Recently, the "High-end Management Personnel Training Course on Business-Finance Integration" jointly organized by Yonyou Network Technology and Xiamen National Accounting Institute officially commenced. This training course aims to serve the innovation of corporate financial management and talent cultivation through the joint creation of industry, academia, and research, helping enterprises implement business-finance integration and become world-class.
Wang Qiao, the Chief of Finance Dept of Xintai Industrial Group, the production base of XGL Group, gave a lecture entitled "The Pioneer of the First Domestic "Amoeba Management" - The Path of Digital Transformation of Business-Finance Integration".
XGL Metallurgical Co., Ltd. was established in 2007 and has now developed into a large-scale, cross-regional, and group-based private ferroalloy production enterprise integrating production, research and development, sales, and trade. The company mainly produces high-carbon ferrochrome. The company is headquartered in Taiyuan, Shanxi, and has 10 production plants and 36 furnaces in Ulanqab, Inner Mongolia. At present, it has industrial parks in South Africa and Zimbabwe. This year, the annual output value in China is expected to reach 2.8 million tons, ranking first in the domestic chrome iron industry and among the top three in the world. Next year's output value is expected to reach 22.5 billion yuan. In addition, XGL Group and Shanxi's famous state-owned enterprise - Baowu TISCO Group have jointly established a production base with an advanced high-tech capacity of 800,000 tons. XGL Group has purchased a 40-million-ton chrome mountain in South Africa and is building a special metallurgical zone for the whole ferrochrome industry chain in Zimbabwe.
"Nurture the entrepreneurial spirit of China’s ferrochrome industry, proudly bearing the steel backbone of our nation". In order to achieve the corporate vision, XGL takes the core values of "cultivating oneself to help others and seeking profit through righteousness" and the positioning of "mine + factory", and gives full play to the advantages of Inner Mongolia, Seize market opportunities, develop extraordinarily, develop cyclically, develop scientifically, and build a green, ecological and environmentally friendly ferrochrome enterprise with international competitiveness.
In order to allow students to deeply understand XGL 's leading practices in the integration of industry and finance in the era of intelligent accounting, under the leadership of Ms. Wang Qiao, the chief financial officer of XGL Group, Let's get to know the first domestic "amoeba management" leader to share - industry and finance integration of the road of digital intelligence.
Wang Qiao, the chief of Finance, analyzed XGL Group's leading practices in the integration of industry and finance under Amoeba management in three parts. Part 1: The exploration of Amoeba management; Part 2: How Amoeba's system is implemented; Part 3: XGL's integration of industry and finance.
01 Amoeba's explorationAmoeba is actually a kind of natural amoeba. Its characteristics are strong adaptability and strong continuity. Therefore, Kazuo Inamori, the saint of Japanese management, introduced this characteristic of Amoeba into corporate management to obtain today's management model.
XGL Group's Amoeba management model is mainly to formulate their own goals with each Amoeba leader as the core. The main purpose is to mobilize the enthusiasm of employees, let the front-line employees actively participate in the management, and rely on the incentive mechanism of Amoeba to make employees take the initiative. Propose corporate issues and take the initiative to solve them.
The essence of Amoeba is "decentralization of quantification", with the advantages of full participation,Stimulate Internal motivation; improve enterprise efficiency, maximize sales and minimize costs; reduce enterprise operating risks; be flexible and adaptable to the market.
Despite these advantages, XGL Group has also gone through a long period of grind and progress on the road of exploring Amoeba. Since the Amoeba business model started in 2012, the main problem to be solved is product cost control. In 2013, we started to study all over the country, got to know the theory of Amoeba, combined the management of the group with the theory of Amoeba, and thus began to establish the management of Amoeba from the system. In 2014, the Amoeba was successfully implemented in the production link and gradually expanded to the whole company to full Implement Amoeba management. However, Amoeba management still relies entirely on financial staff statementStatistics, not only slow speed, but also the leadership of the information is not timely. Therefore, after hard work, we officially cooperated with Yonyou Network Technology in 2016 and began to establish an information system for Amoeba application. Through about a year, XGL Group has realized the upgrading of Amoeba management. From 2017 to 2020, the three-year period has effectively integrated the Amoeba operation mode with the strong control mode. In the process, it was found that Amoeba's flexible cost reduction and efficiency increase can stimulate wealth creation and stimulate employees' enthusiasm. However, due to too many uncontrollable factors, Xintai Industrial Group was established in 2020. In addition, on the road of exploration, XGL implemented a five-step method for the operation mode of Amoeba. The first step is to divide the entire group into small Amoeba; after the division, a closed loop should be formed to establish our internal value chain; through the third step, the budget system is used for guidance, and the budget system of "Tianlong Babu" was also proposed at that time; then the fourth step is to settle accounts and carry out the most basic accrual system; the final step is to motivate, which is divided into daily motivation, monthly motivation, quarterly motivation, and annual motivation. In addition, the characteristics of Amoeba include building a multi-level Amoeba organization, internal marketization, an internal price system combining market price vs. constant price, closed-loop management, visual management and incentive Cashing. XGL Group, through these experiences and the characteristics of Amoeba, jointly constitutes the road of Amoeba's exploration, showing that enterprises continuously explore and improve the Amoeba model in practice to promote the sustainable development of enterprises.
The company promotes the Amoeba system: one set of business, two sets of accounting, and daily operation. The main idea is to start from business documents, to analysis tables, and to achieve traceability.
Profit comes from indicators. Our important indicator is a profit value layer. The profits of each Amoeba can be traced. For example, if Xintai Ba does not make money as a whole, we can click in to see which furnace does not make money. AI input can analyze it. The internal pricing of the system and the internal value chain of the group are realized in the form of forms in the system.
This is to achieve a cross-organizational settlement of Amoeba's operation - that is, purchase and sale, so management accounting has designed a cross-organizational settlement. The most important thing about Amoeba's internal value is to achieve market price. In this process, it is gradually realized with the Amoeba system.
XGL Group's integration of industry and finance has basically reached the L4 stage, supporting strategy, supporting operation and supporting business. The future development direction of finance is financial AI, which will achieve a self-learning financial system.
From the perspective of XGL Group, the integration of industry and finance is approached from four aspects.
1. To become a supporter of the company's strategy and ensure the implementation of the company's strategy.
2. To become a supervisor of service value and value creation based on risk control.
3. To become a provider of investor information.
4. To become the most trusted partner of the business.
The first step in achieving the integration of industry and finance is to transform finance and establish a shared platform, which is financial sharing. Therefore, the first step for XGL Group to transform its finance is to cooperate with Yonyou Network Technology and establish a shared platform. The second step is to establish a reporting system, combining constant prices with actual prices, and simplifying accounting. Wang Qiao mentioned that the reason why the Financial statements can be issued immediately after the end of the business is the formulation and use of the budget. Whether it is Amoeba or the integration of industry and finance, the mechanism is an important tool. Through dynamic adjustment, the constant price and the actual price are combined with each other. This is the first application of the mechanism made by the integration of industry and finance; then the rules are optimized, because there are various mechanisms, and various problems will occur during its operation. In this process, the rules are continuously optimized; finally, the system guides, and the explanation of the budget rules is revised in time every year. For the problems raised by each Amoeba, organize discussions, reach a consensus and make revisions, as well as supplements to internal pricing and other management systems. This all belongs to the work of XGL Group's integration of industry and finance.
Therefore, the mechanism is the magic weapon of Amoeba, but flexibility is the soul of the mechanism!
In addition, the risks of industry-finance integration also need to be paid attention to. Risk early warning is an important means of risk control, and a red-yellow-blue early warning mechanism is established through the informatization system. Generate standard values. When the indicator reaches the red alert, the early warning is directly sent to the group, and in the orange zone, the early warning is directly pushed to the factory director, and finally the blue zone is directly to the person in charge.
Another aspect of risk is cost control. According to the reimbursement organization, department, and expense item, flexible control is carried out, and the annual budget expense is decomposed into 12 months, and a full-year rolling budget is carried out. The group leader only needs to approve the expenses outside the budget, which reduces the approval process. When conducting the full-year expense analysis, it can be analyzed according to the budget and outside the budget.
Finally, there is automatic queuing for payment. The group and informatization have developed automatic queuing for payment. After the goods arrive, the invoice is opened and the account is hung, and it is included in the queuing sequence. The cashier will automatically push the payment order when it is due. The cashier will check the payment order and pay it if there is no problem, avoiding the communication link between the business personnel and the supplier. Queuing payment is a relatively good case of risk control for XGL Group.
As the world's most competitive ferrochrome producer, XGL Group has implemented the Amiba business model and built a multi-level Amoeba organization in order to enable the organization to flexibly adapt to market changes and promote internal marketization and transparency in the operation process. By cooperating with Yonyou Network Technology to build an Amoeba system and establish an information platform, daily operations can be realized. Based on the five-in-one Amoeba industry-finance integrated system of organizational system, internal value system, budget system, responsibility accounting and incentive mechanism, the integration of business and finance is realized, the overall operational efficiency of the enterprise is improved, and the whole life cycle is realized. Control, fully stimulate the vitality of the enterprise.