Sina CTO Xu Liangje: Internet company only innovation to protect enterprise evergreen

December 9 Afternoon News, the first Sina Innovation competition held in Beijing, Sina Joint President and CTO Xu Liangje in the live speech, in the increasingly fierce competition in the mobile internet market, only with a strong sense of crisis and lasting innovation ability of enterprises, to maintain evergreen.

Xu Liangje points out that industry leaders are often caught in a dilemma when faced with the challenges posed by start-ups. He thinks there are two reasons for this: 1. There is no resolution to subvert the existing business model; 2. The momentary short-sighted behavior and the rut often lead the enterprise to miss the best time to adjust the strategy and reorganize the resources.

Xu Liangje said that the true meaning of innovation is not simply based on price or terminal advantage, but on the Internet industry in the development of internal laws, trend judgments and the audience using the psychological and other aspects of the deep understanding of the product's content, value, function and user experience of the process of innovation.

In addition, Xu Liangje that the mobile Internet market competition is still in the early stages, with wearable equipment, cloud computing, large data and other interactive technology rapid development, each subdivision of the field has a huge space.

Here is the full text of the speech

Distinguished colleagues:

Good afternoon!

In 1995, Bill Gates, in a paper called the wave of the Internet, raised the question: "Internet enthusiasts have a bold guess: can they create a device that is much cheaper than a personal computer but powerful enough to support Web browsing?" ”

If you put this problem today, everyone will blurt out the same answer: smartphones!

Today, we communicate with the outside world through smartphones or through mobile office software, or by using a variety of apps to kill time. In any way, we have unwittingly become a "24 hours online," That is: through a variety of intelligent terminals to achieve 24-hour connection online, to carry out a variety of information interaction and collision.

The complexity of the collision and the amount of interaction is still accelerating. With the Internet of things, cloud computing, the continuous improvement of large data technology, a 24-hour online "C (Connected) era" is accelerating!

With the pace of "C-era" approaching, the mobile internet era of a new competitive landscape will also be expected.

In the 1865, the German physicist Crowe Matthews had proposed the famous second law of thermodynamics: "The actual process in an isolated system always increases the entropy value of the whole system." "In the field of science, the term entropy (entropy) is used to indicate the degree of confusion in the system, the more chaotic and disordered the system, the greater the" entropy "will be.

If we regard the whole earth as a relatively isolated system, then human civilization is also an increasing process of "entropy", and the core driving force of increasing entropy is the constant interaction and collision of information.

In the "C Era", with the constant progression of "entropy", the survival and competition pattern of Internet enterprises began to change: Clear business model is no longer the only "magic weapon" of conquer; Conversely, who can ensure that the more microscopic individuals involved in the collision in a closed system, the more complex the frequency and information interaction of the collision, the greater the entropy value, The corresponding business value is also greater-this is the "C-era" "high entropy effect."

With this theory in hand, it is not difficult to understand how jobs has turned the traditional mobile phone industry, PC industry, music industry and communications industry upside down by using a few interactive mobile terminals: ――app The STORE with an ecologically sound system, triggering constant collisions and interactions between users and innovative applications.

This is certainly the best time for entrepreneurs: as long as it attracts more users and developers into an application ecosystem, interacting with each other, colliding and colliding again, entropy increases and entropy increases, creating unimaginable business value.

So, we see SNS, micro-bo, LBS, light blog, Internet finance and other innovative products such as springing up in general constantly emerging, a variety of cross-border, mixed with the creativity of the thousand sails of the wonderful picture.

But this is also the worst of times. Wanton plagiarism and imitation, infringement and quarrel ... What is innovation in the mobile internet era in which the development model of bundling + imitation is in great ways? What isn't? People are beginning to feel confused.

You have no need to say much about the importance of innovation. With this innovation contest finals, I hope to share with you two points of my understanding of the word innovation.

First, innovation is not a blind emphasis on new, odd, special, too much attention to the unique.

Both Silicon Valley and zhongguancun entrepreneurs like to put the word "subversive innovation" on the tip of the tongue. But in fact, few people can give a clear definition of "disruptive innovation". Entrepreneurs often think that as long as the product is designed to "better, cheaper, faster," there is no adverse destructive and subversive.

But in fact, the true meaning of innovation is not simply based on price or terminal advantage, but on the Internet industry in the development of internal laws, trend judgments and the audience using the psychological and other aspects of the deep understanding of the product's content, value, function and user experience of the process of innovation.

Based on this understanding, this innovation competition specially set up "innovation + value creation + practicality" three weight indicators. I believe that a truly innovative design can stand out from the standard judgments of these three dimensions.

Second, the difficulty of innovation, hard to stick to.

If we have a little attention, we will find that the Internet industry to lead the trend of innovation are mostly start-up enterprises. Most of the time, they dare to gamble on "subversive innovation", not out of active choice, but for the survival of the competitive market in the passive change. At this time they do not have to lose, so fearless.

However, the original enterprise gradually grew into a leader, but because of worry too much, become cautious, timid. For example: The Canadian BlackBerry, which used to be the leader in the smartphone industry, has lost the chance to lead the trend by lacking the courage to change, the execution of continuous innovation, and the stability of the platform.

Similar scenes are being staged in the internet industry. I often think about a question: why is the pace of innovation slowing down as companies grow in size? The enterprise that dares to break the rut and subvert oneself is less? I think there are five factors that have led to this phenomenon: Too Much of the Time;too many people;too much hate and black sheep.

In the face of the challenges of start-ups, industry leaders are often caught in a dilemma: on the one hand, a disruptive change in existing business models, in response to rival challenges, could mean that companies will struggle to gain excess profits for a long time to come. This is like: In a flock of sheep suddenly appear a gene mutation of the black sheep, it is not as valuable as the Changbai sheep, it is often regarded as affecting the interests of the group of "useless people" and abandoned.

But on the other hand: temporary short-sighted behavior and rut, often lead to enterprises miss the adjustment strategy, the best time to restructure resources, and ultimately lead to the loss of core competitiveness of enterprises, abandoned by the Times.

Like Spencer? Johnson said: The only constant in the world is change itself. The creative and successful business model of genius is bound to be copied and imitated, even if the company is as strong as Apple, as long as there is a slight burnout and lax, the same face degenerate into the "Yesterday yellow" worries.

From, in the world after the summer. In the increasingly fierce competition in the mobile internet market, only with a strong sense of crisis and lasting innovation ability of enterprises, can maintain the evergreen.

Ladies and gentlemen, competition in the burgeoning mobile internet market is still at an early stage. In the future, with the rapid development of wearable devices, cloud computing, large data and other interactive technologies, each subdivision of the field has enormous space.

Today, we are very pleased to see that the first Sina Innovation competition, a total of 127 teams submitted a new idea, unique innovative design, although the final only 6 teams have the opportunity to enter the final link, but the participation of the broad extent and great enthusiasm, All reflect the Sina people's strong sense of innovation and aggressive pioneering spirit. On behalf of Sina Management, I would like to express my heartfelt thanks to each contestant and wish this innovation contest a complete success. Thank you!