China Insights Lecture on “The Evolution of Chinese Enterprises and its Implications” – Sharing of authentic and candid insights by Prof Meng Xianzhong
The first installment of the 2013 China Insights series opened with bursts of candid quotes and a humour-filled insightful lecture on 27 April (Sat) afternoon, by Prof Meng Xianzhong, Director of Shanghai Jiao Tong University Institute of Strategic Management (SJTUISM) as the guest speaker. Elaborating on the topic of “The Evolution of Chinese Enterprises and its Implications”, Prof Meng shared with some 180 participants his unique observations and conclusions on the challenges faced by Chinese enterprises undergoing transformation and implications amidst the uncertainties in global economy. This seminar was jointly organised by Business China and Shanghai Jiao Tong University Graduate School at Singapore.
Hailed as one of the most talented economists of his time, Prof Meng is highly regarded both in China and internationally as a forward-looking professor, mentor and economic consultant for the public as well as the private sector. Besides his directorship at SJTUISM, Prof Meng is also a visiting scholar at the Duke University and Copenhagen Business School.
Prof Meng commenced the lecture by stating the backdrop for change – change of China’s leadership and administrative direction after the Two Meetings. He used vivid examples like the “Rear view mirror phenomenon” to explain why it was difficult for Chinese Enterprises to be positive, confident and forward-looking. The current system advocates “imparting yesterday’s knowledge to Today’s youth in preparing them for tomorrow. It is quite obvious that it will not work!” Loads of information would be obsolete by the time these youths join the workforce. With the constant change in consumer habits and needs, it is therefore imperative that enterprises remain forward-looking and plan for the next wave of new market needs.
According to Prof Meng’s analysis, business evolution could take two forms – transformation in both production process and product; or transformation in either production process or product. Many IT industries are successful examples of the former, while the latter is well-represented by automobile industries. Prof Meng emphasised that in order for enterprises to transform successfully, besides internal structural and procedural changes, enterprises must have the ability to create new markets and re-invent their products amidst market uncertainties.
Citing the example of the iPhone replacing traditional mobile phone manufacturers, Prof Meng showed that structural reforms in both the product and production process, and the vision to create new usage, new demand resulting in new market sector is vital to successful business evolutions. The fading out of Kodak from the imaging sector is yet another good illustration of companies failing to define their core competency and finally being rendered obsolete. These real life examples are sobering reminders of the immediacy of constantly regenerating and evolving in order to outlast competitions; to which Prof Meng remarked that real competitions are increasingly coming from outside the market sector.
Lastly, Prof Meng reminded that “Business transformation is similar to running a marathon instead of a hundred metres sprint. In marathon, endurance is the key to success while explosiveness is vital in sprinting.” Therefore it is of utmost importance to observe, analyse and research on the market demands before introducing any changes.
Throughout the two and half hours of lecture, Prof Meng with his vast knowledge and experience in entrepreneurship and consultancy work, captivated the audience with many witty and ingenious vignettes. Prof Meng’s insightful and sharp observations resonated well with the audience, with the auditorium at times bursting into laughter over Prof Meng’s authentic candid remarks.
The China Insights Lecture was held at NTU@One-North, and chaired by Mr Will Ding a member of Business China. The China Insights Lecture Series invites academics and industry experts from China, Hong Kong, Taiwan and Singapore to offer valuable perspectives on issues that impact China and the world. Invited speakers will cover topics of their expertise ranging from social and cultural, business and economics, science and technology, as well as politics and international relations; areas that will deepen participants knowledge and understanding of China.