Disrupting the Disruptors: The Merger Of Uber China And Didi Chuxing

Forbes, August 8, 2016

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I co-authored this article with my colleague Edward Tse, CEO of Gao Feng Advisory Company

On August 1st, Didi Chuxing (Didi)and Uber China announced a plan to merge their businesses in China, effectively placing Didi in control of their combined ride-hailing business for the China market.  This deal has attracted a great deal of attention since the announcement, raising a number of critical questions which we address in this article, including:

  • Did the China government play any role in the merger?
  • Can foreign tech companies compete in China?
  • Did Uber China win or lose?
  • Could Uber China ever have become a dominant player in China if it decided to press ahead?
  • What will this deal mean to Uber and Didi’s global strategies?

China has become the epicenter of a disruptive wave of digital innovation, and the rapidly evolving landscape of partnerships for mobility services is a clear indication of this.  For sure, we can look forward to even more exciting developments in the future.

Click here to read the article at Forbes.com

Reimagining Mobility in the China Context

Gao Feng Insights Report, February 2016

We are pleased to share with you our paper titled: Reimagining Mobility in the China Context. This article builds on the themes from our previous article titled Digital Disruption in China’s Automotive Industry, and offers a perspective at how the traditional value chain of the automotive industry is being fundamentally transformed by a new wave of “digital disruptors”.

Unlike traditional automotive OEMs and suppliers, these digital disruptors are leveraging mobile internet technology to present new and innovative “Connected Mobility” services to users, and in the process challenging the business model of the automotive industry. The century old hardware-centric business model of individual car ownership and product-based segmentation is transforming into a new form which leverages internet technology to deliver a broader range of services to address mobility needs.  Such changes are happening faster in China than in the rest of the world, where the size and scale of the urban population and the sheer numbers of mobile internet users are much greater than other markets.

In such an environment, China’s Internet giants (Baidu, Alibaba, Tencent) along with mobility disruptors such as LeEco and NextEV are vying to deliver an increasingly connected, electrified, smart and personalized mobility experience.  Coupled with the Chinese government’s regulatory push on new-energy vehicle adoption and sustainable transportation infrastructure, China has demonstrated strong potential to become the breeding ground for the Connected Mobility revolution.   As a result, Automotive OEM and supplier CEOs must learn to reimagine mobility in the China context in order to secure a strong position in this new competitive landscape.

We welcome your comments and feedback on our briefing paper or in general about our firm. We would be glad to meet you in person to share our data and perspectives in a fuller manner. Please let us know if you are interested in meeting and discussing directly how we can help you to operationalize these insights.

Thought leadership is core to what Gao Feng does. We will, from time to time, share with you our latest thinking on business and management, especially as it relates to China and China’s role in the world.

Best Regards,

Bill Russo
Managing Director, Gao Feng Advisory Company
bill.russo@gaofengadv.com

Edward Tse
Chairman and CEO, Gao Feng Advisory Company
edward.tse@gaofengadv.com

Tel: +86 10 5650 0676 (Beijing); +852 2588 3554 (Hong Kong); +86 21 5117 5853 (Shanghai)

Augmentum and Gao Feng Advisory Company Form a Strategic Partnership

Photos Photos, Today at 5.12.50 PM

Bill Russo, Managing Director from Gao Feng Advisory Company
and Dr. Leonard Liu, Chairman & CEO from Augmentum, Inc.

Shanghai, China – February 15, 2016 – Augmentum, Inc., a provider of software services for products and solutions that can digitally transform enterprises, today announced that it has signed a strategic partnership agreement with Gao Feng Advisory Company (“Gao Feng”), a global management consultancy with roots in China.  Both firms will seek to join forces to deliver a unique and comprehensive set of services to their clients in China and worldwide.

The “connect with anyone, anywhere, anytime” world we live in today requires us to re-imagine and transform the journeys that enterprises and their customers take with each other. These transformations have shown us that enterprises need to build, over time, a holistic unified view of their customers, internal teams, and partners.   The delivery of such innovative services to customers is only the tip of the iceberg.  Behind these services there are many more services facing their customers, internal teams and partners to orchestrate the end to end activities necessary to meet the immediate service expectation. Existing islands of systems and information need to be connected in order to effectively respond to the immediate gratification expectations of their customers.

Augmentum & Gao Feng will bring a globally experienced team to collaborate with their clients to co-innovate, architect, design, build and operate digital ecosystems that deliver competitive advantage with a deeply-rooted in-China perspective.   This will encompass providing digital transformation services, digital marketing & ecommerce services, and software development services.

“Throughout the years, we have worked with many large companies as well as startups here in China and worldwide. Our clients together with us have achieved speedy phased incremental transformation within the context of an overall strategy, robust architecture, and product-level quality implementation. We look forward to leveraging our strong partnership with Gao Feng to accelerate the transformation for our clients”, said Dr. Leonard Liu, Chairman & CEO of Augmentum.

“Gao Feng is a pre-eminent strategy and management consulting firm”, said Dr. Edward Tse, founder and CEO of Gao Feng.  “The partnership with Augmentum allows Gao Feng to offer our clients a broad set of capabilities beyond those typically found among strategy consultancies, leveraging deep expertise in the area of digital hardware, software and big data solutions”, he added.

Gao Feng Advisory Company is a pre-eminent strategy and management consulting firm with roots in China and global vision, capabilities, and a broad resources network.

Augmentum started operations in year 2003 and is strategically focused on leveraging the convergence of web, mobile, social media, targeted big data analytics, Internet of Things (IoT) and cloud computing to produce products and solutions.

# END #
About Augmentum

Augmentum was established in the Silicon Valley in 2003 with Global Delivery Centers in Shanghai, Wuhan, and Yangzhou. Our clients include members of the Fortune 500, mid-sized companies and startups in various industry sectors.

We have been fortunate enough to work with many leading edge enterprises to leverage the convergence of web, mobile, social media, targeted big data analytics, Internet of Things (IoT) and cloud computing.

For our clients, we have always delivered product level systems and solutions with high quality, reliable, scalable and extensible.

Connect with us on www.augmentum.com

For Further Queries:
Ping Zhou | Vice President | Email: ping.zhou@augmentum.com

 

About Gao Feng Advisory Company

Gao Feng Advisory Company is a pre-eminent strategy and management consulting firm with roots in China and global vision, capabilities, and a broad resources network. We help our clients address and solve their toughest business and management issues — issues that arise in midst of fast-changing, complicated and ambiguous operating environment. We put our clients’ interest first and foremost. We are objective and we view our client engagements as long-term relationships rather than one-off projects. We commit to helping our clients to not only “design” the solutions but assist in implementation, often hand-in-hand with the clients. We believe that every member of our team can contribute to problem solving for our clients, from the most senior to the most junior.

Our seniors are former senior consultants at leading management consulting firms and/or senior executives at large corporations. We believe clients would benefit the most from a combination of consultants with substantive experience in consulting coupled with line management professionals.  In addition to our team in the Greater China offices of Beijing, Hong Kong and Shanghai, we have a global network of collaboration partners with a wide range of experience, capabilities and resources.

Connect with us on www.gaofengadv.com

For Further Queries:
Bill Russo | Managing Director – Shanghai, China | Email: bill.russo@gaofengadv.com

Tel: +86 10 5650 0676 (Beijing); +852 2588 3554 (Hong Kong); +86 21 5117 5853 (Shanghai)

Gao Feng website: www.gaofengadv.com

Gao Feng social media:

Dr. Tse’s New Book: China’s Disruptors

Website: www.chinasdisruptors.com

Digital Disruption in China’s Automotive Industry

Gao Feng Insights Report, January 2016

We are pleased to share with you our paper titled: Digital Disruption in China’s Automotive Industry. Recent advances in mobile connectivity, big data and social networks have infiltrated the traditional automotive industry and are beginning to redraw the competitive landscape among traditional hardware companies and digital “disruptors”.

The traditional automotive industry, where technology innovation has primarily been focused on powertrain and safety systems, must now contend with new forms of mobility services that are transforming the business model of the auto industry. The conventional hardware-centric, sales-driven, asset-heavy, and ownership-based business model with sporadic customer interactions is being superseded by more connected, on-demand, cost-effective, personalized mobility services. This new form of “connected mobility” is driving new technologies in the areas of navigation, analytics, driver safety, driver assistance and information virtualization.

China’s automotive industry is at the forefront of digital disruption as this transformation is happening much faster in China than the rest of the world, and China will leapfrog to a new era of personalized and electrified mobility.  The unique context of China’s urban transportation challenge, the high rate of adoption of mobile device connectivity, combined with the rapid and aggressive introduction of alternative mobility and ownership concepts will compress the time needed to commercialize smart, connected car technology and related services.  These conditions may permit China to “leapfrog” to towards a new era of personalized and electrified mobility.

We welcome your comments and feedback on our briefing paper or in general about our firm. We would be glad to meet you in person to share our data and perspectives in a fuller manner. Please let us know if you are interested in meeting and discussing directly how we can help you to operationalize these insights.

Thought leadership is core to what Gao Feng does. We will, from time to time, share with you our latest thinking on business and management, especially as it relates to China and China’s role in the world.

Best Regards,

Bill Russo
Managing Director, Gao Feng Advisory Company
bill.russo@gaofengadv.com

Edward Tse
Chairman and CEO, Gao Feng Advisory Company
edward.tse@gaofengadv.com

Tel: +86 10 5650 0676 (Beijing); +852 2588 3554 (Hong Kong); +86 21 5117 5853 (Shanghai)

Tech Disruptions Impacting the Auto Industry

Beijing, China, October 28, 2015

Audio Interview:  Bill Russo of Gao Feng Advisory Company talks about how convenience-centric mobile users are buying fewer cars

Click here to access the AmCham site with a link to the full audio interview

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Cars are the ultimate mobile device. And changes in mobile purchasing and big data have changed the way consumers interact with cars, with taxi hailing apps as the most vivid example.

Bill Russo, Managing Director and Automotive Practice leader at Gao Feng Advisory Company, spoke at AmCham China Oct. 28 to address these tech disruptions impacting the auto industry. Russo has nearly 30 years of experience in the auto industry, paired with 12 years in the IT industry. Listen in to the full podcast below to hear what he makes of tech’s latest target.

Q: The China market is adopting new innovations in cars faster than other places in the world. What are these innovations happening here first?

A: The car is a mobile device and today it’s not as connected as other things that people carry with them. So the expectation is high that the car will be an extension of their mobility world.

I think we’re actually saying that Chinese adopt new mobile technology faster than the rest of the world, not necessarily new mobile technology in cars.

When you compare China to anywhere else in the world, it’s much more densely populated and everybody’s connected through some form of mobile device. The Internet population is now well in excess of 600 million, and almost all of them are connected some sort of mobile device.

To the auto industry, one of the disruptions that is plainly evident if you live in China is that people have the choice of whether to own a car. It’s become less and less convenient to drive a car or hail a taxi at certain times of day. Internet companies came in and said that’s another convenience that we could provide. You can book a car through your mobile device. That’s having a disruptive impact on the way people use mobility.

 

Digital Disruption in China’s Automotive Industry – AmCham China

October 28, 2015, 12-2pm

Bill Russo to present on the topic:

Digital Disruption in China’s Automotive Industry

AmCham China Conference Center
The Office Park, Tower AB, 6th Floor
No. 10 Jintongxi Road
北京市金桐西路10号 远洋光华国际 AB座6层
Beijing, Chaoyang District, China

Click here to register

Digital Disruption in China’s Automotive Industry - AmCham China on EventBank Safari, Today at 4.55.07 PM