 2018, when the global panel industry was plunged into an industrial downturn, BOE did not slow down its expansion. In order to further enhance the competitiveness of the large size liquid crystal panel and flexible OLED panel, it also announced the second 10.5 generation of LCD panel lines in Wuhan and third 6 generation flexible AMOLED panel lines in Chongqing.
"The challenge of this year is huge, the uncertainty of the market, the decline in the price, the more intense competition, the overcapacity, the friction of trade, and so on," Wang Dongsheng said in the "25th anniversary and the creation of innovation culture heritage conference in the east of the East." In fact, every year there will be a new situation like this. The market situation is the same for all players. The key is whether the competitive position has been promoted. We should focus on enhancing the competitive position and competitive advantage. "
Adventure is not a gamble.
Behind the massive investment of BOE, Wang Dongsheng's professional vision and persistence in innovation.
In 2004 BOE listed in Hongkong, China was blocked. From 2005 to 2006, BOE continued to lose money in the downward cycle of industry. Wang Dongsheng was once questioned and stressed. But with the belief of "industrial power" and deep understanding of industrial laws, Wang Dongsheng faced difficulties. He said frankly: "we can survive and become the first in the world. The fundamental magic is: respect for technology and persistence in innovation."
He is a firm technocrat. Wang Dongsheng had been thinking about how to further build the core technology strategy of BOE ahead of the expansion of BOE. He worries that BOE is about to scale up, and that once the technology changes, there will be a big problem.
While deepening the restructuring of the organization, Beijing has always maintained high investment in R & D to strengthen the research and development of advanced technology, including the technical research on liquid crystal panel, large size OLED panel, small and medium size OLED panel and flexible display. It can be said that the second round expansion of BOE in 2009 is based on technology research and development besides the support of local governments.
"Imitate others to follow, but not in the long run." Wang Dongsheng said, "participation in global competition has made us realize that innovation is the only way for enterprises to survive. BOE can still survive now because we insist on innovation.
In the most difficult time in BOE, a loss of tens of billions a year, some people say that BOE will not invest in R & D. In response, Wang Dongsheng said, "we are listed companies, and we will be scolded by others when we lose money, but we still voted more than 30 billion a year. If we do not invest in R & D, we may not lose, but there will be no BOE today. Our R & D investment is no less than 7% of the turnover, even when it is small. It is because of our respect for technology and persistence in innovation that we have today.
Wang Dongsheng firmly believes that innovation should take account of the balance between short and medium length. Innovation is not only innovation of technology and products, but also the innovation of business and management mode. For enterprises, technological innovation is the foundation, "technology is not necessarily win, technology is not sure to lose!"
Wang Dongsheng himself paid great attention to the exploration of the law of industry technology. In 2010, it showed that the industry "law of survival", the industry called "Wang's law" - if the price was kept constant, the performance of the product should be more than doubled every 36 months. This cycle is being shortened.
It is based on this law that BOE continuously improves its competitiveness in terms of quality, cost and efficiency. From the second half of 2008 to the first half of 2010, Wang Dongsheng set out on the basis of the theory of methodology and made the competitive strategy principle centered on the promotion of the competitiveness of the products. Since October 2010, the innovation and change of "SOPIC" (strategy, organization, process, information system and content control) has been formally implemented in Beijing, from product orientation to customer orientation, from the individual factory to the global cooperative management to ensure that the speed of innovation exceeds the speed of the change of the market.
Under the impetus of innovation and change, the main business of Beijing East in 2012 was turned into profit, and the profit of 2013 increased, and the proportion of the world's first world first products in the same year reached 35%.
In 2014, the industry argued fiercely whether OLED would replace LCD. In June 2014, he was invited to make a keynote speech at the "International Display Week" SID conference, saying that both OLED and LCD are semiconductor displays, and OLED will gradually replace LCD in the small and medium size fields, but LCD is the main force in the large size area and will coexist with OLED for quite a long time.
At present, the development of the global display industry confirms the prediction of Wang Dongsheng at that time. "It's related to my experience and my background," Wang Dongsheng explained. "I'm a computer software source. I'm good at system design and mathematical models. It's a system engineering expert. I'm a financial source, and the finance is mainly about profit. I know how the profits come out. Financial experts, systems engineering experts plus industry experience make me know better than my competitors. None of them had experienced such a high and low temperature experiment like me, nor did Sun Wukong do so.
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