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on November 18, 2019, China's most famous and oldest software brand Jinshan Office (the parent company of WPS) was listed on the science and Technology Innovation Board of Shanghai Stock Exchange. With an issue price of more than 40 yuan, the company's share price soared to 140 yuan at the beginning of trading. For nearly a year after that, Jinshan office ranked first in the market value of science and technology innovation board. At the same time, it became the largest Internet company in the whole A-share market, with a market value of more than 200 billion yuan at the highest time. Does all this seem incredible? in the past two decades, there have been many "success" or "legend" stories in the field of science and technology Internet in China, but the story of Jinshan office is really thought-provoking in the context of today's national discussion on "science and technology independence and self-improvement". The story of Jinshan office began in 1988. That year, a young man named Qiu Bojun joined Jinshan company. A year later, one person knocked out 120000 lines of WPS code, which directly filled the blank of Chinese word processing software after computers entered China. This kind of office software has been very popular since its birth, and it has occupied a dominant position in China's office software market for seven years. But in the eighth year, Microsoft Office entered the Chinese market, breaking this situation. Fortunately, since 2012, Jinshan office, relying on WPS, has taken the lead in the layout of mobile office market, and in the following years, it has made great progress“The commercial cash flow mode of "three-stage rocket" quickly opened the corner overtaking and pulled back the game. when it comes to the domestic office market, we are sure to talk about the several rounds of the war between Jinshan office WPS and Microsoft office. But today, we want to bypass these past events and reveal some unknown and interesting details of Jinshan office in obtaining investment from the perspective of GGV Jiyuan capital, one of the earliest investors of Jinshan office. Li Hongwei, managing partner of GGV Jiyuan capital, and Wu chenyao, executive director of GGV Jiyuan capital, led the investment. This interview is with Wu chenyao, executive director of GGV Jiyuan capital. Before investment, Wu chenyao had an interview with Lei Jun and Ge Ke in Zhuhai reviewing and thinking about the communication with Jinshan office in 2013, he was most impressed by the fact that other investors in China underestimated the imagination of SaaS market. No one expected that the business, which was generally believed to be worth only one billion US dollars, would eventually develop into a market of hundreds of billions of US dollars. Of course, behind the unexpected returns, the process is much harder and longer than they expected. In 2013, Xiaomi, led by Lei Jun, developed rapidly, while Jinshan office, which is also the seat of Lei Jun, is also growing rapidly. This brother company of Xiaomi has attracted much attention. However, as an investor, of course, GGV is not only interested in the "Star" aura of Lei Jun and Xiaomi on the head of Jinshan office, they really see itSaaS is the track, and the breakthrough concept of Jinshan office WPS in the mobile terminal. Although Jinshan office's WPS is not a "young" product, from the investor's point of view, it is still a scarce project in the SaaS track. Therefore, it has not caused much controversy within GGV, and the process of investment negotiation is relatively smooth, basically in accordance with the standard process - Li Hongwei, managing partner of GGV Jiyuan capital and executive director Director Wu chenyao and his party flew to Zhuhai to meet with Ge Ke, then CEO of Jinshan office, and all the N-1 senior management teams of Jinshan office in Beijing and Zhuhai in the sunny sea view office building to discuss the investment details. The report of Beijing daily in 2003 was kicked into the mobile terminal by Lei Jun There are many important factors contributing to GGV's firm choice of Jinshan office, including the brilliant performance of WPS at that time, the mobile office concept of Jinshan office itself, the aura of Xiaomi and Lei Jun, and the potential of commercial realization, etc. As a third-party external software, WPS supports Apple IO before Microsoft officeS office document editor is a top 5 frequent customer on the list of practical tools in Japan, Europe, America and other 50 or 60 countries in the overseas market. More importantly, at that time, the revenue of Jinshan office exceeded 100 million yuan, which was quite good in the field of enterprise services at that time. In general, the WPS of Jinshan office is a relatively mature product, which has been proved to be stable by practice. The product strength is infinitely close to Microsoft office, and few products can reach this level. In the market, Lei Jun team has many years of Internet combat experience and the advantages of Xiaomi ecosystem, including the output of management culture and ideas, such as Xiaomi's unique marketing culture, mobile terminal promotion experience, the way to distinguish payment from free, and the advantages of talents. All these advantages add up to the rapid growth of Jinshan office. At the WPS [Chao] office conference in 2020, Jinshan office launched the collaborative family bucket product there was an interesting saying at that time that Jinshan office was kicked into the mobile terminal by Lei Jun, forcing the team to be fully mobile. "This may be true, but what's more important is that the company itself wanted to do the same at the beginning, because that was the era of mobile Internet," Wu said. Seeing that brother company cheetah mobile is developing rapidly, Xiaomi group also relies on hardware + software + app ecologyAs a Lei Jun company, how can it not be infected by the enthusiasm of mobile Internet? " At this time, Microsoft already has the advantage in the desktop end, but there is no product layout in the mobile end. With the trend and the pressure of Lei Jun, mobility is naturally put on the agenda. Jinshan office seized the opportunity this time. WPS took the lead in the mobile terminal. Although it can't completely PK Microsoft, its ambition in the mobile terminal layout shows a more futuristic side. after that, Jinshan office made great efforts in the legitimate market, and also received the dividends of domestic software and IOE, and achieved good development. Wu chenyao said: "this is an opportunity brought about by the changes in the era of Jinshan Office (including to C and to C in the era of mobile Internet) The enhancement of b-payment awareness, as well as the localization trend of core products), the persistence of the team, the incentive of general manager Lei, GGV and other investors have brought suggestions to Jinshan office in terms of talent incentive, sea going strategy, corporate governance structure, and so on. Together, these factors have contributed to the development of Jinshan office far beyond the forecast. " Not from the very beginning, he thought about how to commercialize the WPS products talking about the essence of the success of WPS products, Wu Chen Yao thinks that it is how to maximize the value of products and provide more useful functions to users. Geke said that today's WPS is no longer a software, a tool, or even a basic software service, but a universal requirement of the Internet. According to his observation, based on the difference of enterprise ecology, the SaaS enterprise service modes of China and the United States are very different. The SaaS service mode of the United States is a complete triangle, from small micro enterprises to large enterprises; while China is a gourd, the big gourd below is a small micro enterprise, with a cycle of three to five years, and the small gourd above is a head enterprise. As a SaaS sample with Chinese characteristics, Chinese people from primary school students to State Grid and industrial and Commercial Bank of China are using WPS. WPS has become a universal Inte
rnet service beyond enterprise service. Therefore, WPS will have a user base of 474 million, which can naturally break through the problem of customer acquisition cost. The universality of this product is one of the important reasons for the commercialization of Jinshan office. At the beginning of the investment, WPS's domestic market share was second only to Microsoft office, ranking second. However, the number of users was already very large, the installed capacity / daily opening was over 100 million, and the product's technology maturity and reputation were also very good. But the problem was how much imagination space there was in this market, and whether it could only rely on to B and to G charges. The sunny Zhuhai beach did not breed the lack of innovation that GGV was worried about. Stimulated by the Lei Jun system and Jinshan group system, Jinshan office and WPS have strong innovation. As Li Hongwei, managing partner of GGV Jiyuan capital, mentioned, in 2013, there were no concepts of SAAS and PAAS, and there were no so-called TOC charging modes such as monthly payment, subscription, membership, etcIn order to serve the larger market of large enterprises and small and medium-sized enterprises, Jinshan office has also gone through a period of product discussion, including learning from overseas products, going out to sea, and making efforts in the derivation of enterprise office and collaborative ecological development, such as the derivation based on the collaborative office between mobile end and PC end, enterprise cloud documents, cloud storage and other requirements, striving to do better than office in these aspects, Take localization function and support as a breakthrough. It's not a simple thing to do mobile terminal. The first challenge is that there are high technical barriers to this issue. Fortunately, Jinshan had a relatively strong technical reserve for office work at that time. Another key is how to cash on the mobile terminal. Wu chenyao said, "how to cash in the mobile terminal" at that time, we actually had no answer. Not only Jinshan office had no answer, but also all the enterprises that launched mobile app had no answer. We were all groping. WPS has no shortage of users. After a long time of market payment habit cultivation, WPS has redefined the income structure according to the actual payment ability, payment demand and actual situation of users, and has formed a relatively mature commercial realization scheme. In short, it is the "three" mode of charging for large enterprises, collecting value-added fees for individuals and small and medium-sized enterprises, and pushing advertisements for free users "Stage rocket" mode. According to the publicly disclosed data, as of December 31, 2020, among the 474 million users of WPS, the number of actual paying users including members, subscribers, rice husks, etc. has exceeded 19.62 million. The maturity of business model is a long process and the result of years of evolution. WPS2000 used to be the memory of many people in China, GGV invested in Jinshan office in 2013, and graphite documents and other collaborative office products appeared in 2014; in foreign countries, although Google Docs was born earlier, there are not many users. WPS can be said to be one of the few mobile office products in the market. In contrast, at that time, the trend of cloud computing was not strong, and most of our attention was focused on CRM. We were not optimistic about the relatively small market of mobile office. But Jinshan office is one of the few Chinese enterprises that dare to challenge Microsoft in the office market. On the one hand, the old enemy's resolute fight against piracy has also played a positive role in promoting the commercialization of Jinshan office. Where to start? The logic is very simple. China's copyright environment is unfavorable to the WPS of Jinshan office. Microsoft's action of cracking down on pirated software is very popular for the former, because cracking down on pirated software will make enterprises have to pay. Once the enterprise's habit of paying is formed, WPS only needs to reduce the charges, and it will gain an advantage. If Microsoft turns a blind eye to piracy, WPS will be free. To catch up with office, one of the things WPS has to do is to support new functions and improve stabilityStrength and Microsoft PK, which is the power of WPS optimization. Later, the market share of cloud collaborative office efficiency tools such as slack began to increase. After seeing the user scale and value of such applications, the business model of enterprise payment gradually matured, and SaaS renewal and charging by account were accepted by many enterprises. Behind the change of payment habits of enterprise users, there are also changes in the pattern of Chinese enterprises. In the past, the majority of domestic enterprises were industrial companies, and there were few knowledge-based companies. Now, Internet Education and the new economy have spawned a large number of knowledge-based economy. How to enlarge and preserve the value of knowledge has become a matter that enterprise managers began to consider. Office software payment has become a strong demand. Like to C, consumers' habits have changed, and the enterprise payment mode has been put into practice. However, Ge Ke reminded that the success of Jinshan office's business model does not mean that China's SaaS market has "landed". He believed that there is still a cultivation period for enterprises to accept paid products. What small and micro enterprises care about is free and convenient. Such products are brought from to B by Alibaba, Tencent and other enterprises C. Finally, it is realized through traffic and advertising, but this is not the service object of SaaS. Big head enterprises are not the main force of SaaS, because these enterprises care about service, ability and future extension. The central customers are really interested in SaaS. They care about the function of products and the improvement of efficiency and value. However, these enterprises account for a small proportion of the components of Chinese enterprises, which plays an important roleAt this stage, a complete ecology has not yet been formed. Passionate team, persistence is the final victory the success of Jinshan office today is inseparable from the cultural atmosphere of Jinshan software group and Xiaomi. The core team of Jinshan office is full of passion and has the distinct innovative spirit of Internet enterprises. In the GGV team's impression, Geke is a passionate, persistent and calm person with strong adjustment ability and ability to drive and unite the team. He once said in an activity that Jinshan office represents the first standard enterprise, and SaaS service is listed on the science and technology innovation board. Before 2011, software has no future in China. Good companies and high-tech talents in China are all doing Internet to C business. Few people are doing to B. operating systems and databases are monopolized by companies like IBM in the United States. Standards, ecology and systems are their own, but Chinese companies can't. But in the second stage, that is, after 2011, Jinshan office found a new way to activate Chinese software. Jinshan office has become a new standard and new sample of Chinese Internet enterprise service software, and become the benchmark of SaaS enterprises in the future. Lei Jun, needless to say, is a star of Internet entrepreneurship for many times. He has rich experience in mobile Internet operations, and it was he who insisted on bringing Jinshan office and WPS to the road of mobile. Without the persistence of this passionate team, there will be no Shanghai in 2019Jinshan office, listed on the science and Technology Innovation Board of the stock exchange. In November 2019, Jinshan office officially landed on the science and technology innovation board if you are familiar with the history of Jinshan office, you should know that it is not easy for WPS, an old software
company, to survive in the competition and game with giant Microsoft, and what it is doing now is to ride the wind and waves, transform neatly and catch up with the tide of Internet. Such a transformation is easy to associate with the cloud transformation of adobe, Autodesk and other foreign software giants. as a member of the company, we can not only actively transform our business, but also feel its determination to "modernize" if we carefully observe the recent changes of the company. For example, users' feedback and complaints of this month are pasted inside and outside the elevator every month. According to the layout of users' problems, users' original text and use influence points, the problems existing in the product are listed at a glance. For example, companies are starting to push values. Values and definitions are pasted on the wall of the office and on the position where you can see the toilet compartment door when you look up. Even the evaluation of values is included in the performance indicators. - excerpt from the article "in Zhuhai" by a Jinshan employeeWhat is the experience of working in Haidian Internet company? 》 what opportunities are there for SaaS services in China? finally, Wu Chen Yao described the opportunity for GGV to invest in Jinshan office as "the opportunity to wait for it suddenly arrived". If you don't have confidence in to B and SaaS, you don't dare to make this bet. But even if you have some confidence in the future of the industry, you still need a little courage and gamble in 2013, and the facts have proved that you are right. A business that was originally estimated to be more than one billion US dollars finally brought amazing profits to GGV. Although the process is much longer than expected, it originally planned to withdraw in four or five years, and finally took investors eight years. The fragrance of plum blossom comes from the bitter cold. Jinshan office has proved the correctness of SaaS track behind the product with figures. As Wu chenyao said, "Chinese investors underestimate the imagination of SaaS market. The success of Jinshan office is a 'victory of long-term principle' and the result of team persistence." As an investor, Li Hongwei, managing partner of GGV Jiyuan capital, pays more attention to looking for investment opportunities and what opportunities there are in the future enterprise services. In this regard, Geke gave his own answer. first, the decoupling of science and technology in China has long occurred. The Silicon Valley model learned from the Silicon Valley of the United States five years ago can no longer be used in China. For example, as Zuckerberg said, mobile payment, a mobile Internet based business, is very popular in the United StatesWithout? foundation. In China, with the high-speed connection of the mobile Internet, high-tech companies with Chinese characteristics, such as mobile payment, wechat and sharing economy, have been created. This is the landmark event of the "separation" of the Sino US science and technology system. Therefore, he believes that in China's special environment, China's economic development, reform and opening up, the dividend of Internet population, and China's increased investment in 4G and 5g will create the world's leading mobile Internet companies such as Huawei, Toutiao and Xiaomi. In the future, China's high-tech environment will continue to walk out of its own unique path, and based on the 5g era, it will also create more different mobile Internet companies The ecological company. Second, artificial intelligence will become the core competitiveness of China in the future. Artificial intelligence is the essential demand. Only when China has massive user groups and data to provide personalized services for customers, artificial intelligence is the only way. In general, Gekko believes that 5g and AI are definitely not only a label or a technical term, but also an area that Chinese high-tech companies must win in the future. *GGV Jiyuan capital enterprise service group: GGV has been deeply engaged in enterprise service industry for 20 years. At present, there are 100 invested enterprises in 11 countries around the world, including 23 Unicorn enterprises and 15 listed enterprises. this article is copyrighted by Forbes Chinese network and cannot be reproduced without permission. For reprint, please contact wechat@forbeschina.com
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