Focus, Innovation, Persistence---Walde Wind and Rain Road

Chen Jifeng, Chairman of Beijing Wald Diamond Tools Co., Ltd.

About "Walde"
The predecessor of Beijing Wald Diamond Tools Co., Ltd. (hereinafter referred to as Wald) is Beijing Xiboer Technology Development Co., Ltd. (hereinafter referred to as Xi Boer) established in 2000. At the end of 2010, Beijing Xiboer Company reorganized its high-quality assets and subsidiaries in Wald in order to meet the “single subject” requirement of the capital market and overcome the problem of excessive intangible assets. Wald began to replace Xiboer. The main body of business. In 2012, Wald won the second place in the national finals enterprise group in the first national innovation and entrepreneurship competition jointly organized by the four ministries. At the beginning of 2015, Wald completed the shareholding system transformation with a registered capital of 60 million yuan and a net asset of more than 200 million yuan. As a Beijing-based Zhongguancun Top 100, Wald is a state-level high-tech enterprise engaged in the research, development, production, sales and service of high-end diamond tools, and is listed as a national key new product enterprise. In 2015, Wald's sales revenue was 171 million yuan, the return was over 200 million yuan, the net profit after tax was 40 million yuan, and the net cash flow from operations exceeded 60 million yuan.

Wald has won numerous professional awards

Wald company architecture

One of Wald's core businesses: ultra-high precision glass cutting diamond tools (cutter wheels)

Ultra-high precision glass cutting diamond tool (cutter wheel) for display and touch screen glass cutting. In 2004, research began, and research and development began in 2006. In 2009, it was officially recognized by the market to fill the domestic gap. After 2012, it has gradually developed into a leading brand in the industry, and competes with international veteran competitors in the most cutting-edge and cutting-edge fields.

Wald's core business 2: high-precision PCD, PCBN, CVD cutting tools

High-precision PCD, PCBN, CVD cutting tools, mainly used in automotive, new energy industry, aerospace and other processing fields; began trial production and exploration in 2006, officially put into production and rapid development in 2011; focused sub-products in China The main competitors are foreign big brands. The company only makes high-end products, and more than 40% of the products are exported to Europe and America. In the next 3 to 5 years, multiple segmented products will surpass the current tool-cutter business and ensure the company's continued rapid growth.
In addition, Wald also has PCD, PCBN composite materials and products (blade materials, wire drawing core), CVD diamond materials and their application products (one of the company's core business in the future), PCD composite sheet polishing equipment and complete process technology output. Auxiliary services in many fields, such as conventional precision PCD cutting tools.
Overall, the size of Wald is not large, but the quality of its operations is very good. Under the overall strategy of ensuring "product technology leadership", "focus on superhard, high-end positioning, and the pursuit of the ultimate" is Wal-Mart's unswerving product positioning pursuit for more than ten years.
"Focus, innovation, and persistence" are the three most important words given by Chairman Chen Jifeng in summarizing the development of Wald.

Wald's "focus"
1. Focus on market segments
Select a market segment that allows you to achieve high growth opportunities. The research and analysis of the market should focus on the selected market segments and not be interfered by other market segments. The so-called market segments are not general. The so-called what industry is big, but it should be a very small market. For example, every part of a car is a sub-sector, and the production of each part in each part can be a more subdivided industry. The production system of each part can be divided into many sub-sectors.
2, focus on core products
After focusing on the market segment, the core product is selected. It is to classify various products that are required by the focused market segments and that are capable of producing or capable of being successfully developed. In the certain period, one or three types of high value-added, high growth, and market capacity are selected. Focus on the big sub-products, don't want to do anything, and want to make any money;
After that, the company's various resources must be tilted to the core products; in order to focus on the core products, there must be a rejection of non-core product orders.
3. Focus on the core customer base
When focusing on the core customer base, research and analysis of customer needs, product innovation and research and development direction, sales policy and service policy formulation, product calibration, delivery commitment, etc., should focus on the core customer base, avoiding It is misled and interfered by non-core customer groups; in order to focus on the core customer base, customers who have bad credit will be abandoned, and some customers who have long-term cooperation will not bring benefits and growth will have to be neglected.
4, stepped focus
Any product has its life cycle and will have a germination period, a growth period, a maturity period, a meager profit period or a fading period. Most of the products that have been smash hits will be subverted or even completely dying with the development of technology and changes in demand. For SMEs, it is best to focus on one product at a time until it is "big." "For the company's fist products. At the same time, reserve forces are preparing for the next product to be focused on.
In short, through “focusing”, the company can concentrate on the best talents, funds, venues and other resources on a subdivided product for a period of time, which can be quickly successful; and it can be further explored and innovated in a subdivision. At a height that others cannot reach, they gain absolute competitive advantage; more importantly, at any one time, the company can have at least one product in the growth or maturity stage, and can lead or even monopolize in a market segment with strong demand. Status, so that the company will continue to prosper.

Wald's "Innovation"
1. Regarding business model innovation, this is a very fashionable, very simple concept that is difficult to really understand. There are various explanations that can be found on the Internet. It seems to be very simple, but it seems to be somewhat mysterious. But for the manufacturing industry, it is still necessary to return to the standard. It is nothing more than to meet the needs of who, what products to do, which businesses to earn money, which business assistance and support, how to improve barriers to competition, how to create a harmonious upstream and downstream value chain and so on.
2. The origin of product and technology innovation lies in customer needs. Product innovation must be based on the needs of customers, not just new and new, and new for themselves. The needs of customers need to be carefully investigated, and they cannot be guessed by personal feelings. Many of the customer's needs are hidden, and the customers themselves may not realize it. We need to dig and inspect. Technological innovation is the innovation of ideas, technologies, processes, tooling, equipment, etc., which are designed to meet product optimization, efficiency improvement, cost reduction, new product manufacturing, etc., and can not be justified to meet individual interests.
Small and medium-sized private enterprises are not easy to make money, and their investment in innovation is their own hard-earned money. Therefore, we must emphasize low-cost innovation: failure is not necessarily the mother of success, but every failure is definitely a cost; innovation does not necessarily have to be a new creation from 0, can be referenced or even copied across industries and regions. But even if it is copied, it must be given new content, and it has its own core things, not a hard copy. Innovation can be the integration of existing technologies in society, and many product innovations in modern society fall into this category. The content and method of integration are different, and the products are different.

Wald's "persistence"
Wald has benefited a lot from its insistence on “focus” and “innovation”. On the one hand, the company has fewer and fewer types of products, fewer and fewer customers, and fewer and fewer employees. However, the business conditions of the company have improved rapidly. The strength of the company has become more and more profound, and the ability to resist risks has become stronger. The market influence is growing. On the other hand, the net cash flow of business operations has improved rapidly. In 2015, it exceeded the sum of net profit after tax and amortization of assets.
In short, innovation requires focus and persistence. Every core project needs a dedicated team. For several years, ten years or even decades, we will continue to focus on one place, keep abreast of the potential needs of the core users, the latest needs, and constantly explore, constantly change and upgrade. And continue to expand. Only by continuously investing in R&D and improvement of technology and innovative products, and keeping product design and innovation ahead of the needs of users, can we always stay at the forefront of the industry and gain continuous recognition from customers. "Competing for the peak of the industry, creating a world famous brand" will be the eternal pursuit and development goal of Wald.
(This article is selected from the speech report PPT, and the content is partially deleted.)