Amber education: How can indigestion be integrated?

March 1, 2011, the Amber Education released the fourth quarter of 2010 and the whole year without the audit earnings. This is the 7th month after the launch of Amber.　　According to earnings reports, net profit in 2010 amounted to $32.7 million trillion, a 56.3% increase from the year of 2009.　　Whether in the two hours of the day of the listing, the Singapore government's investment companies, McGraw, and many other world-class companies, or the formation of the unique business model, the last six months, the performance of Amber after the listing has led to a wave of overseas investors on the Chinese education industry confidence. In the 10, from the initial "selling software" to "doing service", Amber's business has also undergone several stages of development. The most important sign is that Amber completed 4 rounds of funding before the IPO and set a record for raising 103 million dollars.　　It is also under the thrust of capital, Amber adjusted play, starting from 2008, began to appear as a "integrator", only two years, was bought by Amber education institutions 24. Rapid mergers and acquisitions have urged Amber to go on the market, but mergers are clearly not a simple addition and subtraction, not an overnight move. A "Big boy" who relies on exogenous growth, how to become the "real Kung Fu" of practicing the internal strength? Can the acquisition of the many resources to get through and merge?　　More importantly, how to set up their own core competitiveness in a long product line, is the key to the future growth of amber and the establishment of brand. Exogenous turn to endogenous 2008 before every financial audit, the finance director of Amber Education, Chen Jiaren's mobile phone, will be ringing for 24 hours. After joining Amber for more than two years, the team has established a complete set of financial processes, and now he does not need to deal with "sudden calls" with a high degree of tension.　　It is said that the audit of Amber's second-quarter earnings in 2010, accounting firms only took 15 days. Amber has a very experienced financial team responsible for capital operations, which seems to be recognized by the industry.　　It was also said that Cisco, which had been known for its mergers and acquisitions, had delivered the premium capital-operating gene to Amber, Gu Yish, a chief information officer in Cisco's Greater China, as senior vice president of Amber; Zhou Paugen, an expert at Cisco (China) who has been in charge of finance for 6 years, has served as Senior Vice President and chief financial officer of Amber.　　Amber's prospectus shows that, between 2008 and 2009, the Amber Education group launched more than 24 cumulative acquisitions after multiple rounds of financing; Meanwhile, a merger of 6 institutions will soon be completed, according to Chen Jiaren. The capital market has corresponding rules and advantages. In any fierce competition, the need for happy enclosure of the battlefield, there is bound to be someone with the help of capital "Dongfeng." "If you do it a little bit in the traditional way, it may take another 5 years to reach the current level," he said. Chen Jiaren admits.　　Amber is using the power of the capital market, saving 5 years, "only then we have on a larger platform." But capital is not just about "positive energy", "body"Once the "rapid expansion" of large-scale mergers and acquisitions is not digested, there will also be dire "indigestion". In fact, after the listing of Amber is focusing on from a "acquirer" to the "integrator" turn, the biggest change is in the amount and strategy of mergers and acquisitions control and reduction. "In the future, the revenue from mergers and acquisitions will be controlled by around 10% of the annual revenue," Chen Jiaren said.　　Amber obviously realized that the outer edge of the enclosure can not bring about the continuous growth of space, the urgent task is to "external growth" of the center of gravity, to focus on the internal integration of enterprises and get through, that is, "endogenous development." Chen Jiaren said Amber had a set of screening principles at the beginning of the selection of acquisitions, for example, the first is to screen the "vacancy" areas, mainly in the Bohai Sea area, the Yangtze River Delta, the Pearl River Delta and other places; the second is to find local influence and teaching quality of the top three institutions; The third is to have the same cultural ideas ... "Amber's idea is, Continue to look for interrelated acquisitions on your own long enough product line. They are very good at finding this synergy in all kinds of resources and making their own values.　　One industry personage analyses the way. The once rigorous merger principle, has laid the foundation for the later fusion. Since the large-scale mergers and acquisitions, Amber's regional distribution point has been basically completed, "Next, the management system, financial system, teaching process, personnel training and so on a number of links through."　　In the case of finance, Chen Jiaren just joined the Amber, the financial department only 15 people, and now the financial staff of more than 200 people, every merger in the organization, there will be financial personnel stationed, docking. At the end of 2010, many buses in Beijing had Jinghan education 1 to 1 of the ads. This year seems to be the best year for Jinghan education. After joining Amber, the name of Jinghan education was preceded by the logo of Amber, and in the great ecosystem of amber, all the institutions ' quality teaching courseware resources were shared on the platform. Along with this, Jinghan education's annual compound growth rate reached more than 50%. In addition, 2009 by the Amber acquisition of the Granville Technology by the Amber shareholder Cisco's favor, the two sides together to create a "360 Talent training program."　　At present, the industry's renowned internet expert certification CCIE, its 30% are through the technology of the Granville training. There have been some changes in management's life after the merged institutions, some family businesses and self-made couples, have been "on the big ship of amber." Huanggui was a former headmaster of a training school in Dalian, and his training school had an annual turnover of nearly 8 million yuan. "But now I'm turning into a professional manager."　　Huanggui told reporters that at present, he is the general manager of the vocational education, the management of the business reached 200 million yuan. "The first 6 months after the merger, we first opened the financial and IT systems, after six months is the teacher training content sharing, as well as the market and other departments of the unified training; and then, is the culture of the running-in. "Amber Investor Relations director Zenhozong told reporters that these acquisitionsThe agencies that come in want to get into the big ecosystem completely and smoothly, and the process usually takes 2-3 years. Only in place of integration, can urge the development of endogenous business.　　After the listing of Amber, is in the internal integration period. At the same time, in 2010, Amber launched a "A + alliance", which also became the touchstone of future Android mergers and acquisitions.　　"We have the intention of mergers and acquisitions first into the ' A + alliance ', first love, after marriage," "A + alliance" within the body of the complete docking and use of amber products, after six months to a year of observation and cooperation, and then see whether the need for real mergers and acquisitions.　　Vocational training in the large system of the amber education, the core of the two large business, namely, basic education and vocational education.　　After the merger, the other adjustment of the amber listing is to strengthen the construction of the core business vocational education, and the intensity ratio of basic education and vocational training will be adjusted from 6:4 to 5:5 and rise to equilibrium. Unlike several other U.S.-listed education companies, the Amber Education provides both primary and secondary school tutoring, as well as full-time primary and secondary school and university education.　　Because the product line is longer, it also makes Amber face such embarrassment--in any subdivision area, it seems that there is no "big" core business. How to build the core competitiveness? As everyone knows, Amber has a big support point--it technology. It can be said that it is the foundation of the development of Bo, "if this upward derivative of their core competitiveness and business barriers, is the most appropriate way."　　"One insider predicts. Previously, Amber built an intelligent learning system. With the support of this system, both basic education and vocational education can realize the mixed teaching mode of "offline classroom + online tutoring".　　In this process, the application of IT technology is more replicable in vocational education than the traditional tutoring mode in basic education. In the vocational education of Amber, the part of "training base" is emphasized. For example, to train a Java engineer, the training base will create a corporate environment for students, and the real business, and then several students into the project, by a project manager with a project, until the project completed. In this process, students communicate with project managers on a daily basis, while online, students can complete various standardized coding and programming exercises and eventually generate a rating from the Intelligent Learning system. "At present, the domestic IT training market has not formed an absolute monopoly of the industry, amber this kind of borrowing force it mode, it is easier to help accelerate endogenous growth, to achieve large-scale expansion."　　"Zenhozong said. Amber while using it technology to open the various bases and amber intelligent system, while in the traditional education model based on the production of standardized replicable mode. "Because it can show the personalized education of amber, more standardized and universal, if there is no it platform, can never be large-scale." "Amber Vocational Education Division general manager Huanggui said." Technology can promote the rapid expansion of business, but also in the project manager personalized baseOn the foundation, to ensure standardization. Business relies heavily on sophisticated it technology, which is precisely the gene of amber. It is worth mentioning that Amber's training base project, is to take the form of cooperation with the local government.　　People familiar with the matter told "business value", amber education in the context of government resources, has won the Kunshan, Dalian and other IT training base project, for the future development of the Bo increased the imagination of space, which is difficult to replicate the advantages. Training base of the curriculum content, are based on local government planning, and local talent needs to do two-way docking. Cultivate good talent directed to the development of the park, on the one hand to solve the problem of employment, on the one hand completed the reserve of talent. Among them, Kunshan's training base local government funded 500 million yuan, only the first phase can accommodate 3,000 students of the bed and breakfasts.　　April 2011, the first phase of the Amber training base in Dalian will also be completed, the capacity of 5,000 students for the Dalian building it Software Park prepared a large number of talents. It was revealed that the first 3 years of the training base, the government support all rent relief. In 3 years ' period, rents will be collected in small increments and on a yearly basis. "We have signed a 20-year contract with the government and the rents for the future are very reasonable," he said.　　"Chen Jiaren said. Although the listing of Amber has dismissed some people, it is even thought that such success is tricky.　　But amber through mergers and acquisitions to achieve exogenous growth, and then the internal integration, and focus on building the core business model, objectively indeed has been outside the applause and doubts in the form of a grid. Listing is a hurdle, many enterprises in this sprint process, will leave serious sequelae, so the success of the listing is often an enterprise strategic rhythm of the conversion point. For Amber, after a quick round of exogenous growth, the education institutions that landed in the NYSE will depend on whether they can achieve internal digestion and integration, and turn the "tricks" into a solid "foundation".