More and more traditional industries are being hit by the internet

Today more and more traditional industries are being hit by the internet, many enterprises are facing the challenges of the Internet, want to better understand the Internet. So, the word Internet thinking spread, but also more and more hot, but I am very worried about the internet thinking finally become a "package cure all Diseases" of the universal Medicine. In fact, in the face of the rapid development of the Internet, we are still playing in its seaside children, even if there is internet thinking, it is a few small waves of the sea.

But as entrepreneurs who have worked on the internet for nearly 20 years, I think that traditional companies must understand the characteristics of the internet economy, unlike traditional economies, in order to better meet the challenges. If the traditional economic thinking into the Internet to compete, it is tantamount to the Sharks climbed to the land to fight with the leopard, is sure to lose. Therefore, the traditional enterprises that are ready to transform to the Internet must understand the characteristics of the following Internet economy.

First, the user is supreme.

Traditional economic Enterprises emphasize "customer (customer) is God". "This is a two-dimensional economic relationship in which businesses provide services only to those who pay." However, in the Internet economy, just use your product or service, that is God. So the Internet economy advocates the credo that "the user is God." "On the Internet, a lot of things not only not money, but also the quality of the special good, and even pay the money to welcome people to use." Recently, there are two software to call the car very happy, passengers with the software successfully under the single, you dare to give passengers 5, I would dare to 10 pieces.

Many traditional companies do not understand the rules of the game, that the money-paying behavior is crazy. But the internet economy is so, if cannot converge the massive user, it is difficult to establish the effective business model. So, in the snatch users, internet companies are racking their brains, resorted to bases, the development to the extreme is like a car software to see who dares to throw money, see who hit the money more.

Traditional positive thinking to the Internet domain will be ineffective, encounter setbacks. For example, 2002 years ago, the e-mail battle, the market-leading position of the 263-mailbox full turn to charges, in fact, this is the traditional "customer is God" thinking. As a result, users have given up 263 of mailboxes and turned to free NetEase mailboxes. Finally, the number of users in the 263 mailbox dropped sharply, and now it is hard to hear it on the market.

Second, experience is king.

We should know that the Internet age is an era of eliminating information asymmetry and an era of information transparency. In the internet age, consumer behavior has changed. In the absence of the Internet in the traditional period, the relationship between the merchant and the consumer is based on information not known. In layman's terms, buy the essence without selling. But, with the Internet, the rules of the game have changed. They can compare the mouse point, and can be easily discussed with each other online, consumers become more and more initiative, more and more have the right to speak. The traditional marketing based on asymmetric information, its effect will be less and less, and in the Internet economy, the product user experience will become more and more important.

Today, all products are highly homogeneous, but in the end, you find that the decisive factor in winning is actually the user experience.

What is the user experience? For example, I open a bottle of mineral water, after drinking, it is really mineral water, this is called experience? This is not called experience. It is only by putting one thing to the extreme that it is beyond expectation that experience is called. For example, someone handed a bottle of mineral water, I drink the original is 50 degrees of Maotai. This is beyond my experience. Suppose it does happen, and I'm going to write a tweet that absolutely forwards more than 500 times

In the Internet age, if your products or services do well, better than their expectations, even if you do not put a penny ads, consumers will be willing to share online, free for you to create Word-of-mouth, free advertising for you, and even you have become a social topic.

In the past, manufacturers to sell products to customers, get the money, manufacturers hope that this user is best not to find their own. However, in this era of user experience, the manufacturer's products are delivered to the user, and the product experience journey is only just beginning. Today, more than advertising and other marketing is more important, is the customer in the use of your products produced by the feeling. Apple rarely advertises, but every time a new iphone comes out, a large number of customers will repeat the purchase. If your product is doing well in the experience, the user is aware of your presence every day using it, which means that your product is producing value every day.

Third, free business model.

The business model on the Internet summed up nothing more than three kinds. E-commerce, advertising and value-added services. But the three business models have a common premise that they have to have a huge, free user base. On the Internet, only a large group of users as a basis, a percentage of the rate of pay to generate enough revenue, can generate profits.

Therefore, the Internet economy stresses that the first is not how to obtain revenue, but how to obtain users. This is where traditional manufacturers easily misread the Internet. Many manufacturers to enter the Internet, the first to think about how to make money, simply think that as long as the Internet technology, with the Internet as a distribution, promotion platform, success will come naturally. Such an understanding will surely lead to failure.

Hardware is also entering the era of free. But the hardware is free not to refer to the white people, but the hardware to sell at cost price, 0 profit, and then rely on value-added services to make money. Why can internet hardware not make money? That's because hardware is no longer the only link in a value chain, but it becomes the first ring. TV, boxes, watches and other internet hardware, although not to make money, but become the Internet manufacturers and users to communicate between the window, as long as the window exists, Internet manufacturers can create a new value chain, through advertising, e-commerce, value-added services and other ways to earn money.

The final result, is only the production of hardware, selling hardware manufacturers, if the Internet can not learn the thinking of its value chain by the Internet after free, may only become a foundry, earning a meager profit, while the value chain of high value-added is to provide Internet Information services manufacturers to take away.

It's not alarmist, it won't happen right away, but this trend will be seen in the next five years.

Four, subversive innovation.

In the Internet, subversive innovation is very much, also happen very fast. Not necessarily to invent a Coca-Cola recipe, or to get a great patent. Now more and more subversive innovations appear in two ways. One is the innovation of the user experience, the other is the subversion of the business model. Business model subversion, with the old saying, is that you put the original very expensive things, can find ways to reduce the cost of particularly low, even the original charge of things become free. I said Taobao, micro-letter, 360, this example is too much, free business model, including Internet phone, internet hardware, subversion is very powerful. What is the innovation of user experience? is particularly simple. Is that you make it simple to have a complicated past.

For consumers, you want to do a huge consumer market, if you can reduce the threshold, just said one is the threshold of money, one is the threshold of the use of barriers. It can produce the power of miracles.

If you want to evaluate Apple's success, we'll do a very simple experiment. If you have a 3-year-old child or a 70-year-old parent, you give him an Apple device and give him a traditional computer. 3 minutes, which one is easiest to use? I have studied many examples, finally why Apple can overturn? Because human nature is one of the most basic things: like simple, we are the laziest. There is another basic thing in human nature: like cheap. You have to make things cheaper, even free, and make things simple, you can impress people, you can win the user beyond the expectations of the experience of the Echo, you can win the user. You win the user, you have laid a solid foundation for your success.

Many times, from the user's point of view, from your side, to observe your users, watch your supply chain, watch your swim up and down, you will find that there are many very complex problems have not been simplified, expensive things are not cheaper, or even free. There must be a chance of subversion in this area.