Becoming a part of IT history
| by Colette Steckel 04 May 2003 Topic: Members profiles, People |
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Ronald Qiu FCCA, senior financial application expert at China's largest management software company UFSoft, tells Colette Steckel how he used his accounting background to kick-start a career in the IT industry Over the past decade, China has made remarkable progress in the development of its IT industry, which now ranks as the third largest in the world. A significant income-earner for the Chinese economy, the IT industry has been recording growth rates of 30%, and outpacing China�s traditional industries like textiles and coal mining. This impressive performance is down to China�s strength in computer hardware manufacturing, which generates most of the annual US$100bn plus income from the IT industry. Every chance, then, that the PC sitting on your desk at home or in the office has a �made in China� label discreetly stamped on its rear. But while China�s prowess in the hardware sector is a safe bet, the country�s software sector has been less assured. That is about to change though. Recognising the potential of a competitive software industry and its complementary role in the IT industry, the Chinese Government has been introducing a raft of measures to boost the sector�s development: tax cuts to encourage research and development, the construction of software parks in key cities like Guangzhou and Beijing, grants for technological innovation among SMEs, and policies to aid the training and education of staff. And, to make it clear that China is on a mission to play a leading role in the world�s software sector, an annual International Software China exhibition, sponsored by the Ministry of Information Industry, China�s telecoms and IT regulator, is held annually in Beijing to promote the industry and showcase new software and technology developed in China. All of which seem to have paid off. Revenue from China�s software sector in 2001 was 28.5bn yuan (US$3.4bn) (1), which marked a 24% hike on the previous year�s sales. And, with similar growth expected for the next three to four years, the future is looking up for China�s myriad domestic software developers (of which there are around 10,000). Of course, the big international software players also have a stake in China�s software market; Microsoft, for example, dominates China�s platform software market in much the same way that it does worldwide. Perhaps unsurprisingly, then, many of China�s software developers have chosen to focus on application software (predominately financial management software and ERP software) contributing RMB18.33bn yuan (US$2.21bn) (1) to 2001 sales. Which is where Ronald Qiu steps in. As senior financial application expert at UFSoft, Ronald is responsible for the research and development of Business Performance Management (BPM) products (2). BPM products are based on the concept of Business Intelligence (BI), which enables companies in China to access and analyse vast amounts of critical corporate information that supports strategic decision-making. �These days, any company that wants to become world-class has to integrate IT technology like BI into its business,� notes Ronald. �It�s not a question of choice anymore. It�s a necessity. A business cannot survive without the kind of performance information and insight that BPM products provide.� Sales of BPM products have rocketed since 2000 because of the Government�s insistence that domestic companies improve the quality of their management information as well as raise their product efficiency. BPM products also solve the problem of what specialists call the islands of analysis phenomenon, where different groups within an enterprise develop their own forecasts and analysis independently of each other. And, since China�s recent entry into the WTO, many companies have had to start conforming to internationally accepted business practices and rules which, in turn, has fuelled demand for management software. UFSoft is among the many domestic software developers to benefit from the surge in interest of BI. Ranked as China�s biggest supplier of financial and business management software, UFSoft has spent the past decade grabbing market share through sales of its popular products that specifically cater to China�s needs. A better understanding of the home market and cheaper prices have ensured that domestic suppliers continually outshine their international competitors. �The whole software industry has taken off in China and national firms have the edge,� says Ronald. �Take UFSoft. It�s a leading supplier with annual growth around 40% and sales last year exceeded RMB400m yuan (US$48.23m). It has a huge competitive advantage.� Ronald first became interested in China�s IT industry when he studied a Bachelor of Engineering at the computer faculty of Hauzhong University of Science and Technology. After graduating, he continued his education, studying for a Master of Economics at the University of International Business and Economics. A twist of fate put his IT career on hold though when a Master�s professor, impressed by Ronald�s performance in his accounting papers, offered a teaching post at the University. �It was an opportunity for me and I was interested in accounting anyway,� remarks Ronald. �With the whole economy in China rapidly developing, I thought accountancy would become increasingly important.� A secondment at the University of Manchester followed and introduced Ronald to European accounting research and ACCA. �It was a stroke of luck,� he recalls. �I learnt a lot from that trip, finding out about the hot topics in management and accounting research. And I got a really good impression about ACCA. It�s a world class education.� On returning to China, Ronald put his new found accounting knowledge into action, using case studies to inform his students of new developments in Western accounting practices. And he started studying for his ACCA qualification. Shortly after, and eager for some practical business experience, Ronald left academia to work in finance roles for a variety of industries, eventually getting his IT interests back on track when, in 1999, he became general manager of the finance and planning department at the People�s Insurance Company of China. �At the time, the company was using book-keeping software but it wasn�t much help when I or my accounting colleagues wanted to analyse the numbers. There just wasn�t that sort of software available. So I thought to myself, there might be a good business opportunity here.� Ronald started work on the development of financial analysis software and, by 2000, he and two friends founded the Beijing E-fortune Technology Company. In October of that year, they launched the first version of Ronald�s software, targeted at the securities market for listed companies. �There are many domestic application software companies, but my version of analysis software was certainly the first of its kind in China,� quips Ronald. The software was highly regarded by users and caught the eye of UFSoft founder, Wang Wenjing, who offered to buy Ronald�s business within a year of the launch. �It made sense for me to sell the business,� reasons Ronald. �As a small player we lacked capital and human resource. And even when we developed good software, it was difficult to market and sell because we didn�t have access to the right market channels. That makes all the difference to the success or failure of a business, especially one in the software sector.� Ronald sold his share of the business to UFSoft (he doesn�t specify for how much although notes that he later made a sizeable profit on the sale of his UFSoft shares), and his business became a subsidiary which he oversaw as general manager. Last year, E-fortune was welcomed into the UFSoft fold and Ronald took up his appointment as financial application expert in the BI field, a role he clearly enjoys. �I always like to try something new. If I succeed in developing software with some advanced function or technology, then my life has more meaning. I like the whole idea of contributing something to society,� he says. Next up is the development of fully automated consolidation software, which consolidates financial statements across a whole group using international standards as well as rules set by the Ministry of Finance in China. With so much of his work focusing on the needs of financial analysts, Ronald reflects that his ACCA qualification and his accounting experience have been assets to his career in the software sector, but even he admits that his career path didn�t quite go according to plan. �Life can be unpredictable sometimes. When I was at university, I never expected that I would become an accountant, but it happened and by accident really,� he explains. �But my accounting background has brought me a lot of benefits. I have a broad insight into business and a respected accounting education that allows me to understand the needs of customers using financial and management software. I was just bold enough to use all of that to develop a business.� The rest may just make it into the annals of China�s software history.
References For more information on UFSoft, visit the website at www.ufsoft.com. | |