Shulou(Shulou.com)06/03 Report--

After half a year, I think there has been a lot of discussion on CCTV, and all kinds of views have been fully absorbed by the CEO, CDO and CIO of enterprises. I would like to reopen this topic and talk about several recent viewpoints in combination with this sentence from half a year ago, so as to interpret several aspects of "CCTV" that I understand:

01 what is the underlying business logic behind the construction of "China Taiwan"?

Understand that without network synergy, economies of scale alone cannot form a monopoly.

"the concept of Zhongtai was put forward by Ali. from the perspective of business requirements, Zhong Hua made it very clear in his book" Zhongtai Architecture ", but I think this requirement is already an" explicit "requirement. It is a decision made in the case that the strategic direction has been established, and it is further planned and implemented by the technical architecture team! So what is Alibaba's strategy during this period? What is the business insight behind the strategy? Perhaps this will enable us to take a more top-level view of "Zhongtai", and the most appropriate insight into this content is the book "Intelligent Business" published in November 2018, written by Professor Zeng Ming, Chief of staff of Alibaba. Its opening point of view is: the continuous development of network technology and artificial intelligence has brought new possibilities to business and human society as a whole.

Network collaboration and data intelligence become part of the double helix of intelligent commerce. Network collaboration promotes the development of data intelligence, which in turn drives the expansion of network collaboration. The two cycles promote the continuous evolution of human commercial civilization in the direction of intelligence.

I think this sentence actually points directly to the "Zhongtai" system (I don't call it the system, let alone its software for a reason, which is specifically explained later)-- "build an intelligent business system with a double helix of network collaboration and data intelligence!" .

There are three innovative directions of intelligent business: "online, networked and intelligent".

1 online:

Our era is the era of the Internet, the most important point is whether it is connected to the Internet, whether it is online, if so, the advantages of the Internet can be used by you, otherwise the world is getting farther and farther away from you, this is the most important first step. Transform the physical world into a virtual world on the Internet.

Why is Microsoft on the list for 20 years? In 1996, when Bill Gates was faced with a challenge, he made up his mind to push the IE browser, which won the war, occupied the most important infrastructure browser in the PC Internet era, and then spawned Microsoft's search service. If Alibaba buys hao123 (PC-end Internet navigation), there will be a stable source of traffic, and our search will have a base for sustainable development, because without this acquisition and without a source of traffic, the war of search cannot be fought.

Microsoft has a place in search because it occupies the most important infrastructure of the PC era-browsers.

Apple was able to become the most valuable company in the world because it ushered in the era of the mobile Internet, in which iPhone laid down hardware standards and App Store determined the access to applications and services in the era of the mobile Internet. Based on its ecological concept, Apple integrates a range of smart services. Apple is an enterprise that integrates hardware, software, services and ecology in the mobile Internet era, which is the most important foundation of its success in the past decade, helping the whole society to complete the mobile Internet.

2 Intelligent:

Where is Google's success? The most important thing is to promote the whole process of business intelligence. Search is the first intelligent service for large-scale business applications. Anyone typing a keyword into the search box can make the world's knowledge serve you and quickly get the information you want in seconds. Only intelligent business can make such a breakthrough.

The second core smart service product is recommendation. Amazon is the earliest company in recommendation, and it is also an important basis for its retail efficiency to achieve a great breakthrough in marketing. Another important breakthrough is to make the whole logistics process online, which brings a great improvement in logistics efficiency.

(3) networking:

Tencent and Facebook are both enterprises that have gone farthest in social networking. Alibaba, especially Taobao, has made a closely integrated and mutually reinforcing ecology in terms of network collaboration and intelligence. The most successful Internet enterprises have made major breakthroughs in networking and intelligence on the basis of online, which is a very simple and effective tool for analysis and thinking.

Under the guidance of this business logic, enterprises will think: how to achieve their own "online, intelligent, networked" process? Under this underlying business logic, there is the story of the "China Taiwan system": from 2009 to 2011, Alibaba's senior management team debated for three years, and everyone was unable to form a unified judgment on the end of the future industry: whether the future is B2C, or C2C like Taobao, or a search engine pointing to countless small B2C. For this strategic proposition, Ali's internal executives "fight" every day, the internal allocation of resources is very difficult, how to solve this problem?

Finally, Jack Ma made up his mind and said, "Let's not argue. Let's try it on the market and see what the future trend is." The real feelings you get during swimming represent the future. "Yitao", which represents search engine shopping, was merged back after doing. Taobao C2C and Tmall's B2C grew instead, and in the process of development and growth, a very powerful business produced "Alimama". It contributes 70% of Ali's cash flow, and this business is a typical "shared service". All business units want to get Alimama's traffic. Must use "Zhongtai", this is the platform value behind "shared service".

If there is no clearer commercial value orientation of Zhongtai service, why do you want to be CCTV? What's the point of spending money and not getting something good to do?

With the underlying logic of business, let's talk about why it is necessary to build a "China-Taiwan system." Because "production" is the ultimate carrier of data intelligence and business scenarios! Artificial intelligence is only a tool for human beings. The core feature of smart business is to be able to actively understand users and constantly improve user experience through learning. What really connects users, data and algorithms creatively is the "product", which is the fundamental reason why the Internet era places special emphasis on the importance of products.

The complementary role of products, data and algorithms can be vividly compared to "end + cloud". " The "end" is the product, and it is the port to complete personalized, real-time, massive, and low-cost interaction with users. It not only directly completes the user experience, but also enables the closed loop of data recording and user feedback to occur and interact with the "cloud". The "cloud" is the platform for data aggregation and algorithm computing, which optimizes the algorithm, better speculates the needs of users, and improves the user experience.

Product design can directly affect the user experience: whether the function of the product is complete, whether the interface is friendly and whether the exchange is natural or not are the key factors for the success of the product.

Upload: feedback the behavior data of the "end" to the "cloud": the product is a channel for users to feed back the behavior data to the data intelligence on the "cloud" to achieve data value-added and algorithm optimization.

Issue: transfer the "cloud" data intelligence to the "end": the product is the channel to transfer the data intelligence on the "cloud" to the user and bring value to the user.

02 the prerequisites for the landing of the China-Taiwan system include "strategic insight" and "business design"

The two words "scale" and "frequency" in the China-Taiwan strategy are the key to life!

Why did I say "Zhongtai is poisonous" at the beginning? I think it is mainly based on the perspectives of "scale" and "frequency". The relationship between products and data and algorithms has been clearly explained before, so we must further look at whether we want to do the basic thinking logic of the Zhongtai system from the strategic level of the enterprise:

Is the scale of the enterprise large enough?

In fact, the scale here is not entirely measured by the business amount of an enterprise, but more often by the calculation methods that favor Internet enterprises, such as the number of active users (MAU) and transaction amount (GMV). For enterprises that want to carry out transactions on the ToC side, these are the key elements to form network synergy. After all, there are sufficient transaction amounts in order to pry more resources for online collaboration. And the transaction amount is often in two ways, one is the extremely high customer unit price, for example, the transaction in the real estate market is always millions or thousands of thousands of sets, the amount is high but the frequency is low. Another way is to expand MAU. For example, Xiaomi gathered tens of millions of enthusiasts through Xiaomi community in its infancy, and was able to receive enough online pre-order orders before the product was put into production, which is the energy of active users.

Therefore, it is necessary to consider whether the enterprise has enough strategic motivation to make MAU or GMV bigger, and the requirement is to "increase the number of online active users MAU". Why is this emphasized? For example, real estate enterprises used to be able to complete 300 billion or 500 billion transactions every year, but they extremely rely on the ability of offline direct sales teams and offline channel partners to achieve performance, but they do not have the ability to achieve marketing closed loops for their own direct users. This is also the embodiment of the lack of marketing power of the enterprise.

If the company's CEO decides to strengthen its "marketing force", then it is necessary to realize the problem of connecting online and offline channels. At this time, it may involve the needs of enterprise-level "customer-in-Taiwan" construction, which is precisely the demand put forward by model enterprises, while start-ups think more about how to "survive", so from the perspective of the construction of "mid-Taiwan system". It is good medicine for elephants and poison for ants. This is what I mean when I say Zhongtai is poisonous.

In addition, the "frequency" of contact and transaction between an enterprise and its users is a very important proposition.

The higher the frequency of trading with users, the more suitable it is to carry out the operation of "intelligent business" mode in an online, intelligent and (social) networked way. For example, in the retail industry, service industry, and e-commerce industry, there will be a large number of scenes with high-frequency contact with users, and there will naturally be a strategic demand for "intelligent commerce". If there is not an agile and rapid response middle platform system. It is impossible to face the realization of all kinds of front-end channels and all kinds of digital marketing innovation scenes. in a sense, the retail industry, service industry and e-commerce industry can win from the fierce business war. fight user access ability, play online marketing ability, fight supply chain ability, play financing-capital ability, omni-directional war is also indispensable.

But if you change the scene, do you need a digital console system for land transactions (G2B, government-to-business model)? It seems that there are not many innovative scenarios. What if it's a real estate developer? The annual turnover of 300 billion may come to an end when 20, 000 apartments are sold. At this time, the C-end of the user is also affected by various policies such as purchase restrictions and loans, so it seems that the transaction frequency is also very low, so what should we do? In fact, we also see that many enterprises have made innovations in this field:

An enterprise sells houses at a 30% discount on National Day in 2019, and all registers APP to complete sales, because the main projects are all in fourth-and fifth-tier cities, so the impact of limited purchase and loan restrictions is small, the number of registered users on APP is enough, and the design of national marketing (resale) is enough. A National Day spent XXB billion on online promotion costs, but also directly harvested the results of nearly half a year, which is actually aimed at specific markets. The most vivid case of making the low-frequency business online.

There is another 100 billion enterprise whose market capitalization has reached 50 billion after the recent listing of the property business, while the revenue of the development business in the past 19 years is 25 million +, but the market capitalization is only 150 billion. In essence, the business in the property field has a typical "high frequency" scenario. Just the user's entry and exit, property services & payment, repair and maintenance all have high frequency scenarios, and at the same time, they also have "lifetime service value". The lifecycle of user service is long enough, the viscosity of user is high enough (closed environment), and the trading scenario of user is high enough. How many offline scenarios are worth looking forward to?

Therefore, the field of property services is very necessary to do agile operation of the "user center", but where do these users come from? In fact, the earliest is in the developer this area from marketing, sales, at this time, "customer in Taiwan" also called people want to come out, there are certain volume and scale to achieve low-frequency to high-frequency operation of enterprises, large-scale development of the channel offline online diversified enterprises, hope to focus on the steady-state main business to do related diversified business, all have a rigid demand in the "middle Taiwan system" construction!

(3) the premise of Zhongtai's landing includes "the new organizational design concept from management to empowerment".

The content related to strategy was mentioned earlier, and good strategies are often supported by organizational change, and it can even be said that if there is no adequate support for organizational change, it is very difficult to fall behind the "China-Taiwan strategy." naturally, a strong "China-Taiwan system" cannot be grown. Because the traditional management mechanism of the company its management can not promote creativity. Creativity is the most important factor of production in the future, and the only way to promote creativity is empowerment. This is also the core value and capability of the future "China-Taiwan department" (often concentrated at the group level of the enterprise).

But how can the group department be empowered? The group finance department said that I have strong financing ability and can provide financial support for subordinate business units, which is called empowerment. The HR department of the group said that I have a strong external human resources + organizational capacity building system + HR shared services to the front end, which also means empowering. However, in the past, customer service departments (or marketing management departments) were unable to aggregate customer resources, and naturally could not achieve the work of aggregating and diverting customer resources from various business sectors. so in the past, the marketing management department can only be "management" and can not achieve "enabling", but in the digital marketing era, when all customer resources and access can be online, front-end enabling really happens! In order to achieve this goal, it is necessary to redefine the responsibilities of the marketing management department and rebuild & grow the capabilities needed in the digital marketing era. This is what I said earlier: sufficient organizational change and capacity building is the guarantee and support for the landing of CCTV!

4 the key capabilities of Zhongtai's landing include "ecological cloud computing technology architecture capability"

What is architecture? In essence, it is to use the lowest cost (TOC, total cost of ownership) to build a technology platform to meet a series of technical indicators. We sum up the ability of "three high and one open", which mainly refers to high performance, high availability, high stability and openness! Today's article does not talk about technology. I have skipped the content of the specific architecture. If I want to start talking, I have to write another 5000 words.

The yardstick to measure the capability of technology architecture is actually the volume of business that the developed platform can carry, so Amazon built AWS, Alibaba built Aliyun, in essence, the enterprise's past architecture capabilities were exported through "cloud computing", while Huawei quickly built cloud computing capabilities through the ability to provide various IDC services for operators, which are also the capabilities of the IaaS platform. In addition to the powerful infrastructure such as IaaS, Zhongtai also needs the ability to build models based on business domain (Bussines Domain). This layer is called Application PaaS. To build an APaaS platform, you need to have a full understanding of the scenarios of a certain business domain in order to build a flexible, but not too complex, "Zhongtai".

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