There have been two ideas about the transformation of the traditional enterprise Internet, one is plus + Internet , and the other is called Internet + . So what is the difference between + Internet and Internet +? Here I quote Zhou Hongyi, the founder, chairman and CEO of 360, about their understanding.
"+ Internet" refers to the Internet as a technique, such as using the Internet to open a store to sell things, advertise, and use cloud servers. These practices are called + Internet. The essence does not change the nature of the industry and products. It just uses the Internet to make the original Operations have become more efficient, which is the simplest way to transform the Internet in traditional industries. According to Zhou Hongyi's understanding, including the content of Industry 4.0 that is currently being discussed in our country, the narrow understanding is only to make factories more automated, connect them with the Internet, share them to the cloud, and strengthen the relationship with customers. Its essence is still "+ The "Internet" will not produce explosive exponential changes.
"Internet +" refers to the Internet as a way to use the philosophy and thinking of the Internet to guide the product, or to guide the traditional industry to change the experience, change the way users view the product, change the connection method, and change the business model, resulting in the reallocation of resources. , Produces the effect of chemical or nuclear reactions.
I very much agree with Zhou Hongzheng's understanding of Internet Taoism. Many people can't distinguish between "spell" and "Tao". The real Tao is to use Internet thinking to guide you how to make products and build business models. The form of the Internet is not important. It is important to understand the core of the Internet.
The transformation of traditional corporate Internet should first be “Internet” and then “Internet +”
Traditional enterprises and Internet companies have different strategic thinking due to their different operation methods. At the center of the value chain of traditional enterprises today is around "profits." Years of operation can not break through this concept. If the Internet is forced to be used as a "way" to transform traditional enterprises, it is necessary to abandon the "profit" center. Thoroughly perform Internet + surgery on all links in the value chain including product research and development, production, sales, service, and supply chain. This is undoubtedly difficult to achieve, and it cannot meet the actual needs of traditional enterprise Internet transformation. This traditional transformation of people is basically difficult to succeed. Even if the founders embrace the Internet thinking and make every effort to transform the company, it will be difficult to succeed and even put the company into a loss.
Then the traditional enterprise's Internet transformation can take a compromise. That is, the transformation of + Internet first. Traditional companies can use the Internet as a tool to prioritize the transformation of certain links in the value chain. We can disassemble and analyze the different links of the traditional enterprise's value chain, and then we can find a certain link that prioritizes the Internet transformation. For example, the current enterprise has successively entered the era of meager profits. There is a well-known saying that it is very difficult for an enterprise to increase the profit of 1% in the sales link, and it is very easy to reduce the cost of 1% in the purchase. Then for this kind of enterprise that can no longer sell links to increase profits, it is entirely possible to consider starting from the supply chain to transform the Internet. By operating modern computer technologies such as big data and cloud computing, members of the supply chain can achieve a win-win situation through the integration of resources and competitive advantages of both parties. In the process of Internet transformation in traditional enterprises, supply chain management is actually very suitable for Internet transformation due to low costs and large output benefits. At present, many traditional companies in the country have carried out Internet transformation of the supply chain, such as Mengniu Shares, Correction Pharmaceuticals, Dongge Ajiao, etc. Of course, this is only part of the case. There are also some companies that have transformed the Internet from the product side, such as Huawei's terminal transformation.
Therefore, traditional enterprises can fully implement Internet + in one link of the value chain, and then gradually carry out Internet + in other links of the enterprise value chain. In this way, we will take the road of qualitative change caused by quantitative changes, realize the overall Internet transformation, and finally realize Internet +. This approach can reduce the huge change resistance and irreparable loss of economic benefits of traditional enterprises during the Internet transformation process.
The traditional enterprise's Internet transformation road is long and needs to be based on actual needs.