Zhengchonghua, the founder of the hottest Delta, s

Founder of Delta Electronics Zheng Chonghua: seek Tao but not food

Zheng Chonghua: insight into trends helps Delta Electronics continue to transform

founded by Zheng Chonghua in 1971, Delta Electronics has developed from a small enterprise with 15 people at that time to an international enterprise with 65000 employees around the world, and the compound growth rate of the company since its establishment has exceeded 35.3%

in the rapidly changing competitive situation, Zheng Chonghua believes that operators should have an insight into the trend and have the courage to change, otherwise they will disappear in the torrent of competition. In his blueprint, Delta Electronics will continue to transform and grow into an energy and energy-saving system integrator and solution provider in the future

ZHENG Chonghua

founder and honorary chairman of delta power group

in the middle of this year, I resigned as chairman of the board, and the business performance was left to them to consider. I originally wanted to retire at the age of 60. I couldn't delay until I was 75. I had to let a new team take over. In the future, delta power will continue to transform, no longer simply selling products, but system integrators and solution providers of energy and energy conservation, with the goal of creating a smart green life. The operation of enterprises should conform to the rhythm and needs of the times

insight into trends

now the competition pattern outside has changed too much. Many enterprises have risen rapidly and many excellent enterprises have declined, which is actually related to the consciousness of leaders. I thought that I could always sell what I originally sold. I didn't expect what changes human desires and technological progress would bring, and I didn't make corresponding preparations in advance

in fact, it is very beneficial for enterprises that have occupied the market to make preparations early based on their business sense, but many giants have not done so. In my early years, I went to the United States more than 10 times a year on average, and Europe at least threeorfour times. I attended all major electronic exhibitions around the world. I found that the companies participating in them were different every year, and many companies disappeared. In 1970, Delta's customers were mainly consumer goods enterprises, mostly large TV manufacturers, such as RCA and zenith in the United States, which were later replaced by the rising Sony and Panasonic in Japan. Now, the competition pattern will change again

I often remind myself to be careful. Operators should have an insight into trends, take new opportunities quickly, and be brave in change, otherwise they will disappear in the torrent of competition. For delta itself, challenges are business opportunities. At that time, when making automatic production lines, we had to buy many devices from Japanese manufacturers, and the price was very expensive. In order not to be controlled by others, we will develop some devices by ourselves, add a project every year, and after a few years, we will make them all by ourselves. Then, we will sell a full set of equipment, which requires matching services. For a while, there was no way to find enough workers in Taiwan. In addition to moving the factory to the mainland and Southeast Asia, delta began to arrange automatic production lines

the choice of industries should be constantly adjusted according to the actual environment. In 1971, Taiwan's local electronics industry began to develop greatly, but most electronic components were imported from Japan, so we produced TV parts. Later, with the rapid development of Taiwan's industry, the demand for energy was insufficient, and the construction of power stations took time. At this time, we found that the efficiency of the original power supply in household goods and factory equipment was very low, usually only 30%, generally not higher than 50%. If it was changed to switching power supply, the efficiency could be increased to at least 60%. Therefore, we began to enter switching power supply

later, we need to use fans for switching power supply. We can't buy too many good fans, so we try them out by ourselves. After success, we can do it by ourselves. However, due to the small market capacity in Taiwan, there will be great pressure for you to participate more actively in the international market. Now most of the electronic products we sell are designed according to the needs of customers

we are very active in developing new products, and the expenditure related to new product development will account for about 6% of the group's sales. I personally believe that we must invest heavily in the future on the premise of meeting a certain return on investment and giving shareholders an account. If you don't do anything, you will definitely have no future and will fall down as quickly as other companies

seek Tao but not food

delta is not OEM, and most products are self-developed. In the early stage of entrepreneurship, our quotation is only used as a bargaining chip for customers to bargain with their original suppliers. Our competitive strategy is to seek ways but not food, that is, to seek the added value of innovation, rather than simply compete with competitors for the market of homogeneous products, and we also hope to seek ways with mainland enterprises in the new energy industry

with the market adjustment, it does not mean that you can do anything. The competitive environment forces enterprises to pay attention to the new needs of the market at any time, but they should evaluate their ability to do it. It's not just that you do better than others. Now many enterprises do better than others, but still lose money. This requires that you can't run forward by yourself. You should absorb the experience and lessons of others. You should think that this situation may happen to yourself, and you can't be too careless whether you make products or manage, Don't think that the problems caused by others have nothing to do with yourself

nowadays, enterprises are becoming smarter and smarter. As soon as your products are mass produced, many products of the same type will come out on the market. Therefore, when you make a decision, you should think more and take into account the situation that too many competitors join. Try to be original as much as possible, which is a principle of delta power management

in the early days, when we were making video products, many manufacturers in Taiwan entered the panel industry one after another, thinking it was a very promising industry. We also had the same view, which was once very contradictory. We started from the TV industry. Should we do panel industry? The investment in panel industry is so large that everyone should do it. To do it, we need to have strong competitiveness. Do you have enough financial resources? If the financial resources cannot compete, it will not develop

we're glad we didn't do it at that time. If we did, we would be in trouble. We chose another way to specialize in advanced projectors. For example, the largest one can project 40000 lumens directly onto the facade of the building. This business has developed very well

for another example, we are the top three photovoltaic companies in Taiwan, but Taiwan is short of silicon chip raw materials. At that time, the price of silicon with higher testing accuracy soared wildly, from tens of dollars to hundreds of dollars per kilogram. The price of silicon was completely measured while vibrating. In the seller's market, American polysilicon manufacturers asked us to sign a ten year order. At that time, I told the team that if this went on, the photovoltaic business would not only not bring new profit growth to the company, but also become a disaster. Because ten years is too long, you don't know how far the external environment and technology will develop and what changes will be brought to the industry. Sure enough, polysilicon later fell from a few hundred dollars to dozens of dollars. Those enterprises that sign long orders are deeply hampered by this

many photovoltaic enterprises fall into a vicious circle of low price competition due to problems such as positioning, which has become a nightmare for enterprises and industries. We play the role of system integration, providing customers with overall solutions for photovoltaic systems, not limited to the sales of single products, and jumping out of the low-cost competition circle

Chuan Xian

was also the keynote of the concept of "Chinese dream" proposed by him at the beginning.

the 2008 financial tsunami, we have been aware that the market growth strength is not as strong as before. In 2009, Delta's revenue declined, and the management team's sense of crisis increased. At that time, it was decided internally to transform to brands and solutions. In 2010, delta began to build a brand-new brand. Under the competition of globalization, it is decided to move from a simple component design manufacturer to a system integration solution, with the goal of creating a smart green life

this idea is because it greatly reduces the crosstalk of small signals. Traditionally, our core product is power products, but later we gradually found that motors, motors, industrial equipment and other products also do things to save energy and improve energy efficiency, which can be applied in the field of energy conservation. Therefore, we proposed to be a system integrator and solution provider of energy and energy conservation

at present, we have integrated industrial automation solutions, integrated data center and power supply and distribution solutions, display and monitoring system solutions, and intelligent building management systems. The efficiency of our power products is more than 90%, the communication power efficiency of the communication machine room can reach 97%, and the conversion efficiency of the solar photovoltaic inverter can reach 98.1%

without efficient product production lines, it is empty talk for enterprises to achieve sustainable development, and we are still lucky. In the first decade, the company seized the growth of the TV market, with a compound annual growth rate of 69%; In the second decade, it turned to the field of PC components, especially the new business opportunities of power supply, with a compound revenue growth rate of 41%; In the third decade, we will develop our power products from desktop PCs to notebook computers, high-end servers, industrial computers and communication systems, with a compound annual growth rate of 33%

over the past 40 years, delta power has grown from 15 employees to 65000 people worldwide, with a revenue of about US $7billion. Since the establishment of the company, the compound growth rate has exceeded 35.3%

the leaders of some enterprises just don't want to step down and can't walk. He is still there. In fact, he is interested in enterprises. In a highly competitive environment, enterprises should not only have rich experience and wisdom, but also have good physical strength and be able to run

on June 28 this year, I stepped down as chairman of the board and the company elected Mr. Hai Yingjun, a professional manager, to take over. Eight years ago, I began to plan the succession echelon, and appointed Mr. Hai Yingjun, a professional manager, as the vice chairman and CEO of delta, which has begun to turn over the baton gradually. Mr. Hai is very experienced in management and knows the company's products and operation system very well. I have confidence in the existing team and believe it will do better