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Global network: “Lin Zuoming: AVIC industry to build an “Industrial version of Alibaba”

2015/07/15 | Changfeng | Hits:239

The Aviation Industry Corporation of China announced in Beijing on March 31 that Aitron, a platform created by AVIC, has officially come online, marking the first time our country has launched an “Internet plus” action plan, a large-scale industrial interconnection innovation and entrepreneurship platform was officially launched.

In an interview with the Global Times, Lin Zuoming, chairman of the Aviation Industry Corporation of China, said that in recent years, the traditional economic formation has faced huge downward pressure, and how to realize transformation and upgrading, it has become an important issue for AVIC industry. Inspired by some of the country's successful internet companies, businesses can use the internet to transform success, can industry do it? Our conclusion is yes, industry through the Internet to achieve success, not only can, and may face greater room for development. The internet revolution poses disruptive challenges to existing industrial enterprises, both in terms of organization and business models, and could revolutionize the entire industrial landscape. In particular, the German “Industry 4.0” high-tech strategic plan, we have a lot of pressure, we obviously feel that some foreign enterprises, has been changing.

Lin Zuoming said that Chinese airlines used to make a lot of subcontracted parts and components. It can be said that almost all large airliners in the world have parts and components made by us, but this situation is quietly changing based on two realities, one is the increasing use of composite components, which are manufactured using entirely new designs and processes. This technology is also a new field in the advanced aerospace manufacturing countries in the west, with a certain monopoly, and do not want to external expansion of subcontracting and processing, but their own. What's more, the Industry 4.0 of intelligent manufacturing, essentially unmanned, has led to a major breakthrough in reducing and sustaining the cost of manufacturing, in the past, industrial production was largely based on the use of labor, and industrial costs, including labor, increased linearly as the scale increased and the cost increased over time, labour costs are also rising. If Industry 4.0 is achieved, whether in the United States, China or Africa, the cost is the same for the production of robots, the investment and price of industrial robots, there will be basically the same level of internationalization. The advantage of cheap labour will be gone forever.

Lin Zuoming believes that for many new products, if we adopt the previous model, through the sales channels, invest a lot of advertising funds, expand publicity to let customers gradually accept new products, this form of enterprise management brings great risks. For AVIC, for example, according to Moore's law, every 18-24 months or so the performance of electronic products will double, and just as the product is mature, technology may be replaced. The Internet can provide very favorable conditions. The form of connectivity determines that the public can directly participate in the shortest time, and can provide a good“Long tail effect” for market development, a lot of personalized niche demand, once gathered through the Internet, will form a huge market, this situation in the current business environment is already widespread.

As a result, the smaller the enterprise, the more dynamic, the larger the enterprise is likely to produce large enterprise disease, reduced vitality, and top management after all did not directly face the market, in the business war belong to the“Can not hear the gunfire” group, in a command post far from the front line, some decisions may not be accurate, but through the Internet, management levels can be compressed, and flat management can make management aware of the market's needs in the first place, can Be the first time to gather resources to promote innovation. AVIC's 500,000-strong team has a lot of innovative and entrepreneurial energy, which can be gathered in a flat and networked form at the first time, which is completely impossible to do in the traditional form of enterprise organization.

Business has a Alibaba, he says, and industry wants a “Maker of love”. AVIC co-creation platform not only release and produce AVIC industry ideas and products, all enterprises can participate in. The team initially envisages that it will try to raise about 30 billion yuan in 5 years and form an economy of about 100 billion yuan in size.