• Tuesday, October 23, 2018

Forbes: China is innovating faster than you think

Discussion in 'China & Far East' started by Adam WANG SHANGHAI MEGA, Apr 16, 2018.

  1. Adam WANG SHANGHAI MEGA

    Adam WANG SHANGHAI MEGA SENIOR MEMBER

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    • Forbes: China is innovating faster than you think
    • Observer Network
    • Zhou Yuanfang
      • 2018-04-16 20:59:20
      Huawei is the global leader in network equipment, Alibaba is the world's largest business company, DJI is the world's largest manufacturer of drones, and Tencent has already surpassed Facebook... When the world still regards Silicon Valley as an “innovation center”, some The Chinese entrepreneurs who went to visit have been disapproved. In the Chinese market, they are just disappointed. "I don't know what Silicon Valley is doing."

      The above review came from the American business magazine Forbes, an associate professor at Madrid's IE Business School, and an executive trainer, Michael C. Wenderoth, wrote an article on this site on April 11th that "China's innovation speed is beyond imagination". Observers The net compiles this article as follows:

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      Screenshot of Forbes magazine website

      Last year, I spoke to some Chinese business executives about their experiences in Silicon Valley. They were unanimously disappointed. One executive said, “To be honest, I don’t know what they’re doing. Hoopla is about)."

      Silicon Valley is regarded as an innovation center all over the world, but many Chinese people, especially Chinese technology practitioners, are not impressed by this.

      Many Westerners still hold prejudices and believe that Chinese products are cheap and low-quality cottage products.

      Although there is still a portion of the Chinese market that meets this impression, there are more and more Chinese world-class companies, and they are increasingly ranked in terms of scale, growth, and most importantly, innovation.

      In the emerging technology industry, many Chinese executives are dissatisfied with the "China's lack of innovation." They are increasingly confident that they can compete with Silicon Valley, Israel, or any other innovation center.

      Give some examples:

      Huawei is the global leader in network equipment and the third largest manufacturer of smartphones. It has an unparalleled breadth of technology, and it has perfected its business model in China and the Third World. It has begun to dominate some Western markets.

      Xiaomi swept the smartphone industry a few years ago and entered the ranks of the world's top ten smart phone makers, introducing inexpensive mobile phone designs. Xiaomi adopts an innovative marketing approach that sells products online only, and is rapidly introducing new models. Xiaomi’s operational efficiency is second to none.

      · Alibaba is the world’s largest e-commerce company (the company joked that they are not comparable to Amazon, because Ali is much bigger than Amazon), the company completely changed the sales model of small and micro enterprises, creating the world’s most One of the most advanced and profitable online retail ecosystems. Their sales on November 11th (China Singles Day) exceeded the sum of (United States) Black Friday and Cyber Monday.

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      Express Picking Robot

      · Tencent’s WeChat has become the most dominant app in the world with 960 million users. Tencent also surpassed Facebook as the fifth largest global market value in November 2017. Its profit model through mobile game recharge and in-app purchase has become similar. Cases of corporate research.

      · Dajiang is the world's largest manufacturer of drones, and both Haier and Midea are top white goods and electronics manufacturers. They are all market winners in the high and low end markets. These companies are currently rapidly improving their position in the industry through the introduction of robotics and Internet technology. Midea has acquired Kuka, the leading German robot manufacturer.

      These companies, as well as other Chinese companies, have a world-class management system, and at the same time fully adapt to the highly competitive Chinese domestic market, this can be a great success. Cities like Shenzhen have also become incubators for industries such as the Internet of Things because they have created cost-effective hardware manufacturing systems.

      The Chinese government's use of protectionist policies for the domestic market, providing companies with convenient financing channels, and not paying attention to the "cons" of intellectual property protection have often been the object of complaints from Western countries. This may be plausible in some areas, but this statement ignores the fact that almost all of the companies mentioned above are reshaping world standards.

      China has successfully created a huge and attractive corporate ecology in the field of e-commerce and the Internet, which has greatly promoted innovation. Many entrepreneurs do not need to seek international market recognition because there is a big enough stage in China.

      Take the drip behavior example, this taxi software is now popular in China. Many people blamed Uber for plagiarism, but one obvious fact is that in China, DDT is doing better than Uber, and from marketing to marketing, DDT is faster. Didi's innovation is also very fast, such as the introduction of driver assistance services and emergency help functions, providing solutions to security issues. This extremely in-place experience has even made "Whether or not to buy a car" a problem.

      Western automakers now view China as a laboratory for future transportation models, where demand is huge, capital is sufficient, and the shared bicycle industry led by Mobyba and Ofo has grown rapidly.

      In the field of artificial intelligence, deep learning and algorithms, China is increasingly gaining a dominant position. Lingo Champ is an English learning app that automatically assesses the level of spoken English in a user so that people can learn English without a foreign teacher. In China alone, they have 50 million users. Several founders of "fluency" said they have stayed in the United States, but now they have left Silicon Valley. They have seen more opportunities in China, which also reflects the trend of Chinese entrepreneurs leaving the United States.



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      "English fluent" official website screenshot

      One of the fastest growing snack companies in China, “Three Squirrels,” meets more basic needs and is a representative of food packaging and fast-selling companies that are increasingly appearing. They can maintain products at a fast pace. The update is unheard of in the West. Strong industrial chain and logistics support mean that China's innovation is sustainable.

      In fact, as a Chinese entrepreneur recently told me, Darwinian competition means that Chinese companies have no choice but to accelerate innovation. Take shared bikes for example. Within months, the industry has emerged with dozens of new businesses. Smart Chinese consumers are also particularly adept at discovering weaknesses in various corporate strategies, forcing them to improve their services at lightning speed.

      The entrepreneur also said that there are too many opportunities in China, and sometimes entrepreneurs do not need to devote a lot of time and capital to in-depth research and development and innovation, because the government has invested a lot of capital in key areas. Clean energy, electric vehicles, batteries, aviation, robotics, biotechnology, aerospace, and security are all areas where the ambitious “Made in China 2025” policy has been given priority, encouraging companies to enter or invest.

      There are many opportunities in China. Entrepreneurs do not need to conduct in-depth research and development innovations that require longer time and higher costs. This is how the government intervenes. China’s investment in key areas is impressive. Clean energy, electric vehicles, batteries, aviation, robotics, biotechnology, aerospace, and security are all ambitious goals in the “Made in China 2025” policy. This policy explains China's priorities and also indicates that Chinese companies may conduct large-scale acquisitions or innovations.

      When the Chinese government concentrated on doing something like the 2008 Olympic Games, they planned well and implemented them. The top consulting agencies were fully equipped to do everything from the top-level design to the bottom-level implementation. While Chinese companies only need to focus on innovation, Western companies doing business in China have the opportunity to catch a ride.

      Western companies can also learn from the experience of Chinese companies in their home markets, and they can learn how to do business and expand their scale in a rapidly changing market. China’s approach may also be able to better help us succeed in emerging markets such as Africa.

      Management and leadership have long been regarded by the West as their “specialty”, and now, China may catch up.

      China now has funds, has enthusiasm, ambition, an educated workforce, and a spirit of perseverance.

      Next time, if anyone else says that "China has no innovation," you should let them take a closer look.

      On my last trip to China, I was next to a retired French executive who worked in France, Spain, Britain, and the United States. She served many of the world's top companies. This was his first trip to China. The old gentleman was particularly interested in that at the time I was accompanied by many students from all over the world, all of whom were about 20 years old. They were also the first time they went to China.

      I told him that they will go to the location of the most cutting-edge companies in the world today.

      I am an associate professor and executive trainer at the IE Business School in Madrid. The above is my personal opinion. (End of the original)

      It is worth mentioning that after Michael Wendlos wrote this article, some netizens also commented on his LinkedIn page, and mentioned that Fortune and the World Economic Forum had similar articles recently:

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  2. cirr

    cirr ELITE MEMBER

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    China Is Innovating Faster Than You Imagine

    Michael C. Wenderoth , CONTRIBUTORI write on leadership and what the West should be learning from China.

    Many Chinese executives in the burgeoning tech sector take umbrage at the idea they don’t innovate.

    Many innovative Chinese don't need to look for international markets because there is so much room to grow in China.

    When I talked to a group of Chinese executives recently about their trip to Silicon Valley last year, the consensus was disappointment: “Honestly, I don’t know what all the hoopla is about,” said one.

    The world lauds Silicon Valley as a center of innovation, but many Chinese visitors, particularly from China’s growing technology sector – aren’t that impressed.

    In turn, many Westerners still insist Chinese products are cheap, low quality copies.

    While such perceptions may represent a portion of China’s market, the country has more than its share of world-class companies that are increasingly rising in rankings on size, growth – and most significantly, innovation.

    Many Chinese executives in the burgeoning tech sector take umbrage at the idea they don’t innovate. They feel increasingly confident they can compete head to head, engineer by engineer, with the best in Silicon Valley, Israel or other innovation hubs.

    For example:

    • Huawei, the world leader in networking equipment and now #3 smartphone maker, has unparalleled technical breadth and has refined its models both in China and the developing world to the point where it now dominates in some Western markets.
    • Xiaomi, which took the smartphone industry by storm several years ago to enter the top 10 smartphone makers worldwide, produces great designs at affordable prices. It took an innovative approach to marketing by selling online only, with new models emerging rapidly. Xiaomi’s operational efficiency is second to none.
    • Alibaba, the largest ecommerce company in the world (the company jokes it should not be compared to Amazon, as it is so much bigger), has revolutionized the way small businesses sell and has created one of the most sophisticated and lucrative retail online ecosystems in the world. No wonder their one-day sale on November 11 (China’s “Singles Day”) grosses more revenue than Black Friday and Cyber Monday combined.
    • TenCent, whose Wechat application may be the world’s most dominant, with 960 million users, has not only surpassed Facebook to become the world’s fifth-most valuable company, but has become a case study for mobile gaming and the fremium model to generate revenue.
    • DJI is the world’s top drone maker, while Haier and Midea, top white goods and electronics manufacturers, are producing high and low-end market winners. All are rapidly upping their game through robotics and internet applications. (Midea bought Kuka, a leading German robotics maker).

    These firms and many others have succeeded by applying a mix of world-class management and adapting to China’s highly competitive domestic market. Cities like Shenzhen have become software hubs for sectors such as the IOT by providing access to rapid and cost-effective hardware manufacturing.

    The West often complains that the Chinese government protects its industries through protectionist policies, providing easy access to capital and turning a blind eye to IP protection. There is some truth to this in certain sectors, but it ignores the fact that almost all the companies mentioned operate to world-class standards.

    In sectors like ecommerce and the internet, China has succeeded in creating an ecosystem so big and attractive that it drives innovation. Many innovative Chinese don't need to look for international markets because there is so much room to grow in China.

    Take Didi, the ride-share app (which has now gone global). Many accuse of it of copying Uber’s model, but the simple truth is that it outplayed Uber in China, from marketing to speed to market. The company has constantly introduced innovations, like a service to send a driver for your car when you have had too much to drink, and an SOS feature to improve safety.

    Such is the ride-sharing leader’s omnipresence that it is calling car ownership into question. China is increasingly seen by many Western carmakers as the laboratory for the future of transport, including bike sharing, a sector led by Ofo and Mobike. With access to capital and demand, both have become huge, fast.

    China’s growing domination of AI, machine learning and algorithms is reflected by the success of companies like LingoChamp (Liulishuo), an English language learning application that evaluates your spoken English. With some 50 Million plus users in China alone, it has filled a need, enabling eager Chinese to learn English without access to native language teachers. LingoChamp also reflects how many of China’s entrepreneurs pass on Silicon Valley (several of its founders spent time in the USA), and now see more opportunity in China.

    Meeting a more basic need is Three Squirrels, one of the country’s fastest growing snack food companies, typical of the ever-growing swathe of packaged goods and consumer companies able to come up with new products on accelerated cycles, unheard of in the West. All this and a delivery and logistics sector able to provide virtually anything on demand means that China has the conditions for continued innovation.

    In fact, as one Chinese entrepreneur recently told me, Darwinian competition means Chinese businesses have no choice but to innovate. Those bike share companies? Within months, dozens of startups had entered the market. And eager Chinese consumers seem particularly skilled at finding loopholes in company policies, forcing companies to improve service at light speed.

    The same entrepreneur said there are so many opportunities in China that entrepreneurs don’t need to conduct deep R&D innovation, which takes longer and is costly.

    Which is where the government comes in. China has made impressive investments in key sectors. Clean energy, electric cars, clean energy, batteries, aviation, robotics, genomics, space, security – these and others have been targeted as part of China’s ambitious Made in China 2025 policy, which explains China’s priorities and where Chinese firms are likely to make big acquisitions or focus.

    When China sets its sights on a goal, as it did with the 2008 Olympics, serious effort and planning move into place. Top-tier strategy consultancies have never been busier and have moved into providing leadership development, design and prototyping, analysis and execution, so that Chinese firms can keep innovating – and Western companies in China have a chance of keeping up with them.

    By following the examples of Chinese firms, the West can learn much about scaling up and operating in fast moving markets, applying Chinese companies’ experience to our home markets. A Chinese approach might also better help us succeed in emerging economies like Africa. China may even take the lead in management and leadership, long considered the ‘expertise’ of the West.

    China now has the money, an educated and ambitious workforce, a can-do spirit, impressive companies, and a dogged spirit to achieve that will carry it far.

    Next time someone tells you China doesn’t innovate, suggest that they to take a closer look.

    On my most recent trip to China, I sat next to a retired French executive who was making his first visit. A global, multi-lingual VP, he had spent his career between France, Spain, the UK and the United States, home to the leading companies of his day.

    He was intrigued that I was taking a large group of 20-year old students from around the world on their first trip to China: they were heading, I told him, to the home of the leading companies of today.

    I am a professor at IE Business School and Senior Advisor with InterChina Consulting. Views expressed are my own.

    https://www.forbes.com/sites/michae...ovating-faster-than-you-imagine/#4e52769d273d
     
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  3. TaiShang

    TaiShang ELITE MEMBER

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    It is not easy to survive in China's market because the competition home-grown companies bring in is just too much. I expect several large Western retailer companies to either to grow smaller and leaner, or adapt to the more expensive new retailing industry that is being shaped up by JD and Alibaba as we speak, or entirely thrown out of the market by the "invisible hand."

    Any industry, especially that are mentioned in Made in China 2025, will become slaughter houses for foreign companies in China's market and the sight won't be pretty.

    Hence, it is no wonder that China's entrepreneurs are not at all impressed by Silicon Valley. It is, the real content put aside, a product of relentless Nazi-inspired media information warfare on other people.

    Just like now the US media tries to sell out a particular sham auto company in deep financial distress as a success.

    Still, I have huge respect for traditional major Western companies that used to be real power houses.
     
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  4. qwerrty

    qwerrty SENIOR MEMBER

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    right now they mainly investing in fintech, eCommerce, ai and robotics. next year will be seeing a lot of new startups in biotech and blockchain technology..
     
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  5. AndrewJin

    AndrewJin ELITE MEMBER

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    Nah, fake news.
    Bangalululu is the world's leading innovative centre.
    Not China, not Trump regime....

    @Bussard Ramjet @Nilgiri @Joe Shearer
    You guys need to complain to this white magazine for their racism and ignorance of your innovation.
     
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  6. sweetgrape

    sweetgrape SENIOR MEMBER

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    No, we are just better to copy, steal the technology, no so-called innovation. :coffee:
     
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  7. TaiShang

    TaiShang ELITE MEMBER

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    China sucks at everything. It is a slave-labor Commie paradise. I frequently go there, it is terrible. Infrastructure sucks.

    SP12 is everything China is not.
     
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  8. Dungeness

    Dungeness SENIOR MEMBER

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    China is a dictatorship, and there is no freedom and democracy. Any innovation happened there is due to the fact that CPC is pointing a gun in CEOs' head. We prefer our freedom and democracy, even if it means we have to eat grass and excise open "you know what".
     
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  9. GS Zhou

    GS Zhou FULL MEMBER

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    Fake news!
    China is dictatorship country, no freedom, no democracy! Only copycat!

    (Where I can get the 50 Rupee??)
     
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  10. AndrewJin

    AndrewJin ELITE MEMBER

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    you won't get 50, more likely 1 or 2 rupee.
    Their labour is extremely cheap.
    PDF RSSers are struggling to have sufficient ration.
     
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  11. TaiShang

    TaiShang ELITE MEMBER

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    China indeed feels the weight of a crushing shame that it has not achieved anything of the sort that SP12 has achieved so far ever since it was deemed as a state - in terms of hygiene, logistics, order, security, development, infra, brand creation, trade volume, productivity, renewable energy generation, AI, alternative energy cars, fintech, robotics, and banking.

    It is all because China is a Commie country and CPC sucks at everything SP12 is good at.
     
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  12. terranMarine

    terranMarine BANNED

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    That's what the Turks said about China too.
     
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  13. ZeEa5KPul

    ZeEa5KPul FULL MEMBER

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    You don't get 50 rupees, friend. You get a voucher good for one poop on an actual toilet.
     
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  14. Nilgiri

    Nilgiri BANNED

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    So you like when "white man" throws you a scrap in the MSM your way?...but it is wrong when they do for anyone else? "Michael Wenderoth" and "Forbes".....from "genocidal white man" country of bing bing bong bong bing bing bing, ifififififififififififififif...

    No wonder Nanking happened like it did....big projection of ego but only hypocrisy beneath it.

    "Viets should rise against their white master and....**** them!!!!!" spammed this Wuuuuuuu-han CPCer dozen times (till it got deleted and he got warned hopefully)....really you do our job in exposing what CPC attitude is for us in the end. Thanks!

    @Viet @gambit @jhungary @Gomig-21 @Hamartia Antidote @F-22Raptor
     
  15. AndrewJin

    AndrewJin ELITE MEMBER

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    wow, you have tagged so many of your white worshipping fellow refugees.

    You 82 people really have a great strategy in everything, now a surgika strika in this thread.

    But believe me, internet was invented by hindu!
    Bangalulululu call centre high tech is the climax of humans' high IQ!

    India Internet Innovation China can Learn From
     
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