Enterprise interview

April | Jun 26, 2024 min read

Company Profile

  1. SHENZHEN KINGDOM SCI-TECH, LTD Jiangmen Team(hereinafter referred to as “Jinzheng”).Jinzheng was founded in 1998 and listed on the Shanghai Stock Exchange in 2003. As of now, the registered capital is approximately 1 billion yuan. Jinzheng is China’s leading financial technology service provider, with branches in Shenzhen, Beijing and Shanghai, and two R&D centers in Chengdu and Nanjing. At present, the entire Jinzheng Group has more than 20 platforms and subsidiaries. The group employs more than 10,000 people.
  2. The business direction of the Jiangmen team is the overall business of Jinzheng Group. Jinzheng has established a dual-circulation development strategy of “financial technology + digital economy” and completed the “four modernization framework” layout of digital industrialization, industrial digitization, digital governance, and data value in the field of digital economy. Jinzheng’s business covers traditional financial and inclusive financial fields such as securities, funds, banks, trusts, insurance, Internet finance, financial leasing, commercial factoring, quantitative investment, and third-party payment.
  3. Jinzheng is divided into five major business lines: the first is the securities field, the second is the fund field, the third is the banking field, the fourth is the Internet finance field, and the fifth is the smart city management field. The cornerstone of Jinzheng’s main business line is in the traditional financial field. The following mainly discusses the securities and fund fields. In the securities field, Jinzheng’s main products are to assist regulatory agencies such as the China Securities Regulatory Commission, the Securities Industry Association, the Fund Industry Association, and the China Securities Depository and Clearing Corporation to provide supervision and services. For example, Jinzheng provides China Lighting Company with a customized unified account platform for development; Jinzheng operates an over-the-counter trading system for the Hong Kong Stock Exchange. In the fund field, some of the counters of public funds holding gold certificates also have asset management systems. Including the Yu’ebao product launched by Jinzheng in 2013, the entire settlement is completed by Jinzheng; Jinzheng cooperates with Tianlong Fund to create a comprehensive trading system for its backend. The company has made progress in the fund industry, winning the bid for the Yimin Fund general contracting project and launching the next generation of digital transformation.

Organizational structure and Organizational management

  1. Organization of various departments of the company and coordination between departments.

    An organization is a formal system of task and work-reporting relationships that determines how employees use resources to achieve the organization’s goals. (G.R.Jones,2011) Shenzhen Kingdom Technology Co., Ltd. consists of front-end department and back-end department. The back-end department includes finance, operations management, office, human resources, procurement, strategic development and other departments. The front-end departments are business lines and do some cultivation work, such as the smart city business group, which is cultivated as a department. The department’s product line is mature and the strategic development direction of the business unit is clearer. The company will consider developing it as a subsidiary.

  2. The application and impact of digitalization in organizations.

    Digitalization has been widely used in Shenzhen Kingdom Technology Co., Ltd. The first is an office system, called the OA system. The company’s administrative processes such as recruitment, wages, reimbursement, and physical examinations will all be carried out in the OA system. Everyone can participate in the approval process, and managers can review feedback and make improvements at any time. Significantly reduce communication costs. Second, in the traditional approval process, the approval of paper documents and materials takes a long time. Online processing reduces time-consuming approvals, and leaders can work online on mobile devices anytime and anywhere, improving work efficiency. Third, in OA systems, data is retained longer, reducing management gaps and review time.

  3. Employee management.

    Equity incentive is an incentive method in enterprise management. By using equity as an incentive method, it guides employees to pay a higher degree of attention and participation in the business performance of the enterprise, thereby promoting the improvement of enterprise performance. The company’s implementation of equity incentives can improve employee cohesion. The company encourages employees to develop innovative businesses. If employees think there is development prospect in a certain field, they can apply to establish a business unit and apply for R&D resources. When the direction of the department is clear and mature, it can run independently for the subsidiary. Personnel will receive partial equity. Through equity incentives, we can fully mobilize the enthusiasm of core talents and closely integrate the goals of the company’s core management team with the company’s strategic goals.

Product description

  1. Digitalization is widely used in product development. All of Jinzheng’s front-line business systems are developed based on the independently developed development platform KOCA. KOCA was originally a packaged open source component. Since 2017, Jinzheng has been encapsulating it internally, and it is now at the fourth-generation level. In addition, there will be support for operation and maintenance control systems and some complete software systems. On the operation and maintenance control system, you can see the number of bugs for each product line every day, the resolution progress, and the type of demand for each product line, whether it is product-based or customized. The system also has some automatic analysis tools such as charts and statistics. Data application is the core of digital transformation of inclusive finance, focusing on agility, efficiency and accuracy. By improving the data development and application platform, fintech applications and model optimization are carried out, and correlation analysis and value mining of massive data resources are carried out to create an agile, efficient and accurate data application ecosystem. [1] Jinzheng innovative development platform improves product research and development capabilities through digital transformation, meets diverse customer needs, and promotes the digital transformation process.

Strategy

  1. Future goals

    The company is preparing to consolidate its current industry position while entering new industries. The company is now vigorously developing inclusive finance, traditional finance and banking. Inclusive finance is emerging finance, and companies will now develop in this area. The company will then set up a financial leasing company to specialize in financial leasing. Some companies specialize in supply chain finance and systems, while others specialize in business guarantees. This is a direction that the company is currently exploring.

  2. Introduce the company’s cooperation outside mainland China

    Jinzheng has helped Bangladesh, Cambodia and other countries establish part of their financial systems. Jinzheng has rich experience in financial management, a reliable and mature brokerage system, and an over-the-counter trading system. And the company can provide some consulting services, regulatory systems and software services.

  3. How does the company face the policies of different countries and cultures?

    There are two types of strategy formulation: small countries and medium-sized countries. For example, some small countries, such as Cambodia and Bangladesh, do not have corresponding financial regulatory systems and the systems are relatively loose, so companies use consulting services to help them establish regulatory systems; some medium-sized countries, such as Brazil, have better financial environments and Have an enlightened policy. Due to historical reasons such as colonization, its financial environment and cultural thinking are quite different from China’s, so the company has formulated specialized policies to deal with different countries.

Stakeholders

  1. Special advantages

    With the increasing development of financial technology, the products of various companies are becoming increasingly homogeneous, and due to the high salaries of scientific and technological talents, the main cost of scientific and technological enterprises is labor cost. [1] For cost control, this company has used years of experience to create a management system to help coordinate the operations of various departments. This is specifically reflected in the work under the leadership of sales staff, so as to connect with customers and communicate face-to-face. Customer needs, and inform the R&D department of customer needs, so that products can reduce intermediate costs while meeting customer needs. Through the above management system, costs can be reduced and price advantages obtained among similar enterprises. [1] Chinese Government Network. (January 7, 2022) “Financial Science and Technology Development Plan (2022-2025)” issued - Finance and technology accelerate the deep integration.

  2. The company’s customer sources and how to manage customer relationships The company’s main customers are financial leasing companies, which are divided into financial leasing and financial leasing. The company will help them build all computer rooms and software systems. At the same time, the company will send technicians to the site to establish a complete monitoring mechanism to ensure the perfect operation of the product. This approach can ensure total quality management. [2] Another type of customer is an enterprise that has localized alternative goals for financial technology. The company will use its comprehensive relevant experience and strong technical reserves to help such enterprises evaluate and reduce customers’ substitution costs,and meet the diverse needs of customers. This approach can ensure customer relationship management. [3]

    [2] Choi, T. Y., & Eboch, K. (1998). The TQM paradox: The relationship between TQM practices, factory performance, and customer satisfaction. Journal of Operations Management, 17(1), 59-75.

    [3] Kumar, V., & Reinartz, W. (2016). Customer Relationship Management: Concepts, Strategies and Tools. Springer.

  3. In the context of the digital economy, how a company interacts with its stakeholders (suppliers, distributors, competitors, consumers, governments and other institutions) and its external environment.

    First of all, at the competitor level, based on organizational culture and ethics [4], the company has always maintained the concept of win-win cooperation with other similar companies. Through a clear understanding of itself and active communication with other companies, the company has found its own position in Precise positioning in the industrial chain, and through the product advantages mentioned above, avoid vicious competition. Secondly, at the government level, enterprises actively responded to the information application innovation requirements proposed during China’s “14th Five-Year Plan” period, followed development trends, and boosted internal confidence within the enterprise.

    [4] Treviño, L. K., & Nelson, K. A. (2016). Managing Business Ethics: Straight Talk About Getting It Right. John Wiley & Sons.

  4. The cooperative attitude and operating model adopted within the business network

    The company’s ability to maintain its dominant position depends more on how to communicate better with old customers and how to maintain them. The company’s customers have been cooperating with the company for more than ten years, and the company’s suppliers have been cooperating with the company for many years. The company actually has a corporate culture with a kind of Jianghu atmosphere. The company will not abandon customers or suppliers, so In fact, the company has a good reputation in the entire upstream and downstream relationships. The company also treats its employees with a bit of a Jianghu atmosphere.

Competitive advantage and disadvantage

The first is the policy advantage. As a pioneer in this industry, you will get political support from some countries. When the company started, our country’s financial technology was very weak, but the financial industry is a vital lifeline for a country. . When enterprises first entered this industry, they tried to use their own strength to make up for the country’s shortcomings and deficiencies in this area. After the company went public, it received technical and financial support from many countries. Then came the disadvantages of corporate development. Many imitators and competitors appeared in the country, causing the industry environment to gradually transform into involution. As a pioneer in the industry, the company is so large that it cannot change quickly when changing its development direction, and technological updates cannot quickly keep up with the development of the times.