Those who act immediately upon having an idea are often rash, and it's not to say that rash people are incapable.
It's just that you have to understand, unless you're like Yahoo, pioneering a new path, competitors won't give you many chances to make mistakes.
Yahoo's ultimate failure was that while others succeeded, they kept repeating their past failures.
Budget hotels appeared in America in the 1950s, and they are nothing new now.
Daxia Country also has them currently, but most operate independently, lacking a unified brand and management, leading to inconsistent quality.
There are many reasons for this; the chain model relies heavily on information technology.
Daxia Country is not like America, where even without the internet, there was widespread use of mobile phones, telephones, and telegrams.
As early as the 1980s, Walmart had its own commercial satellites.
In Daxia Country in the 1990s, even landlines were not widespread, installation costs were very high, and many people never used a landline in their entire lives.
The 21st century is approaching, the internet era is about to arrive, and the cost of informatization will significantly decrease.
The chain model will soon develop rapidly in Daxia Country.
Budget hotels combined with the chain model will have a large space for survival in Daxia Country, and the rapid development of Hanting and Home Inn later proved this point.
Father He was preparing to visit Daxia Country for an inspection, while He Zhengcheng arrived at Hong Kong University of Science and Technology.
Since it is named after science and technology, its technological level is naturally higher than Hong Kong Polytechnic University.
At least in integrated circuits, Hong Kong University of Science and Technology's level is higher.
The person He Zhengcheng was meeting was a male professor in his fifties, reportedly a former professor at the University of California, America, who had led chip research and development at Qualcomm before returning to Hong Kong to teach.
"Thank you, you've worked hard!" He Zhengcheng arrived for the appointment and first met Qian Yabo.
"How are you going to thank me?" Qian Yabo asked.
"How about I just give you my 150-160 pounds of myself?" He Zhengcheng joked.
"Pfft, who wants you… You look like no one would want you anyway," Qian Yabo retorted.
"That's not necessarily true, but since you don't want me, then never mind.
I can only compensate you materially in the future," He Zhengcheng said.
"You have no sincerity at all," Qian Yabo pouted.
"It's a small business, no choice, and I don't even know how much I'll lose or if there's any hope."
"The professor said that your idea has a high possibility of being realized!" Qian Yabo exclaimed.
"This is just the beginning!" He Zhengcheng said.
"What else do you want to do?" Qian Yabo asked.
"Let's discuss it together when we meet Professor Xu!" He Zhengcheng replied.
"You really are different now!" Qian Yabo observed.
"???" He Zhengcheng was puzzled.
What was wrong with this woman?
Qian Yabo said nothing and led He Zhengcheng to Professor Xu's office at Hong Kong University of Science and Technology.
Forget about not working on weekends; research dogs don't need rest.
"Hello, Professor Xu!" He Zhengcheng greeted.
"Hello, Mr. He!" said Professor Xu Xingxue (there is no real-life person who can be matched, and even if there were, I don't know them).
"Professor Xu, you already know about what I want to research this time, right? Do you have any further questions?" He Zhengcheng asked.
"This USB flash drive you want to develop requires integrating the drive and storage medium into one.
Technically, there's no difficulty, but does it really have a market?
Even if your research and development succeed this time, it might be difficult to promote," Professor Xu said.
USB drives were not immediately accepted at first; in fact, the market space for USB drives was only so big.
Netac Technology, which holds the patent for USB drives, only earned 200 million rmb in patent licensing fees over twenty years.
Although there were patent disputes with other companies, such as Israel's M-Systems, the patent for a simple USB drive really didn't make much money.
In He Zhengcheng's plan, after obtaining the patent, this simple technology would surely be imitated and counterfeited by many.
Patent wars might be the most effective weapon for brand promotion.
However, he hadn't made up his mind yet; once he did, he would definitely have to manage it himself.
There was also another option, which was to pursue technology research and development and patent licensing, slowly accumulating strength, and then repeating MediaTek's development path.
As for which path to take, he really hadn't decided.
Developing chips requires massive capital, but he knew nothing about how to sell the chips once produced.
Is it really feasible to rush into an industry blindly?
Even if he had sufficient funds, could he truly replicate a MediaTek?
"USB drives have an irreplaceable advantage in the mobile office field.
First, their capacity exceeds that of floppy disks, and according to Moore's Law of semiconductor development, in a few years, flash memory capacity will break through 1G, while prices will not change much, or even decrease.
Compared to future USB drives, I really don't see the value of floppy disks," He Zhengcheng explained.
"So you want to start a business with the USB drive product?" Professor Xu asked.
"Actually, I'm still a bit hesitant and don't know how to choose.
Professor Xu, you are a professional, please help me consider it," He Zhengcheng said.
Starting a business is never successful just by having a good idea.
Of course, during the Silicon Valley internet bubble, IT elites did have this opportunity.
Unfortunately, in just over a year, this bubble would burst, and he lacked the technical foundation and financial strength.
Even with ideas, it would be difficult to attract venture capital in Hong Kong.
"Tell me, your young people's ingenious ideas are endless, and communicating with you is a pleasant thing," Professor Xu encouraged.
"The technology for USB drives is relatively simple.
Even if we apply for patents in advance, it's easy to get into patent disputes with other companies.
My first idea is to invest capital and fight patent wars with these companies, while also using public opinion to make our USB drive brand famous.
If there is continuous capital investment, perhaps in a few years, a globally renowned technology brand could emerge.
Another idea is patent licensing.
We collect patent fees and then continuously invest in IC chip design.
If there are outputs, we continue to invest.
I want to learn Qualcomm's development path, making technology and patents the core advantages of the company.
Both methods have their own drawbacks.
The first method requires a large amount of capital; I can invest less than ten million, and subsequent investment needs to attract investors' attention after seeing results.
The second method is essentially establishing a fabless chip design company, which requires a technical expert to lead it, and I don't have the network resources in that area," He Zhengcheng explained.
"I didn't expect you to have such big ambitions.
Both of these methods, no matter which one, require huge financial support.
It would be very difficult for an ordinary person to succeed, wouldn't it?" Professor Xu commented.
"Chip design is inherently a high-risk industry that is capital and technology-intensive.
Building a technology-based consumer brand is an even more difficult task.
If there were no risks, why wouldn't those real estate developers do it?
Would it still be our turn?
Hong Kong has not seen the emergence of high-tech enterprises; isn't it because everyone is unwilling to take risks and has lost their spirit of exploration?" He Zhengcheng argued.
"You're right, scientific research itself is a risky endeavor.
You said you want to establish a fabless chip design company?" Professor Xu confirmed.
"That's right.
If I can make money through USB drive patents, my next direction will be DVD chips.
Daxia Country will have a great demand for DVDs," He Zhengcheng stated.
"If your USB drive is successful, then at least with DVD chips, I can still help you!" Professor Xu offered.
"Really? Then it's a deal!" He Zhengcheng extended his right hand.
"Good!" Xu Xingxue also extended his right hand, and with a handshake, the future began.