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2022-07-28
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Exploring the path of caterpillar: innovation, the cornerstone of success

exploring the path of caterpillar: innovation, the cornerstone of success

China Construction Machinery Information

the two ends of the paper pass through and straighten from the paper holder. "We are trying to achieve self subversive innovation in our own way, rather than being subverted by the innovation of others." At the 2015 annual general meeting of shareholders, Douglas oberhaman, chairman and CEO of caterpillar, made such an interpretation of innovation. The innovation referred to by oberhaman is far from just technological innovation, but also includes organizational innovation, management innovation, service innovation, etc

after reading the book "the way of Caterpillar", you will find that the development history of caterpillar is actually a history of innovation

In 2006, benjaminholt, one of the founders of caterpillar and the inventor of the first crawler bulldozer, was selected into the American inventors' hall of fame in recognition of his genius, inspiration and entrepreneurship

as early as 1904, Holt successfully developed the first steam crawler bulldozer. Two years later, he developed the first natural gas crawler bulldozer. In 1925, Holt manufacturing company and best company merged to form caterpillar bulldozer company. Subsequently, caterpillar took the lead in launching diesel powered crawler bulldozers to the market. For many years, caterpillar has followed the footsteps of its founders and introduced breakthrough solutions in turbocharging technology, electronic control system, fuel system, drive system, etc., with the purpose of promoting customer success

either innovate or be eliminated. During the "interconnection +" period, several positive signals have appeared in the economic operation of China's extruder industry, and caterpillar is keeping pace with the times

in February this year, Caterpillar's first data innovation laboratory was established at the University of Illinois in the United States. Its purpose is to promote faster, better and more efficient innovation. In April this year, caterpillar announced that it would establish an analysis and innovation division to better use data analysis to promote innovation and provide support to customers. In 2015, Caterpillar also defined and carried out 13 major technological innovations, including the establishment of monitoring facilities and the development of next-generation predictive data analysis

oberhaman has a saying that reveals what caterpillar has done to comply with the trend of the times in terms of technological innovation. "Caterpillar has a feature of 'big' -- large trucks, large equipment and large engines, and big data is the next 'big' on our list.". Among the industries currently served by caterpillar, caterpillar has the largest number of connected equipment and engines in the world. Therefore, oberhaman said, "beyond the scope of IOT, caterpillar has developed into a big data network"

caterpillar has long-term investment in R & D and innovation. Even in the event of economic crisis, the R & D investment will not be discounted. Chenqihua, its Chinese leader, introduced that caterpillar set up a world-class R & D center in Wuxi, China in 2009, when the weather resistance asa2009 coincided with the global economic crisis. After several phases of expansion, major facilities such as engine R & D laboratory and electrical laboratory have been built here, with a total of more than 900 R & D engineers. It has become one of Caterpillar's flagship R & D centers in the world

"in our industry, caterpillar has the largest R & D center and the highest level. We are really doing R & D." Chenqihua said. Every year, caterpillar invests more than 2billion US dollars in global R & D and holds more than 15000 patents that have been approved and are awaiting approval

at caterpillar, everyone is clearly aware of the importance and urgency of development and innovation. Innovation is not only a new device and product, but also related to almost every aspect of business processes, management processes, work, individuals and communities

it is innovation that has guided caterpillar through some difficult years. From 1980s to 1990s, caterpillar faced a series of life and death crises. By reshaping the internal structure, innovating the management mechanism and adjusting the production mode, caterpillar has formulated a long-term path of sustainable development

caterpillar originally adopted a hierarchical and functional structure: the company includes manufacturing, engineering, pricing, human resources, marketing and other departments. The bottom managers must get the instructions from six or seven superior leaders before they can implement a certain work. Since 1985, under the leadership of georgeshefer, the then leader, caterpillar has started to innovate its organizational structure. 17 business units replaced the abolished General Services Centre. The company evaluates the performance of the Department by net profit, return on assets and various quality evaluation indicators

In 1986, Schaeffer launched the US $1.8 billion factory modernization plan - "the factory of the future". The plan reorganizes the whole production process, from research and development to the fundamental transformation of the manufacturing plant, and no longer takes the road of mass production

the management innovation of product quality belongs to the Six Sigma project implemented in 2001. Today, nearly one third of caterpillar employees are directly involved in the implementation of Six Sigma. The remarkable effect is exemplified by the fact that in 2003, the assembly cost of each set of machines at caterpillar's plant in North Carolina was reduced by 25%, but the output still increased by 26%

remanufacture and financial leasing are major innovations of caterpillar in the service field. Caterpillar has been engaged in remanufacture business for more than 40 years and has built remanufacture into a sustainable emerging industry. Caterpillar began to expand its financial leasing business in the 1980s, providing global customers with optional equipment financial services. In 2004 and 2005, caterpillar became the first company in China's construction machinery industry to provide financial leasing services, and one of the few manufacturers to carry out remanufacture business in China. The implementation of these two services has provided a fresh example for the all-round development of China's construction machinery industry and promoted the upgrading of China's industrial service field

in China, Caterpillar's innovation still has deeper thinking. For chenqihua, the innovation he is considering must adapt to China's national conditions and can only use the "skylight" time at night for construction, that is, the innovation he calls "grounding gas". "What kind of innovation model can adapt to the short-term adjustment of China's economy? What resources and innovative technologies does caterpillar have to give customers better support? How can we establish partnership with some large central enterprises with innovative thinking?" It is not difficult to see that these problems combine caterpillar's innovation with regional characteristics, and well reflect the local practice of the concept of "inside and outside the equipment" innovation proposed by Douglas oberhamann, that is, the simultaneous breakthrough of the equipment itself and its external environment

"innovation is the way to keep our foundation evergreen." It is this constant spirit and open attitude that has made caterpillar a 90 year old company

comments

in the fully competitive Chinese construction machinery market, if you want to "dance with the dragon" for a long time, you will fall off the stage without innovation. It would be too limited to only understand innovation as caterpillar has the next generation powertrain and the company's forward-looking "big data" and other product R & D innovations. In the company's strategy, the reconstruction of internal structure, the reform of management mechanism, the adjustment of production mode, and the improvement of production and service since the 1980s are all innovative topics. Being good at dancing is rooted in innovation. Facing the world stage, only innovation and self-improvement can break the barriers of competition

at present, local brand enterprises have some abilities to expand the market and integrate global resources, but the encouragement and protection of various innovations by enterprises and the whole society should not be ignored at present, because there will be no bright future

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