Study On The Innovative Strategic Of K Railway Equipment Enterprise

Starting from 1998, with the strengthened investment on the railway, the sunset industry has found its second development opportunity. The overseas and domestic supporting spare parts enterprises are entering China railway market one after another which heats up the competition of supporting spare parts market in China. To adapt to the design requirements for the new style high-speed railway, the technical specifications and technical parameters have been increased by series times which results in great challenges to the China supporting spare parts enterprises which are under the protection of both Chinese government's administrative license and technology license.The author selects the K enterprise which is typical in the railway industry as object of study, and analyses the advantages and disadvantages when facing the future challenges. The key issues are as follows,1. Non-sufficient internal innovation which is reflected in managerial innovation and technology innovation aspects.2. Limited sales experience and measures which results in ineffective marketing and sales.3. Obscure definition of responsibility allocation in the internal value chain which makes the managerial cost at high level.4. The last but not the least, the human resources reserve can not support the development needs of the enterprise in the future five or 10 year which is not quite optimistic. Also the management model the K enterprise is using does not fit well the attraction of creative professionals.On the basis of the key issues mentioned above, the author set the objectives for the upgrading of innovation and strategic transformation of K enterprise which are as follows,1. Transform from the labor-intensive manufacturing industry to service related manufacturing industry.2. Transform from pure technology innovation to comprehensive innovation at corporate level.The reasons are as follows,First of all, the targeted clients of K enterprise are mainly railroad bureau, division and project teams, the services provided will have direct impact on the profits of the K enterprise.Secondly, when there come the conflicts between the pure technology innovation and the top down management culture, it becomes very difficult to carry forward the pure technology innovation and the room for the innovation will be restricted.Thirdly, the transformation from labor-intensive manufacturing industry to service related manufacturing industry is to meet the future development needs of China railway industry. Since 1998, the China railway has increased the speed for six times on the premise of advanced progression of automation and information technology in railway equipment area which brings forward the new challenges to the China railway supporting spare parts enterprises. Hence, product innovation can stabilize and promote market share of K enterprise in the supporting spare parts market to cope with the China railway development needs. Last not the least, we can't separate the innovation from the talents and only the innovative environment can attract and retain the creative talents.As for the transformation of K enterprise, according to the actual situation in the K enterprise e. g. rigid organization structure, too many stakeholders who are working in each department with not well defined responsibilities etc., we need to shift from abrupt transition strategy to progressive strategic transformation (DMAIC) as major implementation strategy. DMAIC is the core concept in Six Sigma in which it aims to enhance the efficiency in value addition segments so as to promote the comprehensive competitiveness of the enterprise. Meanwhile, with regard to the implementation measures, we shall build up the link with the performance appraisal for the employees to be willing to innovate proactively in order to inspire the employees'spirits and ensure the progressive strategic transformation. One more thing we need to pay attention to is that according to the implementation requirements in the Six Sigma, there seems the foundation is not firm enough to support the innovative strategic transformation of K enterprise which are reflected in the following six aspects,1. The organization structure of K enterprise does not support the communication and coordination.2. The management style is not procedure and process oriented.3. The information technology is not well developed, therefore K enterprise can't monitor the business signs in a timely manner.4. The current human resources reserve does not support the carry-forward of the implementation strategy.5. Technology innovation is insufficient and the phenomenon of "work behind the closed doors" is produced everywhere in the K enterprise which can not provide technical instruction and support to the engineering, sale and marketing.6. The K enterprise is living in clover and does not have the sense of crisis.As the lack or inadequacy of the foundation as outlined above will impact the innovative strategic transformation of K enterprise in some degree, we need to build up the foundation to ensure the objective of the innovative strategic transformation is achieved. This is why the author separates the implementation plan into two phases.In the end, the author illustrates on the key issues in the innovative strategic transformation and major solutions to the key issues based on the innovative strategic transformation result of K enterprise to seek for the best practices in the enterprise management to present some implications for the upgrading of the corporate innovative stratey.