Inspiration for offshore operation (I) restructuring business and processes

When we see Foxconn shoot our peers with the slogan "first-class customers, second-stream devices, and third-Stream Management", we can no longer be indifferent. We are not allowed to talk about some special terms in the tone of "Gossip" and "chatting", regardless of our age or situation. We must take action, learn and imitate all the advanced things that can be learned and imitated until we build our own empire.

At present, many foreign companies, especially development enterprises, are glamorous in the eyes of colleagues. They represent good organizations and process specifications, perfect welfare systems, and relatively high salaries. However, we need to bypass the temptation of being an ordinary employee and carefully analyze and learn how they operate.

Production and Development bases, especially outsourcing industries, come to China. For the main enterprises, they are subsidiaries established in an offshore business model. In essence, offshore operation gives full play to the comparative advantage of labor costs.

The comparative advantage of early international trade occurred in the comparison of the total cost of raw materials and products. This granularity was relatively rough and related to the transportation and value carrier at that time. The development of Information Technology, high-speed channels with the Internet as the transmission channel and new value products composed of electronic data all paved the way for globalization. At this time, a large number of enterprises promote a higher degree of division of labor through restructuring their functions and processes, so as to split and transfer various functions and achieve the goal of making full use of various comparative advantages.

From the original disputes over trade openness and barriers, offshore operation has triggered a strong debate. However, at least for the moment, companies that operate offshore are benefiting from this individual. For more information, see McKinsey's document "offshore operation: a win-win situation?"

Many domestic enterprises in China are also adopting the outsourcing model, but it is often very blind, more like the previous construction contractor model, because the outsourcers have limited maturity, it is difficult to develop and grow, so that the quality and progress of the delivered products cannot satisfy Party A. Therefore, many Party A have moved the project back to the company, even the non-renewal Party B transfers the project to lower-cost Party C and Ding Fang. The quality is further degraded and the time is postponed ......

To avoid this "double-lose" model, there is no need for innovation or creativity. By analyzing the features of offshore operations, it is not difficult to find that business process restructuring is the first step. Only after the business is clearly organized and the functions are single can the business be split to determine what department a is doing, what department B is doing, and how a and B work together, A or B can complete the business by two unrelated groups. In addition to the complete cost transfer, all packages do not have any merits. partners cannot see profit, nor can they guarantee the value of delivery.

How to determine whether the business is outsourced? Based on the comparative advantages of labor costs, simply put, we are good at what we do, what they are good at, what people we can leave, and what people they can provide. The core and importance of the business have been included.

For enterprises that do not want to adopt the outsourcing mode and are small in size, I personally think business process restructuring is of little significance. When the company switched around, there were just a few people who were doing a good job in workshop-style production, and establishing a good friendship among colleagues increased the efficiency.