"Three-year doubling plan", Lenze seeks to win the future against the trend with change

On July 27, 2019, the State Council officially approved the establishment of the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone. On August 20, the Administrative Committee of Lingang New Area of China (Shanghai) Pilot Free Trade Zone was officially unveiled.

On the same day, Lenze Shanghai Transmission System Co., Ltd. (hereinafter referred to as "Lenze") moved its "Lenze R&D and Application Center" in Shanghai to Lingang New Area, completing the successful meeting with Lenze's Lingang factory and logistics center. As a result, Lenze became the first industrial automation company to settle in the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone. Both inside and outside, change has become a new portrayal of Lenze after moving to the "capital".

A few days ago, Mr. Pan Yingzhang, President of gongkong®, visited the new location of Lenze and met with Mr. Xie Weidong, President of Lenze Group Asia and Executive Member of the Global Board of Directors of Lenze, to explore the new style of Lenze's transformation and development.

"Three-year doubling plan", Lenze seeks to win the future against the trend with change

Left: Mr. Xie Weidong, President of Lenze Group Asia and Member of the Executive Board of the Lenze Global Board of Directors

Right: Mr. Poon Ying Zhang, President of GongKong ®

Move the "capital" to Lingang and seek long-term

When the wind changes, some people build walls and others build windmills, and Lenze chooses to change against the wind and spread his wings.

Since 1997, when the Lenze Group opened an office in Beijing, China, and officially entered the Chinese market, the pace of innovation has never stopped:

*In 2007, Lenze Group established a wholly-owned subsidiary, Lenze (Shanghai) Transmission Systems Co., Ltd., in Shanghai, China.

* In the same year, a total investment of about 200 million yuan was built in Shanghai Lingang New Town, and the production and assembly products include three-phase AC motors, reducers, and inverters;

*In 2012, the second phase of Lenze's Lingang plant was put into operation to ensure that all products in China are of Germany quality; In the same year, the Lenze Group set up a Lenze R&D center in Shanghai and launched the G200 gearbox series for the Chinese market to meet the unique domestic market demand.

*On August 20, 2019, Lenze's downtown office, R&D and application technology center officially moved to Lenze's Lingang factory, realizing the complete integration of the entire team of Lenze China.

"As the first industrial automation company to eat crabs, moving to the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone will have some impact on employee travel in the short term." Xie Weidong said frankly that to this end, Lenze set up a special project team, guided by the company's strategic planning, did a good job in early communication, and provided convenience for employees by adding shuttle buses, leaving work half an hour earlier, and providing meals in the canteen.

"In the long run, this entry will bring more positive factors to the long-term development of Lenze." Xie Weidong said that on the one hand, the company's sales, R&D, production, and logistics have changed from the inconvenience of working in two places, and can communicate and exchange customer needs, product innovation, market feedback and other information in a short time and at close range, and the internal collaboration of the Lenze team has become lean and efficient. On the other hand, after Lingang becomes a free trade zone, more preferential policies will be given to enterprises in terms of enterprise investment, R&D investment, employee naturalization, and talent settlement.

As a global company, the Lenze Group has 52 operating companies worldwide, sales and service offices in more than 60 countries on all continents, and five logistics centers in Germany, France, Austria, United States and China. "We hope to build Lingang into the largest base or center of the Lenze Group in East Asia and even Asia apart from Germany." Xie Weidong said.

"Doubling in three years", bucking the trend and seeking change

In the past two years, the growth rate of China's manufacturing industry has slowed down significantly, and traditional industrial methods need to be transformed urgently. Internally, in the face of unpredictable market demand, more personalized products, more flexible delivery times, shorter product life cycles, and business models that keep pace with the times have become common challenges faced by every market participant. Externally, trade frictions and geopolitical tensions have brought more uncertainty.

Gongkong® research data shows that in the first half of 2019, the overall industrial automation market was basically flat compared with the same period last year. Among them, the OEM market declined slightly, and the project-based market continued to maintain a slight growth.

When the performance of industrial automation companies declined in the first half of the year, Lenze sailed against the wind, and its turnover significantly exceeded that of similar competitors in the market. Xie Weidong, the newly appointed President of Lenze Group Asia and Executive Member of the Lenze Global Board of Directors, was appointed at the beginning of this year.

Compared with the short-sighted first and then talking, Xie Weidong pays more attention to doing things in a planned way, "the company's development must set a realistic goal". As a result, Lenze's "three-year doubling plan" and "five-year action plan" have been released.

"There is no doubt that the external market is relatively weak at the moment. In the past, the development of the external market was good, and everyone was rising. Xie Weidong believes that the current external market is more challenging, and how Lenze can not completely rely on the ups and downs of the external market, and maintain sustainable growth, the biggest difficulty lies in the internal, "a good strategy must be resolutely implemented, and the style of play must be more professional." Therefore, practicing internal skills has become the key.

Based on the three-year plan, Lenze optimizes the organizational structure and allocates corresponding resources according to the strategic plan. "For example, we have a team of 36 technical engineers, which is not a lot for the average company, but they are very capable. If we further tap the potential and let them play a greater role, we can provide customized solutions or write AI algorithms for customers in different industries and different needs. Xie Weidong said, for example, to change the behavior concept of the sales team, enter the market, get close to customers, and improve the initiative, flexibility and efficiency of Lenze's services.

In addition, Lenze has set up a new customer service department, which regards service as a product and turns service into a new profit center; Set up a channel management center, build a new partnership model with agents, and conduct performance-oriented performance appraisal based on results.

"How many technical personnel will be one of the assessment contents, we hope to further tap the potential through the management channels and development channels, focusing on the development of industry channel providers, give them more value, and grow together with agents." Xie Weidong said, "At the same time, we must also see that the market is in second- and third-tier cities, and our channels will also sink accordingly to launch the Lenze brand." ”

Returning to the volatile and declining external market, Xie Weidong believes that the first to be affected is the traditional large and comprehensive industrial automation enterprises.

"Lenze's positioning is a special field, and we do a small but beautiful and refined industry." Xie Weidong said. In the field logistics, cutting and packaging industries related to consumer goods, Lenze has a clear advantage. Accurately locate four or five industries, develop dozens of large customers, deeply grasp their needs to solve their problems, focus on Lenze's advantages, replicate successful experience, and consolidate the advantages of the strong.

Practice internal skills and be people-oriented

"The focus of each manager is different, some are interested in financial data, some are refined management, I pay more attention to the growth of people, and I care a lot about the state of each person." As a professional executive with more than 20 years of rich management experience in multinational enterprises and has held important management positions in many well-known multinational enterprises, Xie Weidong understands the importance of employees to the development of enterprises.

The growth of an enterprise comes from the development of each individual, and Lenze emphasizes "people management", and team members can grow from an excellent employee to an excellent manager through two to five years of development.

On the other hand, clarify the company's medium and long-term strategic planning, give employees clear development goals and implementation paths, give them enough time and resources, and give support and help when he/she encounters difficulties. Middle and senior managers will play an important role in this process, leading team members to work together, learn more skills, and grow together.

The benign interaction within the company will form a multiplier effect, which is the endogenous driving force for the sustainable development of the enterprise.

Rooted in China, help intelligent manufacturing

Although many foreign companies lament that doing business in China is not as good as before, Lenze still has strong confidence in the development of the Chinese market.

Xie Weidong believes that the bad market is not a mourning, but it is not friendly to enterprises that are not prepared and develop simply and roughly. China's economic growth has slowed down to a certain extent, but there are also many new highlights and opportunities, such as the development of e-commerce to drive the logistics industry, food packaging, pharmaceutical industry, parking lot projects that are closely related to the general public, and so on.

Adhering to the concept of "in China, for China", Lenze provides Chinese customers with a one-stop service, including products, drive system solutions, complete automation systems, engineering design services and engineering design tools. At the R&D level, although the Germany headquarters defines the product R&D roadmap, Lenze has a R&D center in China, which is customized to local needs, and the proportion of localized R&D will be further increased in the future. In terms of production capacity, Lenze is considering the third phase of the Lingang plant expansion to meet the needs of the Chinese market and compete for market share.

Take advantage of the wind of transformation and reform, and raise the sail of innovation and development. As Xie Weidong said at the 2019 Lenze East Asia Sales Summit, in the unpredictable and ever-changing market environment, as well as fierce market competition, Lenze will continue to implement China's automation-driven strategy, adhere to market-oriented, technology-oriented, quality as life, service to shape the brand, with strong strength, excellent quality, good reputation, extraordinary achievements, to help intelligent manufacturing 2025, drive the upgrading of the intelligent manufacturing industry chain.

This article is reprinted from China Industrial Control Network (www.gongkong.comThe copyright belongs to China Industrial Control Network"

"Three-year doubling plan", Lenze seeks to win the future against the trend with change

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