> Xu Shaochun’s remarks on enterprise management innovation: how to empower your digital capability at the start of the 14th FYP

Xu Shaochun’s remarks on enterprise management innovation: how to empower your digital capability at the start of the 14th FYP


May 27 saw the opening of China Enterprise Management Innovation Conference 2021 in Shenzhen Kingdee Software Park, Guangdong, hosted by China Enterprise Confederation (CEC) and co-organized by ShenZhen Enterprise Confederation (SEC), Kingdee Software (China) Co., Ltd and Shenzhen Bus Group Co., Ltd.

Highlighting the theme “Carry out the 14th Five-year Plan and embark on a new journey of enterprise management”, the conference provided a chance to exchange views and discuss how enterprises may gain a foothold at the new stage of development, stick to new development philosophy and shape new development pattern through management innovation; meanwhile, 264 achievements in enterprise management modernization and innovation in China were unveiled and publicized, including 32 first-class achievements, and 232 second-class achievements, and certificates were granted to the enterprises. 

Xu Shaochun, chairman and CEO of Kingdee Group

Xu Shaochun, chairman and CEO of Kingdee Group, a host of the conference, shared The Transformation Path of Kingdee with the audience. “Since our inception in 1993, Kingdee has experienced three shifts so far. The first one was moving from DOS to Windows, the second one from financial software to ERP and the third one from ERP to enterprise cloud services. Kingdee has achieved something but we still have a long way to go. The transformation of an enterprise is like mountain climbing. The higher you go, the more difficult, but the view is also better.”

He added: “Kingdee’s income from cloud services recorded a compound annual growth rate of 62.64% over the last six years, and ‘cloud income’ as a percentage of total income of the Group was almost zero in 2014 when I smashed a laptop but is now 57%. Kingdee has the biggest share of the Chinese enterprise cloud service market now. The stock price of Kingdee International soared by 14 times over the last six years, increasing its market capitalization to more than RMB 130 billion.”

Kingdee has helped 6.8 million enterprises of all sizes carry out digital transformation and rebuild their digital capability. Hence, Kingdee has developed a unique pyramid model of enterprise transformation. The transformation of an enterprise is first of all about the transformation of operation. To be more specific, customer-centered end-to-end operational process transformation combines digitalization with operational transformation to enhance digital capability. The second one is product and service transformation. And the next one is strategic transformation or business model transformation. At the top level, the most important one is cultural transformation. 

Speaking of product and service transformation, Xu Shaochun has a particularly deep insight. “Many large enterprises have an IT department or even an IT subsidiary. Why? Because every enterprise, especially large ones, is becoming a software company. In this context, how should Kingdee make a change? We should become the software company behind the software companies. Therefore, we need to provide platforms. Kingdee has spent over RMB 2 billion over the last four or five years and has developed the Kingdee Cloud Cosmic platform, a cutting-edge enterprise-grade PaaS platform in China that is totally free from any dependence on any foreign technology and has overcome the ‘bottleneck’ problem. In addition to a wealth of software copyrights, we have filed for more than 1700 patents and won 4 national patent awards. Kingdee Dynamic Domain Model (KDDM) is especially important, because digital transformation requires more scenario thinking. Realizing scenario thinking through a platform requires us to transform our products and services and turn traditional software into a cloud service platform. For this purpose, Kingdee has done a lot of technical innovations.”

“The transformation of enterprises should respect Tao. ‘To him who holds in his hands the Great Image (of the invisible Tao), the whole world repairs. Men resort to him, and receive no hurt, but (find) rest, peace, and the feeling of ease.’ Every enterprise is changing. In this great times, with the great rejuvenation of the Chinese nation underway, the transformation of enterprises will be a success, if every individual has Tao and the world in their mind and is united together,” said Xu Shaochun.


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