Lee : the next decade the traditional industry will be industry + Internet subversion

                      (Magnetic cloud technology founder, chairman and CEO, Jingdong Group Lifetime honor technical adviser Lee DaXue)

* Speaker: Lee DaXue, founder, Chairman and CEO of Magnetic Cloud Technology, Lifetime Honorary Technical Advisor of Jingdong Group

* This article is based on November 25, 2016, "2016 China's Internet transformation of the annual ceremony," Lee University keynote finishing, without the speaker review.

* Disclaimer: This document may not be modified or modified by the speaker without the authorization of the speaker.

        This article is the founder of magnetic cloud technology, chairman and CEO, Jingdong Lifetime honorary technical adviser Lee DaXue in the "2016 China Internet Transformation Annual Festival" on the speech Record; November 24 -26, sponsored by the transition home " 2016 China Internet + transformation of the annual festival "in China's first tower held in Guangzhou Tower, the convergence of the industry elite to share front-line viewpoints and strategic dry goods, to explore enterprises in the Internet environment transformation and upgrading of effective channel, is committed to driving China's commercial fast to intelligent, Internationalization of the creative economy.                           (Magnetic cloud technology founder, chairman and CEO, Jingdong Group Lifetime honor technical adviser Lee DaXue)

        After coming out from Jingdong, I try a new direction, and today we do a report.

        Internet development for 20 years, now there is a saying that the Internet has entered the second half. The next 10 years, 2015 to 2025, wher the Internet will go, I think the industry + the Internet is our main opportunity. I started last year, many industries, especially those billion, trillion industry will come out of the new BAT.

     The first opportunity is that China's industrial revolution for less than 100 years, the entire industry are small, scattered, chaotic such characteristics. We should have the opportunity through industry consolidation + Internet means to produce the industry's leading enterprises, the industry's Internet platform.

      The second opportunity is the industry's low level of digitization. We can SaaS services, or even free software to enhance the level of the entire industry's information technology.

      The third opportunity is that we account for each industry is very long, small and medium enterprises financing difficult, expensive financing. Through financial innovation can solve the problem of industrial distribution industry, to solve the problem of the industry's account. Industry + Internet focus is to solve these three problems.
       Traditional corporate Internet transformation, we also want to fly like an Internet company in the sky, if the traditional business is running on the ground, then we need two engines:        The first is the innovation engine. Traditional enterprises often take root in the industry for a long time, 20 years, 30 years or more, often lack of vitality, how to re-create innovative engine, latitude in the product, latitude in the process of innovation, especially in the latitude can not innovate.
       The second engine is the big data engine. Many traditional enterprises because there is no digital, so it has no data, or he used a lot of software. I have visited a clothing business, learned that there are more than 20 kinds of software within their enterprise, each software is an information island, so the big data can not play a role. But there are some companies have a lot of data, but do not know how to develop value-added services based on large data.
       We believe that each industry to increase the Internet, you can analyze from three latitudes.


     The first latitude is that we add capital and resources;

      The second latitude is to do the mode of innovation;

      The third latitude is to have technology and talent. Internet technology and talent is scarce, we have to find a good way for these people with our traditional Internet companies can work together

       From last year I will talk about a methodology, our industry + Internet can use a model that is B2B + O2O + industry integration.

      B2B first B has two meanings, the first meaning we want to share the supply chain, the second meaning to do the integration of the industrial chain.

      B2B second B is the industrial transformation, the traditional enterprise software is a lot of waterfall development, there is no Internet gene, it is not an integrated software, it is the beginning from the internal, from improving the efficiency of reducing the cost point of view , Rather than to open source, so we found that the company is to promote the development of external forces rather than external, so we hope that the future of the software is to the outside.

      O2O, the first O is to get through online and offline. online there are a variety of platforms, the line under the terminal network, the network has great value, so we believe that the Internet it is a Skynet, we also have a network, the network is the terminal network.

      The second is to dig out the user's lifetime value. Many companies do a hammer trading, I sell things to you over, but the Internet company to attract a customer will stick him later, will tap the value of the user lifetime, so how the traditional enterprises have such a O2O Capacity, I think is the key, of course, the basis of B2B + O2O, we will be able to information flow, logistics, capital flow get through, there is a large data, large data to form a closed loop, we can develop industrial financial logic.

      Therefore, the nature of industrial finance can be shared capital chain, shared pool of funds, sharing large data, but also share the wind control technology.

       We found that the Internet company has become a model-driven, and our traditional business process is still talking about innovation, stress management innovation, we feel that our future business model should be based on capacity, I think our business should have the most capacity of four A:

     The first is the user power, that is, the ability to tap the value of life-long user, the user can attract to your platform, and the ability to retain users.

     The second capacity is the data force, that is, I have just talked about the big data, we can accumulate data, through the accumulation of digital data, and I can get through with other platforms to get large data, and through large data products can do the innovation, Service innovation, and even enhance the internal efficiency and reduce costs.

     The third ability is to create power, the future of the enterprise is not bigger and bigger, but how do it small, like Ali, like Jingdong most worried about the problem is more and more enterprises, more and more inefficient, Haier Do well is the internal organization of innovation.

     The fourth capacity because we achieve the innovation, how we build a shared platform, if there is no platform, these become a stragglers, it becomes a repeat of innovation, there is no value. Last year, double-play, we also see the end result is a low level of duplication, a large number of failures, so we want to create a shared platform, and ultimately support these creators, support to the enterprise + Internet.

      The first is the sharing of talent, I hope that people with the traditional Internet companies to share the talent together, these talents to the incubation project in vitro will Yuezhanyueyong.

      The second is to share the technology, magnetic cloud has hatching more than 30 projects, which more than 30 projects which realize the technology platform for sharing, with the 30 projects we can abstract a lot of modules out of the back To the new project which we do not have to start a new project from scratch, the new project in 3 months will be able to on-line, 6 months will be able to run out of data, the traditional enterprise + the Internet, many times is the question of confidence, If 6 months to publish, or a year later see the release, our CEO, our chairman on the drum, and do not support the internal incubator or new platform building, which is the second shared.

      The third is the sharing of large data, I think we are now the biggest problem is that all walks of life data is unreasonable, we can not cooperate if the data barrier, so the efficiency of the industry is very low, our transaction costs are high, how each industry The establishment of data standards, how to open up the data, how to share the big data, this is all of you here, especially our CIO, our technical experts to study the subject.

      The fourth is to share the financial, we hope to establish a shared financial platform, in this platform to achieve what I just talked about the B2B + O2O + industrial financial logic. Each of our industry platform is not the future through the transaction price difference or trading commission to make money, we found that the BAT model, in particular, Ali flow through the realization of the model in the industry platform is not established, the industry platform eventually return to become a financial platform, it will be a Industrial Bank, leveraging the development of funds through the industry.

      The fifth is the shared mode. At present, the project of magnetic cloud technology incubation has been valued at over 10 billion, which is because we have established an ecological system, this methodology is also particularly suitable for traditional enterprises to do when the internal incubator. I think some large enterprises in the internal creation of the time to create a shared platform, each enterprise can go to the platform-based enterprises to go.

        Industry + Internet key consideration 6 key elements:

       1 vision

       2 engines, a large data engine and an engine of innovation.

       3 streams: information flow, logistics, capital flow. Of course, information technology through information technology, but also to the depth of information technology through the traditional industry-driven transformation and upgrading, of course, in the logistics, capital flows to achieve open up, or can not provide financial support for financial innovation.

        A new project to be successful, I think we should seize the five elements:

       The first is to create value

       The second must be done on the model of innovation

       The third to seize the essence of business, do not be scared of the Internet, the Internet is no mystery, the key is combined with the industry, no matter what we do end up going back to the nature of business up.

       The fourth is the establishment of closed-loop transactions, since last year there are many projects closed down, and they match the platform value is very small, is essentially a platform for information, and our industry platform is difficult to achieve through the information to make money through the flow , I think this trade closed loop is very important.

       The fifth is a serious vertical, in many industries may not expect to use BAT simple way to get through, in fact we do when the Internet industry may have to do more complicated, because our industry chain is very long, we open up any link Not easy, so do severe vertical.
       This is what I do a map, we do a new project, we want it to form a tornado, the tornado first to find the eye, with the eye after the project, and then on this basis to quickly put the industry model Give it a copy of the sample can be copied, with the sample can be copied after the first-mover advantage.
      I think the future of the enterprise must be turned into a social enterprise, you have me, I have you, so the future of the enterprise must contribute some API out, can be data API, can be service API, these API Will form a cloud, the formation of an ecosystem, you will consume other people's API, we will give others a good API, so as to become an API world. I think these APIs are likely to reconstruct our commercial civilization.

       This is when I do this year's Spring Festival 10 prophecy, many people out of the Internet to subvert our traditional industries, I find it very difficult, and now proved really very difficult, and industry + the Internet may be our path. We also found that BAT's methodology is not suited to our industry + the Internet, and now the industry + the Internet is still in a very early stage, all of you have the opportunity. In addition, we found that traditional software will also be subverted, these software just as I have talked about, it is from the inside out, not suitable for enterprise innovation, is not suitable for creating a shared platform, is not suitable for the creation of innovative organizations , So we believe that these software vendors will be transformed, and into a platform-based enterprises.

       Thank you all!