The organization change of the traditional channel electric business development of home building materials

The traditional channels of home building materials to develop electricity business, this is inevitable. It is estimated that each traditional channel is already doing or planning. And without exception will be the O2O model.

However, the electric dealer is only a general concept. For traditional channels, "what does the Power quotient mean?" "may become the first problem that must be clear, and then the question of how to do the electricity quotient."

Therefore, this article on the electrical business of home building materials, traditional channels for the issue of what this problem from the perspective of enterprise organizational change.

1. Historical challenges and opportunities

2013 should be home building materials, traditional channels of large-scale electric shock to the beginning of the Internet. 2012 Taobao Cat's double 11 shopping spree sounded the alarm of the traditional channel crisis of home building materials, and the 2012 CCTV economic figures awards ceremony tens of thousands of Wang Group chairman and Alibaba board Chairman Ma Yun's 100 million yuan to gamble, the electric dealer to the traditional channel business challenges to a new climax.

At the 2012 CCTV annual character awards ceremony, Wang and Ma Yun set up a gamble: to 2020, if the electricity business in China's entire retail market share of more than 50%, Wang to Ma Yun a billion, or Ma to Wang a billion.

Ma Yun in 2012 years double Shilai to say this:. "I personally firmly believe that the day cat shopping carnival will be a signal of China's economic restructuring, that is, the new economy, the latest marketing model of the traditional marketing model of the war, so that all manufacturers traders know that the situation has changed today." For the traditional industry, the war may have begun! ”

This is the electric dealer to the traditional economy gambling, is the electricity merchant to the traditional Enterprise declaration of War Book!

Faced with the challenges of the electric business, Suning Jindong concluded: The past 20 years, suning from small to large, from the region to the country, always face competition. I deeply feel that the competition is eternal, constantly changing is the opponent and the means of competition. The new decade, not peers have become peers, not rivals have become rivals. This is not a challenge and competition for Suning, which is a challenge for the entire retail industry, which is a competition for all retail businesses.

No doubt, regardless of Ma Yun and Wang to gamble who will win, the traditional enterprises are faced with the serious challenge of the electric business. In a way, this is a big challenge to life and death. Traditional channel for home building materials, this challenge is particularly grim, because home building materials electric business channel has superior to the traditional channel marketing chain (see "Home electric business channel marketing chain Analysis"), occupy the home building materials market future competition strategic commanding heights.

However, the challenge is also an opportunity and a once-in-a-lifetime opportunity. The traditional channel of home building materials should use the historical opportunity of electric business development to adapt the organizational change of the Times.

In my opinion, this should be the traditional channel of home building materials to deal with the electric business strategy of the correct understanding, but also should be the traditional channel business planning the starting point of the electric business strategy.

On the other hand, if there is no corresponding organizational change, the electric business strategy is difficult to finally achieve.

2. Organizational change in traditional channels

We are in a time of great change. Any enterprise to keep up with the pace of change in the times, it should be without hesitation to carry out organizational change.

Touch our home building materials the traditional channel business organization changes The original reason, is the electric dealer to the traditional channel challenge. However, the traditional channel of home building materials need to change the reason is far more than the challenge of the electrical business.

The first is the development direction of traditional channels. We see that domestic building materials traditional channels and other goods sales channels are different, it is actually a commercial real estate development needs of the sales channels. One of the characteristics is: home building materials brands and other industries than the concentration is very low, each category has n multiple brands. The main reason is that almost every home building materials of the traditional shopping malls have tens of thousands of or even hundreds of thousands of square meters of area, need hundreds of or even thousands of brands to fill. And the traditional home building materials market scale is now more and more large, 300,000 square meters, 400,000 square meters, ... 2 million square meters! To fill such huge space, of course, a large number of merchants, so there are every shopping malls each category has more than 10 or even dozens of of the phenomenon of brands.

Therefore, home building materials traditional channels commercial real estate properties, determines the home building materials market maturity. (Interestingly, the more advanced home building materials supermarket model, and not like department stores or food supermarkets in China to replace the traditional mode of shopping malls.) The reason for this is discussed in another article. ）

Do consumers need this many brand options? Obviously not. In the case of product quality and price is not transparent, the choice of many brands for consumers is almost a terrorist task and experience. Luxury in the decoration of the home building materials shopping malls, the face of many brands, consumers are overwhelmed with trepidation, due to the lack of necessary brand and product knowledge, consumers in the transaction with the merchant appears so thin and weak. In a society where there is a general lack of trust, the transaction costs of traditional shopping malls are considerable.

In other words, the construction of traditional shopping malls of home building materials, not to meet the needs of consumers as the starting point, but to meet the needs of commercial real estate development. Therefore, who pioneered the development of traditional shopping malls to meet the needs of consumers, who can be in a new round of competition to gain a leading position.

Interestingly, as I wrote this article, see the Su ning Jindong to Su ning crisis reason summary, its first is "the traditional joint model makes the retailer excessively relies on the commercial real estate model, but does not understand the product, does not understand the consumer demand, the consumer's discourse power and the attention economy will decide the retailer's destiny".

The second is the traditional channels of operation. Jindong that the retail industry relies on commercial-real-estate models, while at the same time talking about ways of doing business. The industry may differ in content, but the essence is the same.

Home building materials, traditional shopping malls with the rise of domestic real estate development. In the rapid development, its drawbacks are not significant. But when we enter the post-real estate era, the drawbacks are revealed: Huge shopping malls need a large number of merchants to complete the rental tasks, and a large number of merchants need a lot of precision consumer traffic to achieve profitability. When subjected to the double pressure from the net purchase and the property restriction, the traditional home building materials shopping mall has a serious shortage of consumer traffic, and the shortage of this kind of precise flow is permanent and will become more and more serious.

Home building materials, traditional shopping malls business model, basically play the landlord (or two landlord) role, there is also the Jindong said "do not understand the product, do not understand consumer demand" problem. Unless the traditional home building materials channel operators to change their mode of operation, in the market competition to get enough to support their own operations required flow, otherwise only waiting to be eliminated. Because "the consumer's voice and attention economy will determine the retailer's fate." ”

The third is the development of the enterprise itself. With the development of enterprises, the operating environment of enterprises is changing (the presence of electricity dealers is only one of them), the enterprise's scale is growing, the enterprise's business content is developing, the enterprise's business process is changing unceasingly, the knowledge structure and the work focus that the enterprise needs is changing unceasingly, the enterprise's organization structure and the management also more and more complex. Although the enterprise is constantly changing according to the corresponding adjustment, but at a certain stage, the original organizational structure can not rely on a series of small adjustments to change, then need to call organizational change. (on the concept and theory of organizational change, no more verbose.) Interested in reading about this book. ）

Generally successful home building materials traditional channel business, there are less than 10 years of the more than 20-year history of development, if history has not been a major organizational change, the opportunity for the development of electric business is a good organizational change of time node.

In a word, the traditional channel of home building materials should be the electrical business development as an organizational change to do, so as to the electric business development More perfect more effective, can finally enter what I call "big business without electricity" realm.

3. Change the enterprise in the name of the electricity merchant

Organizational change is a complex system engineering, is not my here a short essay can be explained. So this is just a simple talk about home building materials, traditional enterprises can use the power of the development of the opportunity of the enterprise to do what aspects of the change, a discussion. Traditional enterprises can according to their own needs, if necessary, with the help of foreign consultants to determine the development of the enterprise changes in the specific content.

1) Organizational structure. Organizational structure is the basic frame of enterprise management, and is the Division and cooperation system to complete the strategic goal. Home building materials Traditional enterprises of the development of electricity, one of the important work is to solve the traditional business and the issue of how to integrate the electric business. This integration, first of all, is reflected in the new organizational structure of the enterprise change. Whether the integration can be realized smoothly under the line, the organizational structure change is the key.

2 Corporate culture. Culture is the value orientation of the enterprise. Cultural change is the most critical and difficult part of organizational change. Enterprises should define new values and slogans according to the strategic objectives of change, establish exemplary models of new values, and excavate moving stories that can spread new values, and so on.

For example, the power of the era of competition requires more attention to user experience, more attention to after-sale "last kilometer" service, more emphasis on line under the spirit of coordination work, and so on. Are these new values widely publicized as the important content of corporate culture change in the development strategy of the electric business?

3 Business process. The development of the traditional electric business will eventually be implemented into the integration of the line. The main content of the development of electric business is the division and cooperation under line. This requires the development of new online business processes based on the strategic innovation of the Electric business and standardization.

4 Knowledge System. New business of course need new business knowledge, in the process of electronic business of traditional enterprise, need to discard some outdated knowledge, timely supplement new knowledge, and make it with original effective knowledge mix together and precipitate down. This requires the electronic business in the process of all employees of the enterprise to carry out the system of knowledge training.

In the knowledge system, it is important to point out that the enterprise management team, especially the core management team, need to update the knowledge system of the whole team first, and the management team members should be supplemented if necessary.

5 Merchant integration. Merchant integration is always a topic of interest to any enterprise, but suffers from no more effective means. Now the development of the electric business provides a once-in-a-lifetime opportunity: the traditional home building materials distribution channels may be changed due to the development of electric business! We know that the traditional home building materials distribution channels are basically based on the classification of regional agency. The net buys will break the geographical agent the restriction, but the home building material electricity merchant's O2O characteristic, will retain the geographical agent the characteristic. Traditional enterprise-leading business integration strategy, may determine the future of home building materials industry distribution system. (This should be a topic full of excitement and mystery.) ）

6 User relationship. Compare the traditional channels of home building materials marketing functions and marketing chain of electric business channels (see "Home electric business channel marketing chain Analysis"), we know that the relationship between enterprises and users has undergone a fundamental change. This will also become an important part of enterprise change. Redefining and managing the user relationship under the new operating environment will determine the strategic position of the enterprise in the network market competition.

Finally, refer to the organization change four principle of managing Master Drucker to end this section: first, organized abandonment of yesterday, "What to give up" and "What to give up" need to be systematically carried out; second, to improve the organization, including products, services, production processes, marketing and other aspects; third, to explore successful experience; Create changes systematically.

4. Big Business Without electricity

Originally written here should end this article. But I also want to talk a little more about the results of organizational change, a new concept: big business without electricity. (Note: This article is preceded by "from Suningyun to discuss big business without electricity")

The dialectical wisdom of the Chinese is that when a thing develops to the extreme, it tends to the opposite of things. So we have foolish, Sangro, slow-witted. The same logic, the electrical business development to the extreme, when the electrical business fully integrated into the work of each department, when the electrical business has become the lifeblood of each employee with the company, the concept of the electric quotient is diluted or completely disappeared. This is what I call "big business without electricity".

In other words, electrical business development is a means, not a goal. The goal of the development of enterprise electric business is the "big business" of "no electricity", which is the return of the original traditional enterprise after being reborn. The implication is: the core business of the traditional enterprise, after the development of the electric business is still the core business, but more solid.

In the name of the development of the electricity business organization change, and finally achieve "no electricity" "big business."

Suning Jindong recently to suning Electric Business Development 3 Year summary is: "First, the main force of E-commerce should be the shop, and not the electricity business, regardless of the store or the electricity business, the essence of retail profit depends on the localization of the operation and services; second, the development of E-commerce should be led by the retail enterprises, not by the electric business service providers dominate, E-commerce is the real economy is not a virtual economy, the virtual economy leading real economy will inevitably lead to bubble economy. ”

This is Suning Jindong's cloud quotient, may with us speak of "big business without electricity" the same reason.

(This is the first, this is the original, only the representative's personal views.) All rights reserved, reproduced or quoted please indicate the source. ）