China resource - My dream - The CEO " Stregtic analysis on informatic for the future development

在华润七十多年的历史中，我们曾经进行了多次转型。最近十年的快速发展，使华润成功地从贸易公司转型为多元化企业，我们的成绩有目共睹。当前，面对日趋激 烈的竞争，面对日渐庞大的组织，面对与日俱增的管理复杂性，面对持续快速增长的压力，华润必须开始新一轮转型。具体来讲，我们的生存法则要从资源占有型向 管理经营型转变，我们的管理模式要从粗放式管理向精益化管理转变，我们的思维逻辑要从传统性思维向颠覆性思维转变，我们的经理人的角色要从创业家向企业家 转变，我们的决策方式要从个人英雄主义向集体决策转变，我们的企业能力要从能人依赖型向个人能力组织化转变，我们的管理方法要从经验管理向科学管理转变， 我们的管理思想要从市场反应向市场预应转变，我们的管理方式要从人治向法治转变。为了推动这些转变，启动新的变革，我们有必要充分利用信息化的技术手段， 迅速提高组织效率，建立起快速的市场反应能力，从而提升企业核心竞争能力，促成我们长远战略目标的实现。

首先，我们应该以长远的战略眼光看待信息化的价值和过程。集团在过去几年快速成长壮大，管理的广度与深度成倍放大，但因为信息的获取和分析缺乏平台，信息 的质量给集团的战略决策和管控增加了难度。加上我们所从事的行业都是高度竞争的行业，国内外宏观经济环境又风云变幻，我们必须通过信息技术，通过信息化， 提升信息的获取速度，提高信息获取质量以支持我们的可持续发展，支持我们战略的落地、文化的渗透。

信息化的实质不是技术问题，而是管理的问题、是文化的问题、是生意模式的问题，是集团战略体系的一个重要组成部分，各级一把手应以长远的战略眼光看待信息 化的价值和过程，要及时了解、勇敢面对项目中发现的业务问题，并安排资源去解决它。

其次，我们应该看到信息化的过程是推动管理优化的过程，同时也是持续管理变革的过程。信息化是一个抓手，它能够把过去业务快速发展过程中所忽视所积累的基 础管理问题一一暴露出来，但如何梳理，如何规范，还必须通过业务人员切实地参与进去，尤其是规范和流程。信息化是一个很好的培训和学习过程，好好地利用这 个机会，多派人参与到项目中去，提升业务人员的技能和管理水平。信息化本身不是目的，它的真正意义在于，与企业管理形成一个相互作用的良性循环：一方面， 管理对信息化不断提出新的要求，促进系统的不断改良完善；另一方面，信息化对管理不断提出新的适应性，要求管理不断地创新，从而使华润的管理处于持续的变 革与完善中，推动华润的不断发展和永续经营。

着眼未来，我们应充分借助当前集团实施信息化战略的有利契机加快业务的梳理和规范化，进一步夯实基础管理、优化管理流程、提升管理水平，为日后的精益化管 理、实现内涵式增长打下基础。

再次，信息化战略规划的落地需要一把手的魄力和一个有战斗力的IT组织。信息化是一个系统性工程，是一个长期优化的过程。前期投入较大但其价值的发挥却相 对滞后，不像做好一个市场能很快带来业绩的增长，这就需要各级一把手要以坚定的决心和毅力，以实际行动支持信息化建设项目，做好项目实施的人力、物力、财 力的支持和保证。

一个具备IT专业管理和技术能力、持久的变革推动能力和战斗力并时刻充满激情的IT组织是信息化战略落地的基础，也是决定信息化成功的关键要素。目前各单 位在信息化工作推动中存在的问题各有异同，但归根结底，是组织的问题。各单位要设置与集团对等的部门，加快IT组织保障体系的建设，努力做到机构、职能、 人员和责任四落实，尤其是SBU，必须尽快塑造与IT战略匹配的IT组织能力。

希望信息化能够真正成为推动华润新一轮转型的利器，成为我们在信息时代的竞争优势，不断促进管理的持续变革与完善。希望我们能够再一次未雨绸缪，走在时间 前面，为企业构筑长远价值，让华润永远生机勃勃。

a new idea(Electronic accessories site)

I was searching the Iphone accessories on ebay. Specifically I need a some connector between the iphone and the car to play music from the cell phone while driving. But there are just so many and very hard to distinguish sellers' reputation and feedback.... Need a lot of reading on their feedbacks...

So, why can we create a website(e-commerce) company to provide accessories for some famous electronic products such as smart phones, cameras, computers etc. We can provide low price by importing products directly from China supplier and save a lot of money as a web base company....

Maybe more, we can corporate with apple, Dell or HP to provide professional accessories purchasing AD on their website while customers conduct the check out process to market ourselves.

And also, this site and also be international, provide international mailings


Do not know if anyone is working on this idea or there are existing ones already. But will search how IP apply in this situation.

References

Reference for the industry research:

”Restaurant Industry 2010 Forecast,” National Restaurant Association

“More Local Restaurants Struggle as Big Chains Eat Their Lunch,” Wall

Street Journal, July 9, 2002

“Staffing Industry Economic Analysis” American Staffing Association

“Annual Economic Analysis Puzzles Through The Data and Explains the Trends”, Staffing, page 3. Summer Special Issue 2010

< http://www.americanstaffing.net/statistics/pdf/American_Staffing_2010.pdf>

U.S. Department of Labor, Bureau of Labor Statistics, “Employment, Hours, and Earnings From the Current Employment Statistics Survey (National),” Web Site Public Data Query, Series ID: CES6056132001, July 16, 2010.

Licensing, joint venture

Product economics/Exit

Product economics/Exit

The cost structure of the business:

Cost of entities	Cost proportion	Importance	Priority
Hire of employees	10%	3	2
System development	50%	5	1
Marketing	10%	4	3
Operational cost	20%	2	5
Customer service/support	10%	5	4

 

            The Content is the service and system that we designed to provide to our customer, it includes the tangible product as well as intangible such technical support and consulting service. The context is the overall looking of our business entity which create and provide the content. The community is the environment of our business which creates the industries and market that allow us to enter into. And finally the Value proposition includes the participation of partners in technical, customer relationship and marketing fields. We will directly reach our end customers to maintain our competence against the competitors and partners since as the end of the supply chain, we will have more control of the customer behavior, demand as well as a clear view on the market.

Summary

Still there are many other options to make this idea profitable. We can choose not to promote the system by ourselves, instead, licensing it to other vendors and charge fees. Or we can promote the system to the Enterprise resourcing planning companies and together we can create a ERP specifically in restaurant field. Either way we need to first analysis the industries and anticipate the opportunities that will or are existed within our business scope and then consider the IP issue because the intellectual property is the central value asset within our organization. With more concern on the initial investment on the business, the venture capital companies may be interested to help. They can be rewarded with preferred stock and certain amount of common stock since preferred stock holder does not have the voting right. So we can reduce the risk of not aligning with the venture capital’s business strategies. We can either give them dividend or share them certain percentage of income for a period of time. The VC will be able to realize its value by holding our stock and getting great reputation from our success.

Business Model

Business Model

            After carefully comparing existing options of business models, we decide to choose the Professional open-source model combined with Subscription business model. First, as stated before, we divide our target customer group into two parts, the potential employees and the employers.  By using professional open-source model, we give the owners and managers of a restaurant a basic function that may not be different from our competitor’s product but has a more user friendly interface, easier user instruction guide, more reliable and faster. We will not charge any money for the basic functions of this system, which means the users can simply create a user account and download it to their local computers for free. However, once they think this system is useful for their business and they want to try the premium functions after reviewing the instruction on our website. They can make a payment for the advantaged functions and pay monthly fee as well as upgrade fee. In addition, we may also consider a super-premium or a VIP program to our customers to provide them with in person installation and real time customer support.

            On the other side, the potential employers in the local labor market can also use our system to help them find favorable restaurant jobs in the local community. But we have to charge them the subscription fee either through cell phone message or phone applications. They can simply download an application to their cell phone can we can update them with all possible positions that local restaurant owners posted on our site. Also, they can go to our website, and by finishing some customer performance survey, they are eligible to use the job searching system. And once they registered in the system, the potential employee’s information will be automatically transferred to a centralized database for the employer to view and select.

Subscription:

 

Professional Open-source:

 

Venture Capital

Venture Capital

The remarkable growth of the Internet as a global commerce and information sharing resource has created the most dynamic and expansive environment for new business development in this century. Unlike the internet based companies in 1980s, the cost to start up a social media company is extremely high. A good way to gather the initial investment is seeking help from the venture capital firms. Someone may argue that venture capital firms may take too much control of the company and the funder may ta a risk of losing the leadership of the whole company once the venture capital companies entered. The fund has a responsibility to the investor to use the fund’s money where the fund management believes it has the best chance of striking gold or having an enormous return on investment. Therefore the usage of the money from VC is always limited to the founders. We, as the funders of the company may face the challenge that people form VC may come into our office and attend the meeting. We can not 100% trust them and there are many situations that these consultants may hold different opinions than us, which could cause huge dispute on some strategic business plan. However, like other sources of equity financing, venture capital offers both advantages and disadvantages. The main advantage is that the business is not obligated to repay the money. For a start-up company, this cash flow can some time play significant role in speeding up growth. The involvement of high-profile investors may also help increase the credibility of a new business.

Even if we have the willingness to acquire the first investment from outsiders, venture capital is scarce and often difficult to obtain. Venture capitalists tend to be highly selective in choosing investments. Some will only consider investments in specific technologies, industries, or geographic areas. In fact, the larger venture capital firms typically reject more than 90 percent of the requests for funding that they receive. They evaluate the remaining requests thoroughly, and at considerable expense, before selecting a few that closely match the investors' areas of expertise and offer the best earnings potential. Therefore, in order to select the most qualified VC, we did some research on the VCs in IT field.

IMPAC

Impact Venture Partners is an early stage venture capital firm. It is leading venture capital in the industry of Web-to-phone system development. The company is based in Austin, Taxes.

ARCH

Arch is a company co-founded with leading scientists and entrepreneurs, concentrating on bringing to market innovations in life sciences, physical sciences, and information technology.

Draper Fisher Jurvetson

DFJ is a very famous VC in IT field. It has funded well-known technology companies including Baidu(Chinese Google), Hotmail (acquired by Microsoft), Overture (acquired by Yahoo), Skype (acquired by eBay) and Glam Media. Other notable investments include Tesla Motors, SugarCRM, Technorati, Interwoven, Meebo and SolarCity among others.

There are many other venture capitals that we can choose from. But we should set our selection criteria as such: First, it has to be a famous company with great reputation in the related field, because such VC will help us build up a good creditability within the market within a short period of time. Second, the VC must has previous experience on working with startup company in similar subjective. And third, the company has to be in the market for a long time and kept a good performance on revenue for a certain period of time.

Selecting a best matched VC is vital important to the survival of our company. Good venture capital will send consultants who are familiar with market or technology can we can talk to each other in the same table. More importantly, if the VC’s business plan can be aligned with the funders, then the deal can be acceptable, otherwise there will be substantial disputes in the future negotiation and corporation process.

Term sheet

Term sheet

Our term sheet is a summary document outlining the material terms and conditions of a business agreement with venture capitals. It is not a legal document like a contract but term sheet does specify the consents between two parties. After two parties reach the agreements on the terms, it guides legal counsel in the preparation of the contract.  In our case, term sheet will be made to use as a letter of intent to express our intention of acquiring funding from certain venture capitals. The most important part of term sheet is the consent of profit deviation. We will offer majority of the investment as preferred stock because preferred stock holder does not have the right to vote and therefore have less control on the company.

MEMORANDUM OF TERMS FOR PRIVATE

PLACEMENT OF SERIES A PREFERRED STOCK OF

Joint Scheduling

ABC Venture Group, L.P. (the “Investors”) is prepared to invest $100,000,000 in Joint Scheduling, Limited.(Our company) under the terms contained in this term sheet. With the exception of the section of this agreement relating to expenses, this term sheet is a non-binding document prepared for discussion purposes only, and the proposed investment is specifically subject to customary stock purchase agreements, legal due diligence, and other conditions precedent contained herein, all satisfactory to the Investors in their sole discretion

Issuer:                                     Joint Assistant, Software start-up, base in Oxford Ohio. The proposed transaction involves raising $100,000,000 through the issuance of series A preferred Stock.

Amount of Financing:             $100,000,000

Investors:                                ABC Venture Group, L.P.

Investment Amount:              $100,000,000

Investment Form:                  Series A Preferred Stock

                                   

Ownership:                            40% of the fully-diluted, post-investment capitalization                  

Types of securities:                 The series A preferred stock with the rights, preferences, and privileges set forth below.

Capitalization Amount:  

ABC venture capital Investment work sheet ($1 per share)

Common stock outstanding:   50,000,000 shares 50%

Preferred stock outstanding:   50,000,000 shares 50%            

Total:                                       100,000,000 shares ($100,000,000)

Use of Proceeds:                    Proceed will be used for (a) sales and marketing team salaries, (b) sales and marketing working capital and (c) employment of the sales and marketing strategy.    

Dividends:                               A preferred dividend of 8% per annum on the Preferred Stock will be payable quarterly from available cash flow, as determined by the Board. To the extent the dividend is not paid, it will accrue, but not compound. The Preferred Stock will share pari passu on an as converted basis in any dividends declared on the common stock. Any further dividends would be allocated between the common stock and preferred stockholders on a pro rata basis, treating the preferred stock on an as-if-converted basis.

Responsibilities:

Joint Assistant is responsible to generate positive income within three after launching its product to the market. It does maintain the right to partner with our venture capitals, investments from public and other resources. Joint Assistant is also liable to provide financial report to ABC as well as its budget, market plan and division of changing board. ABC should accomplish the transaction of purchasing the preferred stock within six month after signing the contract and ABC will not have the right the make decisions on election of the board members.