transform or be disrupted - home | amcham...world key themes (book released in july 2015) five of...

Transform or Be Disrupted

May 10, 2018

Shanghai

Presentation by Dr. Edward Tse

Founder & CEO, Gao Feng Advisory Company

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Gao Feng Advisory Company

A mega meeting point

2

Technology China

Source: Gao Feng analysis


China’s digital landscape at a glance

3

772MTotal Internet users in

China (Dec 2017)

USD 25.3Bn

(GMV sales on Alibaba

Singles’ Day 2017)

753MTotal mobile Internet users

in China (Dec 2017)

200+Global cities with Mobike

operations since April 2016

450MDidi users across

400+ cities in China (2017)

980MMonthly active users*

on WeChat (Sep 2017)

Note: *Combined MAU of Weixin and WeChat; Numbers are latest published figures

Source: CNNIC; Literature research; Gao Feng analysis


New shifts

4


Middle Class Technology Communications

“New Rural” “New Retail” Globalized Resources


In China’s Disruptors, we chronicle power of

the Chinese entrepreneurs

5

The real force in Chinese economy is

increasingly private companies, not

SOEs

Leading private Chinese companies

are innovative and ambitious

They are changing not only China

but increasingly also the rest of the

world

Key Themes (book released in July 2015)

Five of the best new books on

innovation

– China’s Disruptors’ public

recognition by Fortune.com,

April 2015

“ ”Follow Us


Geely: from a vehicle manufacturer to a

transportation services provider

6

Passenger Vehicle

1997

The first privately owned

car company in China

Premium Passenger

Vehicle

Aug. 2010

Acquired Volvo Cars

Taxi

Feb. 2013

Acquired the London Taxi

Company (Renamed as London

Electric Vehicle Company, now

under Geely’s new energy

commercial vehicles division)

Oct. 2016

Launched Lynk & Co., a connected

car brand providing personalized

mobility services to young buyers

Vehicle Connectivity

Financial ServicesMay. 2017

Invested in Saxo Bank, a pioneer

in global FinTech innovations

Ride HailingNov. 2015

Launched Caocao, a

NEV ride hailing platform Electric Vehicle

Oct. 2017

Launched Polestar, a

premium EV brand,

using subscription model

Flying CarNov. 2017

Acquired Terrafugia, the first

flying car company in the world

Vehicle Technology

Feb. 2018

Purchased a 9.7% stake in Daimler,

aiming to strengthen electric and

autonomous vehicle technologies

Commercial Vehicle

Dec. 2017

Acquired 8.2% stock

shares of AB Volvo,

strengthening Geely’s

truck and bus business

CASE EXAMPLE

Source: Baidu Baike, Sohu Auto, Geely official website, Gao Feng analysis


Rise of New Retail

7

CASE EXAMPLES


Mobile APP-powered

offline experience

“Eat as you shop”

model

30-min guaranteed

delivery service

(within 5km living

circle)

24/7 cashier-free

convenience stores

and unmanned

snack bars

Sensors to track

inventory and

customer in-store

movement real-time

Hema Fresh

盒马鲜生

Yonghui

Superstores

永辉超级物种

JD.com

7Fresh

Xingbianli

猩便利

BingoBox

缤果盒子

TaoCafe

淘咖啡


The fundamentals of retail are being reshaped

8

Consumers Products Retail Stores

Limited consumer data

and insights

Data silos

B2C mass production

Product-centric,

transaction-driven

Traditional retail

formats limited by

physical constraints

Data-driven dynamic

consumer profiling

Personalized products

and services

C2M mass

customization

Integrated products and

services experience

Seamless integration of

online and offline retail

Reimagining new

shopping scenarios

Status

Quo

New

Retail



New consumer dynamics and tech enablers are

transforming the manufacturing sector

9


Product and service innovations based on market data analytics

Order-based production

Smart factory with high automation

AI-powered analytics

Human-robots collaboration

Mass customization

Connectivity

Precision marketing

Online merging with

offline (OMO)

Predictive demand forecasting

Real-time inventory tracking

R&D Manufacturing Products Supply Chain Retail Consumers

An end-to-end holistic digital transformation is required for the future era of C2M manufacturing

B2B?

B2B2C?

C2B?C2M?


The future of manufacturing will need to be more

customer-driven across the entire value chain

10

Future C2M

Customer-centric Value Chain

Traditional B2C

Manufacturer-centric Value Chain

Focus on users

(potential

consumers) not

just customersOmni-channel

marketing

Co-creation

with usersProduction

R&D

Service Sales

MKTEnd-

users

Targeted sales;

Personalized offerings

Focus on customers

experience not CRM

Users participate in every stage of production

Flexible production and open supply chain

Rapid response to market dynamics enabled by technologies

Mass

customization;

Order-based

production


Procurement

Production

Supply Chain

Sales and Marketing

End-users

Closed chain production

Distant from end users

R&D


Manufacturing will be AI’s next frontier

11


Predictive

Maintenance

Digital Twin Factory

AR/VR Tools Advanced Automation

Collaborative

Robots

Real-time Supply

Chain Management

Robo-advisors/

Virtual Service Agents

Prescriptive insights

Enhance visibility into

shop-floor operations

Improve quality control

and yield

Minimize unplanned

downtimes

Automate risky activities

Reduce inventory costs

with better forecast

model

Enhance revenue with

better sales lead

identification

Benefits

AI-enabled Manufacturing Technologies

EXAMPLES

AI-based Visual

Quality Inspection

Cognitive Procurement


Organization structure will also need to be

adjusted to cope with disruptions

12

ILLUSTRATIVE

. . . Frontline Platform：

Innovative, agile and customer-centric small units/teams

Backend Platform：Basic infrastructure,

Investment committee, strategic decision making

Middle Platform：Shared capabilities,

supporting functions, open architecture

Marketing

Supply

ChainTechnology

Data &

Analytics Others

Frontline Platform:

Self-operating and

nimble frontline

operation teams

Middle Platform:

Shared services

platform to empower

vertical business

units

Backend Platform:

Infrastructure

development, top-

level strategy design

BU 1 BU 2 BU 3 BU 4 BU X

Source: Alibaba Group; Gao Feng analysis

Understand consumer’s needs, identify new opportunities,

launch pilot experiments, engage with ecosystem partners, etc.

An entrepreneurial and agile organizational structure

Gao Feng Advisory Company 13

Competitors?

Collaborators?

Rules of business?

China only? Or, China for the world?

China as fringe or as core?

How can you be more Chinese than

the Chinese?

Does it matter? What’s your response?



Who is Gao Feng Advisory?

14

THANK

YOU

A pre-eminent strategy and management consulting firm with roots

in China and global vision, capabilities and resources network

We help our clients address and solve their toughest business and

management issues

Our behavior is led by our values

− We put our clients’ interest first and foremost

− We are objective and we view our client engagements as long-term

relationships rather than one-off projects

− We view our people as strategic assets and not merely “units of

capacity”

− We believe that every member of our team can contribute to problem

solving for our clients, from the most senior to the most junior

Our seniors are former senior consultants at leading management

consulting firms and/or senior executives at large corporations

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Us


Gao Feng’s heritage and our deep roots in

China

15

Our name Gao Feng 高風 is taken

from the Song Dynasty Chinese

proverb Gao Feng Liang Jie 高風亮節

Gao Feng denotes noble character

while Liang Jie refers to a sharp

sense of integrity

We believe this principle lies at the

core of management consulting – a

truly trustworthy partner who will help

clients tackle their toughest issues Follow Us

Gao Feng Advisory Company 16

Contact us

Please find below the contact details for our office locations in

Beijing, Hong Kong and Shanghai or contact us at

[email protected]

Visit our website: www.gaofengadv.com

Gao Feng WeChat

Official Accounts：Gaofengadv

Shanghai:


Suite 502

119 Ma Dang Road

Huang Pu District

Shanghai 200021, P.R. China

Tel +86 21 6333 9611

Fax +86 21 6326 7808

Beijing:


Suite 707, Guang Ming Hotel

42 Liangmaqiao Road

Chaoyang District

Beijing 100016, P.R. China

Tel +86 10 8441 8422

Fax +86 10 8441 8423

Hong Kong:


Suite 923, Level 9

Lee Garden One

33 Hysan Avenue

Causeway Bay, Hong Kong

Tel +852 3959 8856

Fax +852 3959 8800

transform or be disrupted - home | amcham...world key themes (book released in july 2015) five of...

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