Chapter 36 Liu Jun's Strategy

Cao Shen slumped in his chair, flipped out the investment letter he had given to Liu Jun, and found Liu Jun's mobile phone number.

"System, help me call him on the landline."

"Beep beep beep --"

"Hello, Liu Jun." Liu Jun's voice came from the phone, and the man in a black sweater leaned forward, staring at him with shining eyes, and his image became clear again.

"Hello, I'm Cao Shen."

"Ah! Mr. Cao from Tongcao Technology?

Mr. Cao, hello, hello!

I've been trying to contact you, but Mr. Zhang told me that you are very busy, so I didn't bother to disturb you.

Thank you for your support for Bianhe Semiconductor!"

Cao Shen patted his chest, fortunately he didn't give his mobile phone number...

"Of course, of course! Mr. Liu, I have a question to ask you, is your time convenient now?"

"Mr. Cao, go ahead! Convenient, convenient!"

Liu Jun was still working overtime in the office at this time, eating instant noodles, and quickly put the bowl aside.

Use headphones to connect the phone, so that you can hear more clearly and it is convenient for long-term calls.

"I saw in your business plan that the next product is an H.264 codec chip, also based on the MIPS architecture.

If this chip can be released in the third quarter of this year, it will be a mid-to-high-end chip on the market. What direction do you plan to apply it in?"

Liu Jun pondered for a moment:

"Mr. Cao, I have an immature idea and I would like to hear your opinion."

"Oh? Okay, let's discuss it."

"I want to enter the security video surveillance market."

Cao Shen's heart skipped a beat. Is his idea right?

Suppressing his excitement, it is not appropriate to express his opinion now.

Liu Jun said that this idea is not mature yet. What if he thinks it is not right and wants to change it?

Don't be influenced by yourself.

So Cao Shen said calmly:

"Mr. Liu has been working in the low-end consumer electronics market before. Why do you want to cross the border? There is a big difference between the two sides.

"Well, that's true. Consumer electronics only need to make one product, while security video surveillance is a complete system, and the product is only one part of it, so there are more things to consider.

Mr. Cao, this is what I think, please help me with some advice.

More than 90% of the current video surveillance cameras are standard definition, but the current trend is to move from standard definition to high definition.

Here comes a key problem. High-definition video files are very large, which puts huge pressure on transmission and storage.

H.264 compression technology becomes a necessity in this transformation process. I think there is an opportunity here. "

This cognition is the same as what Cao Shen thought before, but ideas must be implemented or they are just thoughts.

So Cao Shen asked:

"Well, in theory there is indeed an opportunity, but now the security video surveillance chips are dominated by American manufacturers, especially the high-definition ones, which are high-end products.

After all, Bianhe is a startup company. How do you plan to enter?"

The security water is already very deep. A startup company facing bankruptcy at any minute has to make high-end products. American manufacturers also have mature solutions. Why should customers choose you?

Liu Jun was not dissatisfied with Cao Shen's doubts, but said with more interest:

"Mr. Cao, you asked the key point. This is also a question I have been thinking about for a long time. Please give me your opinions.

In the current security video surveillance field, not only the front-end camera is standard definition, but also the entire system is an analog system, which uses coaxial cable for transmission.

Coaxial cable can only transmit analog signals, and the signal will attenuate with distance.

This means that even if you replace the camera with a high-definition camera, the analog signal generated by the CCD sensor in the camera must be converted into a digital signal first, and then compressed by a codec chip.

After compression, the digital signal must be converted into an analog signal before it can be transmitted through the coaxial cable.

When it is transmitted to the back-end digital hard disk recorder DVR, the DVR must also perform digital conversion and compression on the analog signal before storing it.

In the whole process, the image signal is converted three times, and each time it will cause the image quality to decline to varying degrees, and there will be loss during long-distance transmission.

This means that although you replaced the front-end with a high-definition camera, the result is lossy.

"So, you plan to make a network camera? Instead of coaxial cable, use Ethernet for transmission?"

Yes, IP cameras in the original world will become a trend.

But from the point of time, Liu Jun undoubtedly considered it much earlier.

Cao Shen remembered that it seemed that in the original world, it was around 2015 that IP cameras were slowly becoming popular in the field of security monitoring.

"Yes, Mr. Cao, you are so sensitive!" Liu Jun was obviously a little excited. His idea was very new, and Cao Shen was the first to point it out immediately.

"Mr. Liu, your H.264 is already a high-end product. Now the idea of ​​making IP cameras has been updated. Will it be more difficult for security manufacturers to accept it?

Moreover, 90% of the stock market of security video surveillance is analog system. Whether it is users or suppliers in the industry chain, they are already used to this set of things.

Especially various suppliers, they are vested interests.

For example, those who lay cables, do coaxial cable wiring projects, provide scraps, and make the entire backend system.

You are touching other people's cake by doing this.

Although technically speaking, this is a good trend.

But many times, business success is determined by the market and not just by technology. "

It is very difficult to leverage the power of one person, especially a small start-up company, to persuade the entire industry to follow you.

Revolutionaries, many more died on the beach than succeeded.

Although Cao Shen is a person who likes to cause destruction and change the situation.

However, the more this happens, the more we need to take advantage of the situation.

Just like rebellion, the right time, right place and right people are indispensable.

Judging the right time, choosing the right location, and winning over people are the most interesting parts of this.

"Mr. Cao, you are so right!" Liu Jun once again admired Cao Shen for having such a keen business insight and being so familiar with market rules at the age of only his early twenties.

What a monster back wave!

Cao Shen is so lucky to be his own shareholder!

"This is how I think about this issue. The current market structure of security monitoring is dominated by Haiwei. The remaining second-placed companies, Daxia and Youge, are far behind Haiwei.

There is one status difference between Daxia and Youge.

So, I plan to work with Yogurt first.

First, as the third largest player in the industry, it is not as difficult to deal with as the leader.

Secondly, their desire to become number two is very strong and they will be more aggressive in trying out new products.

Thirdly, the first launch of high-definition IP cameras is an advancement in technology for the third place. "

"Well, those who make products can't do well in the market, but if they have strong technical capabilities, they can improve their performance. But how do you plan to break into the third-place supply chain?" Cao Shen asked.

Liu Jun had thought about this issue before, so he talked about it:

“We have carefully made a model. Although we use high-definition cameras, the cost of a single camera has increased.

However, the wiring cost of traditional analog systems is very high. Every time a line is opened, a line must be pulled to add the same camera position. The cost of wiring is three times that of Ethernet.

Therefore, including wiring costs, the IP camera system and the analog system can cost the same, and the later maintenance costs are much lower.

Nowadays, many new buildings are not equipped with coaxial cables, but network cables.

These are naturally already laid out wires, making it extremely easy to install the camera.

In addition, we use MIPS architecture, which can make the camera cost lower than that of ARM architecture.

All in all, using our products or even the entire system can be 15% cheaper for the same number of camera positions, and one high-definition camera can actually hold up to at least three standard-definition cameras. "

Cao Shen smiled: "You are trying to win over the third person, seduce the second person, and force the first person."

"Yes, that's the strategy!

In this way, we will have cases in Bianhe, and they will be future-oriented, high-end, and mature things.

At that time, Daxia, as the second-placed player, will not be able to sit still and will at least give us an opening to do something.

In this way, Bianhe can obtain ticket qualifications in the field of security video surveillance.

IP cameras are our stepping stone. As long as we get the tickets, what we really want to ship in batches are cameras and chips in DVRs for the traditional market.

After all, this market has the largest shipments. "

"Prove your strength through a high-end new thing, and then reduce the dimensionality to eat the biggest cake. This curve is a great way to save the country!" Cao Shen thinks Liu Jun is a very good person.

“Yes, if small entrepreneurial companies want to break into the mature system, they have to take a roundabout way.

From a small market where you can prove yourself, stab a hole and let the blood flow out!

Tear the hole open, tear it wide!

In addition, we have written a set of intelligent analysis algorithms for license plate numbers. Although TI, the current leader in security chips, also has this algorithm, it uses DSP for calculation.

Our chip will adopt the MIPS+IVE architecture, and the algorithm will be sealed in VIE, an intelligent video analysis acceleration engine, for hard decoding, which is faster than DSP and can better achieve real-time monitoring and warning feedback.

In the vertical market of security video surveillance, we can do better than TI in terms of cost, power consumption and computing efficiency.

If this license plate number recognition is done using software, we calculated that a signal would cost 6,000 yuan.

We integrate this into the chip, which is equivalent to free of charge. "

"So, this is your immature idea..." Cao Shen wanted to complain from the bottom of his heart for the first time.

"Ah, yes! I have immature ideas. Mr. Cao, please give me more advice."

"I think it's good. Once our agreement process is completed, I'll send you the money as soon as possible!"

You have product planning, technical reserves, and market strategies...

I……

It seems I can only provide money...

Cao Shen hung up the phone and patted his chest, feeling calm!

Sure enough, things are done by people, and if you want to succeed, you have to be awesome.

A great person will find the right time, favorable circumstances, and bring people together.

"System, do you have the H.265 code?" Cao Shen felt that it was rare to meet such a person, and he hoped to push him again.

【Yes, I have】

"How to redeem?"

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