Three ways for traditional enterprises to play Internet style

Christensen, a management guru and professor at Harvard Business School, argues that there are two types of innovation, one is continuous innovation and the other is disruptive innovation. Simply understand, continuous innovation is the way of the past, and destructive innovation is to find a new way. Disruptive innovation is two endings for business, either as a destructive or as destructive.

An internet revolution swept the economy as most industries shifted from incremental competition to stock grabs. Faced with the threat of being destroyed, the ideal state of each industry enterprise is of course the destruction of the old model and the transformation driven by innovation. Therefore, embracing the transformation of the Internet has become a common topic for almost all enterprises, especially the retail industry and manufacturing industry, the challenge from information asymmetry to 0 distance is ——— user personalization, large-scale manufacturing transformation mass customization. In this process, under the multiple influences of historical inertia, corporate culture and personal factors of leaders, different enterprises have chosen different transformation paths.

Path 1 Organizational Change first

Asked why the transformation driven by organizational change, Haier Group chairman of the board, CEO Zhang said that the organization has not undergone many changes, it is difficult to maintain vitality. The two points of enterprise growth are strategy and organization, strategy follows the Times, organization follows strategy. The structure following strategy is called the "Chandler proposition" in the management world, the discovery of Alfred Chandler, one of the founders of the famous American enterprise historian and strategic management field, finds that the organizational structure of the enterprise changes with the change of the management strategy when he studies the evolution process of the organization structure and management strategy of American enterprises. The enterprise's management strategy determines the design and choice of the enterprise's organizational structure pattern, in turn, the implementation process and effect of the enterprise management strategy are restricted by the organization structure model adopted. And June Consulting Group chairman Wang Mingfu also said that the growth of enterprises there is an "organization cap" or "organization ceiling" phenomenon. If the size of the market is the limit of the growth of enterprises, then the organizational model is the company's long high ceiling. Break through the organization's ceiling, you can open the strategic space for business growth.

On behalf of enterprises: in addition to Haier, the media industry transformation also has the path of the seeker. Another example, China Telecom from 2013 onwards, and actively promote the "one to two" strategy, that is, to telecommunications and market-oriented, differentiated, the important content of the strategy is to comprehensively draw small accounting units, and actively promote the team contract, to stimulate organizational vitality.

[Case study] Haier: Big platform + small Company

Since 2005, Haier Group began to explore the practice of the single and one-win model, the essence of this model is the right of employees to make decisions based on market changes, based on the value of users to determine their own income. "Person" is an employee, "single" is not a narrow order, but the user value, the single and one win is the staff to create value for users, while realizing their own value.

9 years later, in 2014, Haier Group strategic promotion of the theme announced as "Enterprise platform, staff to create customer, user personalization." Enterprise platform is the enterprise from the original closed organization into an open ecological circle, can integrate the global resources to achieve the goal, thus evolving into a cycle of open ecological circle. Employee creation is to let employees from the original passive performers into active entrepreneurs. User personalization is to meet the personalized needs of each user. Thus, Haier's strategic transformation direction is clearer. Haier many employees in the exchange with reporters in the South have this view: The direction is clear, and now look at the right direction, the following question is how to advance.

Haier's strategy was not so clear at the outset. Zhang said, "We have conducted such a long time of exploration, because the beginning is always in the tangle, sometimes wandering in some cases may be two steps to take a step back, or even two steps back, that is, a trial and error process." ”

Zhang recalls, "there was a time when we used the E R P program to do the market and the sales plummeted ... Because the organizational structure has not changed, come up with a new process, the two are simply not right. "Zhang realizes that the process must be fully integrated with the human single." 2010, in order to quickly promote organizational change, Haier "independent management Body" was born. At that time, the autonomous business can be a person, or a group of people, in essence, to turn large companies into thousands of small companies. This is also the current Haier advanced "small Micro" company predecessor.

Since 2012, Haier has entered the networked strategic stage. The advent of the Internet era has subverted the traditional economic development mode, and the foundation and operation of the new model is embodied in the network, and the market and enterprise show more network characteristics. In Haier's view, the implementation path of networked enterprise development strategy is mainly embodied in three aspects: Enterprise without boundary, management without leadership, supply chain without scale.

According to the strategic decision Organization, organization from the principle of strategic, Haier is now through the platform-type eco-circle organization to support the enterprise to platform-oriented enterprises strategic transformation. The organization pattern of Haier Group has undergone the evolution from the triangle organization to the inverted Triangle and the platform organization. There are three main changes in the platform organization, first, the series flow into the parallel flow; second, from closed to open, resources can be accessible; third, there is no information on the top and bottom transmission. In 2013, Haier put forward a new idea of "online employees" and "entrepreneurs". Zhang wants to network the organization. Employees can become "entrepreneurs" in Haier's large platform to find their own entrepreneurial opportunities, coupled with the internal wind-investment mechanism, or staff to the community to organize the strength of small micro-companies. In the framework of this Organization, the original management is no longer a manager, or become a platform master, docking small micro-company, or to create or join a small micro-company. Zhang is trying to put the original built good ship, dismantled into countless boats, that is, small micro-company, to achieve "large platform, small company."

[expert comments] from tight coupling to loose coupling

Professor Hu, School of Journalism, Peking University:

The fundamental of the transformation is that the enterprise faces two kinds of changes: the change of market structure and the change of technology. In response to these two changes, a series of changes in management, marketing and investment need to be launched. According to Christensen's analysis, the transition could be seen as a big, established company that is pitted against new entrants to the company. The former is due to the formal and informal resource allocation process in the enterprise, it is difficult to concentrate sufficient energy and manpower on those small markets, even if logically they will one day become a big market, and it will be held by the user, can only successfully carry out the continuous innovation, but can not deal with the breakthrough innovation. And the new entrants, due to different financial incentives, more focused on the product users rather than function, more focused on breakthrough innovation, resulting in the two types of companies of the technology S-curve is completely dissimilar. In the context of breakthrough innovation, the new company will almost always win, while the old company remains in the lead in continuing innovation.

Haier will face many challenges. One of them is organizational transformation. Mainstream companies are not doing nothing in all the groundbreaking innovations. There is a case for success: A new, independent, autonomous organization around the ground-breaking business is established internally. This self-governing organization is free to allocate resources to win in a disruptive new market. For large companies such as Haier, the question to be solved is how to become a loosely coupled enterprise from a tightly coupled enterprise. Tight coupling means that each component is more interdependent, requires more coordination activities, all work is done within the company, and loose coupling means that there are many independent entities or individuals, less interdependence, more sharing, a lot of things can be outsourced. The "decoupling" of the organization is one of the challenges that Haier faces.

Management Master Gari Hammel that the most important thing to manage is to solve two problems: first, how to enlarge individual ability; Second, how to combine the abilities of different individuals. In the past, magnifying personal ability, demanding diligence, intelligence, initiative, and today determines whether the enterprise is competitive is the key to staff creativity, whether there is enthusiasm. How do you aggregate individual abilities? Convergence, standardization, sequencing, integration, optimization, in turn, the demand for action aggregation is more and more high.

Haier in the process of change, how can not only enlarge the ability of individuals at the same time to create synergy between individuals? The essence of coping with this challenge is how to be more fully networked. When emphasizing personal ability, that is the traditional market model, only emphasizing the aggregation of individual ability, it means the traditional bureaucracy, hierarchy system. Both have drawbacks, so we must combine the advantages of market and bureaucracy to a very full network of enterprises.

Path 2 Product Innovation Drive

Management Master Joseph Schumpeter proposed that innovation is a combination of factors of production. He believes that "innovation" is not a technical concept, but an economic concept. Innovation is to introduce a "new combination" of production factors and production conditions that has never been introduced into a production system to achieve a "new combination" of factors of production or conditions of production, and the aim of this "new combination" is to obtain a potential profit, i.e. maximizing excess profits. One of them is to produce a new product.

With the mention of product innovation, Apple and Steve Jobs have become a legend, and Apple's family products, such as the IPhone, IPad, IPod, IT Unes, have not only changed the ecology of the mobile phone industry, but also affected many industries such as music. It is a popular trend to learn from jobs, to copy his style of dressing and to explain the product.

On behalf of enterprises: product innovation is almost all the choice of enterprises, the difference is to get a bit of the essence. and product innovation to drive transformation, is Changhong, Skyworth and other manufacturing enterprises desire.

[Case study] Changhong: Leader is the largest product manager

January 2014, Changhong launched China's first triple-net Fusion Intelligent TV CH IQ TV, a long time not to appear chairman Zhao put on the jeans debut, explaining the product. Changhong hopes to use the jobs style to convey the attitude of the company to the Internet transformation.

Changhong is a very tangled enterprise in the home appliance industry. Although each stage seems to be strategically correct, the results are often not satisfactory. Since 2000, Changhong has experienced the locomotive-type development stage, "Three coordinate" strategic stage, but the C R T era of high inventory, high count, and the final sale of plasma projects in the tablet era, all imply the mistakes of Changhong. To 2013, Changhong proposed to intelligent transformation, and actively embrace the Internet. C H IQ TV is its proposed home internet strategy officially landing. Since then, equipped with cloud image recognition technology of the CH IQ refrigerator, with human state-aware technology of the C-H IQ air conditioner has been unveiled. Changhong began with a relatively bright product, opened the road of transformation. To this end, from product design to manufacturing, from marketing tools to brand remodeling, as well as organizational structure adjustment to the information platform to build, made a full range of changes. Changhong will be intelligent, networked and coordinated as a "new three-coordinate strategy", launch the implementation of large data, cloud platform and other core supporting projects, trying to build "terminal + Data + content + Service" new business model.

Changhong Chairman Zhao became the largest product manager of the C H IQ project and was personally involved in the project by Zhao. This is rare in the manufacturing giant state-owned enterprises, which have Zhao more focused on the company's overall strategy in the past. His approach has been similar to the LEI of the Internet companies such as millet. In fact, not only Changhong, Sony Global CEO Hirai, said in an interview with South reporters, in order to enhance the competitiveness of products, some major products, Ping Jing will be in the research and development process trial, the product into his own ideas and enthusiasm. Hisense Chairman Zhou also claimed to be the product manager of Hisense TV, the leader of the manufacturing enterprise and the product manager in a combination of roles. From the perspective of product development, Changhong also introduced the characteristics of fast iterations.

Changhong's organizational structure and research and development of production processes have also been adjusted, from the home to sweep from the snow to the internal coordination of change. For example, Changhong to develop a new product, will all the hardware developers and software developers gathered together to the most suitable person to do product managers, and then the manager to select the right person. In this mode of work, the fastest in two months to achieve a new product development, this speed is not the original home appliance industry can be achieved.

[Expert comment] The transformation of products needs to be reformed.

Home appliance Industry expert Liu Buzhong:

Changhong and Haier transformation is indeed different, Changhong transition from product transition to enterprise mechanism reform (SOE reform), is "product reform + system reform" on both legs. In fact, if Changhong alone product transformation, and do not cooperate with the enterprise system reform, Changhong transformation is not complete, but also can not guarantee product results to drive the development of enterprises. Therefore, Changhong Enterprise system reform can be changed out of a light, Changhong, a clear management responsibility of Changhong, about changhong future sustainable development plan.

There are divergent views on the transformation of manufacturing enterprises to the Internet. The transformation of manufacturing enterprises is not to transform themselves into Internet enterprises, but to transform into a "manufacturing enterprise with Internet genes", manufacturing competitive products and adapting to the Internet environment, which is the mission of manufacturing enterprises. The root of a manufacturing enterprise is manufacturing rather than the Internet. Therefore, it is very wary of manufacturers to advertise that "I have become an Internet enterprise". Germany is admirable country, when Chinese enterprises are cheering the Internet intelligence, the German enterprise what slogan also does not shout, they are devoted to the industry 4.0 times has the highly intelligent product development and the manufacture, this is the real transformation, is the practical attitude.

In China's home appliances industry, no one enterprise than changhong need to transform, from 15 ago, "China's color TV boss" to today's Chinese household appliances sixth (according to the size of the revenue), Changhong's rapid development slowed down significantly, corporate brand strength is also weakened, this situation is certainly not changhong, investors and the local government would like to see. At present, Changhong transformation is from the enterprise system reform and enterprise development strategy at two levels. The first is the development of strategic transformation, the release of the "Home Internet Strategy" in October 2013, and the subsequent release of the C-H IQ series of Intelligent color TV, refrigerators, air-conditioning products, people have seen the ambition of the return of Changhong king. The second is the enterprise system reform, at present, is pushing forward, after the Changhong spin off plasma business, Rainbow Mobile phone business, are the product of enterprise reform. Enterprise system reform, for Changhong, even more important than product transformation. Changhong must completely solve the problem that hinders enterprise development from the system.

Path 3 Business model transformation

Management Master Drucker once pointed out that the competition between enterprises today is not the competition between products, but the competition between the business model. The business model is simply how to get profit. In the Internet age, the original stable value of transmission chain, suddenly was the third party. An interesting argument is that internet thinking is about "wool out of pigs". And for the industry to be hit, that is the two sides of the plain, and suddenly the air raid "robbery".

This is probably the deepest feeling for the retail trade. Jack Ma, Alibaba founder, said that by the 2020-year line of total merchandise retail sales will reach 50% of total social merchandise retail sales, he also and Wanda Group chairman Wang Bet, since also pulled out Gree Electric appliances Chairman Mingzhu and Millet chairman Lei gambling.

On behalf of the enterprise: from the line down the line, is the choice of all traditional chain retail enterprises. For example, Wal-Mart to buy a shop, Gome and Suning separately developed Gome online and suning easy to buy. And for the chain companies with offline stores, based on mobile internet and large data o 2O mode, so that it can play the advantages of traditional physical stores, mining a new profit model. China Youth Angel will be the Secretary-General New Wengwen entrepreneurs into "Heaven Pie" and "Land Faction", Heaven sent such as Ma Yun, the Land faction refers to a century of enterprises. The transformation of the "land Pie" business model is painful but grounded.

[Case study] Suning: one wings

This January 12, suning chairman Jindong announced in the spring of Suning, the first set up Suning Logistics group and Suning Financial Group, accelerate the two business plate industrialization development, independent operation of the ability to comprehensively enhance the competitiveness of the industry. At the same time, Su Ning put forward 2015 years "three fission" development direction, namely expands the category superiority, optimizes the user experience, the cooperation supplier three aspects accelerates the suning transformation.

Jindong the transformation of suning into three stages. "The first stage of our online suning easy to buy; the second stage we have increased offline Internet, enhanced mobile end layout and O 2O integration; The third stage is currently promoting the supply chain of Internet change, internet finance, logistics socialization and public cloud, so as to achieve a comprehensive internet. ”

Before the transformation, as a household appliance chain enterprise, the impact of suning is inevitable, the business model and the entire ecological needs to be reshaped. October 2013, Suning with 4.200 million U.S. dollars to acquire a full coverage of the Web end, PC end, mobile phone, pad end and the first to enter the Internet TV network video media ppt V, want to take this into the O T T, explore interactive video shopping, plot embedded consumption, precision customer promotion, such as video and the combination of electronic business model. Su Ning also set up a Silicon Valley research institute in the core city of Silicon Valley, in search, large data and high-performance computing Paloato.

Suning an insider so to south all reporters said, "I think suning Internet Transformation Strategy model is very clear, is ' one of the wings of the Internet road map." 2014 Suning Spring deployment will put forward "one wings" internet route. "One" is the internet retail as the main body, and "two wings" means to create an O 2O Full channel business model and the open platform under the line.

The employees also said that from organizational structure to corporate culture, the adjustment is around the strategy and objectives in the development. "We all have to call the leader X x all the time, and now we are not allowed to call X x in the internal situation." The uniform requirements of the staff before wearing a black suit tie, now as long as the dress is appropriate. In short, the change can be felt from top to bottom. ”

In the business ecology, Suning Logistics will realize socialized operation this year, Suning finance has risen to the group level Strategic business unit, will create an open and cooperative financial platform. In the management, in the face of the impact of Internet environment on traditional management, Jindong thrown a minimalist management concept, the appointment of Hounron as Suningyun chief Operating Officer (COO), responsible for marketing management headquarters and various categories of business day-to-day operations, and co-ordinate operations headquarters and chain Development Headquarters management work. At the same time, in order to promote the professional operation of various category division, Su Ning will be the division into a small and specialized business unit, to professional team to face market competition, bear the ultimate responsibility.

[Expert comment] The challenge is to change the centralization of decision

Xu CEO:

All the transformations are forced out, and the recent transformation embodies a user-centric character. The reflection varies depending on the distance from the user. The closer the distance, the faster the speed and tempo of the transition. Su Ning at present transformation large-scale platform, his competitor is Jingdong, the day cat, a number shop and so on electricity merchant, the business model also is turning to the line. The main evaluation of online service is the user experience, the service and the improvement of the experience process need to be pushed around the user. Suning transformation is destined to and Haier, Changhong and other enterprises are different, take different roads. The business model transformation needs to answer a few questions, including who the customer is, what product to deliver to the customer, how to deliver the value to the customer in the most economical way, and each adjustment revolves around that goal. After that, the consumer has become the main consumption, the value of the standard has changed markedly, then the marketing model, the response to customer needs to be adjusted. The adjustment of business model is actually the adjustment of organization and manpower. Organizational change, process optimization, business strategy thinking, the final landing for the personnel structure adjustment. The transformation needs the new personnel and the organization mode to enter, with the process, the appraisal, the allocation and so on link, can complete the transformation.

Su Ning has been preparing for many years, the overall execution ability is very strong. Suning transformation needs to let offline and online business Synergy integration. For Su Ning speaking, the advantage is the offline business before the rapid development, accumulated a large number of young talent, these people are characterized by learning ability and strong execution. When the transition to the line, Su Ning's organizational ability to change the obstacles is not particularly large, as long as a good leader can quickly advance. In the process of transformation, Suning's profit is difficult to avoid, but this is only temporary. Suning has maintained a rapid growth over the past 20 years, for Suning, the challenge is that decision-making is still more centralized, which is related to the whole culture, is the future of suning needs to do a larger adjustment of the part. Su Ning is also solving these problems, the future marketing needs more decentralization. The original decision-making mechanism of retail enterprise is from top to bottom, after multi-level can respond, this is the biggest risk of organization level.

(Responsible editor: Mengyishan)