Acer Shih on ways to change business

This afternoon, Acer's founder, Shih, in a keynote speech on the theme "Business, kingly and Change," discussed his views on business from chess, business and change. The following is the focus of the sharp observation induction:

1, Chess way. Shih said there was a connection between chess and business, and that Acer had already circled a large chunk of the PC on PCs, but the whole competition had changed from the PC era to the mobile internet era. Yesterday is worth something, today or tomorrow is not necessarily worth, so keep innovating.

2, kingly. Wang is actually talking about leadership, Shih that the balance of interests is the balance of interests between people, which is the core core of the whole king of the basic series. That is, not only the benefits, but also altruism, to win together rather than the Western winner take all.

3, the way of change. Shih thinks, all change must change head (change operation thought), this method is divided into two kinds, one kind is the priority change head not substitution. One is to change the head. In this process, enterprise executives should be able to preach the yin, to understand the appropriate decentralization, to give young people opportunities.

The following is a transcript of Shih's interview:

Shih: Hello! Today has been a rare age, with the thirty or forty-year-old people sitting together, take off a suit to communicate with everyone. Acer is the next game without boundaries, not 19x19. There are many similarities between the business enterprise and the next go, the next go is the hope that each stature can create the space to surround, that is to create more value the better. The emphasis is on the hope that the beginning is a more ambitious, and then consider some strategies, do some layout. Emphasis must surround and create value, so the corner from the small end to the middle.

In this case, consider the gas field, not to be eaten by others, to take into account the long-term management of competition do not waste resources. Basically, the emphasis should be on the work, Wai two or more to be counted, and the business is very similar. The only difference is that the business of the board is not 19x19, may be 99x99, or even larger.

The other board is finished is the victory and defeat has been divided, the cause is to continue to come down, the original work of the win may eventually disappear, to redo. Especially in the morning to hear from the PC era into the mobile internet era, the original PC has been surrounded a lot of people, all of a sudden will be eliminated by this market.

Today, I am going to address the topic of "Business, kingly and change", because the future of business will face constant change. The first is to talk about the business road, I gave the definition, it is the exchange of value, so value exchange should be the same time to create value of the behavior, the buyers and sellers to create value.

If the value from the Tao, it should be good faith can create a result of more win, this is to continue to do a good job. The next step is not to talk about the kingly way of talking about 2,500 years ago, but now the leadership of all organizations, large and small, as leaders.

Today, we are talking about Tao, chess, business and change, and know that the way to face the future development is to master the big frame. We can say that the basic philosophy of the East and the West is not the same, the western emphasis is on the concept of win-take-all, we are the hope of common prosperity coexist, this is the basic thinking of common prosperity. Capitalism has two blind spots, the blind spot is the beginning of capitalism, the original is the maximization of shareholder interest. But in the 80 's began to have a blind spot, began to talk about the interests of stakeholders balance.

Then after the 90 's problems began to talk about corporate governance, 2000 years later began to talk about corporate social responsibility and the whole environmental protection issues. The whole thinking is from the outside, in order to achieve the continuous development of human civilization, in this case, if from the eastern thinking, from the inside out, I believe that the future sustainable operation to continuously create value, the interests to balance, this can be sustainable operation.

From this diagram can be seen, sustainable management, create value, balance of interests, sustainable management is the Book of the Days of the Ching, the gentleman self-improvement. Inside the creation value is the authentic heavy load. From the humane point of view, Confucianism is about benevolence and propriety, the balance of interests is the balance of interests between people, which is the core of the whole kingly basic series.

When it comes to creating value, the most important thing is to have six-oriented values, tangible, intangible, direct, indirect, present and future. Human nature is a visible value. Coupled with systemic, capitalist, management systems are also strengthening the image. In turn, to continue to operate continuously civilized words, in fact, the hidden, indirect value is very important, only in six for the development of a balanced to achieve total value.

This is very important. Another value, actually with the time yesterday has value, today, tomorrow is not necessarily valuable, so be sure to constantly innovate. Value exists, and when there is a glut of people, value naturally depreciate.

So we face the future how to innovate, create value, is a necessary. To create value, it is to use a common creation. When we talk about stakeholders, consumer transactions are also stakeholders, and product consumption behavior has been created altogether. You hand over to consumers there are too many consumers, including shareholders, employees, banks, suppliers, channel channels, social environment is also a stakeholder.

When a leader how to shape the balance of interests mechanism, so that everyone can have this incentive, this is also six-oriented lure. It is important that we continue to work together. In turn, balance is difficult, balance is dynamic balance, in constant adjustment.

With the change of objective factors, with the different conditions of all stakeholders, the risk and contribution to face the future is different, so the adjustment in the mechanism is becoming very important. The idea of kingly way is altruistic, self-interest can win for a while, altruism is likely to fight the shot. I personally think that people do not for their own hindmost, but in order to self-interest to fame and fortune, it came up with altruism is the best self-interest.

Organizational culture must have basic beliefs and values, at the same time from the continuous communication from the top, into the daily life of most people. From the most important is not only deeds, deeds the most leading heart think, mouth, do every day, from the beginning of the culture is the basic belief began. The whole kingly culture is an important cornerstone of the enterprise's sustainable operation.

I am very simple to share my entrepreneurial fast 40 years of an experience to share, my left and right side is very simple, because the talk of a half-day is to create value, my consideration is simpler, is to find where there is a bottleneck, and try to break through the bottleneck. Because the bottleneck makes the value no way to play effectively. So just find out where there's a bottleneck and start there. Why is there a bottleneck? There must be some difficulty.

If there is no difficulty, it is not a bottleneck, it is not your turn to break through, so challenging the difficulties into a very basic starting point. Want to do is also very simple, anyway do with others are not the same as good, do the same bottleneck will exist. Be sure to come up with a way out of your own. When I started my business, I found that from primary school, middle school, I heard that there are some bottlenecks in traditional culture, such as disunity, how to shape the common interests, such as master touches society how can progress? And centralization, I began to go decentralized management, why 40 years old to decide to retire at 60, now I have 44 days left to leave the Chairman's position.

This is not the company as my home, but the public, everyone. The main is the blind spot of human nature to break through, such as reverse thinking, is not found the answer on the reverse thinking. In addition to enjoy protest, people are in power, I want to delegate from the beginning can feel very enjoyable. The defeat will win, in the go inside not sure words will abandon the son to strive for greater opportunity space.

Death don't face, we are very face, but the result of analysis is to face analysis of life, many enterprises are to the CEO, chairman of the face of the problem lost, this is not the word. The most important thing is to human nature itself, the implementation of human nature of the mountain, building the arena to inspire talent potential. Business enterprises use a lot of resources, such as money, land a lot of resources, of which the most important of course is people.

If the value of a person to add a 0 in the back, it is very simple; add a 0, it is very possible; I can add another 0. So the return on investment is the biggest, if the whole environment is not good, or even positive negative words even more. How leaders turn human potential into a very important aspect. Kingly is like a North Star sailing in the boundless sea, giving you a direction. Business, the outside world constantly changes, you have to set a new vision, strategy, the whole organization is constantly asking "you have the basic thinking of the King", this is a very important guideline.

Chinese Shi farming, business is no place, today I want ordinary. The Merchant is very sacred, the merchant is in the Shi and the farmer to make the final exchange, creates the value the necessary process, therefore the person must have does the businessman the thought.

I am an engineer now as a businessman, can create to people, to society in the popularization of science and technology to contribute a little strength. The way to go, is to use the benevolent or commercial integrity of the idea of winning more to create prosperity. The last chapter talks about change, in which the Acer is now the third, the first and the second are present, without expecting to go back for the third time. I was very resistant, two or three years ago many people in the company asked me if I want to go back? I said I can't go back, because after I go back, the ability to change within the organization should be built up.

Why are you leaving so soon? is to change the ability to deeply rooted in the organization, otherwise 10 years, 20 years will face reform, then please me out, sorry, you put me out of the coffin inside to help not.

The genetic transformation of the entire organization is very important. The global brand combination of geography, is a reverse thinking, in academia called this is the fourth mode of management, different from the United States, Japan, Europe, the new model, because Taiwan is a very small place. To internationalize without their own special ideas, in 2001 face PC into the computer companies do not do computer, Acer to do the work of the computer to Flextronics, their focus on the brand only focus. But in the face of the current PC to create the value of space has been limited, coupled with the interests of the entire consumer needs to create, in addition to hardware should also add software, more importantly, to serve consumers, this becomes very important.

In particular, the advent of the cloud era to face, put forward the relative from the cloud, and the United States in the big market, the public cloud in the opposite direction of the development strategy, help the personal computer to find ways to become at home, in the office, such a basic thinking is also being considered. Re-making, and recreating three important points.

The first is the global brand combination of geography, the second is about the structure of the Organization, is the master-slave architecture, each company is independent operation of the concept, not subject to the control of all headquarters. The third thought of the process, in the 90 's desktop-oriented computer, so in the market to introduce fast food production and marketing model. Another time, is the day silkworm change. In addition, the Smile Curve, 21st century by 21 listed companies, 2000, the size of NT $200 billion.

The whole has done a lot, even put forward 100 general manager decapitated, this is also a basic thinking of reengineering. Four-level change is proposed at the end of 2000, the brand, Research services division, a lot of resources redistribution, the organization into a simplified, focused, forward-looking, only the leading otherwise fade out, from manufacturing into a service industry, this is also a change.

Today, it is clear that Acer, after my retirement, had climbed to the second stage of the world's first development, with Western business thinking expanding influence. But in turn, the whole new creation space is limited and the old method is used.

Therefore, it is very important to establish a kingly way of thinking. At the same time in terms of services, hardware plus software services, we must take into account the quality of life for the Chinese first, this first to do, use this to cultivate a lot of new core competencies, to the end of the world to make concrete contributions to mankind.

Because the cloud era has arrived, but how to find the ecological circle of the cloud in a large area, can find a lot of stakeholders to create value together, to change the whole market no way to provide new services? I hope that the process of using the King's thinking, and then the Chinese people to contribute to the mission. I hope that the so-called China is not thinking, but considering how much contribution to mankind, and all people are yearning, this is the so-called Chinese dream.

Let me talk about why we use the idea of building a cloud, we are a PC company, we have to lose it. How to change into the cloud era? is to put the entire PC in the home, in the office, may not be used in time you have to turn it into a cloud services data center. Maybe now the resource center is very large, very far away, we are now in the immediate.

This solves the privacy issues, resource issues, ease of use issues, and cost issues that many users are most concerned about. At the same time we this platform is the weather, in the network transmission data are dynamic encryption, like the transfer of the heavenly book, Absolute security.

The same situation because the use of idle personal computers and storage space, the relative cost is relatively low, but also relatively easy to generate benefits immediately. Balance of interests, because to go through such an ecology, we must think of ways to consider the best interests of consumers, because consumers want to go through the cloud, but to have privacy. In turn, we must construct an ecology, can put the hands of their own positioning platform to coordinate their allies, we are co-prosperity coexistence, sustainable development, together for the best interests of users efforts, this is the whole of the thinking.

The value proposition of the whole self-built cloud is to change the idea of the cloud era, all the past thinking is through the United States, of course, now can be said that there are many innovative thinking. The morning is still talking about the connection, is linked to the world, any one person, any one enterprise can easily tandem all the devices or equipment, to create a customized structure, can get the convenience of this era.

During this period, I returned from the beginning of November to be the convenor of the Change Management committee, and suddenly became a third-position on November 21, from the Chairman, the general manager to the Executive Director, before retiring without three jobs.

Soon found the executive long, every day we are eating steamed bread, 44 steamed bread after I retired. Can be in the community and between the two sides to provide some of my thoughts to share the festival everyone. Then listen to the experience of change, change must change the head, but before I was a priority to change my head.

Recently, I had to change, because the natural brain changed. Organizational culture must be reshaped, and this time I use the 5C decision-making principle, such a 5C principle, if you have a better idea to tell me, I do with you, to the end there is no better way, so we have a consensus on the move forward.

Generally speaking, when the change is outside the environment has been a problem, but the solution can not complain outside, should be in the internal thinking, strategy to simplify, focus on small into the overall situation. In the early period often see no improvement, to commit to insist, not half-hearted.

The following inherited people are looking at how to say, because everyone has no confidence. In this process there are some baggage can not be lost, the morning to hear the speech has such a problem. Today is very happy to have this opportunity, thank you!

Recently, I wrote a book on the mainland, is a smile curve 20 years later, is equal to 2012 in Taipei book, today by the Central European Institute to help me make a simple pen. Originally Taiwan called the "smile out of their own way", here directly called the smile curve, we also want to understand the depth of the smile curve.