The Breakthrough Of Kingdee In The Era Of Cloud Origin

? ? ? With the increasing demand of enterprise for internal information system management, the importance of ERP is gradually revealed. However, in the early years, the high-end ERP market was dominated by overseas large enterprises. However, in recent years, with the trend of transforming cloud ERP business, Chinese local manufacturers have more abundant industrial environment and ushered in the opportunity of overtaking.

In 2011, Kingdee, an old software manufacturer, started the road of transformation to cloud company. During this period, Kingdee once cut off part of the traditional cash flow business, resulting in periodic pain in the development process. At the same time, the transformation to the cloud company itself requires a thorough iteration of the whole process from technology to cognition to execution, which tests the firm's decision-making ability.

? ? ? ? Zhang Yong, the rotating president of Kingdee China, recently told the 21st century economic reporter that after the decision to transform the cloud company, Kingdee has been reconstructed from top to bottom“ This challenge will continue and will continue throughout all activities of Kingdee in the future. Many traditional software companies in China will encounter the problem because it is a process of coexistence of end products and SaaS products. Today, Chinese traditional software companies have to pay more efforts and efforts in the process of change in order to realize their ideals. "

? ? ? In recent years, the achievements of transformation have appeared. Previously, Kingdee International (0268. HK) released the financial report of 2021 half year. During the reporting period, the company's revenue from cloud business accounted for about 66.1% of the group's total revenue, with a year-on-year growth of 55.1% and a year-on-year growth of 71.5% in the core parameter cloud subscription service recurrent revenue (ARR). The market of large enterprises has also achieved a milestone breakthrough: the first phase of Huawei's global human resources project has been officially launched; Yunnan China tobacco project has been officially launched since the beginning of this year.

? ? ?“ Since the cloud transformation, Kingdee has gone through many ups and downs. From this year on, we have entered the deep-water area of cloud transformation. " At the performance communication meeting held on August 19, Xu Shaochun, chairman of the board of directors and CEO of Kingdee group, concluded that "salesforce's cloud service experience over the past 20 years is really worth learning from, but Kingdee is not" salesforce of China ", but" the sky of the world ". What Kingdee wants to regain is not only market share, but also the confidence of Chinese enterprises in Chinese software. "

Zhang Yong. Information map

Advanced digital capabilities

? ? ? With the iterative evolution of technical capabilities, the digital road within the enterprise has gone through the upgrading process from MRP (material requirement planning) to MRP II (production resource planning), ERP (Enterprise Resource Planning) and now EBC (enterprise business capability)“ Enterprise management is evolving from ERP resource planning to EBC digital combat effectiveness, "Zhang Yong shares.

Behind this, many industries are facing new change nodes and development opportunities. Zhang Yong analyzed to the reporter that in the course of decades of development iteration, Kingdee has observed four directions of great changes in the future industry: technological change, consumption change, industry change and management change.

? ? ? Specifically, technological change has brought a lot of business model innovation; The new generation of consumers have different understanding of consumption, which challenges the personalized production and sales ability of enterprises; Various industries are upgrading to technological capabilities and even technology-based companies, and hope to change the business model in the future. The most important thing is that the mobile Internet has gone through the 1.0 era of advocating connection, the 2.0 era of booming transactions, and then the industrial Internet era of 3.0 era. When enterprises encounter new bottlenecks in growth, it highlights the importance of seeking benefits from management.

? ? ?“ We should excavate the value of enterprises and employees from the data, hoping that the organization will be more energetic and the employees will have a more sense of responsibility. I prefer to manage the enterprise and employees through data, rather than through the final results. A clear understanding of the process can feed back more behaviors, so as to better guide the development of enterprises. " He continued.

? ? ? For Kingdee, this is also a process of continuous expansion of capabilities. Zhang Yong told the 21st century economic reporter that the continuous upgrading of enterprise management software is a sign of progress“ In the past, when we talked about MRP and ERP, we focused more on the internal production and operation of enterprises. The core of ERP is planning, and the process is its foundation. But today, with the progress of technology, we find that many enterprises have broken through the internal requirements, need to connect with upstream suppliers and downstream customers, and better understand customer needs and provide products and services. These capabilities are not available in ERP in the past, so there is EBC. "

? ? ? This includes five main technical capabilities: the ability to connect the customer experience platform, the ability to connect the supplier ecological platform, the Internet of things platform to connect everything, and the ability to connect the employee information platform. The core is the ability of intelligent analysis and decision-making of data after data generation.

? ?“ In the future, these five capabilities determine whether an enterprise can make breakthroughs and grow in the cruel competition. " He pointed out that from the current results, many enterprises have already possessed MRP and ERP capabilities, but from the perspective of EBC's five platform capabilities, less than 50% of enterprises have reached the standard“ This is a long way to go, and there is still a lot to be done. We firmly believe that in the future, EBC will better and effectively support the digital transformation of enterprises. "

? ? ? This development idea is also becoming a consensus. According to Gartner, who proposed the development concept of EBC, by 2023, 80% of the organizations will have ERP platforms that are quite different from those before 2012, and those ERP manufacturers that cannot keep pace with the times will lose 10% of the market share.

As a result, in the era of mobile Internet 3.0, China's richer industrial forms will work with domestic software manufacturers to promote the rapid aggregation and improvement of digital ecological capabilities. This also means that the competition and cooperation situation of global enterprise software in ERP era will be greatly different from that in EBC era.

? ? “ To be fair, from the perspective of ERP single business, the systems of overseas manufacturers are very comprehensive, which is worth learning from domestic manufacturers. " However, in the era of mobile Internet 3.0, many mobile Internet based businesses in China have already reached the top of the world, because "many scenarios are unique to China".

He pointed out that for software companies, the core competition lies in the understanding of scenarios and business, which has given Chinese software enterprises an opportunity to rise. The overseas market will also need Chinese software enterprises to support its overseas applications.

"In the future, competition among enterprises will become more and more similar. In today's industrial Internet era, China's software enterprises have a better future, and will create a world-class SaaS service software company in China's huge market."

Transform into a real cloud company

? ? ? More importantly, in the era of cloud computing, the ability link between enterprises has already been supported by this important infrastructure. Kingdee is also the first software manufacturer in the industry to propose to completely build the cloud native base.

? ? Looking back on 2011, when the transformation was decided, Zhang Yong said that the challenges were enormous“ The biggest challenge for us is the analysis of product architecture. The previous product architecture is not based on the technical structure, which is difficult to support multi tenant, container, micro service, rapid iteration and so on under the cloud platform in the future. " He pointed out that the promotion of new technologies must subvert many previous perceptions, which is a great challenge to the company's team. Fortunately, Kingdee has always maintained its enthusiasm for technology.

Since then, Kingdee began to invest in the research and development of enterprise level PAAS platform based on cloud native architecture, and put micro services, containers, low code and other capabilities into new products. Only then did Kingdee have the service capabilities of today's enterprise level PAAS platform and the construction of star Han products for super large enterprises on the platform.

? ?“ After cloud transformation, we found that the firmament platform is the entire base, which will support the core SaaS applications of the company and partner SaaS applications in the future. " Zhang Yong said that at present, the product logic of Kingdee cloud is known as "one arrow with multiple stars", and the bottom layer is the sky platform.

? ? ? On the platform, there are specific cloud service products based on enterprises of different scales and stages of development: Kingdee cloud · Xinghan for large enterprise SaaS management cloud, Kingdee cloud · star sky for high growth enterprises, and Kingdee cloud · star for small and micro enterprise SaaS management cloud. With the continuous expansion of the enterprise scale, it can be directly upgraded in the Kingdee sky platform system, and the data and other information will be effectively linked.

? ? ? In today's emphasis on the control of the underlying technology, Kingdee has long been deployed.

? ? Zhang Yong analyzed to the reporter, "we have found that if we blindly rely on the past technology, we will be easily controlled by people when we solve the problem of enterprise personalization, including many tools and configurations that can not meet the requirements of the enterprise."

? ? ? He further pointed out that since 2000, Kingdee hopes to extract some source data or data models in the application, encapsulate the common parts in the system, and better serve the customers ? ? Sexual demand, which is also the earliest idea based on platform.

? ? ? With the emergence of a new generation of technology, Kingdee sees the possibility of really mastering the core technology in its own hands. According to the introduction, through Kingdee's understanding of enterprise management software over the past 28 years, kddm (Kingdee dynamic domain model) has been formed, which can build application scenarios in line with business requirements on the basis of mature common scenario construction and enterprise requirements.

"Today, with Kingdee cloud · sky PAAS platform, a new application can be built in about two weeks to three weeks, which greatly improves the innovation and product iteration of enterprise business, and can more effectively support the change or mode adjustment of enterprises in the future." Zhang Yong pointed out that Kingdee, from the system architecture to the R & D code, has mastered the core technology to support the digital transformation of enterprises.

? ? ? ? In 2020, Kingdee has completed the goal that cloud business accounts for more than half of the total revenue, and has begun to enter the second stage of cloud transformation, with its goal of high-quality development of cloud subscription mode.

It is reported that in the new stage, arr (annual recurrent revenue) is one of the most critical financial indicators of SaaS subscription business, which promotes Kingdee's charging model and even the development model of business ecology need to be re matched.

? ? ?“ In the process of Chinese enterprises transforming from a traditional industry to SaaS industry, on the one hand, we should explore, on the other hand, we should boldly innovate and change the thinking of employees. It turns out that all the organization and performance of our products are evaluated in this way; Today, after the cloud transformation, it depends more on the annual subscription income, which poses a higher challenge to the entire product and service capability. Kingdee also spent more energy and time on corporate culture and employee thinking. " Zhang Yong told reporters of the 21st century economic report.

In a performance exchange, the management stressed that Kingdee's arr data is purely based on the performance of the subscription part and does not include other implementation services. In fact, some of Kingdee's implementation services are completed by partners.

? ? ? Zhang Yong said, "Kingdee, after launching the sky platform, found that enterprises require diversified services. Nowadays, no manufacturer can fully cover all the contents of digital requirements in the whole production and operation activities of enterprises. However, many Chinese enterprises need such a platform and ecology."

Therefore, Kingdee has become the platform role. On the one hand, it can solve the requirements of customers for professional ability, on the other hand, it can provide opportunities for software companies of different sizes to connect customers, and even develop.

? ? “ The advantage of this path is that we can focus more on the core products, and at the same time, we can better empower our partners. In fact, this is not the original model of Kingdee. Many companies are adopting this idea. " He continued.

? ? ? Generally speaking, all domestic industrial fields are aware of the importance of digital transformation, but there is still a huge room for improvement in the current degree of digitization. There is no doubt that there is a win-win situation between manufacturers and platform ecology, but the more important thing is the owner's own consciousness.

? ? ? Zhang Yong stressed to reporters, "we now see many enterprises regard digital transformation as a top priority project. Because this involves changes in various organizations and all aspects of the enterprise, it is difficult to carry out the transformation and reform to the end without a strong promotion and implementation by the top leaders. Today, we hope that executives can more effectively recognize the importance of digital, and then promote digital transformation. "

?