Different places, team temperament and play a lot of different

Abstract: Two days ago to participate in the name of the event in Shenzhen, the scene to the majority of friends are Shenzhen hardware Circle friends, Beijing also has a part. Sit next to me an uncle is a typical Shenzhen entrepreneur, do is the components waterproof treatment. Half of it, strong and strong on the stage.

Two days ago to participate in the name of the event in Shenzhen, the scene to the majority of friends are Shenzhen hardware Circle friends, Beijing also has a part. Sit next to me an uncle is a typical Shenzhen entrepreneur, do is the components waterproof treatment. In half, strong and strong on the stage said 36 Krypton for entrepreneurs to provide coverage, incubation and other services are free, the stage under a clap of applause and applause, he side of the applause, side asked me: "Then who will pay you?" I froze for a second.

It seems to me that it is difficult for many people to imagine the service provided free of charge.

Back to the subject. The new hardware has been burning for more than a year. A good domestic team I have talked about a round, factory components in the upstream of the organization contact is not much, single closest to the consumer of this layer, most of the entrepreneurial team either in Beijing, or in Shenzhen, accounted for the total of 80%. The different places, the team temperament and play also have a lot of differences.

In order to discuss the convenience, first make a simple definition, I said the Beijing team, is the company's main part of the team in Beijing, the Shenzhen side is the same. The Beijing team usually has a more intense internet background, perhaps in the early days will run by the CEO, there is a friend that said, "make money to buy all the tickets," may also have a special hardware in Shenzhen or the team in the factory stare at production, but the main body or in Beijing to do software. The Shenzhen team is usually the hardware industry origin, in the production chain management and hardware design has a strong foundation, may set up a branch in Beijing responsible for the market and BD, but the gene or Shenzhen industrial environment bred.

My question is, in the long run, who has the advantage of the two parties?

I asked several acquaintances, both North and south, to try to draw a picture of the two sides.
Beijing team:

Most of them are internet backgrounds and are accustomed to "free" and "wool out in pigs", focusing on experience, software and services. Pay attention to the brand and publicity, will be very early to consider the product market image, many teams are products have not been the shadow began to preach everywhere, played a lot of hit. Rely on VC, financing, burning money bigger, continue to finance ... Go major or go home, cash flow is not that important. Do not know the hardware, especially the first contact, will eat a lot of losses, in the cost control and supply chain management has a lot of problems. Skipping tickets is a common phenomenon.

Shenzhen team:

Many founding teams have strong genes in Shenzhen. In the World Manufacturing Center for many years, each line has accumulated enough experience and contacts, the factory is their own buddies, look at your equipment to know where the parts are, the total cost of how much, may have what fault. Things in the hardware industry are clear. The way to make a profit is simple, I am a part of this huge production chain, from the upstream to spend how much money to buy a set of things, assemble and produce, increase the price and sell it downstream. Find orders, production, control costs, ensure cash flow. This is the traditional hardware industry's normal and genetic. Free？ I have to pay the workers! Under the influence of traditional hardware ecology, Shenzhen team is more pragmatic, low-key, a year turnover of billion will not come out to preach, the market and brand are weak, financing is also so. It's hard to talk to an investment agency in the TMT field.

There are so many differences between the two sides, and the big reason is that the industries that nurture both are too different. The Internet and traditional manufacturing are two industries with completely different logic. The Internet is the user first, traffic is king. Traditional hardware is to control the cost of orders for the king. The internet is about rapid expansion, the early stage of loss later to make money, the traditional hardware is about cash flow for the king, how much to earn how many, lose money trading do not do. Internet people talk about dreams and visions, everyone wants to make 1 billion dollar company, Gao first-class. Traditional hardware people ask for a year to earn a 10 million, this year, what we do to make money, next year not immediately turn around.

Now, the two sides need each other. New hardware just got up, few people know how the future will evolve. However, it is necessary to do a good job of software services and hardware products at the same time. On this point alone, both sides have their own advantages and disadvantages, and exactly is complementary. So, the best thing is that the two sides can fit together or join forces. Now can see this trend in the emergence of many hardware manufacturers to take refuge in Baidu's cloud platform and services, many Beijing team is also in the south to find the right hardware team to fill their own deficiencies.

So, the two factions of different personalities, who have the opportunity to integrate each other?

It depends on whose side the trend stands.
Personal opinion, new hardware, smart hardware, or Internet of things, these are the precursors of the next wave. Hardware is the shell, what really matters is the connection behind the network and the resulting service. Taking Nest as an example, it is true that its hardware design has extraordinary, it is different from similar products, the most intuitive bright spot, but it is only added sub-item, the real valuable is through real-time online network and sensors to capture the massive data, and after the intelligent learning for the user to provide temperature adjustment services. Fitbit, jawbone or iwatch may be profitable in the early stages of hardware design and appearance, but in the long run, software and services are really more potential to dig.

In the past, internet companies have more vitality than traditional hardware companies, rare hardware companies to buy internet companies, and conversely, there are many, such as Google acquisition moto and Nest,facebook buy Oculus VR, Microsoft bought Nokia and so on. Apple is a special case, both hardware and software, but also acquired a lot of internet companies.

If you also agree that the future of new hardware is data, networks and services, it is clear that the Beijing team is better able to integrate each other. Integration needs to lead the trend, the market, products and capital are leading. To run ahead without capital. The Beijing team also has an advantage in this area, and more capital is willing to stand on their side because the two visions are more consistent and are willing to bet on a few years of pie. If the steps ahead are steady, do not TA, more capital will come in succession, to ensure that you have enough money to expand and mergers and acquisitions.

As you say, the Shenzhen team can go to the northwest?

I don't mean that. On the contrary, in the past three years, I think the Shenzhen team in many places will have a big advantage. Shenzhen team suitable for disorderly warfare, the situation is not clear, Beijing team may still be thinking of planning vision, take a step to see a step, the Shenzhen team may neat product to start shop market. When the Beijing team wakes up and starts to move in this direction, the Shenzhen team has millions of users. This is not a joke, several of my contact with the Shenzhen team is so dry, people are really stuffy sound make a big fortune. But after five years or more, when the new hardware industrial chain matures, I will be more optimistic about the Shenzhen team to concentrate on ODM or OEM, rather than sidelines to do business alone.

Superfluous words (which I find interesting but do not know where to put):

"You have not found that Beijing and Shenzhen have not put a piece of talk before, but now two of the relationship is particularly close, what activities both sides visit the Secret Service." "Yes, good phenomenon.

"The window period is only two or three years, followed by a large-scale acquisition." "Why?" he said. "Can't do it, only acquisitions." ”

"Now give me a lot of money, in fact, I do not know how to spend, but continue to sell equipment." Want to take off or qualitative change, need to have a different play, now I do not know what to play. ”