The pneumonia epidemic is heating up, and primary and secondary school students are postponed to start school, driving the home economy to heat up. The share price of game stock Wang Xixiang is also close to the 600 yuan mark. But behind this brilliant transcript, it is actually the quenching process of two major transformations. The following takes you back to its breakthrough story to see how this game company breaks up and reorganizes through the organization to survive the dilemma of revenue cut and senior talent loss.
Open "Three Missing One", star characters of Wu Qongxian, Cai Kangyong, and other Q version game characters will play mahjong with you. Evergreen online games currently have about 500,000 daily active users. The popularity does not decline due to the age of the game, but also hits a record high.
It comes from Gao Xiang, the king of Taiwanese casual game-type online games. If you add up all of the company's casual gaming games, the number of unique active users in Taiwan every day is close to 1 million!
Spreading the financial report, although last year's revenue and net profit fell slightly compared with the previous year (see the chart below), it has earned a share capital for three consecutive years of earnings per share (EPS), and continues to be the king of earnings per share for the gaming industry. More optimistic, this year's net profit will reach a new high of ten years, relying on the successful transformation of the mobile game sector.
However, what the outside world cannot see is the quenching process of the two great transformations.
Experience hardware cuts and mobile games
At the worst, "less than half of the business is left"
In the 30th year of its establishment, the elephant elephant actually started from hardware. In 2000, China rectified the entertainment industry. The elephant elephant game machine and dancing machine were cut in half and full inventory. That year, Xiangxiang decided to enter PC game and online game software development, becoming the only game company in Taiwan with products across hardware and software.
"At that time, there was no money or technology, but it was really an undead cockroach," recalled Jiang Shuncheng, general manager of Wuxiang. However, after going through the first difficulty, in 2013, the elephant is still like most established game companies in Taiwan.
"With less than half of the business ..." Jiang Shuncheng sighed. In 2013, the elephant elephant's revenue was 1.5 billion yuan, compared with nearly 3.4 billion yuan in 2009's heyday, less than half.
"Small companies can easily enter this market, which puts a lot of pressure on us." Yang Qingan, director of the online game business department of Xiangxiang, said that at the time, they had to take into account the operation of different platforms such as stand-alone, web pages, and mobile games. On the one hand, they are anxious to develop more new mobile games, and they are anxious.
"The power was too scattered." Yang Qingan recalled, at that time, I wanted to try every way, and it was like a long candle burning.
A trick to speed up research and development
Break up R & D and operation teams
The current mobile game market is obviously fast and fast. If the original big team cannot transform, the scale will become the biggest limitation.
In 2015, Jiang Shun's achievements broke up large departments into small cell organizations. After breaking up the R & D and operation departments, the personnel were combined in different small teams. Larger games that are the mainstay of revenue, the number of teams may be more than 30, but there are about 10 teams, each team of about 10 to 20 people, small-scale operations. Taking the online business office as an example, this is a major project involving the transfer of nearly 300 people.
Yu Xin, Chairman of Austin, Liu Xin observes that the tradition of the gaming industry is that R & D is owned by R & D and operations are owned by operations, but if it can be smoothly integrated, it will definitely be a big plus for product development.
However, people with different professional backgrounds were tied to the same team and conflicts ensued.
For example, market operators value current trends and what products players prefer; R & D personnel think about how to make more creative and fun works. At this time, who should listen to whom? Everyone has to be used to transparent debate. "If you can tell something, then you have to figure it out again and again. You have to be reasonable and logical so that you can convince others." Jiang Shuncheng said.
After the reorganization, the rights, responsibilities and benefits are combined
Teams customize KPIs, proposals and budgets
We have to debate, because the benefits will be shared together. In the past, in order to encourage employees to continue to invest in R & D and innovation, games that do not make money still pay dividends to encourage them, and games that make money do not clearly distribute profits.
After the reorganization, the illusion has turned each small team into a small profit center. It is responsible for its own profits and losses, and the game surplus can be distributed to members, so that team members can see that you have rights, responsibilities, and benefits. Li Jiren, a professor at the Department of International Business at Taiwan University, pointed out that the successful operation of "small and micro organizations" is absolutely critical.
"Three things: power, responsibility, and profit must be linked together. Usually, power and responsibility can be given, but the incentives within the organization are relatively small." Li Jiren observed.
When everyone's goals are linked to benefits, the company further authorizes the team to be responsible for the development, operation, cost control, marketing plan of a game from beginning to end, and even the team must set the key performance indicators (KPIs) themselves. .
Budget planning and KPIs are certainly not infinite. A review team will be established internally. Every small team must submit a review when developing a new game, including the research and development scale, market size, risk assessment, future goals, etc. Multi-budget resources. Usually, the initial definition of the market will determine the size of the subsequent budget.
If the team wants to go to the international market, they have to answer, can the current art style meet the requirements of different countries? How many languages are you developing? How does the customer service team operate? How many years can I pay back? Can the existing team size be achieved?
If two teams compete for similar cases, everyone depends on the proposal. If the market is large enough and can be separated from each other, they can coexist. For example, it is also a game type. The game “Golden Monkey”, which is owned by the elephant, focuses on slot machine type games; “Three Stars and One Miss” focuses on light casual chess and cards.
Knock off re-work pain for two years
After leaving the tide, the team developed empathy
The most difficult thing is the change of power structure.
Liu Xin observed that the most difficult integration of this research and operation integration is actually the team leader. Is there any way to comprehensively observe it, and it is easy to have communication conflicts if he is too biased on the perspective of operations or R & D personnel.
In the early days, how to assist the team in selecting the right person was the most distressing issue for Xuxiang. Many game companies will have so-called "old-time producers". They have rich experience, but after the organization breaks down and reorganizes, they need leaders with high market acuity and good communication with R & D and operations staff.
"For example, two years ago, a company in Taiwan used Line stickers to promote the game and found that the results were good. Will you quickly integrate with the new media? If this concept is only known to the operation, and the research and development will not leave you, will the team work? Yang Qingan asked.
This is a "blood change" process. Senior employees who cannot adapt to it, therefore leave, and some teams with more serious running-in problems will face a brain drain of 5% to 10%.
The process of "killing retraining" took about one to two years of painful period to mature.
"Empathy" and "sympathy" among teams are gradually being practiced. For example, in the past, R & D personnel were always bored with their heads, and lacked the concepts of budget and cost control. Now everyone wants to discuss how to use the budget together, and they are more willing to think about the problem from the market perspective.
Take "Three Missing One" as an example. After adjustment in 2015, after two years of pain, in 2017 and 2018, the game's performance increased by more than 20%. Now, the operating frequency of in-game marketing activities is higher and richer. There is one file every week, such as new tasks, new game system, interaction between celebrities and stars, and so on.
In the past, the payment rate for casual games was less than 1%, but the payment rate of Golden Monkey, the most profitable game owned by Xuanxiang, broke 3%, and the revenue increased 2 times from the low point.
Transformation helmsman faces trough
Get 800 employees to talk about operation one by one
According to the legal person's comment, the subject matter of the elephants in 2016 and 2017 was mainly the tide of global gaming machines. However, the orders were slowly digested in the past two years, and the mobile games after the transformation just picked up. Last year, mobile games accounted for 70% of the revenue, and the profitability of this game has been increased. This is the key to everyone's optimism that this year will have the opportunity to challenge a new high for ten years.
Recalling the transformation process along the way, Jiang Shuncheng believes that the most difficult thing is to "gather consensus."
At the time of the company's low operation, there were more than 800 employees across the company, and he came to interview each one individually to understand each employee's thoughts on the company.
"Be sure to live!" Jiang Shuncheng kept telling himself.
There is no overdue product, only an overdated attitude. As long as you want to live, you must have a way out.