Shulou(Shulou.com)11/24 Report--

On October 12th, the Heisi Future Financial people Conference and Autumn Product Conference with the theme of "province" was officially held in Hangzhou. 400enterprise CEO, CFO, CIO and mainstream media attended the meeting. At this press conference, Hesi founder and CEO Ma Chunquan delivered a keynote speech on "the second time to start a business and save words".

Ma Chunquan, founder and CEO of Hesi

In Ma Chunquan's view, the rapid growth of enterprises has almost disappeared, which precisely led to the inevitable arrival of the second venture. " Cash flow is not only a new survival strategy, but also a new valuation logic. As Buffett said, income is virtual, cash is real, and only cash can keep the company alive. After we bid farewell to the macro changes of rapid growth, we must also change our concept from growth expansion to the strategic track of cash as king. As an agile financial revenue and expenditure management platform, Hesi helps enterprises to achieve the "convenience" of the whole process optimization, the "worry-saving" of breaking up into parts and the "money-saving" of full participation through object accounting.

The following is a transcript of Ma Chunquan's live speech (simplified):

01

Provincial ng is today, provincial ng is tomorrow

Recently, the word "second entrepreneurship" is often mentioned in the business world. The first company to mention a second venture is Huawei. As early as 1998, Ren Zhengfei led Huawei to start a second venture, and more than once. So how to define the "second entrepreneurship", and why do enterprises move towards the second entrepreneurship?

I see a more accurate explanation is the internal change process in order to seek further development after the rapid growth of the enterprise. In essence, it is a survival change caused by a profound sense of crisis.

Today, we see that the global economy is experiencing great turbulence, rapid growth is bound to become a thing of the past, and the sense of crisis is growing with each passing day.

In such an environment, save money to spend the winter, introspection and self-study for tomorrow, this is the theme of today's conference, but also the theme of the second venture that every enterprise is experiencing.

The statistics have given us a real feeling: from January to May, the total profits of industrial enterprises above the national scale reached 2.66889 trillion yuan, down 18.8% from the same period last year; among the industrial enterprises above scale, the total profits of state-owned holding enterprises were 962.51 billion yuan, down 17.7% from the same period last year; and the total profits of joint-stock enterprises were 1.95781 trillion yuan, down 20.4%. The total profits of foreign investors and Hong Kong, Macao and Taiwan investment enterprises totaled 626.75 billion yuan, down 13.6 percent, while those of private enterprises totaled 683.78 billion yuan, down 21.3 percent. From January to May, the operating income of industrial enterprises above scale reached 51.39 trillion yuan, up 0.1 percent over the same period last year; the operating cost was 43.83 trillion yuan, up 1.2 percent; and the profit margin of operating income was 5.19 percent, down 1.21 percentage points from the same period last year.

The rapid growth of enterprises has almost disappeared, which leads to the inevitability of the arrival of the second venture today, and the arrival of large-scale and batch.

In the face of economic austerity, it is of course necessary to save. For every additional dollar of income, an enterprise does not necessarily have a profit of one yuan. But every dollar saved is a profit of one dollar. Buffett also mentioned: income is virtual, cash is real, only cash can let the enterprise survive. Therefore, the cash flow strategy with "province" as the core has become the current survival strategy of enterprises.

Not only here, we also realize that cash flow has also become the new valuation logic of enterprises. There has always been an idea in Mr. Buffett's investment philosophy: look at operating cash flow. More and more projects are adjusting their valuations, and the underlying logic is the discounted cash flow method. After bidding farewell to the macro changes of rapid growth, enterprises must also change their concept from growth expansion to the strategic track of cash as king.

Economical ng is a compulsory course today, while changing ng is tomorrow's paving stone.

The second start-up is to reconstruct the organization and realize the three provinces-- saving money, must be participated by all; saving trouble, must optimize the whole process; and don't worry, it must be broken into parts. As an agile financial revenue and expenditure management platform, Hesi helps enterprises to save money, trouble and worry through object accounting.

02

Save money and need full participation

Is it really easy to save money? Let's take travel in the most important sector of cost control expenditure as an example. According to the 2023 fee Control and Travel Analysis report, from January to July 2023, total travel consumption increased by 220.11% year on year, 95.49% month-on-month (June 1, 22-December 31, 22), 160.40% year-on-year in terms of transaction volume, and 61.36% month-on-month (June 1, 22-December 31, 22). We see that the increase in the amount of consumption is also significantly higher than that in the unit of consumption, reflecting a significant increase in the amount of single consumption. That is to say, both the volume and the price rise, but the unit price increases faster than the unit volume.

In addition, in the enterprises that have implemented cost control, the number of over-standard orders for travel has increased significantly, reaching 198% compared with the same period last year. Combining these two points, we can see that the customer unit price of corporate travel consumption will inevitably rise this year, and corporate travel consumption will seriously exceed the standard. It is not that enterprises do not want to control, but in the overall air tickets and hotels rising environment, has been unable to really effectively control the cost of travel.

Therefore, saving money can not only rely on control and external supply chain optimization, but also let the whole staff participate together, willing to participate, and work together to reduce travel costs.

03

Save trouble and optimize the whole process

The process optimization of enterprises is one of the eternal themes of reducing cost and increasing efficiency. Ms. Fu Junhua, CFO of Junlian Capital, has a very unique point of view: elimination is more important than improvement. I fully agree with this point of view. In the era of digital surging, widespread popularity, in the ascendant, the rapid growth of the world, are we still patching the process, in the clumsy financial management level to do addition. Ex post reimbursement is still the choice of most enterprises at present, and it still takes up a lot of management costs. If the enterprise can build a digital consumption platform in which all employees participate in saving money, then we can completely kill the ex post reimbursement.

According to the statistics and research of Huawei Cloud Travel, less than 10% of enterprises have achieved no reimbursement at L3 level, and even the vast majority of these enterprises are still reconciling their accounts with suppliers manually, which is an essential obstacle to the low proportion of L3 non-reimbursement. The employees are satisfied, but the financial and administrative staff are exhausted.

The popularity of electronic invoices has risen sharply, and the general ticket has reached more than 50%, but how should enterprises store paper invoices? I see that the vast majority of enterprises are still using printers and paper day and night to do the useless work of waste paper and trouble. The number of electric tickets, especially the special tickets for digital electricity, have been opened on a pilot basis in dozens of cities, but within the enterprise, applications are still submitted by business personnel, waiting for financial invoices. These processes that should no longer exist consume the time and cost of the enterprise day after day.

Only by optimizing the whole process, can we squeeze the water to the maximum, reduce the cost and improve the efficiency exponentially.

04

Don't worry, break it up into parts

Since the rise in accommodation prices is inevitable, how to get employees to stay in cheaper hotels?

In 2010, when Mr. Kazuo Inamori visited China, I was shocked by a short story. Since the bankruptcy of JAL in 2009 and Kazuo Inamori took over the reconstruction, he has taken the Shinkansen economic seat (designated seat) every week to commute between his home in Kyoto and JAL headquarters in Tokyo. However, on this visit to China, I flew first class. The reporter asked: why? Kazuo Inamori replied: the weekly commute is reimbursed by JAL. Based on the principle of minimizing expenses, he chooses to be an economy seat, to visit China is an invited private visit, and to take a JAL flight is to be reimbursed by an inviter, from the point of view of sales maximization. Choose first class.

From the perspective of business operators, it is obvious that sales maximization and cost minimization should be taken for granted. However, if every employee has this kind of thinking and behavior, then everyone must be an operator, and the profits of the enterprise must be related to their personal interests. In short, it is the equality of responsibilities and rights, so that we can share the same desires. Companies want employees to take the initiative to book cheaper hotels, so that the money saved is reflected in the income of the employees.

However, the scope of establishing a link between profits and individuals should not be too large. If a 10-person company formulates a profit distribution mechanism, it is easy to arouse everyone's enthusiasm. However, companies with 1000 people and 10000 people, even if they have established a set of mechanisms, are still unable to effectively mobilize their positivity. on the contrary, they have formed the effect of a "big pot of rice". This is because the relationship between the accounting profit and the individual is not equal, and no matter how hard the individual works, it will only affect 1/1000 or 1/10000. Under the mode of operation of large organizations, it is easy to go through several games, everyone can not see the reward of hard work and harvest, and everyone lies flat.

Therefore, we must reduce the profit accounting unit of the organization to form a more direct relationship between the organization and individuals. The best way is to account for individual profits and enjoy the value you have created. So that every task can be measured and distributed-- one person in one, gathered and dispersed according to the order-- this is also the self-management system advocated by Haier, that is, "everyone is the boss."

Of course, enterprises can not have countless bosses, but we can create countless small organizations within the company, so that as many employees as possible become the "bosses" of each small organization. Build a mechanism to break it up into parts, so that every employee can save money and earn money hard, and the boss can really worry about it.

05

Object accounting, a tool for measuring and distributing the value of platform organizations

The direction of organizational change in the second venture is to establish an organizational accounting incentive system with smaller scale, greater authorization and directly linked to distribution. I sum it up as: fractal, decentralization, sharing. Every action and every individual should be able to plug and play efficiently within the organization like a U disk to achieve the creation of value and the return of income. This makes the company inevitably become a platform organization that supports every person or thing with atomic granularity to achieve the requirements of plug and play and distribution on the company's platform.

With the development of the Internet, the value measurement and distribution of platform organizations has gradually become an extremely thorny matter. The granularity of accounting is so fine that each atomic accounting has to be constructed into a specific structure in order to distribute benefits in this structure. When calculating the atomic income and expenditure profit and loss, we will use event accounting for accounting. When the information after accounting is combined and distributed with a certain organizational structure, we will use the method of responsibility accounting.

These two accounting tools are intertwined and combined with each other in order to realize the accounting and distribution of platform organizations. Whether it is an event or a responsibility center, it can be defined as an "object". We study the income and expenditure profit and loss and value creation of this "object" through accounting methods. "object" is the main body of the research on abstract modeling of the real world in object-oriented analysis. In the field of accounting, we think of the subject to be studied as "object", study its income and expenditure profit and loss, and study its value creation. So we construct a brand-new management accounting theory-object accounting under the encouragement and guidance of Professor Xu Dingbo and Professor Yang Zhounan.

Object accounting is a method to construct an intelligent accounting platform by drawing lessons from the concept of abstracting the physical world with the method of object-oriented analysis. Through the objective description and analysis of the enterprise economic activities and the value movement of the responsibility center, the complex economic activities are described by fine-grained decomposition and flexible combination, so as to realize the fine management of the enterprise value movement. improve the economic benefits of enterprises.

Today, the Future Financial personnel Research Institute, the Intelligent Finance Joint Laboratory of Peking University and Hesi jointly issued the white paper "Research on object Accounting under the New AI Paradigm" and put forward the theory of "object Accounting" for the first time. Under the guidance of the object accounting theory, we study the profit-making subject-the income and expenditure profit and loss of each action, behavior and transaction, and then summarize it to each responsibility center to form a summary income and expenditure profit and loss. According to this theory, we will build a platform for revenue and expenditure management in a digital way, and give it to every operator in the organizational decentralization system, so that their decision-making and management are fully supported by data and digitalization. to become the future financial person to create the second venture of the enterprise.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.