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Manufacturers should be wary of the trap of technological innovation

2011-7-12   Source:   View:635

As China's manufacturing industry and China's economic globalization, China has gradually become a world manufacturing power, and is likely to become the new world manufacturing center. But the cost advantage of labor as the main support manufacturing comparative advantage, the Chinese manufacturing in general is facing the embarrassment of low profits and sustainable crisis. In the long run, in China in order to grow stronger, to be completed by the Chinese manufacturing to China to create the transition, and technological innovation lie in front of us is the universality of the short board.
We need innovation, we are hungry for more like a miracle created by China BYD, desire and passion, but not all of our business decisions. Technological innovation can not solve the current problem in most Chinese enterprises, can not solve the bottleneck of the reality in China. We must beware the trap of technological innovation.
Innovation does not equal leadership
Brutal competition in the market, forcing us to have to become the industry leader, to be invincible. Technology leader that we can think of the most direct and effective path. As a result, many enterprises in technological innovation, "big spenders", Huawei, Chery and other corporate R & D investment in excess of 10% of sales.
However, the fact that, even if the first to complete the technical innovation, it does not guarantee that companies will be able to regain the lead. From technological innovation to the market-leading between, there is still a long way to go, subject to various internal and external disturbances.
From the outside, the most innovative products on the market, and can not be quickly accepted by the market, and need a gradually recognized and accepted by the market process. From the internal, even if the company completed a technical innovation from the technology, but new technology may require new investment in proprietary equipment, employees need to train new skills. Huge technical switching costs and path dependence of technological learning, technological capabilities have formed a rigid, this rigidity will consciously or unconsciously exclude application of new technologies. Firms moved in prior to the original and new technologies face a difficult and painful choices.
In addition, the success of technological innovation does not mean commercial success of the operation. Commercial operation of the product also needs corporate investment and financing capabilities, manufacturing capacity and marketing capability of supporting the support and protection, and even require significant investment in advertising market cultivation. This lack of any one part or weak, can not achieve leadership in innovation.
Innovation is not the only way to business growth
Analysis of Japan, Korea and Taiwan enterprises rise as the market has followers and laggards, most of them have gone from imitation to innovation, from the foundry to create the difficult process of growth. The past 30 years, China's manufacturing industry is also actively engaged in technology transfer, but we have the introduction, there are two fatal Deviation, one light-weight hardware, software (technical and management), and second, re-introduction of light absorption, the result is often introduction - backward - the introduction - and then backward. Thus, although we have accumulated 30 years of development, has made considerable progress, but China has no real emergence of a world-class manufacturing companies, China's overall manufacturing level and the advanced world level there is still a gap. For most Chinese manufacturers, we are the most pressing need is not our technology innovation, but in the mentality of a protracted war for earth imitation and learning, enhance our accumulated technology in the design, reliability, technology, manufacturing processes, basic materials , basic mechanical parts and electronic components, manufacturing equipment based, lean manufacturing, flexible manufacturing and other basic technical skills and manufacturing capabilities to achieve business grow.
Chinese market is a multi-level structure of the imbalance market. Our well-developed provinces and municipalities have reached the international level of developed countries, and our backward provinces and also in some backward countries in the starting line. The gap between east and west, urban-rural gap and the growing integration of international markets, provides us with a great depth of the market arena. At this stage, we need both to advance innovation in Europe and America, but also requires a lot of western and rural areas to meet our basic needs of the majority of the market of traditional products, these traditional products are not innovative competition and technological content, the quality is still the traditional cost . Faced with such depth of market demand, technological innovation, growth is not our only option.
From the industrial division of labor perspective, personalized surplus economy led to the company's competition is the flexibility and speed competition. Scale is no longer the advantage of the ability of individual enterprises are increasingly difficult to support the increasingly complex and brutal flexibility and speed requirements. As a result, companies began to focus on their core competencies to build, but not good ability to supply chain through the powerful combination to be filled, the formation of virtual enterprises through the supply chain to enhance competition, flexibility and speed. R & D, manufacturing, marketing, services are an integral part of the supply chain.
Innovation is the tip of the waltz
Successful innovation, enabling companies to achieve magnificent turn, and even jump for the industry leader. However, technological innovation, like the tip on the waltz, without a solid foot effort, will only aggravate the impulse to turn the tip of the stab wounds, and even an a slip-up, round loser.
In fact, technological innovation, the success rate is very low, even in the United States, basic research of the success rate of 5%, technology development success rate of only 50%. According to Mansfield on the U.S. investigation and analysis of three large companies, 60 percent of the innovation can be a technical success, but only 30% of the project a commercial success, and eventually only 12% of the project bring economic benefits to the enterprise .
In the process of technological innovation, companies need to have strong research and development capacity, need to invest heavily in research and development, the need to maintain a high level of scientific research team. After the innovation, companies need to develop their own specialized equipment related to production, need their own special skills, training of staff. Market, it needs huge amounts of money for market cultivation publicity and so on. More distressing is that new products can be accepted for the market, when will commercial success, and we can create economic benefits are still unknown.
Innovation is such a high-risk adventure, we need to carefully examine each company's effort under the soles of the feet can withstand the weight of innovation: we have a clear innovation strategy? Effective innovation system? Can we identify the real business value and opportunities for business innovation capability? Our ability to continue to invest to innovate? ... ...
We look forward to the early arrival of Chinese creation, we hope that the way companies can avoid the trap of technological innovation, all the best.

 

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