Under the new big changes, where do individuals go?

There is a lot to do in the digital age.

Under the new big changes, where do individuals go?

Content source: June 25, 2021, the China-EU Business Online Innovation Learning Conference organized by China-Europe Business.

Sharing guest: Zhu Wuxiang, Professor of Finance Department, School of Economics and Management, Tsinghua University, Director of Tsinghua Economic Management Business Model Innovation Research Center.

1. The new era of major changes and its impact on the industry

As early as May 12, 1872, Li almost a sense of European countries have asked the Chinese through the case’s, wrote in a memorial to the Emperor Tongzhi’s:

The ministers only steal from the European countries. Over the past 100 years, from India to South Seas, from South Seas to China, they broke into the border hinterland, where the history has not been recorded, the ancient times have not been passed, and all the customs have been exchanged. Our emperor is like the sky. , General and contracted trade, in a cage, nine thousand miles away from the east and west Nanshuo of the earth, gathered in China, this big change has not been seen in three thousand years. “

1. Big changes

Now we are in a new era of major changes, which are reflected in the four aspects of the new domestic and international political and economic pattern, new technology, new demand structure, and new infrastructure. Among them, new technology is the most prominent. appears in:

① Comprehensive breakthrough in industry technology

Including new materials, recognition technology (fingerprint recognition, face recognition, retina recognition), energy saving and environmental protection, new energy technology (hydrogen energy, flexible thin film power generation, energy storage), precision medicine, biotechnology, drones, robots, etc.

② The explosion of data intelligence technology

The Internet, mobile communications, the Internet of Things, cloud computing, blockchain, artificial intelligence, 5G and other data intelligence technologies are fully applied, and social and economic activities are becoming more and more real-time, online, intelligent (automatic), visible and reliable.

2. Significant impact of new technology on industries, industries and enterprises

New major changes, especially new technologies, have had a significant impact on industries, industries, and enterprises, including reshaping ecology, reorganizing labor, reengineering processes, redesigning roles, and restructuring models. Just as Maxine invented the heavy machine gun in 1884, the infantry offensive tactics popular since the Napoleonic era were completely ineffective.

We see that the film and television market has grown, and traditional film and television production companies have declined!

People’s reading volume has skyrocketed, and traditional bookstores have declined! The amount of information dissemination has skyrocketed, and the paper media and post offices have declined!

People are more active in learning business knowledge, but most traditional business schools may be eliminated!

Because the business school teaches public theories and general and basic analysis tools, such as the five forces model and the Boston matrix. These general knowledge can be inquired on the Internet, without the need to study at a business school.

In the new era of great changes, every company and individual must think about their own role-the value of existence, and think about whether your role is being or is about to be completely or partially replaced or subverted.

At the same time, new business formats and new intermediaries will emerge. For example, business studies, corporate universities may be more attractive to students in the future . Because corporate universities can use their own practical experience to create analytical tools or models.

Especially in the digital age, digital management tools are needed. These tools are often used in organizations that provide digital consulting or companies that have successfully undergone digital transformation.

Therefore, business school and business school teachers also need to transform, upgrade, and reposition.

2. Business model

Business model definition and building blocks

Business model definitions congregation diverse, I am “China-EU Business Review” has recently together wrote an article, we focus on the definition and building blocks of the business model.

We define the business model as a business activity system and stakeholder transaction structure. Including two major contents:

① Business activity system, select which business activities to engage in from the company. Such as research and development, manufacturing, and sales.

② The transaction structure of stakeholders, that is, how to complete actions and make profits. Including transaction subject and content, transaction method, transaction revenue and expenditure, and transaction risk control.

For example, the difference between different genres of Chinese martial arts is, first of all, the different movements. Martial arts movies often have martial arts consultants to guide the design of martial arts movements.

The Chinese calligraphy and the movements are the same-starting, moving and ending the strokes, but the three movements are completed in different ways, forming Li style, regular script, and seal style. In regular script, different strokes include Liu style, Yan style, Ou style, and Zhao style. Minute.

The same business activity can be completed in different ways.

OEM mode is to outsource manufacturing activities; ODM mode is to outsource design activities. Direct mode: the enterprise invests and operates all the activities of the store, and the franchise mode is that the franchisee is responsible for the investment and operation of the store, or the third-party investment, and the franchisee is responsible for the operation.

For example, if you want to do online education, where do the products come from? The product comes from a researcher in the industry or academia. How do you attract him to trade with you?

On the one hand, they may not have time to write. You have to break down his actions, and help him complete the activities that he can’t complete. On the other hand, you can adopt a buyout method, a profit sharing model, and make him willing to continue trading with you through attractive incentives.

In reality, companies with few resources often defeat those with more resources. Why? The answer is that companies with low initial resource capabilities can aggregate external high-quality resource capabilities through a good stakeholder transaction structure design.

For example, the same franchise model, McDonald’s previous franchise model, the maximum number of franchisees does not exceed 200. The McDonald’s brothers can do 500 or even 1,000. What’s the reason?

Because other authorized parties are pursuing short-term flat and quick profits. The franchise fee is expensive, and the equipment is expensive. The franchisees invested a lot of money before they made any money at the beginning, and the authorized party did not give empowerment and did not bear the franchisee’s operating risks. As a result, 80% of the franchisees could not make money even if they worked hard.

The McDonald’s brothers have different values. They believe that franchising should allow franchisees to make money. They cut the franchise fee by half, reduced the equipment to the cost price, charged 1.9% of the franchisee’s operating income, and shared operating risks with them.

In order to reduce the operating risks of franchisees, improve operating efficiency, and give empowerment. With such a change, McDonald’s franchisees can make money as long as they work hard.

3. Digitalization and the transformation of business models and organizational management models

1. The impact of digitalization on business models

Digital has changed the business activities expanded border transactions, increasing transaction subject to change the direction of the trade and a touch of user scenarios, provides a number of data resources, and enhance the transparency of the transaction, making the transaction pricing, trading, risk control more accurate, Accurate and refined, enriched and upgraded the profit model.

For example, in the past, many product pricing used the cost-profit margin method because it was difficult to measure the user value of the product. Including how much money users earn? How much did it cost less? How much risk has been reduced? In the digital age, the value of products to users is easier to measure, and user value contribution pricing principles and models can be adopted.

An English education service company, offline and online, can cooperate with 70,000 teachers around the world. Students join the community and can interact with each other and feedback. Through student scoring feedback, teachers can be automatically selected.

2. Digitalization and the path of business model transformation

There are two paths for enterprise development:

(1) Business development, through product positioning and business model upgrades, a rich product portfolio and increased revenue.

(2) Organizational development. As the number of personnel increases, “big enterprise diseases” often appear. For example, redundant staff in the department, duplication of construction, lack of coordination, etc.

” ByteDance ” (Beijing ByteDance Technology Co., Ltd.) has a miraculous growth rate, achieving revenue growth from 0 to 100 billion yuan in 7 years. It has operations in more than 117 countries around the world and employs more than 100,000 people.

Such an ultra-large scale requires global coordination, spanning 117 countries around the world, how to reduce the disease of large enterprises, activate the organization, maintain the atmosphere of innovation, and enhance the ability of innovation?

ByteDance is an effective exploration.

First, the scale of business and information.

Design and strengthen the construction of the middle office to support more products; build an internal intelligent knowledge sharing file system, so that employees can acquire knowledge independently, reduce repeated answers by functional departments, and knowledge flow at a high speed. Realize the large-scale reuse of knowledge.

Second, improve employee self-drive and downplay ranks.

include:

Advocate the cultural values ​​of “byte beating”, increase consensus, reduce processes and detailed rules.

Implement OKR and let employees set their own action goals. OKR means to ensure that the principled direction is correct, relying on the self-driven of employees.

Self-driven people will do their work as a career, self-management.

Dilute the concept of hierarchy. The concept of hierarchy will inhibit innovation. The original organizational structure will be transformed into a large information platform and transformed into a transparent grid organization. The work conditions of people at all levels are clear at a glance.

3. Digital tools and platform resources

① Digital tools

A series of digital and management tools bring not only the flattening of the organization, but also all-round data assessment. During the epidemic, everyone started to work online. ByteDance developed a Feishu system by itself. After tens of thousands of engineers in the company used and complained, it quickly improved and iterated.

Originally to solve the problem of internal management coordination, it was later discovered that it was a product that could serve other companies’ digital online office and compete with existing similar products.

② School-enterprise cooperation

In the future, the management training content of corporate training departments or corporate universities will be more attractive to corporate managers. Because corporate training is equivalent to engineering, you can develop management tools, especially digital management tools, based on your own practical needs.

For example, when Haier implemented the “Rendanheyi” model. Developed a win-win value-added table, and the university’s business school taught a general analysis framework, such as the five forces model, SWOT analysis, and business schools need to think about how to cooperate with corporate training departments.

Fourth, digitalization and transformation of the platform model of the education and training industry

For example: Find a house with shells

During the online and offline development of Shell House Search , it was discovered that there were a series of problems such as information fragmentation and blockade between departments, low transaction efficiency, short-term employee behavior, low division of labor efficiency, small department coverage, and poor customer experience.

Division of labor improves efficiency, but in an environment that lacks trust, division of labor has a problem of prying orders. Therefore, the brokers within the company are unwilling to cooperate, and the division of labor is less efficient. Lianjia has designed a broker cooperation and commission sharing mechanism, which breaks down the transaction process of brokerage services into ten links.

A broker can complete only one link or multiple links, but does not need to complete all links. Such a mechanism encourages the division of labor and collaboration among multiple brokers and allocates commissions according to the completed links. Generally, 3-6 brokers cooperate to complete a single order.

Later, Lianjia discovered that this was a common industry problem. Therefore, Lianjia established Shell to find a house, designed a broker cooperation network, expanded its own division of labor, coordination and commission mode to the entire industry, and became a service platform for the housing brokerage industry. Brokers from different housing brokerage companies can cooperate on it. .

The benefits of the broker cooperation network are obvious. Buyers can access cross-regional listings, and sellers can recommend and contact more potential customers through brokers, improving the quality and efficiency of matching;

The comparative advantages of brokers can be used, so that the brokers who are suitable for finding housing will be responsible for finding housing, and the brokers who are suitable for sales can focus on sales, so as to improve the human efficiency of the broker;

It also changed the original zero-sum game industry rules, so that different stores, different brands, and different brokers have a real willingness to cooperate. The relationship between brokers has changed from competition to the coexistence of competition and cooperation, which increases the probability of transactions and corrects network effects.

I think the shell house search model can be used in many industries. Use the Internet, blockchain, artificial intelligence and other information and data intelligent technologies to transform industries and industrial division of labor.

Industries such as education and training, creative content, etc. can learn from the shell house-finding model. There will be more and more self-employed businesses in these industries, and there will be more and more small teams. Correspondingly, Internet collaboration platform companies are needed to improve the efficiency of resource and capacity allocation.

In the digital age, management training is promising, and there is plenty of room for innovation in the business model of management training institutions .

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/under-the-new-big-changes-where-do-individuals-go/
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