Why is the U.S. to B market so developed?

Why is the U.S. to B market so developed?

First of all, for to B, let’s not limit ourselves to the perception of IT, we can include business school education, consulting, investment and M&A, accountants and auditors, IT and so on into the to B market.

I. 500 years ago: joint-stock limited liability company

The great voyage, divided the world into ancient and modern.

In 1603, the Dutch East India Company was established.

Social public fundraising and issuance of shares.

Establishment of a stock exchange, where shares could be transferred, bought and sold at any time.

Establishment of a joint-stock limited liability company.

Establishment of a board of directors.

Employment by the board of directors of a team of professional managers to run the business.

The team of professional managers hires an accountant to keep records of the business, and the board of directors hires an accountant to review and review the business.

Folks, this was 500 years ago.

Our business has not come to this stage now.

Second, the network of heaven and earth

In 1865, the end of the American Civil War, the northern industry defeated the southern plantations, from then on, the United States began a national scale into the rapid development of the industrial technology revolution 40 years. Every country that entered the industrial science and technology revolution had a period of high speed development for about 30~40 years, so did the United States, Germany, Japan, Korea, the Soviet Union, and China. This is the background.

After 1880, the first industrial trusts began to emerge in the United States: the Northern Railway Network and the Rockefeller Oil Pipeline Network for the ground network, and the American Telegraph and Telephone Network for the sky network. In other words, if you wanted to be a giant, you had to be a network company. Now, it’s the same thing, and it hasn’t changed in over 100 years.

Trusts are made by mergers and acquisitions, so there is a large need for accounting auditors for M&A back-grouping of M&A targets, valuation of M&A assets, and post-merger accounting consolidation. So you see the five major accounting firms in the United States, almost all founded in that period.

Third, scientific management

The industrial technology revolution and the trust investment M&A have been the double dance of American business and industry.

There was a man who was the owner of Bethlehem Steel Company, named “Wharton”.

In 1881, he founded the first business school in the United States: Wharton School of Business. In order to train business operations and management personnel. At that time, the business school taught courses mainly: accounting, investment and mergers and acquisitions.

In 1898, Wharton also hired Taylor, the “father of scientific management in the world”, and appointed him as the chief engineer to sort out standard processes, standard work procedures, standard work actions, and standard costs, and to train workers with a stopwatch so that each worker could achieve the best work actions.

What does “scientific management” mean? This is called scientific management: standard processes/procedures/actions, pinpointing the stopwatch for statistical analysis.

Therefore, Taylor has also developed a system of methods. This method system, until now, is also the core responsibilities of professional managers: the following

People: identification of people, arrangement of job duties, training and guidance, and motivation of people.

Performance: acceptance, assessment, statistics and reporting.

Organization: division of labor, collaborative processes.

Processes: observation, metrics, statistical analysis, improvement, experimentation, replication of actions.

Planning: resource forecasting, planning scheduling and dispatching.

Tools: record forms, automated machines.

IV. Checks and balances

Many people ask why the U.S. to B market is more developed than China’s demand?

I said, not only the United States SaaS era demand is developed, the United States in the software era also demand developed ah.

Not only the United States in the software era needs to be developed, the United States in the scientific management era also needs to be developed ah.


We have to look at the U.S. political system and economic system of the U.S. business economy.

The United States is a private system, which means that we each a mountain, you can not do anything to me.

But to become a trust, it must be a network of heaven and earth. This is difficult to do, the network needs to be connected. Private system each a mountain not connected to each other, who can not maximize profits.

So there is no choice but to sit down, define the standard, and compromise with each other to recognize the standard.

This culture of sitting down to define standards, and the British and American political system is also the same lineage: the House of Lords and the House of Commons are separated, the two houses of parliament are separated, and the two houses of parliament are separated.

The separation of the House of Lords from the House of Commons, the separation of the two parties from the government.

The separation of the Commonwealth from the states and the president from the governors.

the separation of federal and local taxes, and the separation of commodity prices from taxes.

The Wall Street-Federal Reserve-Federal Treasury checks and balances.

So this ethos extends to the business world, and also board-professional manager teams checks and balances: the

ex ante: boards hire consulting firms for: strategy consulting, business consulting, operational process consulting.

ex-post: IT solidifies: strategy, processes and ensures that professional managers perform as required by the board of directors.

Afterwards: the board of directors hires a firm of accountants and auditors to audit the professional manager team.

We also need to know: professional managers team, consultants, accountants and auditors firm, most of them come from business schools, we learn the same set of rules.

This I have a deep feeling, I as a computer science class, do Code Review, for the same computer science class programmers write the code, I look at the code, I think the idea is more familiar, because we are trained by the same computer methods and thinking. But for non-computer programmers, they can also complete the same functional requirements, but when they open their code, they often feel that the implementation of the idea is very strange.

Many Chinese people wonder: Why does the management of each company in the United States look quite similar? Why the United States on the ERP are very standard and not much customization?

Well, the reason is as above.

Many Chinese people also wonder: if every company is very similar, then every company in the United States on what to compete ah?

Well, the United States mainly in the product and technological innovation to force, in the full and open market competition to stand out. Who wants to make black tricks, just wait for the lawsuit to bankruptcy, and also affect the credit to the society in the difficult to walk.

This article comes from WeChat public number: a Zhu said (ID: azhushuo), author: Lv Jianwei

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/why-is-the-u-s-to-b-market-so-developed/
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