Cloud is a kind of business democracy

Shared cloud Platform gives small companies the opportunity to stand at the same starting line confrontation, the ultimate competition is the business model of competition.

Editor's note: In the 1848, the Nevada mountains discovered gold ore soon, many gold miners poured into the California State, triggering a vigorous gold rush. Who knows that the fortune in this gold rush is not the man who digs the gold, but the man who sells the water at the mine. In IBM's view, the cloud platform is the equivalent of gold, and a variety of application providers based on the cloud platform are the people who sell water on the mines. In this way, the combination of infrastructure and value-added services, the enterprise is no longer a separate individual, but through the entire industrial chain of the ecological community.

To better understand the implications of cloud for business and management, this newspaper interviewed IBM Global VP, director of IBM's China Research and Development Center, Dr. Wang, in the hope of providing a coordinate to help companies locate themselves in the cloud's business ecosystem.

China-Europe Business Review (CBR): How does IBM make a leap in management through cloud computing, and what are the new changes in the management model?

Wang: For cloud computing, many people only talk about the technical level, in fact, to manage the update also has a great effect. Many of our products and services are delivered on the cloud. such as SaaS (Software-as-a-service, software as a service), E-commerce, internal organizational structure also in cloud. Many people call us multinational companies, in fact, I think we are a global integration Enterprise (gie,globally integrated Enterprise), the world is a home, which also embodies a "cloud" concept. IBM has formed a "day does not fall" development model, any time period, anywhere there are research and development center in the work, in support.

Within IBM, using cloud computing, we have achieved some level of improvement in the following six areas. The first is the management level, which we call "Blue page", through which you can see the resumes of any employee-but not the usual résumé, but the organizational structure of everyone, and even the areas in which everyone is good. Through this system, the HR department can find out all the work-related information of any employee. This is a huge job, IBM has 400,000 employees around the world, IBM's internal organization is also very complex. It's all about the cloud.

Second, all IBM processes are delivered online and are ultimately available. For example, in the business travel management, booking plane tickets or hotels are on the Internet, in a convenient, fast and also realize real-time management.

Third, it involves developing cloud and testing cloud. In the past, enterprises were buying machines to laboratories, and each group was independently tested for development. Now all of our development processes are on the cloud. This also avoids the cost-wasting of overlapping research and development between different groups.

Finally, the product development, the staff can use similar to Google Labs platform to taste. All new software, our employees have the opportunity to give priority to trial.

Finally, cloud computing is also used to socialize within the company, IBM has its own internal social platform Sametime, similar to QQ; Secondly, the meeting also combined with the multimedia conferencing system and the use of social tools, not only more convenient meetings, but also after the information can be tracked. This ensures that all agendas are accessible and secure.

Culture building, our company's DNA is a culture created by bringing together global staff and brainstorming. We have 2-3 days in the world from more than 100 different regions of more than 400,000 employees, as well as our customers, experts, governments, academics and other online discussions. It is cloud computing that has helped us achieve this synchronization of communication. Sometimes we do research and demand on products, and we also use this form.

Shuffle Industry Cloud

CBR: From the IBM perspective, now that products and services are delivered through the cloud, how does IBM affect its upstream and downstream businesses through cloud influence?

Wang: Cloud computing will bring disruptive changes to the traditional industrial chain. Concretely embodied in, first of all, cloud computing is the general trend, it will enable enterprises to do business, the way to provide services, the way enterprises consume services, personal consumption of the way, life style has undergone great changes. This trend is a very attractive place for clouds. Second, cloud computing is closely linked to other new technologies, such as social commerce, E-commerce, data analysis, and Internet of things. It shows a new service delivery model, with a variety of business model innovation behind it, and a substitute for the existing business model, which will bring about subversive changes to the traditional industry ecological chain. This will give China's soft and hard suppliers a lot of opportunities. Third, cloud computing provides guidance and justification for government decisions. Four, for enterprises: Enterprises will enjoy the benefits of it centralized management: reduce costs, more flexible, on demand. In addition, the relationship of various links in the industrial ecological chain based on cloud is more closely than before. With the advent of concepts such as social media and online communities, business decisions will no longer be decided by one person or person, and decision-making becomes more democratized and transparent.

Another example is the logistics industry, by doing a cloud, the logistics industry itself will form the effect of shuffling. With the logistics cloud, all the transport and logistics needs of the information are all in the cloud above, together, so that the logistics cloud platform can do a dynamic real-time optimization. Not only know where the vehicle is, but also know the most suitable route, but also know which goods can be transported when the return? In such a way, the logistics industry is becoming more efficient, unable to adapt to the competition is out of the enterprise. At the same time, logistics enterprises can provide better logistics services with the help of logistics cloud, such as promoting the industry linkage of manufacturing and trading enterprises, thus triggering a regional economic promotion. At present, China's logistics costs accounted for 18% of GDP, the United States only 5%~8%. In other words, we have 10% of the space can optimize the efficiency of logistics to enhance economic benefits, if converted to GDP, is trillions of yuan per year.

In addition, there are manufacturing clouds. Manufacturing cloud can bring creative, manufacturing resources, design, market and so on all aspects together, through a cooperation, make the manufacturing resources are well shared, to enhance the efficiency of the manufacturing industry.

In addition, from the perspective of urban economy and regional economy, the utility of cloud resource integration and optimization will be very obvious. For example, such as Zhoushan, Zhejiang, to do the ocean economic platform, the most important thing is to do bulk cargo transactions. This involves trade, logistics, financing, banking services and so on, and if they are picked up, it forms a full support for the bulk of the deal, which is a very important IT support for the Zhoushan-centric ocean economic platform. Therefore, the cloud for the promotion of regional economy, also has a very important role.

On the other hand, in the United States, IBM's public cloud has been very successful, if the future opportunities, we will also bring these experiences and models to the Chinese market, and China's telecommunications companies, industry leaders and other cooperation, for more enterprises to provide pay as you go (on-demand) services. In this mode, the role of IBM, the role of telecommunications operations, and the role of the enterprise will be relocated.

CBR: But we observe that many e-commerce enterprises do not do logistics cloud, but build warehouses, such as Jingdong. Do you think there is any gap between these enterprises ' understanding of the cloud and the cloud platform that IBM wants to promote? Why do many enterprises not choose logistics cloud?

Wang: There are two different ways of thinking. It is impossible for an enterprise to do everything, because distraction to do some business will negatively affect the development of the core business. Only by fully realizing the social division of labor can all resources be used better and the efficiency can be maximized.

In addition, when you talk about very good logistics companies, or E-commerce Enterprise's own logistics channels, you may see IBM's technology inside. What we bring is a multiplication of ascension, which will form a social ecological chain, bringing about increased efficiency, but also fully shared business improvement. Imagine, a cloud computing platform, Sifang Logistics public platform makes all grafts platform complement each other, shippers, logistics companies and customers can form a resource flow and value flow of the "Golden Triangle."

On this basis, through our software for the platform to provide reasonable optimization analysis of the "Golden Triangle" in each link data mining, for security reasons, the cloud platform for each enterprise, the individual can only see their own needs of information. The system not only knows the exact location of each truck at a certain point in time, but also knows the other transport demand information in the same location, so that it can achieve the matching work of the truck when it return by the cloud computing system. This means doubling the volume of business for logistics companies.

The competition of the cloud is ultimately the competition of the business model

CBR: Some people think that the cloud may be more suitable for China's fast-growing market, because there are too many uncertainties, companies should be based on the changing external links to make rapid response. For the Japanese Toshiba, Sony This kind of itself fine degree already very high, the internal automation decision-making system already relatively perfect enterprise, is not to the cloud dependence not so high?

Wang: I don't think so. In fact, the bigger the business, the greater the need for cloud computing. IBM, for example, is an international large enterprise, our management system has been more robust, decision-making process automation level is also very high, but we still see the value of the cloud. From early on, we started a variety of attempts within the company to land the cloud. IBM is not only a large-scale use of cloud computing, the global IBM employees linked together for work discussions, research and development activities. At the same time, through the public cloud and our partners, mobile employees, customers and other links to better collaboration. This will increase business collaboration and influence across the boundaries of the enterprise.

Large enterprises should not only set up their own private cloud, but also should be relaxed, using the enterprise in the industry leadership, cooperation with the third party, from the private cloud to encompass the entire industrial chain of upstream and downstream enterprises of the industry cloud, will build itself as the core of the industry. On such a platform, the development opportunities of enterprises will be immeasurable.

On the other hand, the cloud is also a manifestation of business democracy. Before, large companies because of rich resources, can put their own IT systems to do well, small companies do not have such strong financial and technical support, in the technical disadvantage. And now share cloud platform, also give small company opportunity, so everyone is standing in the same starting line.

In this fair environment, the ultimate competition is the business model of competition. If the business model is incorrect and inefficient, it will be eliminated sooner or later. For example, the publishing giant borders group failed to keep pace with the digital revolution that rocked every corner of the media world and was about to go bankrupt. Later on the Amazon because of the grasp of the online book trends, slowly growing up.

So, big companies have to make smart decisions, cloud computing is a good tool to take advantage of it, or small enterprises may be the big business subversion.

CBR: For many Chinese enterprise leaders, they may not have it background or industry insights, how should they adapt to this change in business trends?

Wang: The first is corporate culture. Second is the business model, the division of labor more and more fine, want to clearly know what they are good at, positioning if accurate, the ultimate success. The third is transparency and democracy in decision-making and the use of data. For example, in the company's social media, to allow employees to communicate fully, to implement democratic decision-making, reduce risk, not because a person to make a wrong decision to affect the entire company's success or failure. Cloud computing is the tool that helps companies dig inside, use data for more accurate decisions, and make real-time decisions and update them in real time.

It is dangerous to not be aware of external changes, not to use cloud computing to change your company, to focus on data analysis, or to manage it in its original way. This is the present enterprise's living environment, the decision maker sees the situation direction. As now, cloud computing is a choice.

Cloud brings a planned market economy era to big society

CBR:IBM's transformation stems from the modular innovation, through the innovation becomes the industry helmsman and the rule-makers. Now do Cloud management, IBM How to use this helmsman position, better promote upstream and downstream enterprises, create symbiotic relationship, to achieve benign competition?

Wang: Society is a cooperation society, the Division of labor between enterprises, mutual benefit, modularity does play a big role. For example, manufacturing companies like Mercedes, reducing costs is critical. At the American Mercedes-Benz base in Atlanta, IBM helped them to do logistics inventory optimization. In the assembly line of the factory, the assembly line is the outside of a door, which is a container truck interface place. For example, car tires, handle accessories are a set of vehicles in a timely manner to this location, the time is predictable and traceable, which achieved the auto production of "zero inventory." In a manufacturing country such as China, if you can achieve this ability, imagine how competitive it will be.

CBR: How to define the modularity of cloud computing?

Wang: Now many industries have vicious competition, business enterprises too many, too miscellaneous, fragmented, playing price war with each other, so centralized management.

We hope that the development of the Cloud module, is a dynamic adjustment, the application of an industry to what extent, at the beginning does not need to study to optimize, this is a dynamic process. For example: Now the situation, E-commerce industry will be relatively fast to achieve this process. But we believe that the wisdom of E-commerce, beyond the current only online purchase process, will gradually increase network procurement, and then use the cloud platform to analyze demand trends, and then provide matching marketing model, after the logistics. The modularity of cloud computing needs to be adjusted to different stages of demand change.

In this whole process, we can also see social change. I think that the real big Society of the planned market economy will occur in the cloud of business trends, the whole society into a circulatory system, all industry demand data are predictable, all the industrial division of Labor is based on the optimization of resource allocation on the cloud platform. Through the cloud, the ideals of the earth of wisdom will become possible.

CBR: So the intelligent Earth is the highest product of a planned market economy?

Wang: This is my personal point of view, should be said to be the highest demand.

(Responsible editor: Lu Guang)