Value-added and innovation of machine tool enterprises

Since the second half of 2008, almost at the same time, all people are discussing how to spend the winter. All entrepreneurs are thinking about the same question. When will the Chinese economy emerge from the crisis? How to stabilize the position in the current economic crisis, ready to go or even contrarian Nuggets? Continuous innovation is undoubtedly a means for companies to remain competitive. This is an indisputable fact.

Low added value, lack of competitive technical content, low-cost competition for homogenized products, and even overproduction, oversupply, and slow sales of products have caused many machine tool companies to suffer in the tide of economic crisis. The timely financial rescue of the government and the implementation of the industrial revitalization plan encourage the equipment manufacturing enterprises to accelerate technological upgrading, optimize the industry and product structure, and regard the economic crisis as an adjustment period, accumulate energy, and adjust strategies through product innovation and service innovation. Increase the added value of the product, expect to win the market opportunity after shuffling, and obtain the profits that should be deserved.

In my opinion, the added value of a product has two meanings. First of all, the product should be able to bring added value to the user. The value of the product is not only a psychological feeling, but also a reflection of the actual value. For machine tool products, in addition to meeting the user's production requirements, the service value, brand value, value of cost reduction and efficiency, value of energy conservation and environmental protection, and even the value of the user's corporate image can still be reflected. Added value to the user. Secondly, for enterprises, the added value is the value that can be converted into corporate profits beyond the cost of products, and it is also the survival of sustainable development of enterprises. Only when the user obtains and appreciates the added value, is willing to pay for the added value of the enterprise beyond the cost, the enterprise can obtain higher profits and get rid of the dilemma of low-price competition.

The added value comes from the innovation of the product, and there is no market competitiveness without innovative products. However, innovation does not necessarily bring added value to the company, which determines whether this innovation is accepted by the market. Flashy and innovative products may just be “satisfied”, and simple and practical technological improvements do not necessarily have no market. Therefore, the thinking and research of innovation becomes an innovative strategy that enterprise decision makers analyze and choose and suit their conditions.

The author believes that the key to innovation is to grasp the degree, whether it is partial innovation or overall innovation, whether to upgrade software or improve hardware. Decision makers must judge the concept of different new products in the market and other products in the market at the initial stage of product development. The differences between similar products are then revised. In addition, it should be noted that China's machine tool market is a diversified market. High-quality, sophisticated and sophisticated products are of great use. Basic products still have a broad demand space, and product innovation is established in line with the company's own situation. It is a necessary step for companies to develop product innovation strategies. To see the market positioning of the company, the key is to transform your innovation into added value that can be accepted by the market. “The more advanced the product, the more innovative it is”, the risk is high, and the potential added value is higher. “The more practical the product is, the more innovative it is.” It is also a good direction. Maybe several practical products can be combined to produce a composite function. Bringing added value of “point stone into gold”.

The market is a yardstick for testing whether product innovation is reasonable. The market has its own rules and changes. It is indeed necessary to have a vision and wisdom to always control the market trends. However, the development of China's economy will always provide a stage for the most efficient enterprises to take off.

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