Traveling through the sword to engage in military industry.

Chapter 504: Standardization Dispute and Mechanism Changes

Entering the 1960s when technology was booming, the emergence of new and rapid technologies made Ren Zhong feel like he was getting busier and busier, like a spinning top.

There's no way, there are too many things to focus on right now.

For many things, Dongda has no historical and technological accumulation at all. If we don’t bring some work back from the main world, Dongda won’t even have any ideas.

Although the camera is only a very small product, it is of great significance to the development of optical technology. It is also the best way for optics to use technology to feed back to itself. It is an indispensable part of the future development of chips, space development, and military development. Therefore, Ren Zhong also put some thought into it and asked the Optical Technology Research Center of the University of Tokyo to go out and bring in Zeiss, the evergreen optical company, even if it means temporarily giving up certain interests.

Just like Rolls-Royce, even if it has been overtaken by Dongda in terms of a single product, its overall ability to develop new products is still far beyond that of Dongda. Once Ren Zhong cannot find any useful information from the main world, the gap in research and development will be reflected.

The same is true for optics. Dongda now has some hard materials in hand, and the future new product market is brewing here. It is still very attractive to win over optical technology giants like Zeiss, and they are willing to squeeze out their own capabilities.

From today's perspective, the effect is indeed quite good. The stagnant lithography machine industry has achieved an immediate breakthrough, and the new generation of lithography machine L-100 has been successfully researched and put into actual mass production.

This is a new generation of stepper lithography machine. Compared with the original technology route, it has achieved record improvements in chip production efficiency and yield rate.

All of a sudden, the production process of Dongda's chips was quickly updated to the 2-micron mass production level. The original reflective lithography mode began to be gradually eliminated, and the old 8080 process that the competitor had just obtained through dishonorable means was directly destroyed.

After all, there is no comparison in terms of production efficiency and yield rate. Competitors have only solved the problem of whether or not they have products, but are far from solving the problems of quality and cost.

After Dongda introduced the new generation of technology into chip production, the production cost of 8080 was reduced by an order of magnitude. Dongda soon announced that it would significantly reduce the price of 8080 in the middle of this year. As a result, the use of 8080 was greatly expanded and it began to enter large-scale industrial control application scenarios. Compared with the original production process, the area of ​​the new 8080 chip was greatly reduced, and the memory chip was also updated simultaneously. The industrial control motherboards produced in this way are more compact and convenient to install in the machine.

Many mechanical equipment, including automobiles, have begun to adopt 8080 chips in large quantities to improve their intelligence. After all, they used to cost hundreds of US dollars, and these products that only sold for a few thousand US dollars in total could not afford such a price. But now after the price reduction, the overall price of a simple industrial control board can be reduced to less than one hundred US dollars, and such a price can already be absorbed by large products such as automobiles.

In this wave of chip upgrades, the first to benefit are programmable switches in communication networks.

After adopting the new 8080 and 8086 chips, the -port program-controlled exchange has become more compact and stable. Because the new processor and memory have lower requirements for heat dissipation, the computing performance has been greatly improved, which makes the algorithm run faster and the switching time of call transfer and hold shorter. For users, the delay is reduced, the waiting time is greatly reduced, and the number of dropped calls is reduced.

Make Dongda’s 10,000-port programmable switching system more cost-effective.

In previous versions, it has already formed an overwhelming advantage over vertical and horizontal switches. Now that a new generation of switches has come out, the advantages over vertical and horizontal switches are even greater.

However, for the core equipment of telephone communication, even though the relationship between Europe and Dongda is very close, they still chose to wait and see. The core cities continued to develop vertical and horizontal switches. There was no other way. Several traditional telecommunications product companies in Europe, such as Siemens, Feipu and Aisin, are still working hard to develop programmable switches. They hope to give these companies a buffer time to wait for the development of their new generation of switches.

However, some cities have to introduce Dongda's programmable switches to supplement their telephone networks. There is no other way. Dongda ET's programmable switches are too cost-effective, reducing the cost per line by four-fifths compared to vertical and horizontal switches!
A huge advantage. Now every telecommunications equipment manufacturer in the major powers has obtained the first generation of 10,000-port programmable switching system of Dongda through different channels for physical research.

Prepare to apply these "research" results to the development of their own "new products".

In the world of Sword, it is the turn of these Western powers to reverse copy the products of Dongda. Although it sounds a bit exciting, in fact, in terms of interests, in order to circumvent Dongda's telecommunications equipment patents, Western copycat CNC switches began to jointly develop another set of European standard telecommunications signaling system!

As a result, Dongda ET's programmable switching system is incompatible with European standard telecommunications switching systems!

When they developed a 8080-port programmable switching system, they also took advantage of the sharp price drop of the Dongda chip and reduced the cost of each line of the switch to within one hundred US dollars!
The cost is close to that of Dongda ET Company's first generation of 10,000-port programmable switching system!
In this way, the European side took advantage of its latecomer advantage and began to enter a stage of large-scale and comprehensive promotion of program-controlled switches. In the early promotion of program-controlled switches in the East, these countries only carried out partial replacement in large cities with high population density to meet the problem of the surge in local telephone communications. After all, after the East's ET company lowered the price of program-controlled switches, even if these countries wanted to protect their own telecommunications equipment manufacturers, they could not stop the operators from pursuing prices.

The 3,000-port digital programmable switching system offered by European telecommunications equipment manufacturers is about 20% less expensive than the ET from Dongda University, but it doesn't matter. National security and confidentiality are more important. For these countries, they still choose to trust the products of their own country or European allies. After all, in cities with a population of tens of thousands or hundreds of thousands, a 3,000-port scale is quite practical.

As a result, several major European telecommunications groups started a large-scale digital switch installation boom in Europe with this batch of new European standard programmable switches. Not only in Europe, but also in North America and other countries, after the upgrade, their switches also had prices that competed with Dongda. Coupled with their huge influence, they suddenly overwhelmed Dongda's ET Group in terms of sales and entered the fast lane of development!

Faced with this situation, ET Group of Dongda Telecom was somewhat caught off guard.

"In the current telecommunications market, European standard telecommunications equipment is incompatible with our telecommunications equipment. This situation has led to many areas where European standard telecommunications equipment has entered no longer accepting new standard switches. From the operator's perspective, the cost of operating and maintaining two types of equipment at the same time is obviously greater. There is no need to choose two standards to increase the complexity of their own operations and maintenance." ET's president said bluntly when reporting to Ren Zhong on the current issues of telecommunications market expansion.

"Given the current market situation, should we reduce the export of 8080 chips to Europe, or increase the export price of 8080 chips to increase their costs?"

Hearing this, Ren Zhong glanced at him.

This situation is a bit small. It seems that the position of ET President is not suitable for this person. However, Ren Zhong is not thinking about dealing with these things now. Instead, he listens and reads the report, and has a certain understanding of the basic situation.

"Has anyone here contacted the European side to discuss the possibility of forming a unified global telecommunications standard?" Ren Zhong looked up and asked.

President ET was stunned for a moment, and his memory quickly flashed through his mind, making sure that no one had mentioned it to him. "Dean Ren, we haven't done anything like this yet."

"Then let's talk to them first. If our company wants to go further, it should not be in restricting competitors' access to upstream component supplies. We should look to the longer term. You should examine yourselves. Why can't you compete with competitors under the conditions of the same or even priority supply of your chips? I think it's because life was too good in the past few years and everyone was a little slack. I haven't seen the development of a new generation of switches based on the 10,000-port programmable switches. With the new chips, when can we develop our 100,000-port programmable switches?" Ren Zhong's words made President ET break out in a cold sweat.

When ET-10K was selling well, everyone in the company was acting like they were picking up money, and they were so busy with production and market development that they had no time to focus on research and development. As a result, many people were transferred from the technical center to provide technical support on site.

Currently, companies and research centers are lagging behind in research on next-generation telecommunications equipment.

"Dean Ren, we are working hard to develop the next-generation large-capacity backbone switch ET-100K. Currently, we are doing prototype design and theoretical verification work. The specific research plan is constantly being adjusted, and it is expected that a finished product should be available within two years." President ET recalled the report that someone had given him before, and he could still remember the general content.

"You are a little slow in R&D," Ren Zhong frowned and said, "R&D and maintaining rapid technological iteration are the foundation for a company's long-term prosperity. Although our programmable switches are now the world's leading, this foundation is very vague and unreal. You have seen that competitors are catching up with us quickly, and now they are even swallowing up our early market advantages. These are lessons. You must organize internal discussions, conduct in-depth research on this situation and propose countermeasures. If this continues, ET will not even be able to take the lead in a few years."

Ren Zhong's words almost soaked ET President's vest. To him, Ren Zhong's criticism was already a very serious one. ET Group has been moving very fast in recent years, and the leaders have become a little too arrogant. There has been no leader who can really settle down and plan for the future of ET Group and do a solid job in researching new products. Everyone is busy and only thinks about doing the things in front of them.

This approach is somewhat off track.

The ET president was sent away.

Ren Zhong asked someone to bring ET Company's complete corporate situation report. After finding out more about the situation, Ren Zhong pondered for several days.

I feel like there seems to be something wrong with the current mechanism.

Originally, 20% of the shares were reserved for technical staff and management as dividends, with the original intention of motivating technical and management advancement. But now, for a company like ET, it seems that everything is about money!

Everyone seems to pay more attention to short-term corporate benefits, because dividends are based on the current corporate profit and loss data, and dividends are distributed every year based on 30% to 40% of the company's profits.

In this case, it seems inevitable that the entire company will pay more attention to obtaining current benefits.

Ren Zhong returned to the main world and tried to find answers from the top companies in the world.

But unfortunately, Ren Zhong has not found a panacea for management. No matter what kind of corporate mechanism it is, it seems that none of it is perfect.

More successful cases are that a company can only achieve great development if it has a good leader.

Behind almost every hugely successful business, there is a great entrepreneur.

Ren Zhong saw that it takes a lion to lead a group of sheep to achieve brilliant results, rather than a group of sheep reaching the top on their own.

In the companies founded by his Liming Group, the current product development routes are almost all in line with his plans. Logically speaking, Ren Zhong is the soul of the development of these companies. Once he fails to pay attention, the companies will soon go astray.

Therefore, fundamentally, it seems that his responsibility now is to restrict the development of these enterprises.

His planning and design is the upper limit of the company's development.

If anything happens to Ren Zhong, no one knows where the development of his companies will go.

It's easy to do something, but it's really hard to do it well.

Ren Zhong had no idea that he had already opened up a new history in the world of Bright Sword. The current situation was just a problem in the development process. However, for Ren Zhong, the emergence of such a problem was already a very serious sign.

Ren Zhong made up for the shortcomings of corporate management in the main world, and then consulted many corporate management experts and discussed the problems encountered in the world of Bright Sword. Now Ren Zhong is also a well-known billionaire in the main world, and he owns several companies with sales of hundreds of millions or even billions. The problems he raised are also natural.

However, the prescriptions given by experts vary.

There is no universal formula that can be applied, but the two core points have been grasped.

The first point is to choose entrepreneurs with charisma and vision, that is, to select a good leader among a group of bears.

The second point is that in terms of mechanism, the dimensions of observation or assessment should be more comprehensive, and evaluation should not be based solely on current benefits. If dividends are too focused on current interests, they will inevitably go astray.

(End of this chapter)

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