Taiwan’s development of its own brand, represented by Acer, HTC, etc., has two major difficulties. The first one is “to know a lot about products and to know too little about customersâ€; the second is that when the trend shifts, Taiwanese companies cannot Timely response, thus missing business opportunities.
Cloud computing is not a panacea, and Acer’s path to transformation is more difficult than the previous two.
Acer, the world's fourth-largest PC maker, once climbed to the top of the Internet with its netbook, and was immediately dragged into the “danger zoneâ€.
Today, Acer is in the midst of a difficult transition in the industry. When the PC era declined, the entire Taiwanese technology industry fell into a downward trend, and Acer's founder Shi Zhenrong once again made a comeback, trying to recreate Acer for the third time.
Shi Zhenrong, who is over 70 years old, is looking for cloud computing that looks like a panacea. However, before that, Dell and Hewlett-Packard chose this direction in the same way, but they did not achieve much. What does Shi Zhenrong have to return to the sky?
Third reengineering
Excellent engineers, traditional Chinese businessmen, avant-garde managers and international entrepreneurs have a lofty ambition and a broad vision. This is the evaluation of Shi Zhenrong by the US Business Week.
In the third quarter of last year, Acer's net loss reached NT$13.12 billion (US$446 million). After the financial report was released, the company's former CEO Wang Zhentang and former president Weng Jianren resigned and Shi Zhenrong re-entered. Last month, Acer appointed Chen Junsheng, former sales director of TSMC, as the new CEO.
Can Shi Zhenrong be able to revive Acer again? The answer may not be optimistic.
According to Acer’s fourth-quarter earnings report released a few days ago, its revenue was NT$86.70 billion (US$2.869 billion), down 5.9% year-on-year; net loss was NT$7.63 billion (US$254 million) ), while the same period last year was a net loss of NT$ 3.37 billion (approximately US$ 113 million).
IT observer Jia Jinghua pointed out that the last time Acer had a crisis, it was Shi Zhenrong who insisted that Italian Lanqi became the CEO of the company, and brought Acer out of the predicament through innovative marketing methods. In the past two years, the PC market has been shrinking, and the tablet and smart phone market has prospered. However, Acer has been holding the big tree of PC, and the road to transformation is quite difficult.
In the two transformations to Acer, Shi Zhenrong once simplified the Acer business into a brand and manufacturing business; the other time, let Acer focus on the brand, and the two strategies promoted the rapid development of Acer. It is worth noting that the background of the previous two major re-engineering is: the company's internal strategy is problematic or the overall economy is not booming, but this time it is facing the structural transformation of the PC industry. That is, the profit center or source of profit needs to be completely changed.
After a two-day meeting and discussions with nearly 40 senior executives, Shi Zhenrong reached a basic vision of change direction: Acer will be committed to let users build their own cloud (Build Your Own Cloud) and transform from hardware company to Hardware + software + services; the company will revitalize through the transition to software.
According to the assumption, in the future, Acer will not only sell hardware, but also add software and services to enable consumers to build their own clouds on their own machines, such as music clouds, photo clouds and other categories of clouds. These self-built clouds are built on an open platform. Acer Open Platform has three features: reliable, easy to use and enjoyable, and more and more services.
There are four core roles in the cloud computing ecosystem: owners, builders, operators, and users. Users refer to the end users of various cloud computing services; builders refer to vendors who build cloud environments, including vendors that provide various basic resources, solutions, and services, such as software and hardware products, information security, payments, network services, etc. , also includes the integrator of the cloud environment; the owner refers to the owner of various IT assets (including hardware assets and software assets) of the cloud computing service; the operator refers to the manufacturer responsible for the later operation, maintenance and management of the cloud computing environment and services. . In most cases, the owner and operator may be the same vendor.
"For traditional IT companies, when entering cloud computing, it is necessary to consider the role that short-term and medium- and long-term enterprises want to play in the cloud computing ecosystem." A Chinese engineer who served the Amazon cloud computing business to "First Financial According to the reporter of the Daily News, at present, cloud computing services are mainly divided into two areas: public cloud and personal cloud. Acer prefers to make a difference in the personal cloud field. In addition to Amazon, Apple, Google, etc. are "first step" in the field of cloud computing, Acer is still a step later.
In its view, the core of the Acer brand is focused on channel management, lacking software foundation, not to mention the integration of software and hardware. The other two PC manufacturers, HP and Dell, are taking the cloud computing + server route, and the foundation is relatively mature. But the transformation is not satisfactory.
In the short term, Acer's expected new profit center is not at least financially reflected. Chen Junsheng said recently that Acer is still in the early stages of promoting cloud computing services called "Build Your Own Cloud," but he also said that once there is a large enough user base, Acer plans to generate revenue through cloud computing services.
Transformation hindrance
Founded in 1976, Acer split its own brand and foundry brand into Acer (Acer Computer), BenQ (BenQ) and Wistron (Wistron). Acer focuses on personal computers and is a self-owned brand; BenQ is also a self-owned brand, mainly engaged in digital products; Wistron Capital's main OEM business, this is an important part of its growth. Since then, Acer has entered a period of rapid expansion and has successively acquired companies such as Gateway and Packard Bell. In 2009, Acer defeated Dell with a netbook and became the world's second largest PC giant.
However, shortly after the success of Acer’s successful betting on the netbook, it was robbed of the limelight by the iPhone and iPad. The netbook business shrank rapidly and instantly dropped from the boiling point to the freezing point.
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