Although the topic of duty is often mentioned, what exactly is the duty of business? From the perspective of business thinking, duty means thinking and making decisions based on laws and the nature of things. Based on this, I believe that the first thing in business is to create high-quality products.
This truth may seem simple, but it is not empty talk. It requires us to persevere, to concentrate, to abandon distractions, fears and impetuousness, and to dig deep into the purest essence to create unique products.
Apple doesn't make TVs because TVs are difficult to achieve disruptive innovations in user experience. Although Apple already has an Apple TV box and has the ability to occupy 20% of the high-end market, they have chosen to refrain from it. This reflects Apple's product philosophy: it will not easily enter new markets unless it can achieve generational transcendence.
This kind of perseverance is the duty of business, and it is also the key to Apple's products that can always change the landscape of the industry. But the reality is that everyone wants to be Apple, but most of them stay talking about good products, and few people are willing to take the risk of developing and actually making a good product.
The second point of this duty is to pursue a "primitive" and simple business model: to provide high-quality products, users pay, and the company to obtain reasonable profits.
Although some people think that this traditional model is outdated, they tend to favor the Internet model of attracting users through subsidies and monetizing traffic. However, if the product is mediocre and cannot be subsidized sustainably, will users still pay? Will this model last? The answer is clearly no.
Economic principles state that the market rewards you according to the happiness you bring to others: the more happiness, the greater the benefit; Conversely, the less the benefit. The same naïve principle applies to duty: whether it's a service or a product, if it brings happiness to users, you will also be happy.
The third point of this duty is to face the competition positively and fairly, that is, "do not blow and do not black". Business practices show that simply beating the competition doesn't mean winning users. Therefore, when facing competition, it is necessary to have a different attitude: avoid vicious competition, focus on improving user value, and maintain a positive and fair attitude. The real way of competition is to speak with products, not to slander opponents, and not to be confused by the opponent's temporary advantage.
The fourth point of this duty is fairness, that is, to treat employees, shareholders, customers and other parties fairly.
The first is fairness to users. Often, it's unfair for businesses to ask users to tick off consent through lengthy legal agreements to avoid possible legal disputes in the future. Therefore, we should refrain from this practice and take the initiative to clearly inform users of relevant information to ensure that users have the right to be fully informed.
The second is fairness to employees. Often, companies tend to let employees leave voluntarily to avoid compensation. However, some companies take a different approach: the company compensates the best employees who voluntarily leave the company. This approach is based on the pursuit of fairness – unwanted employees can still be compensated in various ways, and good employees should be treated fairly.
Finally, fairness to the work. Who should be the main beneficiary when the value created by the company continues to grow? Is it an old shareholder, an excellent employee, an investor, or something else? Although it is generally believed that shareholders should be the main beneficiaries because they bear the upfront risk, this is certainly reasonable. However, according to the principle of fairness, profits should be distributed according to the principle of "creation first", that is, whoever creates the most value is the biggest beneficiary of the company's value-added.
The fifth point of the duty is not to take advantage. As we grow, we face many temptations. For example, a supplier may promise to offer the lowest price or other discounts as long as the platform sells his goods, and some people may propose joint ventures or joint ventures to carry out projects. These seemingly "don't take advantage of nothing" make us the focus of suppliers and institutions, and resources seem to be converging on us.
After taking advantage of the situation, the cost may be reduced for a short time, and the company can expand quickly, but this may sacrifice more important things, or even pay additional costs. Many stories tell us that some cheap can be a trap for temptation.
Instead of being opportunistic, it is better to stick to your duty and concentrate on the core business.
One might argue that these ideas are too idealistic to cope with the cruelty of reality. However, duty is not to escape from reality, but to think and make decisions based on laws and the nature of things. When we are faced with many "unnecessary" choices, we can return to our original responsibilities and discover the great energy and benefits contained in them.
I've summarized two main benefits:
First of all, this duty helps us to deal with the complex business world with simple principles. In this fast-changing and uncertain environment, even CEOs are faced with a dilemma.
This kind of entanglement stems from our over-consideration of gains and losses. However, gains and losses are difficult to calculate precisely because there are countless factors that can affect our judgment. When we fall into the bias of emotions and choices, we can find countless reasons to support whatever we choose. In the era of the Internet and information economy, market boundaries are becoming increasingly blurred, and it has become more and more difficult to define the market. Everyone's position is different, and the definition of the market is different, leading to very different conclusions.
Therefore, we should adhere to the principle of simplicity: to replace the view of gain and loss with the view of right and wrong to make judgments. A clear view of right and wrong simplifies the decision-making process: do what is right, stop what is wrong, or adjust in time. In this way, the whole company will be clear about the principle of duty and form a consistent judgment and selection criteria. Not only does this inspire unprecedented crowd intelligence, but it also avoids the need for a single person to put the company's safety at stake.
Another benefit of this duty is that it allows companies to navigate through various economic cycles robustly.
Some companies have gone through the transition from the technology cycle to the mobile Internet era, but they are still thriving. The longevity of these companies stems from their adherence to immutable principles and underlying business logic. Just as the timeless value of a classic movie lies in telling a good story and delivering clear values, the core of a company is to create a quality product, stick to the right decisions, and build a sound and sustainable business model. Companies that rely on traffic or short-lived marketing hotspots to achieve rapid growth may have a temporary success, but it is difficult to survive the cycle.
At a time when the economic environment is facing adjustment, we should look back at those companies that have survived the cycle, and their commonality is obvious: adhere to their business responsibilities.
By staying true to our business responsibilities and staying true to our business responsibilities, we can avoid many seemingly stupid decisions. Many decisions made by most companies are actually in vain, and even dig their own graves. Therefore, it is necessary to subtract strategically and abandon stupidity. I've observed that many startups understand the need to streamline their operations, but in practice they often overextend their efforts to the point of distraction. Therefore, it is necessary to reduce the number of wrong decisions so that we can concentrate on the things that are truly valuable and work consistently in the right direction.
Our duty makes us reverent, recognize our own limitations in the business and respect those limitations and boundaries. Understanding your own shortcomings and weaknesses is the key to self-breakthrough and growth. What's more, we don't get arrogant enough to think we can do anything, but focus on what we're good at and do it to the limit.