Tao Te Ching and Wuwei Management

Chapter 55 4 "Those who have surplus will lose it, and those who have deficiency will make up for it": self-elimination is the only way to avoid elimination
To choose means to give up, and to innovate means to be eliminated.

The way of heaven, is it like drawing a bow?Those who are high suppress it, those who are low lift it; those who have excess damage it, and those who are insufficient make up for it.

—— "Tao Te Ching" Chapter 77
The law of nature is probably like shooting an arrow with a bow, right?If the string is raised high, lower it a little, and if it is low, raise it a little higher;In shopping malls, any kind of situation will be encountered, which requires entrepreneurs to have a flexible mind, good at random adjustments, self-elimination, and self-innovation.

The eagle is recognized as the longest-lived bird in the world, and its age can reach 70 years.Yet to live that long, it has to make painful and important decisions at the age of 40.

When the eagle lives to be 40 years old, its talons can't grab the prey effectively; its beak becomes long and curved, almost touching its chest; its wings are very heavy, because its feathers are thick and thick.At this time, it has only two options: wait to die or go through a very painful renewal process-150 days of rebirth.

If it chooses to be reborn, it must work hard to fly to the top of the mountain, build a nest on the cliff, and stay there to ensure safety.The eagle knocks its beak against rocks until it falls off, and then waits for a new one to grow back.Next, it uses its newly grown beak to pluck out the nails one by one.When the new nails grow back, it plucks the feathers one by one.After a few months, the new feathers grow back, and it can fly freely again, regaining 30 years of life!

If an enterprise wants to have long-term development, sometimes it must make difficult or even painful decisions.It is good for a company to grow bigger, but there are also problems that go hand in hand.It is precisely because of its "bigness" that its "beak" and "claws" make the "executive power" decline, and its "hair" makes the "body" increasingly bloated, and its "sensitivity" is also increasingly slow, and its ability to respond to the market is not as good as before. , so the enterprise is facing a crisis.At this time, entrepreneurs must make up their minds to get rid of the disadvantages and regain the market.

Andy, the former president of Intel?Grove believes that innovation is the only way out.Eliminate yourself, or the competition will eliminate us.

Throughout the development history of Variety Show Group, it is actually a series of footsteps that constantly deny themselves and surpass themselves. In 2002, Zan Shengda, who ranked 42nd in Mainland China's Top 39 Rich List, was only [-] years old. He served as the chairman and general manager of Jiangsu Variety Group and Jiangsu Variety Co., Ltd., involved in high-tech investment, chips, textiles and other fields.

Zan Shengda resigned to start his own business when he was a good designer, because he vaguely felt the bright future of China's private economy; The fierce market competition and the dilution of profits; when he was firmly seated as the champion of my country's silk garment export enterprises, he expanded the scope of investment to the wood industry, because he realized that the growth rate of garment enterprises was close to the limit, and the enterprises had to find new ones. When most domestic companies have not yet understood the capital market, he has already begun to act decisively and do his best for the listing of companies; In the field of science and technology, from software circulation to software development, and then to chip design, every step of the way, chess and chess is ahead.

Zan Shengda said that his guiding ideology is "stay away from competition". When an industry is in full swing, new investment directions must be considered to spread risks.Because an overheated industry will attract too many competitors to enter, the market will soon reduce profits due to fierce competition.Transition is always painful, especially entering an unfamiliar territory.But Zan Shengda believes: "People have no long-term worries, but they must have near-term worries. Instead of suffering the pain of passive changes, it is better to take the initiative to change, first bitter and then sweet."

Some media think Zan Shengda is a capital player, Zan Shengda disagrees with this statement, he thinks he is an industrialist.However, Zan Shengda has a rather mature theory on capital operation.He believes that what traditional industries do is addition and subtraction, and the speed of enterprise development is quite limited; while capital management is done by multiplication, and the speed is greatly improved; if successful capital management is combined with high-tech industries, then what you do is multiplication. It is convenient and can make the enterprise grow rapidly with geometric progression.Because of this, in terms of project selection for variety shows that have developed to this day, they must be high-tech and have a market, and those with low barriers to entry will never enter.

There are three key issues Zan Shengda is most concerned about: Where is the market?Where is the technical advantage?Where is the cost advantage?Some products have very high technology, but there is no market, who do you sell to?Some have markets, but the technology is very low and anyone can enter.Both problems have been solved, it depends on the cost advantage of the enterprise.

The projects selected by variety shows today basically occupy the first and second positions in various industries.Zan Shengda believes that first-rate companies sell standards; second-rate companies sell brands; third-rate companies sell technology; and fourth-rate companies sell products.In the past, we sold products and earned hard money, and were greatly affected by the market environment. When the market was good, we could make money, but when the market was bad, we couldn’t make money.

Zan Shengda's efforts in the direction of selling standards finally bear fruit. On April 2005, 4, the Ministry of Science and Technology, the Chinese Academy of Sciences and the Ministry of Information Industry announced that the computer chip "Godson 18" invested by Jiangsu Variety Group with completely independent intellectual property rights was a great success, and it ended the "No. The history of "China Core".And such a modern enterprise group, which is at the forefront of the IT industry, started from a small village-run factory producing embroidered garments. This is the result of Zan Shengda advancing with the times and constantly denying himself.

Management guru Peter?Drucker said: While innovating, one must learn to give up.Innovative organizations don't waste time or resources trying to defend the old.The systematic abandonment of yesterday's obsolete frees resources for new work, especially the rarest of resources—talented people.Innovation is not only technological innovation, but also strategy, concept, organization, market, and business model innovation. For example, Dell defeated technologically advanced IBM and HP through business model innovation.To reshape the combat effectiveness of the enterprise, it is necessary to comprehensively improve the innovation capability of the enterprise.The essence of self-elimination is innovation, and the process of innovation is the process of self-elimination. If an enterprise wants not to be defeated by its opponents, it must continue to innovate.

(End of this chapter)