The value creation logic of Jingdong enterprises in the digital age

The value creation logic of Jingdong enterprises in the digital age

Author: degree Cao Yan

In the digital economy, the performance of microprocessors doubles every 18 months, while the cost drops by half. In the offline scenario, it is still difficult for most businesses to find a way to evolve under the current overall economic pressure.

In the field of personal consumption, the power of technology and the Internet to improve life and increase experience has been fully unleashed. In the field of business, is the value of technology and Internet innovation failure?

The answer is obviously negative. Although the enterprise business because of its particularity, in the words of Song Chunzheng, vice president of Jingdong and head of enterprise business, enterprise business will be a long-term battle requiring patience, determination and concentration. However, when the power of technology and the Internet is unleashed in the real industry, its response to the proposition of the era of economic transformation and energy conversion is extremely loud.

As the world's longest high-speed rail mileage, the highest transport density, the most complex network operation scenario of China's railway, material procurement management has also entered the intelligent fast lane. At present, 14 railway bureaus in China have joined hands with Jingdong in exploring the upgrading of material procurement through electronic commercialization, providing the rail transit with innovative technologies such as supply chain and big data, deepening the integration of high-speed rail network and Internet, and promoting the improvement of material procurement management level and service efficiency of each railway bureau.

Aiming at the special needs of diversified and complicated procurement scenarios of railway bureau, Jingdong meets the needs of efficient and rapid procurement of Railway Bureau to complete the whole process electronic reform through the provision of intelligent procurement solutions, from the front-end mall system to the follow-up implementation process design, and the opening of the whole process information flow. And 100% coverage of the country's administrative areas and counties and other logistics advantages, effectively solve the railway bureaus most concerned about supply chain management, procurement costs and efficiency issues.

Some data show that after the cooperation between Shanghai and Kunming Railway Bureau and Jingdong, through the collection and monitoring of commodity price information and other services provided by Jingdong, the cost savings rate is 15% compared with the traditional procurement channels, and the time from placing orders to arriving goods is shortened from an average of 8 days to 3 days, which effectively reduces the storage cost and increases the storage cost. The overall turnover rate of capital turnover increased by 17.6% compared with that before cooperation.

In the past year, the Shanghai Railway Administration alone, through cooperation with Jingdong, has saved 18.81 million yuan and 16.7 percent of the total cost by "e-commerce direct purchase" of office supplies, computer consumables, low-value consumables and other small commodities.

At present, the real economy has developed to a special node of the transformation between the old and the new. The marginal efficiency of the traditional growth model and the operating system is approaching exhaustion. The time has come to look for ways of business evolution and model evolution from the digital economy and new technology, and to open up innovations to create new models.

Entity dilemmas and opportunities for transformation

"The economy closed in August this year amid a weak supply and demand pattern, and the improvement in production margin caused a slight rebound in manufacturing PMI, but it was difficult to hide the decline in demand and deterioration in inventories," according to a new study published by Haitong Securities Research Institute. From the high-frequency data of the medium-term, on the one hand, terminal demand has not improved, three or four lines drag down the decline in real estate sales, and passenger car retail sales growth again record low; on the other hand, production continues to decelerate, crude steel production and power consumption growth rate of coal both declined to negative.

Based on the current market research situation, the study pointed out that "the current downward pressure on the economy increased, the real economy operating difficulties intensified, high cost erosion of profits, restricting investment expansion."

In fact, the more downward pressure the economy is facing, the more difficult it is for the real economy to operate, and the stronger the demand for corporate transformation.

Song Chunzheng said that the commodity is very rich, and the more and more competition is the inevitable trend of business evolution. In the world, mature economies will go to this stage. After all, the growth of enterprises should be complemented by the "elevator effect" of external environment and the endogenous development plate of self-evolution and upgrading. The orientation of Jingdong enterprise purchase is to help the entity enterprise realize transformation and upgrade in the digital age by empowering the value chain from "buy" to "sell".

"From the feedback of Jingdong enterprise customers, using our purchasing platform, the integrated purchasing cost has been reduced by 15% under the condition of constant commodity prices." Song Chunzheng said that on this basis, the overall purchasing efficiency of enterprise customers increased by at least 50%: "The original 21-day procurement cycle, now completed in 3 days."

Behind the figures, what is more important is the upgrading and evolution of the enterprise operation system. Jingdong Enterprise Purchasing Business has accumulated a great deal of experience in serving enterprise customers in the course of seven years'development. At the same time, its Internet technology company's genes and models have forged a large number of Internet, Internet of Things, supply chain, artificial intelligence technology and solutions.

In the process of serving enterprise customers, on the one hand, Jingdong Enterprise Purchase can deeply understand the industry attributes and business characteristics of the enterprise, digitize, standardize and scene it; on the other hand, it can also upgrade the existing process of the enterprise from the latest and optimal mode of the whole industry development, and work with the enterprise to process it. Transformation.

In August, Jingdong Group and China Pacific Insurance Group (hereinafter referred to as "China Pacific Insurance") jointly announced that the first electronic VAT invoice project in China was officially launched by using block chain technology. Through the digital application of block chain special invoice, the Internet procurement process between the two sides was promoted to be electronic and efficient. Transparent and digitized procurement management system. In the past, large-scale bidding and purchasing projects required an average of 30 people, 50-60 working days to complete, while e mining reduced nearly 75% of the manual audit process, achieving a comprehensive optimization of cost and efficiency.

For many entities, although they have a deep understanding of their industries and inherent advantages, the rapid development of the Internet and technology in the last decade and the formation of great changes in the new business system, is not a short time to upgrade within the original framework.

Jingdong's business is not only backed by the largest management sample in the Internet field, but also has the advantages of large data and the system of commodities, logistics, finance and other elements. It has a unique advantage in the trend of digital transformation.

Song Chunzheng said that the traditional enterprise operation and management upgrade, such as a set of ERP system, financial system, CRM system, often means a lot of investment, and output will take a while to show. The development of Internet and technology has overturned this model. Jingdong enterprise business is based on the platform business model, in most cases, almost free access to enterprises, and access immediately after the results.

Technology driven value creation

There is no doubt that the development of commercial society has entered a new chapter. Under the new economic environment, how to realize enterprise value innovation through fine management has become a new proposition of industrial transformation.

In April of this year, Jingdong officially released the corporate intelligence platform "Jingxi". This is not only a typical case of Jingdong Group's "integration and opening" strategy facing enterprise management empowerment, but also the beginning of Jingdong Group's business focusing on enterprise fine management transformation and starting scenario strategy.

In addition to the welfare scenario solutions that have been released, Jingdong has launched a software-hardware+service integrated intelligent office scenario solution, the Tokyo Point, based on its strong technical advantages and resource integration capabilities.

Beijing-Tokyo Point Intelligent Office Solution consists of two modules: Intelligent Office Scene Solution and Goodyear Office Asset Lifecycle Solution. The mobile App based on Jingdong "Xiaoyi" platform connects with hardware such as printer, projector and electronic whiteboard, and connects to lease, maintenance and recovery. And other services to achieve intelligent office. The release of this solution, for the first time, realizes a high degree of collaboration between the upstream and downstream enterprises in the industrial chain under the office scenario, and promotes the evolution of the office scenario.

In the layout of office supplies, employee welfare and other "general commodities" of the enterprise procurement, the procurement of industrial products may become another focus of the enterprise market in East Beijing.

"Jingdong's business focuses mainly on two aspects of capabilities, one is general merchandise, which can be understood as indirect materials. The other is direct materials, that is, the ability to find sources of industrial raw materials. Song Chunzheng said that Jingdong is relatively mature in the field of indirect material procurement, including scenario solutions, office supplies, employee welfare and so on: "Industrial products procurement is the layout we started last year, and will focus on building this service capability next."

Undoubtedly, the procurement of industrial products based on direct materials will be a huge market, but compared with general commodities based on indirect materials, the non-standard procurement of raw materials and customized needs of different enterprise customers will undoubtedly become a threshold to enter the market.

"There are too many service providers who can provide indigenous capabilities, but not many who can really provide an integrated solution around their customers to help them achieve value innovation. By giving full play to the technological advantages of Internet enterprises and tailoring a set of solutions to different industries and customers, we can invisibly play a positive role in the change of business management concepts and management processes, and then influence the whole in part, and ultimately promote the change of the whole corporate governance structure and mode. Song Chunzheng said.

Under the new normal background, Chinese enterprises in various industries are facing the urgent need for value innovation, and all of this, under the boost of Jingdong enterprise business is fully launched. In the financial industry, Jingdong helps to improve the efficiency and quality of supply chain operation through the whole process of electronic services, so as to achieve effective supervision by relevant departments; in the manufacturing industry, Jingdong promotes the upgrading of supply chain with the technical advantages of Internet e-commerce, realizing the innovation and integration of real economy and Internet economy; in the energy industry, Jingdong deeply participates in energy. The digitalization of purchasing management in the source industry promotes the "two integration" of energy enterprises through technology empowerment.

Based on the in-depth insight into the enterprise market changes, Jingdong integrates the infrastructure resources of commodities, supply chains and other enterprise user services, and joins hands with the most powerful partner resources in the upstream and downstream of the industrial chain, transforms them into any combination of enabling modules by means of technology, seamlessly linking up the fine management of enterprises. Scenario requirements. Relying on the industry's top resource reserves, technological advantages and integrated service capabilities, Jingdong is not only a keen insight into enterprise market change, but also a powerful driver of business iteration and value creation.

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