Corporate Innovation is Not Only a Technological Innovation——An Interview with NPC Deputies and Chairman of Fengshen Tire Co., Ltd. Cao Chaoyang

At the two national conferences, the construction of an innovative country has become one of the focuses of the deputies. In the construction of an innovative country, the company’s dominant position has also become the consensus of everyone. However, what does enterprise innovation mean and how can companies innovate to assume the responsibility of the country's innovation main body? Cao Chaoyang, deputy to the National People's Congress and chairman of Fengshen Tire Co., Ltd., said in an interview that corporate innovation is a complete system. Apart from the core of technological innovation, we must also carry out mechanism innovation, management innovation, and corporate culture innovation. Only by establishing a three-dimensional innovation platform can a company's independent innovation achieve success.

Since the central government proposed an independent innovation strategy, many people in the business community mentioned innovation as a consideration of technological innovation. In fact, the connotation of corporate innovation is far more than just technological innovation. Cao Chaoyang said that it is undeniable that technological innovation is at the core of the corporate innovation system. This is because technological innovation is an important guarantee for supporting the development of enterprises, and it is also an important foundation for promoting the transformation of growth patterns of enterprises, and the resulting effects are also visible and tangible. They can bring real benefits to enterprises. Therefore, it is also the most concern for everyone. Especially in the tire industry. When we talk about the gap between Chinese and foreign companies, we always talk about one reason why our technology is backward. It seems that as long as we put the technology up, we catch up. Therefore, all companies focus their attention on technology development, and even give up the fundamental interests of the enterprise to obtain joint ventures in order to obtain advanced technology.

Cao Chaoyang told reporters that the tire industry is a special industry. It is one of the few labor, technology, and capital-intensive industries in the industrial sector. Therefore, the independent innovation of this industry is by no means merely a solution to technological innovation. Because technical innovations are only technical issues, no matter whether it is the creation of new products or the increase of technical content, the problems that are solved are the products themselves. Although in an enterprise, products are the ultimate result of all corporate actions, in the process of producing this result, it is necessary to coordinate the optimization of operations in a series of fields such as management, systems, and corporate culture. Without these all-round innovations, it is hard to say that a single technological innovation will be difficult to achieve, and even if advanced technology is created, it will not become the ultimate development and benefit of the company.

Cao Chaoyang, taking the development of Fengshen Tire as an example, said that “Compared with 2000, the output value of the entire company increased by 3 times last year, the profit increased by 9 times, and the foreign exchange earned through exports reached US$170 million.” Cao Chaoyang said that these striding developments. It is a process of independent innovation. Of course, this innovation can not be separated from technological innovation. For example, last year, Fengshen Tire's R&D investment exceeded 3% of operating revenue, new product revenue accounted for 38% of total sales revenue, and two new products were launched every week. Last year, nearly 20 national patents were filed.

"At the same time, we have also done a lot of work in management, mechanism, and corporate culture innovation," said Cao Chaoyang. Fengshen Tire identified 2004 as the "basic management year." They hired two representative consulting organizations from Shanghai and Zhengzhou, and inspected, designed, and guided management innovation in the factory, established a new management structure, and introduced cadres. The competition mechanism established a key performance indicator (KPI) as the core performance appraisal system, the last elimination mechanism, etc., streamlined the compensation system, promoted process reengineering, and strengthened logistics management. It also promotes advanced management concepts and management measures such as “crisis management”, “zero defect management”, “high-index work method” and “non-bottom tender procurement”. In terms of corporate culture innovation, Aeolus has formed a vision of Fengshen with “innovation, confidence, passion, and return” as its core content and “being a first-rate enterprise of today, making users’ first choice products, and educating the peers to respect the team”. Consistent and innovative are the corporate culture of our constant, better and our only "Aeonomy philosophy". This innovation in corporate culture has motivated the original status quo and consciousness among employees to become a desire and pressure for the future development of the company and become a driving force. As a result, the impulse to innovate is getting stronger, and the passion and enthusiasm for innovation are getting higher and higher, thus making the core of technological innovation more and more smooth and the effect getting better and better.

“It is this three-dimensional innovation effort that has enabled Aeolus Tyre to develop from a state-owned tire company that started out with the traditional bias tires and the development of radial tires in only 5 years to a change in growth mode. , Sales revenue ranked seventh in the industry, the best listed companies in the unit of efficiency. "Cao Chaoyang said proudly.

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