Technology creates value

　　For entrepreneurs, future entrepreneurship requires insight into the pattern of the market. Nowadays, China’s innovation is already in a different pattern. The global new crown epidemic in 2020 has accelerated what might have happened 30 or 40 years later, and the following four core trends have been shortened.
　　First, the social foundation of digitization. A modern economy can no longer imagine working and communicating on a social basis without digitization.
　　Second, to open up new frontiers in life sciences. At the same time, life sciences themselves are also developing rapidly.
　　Third, sustainable energy. The development of human history has entered a stage, and energy has no way to continue according to the original structure. From the overall industrial situation, the largest industry in the next ten years is likely to be the industry brought about by sustainable energy.
　　Fourth, the global center is shifting to Asia, not only the economic center, but the science center and innovation center are also shifting to Asia.
　　These four major trends have been drawn very closely. China’s economic development in the past 40 years can basically be said to be driven by “China + open market”.
　　In the next few decades, China’s development theme is undoubtedly “China + technology”. There are two main driving factors: first, China must build its own core technology ecology; second, science itself is developing at a rapid pace and entering new technologies. The paradigm of development is inseparable from entrepreneurship and innovation.
　　From the perspective of market, economy, and development, this is the largest market opportunity in history. At the same time, the macro market of economic development is very important, including basic elements such as demand, supply, and circulation. Furthermore, consumption upgrades. China’s consumer demand is on the rise, and brands are overflowing.
　　The population structure has challenges and opportunities. At the same time, China’s economic development is stepwise. For innovation, China’s stepwiseness is a great advantage. China’s innovation overflows outside North America, especially Southeast Asia, Europe, and Africa. , Latin America, etc. are easy. At the same time, there are new infrastructure and the “14th Five-Year Plan” and the “double cycle” market in the market environment.
　　After you understand the market, you must do something that conforms to the attributes of the times, and that is technology-driven.
Technology Driven Era

　　Technology is always linked to demand, technology-driven, demand-driven, and at the same time accelerated by the market, are the core characteristics of this era.
　　If it is technology promotion, it is inseparable from industry, university and research. In an economy that is not driven by technology, universities, scientific research institutions and mainstream companies are not strongly connected. Universities belong to universities and enterprises belong to enterprises. But if it is driven by technology, their connection is very tight, and the core is a closed loop. Starting from the government, it uses policy investment to support universities and research institutions for infrastructure construction, and then an early entrepreneurial innovation ecosystem emerges, allowing these startups to pursue technological commercialization opportunities everywhere and from zero to one.
　　In this closed loop, innovation and entrepreneurship is a very special point. Any commercial opportunity is driven by people, and some mainstream enterprises will be born from it. They will generate greater social value, commercial value, and generate more taxation. It is a big closed loop to give the central government and all levels of government support for scientific research. In this closed loop, the relationship between industry, university and research needs to be closely connected, especially research universities and entrepreneurial ecology.
　　However, the path from technology to commercial value is longer and more complex. The key is to insight, see the future direction, and use actions to seize opportunities. Based on these, we need to judge “how technology creates value”.
Technology creates value

　　The essence of value is the ability to meet human needs, specifically, “the ability to continue to meet the needs of users and customers through the market now and in the future.”
　　Many people are talking about value investing, or creating a valuable company, so what is the nature of value? There are several key points here: First, there is a difference between users and customers in the market. They may not be the same person. The customer pays, and the user is a user, and he may not pay; Second, the value itself is The ability to meet the needs of users and customers is essentially a kind of ability; third, it is the ability to meet demand “now and in the future”, and it must have continuity; fourth, it must be realized through the market. This is the essence of value, and everything we do revolves around human needs.
　　The development of any technology is always linked to human needs, but one misunderstanding we have observed is that many people use technology for the sake of technology instead of using technology to meet human needs. Generally speaking, companies face two needs: C-end and B-end:
　　As far as the C-end is concerned, the user’s needs are never satisfied. There is a simple theory-Maslow’s hierarchy of needs theory. Based on this, we can use a system to analyze the needs of those who respond to which technology-driven innovation opportunities will be brought. For example, simply looking at the population, duration, and stage, the population can be divided into the elderly, children, professionals, students, etc., and then we can draw a table to see how each type of people is allocated 24 hours a day, and understand their Where is the demand.
　　As far as the needs of the B-side are concerned, they always need to reduce costs, increase output, and always need to manage production, sales, customers, employees, supply chain, capital, etc.; at the same time, the needs of big B are very different from those of small B. History I haven’t seen a company that can serve both big B and small B well.
　　To be a good start-up company, to truly create a lot of value, it must adhere to long-termism. Because the market environment is always changing, but the constant is “whether human needs are met”. To be a good start-up company, we must continue to pay attention to “whether I am meeting the future needs of more and more people” for a long time, and be a company of increasing value.

　　The beginning of digitization is to obtain information, express information, store information, transmit information, process information, and finally deliver information according to the needs of a certain type of people. This is the core of digitization.

　　In addition, the key to value creation by technology is to use long-termism to grasp the relationship between value creation and market prices.
　　Price and value are two things: the price of a company is the evaluation of value in a certain market environment, such as the transaction price in the primary market and the secondary market; and the value of the company is the ability to meet demand, now and in the future. The ability of the market to continuously meet the needs of users and customers.
　　Enterprises need to grasp the relationship between value and price, because without financing, it cannot be sustained without being a commercial exchange company in the market. Valuable things must be able to continuously meet the needs of people. If they are to continue, whether in the primary or secondary markets, they must be transformed between value and price.
Digital core

　　Nowadays, the core driving historical development is digitization. What is digitization, I think digitization has its stable structure. The core of digitization always has six components, none of which are indispensable, but it always revolves around the needs of people, and digitization is humanized to a certain extent. The beginning of digitization is to obtain information, express information, store information, transmit information, process information, and finally deliver information in response to a certain human need. This is the core of digitization.

　　Looking to the outside, acquiring information means acquiring data. Data is the expression form of information. With information, we have to meet human needs. We need a model to know what tasks should be used to meet human needs. We take it It’s called an algorithm. After you have an algorithm, you have to calculate, and you need to calculate power.
　　Scientific development has entered the data-driven era, and it is inseparable from the integration with commercialization. A large amount of data can only be obtained through a large number of commercial activities. For entrepreneurs, especially technology-driven and ambitious entrepreneurs, it is necessary to pay attention to the opportunities brought by the evolution of the scientific development system. Today’s scientific frontiers are gradually being driven by some Internet companies and a new generation of research startups. For example, it is not Stanford, MIT and other universities that lead information science, but a series of Google, Microsoft, Amazon, Ali, Tencent, and byte. Internet companies.

The essence of value is the ability to meet human needs, specifically, “the ability to continue to meet the needs of users and customers through the market now and in the future.”

　　What is the structure of digitization? Digitization is always driven by platforms. On average, there is a new computing platform every 12 years or so. This has always been the case in history. The structure of this platform includes the foreground and the background. The foreground is the interactive capability, and the background is the computing scale. Its development trend and driving force are the width and depth of digital coverage.
　　Why a research-based startup company can lead the front? Because in this era, as long as there is top technology, ability, and ambition, they have the opportunity to obtain a lot of capital and run at the forefront.
the core element

　　For early-stage entrepreneurs, there are five core points:
　　First, determine what to do. It is very important to figure out exactly what the company is going to do. This is a process that requires constant thinking and constant iteration.
　　Second, clarify the value that the company can create. Good entrepreneurs must have a path plan, such as how to become a unicorn within five years.
　　Third, grasp the vent. The first element of entrepreneurial success is the timing of entering the market. Doing the right thing at the right time is more important than anything else. In addition, we need to find potential energy, and for the market, we can only follow the trend. Good entrepreneurs must choose to enter the market after seeing the momentum.
　　Fourth, build barriers. I think any good business must have barriers. Sometimes, you may be the first one by luck, but what should the company do when everyone rushes in? At this time, entrepreneurs need to think about how to form barriers? Barriers include network effects, ecological effects, scale effects, special resources, patents, and so on. Good entrepreneurs must think very clearly about how to make others unable to copy the advantages of their own business.
　　Fifth, establish a competent team organization. Entrepreneurs must understand why they can do this well. The key here is to improve their cognitive speed and open their minds. Many teams have a rapid improvement in cognition, but they cannot open their minds. If their minds are narrow, powerful people will not come in. People with broad minds can bring in people who are stronger than themselves to continuously improve the ability of team iteration and stimulate the team’s ability. .