Inovance Technology Chairman Zhu Xingming: What are the three major technologies that will change industrial manufacturing in the future?

“As the scale of the enterprise continues to expand, the business continues to increase, the organization becomes more complex, the process becomes more rigid, and technological innovation is weak. These are natural entropy increases, and these problems will gradually appear within the enterprise. Therefore, we have to look for opportunities from the outside , to strive to achieve entropy reduction. The times have brought us many challenges, but also brought us many opportunities.”

The tenth class of China Entrepreneur Club Tushi Learning Alliance Shenzhen visiting students came to Inovance Technology. Zhu Xingming, chairman of Inovance Technology, shared his thinking and practice of corporate business strategy over the years to the visiting Tushi executives.

Zhu Xingming, chairman of Inovance Technology, once served as the product director of Huawei and an executive of Emerson automation. He founded Inovance Technology in 2003. At first, Inovance technology focused on frequency converter series products, and later the company’s business expanded to general automation, elevator electrical equipment, new energy vehicles, Industrial Robots, rail transit and other fields, all the way to expand the territory, focusing on power electronics hardware technology, motor drive technology The three core technologies of industrial control technology and industrial control technology have emerged as a leading enterprise in the field of domestic industrial control.

Inovance Technology is called “Little Huawei” in the industry. On the one hand, because many members of its management team have work experience in Huawei, they are greatly influenced by Huawei in terms of enterprise management methodology. On the other hand, the research and development investment of Inovance Technology has been stable at about 10% of revenue all year round. The intensity of research and development investment and the level of technological innovation also show that this is a technology-based enterprise with hard power.

Looking at the development overview of Inovance Technology, Inovance was established in 2003. As of 2021, Inovance will achieve an annual revenue of 17.943 billion yuan, a year-on-year increase of 56%. Moreover, the growth of the enterprise has remained stable throughout the year, and there has never been a sales decline or regression.

The above picture outlines the strategic changes of Inovance Technology and the changes in the company’s annual sales. It can be seen that every strategic adjustment of Inovance has brought about a substantial increase in sales revenue. The positive correlation between corporate strategy and sales revenue growth is invaluable for any corporate manager in this era full of changes and uncertainties.

Then, in the face of complex internal and external situations, how can business managers make correct decisions amidst continuous shocks and uncertainties? The changing times have brought new external opportunities to business managers. As a business manager, how should we keep pace with the times and grasp the fleeting opportunities? How do business managers build their core competitiveness and determine their strategic development direction?

In the face of these difficulties in the business development of enterprises, Chairman Zhu Xingming shared the “Road to Innovation and Development of Science and Technology Enterprises” to the visiting Tushi senior executives. This article is a selection of the live interactive Q&A session.

Essence of opinion:

1. In all industries in the future, software will determine the differentiation of enterprises. Whoever makes software well will be able to take the lead in the market.
2. Three major technologies that will change industrial manufacturing in the future: digital technology, wireless technology,AItechnology.
3. The old customer-new product combination is easier to open the market than the new customer-old product combination.
4. Let the people who can hear the gunfire make the decisions. Entrepreneurs must take risks in management, so that the team can fully Display its wolf nature and cannot be locked in a cage.
5. To structure the company’s business, only by peeling off the cocoons layer by layer can we find the real reasons for low operating efficiency, poor sharing, and weak platform.
6. Strategy solves three problems: the first is to solve the problem of direction, the second is to solve the problem of matching direction and ability, and the third is to solve the problem of consensus.
7. The most essential purpose of an enterprise is to satisfy customers and operate efficiently, but the means are long-termism and maximalism.

The following is a selection of Q&A memorabilia by Zhu Xingming, Chairman of Inovance Technology (deleted and edited):

Q: Where is the core competitiveness of Inovance Technology? What is the future development direction of Inovance?

Zhu Xingming: All industries in the future will put software first. Hardware is only the carrier of software. It is difficult for hardware to produce huge differences. It is impossible to rely on hardware to get out of differentiation. Whoever does the software well will be able to take the lead in the market.

I think there are three major technologies that will change the industry in the future:

The first is digital technology.

Inovance launched a digital platform in October this year. Inovance began to observe the industry in 2013, and found an opportunity 4 years ago. All technologies, formats, customers, and markets have matured.

Inovance has clearly recognized the commercial nature and future profit model of this industry, so Inovance chose to be Lego in the field of digital industrial manufacturing.

Inovance follows the pattern of Lego toys in industrial manufacturing and builds a set of modular, model-driven rather than business-driven software.

Inovance’s industrial internet platform is not business-driven, let alone IT-driven, but model-driven. Inovance summarizes all the people, things and things in the industrial scene, the connection between people and things, the connection between people and things, the connection between people and things, and the connection between things and things, into three module to model.

This is a digital PaaS platform completely driven by the model. After the model is built, various complex and differentiated scenarios in large projects allow users to build what they want. Build the blueprint that you build in your mind.

The second is wireless technology.

In essence, wireless is also a software problem, it is a problem of combining software with hardware. How do Chinese companies apply leading wireless technologies to industrial scenarios?

Wireless not only solves the problem of connection, but most importantly solves the problem of hosting all industrial control workshops. This is a change across the ages. Inovance will launch a full range of digital factory hosting based on wireless technology in the future, including the hosting of the bottom layer.

Not only the hosting of the IT layer, but also the hosting of the control layer and industrial bus, leading the development trend of the world’s industrial control technology.

The third is AI technology.

How is AI applied in industrial scenarios?

Inovance has established a dedicated research institute. Inovance does not engage in AI development. In the future, on Inovance’s industrial Internet platform, all developers will be able to put the best AI applications on the platform. Find industrial application scenarios online through the platform, and transplant the applications developed by many enterprises in AI to industrial scenarios.

Q: Inovance’s business involves many fields of clothing, food, housing and transportation. What was Inovance’s business layout logic at that time? Under this logic, what changes have taken place in Inovance’s model? What is Inovance’s re