It was a sunny June 29th morning and our office colleagues all felt quite motivated by a spirited and inspiring voice. Mr. Ping Cheng, on his first day of assuming the job of CEO, kept his usual early working schedule and had a teleconference with colleagues around China, reviewing updates on projects. For the past 10 years, Mr. Ping Cheng served as the president of Delta China. He is credited with building Delta's massive manufacturing base in China from scratch and establishing benchmarks for operation and quality control.
"It is a tremendous responsibility to succeed Chairman Mr. Yancey Hai as CEO of Delta Group. On the other hand, we decided on our long term strategy of system integration and a brand business two years ago. Now, we just need to follow through on the agenda," said Mr. Cheng. He spoke in the same calm way about the focus of development and the keys to success for Delta Group. His unhurried but resolute tone, nevertheless, revealed his dedication to his new position.
Focus and Deliver—Guiding principles for the next stage of development
On Delta Group's next stage of development, Mr. Ping Cheng pointed out, "The team has just defined our strategies for transformation, yet we still have a lot to do in technology advancement, system integration, brand communication, strategic marketing, regional implementation, and more."
In 2010, spotting a shift in global trends as well as in market demand, the management team launched a plan to "move from key components towards system integration and solutions". At the end of 2010, Delta Group re-categorized its business into three sectors: Power Electronics, Energy Management, and Smart Green Life. In other words, Delta will gradually extend its business scope from its core competencies to new opportunities and keep focusing on strategy execution and long-term development. "To put our goals into practice, execution is the key,” said Mr. Cheng.
At the 2012 Delta Group Strategy Meeting, Mr. Yancey Hai highlighted four key execution tasks: reinforce current market leadership in ODM, develop the brand and solution business, grasp market timing and focus on profits in new businesses, and develop and cultivate regional markets. For the new management team, these key points will be the guiding principles for daily operation and resource allocation.
Responsibilities of regional operations
"In the process of moving towards system integration and solutions, execution at the regional level is of utmost importance. In the past, our ODM business relied mainly on the business units managing the demands of key accounts around the globe. It is not feasible anymore.
We need to understand local markets before we can develop proper solutions that meet their demands," explained Mr. Ping Cheng, drawing on his China experience in managing the channel and solution businesses over the past years. "Delta Greentech China features a variety of integrated solutions in telecommunication power systems, industrial automation and more, that are all built and based on client needs."
Mr. Cheng further elaborated: corporate functions will focus on building foundations, identifying problems and demands, developing a comprehensive set of tools and providing backstage support for business units and regional offices. Of course, their tasks also include corporate image management as well as brand communication of Delta Group. Business units, on the other hand, are in charge mainly of planning core technology and blueprints. Working with manufacturing sites, they could then apply these capabilities to develop competitive products. And through feedback from frontline regional operations, long-term trends and client needs can be identified and managed. Finally, regional offices will drive the development of system integration and solutions. Combining their sales and manufacturing prowess, they could compete vigorously in the market for leadership.
"In order to achieve sustainable growth, our business groups and business units, regional offices, and corporate functions must cooperate and work closely under the direction of the management team." said Mr. Cheng. He also emphasized that the roles and functions of many units need to change in the process of developing system integration and total solutions.
Differences in opinions and issues to be resolved will certainly arise between the manufacturing sites and business units, as well as between corporate functions and internal clients (BG/BU or regional offices). “We need to be proactive in understanding needs and coordinating communication. Fostering a positive attitude in the workforce towards change is also very important to smooth the transition process,” said Mr. Cheng.
Simultaneous development of B2B and B2C businesses
"Delta is a very special brand. Our founder Mr. Bruce Cheng established Delta's corporate mission as: ‘To provide innovative, clean and energy-efficient solutions for a better tomorrow'. For the past four decades, this mission has served as guidance for Delta Group's development, including progress in our core competencies, R&D, as well as product design and manufacturing capabilities. Even our initiatives for corporate social responsibility are based on these ideas," said Mr. Cheng. He pointed out that the future development of Delta Group will follow this same path.
In the past, Delta's business involved a client base of just a few big accounts that did not require large communication activities. However, the next step in Delta's development will focus on system integration and solutions. In these businesses, corporate image and brand awareness will play vital roles. To achieve that, we can build on some of our strengths. "Delta has always had a strong dedication to fulfilling its corporate social responsibility and the issues that Delta devoted its resources to are aligned with its corporate mission. As a result, Delta is well-known to the general public and can more easily establish a positive brand connection and brand identification. This is where Delta stands out in the business community." said Mr. Cheng, who was Chief Branding Officer until last year. He emphasized that developing consumer products will require the support and the endorsement of a strong and well developed Delta brand.
Smarter. Greener. Together.
"Our brand message is: 'Smarter. Greener. Together'. Delta Group aims to provide intelligent, eco-friendly and energy-saving products to create a better tomorrow together with our customers," Mr. Cheng explained. "In the past year, we have worked hard to realize our brand promises on the global stage and Delta has completed many large-scale system solutions in collaboration with local clients and governments. For example, Delta has been granted a subsidy from the U.S. Department of Energy to develop a standard EV charging solution. We have also worked with a leading fashion chain store in Europe on an energy-saving commercial building, and this is a learning process for Delta. In the future we will see more successful cases in every field," said a smiling Mr. Cheng.
Delta's brand message is the synthesis of global brand survey results and the input of Delta's management team. “Smarter” means continued innovation in technology to satisfy clients' demand of advanced product capabilities (efficiency and reliability). “Greener” signifies Delta's decade-long dedication to clean and energy-efficient solutions for a better tomorrow. “Together” highlights Delta's long-term partnerships with clients and their emotional expectations of the Delta brand such as caring and bonding.
Mr. Cheng added, "A brand message is more than a message. It is what we ask of ourselves and our promises to all stakeholders." The brand message will work only when all our colleagues bring it to their workplace and put it into practice there.
Delta holds the keys to unlocking market opportunities
Delta is strong in industrial automation, LED lighting, and power systems, all key elements to the development of China's industrial and consumer sectors. Delta Group has established a strong global position. After cultivating the China market for almost 20 years, now is the perfect time for Delta to move to the center stage in China. Delta is recognized for its capable management team and an efficient workforce that shares Founder and Honorary Chairman Mr. Bruce Cheng's sincerity. This truthfulness has helped Delta build and maintain long-term partnerships and the trust of its clients. The combination promises the best opportunity for Delta.
Mr. Ping Cheng said, "Delta is fortunate to have a cooperative team, sound and stable operations, capable business units that operate like a quarterback controlling the field, and regional operations that play the role of running backs to develop new markets”. He continued, “In the future, as OEM/ODM market growth slows, system integration and solutions will be our primary areas for development. We need to deepen our understanding of our clients. Regional operations must assume the role of the driving engine. Business units will work closely with regional operations, making the most of business opportunities.
With a subtle mixture of humility and ambition, Delta Group's new CEO, Mr. Ping Cheng talked about the exciting work he is doing. In addition to the solid and humble personality we are familiar with, Mr. Cheng now projects a refreshing depth in thinking. With unusual breadth and vigor he will lead Delta to seize new opportunities for growth and transformation.
"To put our goals into practice, execution is the key,” says Mr. Ping Cheng.
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