When Yonyou's founder Wang Wenjing was considering the pros and cons of fully embracing the cloud-based SaaS (software as a service) model, the company was on the road to becoming China's leading ERP software provider. It took years for Yonyou to entirely change its business model from selling software licenses to collecting services fee. Industry-wide, the trend was more than clear that providing cloud-based service would become a predominant business model, but it was still a difficult decision for individual competitors because it would mean a series of changes, including reshaping executives' mindset, reorganizing teams, cutting staff, redefining key performance indicators and incentive plan, to support its shift from the traditional cash cow business to an emerging one. Some actions were painful but necessary. Additionally, Yonyou's management needed to keep a close eye on its financials just in case that investors might not be satisfied with the results. The new business model that Yonyou adopted was a cloud platform that provided a base and a set of uniform standards for partners such as independent developers and service providers to join and prosper. The biggest challenge ahead was to take every opportunity to educate the market and grow its subscription-based revenue so that it was able to stand fast in terms of domestic market share.
Beijing has a huge second-hand housing rental market, while the tenants are often unable to get satisfactory properties. Because the real estate brokerage companies only assist with handling procedures, the tenants' requirements for quality, furnishing and services of properties are inadequately considered. Therefore, traditional modes of leasing have been significantly out of date. In this context, Homelink launched Ziroom business in May 2011, beginning its new exploration in the rental industry. Under the leadership of Mr. Xiong Lin, general manager of Ziroom, who had rich experience in this field, Ziroom created Ziroom Friendly Home and Ziroom Apartment under the same brand of Ziroom and operated them in a B2C mode. Ziroom owns the properties and processes them into standard products before selling online at Ziroom.com and providing various follow-up services during the lease term. Ziroom focuses on product, service and O2O, covering all the key links of tenants' rental experience. By the end of 2013, Ziroom had collected a total of over 20,000 properties, including over 60,000 Ziroom Friendly Home rooms and 6 stand-alone buildings of Ziroom apartments that are distributed in more than 2,000 real estates in Beijing. With the cumulative occupancy rate remaining at 90% and the renewal rate at over 60%, Ziroom provides rental services to 10 million Ziroomers. At present, Xiong Lin is faced with a number of challenges. For example, Ziroom's rent is a little bit high for a portion of young people in need of shared leasing; the future development of Ziroom may be affected by the changes in rents, real estate purchase restrictions, and the increase of Ziroom properties. Ziroom aims to establish a super-large enterprise based on O2O platforms that integrate asset management, housing and extension services, as well as information and data services, managing tens of thousands of properties in China. Today, Ziroom is continuing its entrepreneurial efforts.