What Do You Want To Add "Internet +"?

For these entrepreneurs, O2O is "

"It can be recognized by the national strategic level and is a milestone in the development of the industry.

At the same time, the traditional enterprises in the difficult pition have become more anxious. Last year's "Internet thinking" has not yet understood that the savages of the Internet are moving towards each other.

Osmosis, this year again appeared "Internet +", what should add "what", how "add" do not know again.

The biggest value of "Internet +" is connected.

With regard to the concept of "Internet +", Ma Huateng's understanding of the "Internet +" strategy is to make use of the platform of the Internet and make use of information and communication technology to integrate all sectors of the industry, including the Internet and traditional industries, to create a new ecosystem in the new field.

According to this understanding, "Internet +" is a very broad term. Any way that integrates the Internet with traditional industries can be regarded as "Internet +".

The O2O mentioned above is only a branch of the concept of "Internet +". This new business revolution based on the Internet as the underlying structure may surpass any previous industrial revolution in the imagination of human society.

For traditional enterprises, we should thank this Internet era.

Veterans believe that the biggest value of "Internet +" is "connection", which brings businesses and users to the same level, and businesses and users no longer need to communicate across dimensions.

Especially the arrival of the mobile Internet era in 2014, it is the original 8 hours on the PC seamless connection to 24 hours a day.

This connection is unbounded. In theory, your customers can be anywhere in the world if you want to.

In addition, the Internet has given enterprises and consumers more efficient and low-cost connections. It has evaded the loss and inefficient use of space as a link in traditional commercial society.

"Three minus one plus" of "Internet +"

For traditional enterprises, veterans believe that the so-called "Internet +" should not do addition, but subtraction.

Here I put forward the concept of "three minus one plus".

Three reduction refers to reducing products, reducing marketing channels and reducing people. One plus refers to additional services. Here I take the case of retail industry to illustrate.

The reason for choosing Gome is not only because it represents a new mode of pformation from traditional retail to electric business, that is, the "store business" mode of store network integration.

Also because it is recognized as a successful retail giant at present, its online mall, Gome online, became the B2C of China in 2014.

A group of black horses, ranked tenth from the top five into the top five after Tmall, Jingdong, Suning, vip.com after the big business platform.

Product reduction: production line

Let's talk about reducing products first.

One of the biggest pain points of traditional enterprises in the Internet age is that products can not be sold. Why? The fundamental reason is that the product development is not enough enough to cause users to scream.

Why are there not enough products? There are many reasons for this, including the lack of an important position in the Internet company, that is, the role of product manager for users. Products are often assumed by engineers behind closed doors, and how such products can be welcomed by users.

Another important reason is too much product line and lack of focus.

If it is placed in the traditional channels of competition barriers and barriers, the impact may not be great. But when you are faced with enemies coming from all sides of the Internet, the lack of focus on core products may become your biggest weakness, which is why millet began to focus only on making a mobile phone product.

On the point of "reducing products", many traditional enterprises make mistakes in the Internet. They believe that competitors are too strong, often do not feel confident or dare to come up with their most advantageous products to promote. Instead, they are trying to find new ways to redevelop products that are differentiated but not competitive.

The important factor of Gome's success is to reduce products, though it is a development of the whole category, but not all of them are pro and pro, but focus on the 3C category that is most good at the most advantageous appliances. Others cooperate with other leading enterprises through open platform, and launch special products such as gold cars, clothing department stores, artworks, Gome, bills and financial management.

The strategic direction is from the development momentum and earnings data.

"Reducing channels": cutting down inefficient channels

Let's talk about "reducing channels".

The reduction channel mentioned here is to focus on channels and cut down inefficient channels.

Traditional commercial competition is more dependent on the advantages of space resources in the channel area, such as business super stores and stores. The construction of these channels will take a long time and the efficiency is low.

The coverage and touch rate of users such as exhibitions, newspapers, magazines, televisions and so on are relatively low.

In the Internet age, because the new time dimension has been added, the interaction scenes between enterprises and users have been widened.

Today, the 70% of Internet traffic is in the hands of BAT three giants. Generally speaking, online channels are more focused and focused, focusing on several main channels. It is very necessary to cut down those channels that occupy a lot of resources and time costs and labor costs.

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Traditional enterprises blindly Internet, regardless of their suitability for "bringing doctrine", pushing their own information on the Internet is obviously not the most desirable.

Smart traditional enterprises should find their own way to integrate with the Internet.

"Reducing people": organizational structure distortion, stimulating innovation

Next, let's talk about "reducing people".

To reduce people is not to lay off staff, but to create a new organization structure suitable for the Internet.

When your e-commerce team needs a marketing fee to cover N chapters and go through N processes for ten and a half months to get the money, when your sales team is complaining about how low Internet users are, when you sell distributors across the country and collectively resist Internet users, when you want to improve a product specifically for Internet users, you find that the existing product line is powerless to adjust, your business needs a revolution of itself.

No matter how good your product is, the inefficiency is fatal in the Internet age, because every minute is likely to run a new enemy from behind.

In the age of Internet, the traditional business process design which seems to be highly efficient has become extremely inefficient. The channel resources that originally seemed to be the biggest advantage have become the stumbling block that binds you to change.

Ship is difficult to turn around. In the face of the uncertain Internet age, enterprises need to build a ship that can attack quickly, and they must survive independently of the mother and do not rely on the original channels and business systems. Only when they are separated from the mother, their resistance is minimal.

The reason why Gome online can run so fast today is very important. On the one hand, it is an independent legal entity which does not depend on the channel under Gome, and has the greatest freedom of development and management strategy.

On the other hand, the online business team has widely promoted the corporate culture of "fast action, collaborative innovation, everyone is CEO" to adapt to the needs of the Internet. It uses small micro organization and honeycomb effect to communicate across departments, instead of reporting longitudinally, making all decisions and processes as short as possible.

Control the core number of participants in each project, and give the project leader a great degree of authority to mobilize all the resources within the company. He also has strict incentive mechanism for him to be efficient and quick.

"Plus services": a consumer oriented solution

Finally, we talk about "plus services".

Traditional enterprises tend to go through two stages when they move towards the Internet.

The first stage is channelization, winning the market through price.

The second stage is service oriented. The business competition brought by the Internet is more and more pparent. Consumers' decision-making power is becoming stronger and stronger. The future commercial society must be a consumer led business society. This is actually the C2B we often understand.

Providing consumers with personalization or a whole set of solutions is not just a product, but this is the main direction of this mode.

Services will also become the main battleground for traditional enterprises to compete on the Internet platform.

How to add services to Gome online? We should know that the main points of 3C products are logistics distribution, installation and after sales service.

The speed of logistics experience has been one of the biggest advantages of Jingdong. Gome online has also launched a strategy to focus on Jingdong in terms of logistics and distribution.

To sum up, "Internet +" is not a new word, whether you add it or not, the Internet is there, the traditional enterprise only embrace, can experience the huge changes it brings to the enterprise.