Will toB SaaS become the next "number industry" in Suzhou?

Will toB SaaS become the next "number industry" in Suzhou?

The 2020 epidemic has accelerated the process of digitalization from domestic to international, and the digital economy has also become a new strong variable for business operations. According to statistics from the China Academy of Information and Communications Technology, the overall scale of the digital economy has accounted for 36.2% of GDP in 2019. According to data from the National Cyberspace Administration of China: In 2020, the added value of the core capacity of the digital economy will account for 7.8% of GDP. The digital economy itself has become an important engine driving economic growth.

Against this background, how can Chinese CEOs calmly respond to changes in the business environment in the digital economy era and grasp the direction of business innovation? How should many IT people lead the development of enterprise informatization to digitalization? And promote their own changes.

On the afternoon of April 17, the first China Digital Economy and Business Innovation Seminar and IT Academy Annual Conference co-sponsored by IT Academy, Scene Academy and Zhongheng Zhongchuang was held in Suzhou Zhongheng Design Building with the theme of "Business Innovation ". More than 100 IT community experts from all over the country, IT school mentors, investors, scenario research scholars, business school teachers, corporate first-line CIOs, IT entrepreneurs, business brand coaches, association experts, government experts, etc. , roundtable discussions , Longgui Technology COO Jin Jian, Zero One Cloud CEO Wang Gang, Longgui Technology CEO Yin Liwei, 2175 Cloud CEO You Jiangang, Suzhou IT Circle Buffett Zhao Zijiang, "Will ToB SaaS become the next No. 1 industry in Suzhou?" Discuss on a topic.

Jin Jian: Since coming to Suzhou in 2014, the city of Suzhou still has a very comfortable impression of me, especially in terms of Internet and IT innovation. At that time, a small partner in a startup media commented on Suzhou as "there is no geek spirit". 7.years later, I think Suzhou's "geek spirit" is still not enough. A very important indicator is: Suzhou Developer Weekend Exchange Salon The frequency is still very low. I personally think that only when the number of technology salon exchanges comes up, can the core production factors of innovation flow better, and it is possible to burst out more and better innovative ideas, more innovative and entrepreneurial teams, and then it is possible for local leaders. To develop a great technology-driven company, these are some of my observations and reflections on Suzhou Internet technology innovation; recently, I am delighted to observe that there are many toB SaaS entrepreneurs around me who "understand both business and product technology". I think This is a trait that the founders of local software companies lack.

Why do you talk about such a topic? The general background is: the recent news broadcast lasts six minutes to focus on the "Digital Transformation of Suzhou Manufacturing Industry". This year, the Suzhou Municipal Government also announced a major strategy for the "digital economy". The economic volume of Suzhou has exceeded 2 trillion. However, once mentioning Suzhou and even Jiangsu, one would say that "the two legs are not even". Among them, the manufacturing industry has long legs and the service industry has short legs. Indeed, taking last year s data as an example, Suzhou ranks among the top 3 in the country when it comes to industry or manufacturing; but when it comes to the service industry, it is relatively close. According to relevant statistics: 2020 Suzhou software business accounted for the total volume: 8.56%; in addition, it is well known that the SaaS field is a high-margin (80+%) field, comparable to profiteering industries such as liquor, tobacco, medicine, etc., and has become a domestic and foreign technology industry. Many entrepreneurs and VC capital are ready to move due to the hot spots of the Internet, and Internet giants continue to invest heavily in their deployment. However, there is still a huge gap in the domestic toB field compared to the overseas toB market, so there is still huge potential space.

Today, I will chat with all entrepreneurs about the status quo and future of toB in Suzhou, and discuss together: Will toB SaaS become the next "number industry" in Suzhou? Due to the limited time, one of our forms is, first, the guests make a simple self-introduction and respond to each guest s personality question, and the third is some thoughts on this topic: how to digitize "long legs" and how to make up With short legs, what kind of path will the Suzhou toB track take?

Jin Jian: Please follow the order of the guests. As a good friend with the largest customer base on the stage and on the front line of the market, Mr. Wang, the founder of Zero One Cloud, shared his thoughts: What is the secret of 400% sales growth? What changes and insights will customers have in their digitalization process, independent software and SaaS software procurement this year? And thinking about the topic of discussion (will toB SaaS become the next "number industry" in Suzhou?)

Wang Gang: I am Wang Gang from Zero One Cloud. The current industry is in the field of cloud computing, mainly public cloud. I have been doing it for about two and a half years. In less than three years, I have served about a thousand companies, mainly It is a large-scale Suzhou customer, currently benefiting from the explosive growth of our cloud industry. In the process of digitization, several points were slowly discovered. The No. 1 industry is a bit of a big issue for me. I talk about several phenomena. Currently in the process of approaching my customers, I found that

The first point: the informatization of ToB companies is still relatively weak.

The second point is where the weakness lies. The main weakness is consciousness. The manufacturing industry with an output value of less than 100 million pays more attention to the development of the business. This is an urgent problem to be solved. 3.to five billion to two to three billion, speeding up the process of informatization. The bosses of this part include their CIOs. In fact, we have also recently contacted. A boss invited us to talk about digital transformation and their informatization system. Already basically, the biggest problem is how to get through the digitalization. It is very difficult to overthrow all of us and become SaaS. It also depends on the scene. Some scenes can be SaaSized. For example, some light-weight and standardized scenes, but some complex scenes are still difficult to SaaS.

Jin Jian: Mr. You's original intention and market insight for HR SaaS, how is the current status of HR SaaS procurement in the Suzhou market? How to locate the target customer industry? And thinking about the topic of discussion (will toB SaaS become the next "number industry" in Suzhou?)

You Jiangang: First of all, I am honored today. Thank you IT Academy and Zhongheng Design. The Scene Academy gave me an opportunity to come here to exchange and share. I came from IT and worked as a programmer for 6 years after graduation. I started a business for 18 years and worked. For 14 years, after being a programmer, I became a consultant and manager of an information management system. I am a programmer across HR and IT. I have a technical background and understand business. I have 8 years of in-depth communication experience as an HR. I ve always wanted to start a business since I was a kid. I watched a TV series when I was about nine years old. So I have wanted to start a business since I was a child. I have done Taobao and so on. I should choose what I am best at. I understand both IT technology and HR business. HR SaaS is my best opportunity.

I always think that Suzhou is likely to be the second Hangzhou. Hangzhou emerged as a rookie in the Internet industry twenty years ago. It was not so good before. ToB SaaS may be an opportunity for overtaking in Suzhou corners, and may become the second. The dark horse of the "digital economy"! In terms of the reasons, I think there are mostly customers, and there are 30,000 companies with more than 300 employees. In addition, Suzhou is located close to Shanghai and is a new frontier. Together with its GDP, it is the country's largest industrial city.

The company is a HRSaaS cloud platform, and its customers are mainly aimed at medium-sized and large enterprises, because small and medium-sized enterprises can't do DingTalk, and they can't do corporate WeChat. I have seen what the best system in the world is. Then I know HR and IT. This experience can be said that no one in HR SaaS has my background. I have a background in sales and marketing, and I am the best in domestic advantage. The product manager of, used to be the market leader, and there are many competitors in each field. In the future, their core competitiveness is the product, but the biggest disadvantage of the product is that it may not survive. If you only make products and not market, you may die. Last year, we established a cooperation with a well-known retail company in Suzhou to make up for the shortcomings in the market. Mainly capture medium-sized enterprises with 300 employees. In the future, they will capture large-scale enterprises. The business model is to collect annual fees. In the future, it may be toB and then toC. In the future, it may make money for data. By building a data platform for each company, a decision can be made. That's almost it.

Jin Jian: Next, I will partner with Renwei to share some of his thoughts: Why do you transition from a very profitable game industry to a bitter, tired and slow toB enterprise service market? It is the consensus of the industry that unified identity authentication is an important cornerstone of informatization. However, many capitals have reported that the IAM identity authentication industry is a very red sea market and a very thin market. Why choose this field? Why choose open source for core technology? And thinking about the topic of discussion (will toB SaaS become the next "number industry" in Suzhou?)

Yin Liwei: First introduce myself. My name is Yin Liwei. I am the CEO of Longgui Technology. I started a business after graduating from university. I was the co-founder of Playcrab Technology and made mobile games. My main responsibility in this company: software engineering efficiency. If you know If the game is relatively complex in the field of software engineering, there are a lot of cross-domain work types. The company was merged by a listed company in 13 years, and then the company expanded rapidly. In this process, the company faces many information problems. The HR office management method is still very difficult. Originally, I have been thinking about how to solve this kind of problem. It is similar to what everyone here is thinking. After the gambling ended in 18 years, I became a free man and came out to start Longgui. I think the opportunity for technological development is Docker, Containerization technologies such as K8s are relatively mature at this stage. At that time, we felt that there was such a direction. At that time, we felt that the toB enterprise service field would usher in huge innovations, which may be the beginning of a real technological revolution. I am optimistic about this field and established Longgui Technology Co., Ltd. The two words "Longgui" are like "Huawei", meaning: the meaning of the great revival of the Chinese nation. Maybe everyone is easier to remember.

My thoughts on the SaaS and ToB industries are that the essence of SaaS is still software, which is no different from the essence of traditional software. It's just that the business model changes, from selling to renting, and the actual problems encountered are still the same . The essence of software is the change of people's thinking, the extension of managers' thinking, and a carrier. When expressed through software, they encounter a big problem: the needs of enterprises are diverse, and different industries have different scales and different needs. Yes, large enterprises often adopt customization, and it should be too costly for small and medium-sized enterprises not to adopt customization. Longgui's original intention was to reduce a series of costs of IT implementation.

In the process, I met Jin Jian and discovered Suzhou, a treasured land. I have been in Beijing before. The old city is relatively fixed and the business structure is relatively mature. It is difficult for start-ups to enter the structure. A large number of enterprises in Suzhou are facing the so-called digital transformation. There is an opportunity, and there is a tendency for latecomers to come first, and new technologies and new ideas are being better promoted. This is the reason to come to Suzhou.

Will SaaS become the general direction in Suzhou? It depends on the efforts of all of you. SaaS is to rent software through a subscription mechanism. The basic business logic is that it is better to buy than to buy, and to rent than to buy. With this development, renting is the cheapest way for CIOs to implement digital transformation. Customized reality and softwareization itself are extremely conflicting logics. SaaS vendors face great challenges: how to maintain a high degree of openness. Digital transformation is definitely not possible for a few companies, but for the entire industry to complete a more detailed division of labor. , In order to complete more effective changes.

Our first entry point is that the product is IDaaS, which is unified certification . Compared with the very basic things of digital transformation, the past enterprises have many IT systems. Many old systems and new systems. The identity interoperability between systems is a problem. Huge puzzle.

Our own business model is taking the open source route. Why do we take open source? In fact, we hope that we can become an open source IDaaS vendor. The identity is very sensitive. Customers don t have to worry about being tied to a certain vendor when using it. stand by!

Jin Jian: Next, I will invite Mr. Zhao, Buffett in the IT circle, who have more than 20 years of experience in the industry, spanning Party A, and the primary and secondary markets. How do you view toB SaaS? What are the trend insights?

Zhao Zijiang: Because the last time is relatively tight, I will introduce myself first. I have been in IT for 20 years, a foreign company for 10 years, and a private company for 10 years. Two billion plates. My way of doing things is to do the secondary market as the primary market and the primary market as the entrepreneurial project.

This group of IT people here are the front wave. Everyone will be very anxious. What should I do when I leave the platform in the future? Some people are on big platforms, some start companies, some start businesses, and most of them fail. So what should I do in the future? The second question is, where are the opportunities in the future? CIOs use SaaS to explore the sub-fields they are familiar with. Are there any opportunities in the future?

Because I also want to discover industry SaaS. I mean there should be a specific model. I am here today to be considered a spoiler, and I hope you can find what you want in the process of discussion. The original intention of toB SaaS is to be a lightweight company . In the beginning, some angel investments were not bad, but as you develop later, you will find that they are very new at the beginning, but financing is getting harder and harder. This is how everyone chooses a project later. They may be in the pit, or they may be going up.

I hope you can make it clear today. Who are the customers? Customer acquisition path? The time has come, the real toB SaaS spring is here! But we have to discuss and explore a path. There is no opportunity for informatization. Don't waste time on informatization. Digital transformation combined with subdivided industry scenarios may contain many SaaS entrepreneurial opportunities.

Jin Jian: Very good, Mr. Zhao has deepened this theme here. Our topic enters the second stage, some discussion of methodology.

Zhao Zijiang: I heard about open source just now, right? I think it's great. Ask a question, Mr. You, is your company open source or closed source?

You Jiangang: Our company is closed source.

Zhao Zijiang: It arouses everyone's thinking, is it open source or closed source? Because time is very limited, I will not introduce them one by one. Every company has its own model. Well, there are a few things. I have heard about yours. I don't have many problems that I want to challenge. I think the points he found and the points that everyone pays attention to are very good. IDaaS is SSO, an extension of single sign-on. Single sign-on is actually a security issue within the enterprise. I am open source and I am empowered to give you. I think this is reliable. The second one I want to ask is that the user is a terminal company. The customer, or an intermediate third-party service provider to do it?

Yin Liwei: Yes, we will not target end enterprise customers for a long time, but will empower integrators, SaaS vendors and other partners to have their own IDaaS product lines and service capabilities, because we believe that we are in the IAM/IDaaS segment The end result is: no company can achieve full-scene coverage, even okta with nearly 40 billion US dollars. Because every industry, every level of the software supply chain, and every scenario has its own unique "cognition", we open source an IDaaS core, let it evolve from the bottom up, and there will be suitable partners to participate In the open source ecosystem, solve the problems of specific industries/scenarios!

Zhao Zijiang: Good! Then there is a problem to be solved. The problem of channel application empowerment is whether your service provider has this ability? You should also consider the second: whether your service provider's ability is greater than or less than you, pay special attention to it. 3. open source platforms are you partially open source or all open source, do you distinguish between the community version and the enterprise version?

This brother (Mr. You), I want to tell you that I just heard a few points. I was very anxious when I heard these things. Your subject is that I have done HR. I am an entrepreneur. I will teach you. In a word, I am a repeated entrepreneur. The second thing you talked about, you have done HR for many years, you are very experienced, and the second key word I heard, my product is the most complete and the best. The third thing, the product is the best, this is what I heard. A company in Suzhou is looking for you. Why are they looking for you? Who are your customers?

You Jiangang: First of all, I am starting a business for the first time, and I am not a repeated entrepreneur!

Zhao Zijiang: Okay, I understand. You must find a real business pain point in the process of digital transformation. Only at this time will you be allowed to make some attempts and some scenarios. Just like when you do HR personnel, the end user is an enterprise, but the more complete and richer the product is, the more difficult it is to enable it. Either directly provide services or entrust a third party. China is also a relationship sales. Do you have sales? ability. Why would a human resources company look for you? If your product is very good, you can change the mode to play, I think it is possible, but it will cost a lot of money. This style of play is fierce. Currently defined as software service outsourcing. To transform, just make a small plug-in, don't make it too heavy.

Wang Gang: Mr. Zhao, I will respond to the points you just mentioned. Mr. You must have a firm positioning. In terms of entrepreneurship, I have been in business for nine years. First of all, the market scale is not large enough. At the beginning of the business, he must focus on what he is targeting. He has his own focus. The success of a business depends on technology, market, and capital. Entrepreneurship is a team business, not a person s business. The founder has his own shortcomings, and how to make up for the shortcomings is the most important thing. This is my opinion!

Jin Jian: In Mr. You, I actually saw that: I understand both business and technology! Product power is a trait that the founders of many software companies in Suzhou lack. There are a large number of outsourcing companies that "want to die, not to survive," but few can make products well and even fewer can replicate them on a large scale.

You Jiangang: First of all, HR SaaS is a general industry, we only focus on a certain industry. I have full power to decide the company, why I cooperate with others, first of all, the control is in my hands, he has a circle of intelligent manufacturing, I want to do a good job in this industry, and then I will do other industries. It is impossible for me to serve this company without it. I am a more sentimental person. Regarding our products, to be honest, I know that starting a business is not so easy. Now there are a lot of SaaS, but we still have opportunities. Our advantage lies in the product. The founder of a company determines the product's genes.

Zhao Zijiang: I want to provide everyone with several considerations. Hope that everyone finds their own track, caters to the capital for development or keeps their feelings and dreams? I am very grateful to Zhongheng Group for this platform. I see that Suzhou must have a model for the development of toB SaaS. The model of Zhongheng Zhongchuang is a very good carrier to promote the development of toB SaaS. I am very excited. The new generation of CIOs should not play digitally from the perspective of information. If you want to win or start a business, you have to find the point of digitalization. You must sink into the details, and you can do it well, because no one is better than you. Understand business scenarios.

In addition, the spring of low-code platforms is here, which will be good for your entrepreneurship and SaaS. The biomedical digital industry will definitely produce a good toB SaaS. But how to do it? We want to work hard together to explore, what we are doing today is a process that is absolutely conducive to toB SaaS. Brothers, let's become stronger together!

Yin Liwei: As an entrepreneur, some project capital is not very promising, it is normal! But it's also business.

Zhao Zijiang: So sometimes, many people can't distinguish between career and business.

Yin Liwei: My view on the trend is that in the future, the division of labor will become more and more detailed. IT needs many small companies to fully support the entire industrial ecology. It requires everyone present to work together.

Jin Jian: I think maybe someday in the future, five years later, ten years later, the toB SaaS industry in Suzhou will develop. It may be related to our meeting today. The bio-pharmaceutical industry in the park is said to have held a meeting and it has become the "No. 1 industry" in the park today. This kind of thing cannot be planned, but there is such a possibility, not to say that there is no such thing. It is a co-creation and requires the participation of everyone present! Finally, everyone here, who wants to ask questions? Just one chance, let's end.

Q&A: Open to ask questions

Mr. Li: Is the entrepreneurial business model planned in the early stage, or is it a follow-up business iteration and evolution? Which model is more beneficial?

Zhao Zijiang: They are not actually on the same channel, because I have worked in a foreign company, and the foreign company uses a fixed position to shoot a fixed target, and I may not understand this matter. Responsible to your boss, your boss also works part-time, your boss's boss also works part-time, everyone actually has a tacit understanding. State-owned enterprises use fixed positions to play moving targets. The bosses are changed, the leaders are changed, and everything has to be changed. So, if you have any questions, please pick out my one. Is it business-driven or IT-driven? I am fixed-positioned to play mobile. Target, I followed the target, of course I was driven by business. What do private enterprises do? To solve how to survive in private enterprises, the first words of private enterprises come out, IT-driven, why? Because you are shooting moving targets in sports. If you want to do toB SaaS, you have to do two parts. The first step is to find the extension of interest and digitalization around the supply chain.

The second is the best practice. The best practice was put forward in the information age . When digitizing, you must have a direction in your mind. Plan in stages to find the points of trial and error. Digitization allows you to try and error, and informatization does not allow you to try and error , because how can standardization make you mistakes, digitization gives you the opportunity for trial and error.

In fact, if you really do a good job in IT, it is not a business at all. 1. consider yourself as an investor. So every time I discuss customers with you, a CIO will not be able to speculate in stocks or do the secondary market. He has his own problems. You do not create value for the company at all. You don t even evaluate your company I know, you don t care about him, you just care about yourself. I think a CIO should first go to the secondary market to speculate in stocks.

Wang Gang: Let me answer one question first. I personally think that it is not necessarily correct. The first question, such as Huawei, Ali, and Tencent, must not know the current situation when they started their business. The second question is that companies should solve the survival problem first. , I think it is to solve the problem of survival first. I often share my experience: ideals can determine how far you go, but real business can determine how long you go!

The business is evolving, whether it is a grassroots entrepreneurship or a "golden key" entrepreneurship. Grassroots entrepreneurship is to solve the problem of survival first. Golden Key entrepreneurship follows the path, just to say where my ultimate goal is. In this process, continuous evolution, continuous evolution, can hover in this goal. Because I have been starting a business for a long time, these are probably my insights.

Yin Liwei: In my personal opinion , it is actually the founder's problem. It depends on the founder's deep understanding of industry problems. Whether the entire industry sees opportunities, one is Tao and the other is skill. It is difficult for a company to turn around if there is a problem at the Tao level. Understanding is determined by the world view, and the technique is constantly exploring and challenging. These are two levels. If the problem is thoroughly studied and the proposed solution is sharp enough, there will be a sense of pushing back when the business is launched!

You Jiangang: Regarding Mr. Wang s question of whether he should survive first or his husband , I have actually experienced this more personally. I was relatively rich in the beginning and worked hard to make products. Well, in the end, the product is almost out of money and can't be sold, so you have to survive first.

Regarding the product, our company has a dream, to do it as a business, even if it faces great difficulties. Entrepreneurship is very difficult now. It used to be ninety-nine deaths, and now it is ninety-nine deaths. If you don t realize this, then you are likely to fail. If you don t have the courage, then you must fail. For our company, it is now doing SaaS. We think that there are not many products that do well in the HR SaaS field. It is determined by the genes of the founder. HR SaaS entrepreneurship is difficult, but we still have a chance to survive.

Jin Jian: Today s discussion is very good. Because of time constraints, our discussion today will end here. Let me make a final summary: Borrowing this picture, it reflects the history of industrial changes in the United States over the past 15 years. , The industrial structure has undergone earth-shaking changes. The current status of the Greater Suzhou market: the manufacturing industry has long legs and the service industry has short legs. From a development perspective in the next 10+ years, I think it is still possible for toB SaaS to become the fastest growing field of output value. Let us work together: to make Suzhou's long legs longer and short legs thicker, we need everyone here to work together.