Companies redraw business models to focus on service, innovation
Chinese companies are redrawing their business models and shifting to more service on innovation-focused strategies such as cloud computing and the “sharing economy.”
The shift was showcased on Friday at the annual China International Industrial Fair, the country’s biggest such event.
Exhibitors covered everything from home appliances to design and telecommunications.
Home appliance giant Midea displayed its enterprise management software, which has been used by many other companies including supermarket chain Yonghui, automotive company Changan and wine firm Yanghe.
“Half of Midea’s IT engineers have been working for the new company MeiCloud to push Midea’s technologies and understanding in the industry,” said a MeiCloud official, adding the startup’s revenue was expected to hit 100 million yuan (US$15.2 million) this year.
And a design startup, Uni-Orange Design Co, plans to use the “sharing economy” model to enhance the development of industrial design, said company executive vice-president Aaron Cui.
Uni-Orangle has attracted 230,000 designers and related firms, including robot manufacturers and software companies, to offer customers “collaborative design” to help them dramatically speed the design cycle and reduce costs.
The company has set up offices overseas including in the United States, Japan and the Netherlands and has plans for Germany and Norway, Cui told Shanghai Daily.
Another exhibitor, Shenzhen-listed Hytera Communications Co, signed an agreement with Siemens on services covering digitalization design consulting and Product Lifecycle Management.
Both sides plan to establish a Hytera experience center in January to display the latest technologies and experiences of “digital enterprise” — leveraging digital technology as a competitive advantage — said Hytera vice president Zeng Hua.