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Neusoft: the bell-weather of China's software industry

(China Daily)
Updated: 2008-10-13 13:56

Liu Jiren, the chairman and CEO of Neusoft Group Ltd

Liu Jiren, chairman and CEO of Neusoft Group Ltd, plays a leading role in China's software section. As the first doctor of computer application in China, Liu led his company ahead in the field for 18 years. Now, Neusoft has grown into the biggest software company in China and its products infiltrate nearly everywhere in our daily life although we may not notice.

If you ignore this company and this person, you will miss the chance to observe and research the development of China's software industry.

After 2 months of Neusoft's holistic listing, China Daily's reporters Wu Yong and Liu Ce talked with Liu Jiren about the changes and development strategy of the new Neusoft.

Q: You've participated in Davos many times. Also, you were invited to attend 2008 summer Davos holding in Tianjin this year. What do you think of the forum?

A: It's a kind of an innovation that Summer Davos will be held in China for the first time. Davos itself is a platform for exchanging ideas. In this platform you can understand the development trends of the whole world and the opportunities and challenges you may face in the future.

Attending this forum is also a good platform for me as a chairman and CEO to study in a sense. The reason is that you can hear the voices of economists, business leaders as well as officials, which can give you a description of the world and its development tendency from many different angles.

In addition, you can identify clearly where you are and what role you are playing in this community through this kind of exchange . And as well, you'll have a new idea of each member of this community and know what kind of citizen you will be in the community. So this can encourage you to think and work hard.

First, it's fortunate because Davos is not opened to everybody. Second, not all the people invited by the forum can take part in conferences. So Neusoft is very lucky to be in the minority invited by the forum and able to participate in conferences.

Q: What have been the changes of the new Neusoft since its holistic listing? Why have you made these adjustments? And what's the significance of these adjustments for further expansion of the company?

A: A company's growth is the same as a person's: you need something when you are young, then you need other things when you become older. A company with ideals should have a long-term plan. You should think about your mature phase when you are young. But in the process of development, you can't make every step develop as you expected from a microcosmic angle.

In the past 17 years of Neusoft's expansion, we got a perfect result when we went ahead with our goal with the good luck that the government promoted reform and opening-up policy. While in process, we were left with some problems including the complex organization. Why? At that time, we started many joint ventures with different companies in order to survive and develop. Now, when you look forward to the company's future, you will find what made you prosper in the past may become what holds you back in the future. So we have to coordinate our organization now.

The restructuring simplifies our organization and makes it more effective and competitive. Also, it's the best news for our former investors. It lays the first stone for our healthy and sustainable development including transparency and simplification of the company.

Q: As we know, international business takes 30 percent of the whole in Neusoft. What's the strategy for the company's international business?

A: Neusoft is a mature enterprise so its market share in the industry matches the international one. Take software as an example. Only 5 percent to 6 percent of global software consumption is in China, others are in the whole world. What is a so-called mature company? You can take the percentage of certain products sold in that area or country. That's a real multinational enterprise. But most enterprises have priority in their own countries. So in Neusoft's further expansion, 30 percent will surely turn to 50 percent or even more. It's our target.

I just came back from South America. Nearly every country there has our products including Brazil, Peru as well as Colombia. So does the Middle East. As a Chinese company, it brings me great confidence that China-made hi-tech products can be accepted by international clients. And what makes me more excited is that not only developing countries but also developed countries accept our products. In the past year, we sold and installed over 20 products in the US.

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