The internet is like a creator of value, but also a destroyer.

This year, many traditional entrepreneurs are communicating with me about the Internet. First, the internet looks like a creator of value, but in fact it is a destroyer of values.

If the traditional enterprises want to embrace the Internet, first need to go through an ideological awareness of the Internet. Here I summarize a few key words.

In the establishment of Internet business model, the first consideration is "user first". In the traditional economy, the enterprise is no "user" concept, only "customer" concept, that is, who bought my things, who is my client. But on the Internet, all successful business models are not just about "customers", but more about "users". Users are people who use your product or service, but they may not pay you, they might be using a free service or some marginal product that you don't think is important. On the Internet, a successful business model either you have enough users, or you can be free.

To be a successful Internet enterprise, having a huge user base is a very basic consideration. So many of our traditional businesses are turning to the internet, my advice is not simply to consider the internet to sell things, the original deal with the customer to move this approach to the Internet, you should first consider is not selling things but how to provide users with some valuable services, even if it is a free service. How to make more people become your users by using your services and products. On the Internet, if you are always a business relationship with your customers, then I find it difficult to establish a real connection with your customers.

In the early years, I said that the micro-letter subversion operators, some people feel that they do not recognize, they think you how to use micro-letter, do not have to pay the operator every month. But in the internet age, if a user's relationship with you is just paying once a month, you don't know what the customer is doing every day. Today's micro-mail is horizontal between operators and users of a road, including free text messages, free photos Such a good experience, this is a heavy blow to operators. On the Internet, operators may not lose many customers, but you lose a lot of users, even if they are free. These users will become the value of another business model.

2009, I do free anti-virus, when many colleagues do not understand, I asked them to see the film "the founding of the Great Cause", the film is a piece of our troops to withdraw from Yanan when many people do not understand. At that time, Mao Zedong said, the land is lost, the land is lost, the land is lost. This is the rules of the Internet, it is important that you have no users, if you have users, lost income, can be done at any time, if you for business, lost your user base, your entire business foundation will no longer exist.

All successful internet companies have proven that if they want to create business value, they need to create user value first. All business value is based on user value.

Next, I want to talk about "experience is king". In other words, how to win the user's approval, the most important point, in fact, is how to create a good user experience. In today's Internet, a wide range of information communication brings two problems, one is the consumer has slowly from the past information asymmetry, become consumers will more and more products have more exchanges and understanding.

In the past in the traditional business, the truth is that we are more in the design of selling points, we are in the manufacturing function, and then through the advertising way to instill a large single consumer, once the product sold to consumers, my business activities are basically over. But the fact that today's Internet offers any products and services is not a selling point for the consumer, but the most important thing is that when you sell something to a consumer, or a free product consumer takes it, the consumer's experience journey is just beginning.

Today, the consumer only really from your product to feel the value you create for him, he will be able to talk to others, can form a reputation for you. What is the experience? If you provide users with a normal function, or create a normal value for users, this is not called experience, only exceed the user's expectations, to achieve the ultimate is called experience.

For example, what consumers can not perceive things are not called experience, there was an operator to promote a mobile phone when the advertising words called green, environmental protection, no radiation, but the effect is not successful. Because in the end a mobile phone has no radiation, as consumers can not judge. As a traditional advertising model this method is feasible, but it is difficult to form a true reputation on the internet.

The third key word is "free". The internet's subversion of many traditional business models is dependent on free. In the traditional world, real free is almost impossible. But on the Internet, free is not only possible, but it is likely to build on this free and mature business model. Many people feel that the free why is popular on the internet, this is a loss to make a yell?

In fact, all of the services you provide on the Internet, whether it's an app or a software or a website, the cost is basically fixed. The more users you have, the lower your cost to each user. By advertising them over the internet, everyone who advertises earns more than your cost, and your model is set up.

For traditional entrepreneurs, it's hard to make it free for your core products, but when you're transforming the Internet, you might want to consider doing a free virtual digital service or product, and then offering it to your users free of charge, which will help you get the most out of your users as quickly as possible, Consider building your user experience and your business model on the basis of a large number of users.

In the future, with the advent of smart hardware or wearable hardware, I have a prediction that the era of hardware free will soon come, except that hardware is likely to be sold at cost prices for free. In other words, we used to sell TV to make money, TV peer competition is more intense, we still have the bottom line, because all need to have a small profit, but with the Internet competition, they basically TV prices are sold at cost price, and then, you will sell the TV to make money the model may not exist.

Because TV is sold out, the user experience has just begun, TV is no longer a commodity, TV will become a means for you to obtain users, TV will become a bridge between you and users, you through this bridge to continue to provide users with a lot of new services. You find that this free shock means the biggest subversion for many traditional TV companies. In 35 years, many of China's original hardware-selling industries will be subverted by the Internet. In retrospect, if you make money for others free, you need to extend your value chain and gain revenue in the new value chain, which you can view as a network service more often.

Many people transform the Internet, the most important thing is that he found the Internet free of this business model like sunflower treasure, to practice this work, must first from the palace. Many people find that access to the Internet is not competing with others, is their right hand in the left hand, their own on the one hand to establish their own new business model, to eliminate their traditional advantages, many people hesitate.

Finally, talk about a key word, subversive innovation and micro-innovation. There are two kinds of subversion: One calls the user experience subversion, the other is the subversion of the business model. The flip of the business model is that you make a very expensive thing cheap, or you turn a charge into free, which is the flip of the business model.

The user experience subversion is also very simple, is the original very complex things become very simple, so simple to the extreme it will also produce subversive applications. In a way, when a traditional enterprise is subverted by an internet company, they either make things free or simply make the experience of many users very simple. When traditional entrepreneurs want to transform the Internet, they may try to make a micro-innovation from the perspective of user experience. I am very opposed to everyone to do a platform for the Internet strategy, make it very ambitious, consumers will not buy your strategy, consumers will not buy your platform, consumers are always the most selfish, they only ask feelings.

Two days ago, I talked to a car company and said that auto companies could not become an internet company overnight. But you can do a little thing first, like adding a free Wi-Fi in your car. This will bring a good experience to consumers. For traditional entrepreneurs, in fact, the internet is not scary, sometimes you from the consumer point of view, to find a breakthrough, so that consumers in these breakthroughs can feel your intentions, can feel you to create their more extreme than the expected value, I think this is a lot of enterprises in the Internet subversion.