XINSHUTUIJIAN
The era of industrial Internet
How new technologies can empower enterprises to digitally transform
Demystify the rise of unicorns
The giant transforms a successful new business model
Unite the upstream, middle and lower reaches of the industrial chain
Detonate exponential growth of enterprises
In the next decade, everything can be repeated
Introduction
The industrial Internet is not a wave, but a torrent of the times.
The haze of COVID-19 has not yet dissipated, the world is still in a fragile state, and the digital new continent has long been in a state of flux. AI, blockchain, cloud computing, and big data are on a massive rise, sounding the clarion call for a digital economic war.
How do you become a winner in this war? In the book "The Era of Industrial Internet: How New Technologies Empower Enterprises to DigitalLy Transform", the author Yan Yanchun proposed that the industrial community will replace the traditional e-commerce economy and become the force dominating the new economy in the 21st century, and they will unite all the world industrial forces that can be united, from the community of strategic interests to the symbiotic and win-win community of destiny.
The old economy that fought alone will disintegrate one after another, and the industrial community model with "altruism" as the soul will accelerate the reorganization and rejuvenation of the old economy that is losing its advantages and territory.
Author Profile
The following is selected from the preface to The Industrial Internet Era
Text / Yan Yanchun
"The Future Never Arrives Late"
Beneath the glacier, the water flows incessantly. In the depths of darkness, there is a deep yearning for the future. The light seen in the darkness may be the brightest; the light seen in the light is sometimes the dimmest.
Entrepreneurs are caught in the predicament of the "black swan", the Old World has disintegrated, and a large-scale migration to the New World is just around the corner.
The threat of COVID-19
At 4:32 on April 4, 2020, the earth was sleeping and the wind was wailing. Johns Hopkins University released a set of data: the number of people infected with the new crown virus has exceeded one million worldwide, claiming 58,382 human lives.
It coincided with China's Qingming Festival, and the flag in Beijing's Tiananmen Square was raised and then lowered at half-mast. At 10 a.m., air defense sirens sounded in the depths of silence across the country, cars, trains and ships moved slowly to the sound of mournful whistles, and 1.4 billion people across the country observed a three-minute silence to mourn their compatriots who died in the covid-19 pandemic. At this sad moment, my wife and I set off from our house, crossed a dark path, and walked up the street where we had walked arm in arm, but now the street was sparsely populated, and I could not see any of the city's fireworks, and the city had lost its hustle and bustle.
Back at home, I sat alone in the study on the second floor, the faint sunlight silently piercing through the white curtains, kissing the books on the shelves, and also projecting on the floor. I was involuntarily immersed in inexplicable loneliness and deep sadness, my mind was packed with the ghostly illusions of the new crown virus and the devastation of the city, and I felt as if I heard the desolate cries of children, women and men, who may have lost their dearest parents or life partners forever, and these cries stung me.
In the post-pandemic era, I believe that everyone will have their own new life. The happy days spent with my family in the past, the familiar streets and beautiful landscapes I walked through, come back to mind. Suddenly, a clear stream slid through my heart, and I felt as if I heard the trumpets of the sun pulling sunflowers, and they played in my mind. I closed my eyes, closed the curtains, stood on the edge of darkness with my feet, missing my daughter who was still reading on the other side of the Pacific Ocean, and my heart gradually warmed.
From smallpox to plague to generations of mutated flu, this outbreak is the worst outbreak facing humanity since the Spanish flu. The immense destructive power of the pandemic is a constant reminder that human civilization is at a rather fragile stage. In the words of Bill Gates, humanity is still unprepared until the next pandemic arrives. The more globally connected the region, the greater the devastation caused by the pandemic, and as a result, the impact of covid-19 reflects the growing world's closeness.
In the 6th century AD, the first plague in human history broke out in the Mediterranean, which raged for half a century, resulting in the death of about 1/4 of the Romans and the gradual decline of the Eastern Roman Empire. The Black Death in the Middle Ages killed 75 million people worldwide and accelerated the European Renaissance. When Europeans landed in the Americas, they brought diseases such as mumps, measles, smallpox and cholera, which was almost a disaster for the local Indians.
In 2020, the COVID-19 pandemic swept the world, having a huge and far-reaching impact on the world's manufacturing, agriculture, transportation, tourism, leisure and service industries. The New York Times reported that in 2020, the number of deaths from the new crown pneumonia epidemic in the United States has exceeded the total number of AMERICAN casualties during World War II. According to the United Nations World Tourism Organization, the number of international visitors fell by 70% in the first eight months of 2020. The International Monetary Fund predicts that by the end of 2021, the global economy will still lose $12 trillion or more compared to previous years. In terms of global GDP losses alone, this is the worst recession since the end of World War II, and in terms of global GDP, the economic damage caused by COVID-19 is twice as high as the global economic crisis of 2008.
In September 2020, in its Report in A Troubled World, the Global Preparedness Monitoring Board sharply criticized the global COVID-19 response: "Humanity's 'failure to take pandemic prevention, preparedness and response seriously' is a 'collective failure'. "The report argues that difficult multilateral cooperation is one of the biggest challenges facing the world today, and that weakening and undermining multilateral action will have a serious impact on global health security, and calls on leaders to reaffirm their commitment to the multilateral system and strengthen WHO's position as an impartial and independent international organization."
Thanks to China's early effective grid isolation measures and strong epidemic prevention and control work, China's economy has achieved a basic and comprehensive recovery at a faster than expected pace, and China may become the only major economy in the world to achieve positive economic growth during the epidemic. The World Bank's "East Asia and Pacific Economic Semi-Annual Report: From Containing the Epidemic to Recovery" report predicts that the economic growth rate in East Asia and the Pacific region will be 0.9% in 2020, the lowest growth rate since 1967, of which China's economic growth rate will reach 2%, other developing economies other than China will grow at -4.8%, and China's growth rate will accelerate to 7.9% in 2021.
Starvation or migration
When I was a child, the "Animal World" program broadcast by CCTV that shocked me the most was the great migration of animals in nature. What prompts them to travel thousands of miles? How do they navigate precisely? How did they survive months of migration?
In his book The Great Migration: The Greatest Journey of Life on Earth, Mr. Ben Hall unfolds a colorful picture of what unfolds: from tiny krill to giant humpback whales, from panicked lemmings to gentle reindeer, from skinny Arctic terns to wildebeests of the East African savannah... Different species on Earth, large and small, will decide the direction of migration according to the weather and food at a certain time of year, and embark on a large-scale migration journey and a wonderful life adventure.
The new crown pneumonia epidemic is accelerating the decline of the old economy such as traditional brick-and-mortar enterprises and traditional e-commerce, and the successful business logic of the past may have passed, whether to die or migrate, which is a Shakespearean problem of the century.
Looking back at yesterday's world, a large number of successful companies are slowly disappearing. Nokia, Kmart, Borders, Circuit City, Sears and Roebuck, I'm afraid people have long forgotten them. From large enterprises to small and medium-sized enterprises, from American companies to Chinese companies, from European companies to African companies, many companies have closed down during the epidemic, and many companies are still struggling on the line of life and death.
On the pretext that we have encountered a bad era of bad luck, we scold our industry for being subverted by "barbarians"; we are still thinking about how to improve gross margins, how to reduce costs, and how to improve employee combat effectiveness according to the principles of classical economics textbooks under the organizational framework of the pyramid without vitality and the old business model that has lost growth momentum. However, tactical diligence can only allow us to make partially sophisticated management, but there is no way to hide the ignorance of our strategic vision and the slow failure of the original business model.
Let's take a look at the story of what happened in the African savannah.
Newborn baby African elephants must undergo the cruel test of nature, many weak elephants that cannot keep up with the team, and are eventually ruthlessly eliminated by nature; the mongoose is a social animal in the African savannah, and if the food is exhausted, the mongoose herd can even migrate many times a year; the moose leaves the forests and grasslands of the subarctic region every spring, and travels north day and night along a route that has remained unchanged for hundreds of years.
When the dry season comes, about 1.4 million wildebeests, 200,000 zebras, 300,000 Thomson gazelles and 30,000 Grant gazelles, a total of more than 2 million animal armies, across the Serengeti savannah of East Africa, began a migration of life.
This migratory army is coordinated with tacit understanding, and in the process of migration, there are usually about 200,000 zebras leading the way, and they are the vanguard of the legion, good at chewing the top of the grass stem; about 1.4 million wildebeests are the most impressive main force; about 330,000 gazelles are behind the temple. Because zebras like to eat high-rise new grass, wildebeests like to eat middle-level tender grass, and after the wildebeest leaves, the tender grass that has just grown on the grass is the delicacy that gazelles have been waiting for for a long time. These three-way armies also reflect the different reactions and speeds of action of each animal in the Era of Great Migration.
The impact of the epidemic is still fermenting, and China has regained its position as the center of the global economy. Mankind is in the midst of an ice age of great migration, a new cycle is coming, the old ecology is sinking like an aristocracy, and the new ecology is rising barbarically until the opening of a new prosperity. This phenomenon means that after the "black swan" event of the new crown pneumonia epidemic today, entrepreneurs face the test of life and death, must act immediately, must make a choice.
There is also a scene in the movie "Ice Age": when the huge natural iceberg melts, the large glacier collapses, and the melting snow water is about to flood the home, at which time the animals have to start a large-scale migration. The COVID-19 pandemic in 2020 is raging around the world, people and Chinese people around the world have entered a lonely national quarantine, and billions of people have ushered in the digital migration of the new ice age like animals after the end of the ice age. They were tormented, and in droves quickly poured into various social platforms and live broadcast rooms, and began to live digitally on platforms such as JD.com, Pinduoduo, Douyin, and Kuaishou. 2020 is a watershed in the history of the human Internet, the Internet from the era of graphic traffic of China's three major Internet companies Baidu, Alibaba, Tencent to the era of image traffic of Douyin, Kuaishou and so on, and the traffic between short videos and live broadcasts has become the next fertile land.
"Information DNA" is rapidly replacing atoms and becoming the basic exchange of human life, and the digital life of human beings envisioned by Professor Negroponty in 1996 in his book "Digital Survival" has been perfectly realized in 2020. The epidemic has not only accelerated the strides of human beings into a digital lifestyle, but also accelerated the digital transformation of all enterprises, governments, militaries and other organizations. The era of globalization 2.0 has arrived, and all industries and all countries are facing a digital reconstruction that has not been encountered in a thousand years.
Human history has experienced trade wars, economic wars, scientific and technological wars, geopolitical wars, capital wars and military wars, and the next biggest war is digital wars. China has taken the lead in launching seven new infrastructures for the digital economy, and in the next 5 years, more than 40 trillion yuan will be invested in 5G, industrial Internet, data centers, industrial Internet, industrial chain digitization, everything online and other digital new infrastructure fields, 5G has spawned the integration of consumer Internet and industrial Internet, so that every industry is moving towards integration.
What is the ultimate fate of all real entities and e-commerce economies? All must become the "Republic of Digital Migration". Whether it is an established enterprise or a rising star, from graphic e-commerce, social e-commerce to live e-commerce, they have been going forward from generation to generation, continuously accelerating the migration of human beings to the new digital continent, and establishing one after another "digital immigration republic" with a population of over 100 million. These digital economies continue to break through the limitations of time and space, cross national borders, and sweep the entire world.
The core of new retail 2.0 is no longer just the operation of goods, but the operator. Omni-channel operation of goods, everywhere is the enemy; all-scene operators, everywhere is friends.
In the next 10 years, we are in the era of digital war, a war for digital immigration, and the guns of war have begun!
Titanic dilemma
We managed to catch up with a good time and took the Titanic. We started from the lowest cabin and went through a lot of hard work to get into first class. The night before, we were still raising a glass to celebrate, but the next morning when we woke up, we opened the window and saw that there was an iceberg in front of us. Maybe on the way, we had countless opportunities to jump on a speedboat to escape, but we relied too much on the path to success until we encountered an iceberg and wanted to turn around. Today, entrepreneurs around the world face the "Titanic dilemma."
More critical than the past is the future. Especially in the process of starting a business, perhaps when everyone in the team feels desperate, it is also a moment of hope. Amy Perdy, a disabled athlete, once said in a speech: "In the face of adversity, you can choose to be stuck in the same place or you can choose to break through it." The comfort zone is the same, whether to break through it or not, is your own choice. Former Nokia CEO Joma Olilla admitted in her memoirs that Nokia was reluctant to adjust its strategy at its peak, internal bureaucracy prevailed, and ignored competitors' innovation and market demand. This may be an important reason why Nokia is gradually being eliminated by the market.
Do businesses need to transform, or do entrepreneurs themselves need to transform? This is a very important question. If an entrepreneur's thinking is not transformed, I believe that his business has basically no possibility of successful transformation.
Joma Olilla also said: "We didn't do anything wrong, but don't know why, we lost." "When Nokia controlled 40 percent of the global mobile phone market, no one could have imagined that such a large company would go into decline. Nokia employees study the strategy every day, and every quarter they do strategic reviews and exercises. Don't they see the internet? They've seen it for a long time.
Nokia's market capitalization was as high as $140 billion, but it only sold its mobile phone business to Microsoft for $7.2 billion. It was also growing wildly a year before the sale of its mobile phone business, having acquired a mapping company called NAVTEQ for $8.1 billion (NAVTEQ was the industry leader in global geographic data providers as of its acquisition in 2007).
This period has only been experienced for less than a year. However, Microsoft has not been able to save Nokia's mobile phone business. To this day, the market share of Microsoft mobile phones is still not optimistic.
Neither Nokia nor Microsoft was able to stand on the new track. Therefore, the transformation of the enterprise is very important.
We can compare it to another creature: ants. Ants have hundreds of millions of years of survival experience on Earth, and when they find new habitable environments, they will move in groups. However, when the food source is about to be mined, the vast majority of ants will not realize that they are about to face a desperate situation of survival. Biologists are curious: Why didn't this species go extinct?
Scientists have found that there are always a few ants in the colony that do not follow the collective action, they are looking for new survival resources. This small group of ants changed the fate of the entire species, allowing it to survive to this day.
Today, when our "old gold mine" is about to be harvested, when our targets are still targeting competitors, when we are still competing for first class on the Titanic... Has anyone ever thought that the successful experiences we talk about have actually become history?
If the ship overturns, what's the use of sitting in first class?