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THTI President Cheng Fang: The Essence of MIE Space and Product Thinking

Time:2017-09-16 11:05    Publisher:tiholding

The Ceremony for the Inauguration of Shanghai Jiading Innovation and Entrepreneurship Building & the Opening of Shanghai Jiading Innovation and Entrepreneurship Street and the First Shanghai Jiading Innovation & Entrepreneurship Forum 2017 were held on September 16, 2017 in Jiading Venue of the Third National Mass Entrepreneurship & Innovation Week. The sponsors, Shanghai Jiading District Science and Technology Commission and Tsinghua Technology & Innovation Holdings Co., Ltd. (THTI), held the summit forum at the inauguration of Shanghai Jiading Innovation & Entrepreneurship Building, where distinguished personages in the industry gathered and had high-level dialogues. Cheng Fang, President of THTI and Chairman of Beijing IES Investment and Management Co., Ltd. (IES Investment), delivered a speech entitled“The Essence of MIE Space and Product Thinking”. With more than ten years of operational experience in innovation and entrepreneurship parks, communities and streets, he analyzed the essence of MIE Space’s operation and interpreted the key significance of product thinking in the operation, which has strong resonance for the guests on the venue. This speech is of strategically guiding significance, and this press release will be dedicated to recording this speech.

How to define the platform of MIE Space

Most makers are accustomed to base their development strategies on the "platform building", yet in the end they find it too difficult to build the platform. What companies are suitable to build the platform? When should they start building the platform? In my opinion, companies with capital of less than RMB 1,000,000,000 yuan are supposed to focus on products, those with capital of RMB 1,000,000,000 yuan are qualified for platform building, and only those with capital of RMB 10,000,000,000 yuan focus on the ecology. Although it is not an absolute standard, it basically defines and provides a basis for the positioning of start-up companies in different stages.

Chaos caused by blind groupthink

We are too busy to be forward-looking and think at a strategic level. Chinese Premier Li Keqiang put forward the Mass Entrepreneurship & Innovation Initiative in 2014, then once one or two unique approaches to starting up business are successful, a large number of enterprises adopt them and quickly abandon them. Without strategic positioning, clear self-cognition or accurate deployment in the industry, a company must be at a loss.

With specific core competitiveness, whoever "remains" takes it all

We do not have to be pessimistic. Despite ups and downs since MIE Space started in 2014, the enterprises which have found their positioning and core competitiveness have survived in the market. In the second half of 2016, MIE Space was criticized by the media. Has the coffee become cool? Not hot at least. That is a good thing. Empty talks are fewer when rationality has returned, while there come more people of action; those who invest are fewer while providers of services are more; investment models become fewer while investors in technology become more. The rational ones have found their suitable models and positioning. Many well-known business incubators are still alive and live well.

The mission becoming the consensus drives the development of a huge industrial chain

Business incubators in the past provided one-stop, full-chain and nanny-style services and seemed to be a cure-all for all the problems that enterprises might be confronted with. Over the past three years of mass entrepreneurship and innovation, a group of carriers, enterprises and social capital has sprung up, and also many representative results have been presented. But what is important is that such efforts and attempts have brought about a consensus that will drive the development of a huge industrial chain. The entrepreneurship and innovation initiative requires the involvement of everyone, not just entrepreneurs, business incubators or the government. When all the strength is put together, the roaring fire of entrepreneurship and innovation will be ignited, ultimately promoting economic development and social progress.

Six elements for success of MIE Space

When it comes to MIE Space, "space" is often what people focus on because it is a concept easy to be understood. Yet "space" is just a carrier after all. The mission of MIE Space is to drive enterprises to complete economic activities, instead of simply decorating the space itself by empty talk.

Good space is a must, good service is a favor, and good investment depends on luck. The products of MIE Space are very important. There are six indispensable elements including talent, technology, market, industry, capital and space which are supposed to collaborate with each other, and the relationship between every two elements is the service that MIE Space should provide and explore.

We should develop product thinking, define specific industry categories and development scales, provide clear demand, quantized value and appropriate prices and obtain clear feedback, link the business model with the value, and reasonably charge the service. Additionally, we should subvert the original service models, and directly meet one of the users' specific requirement or one kind of such requirements. We should figure out what problems can be solved by our product to improve the service efficiency. The product is the brand. In the current cruel price war, whoever remains takes it all. How to save costs and survive shall be what all operators think about.

Know well about entrepreneurs and run on the same track in multiple industries

What service can we provide? What do they really want? The attempts in movies, games and wine have ended in failure hastily. We need to know well about and further group our users, and target the services they want. We must not base our services and activities on just our own demand. What entrepreneurs want are investment and financing, partners, education and training and various services in the operation, and we should provide those to them efficiently.

With regard to the service, many people think it involves multiple industries, but working in another industry does not always work. It is better to make improvement in the same industry by introducing new business philosophies from other industries. What we are supposed do is to change the horse or the engine in the same track to acquire competitive advantages in the industry.

Shanghai Jiading Innovation & Entrepreneurship Street (IE Street) is equipped with sound government support and environment for innovation and entrepreneurship and has achieved preliminary results after unremitting efforts by IES Investment. People expect it to find the correct positioning, provide satisfactory services and delicate products by relying on its resource advantage and core competitiveness, and thus become an example for operators of innovation and entrepreneurship streets.

(Source: IE Street)