Internet reengineering Traditional Enterprises: the opportunity and dilemma of innovators

Note

How does the Internet transform traditional industries? Is this a dilemma or an opportunity for innovators? October 16, 2014, Fast Company 2014 China's best innovation companies in Beijing, more than 60 innovative companies to participate in the selection. The event, which focuses on the world's newest innovative value through the innovative company selection process and the list release, discovers China's home-grown innovative genes to inspire Chinese innovation.

Intern reporter Xu Xianchong

Newspaper reporter Chaoxiao Finishing report

Zhang Tianyi (founder and CEO of New Dong): "The antique dealer model does what it needs."

For the past six months, I have been thinking about a question: What is the biggest problem that China is now preventing food from becoming bigger? The Chinese Restaurant industry has an annual output value of 3.5 trillion, three times times higher than the internet industry. Chinese food ranked first is true Kung Fu, an annual output value of 2 billion, accounting for less than One-thirtieth of the share.

Why not? My most direct feeling is that the turnover rate is too high, which enterprises to solve this problem will be bigger. Now FU New Dong recruit a waiter's treatment close to white-collar. Why can't you recruit people? Because now do the catering waiter to the main, they do not care about salary, value is the work is fun, whether there is a sense of achievement, whether there is professional identity.

I summed up the business logic of New Dong as "antique business model", such as going to pan home to buy things, if you do not understand antiques also bargain, the shopkeeper certainly ignore you. I make rice noodles is to do a work of art, I have my integrity and adhere to in the inside, I do is authentic changde beef noodles, resolutely do not improve, do not need outside to give me a lot of advice. This logic is actually nothing new-Apple teaches. Nokia any cell phone to do, now poured out, Apple's phone on one, you want or not? What I do is demand.

Some question the market, I think this is precisely the opportunity to bring the Internet, as long as you do is a gadget, and then the small people must pay for you, Beijing, Hunan only 300,000, but there are more than 30 million people in Beijing, China has eight major cuisines, as long as one-eighth of the people want to eat Hunan, there are 4 million, The future if the New Dong really can do the most authentic Changde beef noodles, there must be a chance.

Another is to curb development strategy, only traditional food and drink to rely on crazy open shop to increase brand influence, so easy to die, today's new food is not the case. New Dong first store in the basement, only 37 square meters, valued more than 10 million, in this era, with the amplification effect of the Internet, a traditional brand of commercial value and market position, is no longer the relationship with the entity 1:1.

The History seagull (small Southland North China area general manager): "No product innovation, catering industry is struggling"

In any industry, product innovation is an extremely serious problem that every enterprise faces. Especially for the very traditional catering industry, if the product does not innovate, enterprises will be difficult. For example, fishes, seafood from the refrigerator when the need to defrost, it is not only a very troublesome process, but also easy to damage the structure and taste of ingredients. Therefore, the small Southland is currently in Chinese food use of micro-freezing technology, the thawing process takes only a few minutes, and does not damage the ingredients themselves.

Each dish from the birth to the market will take at least 5-6 months, through our professional research and development team, from the chef's creativity to raw materials, and then to the process and pricing, the whole process is a very strict system. As long as the guests like is we have to consider to do, we do not cook like to eat the food, but the guest likes to eat dishes.

O2O is also the catering industry in the future must face, small Southland has a "big future" plan, put a lot of simple ingredients on the line, into the community, like a lot of coins to buy the same goods, to facilitate more people's needs.

After some changes have taken place in the national policy, the catering industry will easily be eliminated if it does not make adjustments in the subdivision area beforehand. Now the small Southland has a lot of industries and brands, including Chinese food, hotels, full of desserts, South Small pavilion, small Southland, spa and barbecue, will introduce Japanese and North American brands, many of them are directly from abroad, relatively mature, corresponding to the crowd is relatively clear. Our experience is that multi-brand management should not be confused, from the product structure to the locking of the crowd and then to marketing, must have a clear demarcation point, can not generalize.

Xu (Vice president of the net): "The internet has changed the status quo of education inequity"

2010, I went to the expo to see the city's future pavilion, there was a 20-square-metre area that showed China's future education: 20 years later, five days a week, Chinese students have only one day to go to school for Physical education, and other times at home with the best teachers in China, All over the country and even overseas students to learn knowledge, this is the national planning of the Education blueprint. The present situation is that the educational situation since Confucius has not changed fundamentally. But these changes will take place as the Internet enters.

The 4-year network has accumulated 3 million paid users, covering the early education, childcare, primary and secondary schools, adult education and so on. In our model, each student can learn the required knowledge only a dollar a day.

Product innovation, we pay attention to the user experience, but also focus on technology development. SSO3.0 is a system we spend 10 million to build, with this system, our teachers make a 45-minute courseware, the time required is one hours, and the same industry time is 40 hours.

There are three categories of current online education, one focused on the Internet, one is the offline enterprise rising to the cloud, and the third camp is bat such a listed internet giant sinking to do education. The first kind of advantage is that the gene of the Internet, will not be bound by the inherent patterns, the disadvantage lies in the funds, technology, users and so on, these enterprises if they do not provide online education services, it is only to build a platform. Bat such giants and traditional enterprises in the financial technology is not missing, but for each other have a lot of not understand, to cooperate when there is a big problem.

This September the first day of school, we entered a town in Zibo, Shandong Province, a rural middle school, students with a sickle to class, the next class to cut grass. The university has entered the school to provide computers and share the lessons with the best teachers in Shanghai every day. Students are very active when they reach the Internet, he is no longer the teacher of a rural school in Shandong, but from the forefront of the best teachers in the country, the internet is breaking the boundaries of time and space, our education is unfair to change the status quo, the Internet to make learning simpler, happier and fairer.

Ye Daqing (360 President): "The formation of Chinese online banking concept"

Rong 360 is an internet finance search engine that connects people and money via the Internet. What does finance mean to people? Lack of money needs to go to a loan; I think the Chinese people for money is very blind, we hope that through the Internet search method, change the Chinese concept of money. Of course, we are both the financial search platform and the ecosystem service system, which is not in the United States.

Innovation is a process and certainly a result. I think Peer-to-peer is a model of Internet financial innovation, which breaks through the existing system framework to achieve real subversive innovation. The Chinese "innovation" and "creation" is also a traumatic "creation", which means that truly subversive innovation should enter the core and essence of a market, breaking the existing monopoly.

From a value perspective, 20 years ago, who can think of Alibaba or Beijing east to buy goods? Search is the same. Now the success rate of offline loans is very low, the success rate of micro-enterprises is only 3% to 5%. Through our search platform, this ratio has been raised by nearly 20%, up several times, making it easier for you to get a loan, which is innovation.

If 50% of Chinese people can find the financial information they want through the mobile Internet and apply for financial products, this will be a great innovation model. In the United States, 60% of people buy insurance, apply for a credit card, apply for a loan or buy a financial product at least once a year, less than 20% in China. We want to raise this ratio to 50% or even higher, which is precisely what we want to innovate--the idea of Chinese online banking.

Liang (general manager of former Wheat Hill): "To make the sale of bread to the extreme"

The original Wheat hill is a bread-only bakery, it seems strange, but other brands, they do not only make bread, but also sell cakes, cookies, desserts, mid-Autumn Festival selling moon cakes, Dragon Boat Festival selling Zongzi. Even some bread brands account for 40% of the beverage revenue. The original Wheat Hill 91% revenue from our single product: bread. We made the sale of bread to the extreme.

In the bakery industry, we found two ideas that might be opportunities. We usually eat more Japanese-style bread, sugar content 22%, oil 15%, but is generally accepted, European-style bread is very healthy, but gradually weakened, because consumers can not accept such a hard European-style bread.

So we think the opportunity to come, we developed a little oil, less sugar, less salt, no preservatives, no trans fats, do not use the essence of new products. In fact, our entire team was in Beijing two years ago and spent 14 months opening a second store. These 14 months are making bread, bring Taiwan delicious bread to Beijing, to undergo very strict test: air, humidity and materials are completely different. We thought we were standing in the air, but we didn't admit that we were pigs.

The second is the operation of innovation, we put the store all side cabinets are removed, so that everyone into the store, under the illumination of the light, see huge bread, are amazed at the space and atmosphere of the building, for our guests, enjoy the fashion elite the same way of shopping.

We will be a good user experience bigger. Bread to do a great reason, because the guests must not finish, will take back to share with friends-we use to share to achieve product promotion effect. A lot of people ask, what do you want the CTO to sell bread for? In fact, from the first day of the store, we have a very complete system, developed by the team, even the front line of the cashier system is included in it. Any executive who opens our computer will know what is being developed and what is currently available, and what the cost is for each dough to be accurate to grams. In the future, our operators will open the computer and know which bread to sell and how much the scrap rate is for each store.

Billei (Vice president of Spring Rain): "Let doctors and patients have more connections"

In the former Chinese medical system, there was no relationship between doctors and patients except for treatment, but we felt that there was a need for more contact between doctors and patients in the future: for the patient to receive long-term health management and guidance for the doctor, for doctors need more patients to improve their income. We link users and doctors through this platform, allowing users to have more personal physicians and doctors with more personal users.

Now we often talk about wearable equipment and hardware data collection, in fact, for users, more need is not data collection, but for some situation of the solution.

We want to do two things in the future. Now in China's medical system, people are sick to go directly to the hospital, the hospital will produce excessive medical care, the user will also produce excessive medical needs, we through the platform of spring rain, the user's needs filtered again, the User Guide to the service environment they need. Through this link can reduce medical costs, so as to achieve the increase in medical services. We do not want to do hospital things, but the hospital debris time together, on a new platform, at this time for the Chinese to provide more medical services. Spring rains will not increase the number of doctors, but can increase the channels for doctors to provide services. The second is to realize the value of the data, we through the service so that users have more understanding of their own situation and evaluation, and doctors on their own treatment options to discuss.