Debate on Wealth among 50 Business Titans

Author: Gao Yunfei
Publisher:
Publish Date: 2006-08-01
Features: Transformation has no alternative
Host: A young tiger is not afraid of the tiger, turning a 110-year-old company into a 4-year-old company, especially with the background of a state-owned enterprise. In fact, many state-owned enterprises in China are currently undergoing transformation. Can you share with us what you think are the challenges in the transformation from a state-owned enterprise to a new enterprise? Tang Xia: I think all companies should put their mindset in a starting position.
Host: Really? Is it easy to achieve?
Tang Xia: It's not easy, but it's very practical. At least for Thomson, we have successfully done this.
Host: During this transformation process, have you ever failed?
Tang Xia: No, I have many dissatisfactions and setbacks, but I don't consider them failures because I have never been discouraged. What often troubles me in this process is seeing people from the same company in different departments never communicate with each other. This really makes me unhappy, and I became a stepping stone. My job is not to be a stepping stone but to do other things, definitely not to be a stepping stone. If I spend my time asking, "Have you talked to Mr. X?" "Have you talked to Mr. Y?" I would completely mess things up.
Host: But how can you bring them together? Make them really willing to work together, not just because you want them to work together.
Tang Xia: No, in my view, there are four things that will never work. You must try to create an environment where we can win together. You must try to make them compete, in which they can realize that communication with colleagues brings great benefits. You need to make them realize that communication with colleagues can make things better. So what you need to do is find a fulcrum for rapid communication. There are many ways to do this, and it's very easy to do without shouting at people.
Host: Have you ever failed?
Tang Xia: Never, because I am very adventurous and optimistic, but sometimes the time spent may be longer than I expected.
Host: You mentioned earlier that Thomson was previously a company mainly producing traditional home appliances, accounting for 85% of the company's performance. Now, you are also transforming into a partner in the media and entertainment industry. What is the reason for this?
Tang Xia: Let's go back to 2000. When we set this goal, we realized that 85%, about 50 billion to 40 billion euros, was not enough on a global scale. So we needed to find partners, and we made this industry international. We felt that we were not suitable for operating this industry ourselves. For us, it was obvious that as visual elements, images, and so on, became increasingly digital, the media industry needed us to provide more services. Technical services, industry services, and so on, all mastered technology. These areas are more suitable for a technology-oriented company like ours rather than those that require a strong domestic market. Our core idea is to continuously innovate the company. Today, the company's sales are still as high as $8 billion, but we have completely changed the product structure.
Host: So you have found your own foothold in the new media industry chain. As you mentioned earlier, you are seeking partners in the media and entertainment industry and transforming in this direction. Now, let's take a look on the big screen to see how well you are doing in this regard. P38-39