Saturday, September 25, 2010

[Learning] CKM's six characteristics

Modern enterprises born in 1870, the general has the following six characteristics:

First, the production of the most effective way, in a single management system activities required to produce goods as much as possible together. John D. Rockefeller discovered and applied the concept. He noted that the exploration, production, transportation, refining, marketing into an enterprise system, you can maximize the efficiency of oil production and reduce costs. Based on this concept, he established the Standard Oil Trust, it may be big business in the history of one of the most profitable. 20 in the early 20th century, Henry Ford to develop this concept to the extreme. Ford Motor Company not only to manufacture, assemble all the auto parts, but also its manufacture of steel, glass and tires. It has in the Amazon rainforest rubber tree plantation, owned and operated vehicles carrying raw materials and finished goods railway line, and plans to sell all of its Ford and providing after-sales service (although this goal was eventually achieved).

Second, suppliers, especially manufacturers an edge in the market - they hold the consumer does not know and can not know the product or service information. This is exactly the reason for the brand can bring profit lies.

Third, any particular technology is only subordinate to an industry. On the contrary, any subordinate only to a specific industry, a technology. This means that the technology required for manufacture of steel on steel is only meaningful for the steel of any technology also comes from the industry itself. The same principle applies to the paper industry, agriculture, banking and trade. Industrial research laboratory is established based on the above premise. The first industrial laboratory in 1869 by Siemens in Germany, established; and IBM companies established in 1952, the last traditional laboratory. The lab focused on a single industry regarded the technical requirements, and assume that their findings apply only to that industry.

Fourth, the profit is the fundamental purpose of business, corporate structure, a great degree of imitation of the military form of organization, the organizational structure through the pyramid to achieve management, and management of primary role is to restrain and control staff (which is to promote Marx wrote "Das Kapital" one of the factors).

80's GE 400 000 employees, there are 25,000 titles which has a manager. Of which 500 are senior managers, is vice chairman of 130 or higher positions. From production workers to the CEO as many as 12 layers of management.

Fifth, the company is "master", the staff is "servant." Because the company has is critical for the survival of the means of production employees. Without it, employees will not be able to make a living, the staff needs of the enterprises is greater than the needs of corporate employees. Meanwhile, the vast majority of employees are full-time. Salary is their only source of support the family.

Sixth, the manual is the most important forms of work (especially in manufacturing), mechanical and repetitive work is its main feature.

These ideas are in a whole century well, but 70 years since the 20th century, as technology advances, globalization, cultural diversity, especially with the needs of the explosive growth of knowledge, which without exception, met with the the fate of being subversive.

First of all, "enterprises should focus on maximizing" traditional theorems have been invalid. Henry Ford Ford Motor Company all-inclusive, ultimately proved to be unmanageable. One reason is that any kind of activity more and more specialized knowledge required to update faster and faster, more expensive, like in a company and an important business for each store has changed a lot of key elements increasingly difficult. The Internet and information technology, actually reduce the traffic, communication cost, decentralized concept has been extended to a growing number of activities were: to a company's information technology, data processing and outsourcing of computer systems are commonplace. In the past few years, more than 200 million American workers of human resources management - hiring, dismissal, training, welfare, etc. - are outsourced to professional personnel agencies. Such institutions is almost non-existent 10 years ago, but now has a 30% annual growth.

Second, consumers have more information, transfer of power to consumers. For consumers, the supplier is no longer a seller, and became a buyer for the customer service. For example, General Motors established a 2000 help end-users to buy the company implemented: to help consumers meet their personal preferences, values and purchasing power of any type of vehicle.

Third, technology is no longer subordinate to the unique industry. Increasingly, the knowledge required from an industry completely different technology, and industry people who know little about this. For example, the telecommunications industry, where many people do not understand how the matter fiber optic cable. It is a glass by a Mingjiaokangning developed by the company. Similarly, more than half of World War II, Hou Beier Lab important inventions are used in industries other than the telephone. Bell Labs in the past 50 years, the most important invention is the transistor - the modern electronics industry was born with it. However, the phone company view, this revolutionary new invention of little use. Hence, anyone who gave it. However, it is Sony and other Japanese companies to push into the appliance industry.

Fourth, in order to improve the responsiveness and efficiency, enterprises become more and more flat organizational structure. After flattening, the management of General Electric Company significantly reduced levels, from production workers to the CEO are only six levels. At the same time more and more important as innovation and knowledge workers as the main workers, management changed the nature, inspire and lead to a greater extent instead of the constraint and control. The team building has become a major management and forms of work. More importantly, companies increasingly clear understanding that business has gone beyond the purely economic in nature, society and become one of the most important part, so it has a healthy growth of our society and the promotion of human development greater responsibility and mission.

Fifth, knowledge is the means of production, but its owner as is the knowledge worker, it could be taken away at any time. Knowledge workers, such as professional managers, R & D personnel, skilled workers, scientists, etc., to provide "knowledge" and business owners to provide "capital" is the same. Both depend on each other, which makes knowledge workers received equal status with the business owners. Many employees, perhaps most, are still engaged in full-time job, the salary still is their only or main source of income. But part-time employees, temporary workers, consultants or contractors is increasing. Even full-time employees, more and more people will no longer be employees of their service, but from the outsourcer.

Finally, the mental instead of physical labor. The face of rapidly changing social and market needs, wisdom and good sense has become the most important business asset, knowledge, innovation has become one of the most important job content.

For the Western enterprise, intellectual property has grown into a new profit growth point. Patent transfer income is IBM, one of the fastest growing source of profits. The total profit in 2003 8.1 billion, the patent transfer accounted for 1.7 billion U.S. dollars. GSM technology in 1000 Qualcomm patents in CDMA technology has more than 110 content more than 1,500 patents, more than 60 companies worldwide to purchase a CDMA patents. South Korea use CDMA ,1995-2000 years, only to Qualcomm cell phone patent fees are paid 2.4 billion.

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