Xiaonian: I have a one to appear on the market so-called cross-checks the Internet thinking, trying to find something new, the result is 2015 Latest Nike Shoes very disappointing[IT era network, IT Times Comprehensive Recently, economist Professor Xu Xiaonian Assembly CEIBS alumnus class leadership on behalf of made a keynote speech. In this speech, he talked about some of his different views on the Internet thinking, thinking talked about the recent hot stock market, as well as institutional and technological innovation for the future of China's economy will play a role in how to boost Chinese enterprises restructuring case What is the biggest obstacle to that, how to overcome these obstacles ...... Xiaonian critical thinking on China's economy is often impressive, and this time the same way. This article is an excerpt from the speech Xiaonian, where only selected a few of his views on the popular concept of the Internet, such as 'single-product mass' and 'to the extreme', 'wool lies in the pigs' and 'platform strategy' 'Internet +' and '+ Internet,' Now, let us look at how he understood it. Public attitudes to the Internet, I see from the cold indifference to panic favor today, began to feel no great shakes, it is a new communication tool only, but later found the Internet can do so many things, the Internet impact to their own businesses and industries, and to produce a panic favor, not even through their own thinking and analysis, there has been no Internet have died emotions. I think the Internet is a tool to help traditional enterprise transformation, rather than artifact. Now we are deified in many places of the Internet, that as soon as I run into this thing, companies will be able to stay for another ten years sailing downwind. Not so simple. Now appearing on the market for many so-called Internet thinking, I went to check against the one by one, I want to find the Internet in the end some of them thinking nothing new, but very disappointed, I found D Rose IV that so-called Internet thinking, almost nothing new thing. And among the Internet thinking that some references and ideas or even wrong. 'Single-product mass' and 'to the extreme,' thinking of the Internet, we analyzed one by one, we have to think. I was teaching in Central Europe, he has always stressed independent thinking, to think about your own problem, which is the most important. Thinking there is a reference to the Internet, you must be a single product mass, this argument in itself is good, but it's too one-sided. Why the Internet to do a single product mass, because the Internet has a very strong economies of scale. What is the economies of scale? We talked about in class, a single product is actually massive economies of scale, there is nothing new. Economies of scale is determined by what? Is determined by the cost structure, the proportion of fixed costs as a percentage, the higher the economies of scale. Internet strong economies of scale, because a site once completed, the maintenance cost is very low, on this platform to add a new customer is almost zero marginal cost, so it has a very strong economies of scale. In this strong economies of scale, you really need to do massive, but this is not the only business model. If you think that in addition to the mass of a single product can not do, then you're wrong, because there is another business model called multi-product trace. As an example, I wear the clothes inside the T-shirt, this is to do a single product mass, only medium and small three numbers, enlarge the scale of every number, the lower the larger the cost, so there it a yellow dress It is a single-product mass. Different specifications, the better, the less variety batch, the lower the cost the greater bulk. I'm out of this dress is called the multi-product trace, why? I'm out of this piece of clothing is tailor made, tailor did not do a single product mass, it should close it? So many tailors are alive and well, and why ? Because of the diverse needs. After the scale-up, must sacrifice diverse needs, you want to find a balance between the diverse batch and demand. Why do I want to tailor the clothes, because my body is very strange, there is no way out of the standard suit to wear, wear up feeling very funny, custom, then one is a species, a species only one, and still make money. Who says only after massive single product is successful business model, we have invented a machine for mass production, humanity faces a choice between cost that economies of scale and diversification to make a trade-off. There Nike Air Jordan 5 Women is an idea to achieve the ultimate product, this sentence is wrong, if the product to achieve the ultimate, then it belongs to suicidal behavior. Product quality up Nike KD VI to what extent do? To achieve the balance between cost and effect, because of what? Improve the quality, the more backward the more difficult, so that remaining 1% 99% 1% 99% cheaper than the cost of higher. Marginal cost curve more to the back rising faster, the more difficult to back, last 0.01% higher than the previous all costs. You do 100% This is suicide, the cost will be out of control, how it could be extreme, and I can only achieve a balanced cost-efficiency, even I do not want to speak with me to achieve the ultimate customer, because to achieve the ultimate cost is to do to the extreme, this simply can not afford. So if we have such a reference point analysis capabilities, you can see its limitations in what place, adaptability somewhere. There is also a measure of the quality, till what point do you do quality? Do better than all your competitors a little bit on it. A little bit better can give you great benefits, but will not increase the cost too high, because costs will eventually be passed on to consumers, who passed on to your users. 'Wool lies in the pigs' and 'platform strategy' Internet thinking there is one called 'wool lies in the pigs.' This business model we have already seen, and I think this is an effective business model, but it should not be deified, do not think that only after the advent of the Internet have such a phenomenon and business models. The wool lies in the pigs, retail Wal-Mart has already done so, when Wal-Mart to sell goods, claiming commodity prices are lowest, 'if similar products whatever you find a cheaper place than I have here on the outside, I immediately bring the price down. Nike Air Jordan 5 'It is such a way to attract consumers, such a sales strategy benefited consumers, Wal-Mart where money? wool out who is who? suppliers who it this way attracting a large number of consumers, so it's a purchase order is the world's largest, all suppliers of Wal-Mart is the love-hate relationship, love is orders that no one vendor can be under such a large amount of orders, hate The Wal-Mart overbearing, a price, give me the lowest price, if you do not accept the lowest price on the question. So it is the supplier earn money, wool lies in the pigs, in this case we have a teaching, there is no need deification, there is no need non-bundled with the Internet. Very popular 'platform strategy', also called the Internet thinking. You do platform, and why? Platform asset-light, no assets, assets are provided by merchants, O2O, P2P do not you invest, do not worry, you pay a little platform on the platform would have a fee. Internet platform strategy is a big advantage, but it is Nike Lunar Hyperdunk Low not unique to the Internet, traditional industries have done internet. For example, we know of Procter \u0026 Gamble, Nestle, daily necessities, food companies are doing platform, just brand building, just quality control, himself does not actually produce these products on its platform stamp endorsement about, which is P \u0026 G product, but not produced by Procter \u0026 Gamble. You are now engaged in a two-day site you went out thinking, this is a little too tricky up. So these things we should have the habit of independent thinking, to think independently analyzed. 'Internet +' and '+ Internet' What is the real issue? Not follow the trend, not follow these look very attractive slogan. The real issue is how to use the Internet to develop new products, how to use the Internet to improve the efficiency of their business. Now there is a slogan is very hot, the government is encouraging this boom, this boom is the 'Internet +.' I want to put another business model, not the 'Internet +', but in turn '+ internet.' Internet new technology like this, we can not ignore it. Internet companies are 'Internet +', the traditional industry went from line online called '+ Internet' from online to offline. In the end is the 'Internet +' or '+ Internet', not as obvious, in the end how to do it, depending on which way higher efficiency. Internet companies may fall, Jingdong make electricity providers can fall no problem, I do not oppose this, Jingdong also very successful. Similarly, you can do like Wal-Mart + Internet, from traditional to online retail electric providers do, two paths you can go through, not necessarily the Amazon beat Wal-Mart, NIKE KD 6 NSW Amazon as an electricity supplier company though ferocious, but Amazon recently leaving the electricity supplier, shop and go to shop and go to the platform of cloud computing. I guess that Amazon found that it may in the long run Nike Air Jordan XX8 dry in traditional retail Wal-Mart, however, no way to replace the Wal-Mart, Wal-Mart did 10 years turn electricity supplier, last year finally made a breakthrough last year, Wal-Mart's online sales over the first increment Amazon, now give me the feeling that Wal-Mart began to force electricity suppliers, Nike Lebron 11 Kid which is a traditional industry to use the Internet to improve their efficiency, '+ Internet' instead of 'Internet +.' 'Internet +' of the Amazon but is to leave the main electricity supplier industry, revenues have now constitute 20 percent from non-core business, cloud computing and trading platform from. And the current increased investment platform of cloud computing, cloud computing and platform is clear margins, its return on capital than the traditional high electricity supplier that part a lot. Amazon take full advantage of it online, avoiding the disadvantages of the Internet. If Wal-Mart can not replace, you can not beat Wal-Mart, can you do? It was good at doing their own thing. Wal-Mart is also seen to it brings the Internet to simplify sales channels, it brings rapid dissemination of information, has been to increase investment, investment in electricity providers. Use of the line around the store, it is easy to pick up delivery, this advantage is experience. The advantage is that Amazon is saying there is no way to compete. What kind of merchandise for online sales? Simple commodity, a commodity standard, the customer experience is not required commodity, these things for online sales. More complex commodity, difficult to judge the quality of goods, commodity needs of the customer experience, not on the way to the line. So to hear people say that in the future Amazon eaten Wal-Mart, I find it funny. Or that there will be future Internet banking, and Internet banking more than all the existing total bank assets, I think this may be a dream. What dreams do not Nike Air Jordan Women know, this is a dream, he did not in-depth analysis of what the various characteristics of the industry, there is no use your brain to think about the problem, follow while wind blew over. Now Amazon and Wal-Mart's competition, one is the 'Internet +', it is a '+ Internet', which is hard to say one final winner. We can conclude the two will coexist for a long, in which their respective areas of strength, come over each other, rather than the full range of more than each other. In the country we see the Internet + and + Internet mode in the competition. What ant gold dress? Is Internet + finance, land and gold is what? Lu gold financial + Internet service to win gold in the end ants, or land the unknown. It is likely that both the long-term coexistence, probably in their respective areas of strength, and to play to its own strengths. So do not follow suit running, always go through their own thinking, again he concluded. [Editor / Liang Hao]