Digitalization--

increasing the vitality of enterprises

China Concrete and Cement-based Products Association（CCPA） came to Wuhan to interview this popular entrepreneur and conduct field research on the digital management practices of Wuhan Yianshi Technology Co., Ltd., a company he leads.

"Gongchengbang" is a concrete digital supply service platform, which was founded in 2015 by Wuhan Yianshi Technology Co., Ltd.

Mr. Xu recalled that the digitization of “Gongchengbang” has gone through three stages. The first stage is the initial stage, the initial "Gongchengbang" is an "online shopping center" for sporadic concrete. 

The second stage is the preparatory stage, from 2018 to 2019, “Gongchengbang” opens up all the systems of the corporate office, from procurement to payment, from contracts to supply delivery, it established the basic corporate information system. From this, they first tasted the dividends of digital management and realized the power of digitalization.

The third stage is the iterative stage, which is the enterprise digital management system being established currently, it is finance-centric, accounting down to the smallest business unit (individual project) and contributing individual.

In recent years, the concrete industry faces a huge change in the market environment. It used to be a fight for market dividends, but now it's a fight for management capabilities. If enterprises want to improve competitiveness and profit margins, they can only seek benefits from management efficiency. " After using ‘Gongchengbang’, numbers have become our common management language."

Interface of Gongchengbang App

For mixing plant managers, "Gongchengbang" is a simple-looking “weapon” that's easy to use, because it can "understand" concrete better.

After realizing the accounting for single-project profits, “Gongchengbang” launched the "project partner model". It is the brand-new model that triggered a hot discussion at the “Conference of Large-scale Concrete Enterprises from Three Provinces and Regions in Southern China ".

Project partner model

The implementation of the "project partner model" can change the business contractor of the project from a pure third-party benefit-sharer to a "partner"—a risk-sharer and a benefit-sharer. The effectiveness of the model has been proven in more than 20 cities across the country. There is no greater incentive for a partner than to see that he or she has invested in a project that has a substantial return. This positive cycle deepens the trust between partners and “Gongchengbang”, it can also motivate partners to undertake more and better quality engineering projects.

"We will build a national 'partner' platform on the basis of 'partner model', and this is not an empty word." This is the most vocal sentence in the interview with Mr. Xu. After deeply understanding the partner model, we can easily see that the "ambition" of "Gongchengbang" is not only to provide information management tools for concrete enterprises. What it really wants to do is to optimize the allocation of production factors and build a new ecology for the industry through digital technology and mechanism innovation. "Gongchengbang" is building the “Beke Net” of the concrete industry.

As we all know, the biggest dilemma of China's concrete industry at present, one is the serious overcapacity, the other is the high account receivable. Industry woes have all concrete companies asking themselves deeply: Firstly, how to sell the business with both profit and cash flow? Secondly, how can internal operations ensure quality and service while reducing costs? "Gongchengbang" is starting to break through with a new digital mindset.

In “Gongchengbang”'s system, data is only the first step of digitization, turning data into productivity is the fundamental goal.