Not too long ago, ARC Advisory carried out an in-depth interview with Liu Bin, founder and CEO of Deep Insights. On this information-rich dialog, Liu not solely reviewed the complete strategy of Deep Insights (fashioned by the merger of Quantum Asia and GILLION) from integration to restructuring, but additionally systematically elaborated on his distinctive understanding of the SaaS mannequin, pragmatic views on the worth of AI, and the abroad enlargement blueprint shifting from “passive following” to “energetic development”. What he outlined will not be a shortcut to chasing traits, however a troublesome but inevitable long-termism path in China’s complicated enterprise companies market.
I. Strategic Integration: Not “1+1=2”, however Genetic Recombination
The merger of Quantum Asia and GILLION was some of the watched {industry} occasions within the provide chain software program sector in 2023 in China. Nevertheless, in Liu Bin’s narrative, this was by no means a easy story of scale enlargement.
“We purpose to realize a strategic-level restructuring,” he made it clear from the beginning.
In his view, the core of the merger lies in complementary genes and functionality recombination: Quantum Asia introduced core SaaS genes, cloud-native structure, and a reusable product ecosystem; whereas GILLION injected precious industry-specific know-how, expertise in serving massive purchasers, and powerful capabilities in dealing with complicated deliveries.
“The mixing of those two functionality chains has laid a stable basis for us to construct an AI-driven end-to-end provide chain platform,” Liu revealed.
After the merger, Deep Insights made three essential and coherent choices:
- Unified product roadmap: Constructed a whole product matrix overlaying WMS (Warehouse Administration System), TMS (Transportation Administration System), freight forwarding, delivery, and container administration, dedicated to offering an “end-to-end provide chain collaboration platform” reasonably than scattered level instruments.
- Unified AI technique: Clearly mapped out a phased growth path from “AI-enhanced” (bettering current features) to “AI-native” (restructuring product design), and in the end to an “AI ecosystem”.
- Unified supply system: Innovatively proposed “AI-enhanced supply”, aiming to make use of AI expertise to enhance the effectivity and standardization of challenge implementation, thereby reaching large-scale enlargement.
“Our present purpose will not be solely to make the system straightforward to make use of, but additionally to allow enterprises to have an clever provide chain platform that understands enterprise and knowledge and might independently optimize itself.”
II. The Solution to Break By means of in SaaS: Two Key Choices – “Serving Massive Purchasers” and “Supporting Customization”
“SaaS has encountered some difficulties in China, however its enterprise mannequin is sound.”
When requested why Deep Insights nonetheless adheres to the SaaS mannequin amid a market flooded with customization calls for, Liu Bin’s reply was unhesitant. Behind this seemingly plain assertion is his deep perception within the {industry}’s underlying logic after greater than a decade of deep cultivation within the provide chain software program sector, experiencing mannequin exploration and market tempering.
At present, many friends within the SaaS {industry} shrink again within the face of complicated customization wants from massive enterprises and query whether or not SaaS can reach China. Why can Deep Insights follow SaaS and make it a core competency? Liu shared two essential “breakthrough” choices throughout his entrepreneurial journey, and these particulars reveal the individuality of its mannequin.
The primary breakthrough was a strategic determination on “who to serve”.
“Initially, our understanding of SaaS was fairly superficial. We thought SaaS was most likely for small and medium-sized enterprises (SMEs), and huge enterprises would by no means use it.”
Liu recalled the exploration interval from 2016 to 2017, once they designed a SaaS product tailor-made for SMEs. However the market rapidly gave suggestions: “After about half a 12 months, we realized it was not working. It’s extraordinarily troublesome to do SaaS for SMEs in China, except you goal C-end prospects.”
Amid the predicament, Liu decided that turned the tide: “I proposed that the purchasers we initially served with software program must be our future SaaS purchasers. Our SaaS should be capable of serve massive enterprises.”
This key strategic shift opened a transparent path for Deep Insights’ SaaS journey, straight concentrating on medium and huge shopper teams with stronger cost capabilities and digital transformation willingness, laying the muse for the success of its enterprise mannequin.
The second breakthrough was product and architectural innovation relating to “ do it”.
Serving massive enterprises inevitably includes customization calls for. Rejecting customization outright would imply dropping purchasers, whereas absolutely embracing it could deviate from the essence of SaaS. Deep Insights’ answer is extremely revolutionary – “SaaS ought to help customization”.
“Completely different from conventional views out there, we offer every massive shopper with a ‘customization package deal’ on the multi-tenant structure of the general public cloud,” Liu defined the delicate design intimately. “We keep speedy iterations of the principle model each two weeks, whereas purchasers’ personalised wants are encapsulated in impartial customization packages. Purchasers can retain their personalized features and independently select whether or not to improve with the principle model.”
This design is like establishing a “non-public compartment” that may be independently organized for every VIP on a standardized high-speed prepare, completely balancing the elemental contradiction between speedy iteration of product standardization and core personalised wants of purchasers and turning into the cornerstone for Deep Insights to draw and retain massive purchasers in the long run.
III. AI Positioning: Evolution, Not Subversion
Confronted with the sweeping AI wave, Liu Bin demonstrated uncommon calmness and pragmatism. He believes that AI will not be a subverter of SaaS, however a pure “evolution”.
“The core of SaaS is course of standardization, which is basically process-based. In distinction, the core of AI is data-driven intelligence,” he precisely analyzed the connection between the 2, stating that they’ve totally different underlying beginning factors however usually are not oppositional. Liu additional elaborated that AI not solely absolutely inherits essentially the most wonderful subscription-based enterprise mannequin of SaaS, however extra importantly, “now we have been doing SaaS for almost 10 years, and actually, now we have collected a considerable amount of desensitized knowledge, which has turn into one of the best ‘gasoline’ for AI.”
He additional identified that AI is profoundly reworking the very approach software program is developed. “For the reason that starting of this 12 months, now we have been practising drive our inner growth processes with AI. Our imaginative and prescient is that by subsequent 12 months, over 60% of the work can be achieved by AI, with 30% to 40% dealt with by people for affirmation and verification.”
Primarily based on this, he gave a transparent judgment on {industry} evolution: “Initially, we developed standalone software program, then we moved to internet-based software program, and later advanced into SaaS. Actually, the transition from SaaS to AI is one other evolution, which I feel is an inevitable course of.”
IV. Strategic Improve of Abroad Enlargement: From “Using on Others’ Ships” to “Constructing Our Personal Vessels”
Relating to Deep Insights’ future growth course, Liu Bin’s reply clearly and firmly factors to globalization.
“Up to now few years, our abroad enlargement has been ‘following Chinese language enterprises going international’,” Liu frankly reviewed the preliminary stage. “However ranging from this 12 months, we’ll take the initiative to develop abroad.” He revealed that he has just lately led a staff to go to Southeast Asian markets similar to Thailand and Singapore intensively. “We are going to undertake a dual-track method: on the one hand, proceed to deepen companies for Chinese language enterprises increasing abroad; then again, actively promote our provide chain cloud, AI, and localized merchandise to the native market.”
Conclusion: The “Inevitable Path” for Lengthy-Termists
All through the dialog, Liu Bin constantly confirmed the readability and dedication of a “long-termist”. He’s nicely conscious of the difficulties of SaaS within the Chinese language market, has witnessed early twists and turns and {industry} fluctuations, however firmly believes in its inherent worth and irreversible course.
With the strategic triangle of “SaaS as the muse, industrialization because the accelerator, and AI because the engine”, Deep Insights is striving to blaze a path to the longer term within the soil of China’s enterprise companies that requires endurance and knowledge.
