Liu Yan of shengjing.com: SaaS is needed for enterprise services to achieve turning point growth+

Lin Sen

Digital is a new word, but if we mention another word, I believe you are not unfamiliar with it - enterprise service. In the past, we often talked about enterprise services. In the future, we will talk more about "enterprise digital services", which will be the general trend of entrepreneurship in the field of enterprise services.
On May 28, the "2021 truth conference · Digital Economy Summit" initiated by pencil road was held in Beijing. At the summit, Liu Yan, CEO of Shengjing Netcom and founding partner of Shengjing Jiacheng, delivered a keynote speech entitled "super track and typical mode of enterprise service".
Liu Yan was the founder of Tsinghua Ziguang IT business group, a well-known listed company in China, and was the chief operating officer of Tsinghua Ziguang it group, bringing the company to 5 billion scale from scratch. She is proficient in the comprehensive operation and management of large enterprises, and has profound insight and experience in business model innovation, strategy formulation, lean entrepreneurship, fine operation, etc., helping hundreds of listed companies and high growth enterprises realize business model innovation. He is the author of the best-selling management book "excellent execution - how to improve the execution ability of Chinese enterprises".
The following are some of the cream ideas:
1. In the past three to four years, only about 10% of China's capital market has invested in enterprise services, but now it has risen to about 15% - 20%. After the epidemic, the enterprise service track ushered in the spring.
2. In China, there is another term for enterprise services, which is called "industrial Internet". In the future, there will be the rise of companies whose market value and scale are no less than or far more than that of a large number of consumer Internet companies.
3. In the course of enterprise service, the greatest certainty is the certainty of demand. The common demand of 2B service is "cost reduction and efficiency increase", which means that the investment in this track will have the opportunity to obtain a higher market value investment ratio.
4. It is possible to provide SaaS services for large enterprises, but it is very difficult to provide SaaS services for small and medium-sized enterprises. If enterprise service companies want to achieve more large-scale turning point growth, they need to develop SaaS +, + trading, + consulting, + operation, + training and so on.
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The following is the text of the keynote speech, organized by the pencil path.

Enterprise service enters into super stage

In the past 20 years of innovation and entrepreneurship development in China, a large number of investment is devoted to consumer categories. But we have noticed that, after the outbreak, more and more funds have begun to focus on the business service track. This is the inevitable experience of innovation and the inevitable experience of capital market.
We can see today that 50% of the U. But, now it has become higher and higher, rising to about 15% to 20%. Although the epidemic has brought pressure on many tracks, it brings spring to the service track of enterprises.
Everyone here, if your business is doing business services, congratulations that you have entered the tuyere stage of super track now. Enterprise service has a very important feature, is long. Long means that, in the future, if new business model design is adopted, the enterprise service companies will have market value and scale no less than or far beyond the large amount of consumer Internet.
Today, we share the super track and some typical models of enterprise service. We hope that we can learn from them, so that our enterprises can achieve faster and more stable development.
First, we briefly introduce our grand scenery network. The location of the grand scenery is a new economic service platform, in other words, we are also part of the enterprise service track. In the past decade, tens of thousands of entrepreneurs have been gathered on Shengjing platform. The scale of Shengjing Jiacheng parent Fund / direct investment fund under Shengjing has exceeded 12billion, and nearly 150 listed companies covered by our investment are now. We are building a global roadshow network for new economic investment and financing, hoping to serve and empower the venture companies with investment and financing needs through this portal.
In fact, the biggest difficulty in service is that it is difficult to enlarge in scale, because the service is 100% of the revenue growth and 100% increase in cost. What is the core of an excellent enterprise? It's a turning point growth. Therefore, under a large number of service systems, it is very important to find the inflexion growth business model. What is called inflection point income is "income after sleep", which means sleeping and people make money for you.
We are honored to see that, in the most serious situation, the opening of capital market allows us to withdraw a large number of projects invested in the layout. Even when the epidemic situation comes, it can not prevent a large number of excellent companies from listing. This also gives us a very good return of investment income. Because the enterprise service is mostly related to technology, we believe that more and more investment in technology services will bring us more return on investment in the future.
More certainty of enterprise service demand
The term corporate services is more said in the United States, and in China, another name may be called industrial Internet in the future. Just now, 50% of the U.S. capital has been invested in the enterprise service track. The number of companies with a market value of more than 10 billion dollars in the United States has exceeded 100. We believe that in China, there will be a large number of 10 billion class enterprise service companies with market value coming out in the future.
In the past 20 years, China's Internet development has been consumer Internet. Compared with consumer Internet, we think that enterprise service or industrial Internet has stronger certainty in the future. Many entrepreneurs often say that burning money, where is the money burned? In fact, a lot of money is burned on the confirmation of demand. There is a large amount of demand in the field of consumer Internet to verify the market through the way of burning money, education market, because there are too many demands in all aspects.
In the enterprise service track, the biggest certainty is the certainty of demand. The common demand of 2B service is "cost reduction and efficiency increase", which means that the investment in this track will have the opportunity to obtain a higher market value investment ratio.
No matter what kind of enterprise service you do, which dimension and angle to do the cut in, finally for the enterprise, the common demand is to reduce cost and efficiency. In the enterprise service track, it is easier to obtain customers by grasping the demand and providing such value.
About the market value investment ratio. The investment and output ratio of many enterprises in consumer Internet track is not particularly high. For example, a consumer Internet company has a high market value of about $60billion. But its financing scale is more than $10billion, which means that its investment market value ratio is 1:6.
But in the enterprise service track, it is possible to invest several billion yuan in market value. Its investment and market value return are several times, dozens or even hundreds times of the past consumption Internet. This is why more and more investors began to pay attention to the enterprise service track after the outbreak. The demand is more definite, and the lower investment will have higher returns, which is the core reason for the future enterprise service track to be super big.
SaaS transformation baas is the breakout point
When it comes to enterprise services, especially those related to the Internet, SaaS enterprise services is a very important part. SaaS can be logically inflexion growth. When infrastructure is done, the more enterprises serve, the lower the marginal cost. This can be done in the United States, but it is relatively difficult in China.
Because the failure rate of SaaS products serving small and medium-sized enterprises in China will be relatively high, because all software is called "7 points management and 3 points technology". The reason why many small and medium-sized enterprises use bad SaaS is that it may not be a problem of software products themselves, but the cognitive problem of enterprise management.
For example, in SaaS system of a store management, we all know that the normal management logic inventory cannot be negative, but in many daily management behaviors of wife and wife stores, it is the behavior of not timely warehousing and storage, which leads to the system without inventory data, and the sales of the stock out of the warehouse cannot be scanned to affect the performance. But the shop owner doesn't think it is his own management problem, but thinks the software is not good to use and discard.
SaaS can issue goods to cater to the store owner and even develop "negative inventory". This makes the product direction go against the way. The system generally calls "garbage is in, and garbage comes out". The data is not a real reflection of reality, and it is difficult for products and services to succeed.
Therefore, SaaS service is difficult to achieve real success in China, when the management cognition of SMEs is not in place; SaaS product services companies can achieve higher probability of success because of their higher management awareness maturity.
If we want to serve both large enterprises and small and medium-sized enterprises, how can we further achieve success? Then you have to take another step from SaaS to baas. From software service to transaction service, it is an important mode transformation and upgrading for enterprises to expand in scale. Of course, we can go further to B2F. It is equivalent to that we do business services not only trade, but also from transaction to supply chain end, which will bring more market space to enterprises.
Three typical business models of enterprise service track
In the enterprise service track, how to have better growth and market value return, there are some typical business models worth learning and reference. For example, shengjingjia parent Fund / direct investment fund has made remarkable achievements in the enterprise service track. Their exploration of the model is worth learning and learning from the players of corporate clothing.
First of all, what is baas? It is based on the trading system and provides the service with the transaction results as the core. For example, the direct investment of the joint venture of China Federation of China (Zoomlion) Co., Ltd. was listed in 2019. Now, the market value has reached 30billion, and is developing towards a market value of 100 billion, and is known as the first share of the Internet in industrial industry.
The transformation of the business model of the joint stock of the Federation of China also starts with the service. It was the first to serve industrial raw materials information, and it was made of yellow pages. Such services have serious bottlenecks for its income scale expansion. Later, the joint stock company of China made the baas transformation, and conducted the trade of industrial raw materials based on e-commerce platform. It can be simply understood that it is a lot of industry raw materials. In this way, the expansion of transaction size can be better realized.
Looking back the whole development process of Zoomlion, it is a yellow page stage from 2009 to 2012, and the transformation from 2013 to 2016 has been extended from service to transaction. Now, they are moving a step further towards the industrial Internet. Relying on the "Guolian cloud", it not only reaches the trading end, but also carries out the digital penetration of the whole industrial chain at the industrial end, logistics end, production end and manufacturing end. It can be used to reconstruct a trading platform for raw materials in a new field of raw materials. This process is not complicated. The expansion from 10 billion to 100 billion market value requires the opening of the whole data chain of the whole industrial chain.
It is because of such a clear model and structure that it will be listed in 2019 with a valuation of about 10billion, and it has reached nearly 30billion market value today. In 2020, the joint stock of China Federation has achieved the fixed increase of 2.4 billion, and comprehensively promoted the goal of the development of 100 billion market value.
The companies that have transformed from SaaS to baas also have micro alliance, which is also the company covered by our parent fund investment. Although many industries are affected after the epidemic, as one of the enterprise service companies, the market value and income scale of micro alliance, as one of the enterprises and services companies, are growing rapidly after the epidemic. Its market value has grown by more than 400 per cent, with a maximum of 870 per cent.
The revenue of micro League has increased by more than 10 times from 2016 to 2020. It is expanding so fast, relying on its SaaS + baas precision marketing business. The leap from SaaS to baas has brought the company's market value and business scale to a very benign state.
There is also a very interesting company, called shell to find a room. Shell model is a model we appreciate very much, and it is also the most typical business form of industrial Internet. Many people think it is a consumer service company because it helps people find houses. But, in essence, it is also an enterprise service company. Its real service object is b-terminal, is countless companies that do real estate transactions, which is its core, so it is a typical industrial Internet company.
The market value of shell housing search has exceeded 400billion. Its core is to complete the new services from second-hand housing to new housing to other new services through the transaction results through the free service of the underlying it, which forms the construction of digital community in the whole real estate transaction chain.
Now, the total transaction volume of shell housing platform exceeds 3.5 trillion. Its core feature of business model is to build a real estate dictionary based on the housing source. At the same time, it unites many real estate trading stores at the flow side, and establishes a broker cooperation network called ACN, which enables the brokers of different stores to cooperate with each other, and through the efficient matching between brokers and housing sources, It improves the efficiency of the whole real estate industry and reduces the cost.
Tob service core is who to serve, shell service core is broker. Through shell score and shell currency, the broker is rated, and the whole broker system is encouraged in this way. Based on Internet tools, the more active and efficient business structure can be realized.
So the essence of shell housing search is enterprise service, connecting the demand end and supply end, providing services including new house, second-hand house and other community ecology. We call it the community construction of B2F reverse supply chain. Today, shell housing search has united 265 brokers, 46000 stores and 493000 brokers. It has made the first share of the industrial Internet in the field of residential services in this way, and is the second largest digital economy after Alibaba in China.
Turning point growth needs SaaS+
Finally, share some thoughts about service investment of Chinese enterprises.
First, SaaS service should be oriented to large enterprise customers, and it is necessary to be cautious in the SaaS service of small and medium-sized enterprises. The enterprise service track is facing the dilemma of three high and two low. It is difficult to do SaaS service for large enterprises and small and medium-sized enterprises.
Second, how can SaaS enterprises achieve a larger scale inflection point growth in the future? Make sure to do saas+.
Saas+ trading, + consulting, + operation, + training, etc., to help customers better use the products, which is the way to success. Of course, it is more advanced, not only to teach customers to use well, but also to bring benefits directly to customers. So SaaS is the foundation, baas can better form an explosion point through unlimited expansion of transactions.
From the macro trend, industrial Internet is the most definitive super track in China in the future. So if the players who are serving the enterprise can think according to the above points, they will have the chance to stand out in the super track at a faster speed.