What is the difference between traditional enterprise and electric business enterprise and Internet enterprise?

The traditional enterprise and the electric Business enterprise, the Internet enterprise, in the end what is different place, I may be more from my feeling, and the Beijing East configuration comes up to talk about.

On the three sections of Internet electric power business

Let's look at the growth rate of jingdong, you will find that the Jing Dong curve is very beautiful, it is always on the go, why? Because the electric business industry is now a blue sea, is a fast growing industry. For example, from the retail, the platform inside the water squeeze off, the Beijing-East 2013 turnover of about 125.5 billion. This data is not to say how good Jing dong, but this tuyere is better, 2010 and 2011 is a very important inflection point.

We looked at another data, that is, the "active user number" in Jingdong, we up to the first quarter of 2014 active users are 47.4 million. Now Jingdong has been with Tencent Double Jian wall, the process, the biggest advantage is that we use it to move the end of the data, we are now its first class entrance, and its game entrance is tied, is the entrance to the shopping. Now the "618" data is not yet counted, but the diversion is very large. Micro-letters 270 million of people on the top of the day, it is possible that 5%-10% of them come in.

The electrical business has a key point, does not look at the investment return, sees is the flow, the number of returns, you 10 million, means that you this product can stabilize to a year to two years. If your users are millions of or 100,000, the opponents will come up soon and they will flush you out.

My understanding of the Internet electricity quotient is three paragraph theory, the first paragraph is to try to let the user count to tens. On the Internet, what is the core of a bomb or a low price? is to ask the user to come up. I would rather lose, I also want to my users rushed up, once rushed up, I immediately belong to the threshold of tens.

The second paragraph is to stick to your users, let him become active powder, iron powder, irregular to your site to patronize, buy something. The third paragraph began to talk about charges, called edge product charges, you can not take the mainstream product charges, your mainstream products a charge, people ran. So Jingdong strategy is very clear, do not expect Jingdong Mall to make money, of course, the volume to so many times, in fact, we have a lot of other play to make money.

The company's positioning of the financial business is the financial business to the future contribution of Beijing East 50%-70% net profit. In fact, it is very good to imagine, if it is electric, jingdong every sell a thing is to rely on the car, everything to your head is a large number of costs there. But if you use the program to make money, like QQ members, you have prepared the program, without these costs, do not need to maintain, a year to the company to make 1 billion. So why is internet finance so powerful that it is a light asset and its net profit will be higher.

Jingdong will be the most main force is two lines, a line is through the pop platform, micro-shop to the whole category of the way to cover, this is actually Taobao, cat mode. There is a proprietary system, PK is Wal-Mart, Carrefour, Gome, suning these retail enterprises.

I sum up, jingdong growth process, there is a most critical ability to quickly meet the different stages of the user's strong demand for service capabilities. Do not know if you have no such experience, the beginning of the business you know very well, but as the size of the enterprise gradually grow, you find that you are more and more distant from customers, I see a lot of enterprises in this point there are problems. Jingdong has always stressed the depth of the user's understanding of their needs through the analysis, and constantly fast to meet, for example, now we put forward night delivery, speed Tatsu, from the point, from the Ark, such as a series of services, these make the rapid growth of Beijing-east.

Jing Dong, this pain point.

Now the internet said the pain point, Scream Point, Burst point, Jing Dong is actually caught. For example, 3C products have several major pain points, the first temporarily out of the door, the second fake too much, the third price is high, Jingdong can shop in the home, and then a genuine licensed, there is a very powerful, is the formal invoice.

Jing Dong began to do electricity business is to make money, by 2007, 2008, a pull venture began to lose money, because the beginning of a large number of investment logistics, warehouse these infrastructure, are huge investment, continuous loss for several years, it is particularly painful process, but is to be able to grow quickly behind. By the year 2013, Jingdong's goal was to make a little profit and start making a few bucks in 2014. Behind this is actually a lot of capital costs inside.

Now most consumers are called brain residue consumers, brain residue is now a neutral word, not a derogatory word. The characteristics of the brain residual users is not to talk to me about big professional things, the best you give me something is very easy to operate, so this is the original intention of shopping one-stop shop. We are from the level of consumers to analyze, the way we began to expand the category, began to enter the book, began to go to big home appliances, began to involve all aspects. In fact, there is a big trend behind this, and Jingdong only in a number of key points on the right.

Recently, we are also studying a thing, that is, Ali, Baidu, Tencent-led consumer internet outside the system, called the Industrial Internet, its volume and scale is larger. If China can do this, I believe it will be quicker and faster for China to overtake other powers, and now the Government is aware of such problems.

Why does foreign investment not fight in China?

When we do research, we find that from the global electric business model, people are not the strongest demand for goods in time, but in China this demand is very strong, which is why Amazon in China is not old. In China's internet industry, foreign companies are annihilated, as Chinese firms know more about Chinese users.

For example, a Distributor to the user to call, ask each other at home, heard not at home, said that I sent you to the 16 floor. Why he sent to the 16 floor, because the user's mother home in the 16 floor, it can be seen that he knows the user very well, temporary out of the time to ask if there is rubbish, have to help out the rubbish. Our distribution staff, the normal in Beijing can get about 6000 dollars, catch up with 618 and double 11, 10,000 yuan above the problem is not big, they work very hard, what kind of bad weather to send.

There is also a distributor, we asked him to talk with the company's white-collar and senior executives about the process of customer service, how in 8 months, so that a customer from the registered user into a diamond user, a year at least (consumption) 50,000, how he did it? He said that the customer under the first single, is to buy a mouse, found that this single not enough 39 yuan, need to add freight, on the client back. That the world is heavy rain, I a door, he said to return, I agree to return, the user looked at the rain so big, said don't go, shelter, they began to chat, chat well.

After a few months and orders, the distribution staff became very cordial, said brother your goods came. After a period of time, the user sent him a message that I want to buy a computer, you now what brand of computer (gift) sent more, the distribution staff into consultants, sales staff.

So you will find that his relationship with the user is not a simple delivery and receipt, but has been very close, jingdong distribution has become a business card and brand, the entire service is particularly good. Because the BoE as a whole, on the one hand their remuneration can be, in the industry is high-end, even than Shun Fengdu is not bad, there is a key point, is that old Liu special attention to them.

Old Liu has a characteristic, very ruthless to management, but for the grass-roots staff special care, last year there was an executive training, the evening meal when old Liu to 50 vice president level of people bowed, he said I bow on the one hand to thank everyone, but more importantly for these front-line staff to bow to everyone, because the company does not good, You senior executives can find a better job than they do now because you are very capable, but these distributors and warehouse managers can't find a better job than Jingdong. From this matter, you can see old Liu blood inside has very strong grass-roots spirit.

Management philosophy behind the "table-making"

I will focus on management philosophy, also said that Lao Liu's own creation of the "Liu Triangle." We found that users of E-commerce care about three points, the product is not authentic licensed, the price is not low, service is not fast and good. And at present, the price is still a major factor, so absolutely can not expect Jingdong Mall to make money.

At the end of last year, Liu asked CMO (chief marketing officer) whether the goal this year was not to profit, estimate how much money, CMO said about 500 million, old Liu a Pat table, earn so much money to do, hurry to do activities, you earn so much money, consumers feel lost, a disadvantage will not come. So you are large enough to a certain extent, the size of the time, it is very simple to make money.

Later on, I found that Lao Liu is a person living in the future, your team can not understand the future, but you can't think about the future, the next 35 years, the company to make a look like, you should be very clear picture. As Steve Jobs did to kill Nokia so fast, I understand that jobs would have taken five years to get the product today and compete with today's products. Back to Jingdong itself, how to do, Lao Liu did not know, but he can use that standard to measure the right before, so said Liu is a special feeling for the future people.

At that time, I looked at the side of these 50-odd executives, a face without expression in that sitting, the middle of the rest, I asked them to rely on unreliable, they said no problem, how do we do not know, but certainly will think of ways. This is also the secret of a company's growth, that is, the boss said, the bottom people believe. To sum up, one is the boss of the future has no feeling, the second is that he said that people believe it or not.

One more thing. At that time, a senior executive at the finance Department attended the report, and a few months ago Liu asked us to make a 10-minute loan financial product, Lao Liu said that so many users in Jingdong, there are real consumption records, real telephone, residential address, we should create a service, do not need to provide identity cards, do not need to sign, do not need to fill complex forms, You just fill in the amount you need, and you'll get your money back in 10 minutes.

Later, the financial executive said, we have technically achieved it, but because of the bank's approval, the consumer feels less than 10 minutes to get it. Lao Liu stood up as soon as he patted the table, he said that the Internet is going to solve such a thing, I do not understand the banking business I only proposed 10-minute loan, you find cooperation with the bank to cooperate.

Lao Liu thinks the future should be this way, consumers want this kind of service, we should provide this kind of service, how to do it, it is your business. So Lao Liu is a strong spokesperson of the user, and with the force mechanism, forcing executives to think. I believe that with the increasing openness of finance, there will be better and newer ways of internet finance.

"Three only" to build the value of Jing Dong

Beijing east to April 1 employees have more than 50,000 people, how to manage? Last year when we call full participation, the value of refining out, Lao Liu for full explanation, and then organize senior executives to speak, four months time covering the company nearly 50,000 people. The core point is called "Customer first", around the core values, we subdivided four, one called Integrity, a call team, as well as innovation and passion. These four, is also through many employees of Jingdong refined out, Jing Dong people should be like this.

So the concept of talent, how to let people in different industries can become Jingdong people, we mentioned three aspects, the first call the election, emphasis on heavy virtue, because we are here a few of the sales staff may be a few billion, a billion of of the business in his hands, that how to ensure that they are very good faith, and in front of the interests can withstand the temptation , Jing-dong set up a compliance department to check, and there is a period of time, the company particularly like fresh students, is a piece of white paper to come in a little better, if the other company washed, come after very rare.

For the prevention of corruption, old Liu always has some special ways, for example, once confirmed this person greedy money, and did not return the money to the company, direct Leadership undertakes 80%, indirect leadership undertakes 20%, he said I must pass such rules, lets everybody know, you below employee greed is not the company's money, but your money. If there are two such things in a year, the manager automatically cuts down one level. Let the manager to supervise, below these people have any fishy, you can judge the judgment.

We now want to set up a website, as long as you have a corruption record, the site will be published. Even if left Jingdong I also hung on top, according to Old Liu's argument, you want to remove the name above, you have to put the money back to 10 times times, you have to feel unfair, the lawsuit, Jingdong prepared enough money to go to court with you, with these heavy punishment let everyone know not to hand, this is a mechanism and rules.

There is also called Yucai, how to train and enter the company, so that new staff to understand the electrical business, to understand Jingdong, according to the business, we will have such training and training. The third is called excitation, is the incentive, we look forward to jingdong employees in this industry is the most type, there is a kind of young people's vitality, Jingdong to provide you with the display of their big stage.

Ma Chenggung (Ma Chenggung, senior director of Beijing-East University, an excerpt from a series of lectures on "Transforming traditional enterprises with internet thinking" in Zheng and DAO)