The Innovation Practices And Exploration Of "HD" Grid Company

Power industry is one of the most important foundational industries,and also plays a close relationship with the economy. For thecharacteristics of “scale economy”,“capital-intensive”,“naturalmonopoly”,“network economy” and so on, the government puttedforward the policy of “integrative monopoly” and “vertical regulation”for a long time. In China, from the end of last century, some importantreform has been taken by the government, thus than, the chain of powerindustry and the value chain has been reconstructed.HD is the largest regional power grid company in China. Its gridcovers the East China area, including Yangzi delta, which is the mostflourished area of the country. In new century, HD is faced with manynew important instances or matters, such as the durative increasing ofpower demand, the rapid expanding of grid scale, especially thereforming of power industry, the foundation of power market and so on,these great changes also has brought about many new changes,bottlenecks or challenges as following, maintaining the safety of powergrid, improving the company operation, servicing the society, etc.. It alsomeans that some important measures should be taken to solve theseproblems. Joseph Alois Schumpeter putted forward the theory of Innovation,he mentioned that,“Innovation” was the most basically characteristics ormotivation in the development process of enterprises and society. Today,the theory also has played a very important role in promoting thedevelopment of enterprises and countries.By using some important theories or tools, such as the SWOT,innovation theory, value chain theory, industry chain theory and so on,this thesis analyzed the numerous of great internal and external changesor challenges HD faced with, especially the new situation of powerindustry reformation, high increasing speed of district economy andpower demand, after that, this thesis discussed the important theme, thatas a typical “natural monopoly” grid company, HD implementedcoordinated innovations, which including developing transmissiontechnology, performing the innovation of modern management, fulfillingthe social duty of a utility, putting forward some new services for theindustry and the society. With these great efforts, HD has collectedseveral great results, consisting of the HD itself, helping the HD withpartners, customers and the society.By means of such analysis and research above, this thesis reflectedand revealed the facts, that some state-owned enterprises especially some“natural monopoly” grid company, has been backing on innovation, braveand good at implementing innovation. This thesis also believed that, byfulfilling innovation, there would be more and more state ownedenterprise, which could be benefit from holding the developingopportunities, creating or catching the advantages, and also would devotecontribution to build “creative nation” for the country.