Recently, we had the honor to invite Ms. Lu Wei, Chairman and CEO of CDP Group, to have an in-depth discussion on the new opportunities of HCM SaaS under the globalization of Chinese enterprises.

1, why not acclimatization? The possibility of China's SaaS 100 billion market value model

The SaaS industry has been showing a situation of ice and fire at home and abroad, and the development of domestic SaaS companies is not only relatively slow, but also not too much recognition in the capital market.

In contrast, overseas markets, especially the United States, show a different situation, a number of SaaS giants stand out, in the capital market performance. So, the SaaS business model can be so successful globally, why is it a little difficult in China?

In this regard, after many years of perseverance in the Saas market and accumulated experience in the relevant markets in North America, Lu Wei gave her thinking.

It believes that American enterprises have established a set of mature management rules and business models in the process of transforming from traditional software model to software service.

These companies use SaaS to optimize the allocation of global resources and service and scale mature products, ensuring that decision data can be quickly, transparently, compliant, timely access and accuracy on a global scale.

In contrast, in the development process of the information age, Chinese enterprises regard SaaS more as a practical tool, focusing on its functional support for front-line operators and the satisfaction of use value.

In other words, in the United States, the implementation of information software is personally led by the top of the company, especially the CEO, ensuring strategic perspective and global integration, as well as consistency and clarity in management processes from start to finish.

In contrast, Chinese companies tend to take a more pragmatic approach to SaaS applications, preferring to customize existing software to meet specific operational needs. Lu Wei vividly pointed out that this practice seems to be too cumbersome in terms of efficiency and resource utilization, like "killing a chicken with a butcher knife", suggesting a mismatch in the use of tools.

Although there are differences between the Chinese market and overseas markets in SaaS applications, globalization has undoubtedly brought unprecedented opportunities and new growth points to the SaaS market for Chinese enterprises.

Lu pointed out that U.S. companies have been globalizing since the 1990s, and the SaaS industry has evolved over the past 20 years to reach the size of the market it is today.

She believes that the SaaS market for Chinese enterprises also has huge potential, and this potential will gradually emerge with the pace of globalization of Chinese enterprises.

In Lu Wei's view, China's SaaS to usher in a business model with a market value of 100 billion needs to be promoted by two aspects: First, as Chinese enterprises ride the wave of globalization,

the demand for SaaS services increases; Second, led by a global management philosophy, Chinese enterprises will be able to better understand the strategic value of SaaS and avoid viewing it simply as a functional tool, but as a strategic resource and control to optimize management and operational efficiency.

Lu Wei pointed out that in the process of globalization, Chinese enterprises must cross cultural and regional restrictions, adopt more open and international management concepts, accurately grasp and effectively use modern business models such as SaaS, in order to achieve wider market participation and corporate growth.

2, the strategic value of SaaS: beyond the tool level, driving the development of enterprise globalization

In the tide of globalization, HCM SaaS solutions face multi-dimensional challenges. These challenges include not only market adaptability and business model understanding, but also the precise development and execution of sales strategies.

According to Lui, enterprises must fundamentally reassess the value of SaaS, elevating it to a strategic level rather than just as a tool. She believes that SaaS companies should adhere to the core principles of the SaaS business model and build an ecosystem that is conducive to long-term development.

This will help Chinese enterprises make more effective use of HCM SaaS, promote the globalization process of enterprises, and achieve sustainable development and growth.

At present, Chinese enterprises' understanding of SaaS is often limited to the tool level, ignoring its far-reaching significance as a strategic resource. This short-sightedness limits the potential of SaaS in enabling enterprises to scale and optimize their operations. Enterprises need to deepen their understanding of the nature of SaaS as a key driver to accelerate business growth and improve operational efficiency.

In addition, many SaaS solutions in the market still rely on custom development, which is not only resource-intensive, but also goes against the original purpose of SaaS design - fast iteration and efficient scaling.

Lu Wei pointed out that the universality of this model leads to losses in the operation of SaaS enterprises, and the root of the problem is not the SaaS business model itself, but the failure of enterprises to adhere to the core values and principles of SaaS in the localization process.