Lei Internet thinking Seven words

For Lei, internet thinking has been condensed into seven words: "Focus, extreme, word-of-mouth, fast." Recently, small series of millet business model conducted a survey, for millet on the "internet thinking" of the implementation of a general understanding.

Since its birth, the internet has gone through 30 years, but it has again and again amazed the human. For the first time, it has conquered universities and research institutions around the world, bringing an unprecedented exchange of knowledge to the top innovation platforms of all human societies. In the middle of the 90, the Internet commercial Carnival, launched a number of shiny start-up companies, some of the agile scholars have also introduced the "New Economy" theory, that the information age of knowledge as the core elements will be a manufacturing-centric society to the service-centric society.

Then, many of the companies in the bubble quickly disappeared, so that investors lost money, the "new economy" with the dotcom bubble has become a "principle of perpetual motion" as a laughingstock. But some of the resilient Internet companies have survived, and more internet companies have gradually sprouted and grown into trees in the ruins left by their predecessors. More importantly, in the process of intentional and unintentional parallel, consumer life and the Internet are integrated, the children born in the internet age has gradually become the mainstream of society.

Today, the Internet has created a new storm in the manufacturing industry, with some talking about the "internet mentality" of the company's operation, and others looking for opportunities in the concept of "interconnected everything." There is also a lot of questioning, economist Xiaonian said: "Internet thinking is a very absurd formulation, I am not too (recognition)." The internet is one of the many innovations in human history, the first major innovation is the steam engine, but I have not heard of a steam engine thinking, followed by railways, electronics, also did not mention thinking, there is no internet thinking abroad, we often cheat others also put themselves into the, We should think about how to use the Internet to develop new products and services, to create value for customers. "Is this a new round of hype, or is it coming to reality?"

"Internet thinking" has been a very hot word in China's entrepreneurial community in recent years, and many entrepreneurs have come to understand its meaning. "The Open, interactive nature of the Internet will change the entire industrial chain of manufacturing," said Mr Liu. Therefore, the use of good Internet thinking, manufacturing chain on the research and development, production, logistics, marketing, sales, after-sales service and other links, to the homeopathy and change. "Recently in the Smartphone field entrepreneurial star Enterprise Millet Chairman Lei is the" internet thinking "of the effective preacher, he will be concentrated on the internet thinking Seven words:" Focus, Ultimate, Word-of-mouth, fast. " I recently studied the business model of millet, and found that millet is the implementation of "Internet thinking":

Direct sales: Millet with Internet E-commerce model selling mobile phones and other intelligent consumer electronics products, greatly reducing the cost of sales, at the same time, the establishment of a rich ecosystem (such as value-added services, logistics, customer service, etc.) to support the successful implementation of the direct sales model. Traditional consumer electronics manufacturing companies sell their products to wholesalers and then sell them to retail outlets before they reach consumers. This process has a number of middlemen, pushing up the final sale price of the product, also makes the inventory management chain is very long.

Product synthesis: As Lei said, "Millet is going the opposite way to the iphone." The iphone is minimalist, millet walks the synthesis route, seeks to support each kind of function. The so-called synthesizer is, so that all users participate in the development process, the last millet presented is suitable for different users of different use habits. In fact, the product feature is to the long tail distribution of consumers to provide more value a way, the other way is to do a lot of personalized products to meet the needs of different customers, both of these practices in the Internet era can be inexpensive. In the big industrial era, cheap mass products have only the most versatile features, while specially designed niche products are expensive luxuries for the elite to enjoy.

Iterative Innovation: Millet product Innovation adopts the "open crowdsourcing, fast iteration" mode. This model allows manufacturers to understand customer needs well, and quickly iterate the introduction of a new generation of products, Millet's core software MIUI weekly release a version. At the same time, in the process of product development, enthusiasts are widely invited to participate in the new functional positioning and product testing plays an important role. The traditional way of innovation is linear, including planning, design, development, testing, introduction and several other steps, this process is generally one to two years, after a long wait for consumers to get products, if found that many features are not their own expectations, then have to wait another year to see possible improvements in the next version.

Fan Center: Millet in a very short period of time to establish a High-quality fan culture group, and continue to excavate and gather its value. For example, marketing takes a gaming and entertaining approach to interacting and engaging with customers, which not only increases the loyalty of the fans to the brand, but also attracts fans to make multiple purchases, and allows the company to build the product and brand awareness with smaller sales costs. The practice of relying on fan enthusiasm, ability and time debris to help the company develop has become a new competitive point for companies in the internet age. Traditional companies have also been emphasizing "customer-centric", but the traditional marketing model is the company's unilateral propaganda, broadcast-style, this approach is not only expensive, nor suitable for the use of the Internet to "play" a new generation of consumers.

Edge Central management: Millet Company is a research and development, customer service and sales as the focus of the company, a lot of functional outsourcing. Millet structure flat level less, to the front-line staff fully decentralized, customer-oriented to the edge of the center, so employees can focus on customer demand direct decision-making, without waiting for superior instructions. Staff performance appraisal is also based on a lot of direct feedback with customers related indicators, thus forming a customer-centric fast culture. In contrast, the traditional corporate governance model based on the top management of the headquarter, and the level of administration, has a slow response rate and a lack of ownership. "Rapid response" in the internet age is a key element in the company's success.

Misplaced profit: Millet uses a pricing approach in which Internet service companies separate key services and products from earnings, such as Google's search platform, which provides maximum value to users, and its profits come from ads that plug in search results. Millet's main hardware products to the cost of sales to enlarge customer size, the use of MIUI platform to sell electronic products, but also the sale of higher profit accessories to profit; In terms of cost, research and development, marketing and sales, inventory management and other links have more obvious advantages, In addition, the mode of using the direct selling products of millet also greatly reduced the sales cost and inventory cycle. For traditional hardware companies, the price of a product is often based on the production cost of the product, plus the operating costs of the company, plus the appropriate profits.

Millet perfected the above business model and became the fastest growing company in human history by sales (non-financial). Millet in the establishment of about 2 years 03 months beyond the 1 billion U.S. dollars (6.3 billion yuan) sales, the establishment of less than three years in 2012 than 2 billion U.S. dollars (12.6 billion yuan) annual sales, the establishment of less than four years in 2013 beyond 5 billion U.S. dollars (31.6 billion yuan) annual sales. Five years into the business of millet, 2014 estimated sales of 80 billion yuan (13 billion U.S. dollars). These figures are beyond the records of all the fast-growing star companies such as Amazon, Google, Facebook, Priceline, Groupon and ebay.

It can be said that "internet thinking" is unique and real, it has made many Internet companies debut, has been a rapid transformation of many traditional industries, and is forming a strong wave of Cuikulaxiu, destroying the old order of the manufacturing industry, but also the emergence of a group of new industrial companies.

The advent of the 1769 watt version of the steam engine, is considered to be the first industrial revolution of mankind's iconic products. It not only led to a large number of industrial product innovation, but also contributed to the world's population and economic standards per capita sharp rise. The more important effect of the industrial revolution is to let human say goodbye to the farming and pastoral life after years, from the countryside to the city, from the scattered farmers into a population. This magnificent process, must use the "industrial revolution" to describe and is definitely not "steam engine thinking" These few floating words can be summed up and summed up. The advent of the Internet will not end with the introduction of several new products and services or the addition of a "mindset", which has changed the way people live and made the dawn of the third industrial Revolution.

Therefore, for the manufacturing industry, people should argue that the question is not "internet thinking" whether there is speculation in the composition, but the internet brings about how the new ecological environment will impact on the existing industrial structure and order. In particular, the consumer electronics industry entrepreneurs in today's wave has no choice, do not surf, perish.