On April 10, 2024, Jack Ma published a 1,000-word essay for the first time in the five years since his retirement, "To Reform to Innovation", an in-depth analysis of Alibaba's changes over the past year. In this article, Jack Ma argues that the core change for Alibaba is not to catch up with KPIs, but to re-recognize its positioning and return to the track of customer value-centricity. He praised Alibaba's strength and bravery in the face of internal and external pressures and challenges, and expressed optimism about the company's future.
In particular, Jack Ma affirmed the courage of the new management team, consisting of Joe Tsai and Wu Yongming, to change. As one of the founders and partners of Alibaba Group, Joe Tsai has played a key role in Alibaba's development since the company's inception in 1999. Wu Yongming is a leader with a deep technical background, having served as the chief technology officer of many important businesses such as B2B, Taobao, and Alipay. Their appointments mark Alibaba's second institutionalized transition to the company's management role.
In addition, Jack Ma's article also mentions some of Alibaba's recent major reform measures, such as the "1+6+N" restructuring plan, as well as the adjustment of Alibaba Cloud, Freshippo, Cainiao and other businesses. At the heart of this change is the establishment of an organizational structure with Alibaba Group as the controlling entity, with six business groups and a number of business companies. The main purpose of this reform is to increase the independence and flexibility of each business and unlock the value of non-core businesses.
After the "1+6+N" reform, each business group and company under Alibaba Group has some specific development cases and actions, reflecting the impact and changes brought about by the reform.
- Alibaba Cloud Intelligence: As Alibaba's cloud computing and artificial intelligence business unit, Alibaba Cloud Intelligence has focused more on technological innovation and international expansion after the reform. For example, Alibaba Cloud has launched a number of data centers around the world, strengthened cooperation with global enterprises, such as establishing partnerships with international companies such as SAP and VMware, and promoted the internationalization of cloud services.
- Taobao and Tmall Commerce: Taobao and Tmall, as Alibaba's core e-commerce business, have paid more attention to improving consumer experience and merchant services after the reform. For example, a more personalized shopping recommendation system has been introduced, logistics services have been optimized, and product quality control and after-sales service have been improved.
- Local Life: After the reform, the Local Life Service Group paid more attention to the in-depth exploration of the local market and the diversification of services. For example, the two major platforms, Ele.me and Koubei, have launched a number of new services and preferential activities in the fields of local catering, takeaway, and in-store services, enhancing user stickiness and market competitiveness.
- International digital commerce: Alibaba's international e-commerce business has focused more on the development of cross-border e-commerce and the expansion of the global market after the reform. For example, platforms such as AliExpress and Lazada have strengthened their partnerships with international brands to launch more goods and services that are suitable for the local market.
- Cainiao: As a logistics platform, Cainiao continues to strengthen the construction and optimization of the logistics network after the reform. For example, Cainiao has launched a smart logistics solution that improves logistics efficiency and reduces logistics costs, while also expanding its international logistics network to support the development of cross-border e-commerce.
- Dawen Entertainment: After the reform, Dawen Entertainment Group has focused more on content innovation and user experience improvement. For example, the Youku video platform has increased its investment in original content and launched a series of exclusive film and television works and variety shows, attracting a large number of users.
These cases show that Alibaba's "1+6+N" reform not only optimizes the company's organizational structure, but also promotes the independent development and innovation capabilities of each business group, enabling Alibaba to respond more flexibly to market changes and provide users with better services and products.