Enlightenment from the localization of ABB, the ho

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Enlightenment from the "localization" of the multinational ABB at the beginning, abb was completely aimed at the needs of the Chinese market. At that time, the needs of China were different from those of the international market. Now, the Chinese market has been developing towards internationalization, and Chinese enterprises are increasingly taking the road of internationalization. In this way, China's demand actually becomes an international demand many times

the success of localization often determines the fate of multinational corporations in the market of a certain country

since the first joint venture was established in China in the early 1990s, abb has gone through nearly 20 years in China. Its localization performance is known by many multinational companies

at the press conference on March 31, it was learned that in 2010, abb China again ranked first in the world in terms of business volume, accounting for 14% of the group's sales

what is the connotation of ABB's localization strategy? What is the significance of ABB's experience for more and more Chinese enterprises marching overseas

R & D localization strategy

the success of Microsoft, IBM, Volkswagen and other multinational companies in the Chinese market is largely due to the technology R & D localization strategy they adhere to

abb is obviously also a practitioner of the above strategies, and abb is different from other multinational companies in terms of specific operations

In 1992, abb established its first joint venture in China. Since then, abb has started technology transfer to China. Different from other technical foreign enterprises, abb does not localize technology in a scattered way, but systematically localizes technology. The establishment and development of its business in China has also been systematically supported by R & D

abb invests heavily in R & D in China. It is understood that ABB's R & D investment in China increased by 40% year-on-year in 2010, and this figure will increase to 50% in 2011

at present, abb has more than 2000 R & D and engineering technicians in 20 cities in China, and 80%~90% of the products developed serve the Chinese market. The China Research Center, headed by Dr. liuqianjin, is also one of ABB's highest level research centers in the world

the systematic R & D layout and strong R & D investment have provided strong support for ABB's business in China, as well as the ability to capture market opportunities and respond quickly

after the official introduction of China's 12th Five Year Plan, abb quickly found the entry point according to its own technical advantages, and made predictions and preparations

fang Qin, President of ABB North Asia and ABB (China) Co., Ltd., told the science times that abb believes that China will have sustained and rapid development in energy conservation and emission reduction, renewable energy, water treatment, high-speed rail and other fields, and ABB will continue to maintain a strong pace of investment in China, including building new production facilities, expanding R & D bases, and continuing to promote product localization

dual mission of local R & D

with the deepening of R & D localization strategy and the change of Chinese market demand, ABB's R & D in China can not only support its business in China, but also serve its global market

when reviewing ABB's nearly 20-year R & D history in China, Fang Qin said that at the beginning, abb was completely targeted at the needs of the Chinese market, and at that time, the needs of China were different from those of the international market. Now, the Chinese market has been developing towards internationalization, and Chinese enterprises are increasingly taking the road of internationalization. In this way, China's demand actually becomes an international demand many times

based on this, Fang Qin has given ABB research in China. At the same time, special thermoplastics have proved their advantages in metal replacement and utilization with their own good characteristics. Due to the collision between the carriages equipped with buffers made of steel plates, the dual mission is to meet the special needs of both Chinese and global customers

for example, ABB's 800 kV HVDC technology is developed in China, but this technology is not only used in China. In march2011, ABB Group announced that it had obtained the multi terminal UHV DC transmission project worth 900million US dollars in India. This long-distance and high-capacity transmission project uses this UHV technology

another example is that abb has more than 60 personnel engaged in transformer research and design in Chongqing, constantly improving transformer technology. These transformers currently serve not only the Chinese market, but also the American market

liuqianjin, chief technology officer of ABB (China) Co., Ltd., said that at present, many R & D projects are difficult to distinguish between Chinese projects and global projects

a project meeting was just held yesterday, which was attended by colleagues from Sweden, the United States and other places. We discussed how to solve the actual demand problems through R & D from a technical point of view. These demands must be real. Whether the market for technology application is China or the world is not the core issue we pay attention to

According to statistics, in recent years, China's investment in science and technology has continued to grow at a rate of about 20% per year, with an annual investment of more than 460billion yuan and more than 30000 scientific and technological achievements achieved each year. However, the low conversion rate of scientific and technological achievements has not been greatly improved

wangzhizhen, vice chairman of the National Committee of the Chinese people's Political Consultative Conference, vice chairman of the Central Committee of the Jiu San Society and academician of the Chinese Academy of Sciences, pointed out in her speech at the two sessions last year that at present, the transformation rate of China's scientific and technological achievements is about 25%, less than 5% of which have truly realized industrialization, which is far from 80% in developed countries

in terms of ensuring the conversion rate of scientific and technological achievements, ABB's practices can be used for reference

abb's R & D activities include the earliest research, market research, conceptual design and research activities, and then the product development stage. In order to reduce R & D risk, abb will control the risk in the early stage of R & D. Therefore, once ABB decides to push a concept to the achievement stage, its conversion rate is very high

in terms of specific practices, abb takes technology development as a means to shield early-stage risks. ABB's technology development is divided into several processes: first, pre investigation. Formal development projects must be recognized by the business department before they can be truly carried out. After the project is approved, there will be a special gate model to control the risks of the whole process

Fang Qin told the science times that during the implementation of the project, the relevant person in charge would make a list of project risks and assess the risks. At each stage of the door model, it will be re evaluated. The problems with the highest risk must be solved first. Thus, in the early stage when the project cost is still relatively small, the risk of the project can be reduced to the greatest extent

in addition, abb encourages 4 Automatic speed change: the speed of moving the beam during the experiment process can be automatically changed according to the preset program, which is the innovation of scientific and technological personnel

after accumulating funds in the manufacturing industry, Fang Qin told that the three indicators, namely, the number of papers, patents and product conversion rate, which are more important in domestic research and development, are also important reference indicators for ABB. However, abb is not limited to these three points. There are more and more important innovation indicators, such as product innovation ratio and product innovation speed

according to Fang Qin, the product innovation ratio is an indicator to measure how much revenue a technology is likely to bring. ABB emphasizes the economic consideration of this issue. Because R & D must be combined with our business to bring us benefits

ABB also attaches great importance to the speed of innovation. How long it takes for R & D projects to reach the market is very important. If the project takes a long time, the best business opportunity may have been lost when it is completed. Fang Qin said

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