Founder of Yonyou Software, Wang Wenjing (Sina Tech Illustration) At the age of 24, he resigned from a government agency with only 50,000 yuan borrowed money. Wang Wenjing and his friend rented a mere 9-square-meter office in Zhongguancun and started their entrepreneurial journey. Two years later, the Yonyou financial software he developed occupied the highest market share nationwide. Since then, his competitors fell one by one, but Yonyou has always maintained its leading position.
However, his trip to Dongguan in 1996 made him suddenly make a stunning decision - company transformation, transitioning from financial software to ERP and new enterprise management software. Wang Wenjing's judgment was that independent financial software companies would no longer exist in the future.
This transformation put immense pressure on the company. At the time, a self-developed enterprise management software by Yonyou took three years, cost hundreds of millions, and witnessed several collective resignations of employees. After its launch, the product continued to lose money for seven years. Wang Wenjing did not expect this kind of pressure to last for ten years. People around him repeatedly suggested he abandon the product, but he never wavered. It was this transformation that propelled Yonyou from the leader in the national financial software market to the frontrunner in China's management software industry.
In May 2001, Yonyou went public, with its stock price soaring from an opening price of 76 yuan to 100 yuan. As chairman, Wang Wenjing indirectly held 55.2 million legal person shares of Yonyou Software, making his personal wealth soar to 5 billion yuan on the day of the IPO. That day, he got drunk.
Now, Wang Wenjing sees the future potential of cloud computing. "Leveraging cloud computing, new business models will bring greater development potential to software enterprises."
Wang Wenjing frankly admitted that in the coming years, cloud computing will be the key area where Yonyou makes large investments. Currently, the country proposes returning to the real economy, which will make the development environment for the real economy increasingly better. "I believe that when our customers have a better survival and development environment, they will invest more heavily in information construction, which is a huge benefit for us."
Regarding his success, Wang Wenjing believed that without good opportunities, interests, responsibilities, and focus, it would be impossible to succeed. In his view, a company is like a living organism; it needs dreams to drive it forward. Now, Wang Wenjing is weaving the dream of his world-class software enterprise.
"My goal is to continue developing around the informatization field for enterprises and governments, becoming a world-class company and entering the top three in this field."
Cloud Yonyou
2011 marked the beginning of the "12th Five-Year Plan." The strategic requirements of economic restructuring and shifting development methods demand traditional industries to accelerate upgrades. The deep integration of industrialization and informatization ("two-ization") is the inevitable path. Recently, the use of cloud computing in informatization will become the best catalyst for the integration of "two-ization," allowing enterprises to establish and apply information systems more conveniently and at lower operational costs.
**The Economic Weekly**: As a national strategy, how do you see the integration of "two-izations"? The government at all levels is advocating "returning to the real economy." What benefits does this bring to advancing the integration of "two-izations"?
**Wang Wenjing**: The integration of "two-izations" as a national strategy has been promoted for several years. We believe it is closely related to the overall transformation of China's economy, especially the significant shift in the mode of economic development starting from the "Eleventh Five-Year Plan."
Shifting the mode of economic development cannot be separated from the widespread application of information technology, and information technology itself is also rapidly evolving. The breadth and depth of its applications are changing quickly, and the impact of information systems on enterprises has already changed completely compared to over 20 years ago. Back then, IT merely helped enterprises perform some simple calculations, but today, information technology can involve various aspects of an enterprise, from production and operations to decision-making, from headquarters to frontline, from oneself to clients and suppliers, its influence is expanding.
Therefore, the integration of "two-izations" is not only a demand at the national strategic level but also an inherent need for enterprise development. In recent years, Yonyou's main business has maintained relatively high growth, also indicating strong customer demand.
**The Economic Weekly**: Some argue that cloud computing can help the integration of "two-izations" land and be applied to the real economy or enterprises. What do you think about this issue?
**Wang Wenjing**: The informatization in the integration of "two-izations" should evolve continuously with the development of information technology. From electronic processing based on mainframes and minicomputers to desktop handling based on PCs, then to LAN BS architecture applications, and now to the Internet, mobile Internet, and cloud computing, I think this is a continuously evolving process.
I believe that cloud computing is also a landing point for the integration of "two-izations" in terms of enterprise informatization. There are two advantages: it makes the establishment and application of informatization systems more convenient and reduces operational costs. These two points provide practical value for all enterprises pursuing the integration of "two-izations."
I use the four words "more, faster, better, and economical" to describe the value of cloud computing. It provides more services, responds faster, makes informatization applications easier and more effective, and reduces overall deployment and application costs. Therefore, cloud computing is welcomed by enterprises.
Enterprises usually adopt private cloud models for large and medium-sized enterprises and public cloud models for micro-enterprises. Our current services and solutions are basically carried out in these two directions simultaneously.
**The Economic Weekly**: Including Yonyou, what stage do you think Chinese software service providers are currently in? Compared with international vendors, what advantages do you have?
**Wang Wenjing**: I cannot comment on other domestic companies, but relative to international vendors, our own advantages mainly lie in four areas: First, the solutions and software system functionalities we provide are closer to the management innovation needs of Chinese enterprises; Second, technologically, we have a late-mover advantage, meaning despite starting later than international vendors, we can use more advanced technologies; Third, in terms of service, we can be closer to local customers and offer better service guarantees than international vendors, something many customers deeply appreciate; Fourth, higher customer cost-effectiveness and lower overall usage costs.
However, we also have shortcomings. For example, many of our products and services are flexible, giving us a competitive edge in Asia, but European and American customers tend to have stronger application planning, making it challenging for Chinese enterprises to go global.
Accelerator for Transformation
After the outbreak of the financial crisis, the call for returning to the real economy grew louder. Since last year, with the introduction of a series of policies encouraging and promoting the development of the private economy, the private economy in various regions began to enter a healthy development phase, which also promoted the integration of "two-izations" and the transformation and upgrading of the Chinese economy. To achieve true development in the real economy and gain results in "returning," the integration of "two-izations" will play a very practical role in boosting and accelerating development.
**The Economic Weekly**: Regarding the return to the real economy, especially for Chinese enterprises still at the bottom of the smile curve, how do you view the supporting and enhancing role of the integration of "two-izations"?
**Wang Wenjing**: Among our customer base, the largest group comes from the real economy sectors of manufacturing, distribution, and services. Of course, we also have customers in the financial sector, but our largest customer base is still in manufacturing. The rapid and continuous development of virtual economies such as finance ultimately depends on the real economy.
Currently, the state proposes returning to the real economy, which will improve the development environment for the real economy. I believe that when our served customers have a better survival and development environment, they will increase their investment in information construction.
**The Economic Weekly**: Where does the motivation for enterprises to invest in informatization come from?
**Wang Wenjing**: From the enterprise's own development. If doing real business has reached a point where progress is almost impossible, enterprises may not consider further development, advancement, or the integration of "two-izations." However, if the development environment changes, enterprises will have a greater desire for sustained growth, which includes the promotion of "two-izations." For us, this represents a favorable development environment, and we have confidence in this.
**The Economic Weekly**: Do you think private enterprises can also seize more development opportunities during the implementation of the strategy of returning to the real economy?
**Wang Wenjing**: In the long term, reform and opening-up have provided a relatively good environment for the overall development of private enterprises. Indeed, there was a period in the past few years when private enterprises, especially small and medium-sized private enterprises, faced many difficulties and challenges in their development environment. However, we noticed that since last year, the state has realized this issue and has successively introduced a series of encouragement and support policies targeting private enterprises and the private economy, particularly for micro-enterprises, including the recent implementation of the 36 measures. This shows that the state has paid high attention to this issue and is gradually improving the operating environment for micro-enterprises.
Regarding the return of private enterprises to the real economy, personally, I think two points are crucial: first, the real economy is particularly important, and not returning to it is definitely unacceptable; second, the development of the private economy is extremely important for China. The state has paid high attention to these two issues and improved the development environment for the private economy.
**The Economic Weekly**: A few years ago, Yonyou mentioned being an accelerator for transformation and upgrading. Is this viewpoint still applicable? What were your proposals at this year's National People's Congress?
**Wang Wenjing**: A few years ago, when our country proposed transformation and upgrading, as an information software and service provider, our role was to accelerate the transformation and upgrading of enterprises through our products and services. Now, as China's economic transformation and upgrading continue, and the real economy seeks genuine development and achieves returns, the integration of industrialization and informatization plays a very practical role in boosting and accelerating development. As a key support enterprise driving the deep integration of industrialization and informatization in China, Yonyou can still be seen as an accelerator for the transformation and upgrading of China's economy.
At this year's National People's Congress, my proposals were similar to those in previous years, still focusing on the fields of informatization and the development of private enterprises.
Future Goals
For a company to grow bigger and stronger, there are mainly two ways: diversification expansion and specialized development. Under increasingly fierce market competition, how to choose to achieve faster and more stable development is a problem faced by many enterprises.
Typically, if a specialized operating enterprise cannot reasonably raise sufficient funds, it has to abandon some profitable investment projects. However, diversified operating enterprises create a large internal capital market, solving the above funding shortage problems to a certain extent through internal capital allocation within the enterprise, providing more investment and profit opportunities for diversified operating enterprises than specialized ones.
**The Economic Weekly**: About the development of enterprises, the competition between "diversification" and "specialization" is still intense. How do you look at this issue?
**Wang Wenjing**: Many years ago, Yonyou explored diversification, and this issue was basically resolved between 1993 and 1994. Since then, we have been committed to the path of specialization.
In terms of current business structure, overall, Yonyou remains a relatively specialized company, focusing mainly on enterprise and government informatization, without moving towards diversification. The only difference is that we established the Yonyou Happiness Investment Company two years ago, with IT business being our investment focus. We set up the investment company to complement the group's main business in a way that exists as an investment method. All our businesses revolve around the relevant fields of informatization. In fact, we are internally diversified within a concentrated main business area, which could be considered as internal form diversification. From the perspective of diversification and specialization you mentioned, Yonyou is still a specialized company. We also observe that the global IT industry is basically composed of relatively specialized companies. Once IT companies reach a certain scale, they usually have an investment institution to support their main business development, such as Intel having an investment department, IBM having an investment department, and Microsoft also having an investment department. But this doesn't mean they aren't specialized companies.
**The Economic Weekly**: What are Yonyou's main development directions currently and in the next stage?
**Wang Wenjing**: Yonyou's development strategy is mainly determined according to our business direction and market demand. Currently, we serve more than 8,000 large enterprises, over 100,000 medium-sized enterprises, and more than 1 million small and micro-enterprises, providing them with our software and services for informatization construction. Through our efforts over the years, Yonyou has made some contributions to the further development of China's enterprise informatization.
As we discussed earlier, the integration of industrialization and informatization in China is both a national guidance direction and an intrinsic need for enterprises themselves. In this context, China has the opportunity to nurture new world-class enterprises locally. How do we seize this opportunity? The core lies in technological and service model innovation.
On the level of technological innovation, we mainly focus on innovations based on cloud computing and mobile applications. Cloud computing itself is divided into two modes: for large enterprises, we mainly provide private cloud solutions; for small and micro-enterprises, we provide public cloud solutions. Cloud computing is a revolutionary trend in global IT industry information system technology. It's a trend wave.
**The Economic Weekly**: What is the current situation of these technological innovations in terms of user base?
**Wang Wenjing**: We have a broad customer base, consisting of more than one million enterprises of varying sizes, along with a number of government clients. This serves as a favorable condition for our transition to the cloud computing model.
These customers' informatization needs require the application of new technologies and modes. Currently, the representative of new technologies and modes is cloud computing. Therefore, after our cloud computing services are launched, our customers can directly apply systems based on the cloud computing model, rather than just having solutions without finding customers. We are now gradually launching cloud computing solutions. Share to: Related reports: Yonyou releases comprehensive informatization management solutions for growing enterprises, Yonyou Software predicts a 40%-80% increase in net profit for 2011, Xiang Qihan: Yonyou provides soft equipment for innovation in old industrial bases, Yonyou Wang Wenjing: Large-scale investment in transforming to cloud computing Weibo recommendation | Sina Technology's official Weibo account