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Internet Thinking for the Construction of a Century-Old Enterprise
ReleaseDate: 2017-07-12


 In the "12345 methodology" (Methodology) put forward by Chairman Wang Junjin, "Internet thinking" is an important component of the "five thinkings". Especially in the present stage, how to make use of the Internet to integrate the resources and enlarge the benefits for the traditional business is a crucial task. This paper will interpret the "Internet thinking" of JuneYao by starting from its definition. - Zhang Weihua, Vice President of JuneYao Group

1. What is Internet thinking?

Entrepreneurs have their own views on Internet thinking. Robin Li believed, "Perhaps what you're engaged in is not related to the Internet, but your way of thinking should gradually be tailored towards Internet thinking". Zhou Hongyi summed up the four characteristics of Internet thinking: user first, experience-oriented, free business model, and subversive innovation. In conclusion, the Internet thinking suitable for JuneYao Group is defined to comprise of the following 9 core elements:

First, user thinking. In all aspects of the value chain, we should consider the problems in a user-centric way. As a traditional enterprise, we have never given up the user-centric concept in our development process. Second, simple thinking. Dedication is the key, less is more and simplicity is beauty. Traditional enterprises used to always want to do something really big and comprehensive. But the design of Apple mobile phones embodies simple thinking. Third, perfection thinking. We shall bring products, services and user experience to perfection, exceeding the user expectations. For example, Japanese and German companies focus on making products to perfection. Fourth, iterative thinking. We shall start from little things and micro-innovation, and pay attention to customer demand changes to achieve rapid iteration. In today's rapidly-changing era, it is impossible to release a complete version at one time and not to improve it. Products need to be updated continuously. So iterative thinking has given a new meaning to the internet. Fifth, flow thinking. Free services are offered to charge fees in a better way. We shall survive until the critical point of qualitative change so as to gain business opportunities and value. Only after attracting the users and gaining popularity can our service continue. Sixth, social thinking. We shall carry out word-of-mouth marketing through social media, establish partnerships and learn widely from others' strong points. Seventh, big data thinking. Big data is the assets of enterprises, and the key factor for enterprises to participate in market competition. At the end of last year, JuneYao Group built a big data platform with the hope of integrating the Group's business divisions for a resonant effect and cross-marketing. At present, the big data platform has been connected to companies such as Juneyao Airlines and Windfind Technology. Next, the Group will focus on integrating the data of different business divisions. Eighth, platform thinking. We shall create a business ecosystem and platform-based organizations under the concept of openness, win-win and sharing and make use of social forces to strengthen the resonant effect. Ninth, cross-border thinking. We shall bravely introduce cross-border innovations using our user and data resources.

There are some other definitions of Internet thinking such as NO.1 (The winner takes it all) thinking, pain point thinking and screaming point thinking, which interpret Internet thinking from other perspectives.

2. Enterprise transformation and Internet thinking

Fosun Group thought about a question a few years ago: "will Fosun Group become an Internet company in 3-5 years' time?" In fact, Internet-based transformation of traditional enterprises has become an inevitable trend and the main factors driving this trend are the following six development difficulties faced by traditional enterprises at the current stage. First, economies of scale hinder rather than promote the development of enterprises. Second, the adjustment of the competition pattern has been accelerated and free competition has become mainstream. Third, the business model has been rebuilt, and the Internet is changing the value network and industrial structure formed in the Internet era. Fourth, the boundaries between production and marketing have been crossed and production and sales have gradually shifted from offline to online. Fifth, business models face fast iteration. The speed of the Internet era itself is driving constant innovation of enterprise strategy. Sixth, the cost advantage is gone. Newcomers with Internet thinking can achieve cost reduction through continuous innovation.

The future business model will have three major features: user-centric, data-driven, and eco-collaborative, which coincides with the Internet thinking. User-centric means user thinking emphasized by Internet thinking. Data-driven means group companies with rich data resources shall focus on collecting and effectively using data. Eco-collaborative means that in addition to ecological integration with the external industrial chain, group companies shall also create an internal synergistic effect and improve operational efficiency. Therefore, the focus of enterprise transformation should be an Internet-based marketing model, product model, management model and business model. As the historical background, market environment and difficulties that enterprises face can't be changed, the Internet-based transformation of enterprises is imperative.

In the Internet era, the requirements for management methods, resource allocation and institutional mechanisms, including people's ideas and thinking are different from those for traditional business. And this changes the DNA of traditional enterprises and requires management and operation reconstruction. The core of Internet thinking-based enterprise management is customer orientation, under which are five elements for enterprise management. First, from the organizational perspective, flattening and decentralization of enterprises is necessary and inter-departmental resource and information sharing is needed for faster collaboration. We shall implement enterprise transformation and allow Internet thinking to play a role in organizational construction. Second, in terms of operations, enterprises shall rapidly launch and continuously update new products, and make full use of big data to achieve intelligent operations. In particular, the IT Department shall focus on operations and strengthen cooperation with other departments. Third, in terms of decision-making, enterprises shall shorten the decision-making process, quickly adapt to market changes and create an authorization mechanism to appropriately decentralize resources. In addition, enterprises shall achieve quick dissemination of decisions and allow needs formed at lower levels to be solved at lower levels so as to respond to rapid changes in the market.

Fourth, in terms of human resources, enterprises shall implement market-based resource allocation and incentive mechanisms (team and individual), give full play to the characteristics of private mechanisms, combine team and individual motivation, and appropriately promote and demote talents to achieve rapid adjustment. Fifth, from the cultural perspective, enterprises shall focus on dedication, perfection, reputation and speed. These five aspects are indispensable to Internet thinking-based management during enterprise transformation.

3. Thoughts on Internet-based transformation of JuneYao Group

As a modern group enterprise, JuneYao Group shall not only focus on vertical development of technological innovation, but shall horizontally connect aviation, finance, intelligent education and modern consumption to achieve mutual coordination and internal Internet-based management of the entire enterprise.

At the end of 2016, the Group's Information Technology Department released the strategic Plan Outline for Information Technology 2020, which thought about the work we need to carry out and the goals we need to meet in the technological innovation division.

In the future, the Group's information technology industry will focus on the latest technical trends such as the Internet, the Internet of things and big data, the reform of corresponding application methods and business models, and the construction of a basic platform for the Group's Internet innovation. Enterprises in the aviation division can collect and analyze user behavior data on this platform to enhance their ability of user identification, group analysis and member's continuous consumption. Enterprises in the consumption division can integrate data of each system to further improve their passenger flow analysis ability. Enterprises in the financial division can realize the innovation of cross-marketing through modeling and analysis. Schools in the education division can develop personalized learning courses and programs, etc. The technological innovation division shall cooperate with other divisions in studying and promoting the application of new technologies and new models and boosting internal business innovation, technological innovation and management innovation of all business divisions so as to lay a solid foundation for JuneYao Group to realize the vision of "A Future City and A Better Life".  

In the Internet era, the society is changing and enterprises need transformation. I believe under the guidance of the Methodology, we'll give full play to Internet thinking in our actual work, and make greater contributions to realizing JuneYao Group's Internet dream of building a century-old enterprise!