Chen Xuesheng only sees the current interests, he has this kind of limitations, which is a normal phenomenon, because he can only see so far, maybe NM Company is a giant in his eyes, an idol company that is difficult to surpass.

However, Hu Mingchen is the one who came back more than ten years later, and his vision cannot be the same as Chen Xuesheng.

In the era of explosive knowledge before Hu Mingchen's rebirth, he saw too many great enterprises, which disappeared after glory, and these enterprises all have a common feature without exception, that is, the company's products and development paths are no longer suitable for the times, and the vast majority of them do not have their own core technology at all. Their rapid development depends on eating the vast market dividends of more than one billion people, and once the dividends weaken and the competition intensifies, they will collapse like houses built on the beach.

Bloomberg Electronics Co., Ltd. has just been established not long ago, and it is still in the stage of development and growth, which is the most suitable time to adjust.

Since Hu Mingchen is the major shareholder of this company, or the real boss of this company, then he must instill his thinking and ideas for this company, and grasp the future direction for this company, so that this company can grow into a great enterprise in the future, for employees, for the society, and for the benefit of the country.

Hu Mingchen planned to persuade Chen Xuesheng from the root first, if he couldn't be convinced, Hu Mingchen did not rule out withdrawing and doing it alone.

"Don't talk about tens of billions, even if it's 100 billion, so what? A company without core competitiveness may be replaced by competitors at any time. is like a person who has no real skills, even if he is lucky enough to pick up some money now, he will not be rich for a long time. What are the core competencies of NM? Can you tell me? Do you think it can exist for so many years like GE?" Hu Mingchen asked rhetorically.

"The core competitiveness, NM company is by brand, its brand is competitiveness, the market recognizes the brand of NM. As for GE...... I don't know much about it, except that it was founded by the inventor Thomas Edison. Chen Xuesheng's answer seemed a little weak, and his confidence was not enough.

"Uncle Chen, first of all, let's talk about the NM brand, which is not the core competitiveness at all, yes, the brand is very important, but the brand must also have content, what does the brand rely on, it depends on the product. What does the product rely on? We can only rely on innovation and quality control, and only innovation can new products appear, and only innovation can win the first opportunity. Correspondingly, only by controlling the quality can we win the continued trust of customers and make the enterprise stronger. As far as I know, they don't have any R&D capabilities, so the products they make are not new products that cross the generations. In terms of quality control, they are also very poor, which is directly related to their lack of technical strength. To put it bluntly, what they have achieved today is just through advertising, which is what you call branding. If you spend hundreds of millions of dollars in advertising every year, the brand you can make may not be worse than NM, so what's there? If you give 50 million more advertising expenses, it is not difficult to be the first in the industry. Hu Mingchen said in a disdainful tone.

Chen Xuesheng also quietly listened to Hu Mingchen's explanation and analysis, and when he met something that he thought made sense, he would nod his head in approval.

"Let me tell you, a company like NM is the easiest to break down, but on the other hand, a company with a history of 100 years like GE is very difficult to break down. You said that this company was founded by Edison, and perhaps for this reason, this company has always focused more on technology development, and more than 20 years ago, this company invested more money in research and development than the turnover of eight NM companies. So far, the company has more than 20,000 R&D personnel, including hundreds of PhDs in light physics. Think about it, as long as a company like this has mastered the most cutting-edge and avant-garde technology, can they easily fall down? Even if they don't do anything, they can collect a lot of royalties. In other words, even if these companies are not good, they can sell patents for a lot of money. This is the fundamental reason why it was founded in 1892, and now more than 100 years later, people can still be so powerful. Do you think that the brand of NM Company and this brand of other people will be the same thing? Let me tell you, NM Company cannot compare with 10 million yuan of advertising investment a year, even if it invests 10 billion yuan in advertising. Because the core technology can't be bought, they are now spending some money to buy technology, but they are all second- and third-rate, at most they just get a design by themselves. Hu Mingchen took a sip of water and continued.

Hu Mingchen said so much, Chen Xuesheng was also a little touched. However, it does not mean that Chen Xuesheng fully agrees with Hu Mingchen's strategic vision and development path.

There is also a problem here, and that is the problem of self-confidence. In Chen Xuesheng's heart, he does not have such far-reaching confidence. In his opinion, for a small company like Bloomberg Electronics Co., Ltd., doing a good job of foundry and making money is the first priority, whether it is GE or NM, it is a bit out of reach for him.

In other words, Chen Xuesheng does not have the ambition to become an influential entrepreneur, while Hu Mingchen has, not only that, but Hu Mingchen has done everything possible to move in which direction.

"I think what you said makes sense, but our company is still very small, and we are still far from others, even if we engage in technology research and development, how much money can we invest? Just like in our industrial zone, there are dozens of companies, and none of them really spend a lot of money on research and development. Chen Xuesheng struggled.

"So these companies, in the end, they can't become the climate, maybe they can live a good life now, they can earn hard money, but one day, they will be swept into the dustbin of history. When others use cars and wagons to pull goods, no matter how good the carriage is, it is backward and will lose. In the last years of the Manchu Qing Dynasty, our door was opened by something, strong ships and sharp cannons, how many people were mobilized at that time, and how many people we held big swords and spears, and the result was not to sign a treaty that lost power and humiliated the country. You say that those things can only be played by big companies, and large companies are also grown by small companies, which company is great as soon as it is founded? It is not necessary to accumulate one step at a time. GE's tens of thousands of patents are not made in a day, technology depends on accumulation, and talent also depends on accumulation. Otherwise, we will never have our own core technology, let alone our own core talents. Hu Mingchen said reasonably.

"Then what do you say, what should we do now?" Chen Xuesheng said that Hu Mingchen could only retreat.

"It's very simple, list a rule, such as how much profit is invested in technology research and development, or how much turnover is invested in technology research and development, and this proportion must be controlled. Hu Mingchen said.

"So what do you think? What is the right ratio? As far as I know, most companies are no more than three percent. ”

"Three percent, three percent can do something. It is because of the low R&D investment of enterprises in our country that we will always be at the lowest end of the industrial chain. Hu Mingchen said this, took another sip of water and hesitated slightly, "Considering our current business situation and methods, it is somewhat unreliable to measure by turnover, and our profits are too low." In this way, let's use profits to divide the proportion, and 50 percent of the profits will be used for scientific and technological research and development and transformation. ”

"Fifty percent? That's half, isn't that too high? If we invest like this, how can we expand our production capacity? For example, if we have a profit of 4.8 million yuan now, wouldn't we have to have 2.4 million yuan to support technical personnel?" As soon as he heard Hu Mingchen say that 50 percent of the profit was worth it, Chen Xuesheng almost jumped up.

After so many years in Pengcheng, he has never heard of a company that would use such a high percentage of profits to do technology research and development.

It is not enough for an enterprise to rely on technology research and development, business expenses, management costs, incentive bonuses, and expansion of production is a large amount, not to mention the brand promotion costs, which are advertising costs. The money has to come from profits, such as Bloomberg Electronics Co., Ltd., and when the New Year begins, Chen Xuesheng, the boss, will give red envelopes to employees and bonuses to employees who have contributed.

Half of the R&D station, the other parts, which is equivalent to a significant reduction, will inevitably affect the continuation and development of the company.

"If you think it's too high, then we can lower it a bit. The point is that our profit margins are too low. Hu Mingchen saw Chen Xuesheng's fierce reaction, and had to back down, how to say that he is also the second largest shareholder and general manager.

"Ten percent, I think 10 percent is more than that, and it's hundreds of thousands a year, which is almost enough for the expenses of a dozen technicians. Chen Xuesheng himself said a proportional way.

"Ten percent, hundreds of thousands of what can be done. The minimum should not be less than 30%. Doing technology research and development is not only about the salary of the personnel, but also about their equipment costs and scientific research consumption, which are expensive. Either we don't do it, or if we want to do it, we must do it well, and we must ensure their needs, otherwise it will not be a chicken rib?" Hu Mingchen immediately rejected Chen Xuesheng's suggestion.

"Thirty percent...... Next year, we will have to invest 15.6 million yuan, which is too much. Chen Xuesheng said with a bitter face.

"Uncle Chen, don't look at the investment now, if they can really make a name for themselves, they will benefit more. Do you know that some companies are doing radar now? Do you know what other people's profits are?"

"I don't know. ”

"Let me tell you, their profits will not be less than two hundred, and some can even reach three hundred percent, maybe even higher, and the things that cost more than a hundred yuan will be sold for four or five hundred at will. Do you think they rely on something, it's just that they have mastered some technology? You have to believe that if we invest today, maybe the return in the future will be tenfold, hundredfold, or even thousandfold. ”