In the past July, the old high-tech e-commerce club held an annual e-commerce summit, at the Thousand People E-commerce Innovation Summit, we invited Tsinghua University postdoctoral fellows, Chinese Academy of Sciences Doctor of Management, distinguished professors / visiting professors of many famous universities, Alibaba Group Vice President, Alibaba Cloud Research Institute Dean Xiao Lihua, for thousands of e-commerce entrepreneurs on the scene to share the theme of "full speed reconstruction - digital intelligence to drive new growth", from the future layout of Alibaba's new retail, pointed out the direction of development for e-commerceers.
This is the third time Xiao Lihua came to the old high e-commerce club to do on-site sharing, he said that he was once a businessman, very well understood that as a merchant, whether it is to do domestic e-commerce or cross-border e-commerce, the ultimate essence is actually to sell goods, but in the past everyone is more concerned about operation, field these plates, and now with the advent of the consumer Internet and industrial Internet two-wheel drive era, we have to pay more attention to the new growth of digital intelligence driven by the consumer Internet and the industrial Internet.
Why should we carry out the transformation and upgrading of full-link digital intelligence?
Digital intelligence, as the name suggests, digitalization and online are only the first step, and intelligence is the future.
From the turnover of 498.2 billion yuan in the 2020 Tmall Double 11 Global Carnival Season, it can be seen that the orders of the Double 11 in 2020 are growing rapidly, the number of users is growing very fast, the receiving speed is faster than before, and the consumption upgrade and industry have been fully upgraded, which is due to the strong domestic demand power and digital innovation dividend, which has driven the new growth of Tmall Double 11.
Not only that, cross-border e-commerce, industrial Internet and factories have also been launched, and more importantly, many new consumer brands such as Yuanqi Forest and Sandan and a Half have emerged, and they have grown very fast. If it is said that in the past, it took ten to thirty years to do a few hundred million, then now these brands can do several hundred million or even billions in a year, two years and three years.
For the growth of last year's double 11 data, Xiao Lihua summed up several reasons: the first is the 1 billion digital consumers, the second is China's huge supply side, the third is the platform to do efficient and accurate matching, and finally the promotion of the capital market.
After the analysis of Maslow's hierarchy of needs, we can tell us that the essence of human beings is actually a social animal, all people are consumers, then consumers are already online, how to make your consumers and customers quickly find you, which needs to be achieved through digital intelligence transformation.
Now many traditional enterprises have been in the digital intelligent transformation, because digital intelligence and online is the future, the future of all enterprises are digital enterprises, but in the use of the Internet tools and methods to do these things.
To put it simply, China's online consumer-side digital capabilities are far ahead, but in the supply side of the digital level is low, we have a huge room for improvement in retail experience, product personalization, manufacturing flexibility, etc., this status quo forces the supply side to continue to reform and upgrade, we catch consumers, grasp fans at the same time, we must ensure the final competition of the commodity supply side, if this aspect is not paid attention to, there will be no future.
The business world of 10,000 upgrades has arrived
Xiao Lihua believes that many businesses spend a lot of time in the private domain, it is far from enough, you have to continuously expand your user pool, and constantly use advanced tools and methods to accurately fish in the public domain, fine fish farming in the private domain, there is a greater future.
We are driven by the two-wheel drive of the consumer Internet and the industrial Internet, people-centered, from near field to far field to pan field, and then to the supply side, the physical world & digital world is converging, the era of 10,000 field upgrade outbreak is coming, and the next ten years are very sure to tell you that there are many industries that will be repeated.
In the past two or three years, we have seen a very obvious trend, last year the total retail sales of the whole society showed negative growth, but the enterprises that have done a better job in digital transformation can achieve high growth, which means that many companies cannot keep up with the negative growth.
The essence of business is finally PK is efficiency. On the one hand, the experience of consumer customers, and the efficiency and effectiveness of the operation of the business itself, it seems that they are all human goods yards, but the digital economy is deeply reconstructing its connotation. In particular, the traditional retail sector is far from the latitude of e-commerce in terms of time and space, so it is necessary to think about this problem from the perspective of operation.
Xiao Lihua said in the sharing that what remains unchanged in the human goods yard is the demand, and the essence of the business is to match the supply and demand, and what has changed is the concept, method and method! People's needs have higher products and services, we must also improve the efficiency and timeliness of people, in order to enhance consumer satisfaction, otherwise consumers are God is an empty word.
Benchmarking companies at the forefront, how do they do it?
The new retail era is a new era of consumer-centered, smart brand-led, fast and flexible supply chain as the support, online and offline all-network omni-channel integration, and efficient operation. Xiao Lihua believes that it is necessary to open up all the internal and external ecology, including the supply chain system, brand, etc., so that there are repeat customers and premium space.
Of course, if the enterprise is more digital, intelligent prediction, intelligent shopping, intelligent replenishment, intelligent scheduling, this is the level of the art, the corporate vision, mission, values, cultural team of the plate, or at the bottom of the enterprise. In essence, we want to build an endless ecology and match consumer life with the business of our business efficiently and accurately, which is the root of digital intelligence.
In the analysis through bosideng, Jiuyang, nature hall, good shop, Mengniu, Feihe and other cases, we see that behind the growth of these brands, whether it is the public domain and private domain, or online and offline Taobao, Pinduoduo, Jingdong, DingTalk and other platforms, the data middle platform and Ali do the whole through, to serve the whole network and all channels, to achieve full link digital intelligence.
"Digital and intelligent transformation is a process with a starting point and no end, a process of continuous construction, these enterprises have done a very solid job, these leading enterprises are investing in the future, and our e-commerce companies must also think about the future." Xiao Lihua said so in the sharing.
The industrial Internet has entered the 4.0 stage
The essence of business is a marathon without an end, not how fast you run in the first three laps. Doing business, your strategy must be good, your branding, your product design, your development, production, manufacturing, logistics, supply chain system, your design, your IT system, none of them can be lacking. Xiao Lihua proposed that some of these can be established by themselves, and some can find partners to do, and at different stages of development, they will encounter different problems and need to grow continuously.
The consumer Internet and the industrial Internet are open end-to-end, and the industrial Internet is also constantly upgrading, from the 1.0 information release platform, to the 2.0 stage transaction matching platform, and then to the 3.0 stage logistics and finance combination, the second half of 2020 has entered the industrial Internet 4.0 stage.
The 4.0 stage is the part of sustainable development, which means that the technology and upgrading of the blockchain, the government and associations come in, including brand incubation, new product design and development, flexible manufacturing, omni-channel layout of the whole network, optimization of talents, etc., will be further upgraded.
Why digitally driven growth?
The essence of business, in other words, is business, buying and selling and supply and demand, but the biggest problem is the coexistence of high inventory and high valuation. After the epidemic, we have entered the post-epidemic era, many companies have made a combination of short-term response and medium- and long-term layout, then it is very important in terms of growth, and digital intelligence drive can make you and B&C more efficient and accurate matching.
Why grow? Xiao Lihua believes that rapid development is not a problem for anything; medium development has begun to have some problems; slow development, everything is a problem! So, sustainable high-quality growth is the last word, you don't have growth everything is nonsense.
Then in terms of growth, traditional stores more consider the store efficiency and ping effect, Xiao Lihua feels that the future is more important than the human efficiency and timeliness, we must pay attention to your per capita output, you do not have per capita output is a disaster.
Our traditional offline stores, the means to reach consumers, mainly rely on phone, text messages, emails, public accounts, WeChat groups, these methods have worked in the past, but not necessarily effective today, we have to jump out again to see, embrace a larger technology and data-driven business world.
How to carry out the five steps of digital and intelligent transformation and upgrading of enterprises
For us, the biggest revelation in 2020 is that all stores must be transformed and upgraded, you can be a live broadcast room, you can be an experience store, you can be a front-end warehouse, and the business must change dramatically, otherwise you are just selling goods.
Trained and empowered employees are our best advocates. Xiao Lihua believes that kung fu in peacetime, to fully activate each individual, these trained and empowered employees are our introduction agents, because he knows our brand best, our products the most, and our customers the most. Especially in the era when everything can be broadcast and everyone is an anchor, every staff member who is trained and empowered can be the anchor, using 90% + of idle time, using the upgrade incentive method, and improving the efficiency and timeliness of the time is the best policy!
In addition, it is necessary to constantly create new growth momentum, find a new growth curve, the traditional way of traditional brand channels is king is only the first PART, the most important thing for the new generation of brands is to do the latter part, new products, new customers, new stores, new organizations behind the need is a digital intelligence method and means. Without the means of digital and intelligent development, it is almost impossible to surpass. Now after the 90s and 95s have created many brands, such as Li Ziqi, Huaxizi, Perfect Diary, etc., in a few years, they can do hundreds of millions and billions, basically along this road.
In the process of sharing, Xiao Lihua also shared a digital intelligence to drive the new growth code: new growth = (new product * new organization * new customer) digital intelligence. In this formula, we can see that it must be customer-centric, focusing on your consumer assets, focusing on the organization behind your product power, including the entire growth and digital intelligence behind it. Each plate in this formula is worth pondering for merchants.
The Alibaba business operating system released in January 2019 has opened up all our logistics, capital, organizational flow, technology and other sectors, not only Taobao Tmall, we start from all dimensions of business, from brand, commodity manufacturing, channel marketing, retail services, business flow, logistics organization, technology all sectors have achieved tool support.
In the Alibaba Cloud intelligent system, we summarized the experience of digital intelligent transformation through the process of internal and external digital intelligence transformation empowerment, and continuously polished and refined in many customer cases, and finally formed a "five-step" methodology for full-link digital intelligent transformation, realizing one-stop full-link digital intelligent transformation from five aspects: infrastructure cloudification, contact digitalization, business online, operation data, and decision-making intelligence. For each plate, in fact, we have a series of tools and methods, you can do the selection according to your needs.
Enterprises with a scale of hundreds of millions of dollars must pay attention to the ABOS system of Alibaba's one-cloud multi-terminal five middle-office N industry applications, and at the same time start from online and offline, private domain public domain channels, open up the marketing matrix of all touchpoints, and continue to tap more customers in the 1 billion-level crowd.
Not only that, the end-to-end whole industry chain of the supply chain should also diagnose all links, open up various pain points, breakpoints, blockages, and weaknesses, and bring together different types of data to achieve the precipitation of digital assets of the whole industry chain of "convergence, communication, management, use, and evaluation".
Digital intelligence upgrade, early layout early benefit
Alibaba wants the world to have no difficulty in doing business, business is B&C, buying and selling, supply and demand problems. The digital intelligent transformation is to improve the consumer experience and improve the efficiency and effectiveness of commercial operations, so in the transformation and upgrading of the full-link digital intelligence, all the plates must be consumer-centered, online and offline, all-network, omni-channel and all-domain performance.
3 points rely on technology, 7 points rely on operation, can no longer wait to see, digital and intelligent transformation has been accelerated in various leading enterprises, this is not a cost, not investment, but a future-oriented problem of whether you have competitive qualifications, we must open up the second pulse of Ren Dou, and prepare for the transformation of the era of digital intelligence economy. Tools can only solve local problems, the system can solve system problems, we emphasize tool empowerment, organizational empowerment, operation empowerment, which is all-round.
The essence of management is decision-making. The future world is not driven by experience, but by data-driven + computing power-driven + algorithm-driven, which is the biggest difference between future organizations.
The best time to plant a tree is 10 years ago, followed by now, and the same is true of digital and intelligent transformation. The curtain of our digital economy era has just begun, and the transformation of digital intelligence has come online in the morning and benefited early.
Everything has cracks, that is where the light comes in, can you poke a big hole along this crack, create a new product world, create a new era. In the future, are you going to subvert the dark horse of others, or the one that is subverted? It is worth pondering.
In the next 5-10 years, various industries will be re-examined, and a large number of very good and great enterprises will be produced, looking forward to being produced from you.