Valve Enterprise: Transformation and Upgrade Cannot Delay

In the development of the national economy, the valve industry has played an important role as an important part of the equipment manufacturing industry. With the rapid development of China's economy, the valve industry has also been thriving. However, with the lack of key core technologies, weak awareness of technological innovation, many small and medium-sized enterprises but poor resistance, poor production equipment, and low grades of products, Problems such as the management of unregulated concepts are lagging behind. If these issues are not resolved, the development of the industry will be hindered or even regressed.

How should the valve company go next? "Reverse the boat, do not enter and retreat" - in the face of fierce market competition at home and abroad, valve companies want to become bigger and stronger, but also how to prepare for peace? - This requires "transformation and upgrading."

Then, how do valve companies achieve transformation and development? How to solve the problems that arise in the process of enterprise development, such as management, technology and products? All of these require everyone to discuss and learn from each other. China Pump Valve Network, through visiting companies, contacting experts, and keeping an eye on industry trends, has listed the following analysis and perspectives to provide reference for business operators, hoping to help companies find problems, examine problems, and solve problems.

First, the introduction of advanced equipment to improve the quality of valves Early, China's valve industry has a low starting point, small scale, low degree of specialization, low degree of marketization, the industry has been vigorously developed, but with the economic development needs and increasingly fierce competition abroad, gradually The problems of simple equipment, unreasonable product structure, low value-added products, and vicious competition are revealed. At the same time, middle- and low-end products occupy a large market and the market demands gradually become high-end and high-end. The major national project projects require high-end valves such as high-pressure and high-parameter valves. Because of the import supply, it is urgent for companies to improve their product quality.

The development of valve manufacturing industry, modern advanced equipment is the basis, the merits of the equipment directly determine the value of the product. Nowadays, product technology is a bottleneck restricting the development of the valve industry. Therefore, the primary task of the current valve industry is to introduce advanced equipment and improve the quality of valves.

When business operators introduce equipment, they must first consider the ability of enterprises to recognize funds, they must not blindly introduce advanced and expensive equipment, and must invest in value for money, so as to achieve the goal of “a single penny to make a dollar” and ensure that the equipment is high-end. It is best to have an accurate positioning product as far as possible to grasp the national mainline engineering or major projects; finally, to ensure that the company can fully grasp the equipment operation and simple troubleshooting, to create a state-of-the-art CNC machine tool, machining center and other advanced equipment. It is equipped with a dedicated and clean assembly workshop, advanced and complete test equipment, advanced leak detection methods, and other production workshops that are mechanized, semi-automated, and automated.

II. Leading the development of enterprises through technological innovation Jiang Zemin said that innovation is the soul of the nation’s progress and the inexhaustible motive force for the country’s prosperity. Without innovation, companies cannot maintain their vitality for a long time. The development of the enterprise depends on the market. In order to develop the appropriate market competition, the enterprise must continue to innovate and advance, and adjust the industrial structure. The valve company should adhere to its actual conditions, adhere to the "scientific and technological innovation" and increase the research and development of new products. , increase the market core competitiveness and dominance, and lead the development of enterprises with technological innovation.

At present, many domestic valve companies also introduce more advanced equipment and technologies, but the importance of scientific and technological innovation is still insufficient. The vitality of valve companies lies in whether their products have vitality, high technology and advanced nature. Although backward products can bring temporary benefits and cannot immediately abandon the value they generate, but only by insisting on independent innovation and development of new products, can we break out of the “innovation, imitating more” market chaos, and bring long-term benefits to enterprises. Develop and build your own brand.

How companies can better technological innovation, can refer to the following points as a reference:

1. Withdraw 3% to 6% of funds from sales as R&D expenditures, try to solve the restrictions on personnel, funds, and facilities, and provide good basic conditions for technological innovation and R&D.

2, can not only make some improvements in the structure, can not over-develop traditional products, while ignoring the development of new products hot products, in reference to other companies succeed in technology while paying attention to the original experimental data, to create a new product developed independently.

3, technological innovation should be a single, professional, first in a class of products to do a good job after the formation of corporate characteristics, and then gradually into the hot products and high-end products into.

4. According to the company's own capabilities, it will introduce advanced research and development technologies, give full play to its advantages, and improve with existing standards. Finally, it will master the manufacturing capabilities of key technologies and key equipment.

Third, 1+N mergers and reorganizations accelerate the effective integration of resources In recent years, valve companies have faced not only unfavorable factors such as tighter monetary conditions, rising prices of raw materials, appreciation of the renminbi, and rising labor costs, but also encountered pressures such as energy saving and emission reductions and power cuts; With the deepening of the economy and fierce market competition, some small and medium-sized enterprises with poor profitability and poor branding are struggling. The production methods and business models of the ever-growing small and medium-sized valve companies have gradually exposed the morbid state, and the risk resistance and breakthrough force are obviously insufficient. Valves If companies want to break through these difficulties, they must transform and upgrade. However, whether or not they can achieve the expected results after the transition will make operators indecisive. Therefore, “consortium transformation” emerges as the times require: risk sharing, resource sharing, win-win results, and transformation. Roads can also rely on each other for mutual development.

“A piece of chopsticks is easy to break and ten pieces of chopsticks are as hard as iron”—companies should use joint mergers and acquisitions to promote the centralized integration of resources to enhance their competitiveness and influence. The success of the forerunners such as Kaixiom Science and Technology Group of Longwan Wenzhou in 2009 proved that “1+N”—a large corporation and a combination of N SMEs’ ​​optimization and re-innovation are feasible and can be used for reference. So, what exactly should companies do together and how do they fit together?

First of all, the corporate culture, management model and development philosophy of both parties can be mutually recognized and integrated on a certain basis. Second, the focus of mergers and reorganizations is to eliminate backward production capacity and enhance cohesiveness. Both sides should have plant, technology, equipment, brand, and financing channels. The production factors such as products, management teams, and market resources are rationally and highly optimized and deployed, taking their essence and discarding dross, realizing more specialized production, forming a complete industrial chain, thereby ensuring the optimization of product quality and cost; The group company focused on brand building and marketing network construction, focusing on the research, development, and production of high-tech products. The subsidiary companies should focus on the specialized production of superior products, be refined and stronger, and unify the company's trademarks, technical services, and quality management. The disorderly competition among peers leads to strategic alliances and the formation of new markets. At the same time, mergers and reorganizations must pay attention to gradual and orderly progress.

Large enterprises and leading enterprises need to re-allocate resources and seek potential supporting enterprises; SMEs should take the initiative to integrate and reorganize, take advantage of their respective advantages, integrate and reorganize, and get rid of the past situation of “respectively doing R&D and diverging to find markets”, with large and small, strong Strongly join forces to form a strategic alliance to lengthen the industrial chain, ensure product quality and cost optimization, and better complete the transformation and upgrading.

At the same time, China Pump Valve Network recommends that the government and relevant functional agencies can better assist enterprises in macro control, policy guidance, coordination and supervision, and coordinate the improvement of financial support, tax relief, asset disposal, land and real estate, project approval, and technical changes. Problems such as the placement of employees have created a more favorable environment for the joint reorganization of enterprises.

IV. Establishing a modern management system and building a good competitive structure Today, valve companies are still generally implementing family-style management. The biggest advantage of family-owned companies lies in their management costs and cohesiveness. This not only reduces the company’s entrusted management costs, but also results from the consistency of overall interests. The members are more likely to trust and understand each other and increase the cohesiveness of the company; however, when the market is changing faster and more competitive, the drawbacks of closed family management that are completely controlled by family members are revealed. The development direction is ambiguous, the company’s management system is irrational, and the cohesiveness between employees and the enterprise is insufficient. Today's enterprises have to be big and need to develop. Specialized and standardized management systems are needed. Therefore, the transition of the family-style management model cannot be delayed.

How do family managements transition to modern management? Valve companies should try to make breakthroughs in the following areas:

1. Separation of ownership and management rights Gradually establish a collective mechanism for the separation of powers at the decision-making level, management level, and management level, so that all sections of the various departments perform their duties and make the best use of their talents; abandon the “patriarchal” management and use collective wisdom to make up for individuals Insufficient quality and avoidance of over-reliance on individual decision-making capabilities lead to strategic mistakes.

2. To improve the overall quality of the family and recruit elites and talented people “Boards on board, at the helm of one person”—The company must survive and develop. The ideological quality, professional quality and cultural quality of the decision-making level must reach a certain height; In the management process, the promotion of managerial concepts and the integration of family members' thoughts are also indispensable. It is also necessary to strengthen the guidance and education of family members and relatives and friends in terms of technical knowledge, management knowledge, and legal knowledge.

Drucker, a noted American management guru, said: "Successful companies can't be a leader and need a good management team." The biggest drawback of family-owned enterprises lies in the shortage of social elites. Enterprise management should focus on the development and investment of human resources. Through the introduction, cultivation, and absorption of foreign talents into the core layer of the company, a group of excellent management teams are established to allow decision-making to free up. More time and effort should be devoted to responding to difficulties encountered by enterprises and planning business development. This is the only way for business management to become professional and standardized.

3. The establishment of a modern organization system to improve the sense of belonging of family-owned enterprises The “employee” is the basis of the enterprise. The enterprise must develop without talent, and the technology must develop without talent. To manage employees well, family businesses must establish a good working environment.

Enterprises should establish a reasonable and effective organization process system and talent competition system, adopt incentives, constraints, competition, and development methods to encourage employees to innovate to make full use of their personal talents, so that employees can recognize that their own ability and commitment will be recognized by the company. And rewards, to create a good development stage for talents to use their expertise, so that the formation of a "competitive energy, energy, energy and energy, can be up and down," the competitive landscape.

Establish and improve the management system, promote the management of the first-level to the first-level, and try to avoid cross-level command. At the same time, family members should take the lead in complying with the company's rules and regulations and provide demonstrations for other employees; assigning functions and posts according to their abilities, avoiding “common internal and external” family-related problems, and “doing no-nothing” to “internally” The change will allow employees to recognize that the company treats "family" and "outsiders" equally and enhances the company's affinity and sense of belonging. Finally, strengthen corporate culture construction, do a good job of the ideological work of employees, implement civilized management, build a learning-oriented enterprise, and attach importance to the immense role of spiritual civilization in promoting the enterprise. Only by establishing a perfect modern enterprise system, can we clarify the property rights, perform our duties, supervise affairs, and treat all employees equally. Only by doing so can we seek for advantages and avoid disadvantages in the competition, and realize the maximization of corporate profits.

In summary, the author believes that as long as the valve companies value and implement the above-mentioned major elements of substantial reforms, the road to success in transition will be a matter of course, will occupy a place in the future of the fiercely competitive market and has been bigger and stronger.