In the past ten years, I have actually paid special attention to changes in technology, changes in the environment, and uncertainty. What are the challenges to the organization? How should we understand these changes? When the new crown epidemic came, the changes were even more dramatic. Under the sudden change, those companies that can cope with changes actually have their own resilience and the ability to coexist with the environment. Therefore, I want to share these thoughts and some of the situations that must be faced to discuss how to find ways to reconstruct organizational value.
Recognition of corporate environment
The change of the corporate environment has been a topic we have repeatedly discussed in the past ten years. Today, we have a deeper feeling about this topic. I was reading a book by Ian Stewart recently, and he wrote in his concluding remarks: “Science is transforming from villages to global communities. What can we learn from the integration of mathematics and biology? If so, If it does, it must be unity is strength.”
I quote this sentence to tell you, what are the intrinsic characteristics of the changes in the corporate environment today? Faced with today’s new environment, a basic situation faced by enterprises, in a particularly simple way, is to transcend the industry.
In the previous development environment, we are very clear about what kind of industry we are in, what the characteristics of this industry, and what the industry logic is. But the changes encountered today are that the boundaries of many industries are blurred, and it is not clear where the changes and possibilities of the industry and our boundaries are.
In traditional logic, use a flat piece of paper to walk from one point to another. This distance is the line segment between the two points, which is the limit on the plane. But if you enter the three-dimensional space, by folding this piece of paper, the distance between the two points can be zero. Once outside the limits of the plane, people will suddenly be enlightened and no longer restricted.
There are many changes in the environment that companies face today, and our environment is beyond the industry. Under such a background, in fact, it is back to the value of digitalization itself. Why are we discussing the issue of transcending the industry today? It is because digital technology itself has realized a series of “linkage effects” based on hardware, data, and algorithms. This makes the paper folded, as I just introduced, the distance between the two points is actually 0, and the entire ecological space is completely changed.
The “linkage effect” is mainly manifested in three aspects:
One is the connection of scenes.
When we integrate into digital technology, the scenes of many industries have changed. For example, medical examinations used to go to the physical examination center, and then returned to the physical examination center after the report was obtained, and the doctor was asked to interpret the report. But today, after the integration of digital technology, all offline medical examination reports, report diagnosis, diagnosis and treatment medication recommendations, this series of environments are actually seamless, and the complete closed loop solves the value that traditional physical examinations cannot complete.
In the linkage effect, a very interesting change brought about by the connection of the scene is that it redefines the relationship between upstream and downstream and creates space for new value propositions.
The second is data penetration.
The sharing and use of shared data connects different industries and industries, and brings a very peculiar effect. For example, a lot of taxi driving data. After superimposing these data, you will not only have a clear understanding of the city’s traffic conditions, but also generate a lot of new industrial value mining, whether it is navigation products or retail products. You can see a series of cross-industry values generated by the connection of data in the decision-making of opening a store and traveling. The data penetration of the linkage effect, through the sharing and application of the underlying data, has caused some seemingly unrelated industries to resonate.
Third, the exchange of values.
Through the integration of user relationships and digital assets in different scenarios, a value system with a huge magnetic field can be created under controllable costs. Whether it is the membership system discussed by Amazon, or the changes in business and business scenarios that can be felt in daily life, it can make us more sticky because of the exchange of values, and it can also be because of the integration of some data assets and users. The improvement of the relationship has produced a lot of new services and new value space.
The impact of digitization itself on the industry and the linkage effect produced, that is, the new business scenario we are discussing, has at least three aspects, which makes the value system have a very large possibility of innovation, and many practices today have already well reflected This part.
Co-existence: the basic way of survival in the digital age
In a sense, the linkage effect is a basic way of survival that must be chosen in the digital age, and we define it as synergetic symbiosis.
What we want to feel today is actually the power of unity. Digital technology makes it easier to form this unity. Whether it is the space for value creation of the three linkage effects just introduced, or a lot of corporate practices, they all prove that synergy is a basic way of survival.
To understand this basic way of survival and return to the changes in the entire business scene brought about by digital technology, we have to accept the four most basic realities:
Reality 1: The organization is in an infinite connection, which is not only deeply affected by the environment, but also affects the environment. Discussing organizational vitality, in fact, the concern is whether he can exchange with the external environment, whether he can interact, so that he can have vitality.
The prerequisite for an enterprise to continue is: full openness, and full exchange of energy, material, and information with the outside world. This basic reality has been felt very clearly today. This is the first situation to be understood in the organization and management.
Reality 2: Everyone is in a turbulent and changing environment, and no one has enough understanding of what is happening and what will happen. For example, in the 2020 new crown epidemic, we still cannot fully understand what is going to happen. The bigger problem comes from the category of relations emphasized by Kant, “Anything that needs to be known must have an effect on other things.” Our understanding of many things must be that what you want to know has an effect on other things.
Today we understand more clearly that none of us exist independently, and must be interrelated. In the course of dynamic evolution and evolution, strategies and how companies execute them actually pose unprecedented challenges. This is precisely the second reality facing today.
Reality 3: The business environment of an enterprise is no longer a linear relationship. All understandings are subject to uncertainty and change, and the economic paradigm we are familiar with has also shifted from economies of scale to economies of scope. In a sense, the linear growth we are accustomed to, the relatively stable industrial environment, and the familiar linear relationship need to be adjusted today, and we must also face changes and transcendence.
A basic topic that almost all companies want to discuss today is to move towards a relatively open, interactive and interconnected collaborative model. Today’s fast-growing companies with very high growth potential and commercial products and solutions that create a better life for people in today’s business activities must no longer be a paradigm of economies of scale, it must be an open and collaborative paradigm . This is the third reality encountered today.
Reality 4: The author of “Anti-fragility” wrote a sentence: “When you seek order, what you get is only superficial order; but when you embrace randomness, you can grasp order and control the situation.” It is the reality that we have to face today. In a sense, you hope to gain your own stability in stability, but this is actually just superficial stability. When you really have the ability to dynamically adapt to changes in the environment, and even respond to changes efficiently , But you can control the situation.
The above four are the basic realities facing today. Going back to another perspective, what does change mean? The most important concept in the entire development process of corporate management thinking is: Can you find new management methods in response to changes in reality? I call it a review of the development of management thoughts.
Every change in reality will actually bring about a change in management thinking:
The emergence of scientific management at first originated from the problem of how to obtain greater labor efficiency in reality. To obtain greater labor efficiency, there must be a scientific division of labor to achieve the overall efficiency of the assembly line;
When labor efficiency is higher, we will find that people are hurt and people are turned into machines. At this time, the reality is how to solve the value of people themselves, not just machines on the assembly line. At this time, people-oriented management appears Management methods, the organization is seen as a social system;
When organizational efficiency and human efficiency reach a certain level, the reality that companies face is how to understand the relationship between external resources and how to win in external competition. At this time, the management thinking is strategy and competitive strategy, and the way to obtain the advantage of competitive strategy is whether the company has core competitiveness;
For a good learning organization, the organization must be able to learn and purify like a brain.
At this stage, facing the four basic realities, not only is the relationship between the environment and change, but also the organization, society and natural system must become an interconnected whole. Symbiotic organization is a relatively matched management idea at this stage.
Xiaomi’s “bamboo forest ecology” symbiosis effect
Two Cases of Value Reconstruction of Enterprise Organization
In today’s changing business scenarios, the restructuring and operation of organizational value is very helpful to the enterprise. Below I use some examples to illustrate:
Case 1: The symbiosis effect of Xiaomi’s “bamboo forest ecology”
It took less than 9 years for Xiaomi to complete the growth that made everyone feel very surprised. Why can Xiaomi do it? The reason is that it uses a symbiosis effect called “bamboo forest ecology”.
The symbiosis effect of “bamboo forest ecology”, the most important thing is that it can form a huge customer value cluster through the customer value generated by mobile phone-based business. On this cluster, all the common solutions for mobile phone users can be formed. Produce a symbiotic project. The benefits of this symbiosis allow it to move from the mobile phone itself to smart hardware, and finally to the lifestyle, which is exactly what the customer needs.
Lei Jun has a passage in the preface of the “Military Ecological Chain Battlefield Notes”. He said, “We use the’industry + financial two-wheel drive method to prevent Xiaomi from becoming a large company. If we develop 77 departments to produce different products, It will be exhausting, and efficiency will be low. We turn entrepreneurs into bosses. Xiaomi is a fleet, and every company in the ecological chain is operating efficiently.”
This sentence can help us understand why Xiaomi can have such a strong growth, why Xiaomi can solve the interaction between its products and the value of customers, and why the bamboo forest ecology can produce symbiotic benefits.
Case 2: The value structure of corporate WeChat synergistic symbiosis
In the process of investigating corporate WeChat and in-depth research, we will find that corporate WeChat is a synergistic value reconstruction. The above picture may seem more complicated, but if you carefully understand the entire enterprise WeChat, you can break through the data between people and services, so that all his customers can share these technical frameworks, establish a trust system, and complete the data Sharing, at this time you can actually understand what is called the value reconstruction of co-existence. Ma Huateng said that “connectivity is the fourth force that produces more far-reaching effects on enterprises and society”, and I also think this statement is very appropriate.
Under the environment of sudden changes in business, the reconstruction of corporate value must return to synergy. If you really want to understand, what kind of model is it? I believe that we still need each of us to create.
I end my sharing with a quote from Peter Drucker: “The only thing we know about the future is that it will be different. Trying to predict the future is like trying to be nervous on a country road without lights at night. Staring into the rearview mirror and driving, the best way to predict the future is to create it.”
I also look forward to each of us creating our own future.