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, I have successively written two books for this purpose: It tells about my business experience and the mental journey of reform. In fact, I have no secret to do business, if I have to say, I would like to talk about the three basic points of my business: learning, innovation and responsibility. It is these three basic points that make me stick to the enterprise and make some achievements.
Due to the length of the three parts of learning, innovation and responsibility, I will share three articles on the public account of the President's Reading Club. Today, I will share the innovation article.
< IMG SRC = "https://img7.ccement.com/richtext/img/0izctyuti1eq1716355083205. I first came into contact with the word" innovation "when I read Goethe's poems in middle school. Unexpectedly, it is "continuous exploration and innovation" that has changed the fate of me and my business. I have made certain achievements in the enterprise for 40 years, which stems from innovative consciousness and innovative action.
Innovation comes from curiosity
. I think innovation comes from curiosity. When I was a child, I was a naughty child, full of curiosity about everything. I would disassemble the sewing machine and install it again when the adults were not at home. Fortunately, my mother was very kind to me. Every time she knew that I had moved the sewing machine, she never criticized me. Sometimes when the sewing machine broke down, she asked me to repair it. When
I was studying in the village of my hometown, because I worshipped an old doctor of traditional Chinese medicine in the village, I bought a "Barefoot Doctor's Handbook" and made a medical kit by myself. Every day after school, I went to the fields and the roadside to collect herbs. On one occasion, I took a small piece of ammonium bicarbonate fertilizer from the field at home and added salt to a large copper ladle to do a chemical test. As a result, the copper ladle was corroded and the paint on the dressing table of Grandma's dowry was corroded. Although Grandma loved the table very much, she loved me very much and did not say anything.
Childhood is a lot of fun. During the Spring Festival, I like to set off small firecrackers. Sometimes I scrape some saltpeter from the bricks at the root of the wall, and then add some charcoal powder to wrap it in paper and light it. When I see the crackling sparks, I feel a great sense of achievement. I also like to make slingshots and kites. Making these two things requires a little elementary school questions, especially paste kites. It is not easy to make kites fly steadily and high. In today's words, we need to understand "aerodynamics".
When I was a child, I liked to read "One Hundred Thousand Whys", which was my enlightenment book and had a great influence on me, and Wu Yunduo's book "Dedicate Everything to the Party", which I was very interested in his self-made rifle grenades. I have also read a foreign novel Mysterious Island, and I am very interested in some scientific knowledge in the book. These books played an enlightening role in my early days. During the period of
queue jumping, I worked as a production team leader and a commune agricultural technician, especially interested in hybrid breeding. At that time, the yield per mu was very important, and everyone was trying to cultivate good seeds to produce more grain. At that time, I mainly cultivated hybrid corn and hybrid sorghum. At that time, I had to teach agricultural technicians in more than a dozen villages. Most of the agricultural technicians in the village were middle-aged people with culture, and I was only a high school graduate, but I devoted myself to learning, read a lot of books, and never spoke layman's language, so everyone respected me very much.
Later, when I went to college, although I studied chemistry, I was fascinated by mathematics. One summer vacation, I used a holiday to write an experience of mathematical limit theory. After school, I showed it to my math teacher. As a result, he turned it over and said to me: "Your main task now is to learn. Don't always want to invent. What can be invented has been invented by others." This math teacher is a teacher I admire very much, and I am also one of his favorite students, but his words that "all that can be invented has been invented by others" hit me very hard. The advantage of this is that students can study steadfastly and not indulge in fantasy, while the disadvantage is that it affects their curiosity and innovative consciousness. Therefore, I think we must encourage the younger generation to have a sense of innovation, even if they have some naive ideas, do not give them pressure. In
our work, we should learn to think
and innovate, besides curiosity, we should also like to ask questions. When I was doing sales work in Beixin Building Materials, I asked you two questions: one is why users come all the way here to buy things, and the other is who is doing customer work all day long. I said that if we figure out these two problems, our products will be able to be sold. On the first point, the answer is "the quality is always good, the service is always good" ; on the second point, I think the enterprise must have the idea of "profit sharing", set up a nationwide marketing network, and make profits to the distributors. In recent years
, Beixin Building Materials has relied on these two points to maintain its customers and marketing network, making its products sell well. Beixin Building Materials has thousands of sales points, each point has about 10 salesmen, so every day there are tens of thousands of people in the promotion of products, I feel very secure when I think of this. Now many of the sales points of Beixin Building Materials are operated by the third generation of the family, and the development of Beixin Building Materials today depends on this loyal sales network. After I
became a factory director, I often thought about the question of "how to run a good enterprise". I think the highest level of business is not to compete with others, but to convince customers and give us opportunities on their own initiative. The most important gold-lettered signboard for an enterprise is to do a good job of quality and reputation, and to take the route of high quality and high price, not the route of low quality and low price. For so many years, Beixin Building Materials has been operating according to the idea of "quality and price", because quality needs cost. Over the years, there are more and more loyal customers, but many enterprises that have fought a price war with Beixin Building Materials have fallen down successively.
Enterprises will encounter many problems, some of which seem to be technical problems, but in fact they are problems of thinking mode, which can not be underestimated. When I first became the director of Beixin Building Materials, the main product of the factory, gypsum board, sold well, but the production line with a rated annual output of 20 million square meters could only produce 8 million square meters a year at most. At that time, everyone thought it was taken in by the Germans, because the production line was imported from Germany.
I have summed up the problems of frequent shutdown of the production line. There are about five problems: first, the gypsum raw materials are transported by train from Ningxia, and sometimes the raw materials are broken, resulting in shutdown; second, the furnace that provides the heat source burns low-quality coal, and often flameout; third, the agitator in the plate-making workshop on the production line often builds machines, resulting in shutdown; Fourth, the drying system often blocks the board, resulting in shutdown; fifth, the gypsum board is cracked in cold winter and can not be produced. These five problems have been bothering us for about 10 years before I became a factory director, and no good solution has been found. In the
first two years as a factory director, I went to the plasterboard workshop every day to check and study, sometimes in the middle of the night. I have found the reasons for these five seemingly unsolvable problems. As for the raw materials, I asked why I didn't use Hebei and Shandong. It is said that German experts set, because of the high content of potassium and sodium in raw materials in Hebei and Shandong, the gypsum board will be covered with saltpetre. I asked if it had been tried, but no one answered. I said that the German experts only analyzed the ore samples and did not study the distance between the mine and the factory, nor did they consider our economic benefits. Later, the factory used Hebei raw materials for trial production according to my suggestion, and the result was that there was no problem with the quality of the products. After the mine was changed, the enterprise not only saved the freight, but also did not have the situation of raw material shortage.
As for the flameout of the hot stove, I think it is a matter of responsibility. I encouraged the workers to work hard, and at the same time, I improved the treatment of the workers according to the principle of "more pay for more work". Later, the stove was never extinguished again. Most of the problems of
construction machines and plug plates occur in the latter half of the night, because some workers are trapped and sleep, resulting in shutdown accidents. I have installed industrial television systems in important operation posts in the workshop, including duty rooms, and there is a general duty system in the general factory, so that the situation of all production line posts can be seen at a glance. In this way, the problems of construction machine and plug plate for many years have been changed, and the production line has returned to normal. The
so-called winter gypsum board cracks, I do not believe, because common sense tells me that gypsum is a poor conductor of heat, there is no sharp expansion and contraction, it is impossible to crack because of the cold. I learned that there was no heating system in the whole plate-making workshop. Workers wore cotton overcoats to work in winter. They were unwilling to produce in winter, so I installed heating in the plate-making workshop to solve the problem of winter production. The workers said, "Director Song became the factory director, and the plasterboard really did not crack." I smiled and said: "The original gypsum board will not crack, but people in the winter will be frozen and cracked." One year after I became the factory director, the output of the gypsum board production line reached 20 million square meters. The news spread to Germany, and the Germans also praised it.
Many of the problems that have plagued people for a long time are often caused by trivial things that we tend to ignore in our daily life, so we should ask questions and re-examine things that seem to be common and common.
Management innovation should pay attention to construction methods
. In enterprise management, I advocate the use of Japanese construction methods. The Japanese have developed some management methods, which they call management methods, such as 5S, TQC, zero inventory, group work method, continuous improvement of PDCA cycle and Kanban management. Management is doing things right. These methods summarized by them have become the target tools, which provide convenience for doing things correctly. These management methods are more suitable for Chinese enterprises, especially manufacturing enterprises.When
I took over Beixin Building Materials, the site management was poor, the road was full of rolled gypsum, and there were several garbage mountains piled up in the yard for many years. After I became the factory director, I first carried out the "two gardens project" of garden-style factory and garden-style living area, introduced 5S construction method, and soon cleaned up the factory. In terms of quality management, I carried out TQC, and later did ISO 9000 quality system certification. I introduced the fixed management method in site management, and the site management was in good order.
I also use some Western management concepts, such as the conclusion of Hawthorne's experiment, that is, the behavior of organizations is influenced by the environment. Before I became the factory director, there were casualties in the factory almost every year. I analyzed the causes of major accidents, mostly because the environment was dirty and messy, and the workers were absent-minded. On the one hand, the management method solves the on-site risks caused by dirty and disorderly work, on the other hand, it can keep employees in a good mood. For example, the spring in Beijing is often windy and the air is dry, which often makes people impetuous. I chose that time to hold the spring sports meeting of the whole factory, so that everyone can have a good mood. During
my 10 years as a factory director, there was no fatal accident in the factory, and many people were curious about it. I am not a strict person. During my 10 years as a factory director, I did not blush with you once, nor did I mention the requirement of strict management. Instead, I introduced some methods to do a good job in the enterprise with management innovation.
Later, as the chairman of China Building Materials, I integrated thousands of cement plants and adopted management methods, but at that time, there were not only foreign construction methods, but also our own original construction methods, such as "three fine management", "eight major construction methods" and "six star enterprises". It is the application of these management methods that has laid the foundation for the development of China Building Materials, a group enterprise in the field of full competition. System Innovation
of Beixin Building Materials In 1993, when I was the factory director, the enterprise faced many inspections from superior departments, such as financial inspection, safety inspection, enterprise grading, red flag equipment competition and so on. At that time, the government managed enterprises mainly by means of inspection, and the management of enterprises also depended on the government's inspection. So I put forward the concept of "enterprise system" in an interview with China Building Materials News. The newspaper published an article entitled "Establishing an Enterprise System Adapted to the Market Economy". Unexpectedly, the next morning, the column "News and Newspaper Abstracts" of the Central People's Broadcasting Station also broadcast the main points of the article.
In 1994, the Central Committee of the Communist Party of China decided to carry out the pilot project of modern enterprise system, the core of which was four sentences and 16 words : "clear property rights, clear rights and responsibilities, separation of government and enterprise, and scientific management" , and selected 100 enterprises as pilot projects. Beijing New Building Materials General Factory, as the only pilot project of the State Building Materials Bureau, was renamed Beixin Building Materials (Group) Co., Ltd. On this basis, in 1997, the group packaged gypsum board and other main businesses on the Shenzhen Stock Exchange, when the company was listed mainly to raise funds for development.
Beixin Building Materials can be listed thanks to our preparations in advance. In 1994, we signed an agreement with Southern Securities to help Beixin Building Materials go public, and later discussed overseas listing with Goldman Sachs. I originally studied technology, then went to sales, and then became a factory director to manage. At that time, I knew nothing about the capital market, and I heard professional terms such as "price-earnings ratio" for the first time. But practice is the best teacher. In June 1997, Beixin Building Materials was listed as it wished. After listing, it raised about 2.
It took the money of the shareholders and introduced the shareholders into the enterprise, that is, the market-oriented mechanism. When the stock price rises, the shareholders applaud for us; when the stock price falls, the shareholders will "vote with their feet". I sighed with emotion that "the listing is wonderful and miserable", and I wrote an article "Put my heart in your hand", but I know that the market does not believe in tears. It is precisely the double tempering of the product market and the capital market that has created today's Beixin Building Materials.
< IMG SRC = "It was an extremely difficult enterprise https://img7.ccement.com/richtext/img/r8xqsaomixd1716355256181., with sales revenue of only about 2 billion yuan." Most of them still come from Beixin Building Materials, where creditors face the door and lawsuits continue. I have also done four things with innovative ideas in this enterprise: first, adjust the strategy from new building materials to bulk building materials; second, complete the listing in Hong Kong; third, complete the integration of the cement industry with mixed ownership; fourth, realize the reorganization of two materials. It is not easy to
adjust the strategy, although Zhongxin Group was fragile at that time, but the enterprise has a history of about 20 years, to adjust the strategy, this bend is not better for a while. At that time, Zhongxin Group was not optimistic in the industry, and people thought that even new building materials could not be done well, how could we do well in cement, glass and other large building materials business. So I've been struggling inside.
But I think of one thing, the central enterprises must be rooted in large industries, gypsum board is a billion-level industry, and cement is a trillion-level industry, enterprises should not "do what they have", but should "find what they lack" after setting goals. So I changed the name of the company, and China Building Materials Group Co., Ltd. was officially listed in April 2003. I know this is a landmark event, which will certainly change the pattern of the entire building materials industry in China.
Enterprises are in urgent need of funds for development after renaming. Where does the money come from? Fortunately, we had an opportunity, when the government allowed domestic a shares to be packaged and listed in Hong Kong, I was very happy. Taking Beixin Building Materials, China Fiberglass (renamed China Jushi in March 2015) and < a href = "https://price.ccement.com/brandnewslist-1-1000121." as a central enterprise, China Building Materials has a small plate, and the funds raised by listing in Hong Kong are not much. However, the significance lies in the integration with the international capital market, and China's building materials stand at a new starting point and take a decisive step. The
development of mixed ownership is inseparable from the integration of the cement industry. China Building Materials has identified the entry point for the urgent joint reorganization of the cement industry, but the cement industry is a heavy asset industry, and it is far from enough to integrate the funds raised only by listing, so I thought of retaining some shares of private enterprises at that time, and we should do it together and connect them with capital. This led to the "three plates of beef" I offered to the bosses of four private enterprises in Xihu Wangzhuang: first, reasonable pricing, not bullying private enterprises; second, retaining 30% of the shares of the bosses of private enterprises as shareholders; third, the bosses of private enterprises stay in the enterprises as professional managers. Unexpectedly, this "three plates of beef" has greatly attracted private enterprises, which have joined in succession. Zhonglian Cement, Southern Cement and < a href = "https://price.ccement.com/brandnewslist-1-1000634.
" of China Building Materials Later, I brought the method of joint reorganization to Sinopharm Group. It also quickly reorganized nearly 600 pharmaceutical distribution enterprises, forming a national pharmaceutical distribution network covering 290 prefecture-level cities, which has become a good story. It is not my patent to engage in mixed ownership, but I am leading the mixed ownership with rules and regulations like China Building Materials and China Pharmaceutical Group. I also summed up a formula: "The strength of central enterprises + the vitality of private enterprises = the competitiveness of enterprises" , which has been widely publicized by mainstream media such as CCTV. China Building Materials and China Pharmaceutical Group were also listed as the only two pilot enterprises of mixed reform in China in 2014.
At that time, there were two central enterprises in the building materials industry, one was China Building Materials Group Co., Ltd. and the other was China National Materials Group Co., Ltd., which were successively subordinate to the State Building Materials Bureau and SASASAC. The business of the two enterprises is becoming more and more homogeneous in their development, and there has been vicious competition, and the merger of the two enterprises has also entered the agenda. In August 2016, the "two materials" were formally reorganized to form China Building Materials Group Co., Ltd. In September 2017, two Hong Kong listed companies, China National Building Material Co., Ltd. and China National Materials Co., Ltd., were formally merged, thus completing the reorganization of the two companies.
Mechanism is the last door of reform.
In the long years of enterprise work, reform has always accompanied me. I have done hundreds of pilot projects of modern enterprise system and mixed reform, from "black-haired people" to "white-haired people". I am a reformer, but I am not born to like reform, reform is a redistribution of interests, often accompanied by hardships and tears, reform is forced. The reform of
state-owned enterprises is the innovation and perfection of enterprises in terms of system, system and mechanism. Most of the western countries have nationalized in history, but later found that the efficiency of state-owned enterprises in the field of full competition is low, so they turned to privatization, but in the field of public welfare security, state-owned enterprises are still the main ones. China is a socialist country, and its basic system is based on public ownership as the main body and the common development of multi-ownership economy, so we must take the state-owned economy as the leading factor and do a good job in large and medium-sized state-owned enterprises. But China is a socialist market economy country, so state-owned enterprises must also be integrated with the market, which is the reason for the reform. If
state-owned enterprises want to carry out market-oriented reform, they must solve the problems of fair competition and efficiency. To solve the problem of fair competition, it is necessary to separate government from enterprises, so that enterprises can truly become the main body of market competition, which requires the system reform of state-owned capital management and the system reform of state-owned enterprises'corporatization transformation. To improve the efficiency of enterprises, it is necessary to reform the internal mechanism, and the efficiency of state-owned enterprises involves fair competition. If enterprises do not reform and have low efficiency, it will inevitably affect the fairness of the market. This is why I always talk about the importance of institutional reform. Summarizing the situation of state-owned enterprises in recent years, we will find that if the internal mechanism reform is done well, enterprises will usually develop healthily and be competitive, otherwise, it will be difficult for enterprises to develop for a long time.
Speaking of mechanism, I gave it a definition in 2014: mechanism is the positive correlation between enterprise benefits and the interests of enterprise operators, business backbone and employees, that is to say, it enables enterprise cadres and employees to share enterprise benefits. When I was the factory director of Beixin Building Materials, I put forward the idea of "building houses every year and raising wages every year", and the fire in the hearts of employees burned up all of a sudden, so there was the rise of Beixin Building Materials. After I came to China Building Materials, I also introduced the market mechanism with the method of mixed ownership, mobilized the enthusiasm of the majority of cadres and staff, and then had the subsequent development of China Building Materials. Over the years, I have come to realize that in an enterprise, capital, plant and equipment are important, but people are more important. Whoever can fully mobilize people's enthusiasm will really find the true meaning of management and will be able to flourish forever. As the president of China Enterprise Reform and Development Research Association,
I was not only concerned about the reform of state-owned enterprises, but also about the reform of private enterprises. In my opinion, the direction of the reform of state-owned enterprises is marketization, while the reform of private enterprises should strengthen standardization, and the common core of the two is the internal mechanism. Do not think that private enterprises naturally have a good internal mechanism, Huawei's concept of "wealth scattered and people gathered" is not necessarily accepted by every entrepreneur. At the end of
2019, a reporter asked me what my biggest regret was after working for so many years. I said that the biggest regret was that I had not reformed the internal mechanism of the enterprise. I also wrote a long article "Mechanism Revolution-Pushing the Last Door of State-owned Enterprise Reform", which systematically expressed my thinking on the reform of enterprise mechanism, and used the "new three" to build the enthusiasm of enterprise development, namely, employee stock ownership, management stock plan, science and technology dividend and excess profit dividend, so as to enable human capital to participate to a certain extent. Instead of starting from labor costs in the past, this is the fundamental difference.
To make effective technological innovation
, the technological innovation of enterprises can be divided into three stages: the first is imitative innovation, the second is integrated innovation, and the third is independent innovation. From the reform and opening up to the 1990s, most of our enterprises have been imitating innovation for almost 20 years, that is, introducing, digesting, absorbing and re-innovating. In the early stage of reform and opening up, the technology and equipment of Chinese enterprises were still relatively backward, and the state's foreign exchange was very tight, so only a small amount of complete sets of equipment could be imported, and then digested and absorbed. After importing German gypsum board equipment and Swedish rock wool equipment, Beixin Building Materials made domestic innovations, but these innovations were basically based on the introduction. Since
2000, with the improvement of China's industrial level and the improvement of R & D and economic strength of enterprises, China's enterprises have begun large-scale integrated innovation, that is, to combine their own technology with the technology of learning from each other, and gradually form a distinctive, cost-effective technology and equipment, which has become the core of China's enterprises. For example, the cement line with a daily output of 10000 tons and the gypsum board line with an annual output of 50 million square meters built by China Building Materials. At this stage, we have also begun to be able to export complete sets of technology and equipment such as cement and glass to developing countries on a large scale.
Independent innovation is what we have developed and advocated in recent years, mostly referring to original innovation and independent innovation. This kind of innovation has a long cycle, large investment and high risk, but enterprises must do it, otherwise they will be "stuck". For example, the electronic thin glass and high-end carbon fiber of Chinese building materials are developed by independent innovation.
Over the past 40 years, Chinese enterprises have gradually entered the "leading" stage from "following" to "running side by side". For example, in the aspect of intellectualization, the large-scale intelligent production line of China's building materials construction hardly needs manual operation. Intelligence not only saves labor costs, but also improves product quality and energy saving and emission reduction. The business of
China's building materials is a "tripartite" model of basic building materials, new materials and engineering technology services, so the innovation includes not only the upgrading and transformation of traditional industries, but also the development of new materials and technologies, as well as the key and forward-looking innovation of the industry. China Building Materials has 26 state-level institutes and 38,000 R & D personnel. 1. In terms of innovation capability, no multinational company in the global building materials industry can compare with China Building Materials. In the past, we had more people on the production line and fewer people in the laboratory. In recent years, we have laid out large-scale world-class laboratories. In the future, more people will be arranged to engage in R & D and innovation, while most of the factories will develop towards intelligent factories with fewer people.
In the process of innovation and entrepreneurship, I advocate effective innovation and oppose blind innovation. Because in the final analysis, enterprises should produce benefits, and the technology that can make money in enterprises is good technology. We often talk about "technological innovation", in fact, there are three meanings, science refers to the discovery of the unknown, technology refers to the method of invention, and innovation often refers to the combination of new elements on the product, because scientific discovery will bring many technological inventions, and technological inventions will bring many product innovations, so we like to combine them called "technological innovation".
I advocate that the products developed must be mass-produced and must have a certain qualified rate, so that enterprises can achieve benefits. Therefore, over the years, high-tech new products such as glass fiber, carbon fiber, electronic glass, lithium battery diaphragm and so on have been produced quantitatively, and good economic benefits have been achieved.
In terms of product innovation and transformation, I put forward "three curves" and "four transformations", that is, to do a good job in the operation of existing business, to develop new business with the profits earned, and to develop a new generation of products; at the same time, transformation is not to change careers, but to promote high-end, intelligent, green and service-oriented business. It is these clear innovation routes that make China's building materials advance steadily in innovation.
I advocate the combination of sustainable innovation and disruptive innovation, and balanced development in the dilemma of innovation. Continuous innovation is the housekeeping skill of enterprises, enterprises must do a good job, while investing part of the human and financial resources to study subversive innovation. If we do not pay attention to sustainable innovation, enterprises may have no food to eat today, and if we do not pay attention to subversive innovation, enterprises may have no food to eat tomorrow.
Cement is a good thing
. When I give a speech, I often can't help talking about cement. When I say that cement is a good thing, the audience often laughs. I know that people don't agree with what I said. However, this is my experience of making cement, and it is from my heart.
Copper has a history of about 4000 years, iron has a history of about 2500 years, and modern cement has a history of only 180 years. Cement is mainly made by burning a mixture of limestone and clay, and its invention is purely accidental. More than 180 years ago, there was a prison on the Isle of Portland in the United Kingdom. After the rain, there was a lot of clay on the limestone. When the prisoners burned the white ash, they did not clean up the clay and piled it in the kiln. The result was not white ash but gray cement. This is the origin of cement, so Westerners call cement "Portland cement".
Cement is one of the greatest inventions in modern human history, which has changed urban buildings, bridges, roads and so on. I often think that cement seems to be customized for China's reform and opening up. Now the world's annual cement consumption is about 4 billion tons, and China's is about 2.3 billion tons, accounting for nearly 60% of the world's total. Cement is not only used in urban construction, but also in the construction of dams, tunnels, nuclear power plants and many other large-scale projects. Most of China's iron ore and timber are imported, and there are about 9 trillion tons of limestone that can burn cement. China is a coal-rich country, so most of its buildings are made of cement. Cement has the property that it can be poured as a flowable concrete and then hardened, which makes cement useful in many ways. Without cement, urban and large-scale engineering construction may be rewritten.
People usually think that on the one hand, cement is easy to get and easy to make, but on the other hand, in the past, cement plants produced a lot of emissions and polluted the environment. But in recent years, with the progress of technology, cement factories have become smokeless and dust-free garden factories, and some intelligent new factories are almost unmanned factories, which many people do not know.
In fact, cement is not a backward material, but an advanced material. The Japanese refined the cement and made more than 100 kinds of special cement, and the price was also very high. There are no industries with backward technology, only enterprises with backward technology. As far as technical equipment is concerned, the technical equipment of cement enterprises in China is the most advanced in the world at present, and most of these technical equipment are built by enterprises affiliated to Chinese building materials.
When it comes to innovation, people will naturally think of high-tech. However, the vast majority of innovation comes from medium technology, low technology and zero technology, and a large number of business model innovation today is zero technology innovation. I also have a point of view, that is, do not think that the raw materials created by nature have no scientific and technological content. In fact, it is very difficult for us to imitate the things created by nature over billions of years, such as stones, sand and so on. So I often say that raw materials are natural technology and materials are man-made technology. Both technologies are very important. We should use the raw materials created by natural technology to make money, and then feed back the research and development of man-made technology materials. Cement has both natural technology and man-made technology, so people call the cement industry the raw material industry.
Speaking of this, I think of the "cement +" business of Chinese building materials, which is to apply the "Internet +" thinking to the cement business. When I went to a cement plant affiliated to China Building Materials, the young factory director introduced the production and operation of the cement plant. I asked how the factory could have such good benefits. His answer was to use the "cement +" I proposed. Originally, they not only made money in cement business, but also made considerable profits in stone, machine-made sand, mortar, commercial concrete and other businesses. Although the scale of this factory is not large, it uses the "cement +" mode to make the business into a flower. In the 700-mu factory, the belt corridors are interlaced. These products not only have the cooperation of raw material production, but also have their own products, making the "cement +" business to the extreme.
