Fees are free and disruptive innovation in business models

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In the recent year, when I went to some enterprises to do the communication, the organizers often asked me to talk about subversive innovation. At this time, I will generally ask: Is there a big leader present? Subversion of innovation, English is disruptive innovation. Disruptive the original meaning of the word is to break or stop the old order, let things in accordance with the new rules. Disruptive innovation refers to an innovation that creates new values, new markets, breaks old markets and replaces them.

I am afraid of the big leaders after hearing, patting my shoulder said: "Small weeks, talk about innovation is very good, but subversion, this will not be said." I thought that some people in the country translated disruptive innovation into destructive innovation. I speak of disruptive innovation? Is this a class enemy?

In fact, the basic definition of subversive innovation is very simple, basically divided into three kinds:

First, you can make the original very inconvenient service or products to do a special convenience. For example, for a true photographer, a digital camera has a higher pixel than a film camera. However, for the vast majority of ordinary people, the film is too inconvenient to develop, and rinse out before you know exactly how good it is. Unlike digital cameras, which are seen in camera, they can be easily shared on the Internet. This is the subversion of the user experience.

Second, the original expensive things become unusually cheap, or the original charge of things into free. I think it's a subversive business model.

Third, the innovation of the technological revolution, for example, you find a new material, in applied science, there is a major innovation breakthrough, resulting in the power of revolution. But such a situation is not much, especially for Chinese enterprises is elusive.

The business model of subversion, the most thorough is to change the charge to free. No matter what product, once becomes free, the price becomes 0, completely eliminates the price threshold, changes the game rule, this to the competitor's Wallop is also quite big.

China's internet inside the earliest subversive innovation, the first free revolution, not only 360, but also Taobao.

Taobao and easy to play, the market rules are powerful ebay set up, such as ebay for buyers and sellers to charge transaction fees to sellers to collect shop fees. To maintain the system, ebay strictly prohibits buyers and sellers from contacting each other directly.

If Taobao also followed the same rules of the game, then it can never beat ebay, because the ebay money, to brand brands, resources have resources, will use the entire ecological chain crushed Taobao.

Whether intentionally or not, Taobao beats ebay with a free model. Since ebay to the buyers and sellers to collect transaction fees, then I Taobao for both buyers and sellers free. Since ebay does not allow buyers and sellers to meet, I will allow them to meet. Taobao's free model produces at least three innovations:

First, because the free, all sellers go to open a shop, do not open white not open. When the sellers all come to open the shop, the commodity of the Taobao becomes extremely rich, the buyer comes. When the seller gathered enough time, you search Taobao a toilet paper, can come out 1000 of businesses, may be more than. At this time, whose position in front of the search results, it is necessary to pay Taobao. So, in fact, Taobao abandoned ebay's original model and innovated its business model.

Second, as far as possible to facilitate the transaction of buyers and sellers, which is the ultimate goal of E-commerce. In order to facilitate trading between buyers and sellers, Taobao innovative new means of payment-Alipay, use it to pay is very convenient for users to create value. When massive users use the payment tool, it creates business value for Taobao.

Third, in order to facilitate the transaction as far as possible, Taobao not only does not accept buyers and sellers of transaction fees, but also innovative out of a flourishing Taobao, to facilitate the exchange of buyers and sellers. Under the ebay system, buyers and sellers cannot communicate directly, which is clearly not in line with China's national conditions.

When buyers and sellers go to Taobao to shop, this creates a huge subversive power for ebay-follow up, destroy its business model and lose revenue. Do not follow it, you will see the loss of customers.

360 Antivirus is the same. It used to cost 200 dollars to buy a free software, and 360 turned its price into 0. Free impact is very large, so that traditional antivirus companies face the same dilemma as ebay-follow-up will lose revenue, not follow up will lose users.

Business model of subversive innovation, the original fee into free, seemingly oneself, but innovation is forced out, as long as the user can create value, naturally will produce commercial value. 360 Promote free security, my shareholders also ask me every day: You Zhou is for the common people do some good, you are the traditional industry subversion, but you rely on what to make money? To tell you the truth, when I was doing it for free, I didn't really want to make money. However, I believe that as long as we can converge to hundreds of millions of of the user base, will certainly be able to make money.

We inadvertently put the business model in the browser, we use 360 security guards and 360 antivirus solution to the rogue plug-ins, viruses, trojans and other security threats, but more and more Trojan horse through the Web page to start the way to the browser to invade the computer, especially the search engine hidden in a large number of phishing fraud site, This forced us to consider using browsers to solve security problems. Later, we found that the browser is originally an Internet portal, which can build search, navigation, web games and other business.

Therefore, I often quote "the founding of the Great cause" inside Mao Zedong said, "The land in the loss of people, the loss of the people, the land are all." "I think this sentence contains the most simple business law, that is, you just pay attention to the needs of users, to meet user needs, create value for users, will naturally produce commercial value."