Build innovation system
Push forward market-oriented reform of subsidiaries
China Unicom implements classified management, authorisation and evaluation for subsidiaries with innovative business. We apply different management modes according to the different circumstances of each subsidiary in the innovative business, and promote alignment of responsibilities, power and rights. We not only provide innovative business subsidiaries with adequate nurture, but also offer space for them to grow, so as to help them become real market participants. We procure that Zhiwang Technology Co., Ltd. and WO Store Technology Co., Ltd. uphold the governance of the board of directors, and established operation and management decision-making mechanism centring at “(general meetings of) shareholders – board of directors, (board of) supervisors – operation and management level”. Meanwhile, the Group delegates special powers in investment, financing, employee compensation and marketing, and gradually establishes a market-oriented operation mechanism which features distinct ownership, clear powers and responsibilities, independent operation and self-financing of profits and losses.
Explore the PPP mode
In order to achieve competitive advantages in the industrial Internet market, China Unicom tests the implementation of the PPP mode. The core purpose of PPP mode is to seek business franchise rather than pure participation in market competition, to seek actual control over operation rather than pure gain from financial investment, and to seek long-term operating income rather than short-term profits from projects. By building a national “Internet+” top level project design team, focusing on project implementation demand in third- and fourth-tier cities, and establishing an integrated team of “top level project design + implementation solution + system integration + service provision”, China Unicom can meet differential demands of various local governments. In the future, pilot tests will be carried out in some provincial regions gradually.
Note: PPP (Public-Private Partnership) refers to the long-term partnership between the government and social capital where profits and risks are shared by means of franchise, service procurement or equity cooperation, etc. in order to enhance the ability to supply public goods and services, and to increase supply efficiency.
Set up an “innovation and venture” platform
Under the guidance of the national strategy of innovation-driven development and “innovation and venture”, the Company has established an “innovation and venture” system that focuses on its main business, is based on its innovative capability platform, centres on cooperation and mutual benefits, and is interconnected both internally and externally. It includes three core platforms:
- Internal innovation incubation platform: the Company launched a “WO Maker Plan”, and set up special zones to support the ventures of employees relying on the open resources of the incubation platform. There were a total of 416 employee-initiated project applications in the first batch, among which 35 projects successfully entered incubators.
- External capital investment platform: the Company carried out external cooperation through a “incubation services + investment platform” mode established by China Unicom Innovation & Venture Investment Co., Ltd. Investments in 11 projects have been completed and settled, among which two have been listed on NEEQ, six have completed a new round of financing with unrealised gains of 1.5-9 times, and two have reached exits with an average annualised return of 100%;
- Open platform for innovative ability: various innovative resources were pooled together by the platform, which was fully open to social entrepreneurs. It greatly lowered innovation costs and provided support to public innovation.