90's of last century, the Chinese market in the U.S. and European companies to advance, Lenovo, "who was" quick on the rise, as among the first to enter the Chinese market, Japanese companies are faltering, being left behind.
Early December 2005, NEC headquarters for the Chinese media delegation held a welcome banquet in the presence of each NEC Headquarters, the responsible person exchanges with the Chinese journalists would ask questions like: "In China we do more good. " In fact, this is a lot of Japanese companies are confused and urgent need to find the answer to this question.
How can we regain the Chinese market? Such as NEC's long-established Japanese companies have begun to re-plan the Chinese market and accelerate the reform movement in China localization.
NEC Tokyo headquarters building located in the high cost of land in the Tokyo central area, many buildings in the vicinity of buildings appeared solemn and grand. In this 43-story building, there are 5,000 employees here NEC office. Go in, the first thing your eyes is the spacious hall. However, in Beijing, China, IBM, HP, Lenovo, Microsoft and other foreign-funded enterprises and enterprises with a separate office building, NEC has not its own independent office building, office dispersed at the heart of downtown Beijing Oriental Plaza and Zhongguancun areas Shining Building. Two very far apart, hit a taxi is almost an hour.
This is also a manifestation of strength and gaps. NEC in Japan, IT and communications fields have a leading position; but in the Chinese market despite the entry of 30 years, it has been "who was" IBM, HP, Lenovo, and other European companies, and excellent local dumped behind.
Details and loss lasted a hundred years
NEC is a real century-old shop. NEC was founded in 1899, the first was the AT & T joint venture in Japan, NEC's business is now divided into communications, IT, semiconductor business. NEC and other Japanese IT companies have a long line of the same. Communication started from the NEC now has become of the 225 Dongwujiazi (Sun) the company's vast communications / information company, in 2004 sales of 45.4 billion U.S. dollars. .
Now we all have seen, IT and communications integration is an inevitable trend. In 1977, Kobayashi was president of NEC in Atlanta, the lead government has put forward the idea of computer and communication exchange. Since then, the NEC started from the communication start both committed to the development of communication and computer orientation. The world's fastest supercomputer - "Earth Simulator Center" on the subglottic from NEC, "Earth Simulator Center" is the world's highest performance supercomputers. By the Japanese NASDA, Japan Atomic Energy Research Institute and the Centre for Marine Science and Technology co-developed vector-based supercomputer - "Earth Simulator Center" in, NEC provides all the equipment in which - 640 processing units used for calculations "compute nodes" and the 65 units used to connect computing nodes of the network equipment. In Japan, NEC Corporation not only in the past, the current boss of the communication of information industry, but no one can shake their future status. According to reports, the world-famous world's first commercial 3G network FOMA in, NEC has provided 75% of 3G network equipment and 90% of 3G terminals. I-EXPO exhibition at the NEC Forum, Vice President of the General Assembly, Yano said that in the next-generation networks, NEC virtual monopoly on the domestic carriers in Japan the main market.
Reporter visited the Japanese "7/ELEVEN" supermarket, information director, told this reporter, by using the NEC provides a complete set of information systems, the "7/ELEVEN" chain logistics costs in Japan from 7% to 1%. Not only for circulation, and manufacturing of information technology solutions, NEC's strength to stay ahead in the current very popular on RFID application development, NEC company at the forefront. Some applications of the NEC's RFID program provides retail and showroom, electronic navigation screen in real time with RFID tags to the listing customers meet their needs and preferences of the navigation information.
However in, in China, people's understanding of the NEC and its disproportionate size and strength. NEC "veteran" rock Gangtai Fu came to China in June last year, as NEC-CAS (1994 by NEC Corporation (NEC) and the Chinese Academy of Sciences (CAS) established a joint venture software company) as the new general manager, and soon he felt so "gap." Iwaoka President had more than 30 years has been engaged in software development in the NEC. In Japan, NEC is the leading status of the software, sell products have no brand promotion, and he soon discovered was in China, NEC software, lack of brand recognition in China, and NEC in the competitive Chinese market is IBM, Oracle , BEA and other hard work in the Chinese market for many years a well-known software brand, he should have done in the Japanese market leading position in the nec software extended to China, but also began to start erecting brand awareness.
Re-planning in China
In fact, NEC can catch up on business in China 30 years ago. Normalization of diplomatic relations in 1972 after the Chinese, Japanese Prime Minister Tanaka angle
Rong visited China, to visit Jin Xing Zhe Ci global broadcast, but it was not the case in China, the technology nor the live Shebei, NEC assigned to the Japanese government set up at Beijing Capital Airport Lin Shi Weixing broadcasting system since, That has NEC Di Yi Ci into China. From then until the late eighties of last century that this stage is to export the NEC center stage.
Then the entire 90 years, can be understood as "joint venture stage." During this period, NEC established in China, including Shougang NEC, Shanghai Hua Hong NEC, NEC-CAS, etc. more than 50 joint ventures. However, these joint operations overlap, independent of each other, in a loose state of laissez-faire. This became the NEC in the development of China's biggest obstacle. This time, NEC is harvested in China, only micro-name and small profit margins, many of them joint ventures into the red.
In fact, in the above two periods, like all other IT companies in Japan as, NEC, for whatever reason did not really develop a clear strategy in China.
From early 2000, NEC opens new phase of operations in China - China as a very important strategic market positioning. Like other Japanese enterprises, NEC re-positioning the Chinese market, both NEC "internal" environment because there are "external" causes.
In recent years, living in depressed economic environment, Japanese companies, because of over-dependence on increasingly saturated home market of Japan, also showing weakness. NEC performance since 2000 has been in a "low hover." To this end, NEC also had to actively pursue restructuring, seeking a breakthrough. NEC is not only from the IT, network, discrete electronic components shift the business integration, but also from the shift from domestic-oriented of the world. Which have strong market demand in China is anxious to develop NEC's market. By this time, as China's open policy to promote and adjust owned enterprises in China can now sell their products, and in order for new development, more and more joint ventures can choose the form of sole proprietorship. This NEC speed up operations in China to provide a policy environment for localization.
NEC business planning department Tetsuya Nakamura Minister stressed in an interview, NEC's future development strategy is to IT and network solutions as the center for globalization. Currently, NEC overseas market revenue share to 23% only 27% of this level, NEC's mid-term goal is to expand the proportion of overseas sales to 30%.
NEC globalization strategy in which China was out alone, and is seen as the most important piece of the market, and the United States, Europe, Asia-Pacific tied. In the NEC headquarters, also set up more than 10 individuals in China Business Promotion Department. In early 2004, NEC executive director of the island country as the NEC (China) Ltd to Beijing to personally take charge. State Island, said that since 2000, NEC actively promote the advantages of including the play to push forward China's domestic launch of new business, strengthen the Chinese as the main research and development, the establishment of a global supply chain base business in China.
Early December 2005, held in Tokyo organized by the NEC Corporation, a number of partners to support the i-EXPO2005 show, it was introduced in Japan, launched by the company the highest level of exhibition. i-EXPO exhibition has 20 years of history, the main customers and partners on the Nec open. In this session of the exhibition, the first Chinese journalists, is the first open to foreign reporters. In this exhibition, NEC has also opened a special corner of show business in China and some of its circumstances and focus areas, which reflect its emphasis on the Chinese market.
But the NEC clearly, to really understand and integrate into the Chinese market, but also trying hard to learn many lessons.
Incorporate integration and integration
As the earlier group of foreign affiliates in Huacheng Li, NEC has set up numerous branches in China, a large number of independent "small NEC" fragmented, scattered resources, making NEC the lack of advance in the organizational structure force. This determines to be through integration of NEC's "pains."
A huge, scattered across many products in the field of business to play an integral advantage in the new period?
NEC began business in China incorporated into the integration movement. It is understood that, in the 2000's when, NEC shares of the way through the acquisition of a number of sole-based efforts, Dang Shi Ye Wu merging of the NEC already has in a Fang Xiang, made for later in the Tai integration necessary preparations.
In early 2004, China announced in Beijing the island Norihiko, NEC of the reorganized company in China, which is NEC's investment in China in 30 years a subsidiary of the largest institutional adjustments. June 1, 2004, NEC it to all communications companies in China, was founded at NEC Telecom (China) Co., Ltd., and hired the former general manager of Motorola China Louret office, a Japanese IT enterprises in China a sign integration events. Then again all made of IT business integration NEC Information Systems (China) Limited. October 2005, NEC set up NEC Electronics (China) Company, the related design and development department and sales department into the room. According to State Island, introduced as the needs of the semiconductor business, NEC semiconductor business will be the direction of adjustment and structural reform will be the newly formed NEC Electronics Corporation to do specific tasks.
"To every single business area of the window so that when customers come to us to have a unified interface." Takashima says the country. It seems the island in the country, business integration is not only the need for unified brand image, but also to better ongoing integration of business development.
NEC strive to IT, telecommunications, semiconductor three broad areas of the implementation of a single window, but now see progress very smoothly integrated. However, integration of IT and communications background, its two business areas across the NEC this pattern is difficult to play the advantages of integration.
Like IBM, HP and other companies to provide IT services to Europe and the United States, are the implementation of integrated internal management. The Japanese companies like NEC, and many are implementing a decentralized system of decentralized management, the independent operations of the business. This management system is clearly not conducive to NEC's IT and network convergence solutions.
In this regard, States Island, said that from the market point of view, the best form in the Chinese market have a single unified window. But can not be ignored, in order to communicate more quickly and the NEC of the strategic policy areas to penetrate the market among the various business areas to be given independent authority is also very necessary.
While NEC has set up integrated information system (China) Co., Ltd., NEC Communications (China) Co., Ltd. and NEC Electronics Co., Ltd., but ended in October 2005, NEC Group in China, including mainland China, including Hong Kong and Taiwan also total there are 69 corporate companies. There are many companies which are direct subsidiaries of NEC, a subsidiary of a subsidiary established by the local corporation. There are so many local corporations, but also to NEC's integrated development inconvenienced, "This is really still we are facing a big issue." Island state recognition.
Local talent, "Pilot"
To actively promote the business of localization, localization of the operating personnel can not be separated. It seems the island in the country, so local operators have
NEC to understand and implement ideas, or the introduction and adoption of NEC's success. To this end, NEC corporation for the Chinese all the staff at all levels of education and training for such activities - let the Chinese people are familiar with and understand local NEC's strategy and culture. I was a frequent island country as a training instructor.
NEC's headquarters in Japan during a visit, met the Chinese sent from NEC headquarters in Japan short-term work Zhangchun Di. According to news from the internal understanding of NEC, NEC Zhangchun Di is the first Chinese sent to Japan short-term work (internship) who, from October 2004 to Japan's wages, estimated time of two years.
For U.S. and European companies, the Chinese company's employees were sent to headquarters to learn and nothing new, but for Japanese companies to send employees to the headquarters of China's "training" of the situation was rare. "He is the object of training headquarters, will definitely return home in an important position." Zhang Chundi went to Japan as the NEC before the Head of the Chinese market.
At the same time, NEC to accelerate the localization of management personnel also began a bold attempt - from the U.S. and European companies in the airborne localization manager. April 2004, NEC established NEC Communications (China) Co., Ltd., and invited the former vice president of Motorola Personal Communications Global Business Unit General Manager of China as president Louret. NEC (communication) Louret's office, breaking a century-old NEC taboo in the employment system.
Shortly after taking office in Luray to the NEC Communications (China) Company to build an international background of the team - management of the country not only large, as big as all the background work in multinational corporations, many of whom do not speak Japanese and are speak English fluently.
The consistently good and the general style of Japanese enterprises is different from familiar with the market, are good at creating the Louret, first job after taking office is to increase brand awareness: NEC Championship CCTV prime-time ad spending huge sums; unified image of the logo replacement stores, the full commissioning of the whole The new "intimate you and me" brand strategy, and requested the "Stunner" Chen Hao plays NEC Mobile spokesman. NEC communications in advertising and public relations blitz to NEC in the near future not only greatly improved mobile phone brand awareness, but also let more people know the "NEC".
However, the pragmatic NEC and other Japanese companies, they need to see is real return. NEC Corporation as a whole, particularly in the context of weak growth performance, needs such a fast-growing Chinese market for it to enhance performance scores. Therefore, this problem may not be avoided: Louret results are expected to reach the headquarters? Louret how long in NEC?
NEC, a company director told reporters: "We all know that the Japanese corporate culture and European companies have a considerable gap. Japanese companies generally work style is a slow change, not only emphasizes the results, the working process is very valued, while the U.S. and European companies the emphasis on results-oriented. "conceivable," European School "style and" day school "in the conflict will be inevitable. Japanese companies also rare in the U.S. and European companies from "airborne" professional managers successful precedent.
In 2003, Fujitsu has introduced an unprecedented EMC when the U.S. mainland China and Hong Kong Chief Executive Bernard Kwok, Fujitsu China appointed president and CEO, Bernard Kwok to Ren Fushi through the beginning, but also full of confidence, and the introduction of such enterprises from Europe and the United States Greater China market, the former director of Compaq, HP China, professional and support services group general manager of marketing strategy and business alliance between fundamental well-known manager, single-handedly build a management team of its gold to the headquarters of commitment "hand in the performance turned 3 years 3 times the high score answer sheet. " However, three years yet to come, in January 2005, Bernard Kwok from Fujitsu, as VERITAS Greater China president, he established the "European" team members to send more than have left.
The analysts believe that there may similar to the Zhang Chundi such "internal training" approach - both familiar and understanding of NEC strategy and management talent in China of Japanese culture would be more realistic possibility.
Jedi counterattack, the odds geometry
NEC not only from the aspect of institutional and human resources, etc. "Internal Strength" and the "peace within" a while "resisting foreign aggression."
NEC in China has been working with Fujitsu in the battle rival. And the NEC product line Fujitsu serious overlap in many areas beyond cellular, and NEC will be face to face.
But the State Island Norihiko said: "speaking from the comprehensive strength, NEC's competitiveness favorably with those in many areas of Japan NEC is NO.1." Refer to market advantage, the country emphasized the island Norihiko 2 to enter the Chinese market more than 10,000 Japanese companies, which in turn is thought of Fujitsu and other Japanese companies had a similar view. Toshiba, Hitachi, NEC and Fujitsu, took place in China, competition is inevitable. This is a continuation of their domestic competition.
NEC currently the major corporate customers in China or Japanese companies, NEC is committed to the Japanese-funded enterprises in China outside the local corporate market expansion, it will directly face the IBM, HP and other deep plowing for years in China, Europe and the United States manufacturers and association , Huawei and other Chinese local leader of the competition.
"We have to grasp and understand the Chinese IT market situation to locate." NEC Information Systems (China) Co., President of Wood Kobe threatened in an interview, said that according to industry Qufen, most Chinese IT market share ranking is based on the government, telecommunications, financial , manufacturing, education, in accordance with such order. Kobe threat clear wood to expand China's domestic market, NEC is far better than IBM, HP, DELL international brands such influence. Therefore, NEC to account for the majority in the IT market share of the government, telecommunications, finance, etc. - these areas are IBM, Hewlett-Packard and other companies take advantage of the traditional territory, as the NEC challenging industries to develop. And the "manufacture, distribution, automotive," such as the relatively new area of expansion of core industries. For the government, telecommunications, financial markets gathered strength, sending its competitors, is the NEC next progress goals. Kobe threatened stressed the need to use wood investment and mergers and acquisitions in China means to develop local enterprises.
NEC wants to position itself as the establishment of a "differentiated solution provider" role - the use has been developed in Japan to the global launch of the biological and information security technologies and solutions, RFID applications such as expansion of industry markets. NEC's RFID technology in the Shanghai No. 1 Department Store has been initially applied. Kobe threat, according to Wood, Shanghai 100 applications not only RFID, primarily CRM system. RFID technology has been applied to the system, the current first experimental phase has been completed and is now working with customers to discuss how to build applications to adapt to Chinese customers.
Eye for the more attractive we NEC mobile phone business it clear that the island country, because China's mobile communications business is saturated, the domestic mobile phone manufacturers are more, NEC is Zuo phone machine types of compression and the market to reconsider that the introduction to the middle market and targeting high-end market policy. So that the recent "NEC to quit in the low-end mobile phone market" is not a groundless rumor. According to report, early in April will be the NEC began the new fiscal year, according to past practice, is also a strategy for the new year NEC adjustment time. "The new year will also be a new adjustment. As one expert pointed out: NEC localization and adjustment of the way forward is still in the exploratory stage, the localization process, the company still has a long way to go NEC .
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