The internet is to reduce the cost of user decision

Everyone is advocating the internet to break information asymmetry and to mediate. In my opinion, the Internet is precisely the construction of a new intermediary, the difference is that this new intermediary model provides a higher efficiency, better information display, better decision-making support system and better connectivity. The development of Internet fundamentally solves the "connection".

Like the American regiment between the user and the merchant, tick the taxi in the user and the taxi, easy to use the vehicle between the user and the personal vehicle service provider a new intermediary mode.

The basic of this new intermediary model of Internet construction is to reduce the cost of user decision and transaction process. In the modern economic society, the social goods are very rich, how to find the most convenient and reasonable way when they need it is the fundamental problem to solve this new intermediary mode.

Many people have the choice of syndrome, whether it is the category, supply, or secured transactions, trust endorsement (such as Friend Circle Marketing) is the problem of information retrieval and selection. Taobao, 58 such a large platform will be the vertical electrical business gradually subdivided, is the choice and decision-making experience. Because of the large platform itself, there is no way to provide users with a good decision-making process experience (such as Taobao, "comment" Design of the starting point is to give users decision support, but now the comments system makes users more and more difficult to make decisions);

At the same time, the large platform is more information display, not vertically into the industry, the vertical industry value chain did not improve and upgrade. 58 with the city at present in the vertical subdivision of the investment and acquisition of the starting point is also to make up for their own short board.

The essence of the Internet is connection. Baidu connected people and information, Tencent connected people and people, Alibaba connected people and goods, the vertical O2O will connect the people and services.

O2O of all levels: the first layer is "information flow", has been resolved, such as Baidu, 58 with the city, the second layer is "physical flow" through the logistics system to solve. "Information flow + physical flow (standard)" is the basic framework of the traditional electric business; the third layer is "service flow", O2O's life service, including community service of 001 communities, easy to use car service, Beaver's craftsman's door-to-door service is a breakthrough in the deepwater area combined with the Internet and traditional industries. In addition, there are other streams of different industries, such as the printing and packaging industry in the cloud printing business file flow.

In all business models, the most advanced tool is "brand", the brand maximization solves the cost of the user decision, brings the user's consumption habit, so the platform is good, the vertical electric quotient, the O2O is good, the ultimate goal all is establishes in the user brain brand localization and the cognition, this is a long long process. Typical examples are all kinds of luxuries, as well as Wal-Mart and McDonald's.

In this mode of thinking, the thinking framework and path that we consider how each vertical industry is interconnected will be very clear. The essence of the Internet-piercing industry is finding the biggest part of the industry's decision and transaction costs, which is the best entry point for disruptive innovation.