CEO: The open platform of the electric business should consider its own genes first

Source: Internet
Author: User
Keywords Electrical quotient or dialogue first of all these

CEO of Bingbin Electric Power business

CEO of Li Jongwei Network

Partner of Xu Yunjian Company

Zhang Jibin Jiuxian Network Mall http://www.aliyun.com/zixun/aggregation/18229.html "> Division General Manager

"21st century": At present, many electric business websites are pushing the open platform, and the investment speed is very fast. Why do these companies invest so much in the strategy of an open platform?

Li Jongwei: The open platform approach is actually a return to commercial property. Through the extension of consumer purchase demand, open platform can obtain more consumer dividend. If the consumer dividend is temporarily unavailable, it can obtain dividends from the supplier. In other words, the platform can expand consumer demand downstream, earning money from suppliers upstream. Business models are like this, but to allow suppliers to stay on the platform for a long time, it is necessary to use the purchasing power of consumers to support, otherwise the platform will not make dividends. Anyone can do open platform, but in the end is a very mathematical problem, is through the distribution of traffic to achieve the best cost, consumption efficiency of the highest mode.

Xu Yunjian: I think there are two aspects, the first is to meet the needs of user diversification, the other is to see the business opportunities with third-party suppliers. Platform and vertical site cooperation, from the input-output is a very effective way. As a system integrator, the platform can gain a lot of benefits in the process of consolidating resources.

21st Century: What do you think is the power of an open platform and what kind of investment do you need?

Bingbin: I think the investment is mainly in business processes and systems. However, business processes and systems typically do not require particularly large inputs. In the early stage of the platform, it still needs to operate more "light", or the vertical site to complete its own supply chain operations. Because the platform business volume is small, it is difficult to play a scale advantage, only to reach a considerable scale, the integration of these levels of service is meaningful. For example, Taobao may be tens of billions of of sales before considering the introduction of logistics services. Therefore, the level of service is a big trend, but all need in a certain scale time to show economic benefits.

Xu Yunjian: The platform first needs to think about the scope of the future business coverage, how strong the business forward-looking, and then design the framework structure. Specifically, these inputs include database construction, IT systems, warehousing and logistics systems, security systems (transaction security, user privacy), and so on, these need platform builders to do a lot of input.

21st Century: What problems do you think you will face if the platform wants to scale up by simply stacking?

Xu Yunjian: First of all, the platform's business development and the company's management capacity, technical facilities construction is related. If the background construction can not keep up with the expansion of the front desk, it will certainly bring about the problem of runaway management. Second, in the introduction of vertical Web sites, you need to consider your development strategy, is to do a limited category or the more the better, is to go specialization or pluralism, is a limited or unlimited diversification, such a platform strategy will be the core of your ability to build a guiding role.

Zhang Jibin: I think the platform should first consider its own genes, that is, its target customer base is what the customer needs in the end is what, can not blindly expand. If the new category does not match customer demand, it will lead to an increase in operating costs. For example, the original focus in the food field of the business, suddenly to sell oil, or power tools, it is certainly not suitable.

Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.