Becoming the richest man starts with making complaints
Chapter 36 Liu Jun’s strategy
Cao Shen slumped down in his chair, pulled out the investment letter of intent given to Liu Jun, and found Liu Jun's mobile phone number.
"System, help me call him from the landline."
"Dududu——"
"Hello, Liu Jun." Liu Jun's voice came from the phone. The image of the man in the black sweater leaning forward and staring at him with bright eyes became clear again.
"Hello, I'm Cao Shen."
"Ah! Mr. Cao of Tongcao Technology?
Hello, Mr. Cao!
I've always wanted to contact you, but Mr. Zhang told me that you were very busy, so I didn't have the nerve to bother you.
Thank you for your support of Bianhe Semiconductor! "
Cao Shen patted his chest. Fortunately, he didn't give his cell phone number...
"It should, it should! Mr. Liu, I have a question to ask. Is your time convenient now?"
"Mr. Cao, tell me! It's convenient!"
Liu Jun was still working overtime in the office and was eating instant noodles. He quickly put the bowl aside.
Use headphones to connect the phone so you can hear clearly and make long calls easier.
"I saw in your business plan that the next product is an H.264 codec chip, which is also based on MIPS architecture.
If this chip is released in the third quarter of this year, it will be considered a mid-to-high-end chip on the market. In what direction do you plan to apply it? "
Liu Jun pondered for a moment:
"Mr. Cao, I have an immature idea and I would like to hear your opinion."
"Oh? Okay, let's discuss it."
"I want to do the security video surveillance market."
Cao Shen's heart skipped a beat. Was he thinking right?
Suppress your excitement, it's not the right time to express your opinion.
Liu Jun has said that this idea is not yet mature. What if he thinks it is wrong and wants to change it?
Don't be affected by yourself.
So Cao Shen calmly said:
"Mr. Liu has been working in the low-end consumer electronics market before. Why do you want to cross the border? There is a big difference between the two sides.
"Well, that's true. For consumer electronics, just make a product, but security video surveillance is a complete system, and the product is just one part of it, so there are more things to consider.
Mr. Cao, that’s what I’m thinking about, and you can also help me with my advice.
More than 90% of current video surveillance front-end cameras are standard definition, but the current trend is from standard definition to high definition.
A key problem arises here. High-definition video files are very large, which puts huge pressure on transmission and storage.
H.264 compression technology has become a necessity in this conversion process. I think there is an opportunity here. "
This understanding is the same as what Cao Shen thought before, but the idea must be implemented, otherwise it is just a thought.
So Cao Shen asked:
"Well, theoretically there is indeed an opportunity, but now the security video surveillance chips are dominated by American manufacturers, especially the high-definition ones, which are high-end products.
Bianhe is a start-up company after all. How do you plan to get involved? "
Security and waterproofing are already very deep. A start-up company that is facing bankruptcy every minute still has to make high-end products. American manufacturers also have mature solutions. Why should customers choose you?
Liu Jun was not dissatisfied because of Cao Shen's doubts. Instead, he said even more enthusiastically:
"Mr. Cao, you have asked a key point. This is also a question I have thought about for a long time. Please give me your opinion.
In the current field of security video surveillance, not only are the front-end cameras standard-definition, but the entire system is an analog system that uses coaxial cables for transmission.
Coaxial cables can only transmit analog signals, and the signals will attenuate over distance.
This means that even if you switch to a high-definition camera, the analog signal generated by the CCD sensor in the camera must first be converted into a digital signal and then compressed using a codec chip.
After compression, the digital signal needs to be converted into an analog signal before it can be transmitted through the coaxial cable.
After it is transmitted to the back-end digital hard disk recorder DVR, the DVR also digitally converts and compresses the analog signal before storing it.
During the entire process, the image signal is converted three times, each time causing varying degrees of degradation in image quality, and loss during long-distance transmission.
This leads to the fact that although you replace the front-end with a high-definition camera, the results obtained are lossy.
"So, you're going to make a webcam? Not using coax but Ethernet?"
Yes, IP cameras will become a trend later in the original world.
But judging from the timing, Liu Jun undoubtedly thought much ahead of time.
Cao Shen remembers that in the original world, it seemed that around 2015, the use of IP cameras in the field of security monitoring slowly became popular.
"Yes, Mr. Cao, you are so sensitive!" Liu Jun was obviously excited. His idea was very new, and Cao Shen was the first to point it out immediately.
"Mr. Liu, your H.264 is already a high-end product. Now that the idea of making an IP camera has been updated, will it be more difficult for security manufacturers to accept it?
Moreover, 90% of the current security video surveillance market is an analog system. Both users and industry chain suppliers have become accustomed to this set of things.
Especially various suppliers, they are considered vested interests.
For example, those who lay cables, those who do coaxial cabling projects, those who provide scraps, and those who do the entire backend system.
If you do this, you're taking away someone else's cake.
Although technically this is a great trend.
But many times, business success is determined by the market and not just by technology. "
It is very difficult for one person, especially a small start-up company, to persuade the entire industry to follow your lead.
Revolutionaries, many more died on the beach than succeeded.
Although Cao Shen is a person who likes to cause destruction and change the situation.
However, the more this happens, the more we need to take advantage of the situation.
Just like rebellion, the right time, right place and right people are indispensable.
Judging the right time, choosing the right location, and winning over people are the most interesting parts of this.
"Mr. Cao, you are so right!" Liu Jun once again admired Cao Shen for having such a keen business insight and being so familiar with market rules at the age of only his early twenties.
What a monster back wave!
Cao Shen is so lucky to be his own shareholder!
"This is how I think about this issue. The current market structure of security monitoring is dominated by Haiwei. The remaining second-placed companies, Daxia and Youge, are far behind Haiwei.
There is one status difference between Daxia and Youge.
So, I plan to work with Yogurt first.
First, as the third largest player in the industry, it is not as difficult to deal with as the leader.
Secondly, their desire to become number two is very strong and they will be more aggressive in trying out new products.
Thirdly, the first launch of high-definition IP cameras is an advancement in technology for the third place. "
"Well, those who make products can't do well in the market, but if the product's technical capabilities are strong, it can improve its performance. But how do you plan to break into the third-place supply chain?" Cao Shen asked.
Liu Jun had thought about this issue before, so he talked about it:
"We have carefully made a model. Although we use high-definition cameras, the cost of a single camera has increased.
However, the wiring cost of traditional analog systems is very high. Every time a line is opened, a line must be pulled to add the same camera position. The cost of wiring is three times that of Ethernet.
Therefore, including wiring costs, the IP camera system and the analog system can cost the same, and the later maintenance costs are much lower.
Nowadays, many new buildings are not equipped with coaxial cables, but network cables.
These are naturally already laid out wires, making it extremely easy to install the camera.
In addition, we use MIPS architecture, which can make the camera cost lower than that of ARM architecture.
All in all, using our products or even the entire system is 15% cheaper for the same number of camera positions, and one HD camera can actually hold up to at least three SD cameras. "
Cao Shen smiled: "You are trying to win over the third person, seduce the second person, and force the first person."
"Yes, that's the strategy!
In this way, we will have cases in Bianhe, and they will be future-oriented, high-end, and mature things.
At that time, Daxia, as the second-placed player, will not be able to sit still and will at least give us an opening to do it.
In this way, Bianhe can obtain ticket qualifications in the field of security video surveillance.
IP cameras are our stepping stone. As long as we get the tickets, what we really want to ship in batches are cameras and chips in DVRs for the traditional market.
After all, this market has the largest shipments. "
"Prove your strength through a high-end new thing, and then reduce the dimensionality to eat the biggest cake. This curve is a great way to save the country!" Cao Shen thinks Liu Jun is a very good person.
“Yes, if small entrepreneurial companies want to break into the mature system, they have to take a roundabout way.
From a small market where you can prove yourself, stab a hole in it and let the blood flow out!
Tear the hole open, tear it wide!
In addition, we have written a set of intelligent analysis algorithms for license plate numbers. Although TI, the current leader in security chips, also has this algorithm, it uses DSP for calculation.
Our chip will adopt the MIPS+IVE architecture, and the algorithm will be sealed in VIE, an intelligent video analysis acceleration engine, for hard decoding, which is faster than DSP and can better achieve real-time monitoring and warning feedback.
In the vertical market of security video surveillance, we can do better than TI in terms of cost, power consumption and computing efficiency.
If this license plate number recognition is done using software, we calculated that a signal would cost 6,000 yuan.
We integrate this into the chip, which is equivalent to free of charge. "
"So, this is your immature idea..." Cao Shen wanted to complain from the bottom of his heart for the first time.
"Ah, yes! I have immature ideas. Mr. Cao, please give me more advice."
"I think it's good. Once our agreement process is completed, I'll send you the money as soon as possible!"
You have product planning, technical reserves, and market strategies...
I……
It seems I can only provide money...
Cao Shen hung up the phone and patted his chest, feeling calm!
Sure enough, things are done by people, and if you want to succeed, you have to be awesome.
A great person will find the right time, favorable circumstances, and win over people.
"System, do you have the H.265 code?" Cao Shen felt that it was rare to meet such a person, and he hoped to push him again.
【Yes, I have】
"How to redeem?"
——————
Thanks to 20190513222650617 for the reward and book list.
More updates on weekends!
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