Transform or Be Disrupted Follow Us Presentation by Dr. Edward Tse - - PowerPoint PPT Presentation

Transform or Be Disrupted

May 10, 2018 Shanghai

Presentation by Dr. Edward Tse Founder & CEO, Gao Feng Advisory Company

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A mega meeting point

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Technology China

China’s digital landscape at a glance

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772M

Total Internet users in China (Dec 2017)

USD 25.3Bn

(GMV sales on Alibaba Singles’ Day 2017)

753M

Total mobile Internet users in China (Dec 2017)

200+

Global cities with Mobike

• perations since April 2016

450M

Didi users across 400+ cities in China (2017)

980M

Monthly active users*

• n WeChat (Sep 2017)

New shifts

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Middle Class Technology Communications “New Rural” “New Retail” Globalized Resources

In China’s Disruptors, we chronicle power of the Chinese entrepreneurs

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• 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

“ ”

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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 Services

• May. 2017

Invested in Saxo Bank, a pioneer in global FinTech innovations Ride Hailing

• Nov. 2015

Launched Caocao, a NEV ride hailing platform Electric Vehicle

• Oct. 2017

Launched Polestar, a premium EV brand, using subscription model Flying Car

• Nov. 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

Rise of New Retail

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CASE EXAMPLES

• Mobile APP-powered
• ffline 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

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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
• nline and offline retail
• Reimagining new

shopping scenarios

Status Quo New Retail

New consumer dynamics and tech enablers are transforming the manufacturing sector

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• 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
• ffline (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

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Future C2M Customer-centric Value Chain Traditional B2C Manufacturer-centric Value Chain

Focus on users (potential consumers) not just customers Omni-channel marketing Co-creation with users

Production R&D Service Sales MKT End- 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

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• 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

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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 Chain Technology Data & Analytics Others

• Frontline Platform:

Self-operating and nimble frontline

• peration 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

Understand consumer’s needs, identify new opportunities, launch pilot experiments, engage with ecosystem partners, etc.

An entrepreneurial and agile organizational structure

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• 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?

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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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Gao Feng’s heritage and our deep roots in China

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• 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

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Contact us

Please find below the contact details for our office locations in Beijing, Hong Kong and Shanghai or contact us at info@gaofengadv.com

Visit our website: www.gaofengadv.com

Gao Feng WeChat Official Accounts： Gaofengadv Shanghai: Gao Feng Advisory Company 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: Gao Feng Advisory Company 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: Gao Feng Advisory Company Suite 923, Level 9 Lee Garden One 33 Hysan Avenue Causeway Bay, Hong Kong Tel +852 3959 8856 Fax +852 3959 8800