Integrate patent R&D into the R&D department's KPI assessment!
Directly link it to performance and year-end bonuses!
Zhu Changlin's bold move almost stumped Wang Yi.
As an employee, Wang Yi would want to say: You're not human, you black-hearted boss!
But as a boss, Wang Yi would want to say: Old Zhu, well done, Xingyi Technology needs excellent senior executives like you!
And this is completely reliable.
The mobile phone R&D department received the highest year-end bonuses, and it was also the easiest.
How mobile phones are developed is all decided by Wang Yi; they are only responsible for implementation and refining details.
It's truly fortunate to receive 3-6 months' year-end bonus for something so simple, even other departments felt it was unfair.
Wang Yi nodded:
"Old Zhu, your idea is good. The mobile phone R&D department's performance indeed comes too easily. Barring any surprises, this year's year-end bonus will still be S-tier, which is unfair to other departments. It really needs to be changed."
"As for how to change it..."
Wang Yi thought for a moment:
"We can't just change the mobile phone R&D department; all R&D departments across Xingyi Technology should be changed."
"From now on, the year-end bonuses for all R&D departments at Xingyi Technology will be divided into two parts: performance year-end bonus + patent technology breakthrough award!"
"The performance year-end bonus is a regular year-end bonus, capped at three months, similar to current BAT companies."
"However, there is no upper limit for the technology breakthrough award. Whether it's a major technological breakthrough, a patent breakthrough, or an invention breakthrough, rewards ranging from 1 to N months can be awarded based on their value. If a major technological breakthrough is achieved, the bonus can be one million, or even five million!"
"To put it plainly, at Xingyi Technology, there's only one rule: prioritize R&D, prioritize patents!"
"As long as there are significant R&D achievements or core patents, the technology breakthrough award starts at six months. Coupled with the performance year-end bonus, it's easily eight months or more!"
"Even for a general patent, as long as it has value, even if it's just a little, a technology breakthrough award starting at two months can be received!"
"This measure, arrange it quickly."
"Yes!" Zhu Changlin responded decisively.
Soon, an internal memo spread throughout the entire company.
[Starting in 2012, all R&D departments at Xingyi Technology will undergo a comprehensive reform of their year-end bonuses. Performance year-end bonuses will be capped at a maximum of three months. A new patent technology breakthrough award will be introduced with no upper limit.]
[General patent or low-level technological breakthrough: two-month patent technology breakthrough award.]
[Important patent or mid-level technological breakthrough: six-month patent technology breakthrough award.]
[Core patent or high-level technological breakthrough: ten-month patent technology breakthrough award.]
[Top-tier patent or monopolistic technological breakthrough: starting at one million, promotion and salary increase, no upper limit!]
This internal memo quickly caused an uproar:
"The new policy reduces the performance year-end bonus, capping it at three months. It adds a technology breakthrough award, raising the upper limit for year-end bonuses, but also increasing the difficulty!"
"That's right, last year our mobile phone R&D department received 3-6 months of year-end bonuses. This year it's changed. Those with ability, with important patents or technological breakthroughs, can get nine months, or even over ten months of year-end bonuses. Those without patents or technological breakthroughs will get a maximum of three months!"
"To put it simply, the more capable, the more they earn. This is good, it will further stimulate our technological breakthroughs!"
"Exactly, the R&D department is not a place to slack off. It's better to diligently engage in R&D and technology!"
"I like this kind of system, where more effort leads to more rewards. Just one core patent or advanced technological breakthrough means hundreds of thousands in year-end bonuses, which is higher than salary. Although difficult, it's worth it."
"That's right, some core patents can't be achieved in a year, but during the R&D process, if important patents can be secured first, the year-end bonus will still be substantial."
"From today, I'm going all out, working hard on R&D!"
"Core patents are tough to achieve. If I can't even get a general patent, I'll die."
...
In the past, without the temptation of a technology breakthrough award, many people had ideas but lacked motivation.
Now, under the allure of bonuses of hundreds of thousands, even millions, everyone became excited, energized, and fully committed to R&D.
More importantly, once a major R&D breakthrough is made, getting money is a small matter; status, recognition, and position will all significantly increase.
Simply put, future promotions and salary increases will definitely prioritize those with major R&D breakthroughs or patent breakthroughs.
Without these, any maneuvering will be futile.
Wang Yi's attitude was clear: let performance speak for itself.
The strength of business departments is judged by sales, market share, and profit.
The strength of R&D departments is judged by R&D achievements, technological breakthroughs, patent breakthroughs, and invention breakthroughs.
Nothing else matters.
At the same time, Toshiba headquarters.
CEO Oohashi Taichi personally received Cui Hao, Apple's Greater China President:
"Welcome, President Cui, to Toshiba. It is my honor."
"Mr. Oohashi, you flatter me. Apple and Toshiba have always been strategic partners, so it's natural for us to visit more often."
"Mr. Cui is right! Toshiba is willing to be a steadfast ally of Apple, and we hope Apple can give more storage orders to Toshiba in the future. We will definitely not disappoint your esteemed company."
Oohashi Taichi's expression was somewhat complex.
Originally, Toshiba and Apple cooperated very well; most of the flash memory for the iPhone 4 was supplied by Toshiba.
However, with this generation's iPhone 4s, Apple suddenly changed its tune and directly switched flash memory suppliers.
Over 80% of the flash memory orders were given to Hynix in Korea.
Less than 20% was left for Toshiba!
This change hit Toshiba hard, with revenue and profits plummeting.
Fortunately, Xingyi Mobile emerged, and xphone 1 sales surged, saving Toshiba's flash memory business.
Without Xingyi Mobile's large purchases of Toshiba flash memory, Toshiba's future would be precarious.
It can be said that Oohashi Taichi both loved and hated the iPhone!
He hated Apple for abandoning Toshiba, yet still wanted Apple's super large orders.
This was the sentiment of all suppliers towards Apple, much like the concubines of an ancient emperor.
Both resentful of the emperor's fickle nature and passionately vying for favor!
"I understand Mr. Oohashi's meaning, and the Chairman understands it too."
Cui Hao picked up his teacup and said meaningfully:
"However, Apple needs strategic allies who stand firmly with Apple and support Apple. Only such allies can be Apple's partners and secure Apple's super large orders."
"This..."
Oohashi Taichi's expression subtly changed; he understood Cui Hao's meaning.
Could it be that Toshiba was being asked to choose between Xingyi Technology and Apple?
A choice between two, so domineering?
If so, then it would be a huge problem!
Seeing that Oohashi Taichi did not directly express his stance, Cui Hao was somewhat displeased:
"Mr. Oohashi, could it be that Toshiba looks down on Apple and doesn't want to be Apple's strategic partner?"
"Mr. Cui, you exaggerate."
Oohashi Taichi's expression sharpened, and he quickly said:
"Toshiba is naturally willing to be a strategic partner of Apple, but a businessman must value business reputation. After the initial five million sets of memory + flash memory, Toshiba signed another five million sets and a ten million set large order with Xingyi Technology. It would truly be difficult to break the contract midway... What if we wait until this cooperation ends?"
"Mr. Oohashi, are you joking with me?"
Cui Hao was so annoyed he laughed:
'Damn it, five million + five million + ten million, a total of twenty million sets!'
'Once your cooperation is finished, how can we cut off supplies to Xingyi Technology? How can we curb the hot sales of xphone 1?'
"Mr. Cui, businessmen must value credibility, we..."
Oohashi Taichi tried to explain further, but was directly interrupted by Cui Hao:
"Mr. Oohashi, this rhetoric is meaningless. You are aware of the current relationship between Apple and Xingyi Technology. It's either Xingyi Technology or Apple. It's impossible for Toshiba to profit from both sides."
"If Toshiba comes to its senses and abandons its cooperation with Xingyi Technology, then half of the upcoming iPhone 4s storage orders will be given to Toshiba!"
"Otherwise, Toshiba can forget about Apple's orders!"
"I..." Oohashi Taichi's face became extremely grim.
What you fear most, happens!
Cui Hao stood up and patted Oohashi Taichi's shoulder:
"Mr. Oohashi, Apple or Xingyi Technology? You're a smart person, you know how to choose!"
"This... Okay, this is a big matter, please give me some time to consider, Mr. Cui."
Cui Hao looked at his watch:
"It's ten in the morning now. I'll give you four hours."
"Thank you."
After sending Cui Hao off, Oohashi Taichi's face was ashen.
He immediately convened a high-level meeting:
"Just now, Apple's Greater China President came and demanded that Toshiba choose between Apple and Xingyi Technology."
"What does that mean?" All the executives were confused.
"Does it mean we have to abandon our future cooperation with Xingyi Technology and fully align with Apple?"
Oohashi Taichi waved his hand:
"It's not just abandoning future cooperation, but also abandoning current cooperation, directly breaking the contract and cutting off supplies to Xingyi Technology! If we do so, half of the subsequent iPhone 4s orders will be given to us. Otherwise, we can forget about Apple's orders in the future."
"This..."
Everyone in the room fell silent, then began to discuss:
"Apple is so overbearing, too overbearing!"
"They tell us to cut off supplies, and we have to cut off supplies. Who do they think they are? How can they do this?"
"Once we cut off Xingyi Technology's orders, not only will we lose tens of millions in large orders, but more importantly, we'll tarnish Toshiba's reputation. Who would dare to cooperate with us in the future?"
"Exactly, Samsung cut off supplies to HTC, which made Apple distrust them and choose LG's screens instead!"
"Moreover, our cooperation with Xingyi Technology comes with extremely high penalty clauses. Once we cut off supplies, the cost would be very high."
"But if we don't cut off supplies, we will completely lose Apple's orders and be kicked out of the 'Apple chain'. What should we do?"
"It's difficult, Apple is too domineering."
"A choice between two: choose Apple, get half of the iPhone 4s orders, lose Xingyi Technology's large order, suffer reputational damage, and pay breach of contract compensation."
"Choose Xingyi Technology, and subsequently be kicked out of the 'Apple chain'..."
"Neither is a good outcome, but I still suggest embracing Apple, after all, Apple is the super hegemon."
"Apple is indeed a super hegemon, but they also have many suppliers. For the iPhone 4s, they gave most of our Toshiba orders to Hynix! They'll do it again in the future!"
"Exactly, Apple is too overbearing. Once we compromise this time, we'll be completely at Apple's mercy."
"And once we cut off supplies to Xingyi Technology, we can forget about future orders from them. Even other mobile phone companies will worry about us cutting off supplies, deeming us to lack business reputation, and thus abandon cooperation."
"Losing business reputation means Toshiba loses its retreat. We would be completely at Apple's mercy, exploited!"
...
Listening to these words, Oohashi Taichi nodded:
"I understand everyone's points. Now, let's vote by a show of hands. Those who agree to cut off supplies to Xingyi Technology, raise your hands!"
After some hesitation, five people raised their hands.
Oohashi Taichi nodded:
"Those who oppose cutting off supplies, raise your hands!"
This time there were more, a full eight people raised their hands.
"Eight to five, so we oppose cutting off supplies and will continue to supply Xingyi Technology!"
Oohashi Taichi breathed a sigh of relief.
He thought the same way.
Apple still has Hynix as a supplier.
No matter what Toshiba does, at most they can only get half the orders, and in the future, Apple might cut their orders again.
This kind of thing just happened this year.
Oohashi Taichi dared not gamble!
Don't put all your eggs in one basket!
Subsequently, Oohashi Taichi dialed Wang Yi's number:
"Chairman Wang, there's something I don't know if I should tell you?"
Wang Yi smiled faintly:
"Mr. Oohashi, go ahead and speak."
"Okay, it's like this..."
Oohashi Taichi recounted the story.
Wang Yi frowned slightly:
"Apple is forcing Toshiba to choose one of two, and cut off supplies to Xingyi Technology? Heh heh, what sinister intentions!"
"Chairman Wang, please rest assured, we at Toshiba will not accept Apple's threats and do anything faithless. Since we've signed a contract, Toshiba will honor its commitment to the very end!"
Hearing this, Wang Yi smiled:
"Very good, Mr. Oohashi, you made a wise choice. In that case, let's sign another large order for ten million sets! From now on, Toshiba will be Xingyi Technology's strategic partner. For the orders Apple cut, Xingyi Technology will give you double!"
"Thank you, Chairman Wang, thank you!"
Oohashi Taichi was overjoyed.
Indeed, Wang Yi wouldn't let him make an effort for nothing.
Initially five million sets of memory + flash memory, then another five million sets in December, and ten million sets in January!
Now another ten million sets, adding up to a total of thirty million sets!
Perhaps the annual sales of the iPhone 4s could reach fifty or sixty million, but split with Hynix, Toshiba could at most get twenty million.
Now that Toshiba has secured a thirty million set large order from Xingyi Technology, it already surpasses siding with Apple!
Perhaps Xingyi Technology will place additional orders later; Apple simply can't compare!
"Chairman Wang, rest assured, Toshiba is absolutely Xingyi Technology's most reliable strategic partner. In the future, Toshiba will have first priority for Xingyi Technology's orders, and the prices will also be the lowest. For the latest batch of storage, we will reduce the price by another 20%!"
"Happy cooperation. xphone 1 is just the beginning. Subsequent large orders for Xingyi Tablet and xphone 1 pro will also prioritize Toshiba!"
"Thank you!"
"Thank you!" Oohashi Taichi was overjoyed.
With xphone 1 + Xingyi Tablet + xphone 1 pro, Toshiba will definitely be well-fed!
Even if it loses iPhone orders, Toshiba is not afraid; Xingyi Technology gives more!
Moreover, it won't harm its business reputation, and other companies will still be willing to cooperate with Toshiba.
This time, they bet right!
For a moment, Oohashi Taichi was in a great mood.
After hanging up the phone, Wang Yi's expression became solemn.
"What's wrong? Did something happen?"
Song Sining asked with concern.
Wang Yi nodded:
"Apple made a move, asking Toshiba to cut off our chip supply, to stifle our xphone 1."
Song Sining was furious:
"Such vicious tactics, Apple really is something. What did Toshiba say? They didn't agree, did they?"
Wang Yi smiled faintly:
"No, Toshiba broadened its path!"
"That's good!" Song Sining breathed a sigh of relief, calming down: "I just worry that Apple's malicious intent won't die. Having hit a wall with Toshiba, they might go to other suppliers and continue their attacks!"
Wang Yi nodded:
"It's very possible. We need to be prepared for this and get ready to counterattack!"
Subsequently, Wang Yi made a call to Jian Ziyan:
"Ziyan, you do this, this, and then this..."
"Understood, Chairman. I'll arrange it right away."
Soon, a piece of news surged to the top of trending searches:
[At the Global Mobile Congress, Xingyi Technology will release a major new product and re-sign a twenty-million-unit storage order with Toshiba!]
Seeing this news, Cui Hao's face turned green:
"F**k! Damn Toshiba, betraying Apple and choosing a path to ruin, fine, absolutely fine!"
"To abandon Apple's super large orders for tiny Xingyi Technology, Toshiba is foolish, extremely foolish!"
The more Cui Hao thought about it, the angrier he got.
He immediately called Oohashi Taichi:
"Mr. Oohashi, are you sure you want to choose Xingyi Technology? Betray Apple?"
Oohashi Taichi smiled faintly:
"Toshiba values business reputation and credibility, and is willing to engage in friendly cooperation with any partner on an equal basis."
"Fine, absolutely fine. Toshiba, you can forget about Apple's upcoming orders. No, you can forget about this quarter's orders altogether!"
Oohashi Taichi didn't care:
"If Apple does that, we at Toshiba express our deepest regret. However, just a friendly reminder, our orders for this quarter have already been signed. If Apple unilaterally breaches the contract, they will need to pay liquidated damages!"
"F**k!"
Cui Hao was furious, his face turned green.
Indeed, breaking the contract now would mean paying damages, making it not worth the loss.
"Mr. Oohashi, good, very good, excellent!"
Cui Hao was furious and directly hung up the phone.
But then, Cook's call came in again:
"Idiot, what happened? Didn't you lobby Toshiba to cut off supplies to Xingyi Technology? How come it didn't work, and instead Xingyi Technology placed additional orders?"
"Chairman, I..."
Cui Hao opened his mouth, then quickly thought of something:
"Chairman, Toshiba resents us for abandoning them with the iPhone 4s, giving eighty percent of the orders to Hynix. So they chose to betray Apple and fully align with Xingyi Technology!"
Hmm, Toshiba's full alignment with Xingyi Technology was due to Apple's previous abandonment, not because of my incompetence.
Cui Hao immediately deflected the blame!
Cook's mouth twitched, but he couldn't refute it.
Over thirty million sets of memory + flash memory for the iPhone 4 were supplied by Toshiba.
By the iPhone 4s, only over eight million were left.
It would be strange if Toshiba wasn't angry.
On the contrary, Xingyi Technology placed tens of millions of large orders, far exceeding Apple's.
"Alright, let's leave Toshiba at that. It was our strategic mistake. So, what are you going to do next?"
Cui Hao decisively said:
"Chairman, I'm going to Sharp. Since storage isn't working out, I'll try with screens. At most, half of the next-generation iPhone screens will be given to Sharp!"
Cook nodded:
"Okay, go ahead. I hope you can bring back good news this time."
"Yes!"
Cui Hao immediately rushed to Sharp's headquarters without delay.
Unexpectedly, Sharp's Chairman Asano Koji had already anticipated this and convened a high-level meeting:
"Everyone knows about the Apple and Xingyi Technology situation, right?"
"Yes, Apple forced Toshiba to choose sides, but Toshiba rejected Apple and informed Xingyi Technology. Chairman Wang, in turn, gave Toshiba another ten million set order!"
"Haha, that's hilarious, Toshiba has secured a total of thirty million storage orders from Xingyi Technology, almost matching the iPhone's total sales last year."
"That's right, while the iPhone is powerful, Xingyi Technology is not bad either. Even if a single xphone 1 can't compare to the iPhone, with the Xingyi Pad and Xingyi 2nd generation, all combined, they sell more than the iPhone."
"Exactly, choosing to embrace Apple won't get us many orders. It's better to stick closely with Xingyi Technology!"
"That's what Toshiba thought. I guess Apple's people will come to Sharp next. What should we do?"
"What can we do? Like Toshiba, we firmly support Xingyi Technology, even if we lose Apple's orders. No, Sharp never had many Apple orders to begin with."
"That's right, Apple has always used LG's screens and doesn't have much cooperation with Sharp. Even if we betray Xingyi Technology, at most we could get twenty or thirty million iPhone orders, and that would be for the next generation. But Xingyi Technology has already given us twenty million orders, and if we're like Toshiba and get another ten million, that's thirty million."
"Xingyi Technology is still more reliable. LG is iPhone's primary screen supplier, Sharp doesn't have many opportunities, so it's better to cling to Chairman Wang's leg."
"Moreover, once we cut off screens to Xingyi Technology, Toshiba, Hitachi, Sony, Kyocera, etc., can all fill the gap immediately! That would be Sharp's loss!"
"Especially Toshiba, which has long been eyeing Xingyi Technology's large screen orders. We can't court death."
"Right, we can't court death, we must cling to Xingyi Technology's leg."
"Okay, let's do it like this!"
"Heh heh, just as we were talking, Apple's Greater China President arrived, wanting to see me!"
Sharp Chairman Asano Koji smiled:
"I'll just send him away. Never mind, just say I'm not here, and arrange for someone else to deal with him casually."
"Right, Apple is too domineering, we can't indulge them. Xingyi Technology is better, developing rapidly. xphone 1, subsequent tablets, and even large TV screen orders, can all come to Sharp!"
"If that's the case, it couldn't be better. I'll call Chairman Wang first."
Saying this, Asano Koji walked to the next room and dialed Wang Yi's number:
"Chairman Wang, Apple's Greater China President came to Sharp, also to ask us to cut off supplies to Xingyi Technology. But I didn't see him, I just sent him away. Sharp's cooperation with Xingyi Technology will not be affected in any way, and Sharp is willing to be Xingyi Technology's eternal partner!"
Wang Yi was in a great mood:
"Thank you. Xingyi Technology's development also needs Sharp's support. Add another ten million sets of screen orders, including five million sets of 4.3-inch and five million sets of 4.7-inch!"
"Thank you, Chairman Wang."
Sharp's president was in a great mood.
Five million sets of 4.7-inch screens indicate that the large order for the next generation of Xingyi phones has also been given to Sharp.
They bet right!
If they had hesitated even a little, and believed Apple's nonsense, all the orders for the next generation of Xingyi phones would have flown away!
That was close!
"Chairman Wang, for the 4.3-inch screens, Sharp will again reduce the price by 20%. For the 4.7-inch screens, we'll give them to you at an 80% discount from the market price!"
"Great, happy cooperation!"
Wang Yi said with a smile, appreciating suppliers who knew how to adapt.
(End of chapter)