Research On Strategic Transition Of Kemeng Software Company

With the rapid development of economy and technology in China and the proposal of Internet+concept by Premier Keqiang Li,new technologies such as cloud computing,big data analysis,block chains and artificial intelligence are widely used.Under these backgrounds,"Fintech"(Financial Technology)is coming into play and financial innovations based on information technology are extensively developed.In recent years,state-owned banks,joint-stock banks and city commercial banks have basically completed the construction of typical electronic channels such as online banking,mobile banking,wechat banking,electronic mall and online payment platform.Software companies which are responsible for the construction of electronic channel projects for banks are usually facing unfavorable factors such as vague project demands,rigorous acceptance process and higher quality standards.Software companies have to keenly grasp the customer's needs,make swift change on demands and provide consistent innovations in products and services.However,after seizing the market by price war and resource war,these software companies usually experience difficulties such as the huge increase in the cost of human resources,the decline of business service quality,the lagging of project acceptance and the decline of profit.If traditional software companies are only relying on internal reforms like standardizing project process and improving the productivities,the company budgets are difficult to meet the established profit requirements and not in line with the strategic goals of long-term development.In this thesis,Kemeng Software Company,a representative enterprise in the financial software industry,is studied.The development dilemma of project implementation and human outsourcing business model is becoming increasingly prominent in this company.The company is in the critical stage of how to better achieve standardized product export and platform operation and how to improve overall profitability.In order to cope with the impact of changes in emerging technology and industry,and to enhance the enterprise profit and core competitiveness with the steady development,a strategic transformation for Kemeng is imminent.Firstly,the bottleneck of Kemeng's current development and the reason for the strategic transformation needed is pointed out.The internal and external environments of Kemeng and the trend of industry competition are extensively studied by using PEST and SWOT analysis tool and Michael Porter's Five Forces Model.Secondly,the business opportunities and choices of the strategic transformation are discussed based on the data of Kemeng's annual reports in recent years and the analysis of advantages and disadvantages of its products.A strategic transformation plan including "market penetration of traditional banking business","diversification of Internet finance","joint operation of banks and enterprises" and "merger of resources and investments" is finally presented.At last,a series of measurements,such as optimizing the organizational structure of enterprise,cultivating corporate culture,reinforcing executive power,improving incentive mechanism,organizing a qualified team of scientists and technicians,increasing R&D input and enhancing the brand advantage,are showed to ensure the implementation of this transformation of strategy.In the meantime,as a typical representative of the financial software industry,the strategic transformation of Kemeng Software Company is a typical example and reference for other small and medium-sized software companies.