Shulou(Shulou.com)11/24 Report--

CTOnews.com, August 20, in Lei Jun's annual speech on August 11, Xiaomi announced the progress of autopilot technology, demonstrating its autopilot technology algorithm and the ability of full scene coverage. Lei Jun also brought a new book of his own, Xiaomi Entrepreneurship thinking, which was dictated by Lei Jun and then sorted out by Xu Jieyun. It was Lei Jun's first business book published by CITIC Publishing Group Co., Ltd on August 1, 2022.

In this book, Lei Jun reveals some inside stories about Xiaomi's car building. Lei Jun said that for Xiaomi, building cars is the trend of the times, there is no choice. Lei Jun said that several objective facts must be seen: first, the mobile phone industry has entered a stage of mature stock competition; second, cars are the largest personal consumer goods, and smart cars are the biggest tuyere at present; and third, smart cars are an indispensable part of intelligent ecology, which together with personal mobile devices and home environment form a complete intelligent life scene.

Lei Jun said that building a car is also one of the most important decisions in Xiaomi's development history, and it is the result of repeated arguments and prudent decisions made by the company's management. Starting from January 15, 2021, after 75 days of 85 industry visits and exchanges, in-depth exchanges with more than 200 senior figures in the automotive industry, four internal management discussions and two formal board of directors, finally ushered in the most important decision in Xiaomi's history: to formally enter the smart electric vehicle market, it will invest US $10 billion and RMB 10 billion in the next 10 years. Lei Jun personally led the team and served as CEO of the intelligent electric vehicle business. At the same time, this will be the last major entrepreneurial project in Lei Jun's life.

Lei Jun also said that the essence of electric vehicles is already "consumer electronics" products, "software-defined cars" will be the commanding height of competition, and electric vehicles will also become "Triathlon" business model. Future revenue will be made up of hardware, software and various automotive services. If smart electric vehicles are "consumer electronic", then it is bound to follow the law of the consumer electronics industry. When the industry enters a mature period after 1520, the top five brands in the world will hold more than 80% of the share. In other words, it only makes sense to eventually enter the top 5 of the global industry and ship more than 10 million units a year. This will be an extremely cruel competition.

As for the fundamental test basis for strategic decision-making, Lei Jun said that the words of a rice noodle named Wu Xiangyu played a key role in promoting his final decision. "if you dare to make it, I will buy it," he said. " Because of this, Lei Jun decided not to think too much and stop worrying about building a good car for rice noodles. "Xiaomi has tens of millions of loyal fans and users in China, and as long as 1% of them are willing to give us a chance, Xiaomi cars can get a fantastic start."

Lei Jun also said that after repeated discussions, summed up three big pits for big companies to do new business: cognitive dislocation, habitual thinking, idol burden. How to avoid these three big pits? Need to make bold assumptions and careful verification when doing strategy deductions; at the same time, always adhere to the entrepreneurial team mentality, put an end to all blind optimism and arrogance, maintain vigilance, humility, and even maintain the fear of survival.

Specific to Xiaomi's automotive business, Lei Jun said to the team, "first of all, we are a newcomer just on the road, why should the first product be completely and thoroughly subverted?" Can we first ensure that we make a good car, a good car that can compete with all the current products of the same class, and then consider the subversive part on the basis of ensuring this goal? Second, we need to figure out who we build cars for. Can we start with the group that we are most familiar with and have the most market capacity, taking into account the pace of the group's overall business? "

CTOnews.com learned that Xiaomi Group yesterday reported results for the second quarter ended June 30, 2022. According to the financial report, Xiaomi Group spent 611 million yuan on innovative business such as smart electric vehicles this quarter. In the field of self-driving, an elite R & D team of more than 500 people has been set up, and the technical layout strategy of full-stack self-research algorithm has been formulated; the first phase of R & D-related investment in the field of self-driving is 3.3 billion yuan.

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