Explore the right way to live, embrace the great times

In the more than 20 years since the advent of the Internet, the underlying architecture of society has undergone tremendous changes, and as long as there are optical fibers, information travels almost as fast as the speed of light, and the way in which information has spread has changed dramatically. The internet is not just a tool for the industrial age or a simple technological advance, it should be considered an independent era, and the most powerful subversion is the era of the Internet that overturns the industrial age. The power of time subversion has always been unstoppable, looking back, the seemingly powerful northern Navy eventually defeated in the Sino Naval battle, which is actually two different times of confrontation, is the agricultural era in the industrial era before the fiasco.

The old system is overthrown, to survive, must flee to the new era. The prerequisite is to understand the survival structure of the internet age, to transform the Internet thinking, in order to find a new way of life. On the "Internet thinking", the noise is more than insights, the concept is wantonly packaged, many of the arguments remain in the "surgery" level, the lack of logical deduction of thinking. As my teacher, the philosopher Mr. Wang Dongyue, said: "From the point of view is unable to solve the problem, we must reconstruct the world Outlook and basic theory." "This article will combine logical deduction and empirical research to discuss several issues with our friends: Is there an independent internet age? What are the living structures of this age? What are the modes of thinking that are required in the Internet age?

The existence structure of internet age from the view of value net theory

In the theory of subversive innovation, there is a core concept called "value Net". The value net has three major characteristics, cost structure, performance attribute and organization form. An enterprise in a value net will follow the cost structure formed in the value net, and consider some performance attribute as the most important value judgment. In the competition, enterprises gradually formed the core of resources, processes and values of three major factors as the organizational capacity. Once the value NET is formed, it is very difficult to escape, the enterprise thinks that the manager is making the decision, in fact, it is decided by the value net.

To understand the internet age as a new value net, from three aspects of cost structure, performance attribute and organization form of value NET, it will be found that the survival structure of internet and the remarkable difference between industrial times can be summed up by three 0 models: the cost structure has zero gross profit, and the product cycle is zero on performance attribute. The degree of redundancy is zero.

The zero gross profit margin is the unique cost structure of Internet value network, and it is one of the basic characteristics of the age of distinction and industry. In the industrial age, enterprises must maintain a certain margin to pay the channel, marketing, inventory and other costs, because the product to reach the cost of users, enterprises must through advertising and other marketing tools to build brands, relying on channel distribution of goods, not clear the exact needs of users in the case of production led to a large number of and into the Internet era, the cost of information greatly reduced, "all industries are media, all content is advertising", to mediate the trend of the day, channel decline. Excellent products can enable enterprises to directly connect users, know the exact needs of users, to get rid of advertising, channels and inventory dependence, and then can do to sell goods at cost price, so that the business model more viscous and competitive, in the follow-up contact with the user to explore other ways of profit.

Product cycle to zero, refers to more attention to aesthetic and emotional experience. The Industrial Age strives for the truth, pursues "the science is the first productive force", the science is the Industrial Age value net most important performance attribute. However, as the industrial age has developed, we have found that the pace of technological progress is not proportional to the increase in happiness, which confirms the axiom of the innovator's dilemma that "technological progress is faster than market demand is growing." And "The more advanced the technology, the shorter the product life cycle will be," the logic deduced to the extreme, the product cycle will be infinitely closer to zero. In other words, new technology is surpassed by invention, and new science is falsified when it is discovered, and new products are declared expired once they are released. The product cycle of zero also means that the functional experience has not been optimal, consumer demand for emotional experience more than the need for functional experience, aesthetic will replace technology to become the Internet value network The most important performance attributes.

The third major characteristic of Internet value network is the redundancy of human and human being zero. In the industrial age, the company is the center of mechanization production, thus forming a company-centered social organization. Into the internet era, the fast-changing, open fusion of the internet to dissolve the center, each master terminal with the Internet, a person can become a company, "U disk" survival is not groundless. In the ultimate logical deduction, as the division of labor becomes more and more fine, people and people's redundancy is zero, that is, everyone is a type of work, two of the same individual, there must be a eliminated.

Comprehensive above logical deduction, the survival structure of internet age is, gross profit margin is zero, product life cycle is zero, human and person's redundancy is zero. As a value net, it is different from the cost structure, performance attribute and organization form of the industrial era value NET, its independence is self-evident.

The three principles of Internet thinking extended

The management system of industrial times, represented by Taylor thought, has effectively guided the development of more than 200 years of business civilization. But as Godel's first law says, any system that is consistent with itself must be incomplete. An effective system, its internal logic must be consistent, but the logical self-consistent system, there must be boundaries. Gross profit margin is zero, how to achieve profit? Product Life cycle is zero, the enterprise depends on what survival? The redundancy of people and people is zero, what is the future of individuals and organizations? How should it be managed? This is a question that Taylor's system cannot answer, and the Internet is the boundary of the industrial-era management system.

One of the Internet thinking: Intermediate cost is zero, profit deferred

Huang Taigi, founder of traditional cuisine, Hering, said: "By changing the way information interacts, changing the cost structure of the original industry, this is the internet thinking." This sentence is not all right, but leaving the cost structure to talk about internet thinking must be pseudo Internet thinking. Internet value Network Enterprises can remove the intermediary costs, eliminate marketing, channels, inventory of the traditional manufacturers for the natural dimensions, launch a "reduced-dimensional attack." For example, Millet and Tesla, through social media contact users, in their own electric dealer sales products, according to the user order quantity of production products, so as to achieve "0 marketing fees, 0 channel fees and zero inventory costs" of the cost structure, which for traditional manufacturers is unthinkable.

And enterprises often put this part of the cost of saving to consumers and users, in order to follow the way of deferred profits to gain profits. In other words, "one blow" has been lost, enterprises to survive, must acquire the ability to fight many times. In the smartphone industry, for example, the traditional handset manufacturers sell mobile phones to sell hardware as the core, the hardware sold to customers, sold out that is the relationship between the end, considering shipments and market share. and millet selling mobile phones, is to establish long-term relationship with users, to operate the user as the core, in addition to hardware sales, from the game of transport, content services, accessories sales can be further profits, so the pursuit of millet is the number of fans, MIUI users, version change times and software applications. Data show that millet 2013 years of spare parts income has exceeded 1 billion yuan. Lei even think that the ultimate profit model of millet is the tip model, the cost of products to price materials, if the user is satisfied, then pay tips. In this way, the seller will take the initiative to improve quality and service.

In the case of large retailers, Gome, Suning and Jingdong have tended to zero in real-estate transactions, with Gome and Suning earning 70% of their profits from commercial property, while Beijing-east plans to make 70% profit from online finance. From physical transactions to commercial real estate or online finance, this kind of profit deferred mode means that the enterprise transforms from the Industrial age to the center of the Internet, the user as the center, the user becomes the most important asset of the retailer and the foundation of the realizable.

Amazon, for example, sold the Kindle hardware at a loss, but pulled the reader's consumption through hardware. Users who own the Kindle spend an average of $1233 a year, and users who do not own the Kindle spend only 790 dollars a year, up 56%. Even in the most traditional business of selling pancakes, Hering is able to attract a large number of fans from the media, from selling pancakes to selling any product that is of interest to the community, such as aliens speaking. A small pancake business is valued at 700 million yuan, the ping effect surpasses the Apple store, relies on is also many blows, the profit deferred ability.

The second of the Internet thinking, the function becomes necessary, the emotion becomes strong need

Into the internet age, product life cycle "Fast forward", the product's glorious period is greatly shortened, Fangsheng side die, side dead side, competitive advantage and brand advantage are in the fast decay. For many enterprises, it is too late from the product accumulation to the brand, like a meteor across. Incumbent enterprises have the advantage of "fast rot", the opposition enterprises by virtue of a product can be turned out, a birth can be in bloom, millet, micro-letter, balance treasure is an example. Subversive survival has become the norm of the times, and enterprises need to have the ability to constantly subvert themselves, rapid refresh. So it's not hard to understand that Wu Bofan will send a sigh of "strategy has become ridiculous in the internet age." Apple's greatness lies not only in its ability to launch the ultimate products of Apple computers, ipods and iphones, but also in its ability to constantly subvert itself, mapping this era of subversive survival.

In an era when a product can subvert a giant, the importance of products is unprecedented, but product excellence is not synonymous with technology leadership. As Lo Zhenyu said, "The industrial age is a concrete function, and the internet age is loaded with interest and emotion." "We are at the crossroads of technology and humanity," as Jobs said, "Functional attributes are naturally the product's essential attributes, but emotional attributes rise to the standard of an excellent product." When we are willing to pay a premium for the iphone, not because it has more functionality than other phones, but because it pays for the beauty of the good design and experience. In contrast to Huawei and millet, Huawei pursues function and technology, and Ren once said that the three functions of mobile phone is communication, image and operating system, obviously the logic of the industrial age. But the Internet enterprise millet makes the handset, not only in the function exceeds the user anticipation, and has given the handset "the enthusiast exclusive", "The inspirational", "the cool" and so on many emotional attributes, gives the user exceeds the commercial value, the intense emotion experience, this is the emotional experience to the functional experience wins

The product that is endowed with emotion will have personification characteristic, form "charm personality body". Internet brands are the founders, products and fans of the collusion between the CEO as a spokesperson, only the ultimate product experience, fans will spread. When the marketing and product integration, but also to achieve the dimensionality reduction. We see that on the one hand, China's most well-known advertisers maozhong on Weibo, on the other hand, the millet mobile phone does not advertise, this part of the cost of purchasing top parts, using high-end suppliers to improve quality. Lei said: "I have been learning with Microsoft in the past 20 years, emphasizing marketing, in fact, good companies do not need marketing, good products is the largest marketing."

The third of the Internet thinking mode, the personal heresy, the organization community

Escape to the mobile internet age, the most difficult to change is the concept of innovation, as well as organizational, management innovation. Human and human redundancy is zero, the individual to survive, needs will be able to play to the extreme, and even become heretics. What is heresy? After returning to Apple in 1997, Jobs launched the "thought different" ad to regain the soul of the already mediocre Apple. "To a wild group of people, they are non-mainstream geeks, rebellious warriors of tradition, a handful of troublemakers, Maverick." They look at the problem differently, they don't like rules, and they don't take orthodoxy seriously. This is the true portrayal of heresy. Heresy is naturally incompatible, but no one can ignore them because they have changed things and pushed the human process forward. Leading the world's several companies, Facebook, Google, Apple and even millet, in the selection, employing standards and methods are adhering to the pursuit of the ultimate talent of the spirit, positive speed trend of two-dimensional: either masterpiece, or dog excrement, not outstanding must leave. WhatsApp, who has just been bought by Facebook for 19 billion dollars, has only 55 employees, and only 4 Kakao Talk development team.

When individuals move towards heresy, they attract followers, thus forming the social community of the Organization. At the heart of Netflix's widely circulated talent management document is the idea that "the best benefits you can offer to your employees are not to treat meals or team events, but to recruit good people to work with the best." "Good internet companies believe that what they need is not a group of mediocre people, but a few or even a top talent." Because a top person, will attract a group of like-minded, spiritual speculator, level of people. Therefore, the mainland fragmented into islands, a community emerged.

The redundancy between people is zero, one day will reach the "person is the company", in this trend, the company's boundary is broken, the company becomes lighter, the team becomes smaller, the level becomes less, the management fades. For example, Apple is extremely focused on meeting efficiency, unrelated people are not allowed to participate in meetings; Millet chat group instead of organizational structure, the implementation of internal project management; Huang Taigi with micro-credit group processing, the management of these internet companies have been "alienated." The management of alienation has three characteristics: generalization, externality and gaming. First, the management of the generalized, millet with a fast-paced working atmosphere to affect the behavior of employees, so that business management to drive staff management; second, management externalities, let the user wide participation, to the user's spit or praise to drive staff progress; Again, management gaming, everyone is a game of the son, is not the business of millet is a reality show?

"Management and business who is more important" is no longer a problem, embedding employee management into business management, integrating internal communication into external communication, and integrating all management, culture, values and visions into one thing: making products that scream to the user. The product becomes the vane that leads, inspires and measures everything. McDonald's and Twitter have canceled the COO position, the future will disappear the post will have personnel, finance, President of the Office ... In general, management and product integration, management has been "dimensionality".

The way of life in the Internet Age: product-type Community

Based on the existence of the internet age structure and thinking mode analysis, I would like to propose the internet era of survival mode: "Product-oriented community." This is the new characteristic of social organization in the internet age, it is a kind of new connection way outside family and enterprise. The product-type community is not the only way to survive the Internet civilization, but this path is currently validated and logically deduced as a path.

Using the concept of science fiction "Three bodies", the weapon of high dimensional civilization attacking the low dimension civilization is "descending dimension". If the internet thinking compared to the high dimensional civilization, then industrial thinking is a low dimensional civilization. When the high dimensional civilization of the intruder to the gross margin, to inventory, to channel, to marketing, to manage, these independent dimensions are reduced to zero, low dimensional civilization is undoubtedly devastating attack. Such an era has come, the traditional industry must "from the palace" to survive, the so-called "from the palace" is to learn to reduce the dimension of survival.

What is the most important dimension of the Internet age when all kinds of dimensions are gone? products and communities. The most important thing in the Internet age is the product, compared with the industrial era, the cost structure and performance attribute of the product have undergone significant changes. The essence of the product is the intermediary of the connection, which carried the specific function in the past and now carries the interest and emotion. Excellent products can directly bring a considerable number of users, fans groups, based on this group often can also carry out more business, realize the profits deferred. When the enterprise can operate its own product community, to achieve marketing and product integration, fans and users in one, it is not necessarily through the product direct profit, there are more profitable ways to explore. Enterprises in the Internet era need more contact with users, fans and the market, so its organization is destined to be more flat, will achieve management and product integration, internal and external unity.

The "Product community" already has some successful practices, such as Luo's thinking. Luo's thought is an excellent product, it revolves around "luo fat" constructs, both has the high quality knowledge sharing, also was endowed "Luo fat" the human relation temperature. Products behind the Lo Zhenyu I "Die knock himself, happy others", in the Internet media to a new road, no doubt is a heretic. It is because of his extraordinary, "Luo fat" this charm personality can attract millions other users, forming a congenial, mutual trust of the community. Despite the free video and micro-content of Rom thinking, but in the community, there are a variety of business models can be explored: such as "Love Me to support me," the member recruitment activities, such as the first two days of shaking the media internet Publishing experiment-"Do not play through the list of items, not advance preheating, not discounted sales, Only to recommend people's charm personality endorsement as the core Book newspaper Limited flash purchase activities, 8000 sets of 499 Yuan book gift bag in 90 minutes were robbed. The traditional publishing house is struggling, the traditional bookstore aihongbianye, discount is the normal, but why the publication of the thought of the book can be successful? Lo Zhenyu said that the traditional publishing industry with trust, I say this is the product-oriented community.

Another example is Luo make Hammer phone. In the industrial age, a former new Oriental English teacher can assemble so many resources to make a mobile phone that accords with the beauty of craftsman in his mind, it is impossible. But in the internet age, Luo's heretical temperament and craftsman spirit not only made him stand out, but also assembled a community, and the hammer phone was a medium for him to connect with the community. The community is not only hot on the hammer phone, but also willing to pay for this never-Met hammer phone. Hammer phones may be just a small number of mobile phones, but in the future, perhaps this "individual is the company", only for a community tailored to meet the Community spirit products business practice will be more and more, become the norm.

The end: Embracing the great times

A new era has come, there will be no internet companies and traditional enterprises, only the internet thinking and traditional thinking of the contest. Want to survive, need to use the Internet thinking, to do the most distant things from the Internet. Millet, Tesla, micro-letter, tick-tock taxi, Huang Taigi pancake, carving ye brisket, KakaoTalk, WhatsApp, Luo thought ... They are not unrelated exceptions, they are so similar, the core of which is Internet thinking. Their appearance proclaimed the advent of an era, a dimensionality-reducing era of survival, an era of Fangsheng death, a subversive era of survival, an era of hyper-temporal access to resources, an aesthetic era, and an era of spiritual return.

Lo Zhenyu also said, "aquatic animals do not envy the four hooves of terrestrial animals." The real solution is to give birth to a lung instead of breathing with your own gills. "In Nature, evolution takes a long time, and it is not easy to escape from the industrial age to the internet age." 2013 many people suffer from "Internet anxiety disease", envy not better to network, understand the Internet's survival structure and internet thinking, look for their own way of life, embrace this exciting era.