Baosteel Manufacturing Service Values Of Research

The Chinese manufacturing industry has been rapidly developing in the recent years.Despite the larger size,there are still many problems i.e.high energy-consumption and low industrial added value etc;made-in-China is“ large but not strong ”.Made in China 2025 Strategies and Supply-side Structural Reform proposed on the national level have provided the favorable political and market environments for the enterprise reform,which also further explains that the transformation of China ' s manufacturing industry is just around the corner.The service oriented manufacturing industry emerges as the times require and gives directions to the Chinese enterprise reform.As the typical manufacturing industry,the steel industry has no longer been in its prime time but switched to entering the period of recession.The industrial profits drop considerably and all enterprises are operating in the red.Facing such unfavorable industrial background,the enterprises make effort to realize the service oriented manufacturing industry by promoting the intelligent manufacturing one after another;it is only by conforming to the national policies and changing the traditional production and sales methods that the enterprises could make a profit instead of suffering a loss so as to realize the enterprise value.In this article,it takes BAOSTEEL Co.,Ltd.(hereinafter referred to as BAOSTEEL Group)as an example and adopts the case analysis method to describe the status of steel industry as well as the process of the service-oriented manufacturing industry carried out by BAOSTEEL Group,straightens and introduces a series of measures the enterprise adopts for the transformation;secondly,it analyzes the value increment model of BAOSTEEL Group ' s service-oriented transformation in manufacturing industry from the perspectives i.e.value chain,smile curve,profit model and cost management.It calculates and analyzes the BAOSTEEL Group' s enterprise value,strategic value and social value and evaluates the economic benefits of the non-steel service businesses and the influences on the enterprise values by using the EVA economic value increment models as well as other financial indexes.BAOSTEEL Group ' s service-oriented manufacturing industrial strategic transformation not only re-constructs the value chain and improves the enterprise's market competitiveness but also enables its cost management mode to be more in line with the characteristics of the modernized and informationalized Big Data Era and realize the enterprise value increment.In the end of the article,it proposes the challenges facing BAOSTEEL Group to implement the servitization in the future as well as the countermeasures and suggestions in combination with the analysis and evaluation made above.