“All I looked at this morning was a pile of rice. Rice is important. What is discussed at the table is more important.” In order to turn the Wuzhen Conference into the Davos Forum, people should pay more attention to the thoughts and ideas of the Conference, rather than gossip, Jack Ma, chairman of the Board of Alibaba, said during the entrepreneur Summit dialogue of the Fourth World Internet Conference held in Wuzhen on December 5.
“All I looked at this morning was a pile of rice. Rice is important. What is discussed at the table is more important.” In order to turn the Wuzhen Conference into the Davos Forum, people should pay more attention to the thoughts and ideas of the Conference, rather than gossip, Jack Ma, chairman of the Board of Alibaba, said during the entrepreneur Summit dialogue of the Fourth World Internet Conference held in Wuzhen on December 5.
Ma talked about alibaba’s several painful transformations, including why it decided to turn alibaba into a data company nine years ago and why it decided that mobile Internet and mobile shopping were the future five or six years ago. Transition is painful, and people have to upgrade, change, leadership has to upgrade, organizations have to change.
Ma revealed that he advised Amazon years ago to look for managers who were entrepreneurial rather than professional, and not someone who was focused on pleasing the boss rather than the customer. In addition, you need to follow the rules of doing business in another country. ‘China has always been open,’ he added. ‘If you decide to come to China, you have to be prepared to abide by Chinese laws and regulations and spend 10 years there. Don’t feel like you have to leave without being happy.’
In Ma’s view, don’t put the real economy and virtual economy against each other, and don’t put the service industry and manufacturing industry against each other. In fact, an important part of the real economy is the service industry. The service industry and the manufacturing industry are also two sides of the same coin. Some people say that I only do the service industry but not the manufacturing industry, or I only do the manufacturing industry but not the service industry.
“Is Haidilao a manufacturing industry or a service industry? Everyone thinks of Haidilao as a service industry. I think it is a manufacturing industry, starting from the purchase of hot pot materials, but actually it is a service industry only when the service industry is served. BAT is a manufacturing industry or a service industry. We are a manufacturing industry. We create a lot of data, process information and share it with others.” Mr. Ma said.
Jack Ma believes that not all enterprises need to become platforms, but your enterprise must have the shared ideas of platforms, because only such ideas make others and your customers more powerful.
The following is a transcript of Jack Ma’s share and conversation
Every time in Wuzhen Internet conference to share views on the future, some thoughts, especially in the past year.
I just discussed the transformation from traditional economy to Internet economy and digital economy. Personally, I think that not every enterprise has to transform, but every enterprise has to upgrade. This is because the future has changed, the market has changed, the size of the market has changed, the number of people has changed, and the quantity has changed.
The transition must be painful
In fact, Alibaba has gone through numerous painful transformations and upgrades in the past 18 years. Alibaba today is not what it was 18 years ago, nor is it what it was a year ago. We’ve done that, and it’s very hard to look at internally. I remember a couple of transitions, which must have been painful, and one of the most hotly debated decisions internally nine years ago was that we should turn this company into a data company, because we thought the future was the cloud and big computing data.
The other time we took the mobile Internet wave and turned ourselves into mobile search, mobile social, and especially social. Social we saw very clearly that money was going to be made and social was going to be a quick success. Cloud computing, big data, basically we didn’t know how to make money for 30 years, but we knew it was the trend. To go into the future, one is to go into the next 10 years, the other is to go into the next 20 years, we finally decided to choose the path of the next 20 or 30 years. The hardest thing about this decision is that one, you don’t know how to make money, and two, you don’t know how to survive. Then came the whole mobile social, mobile apps, was it painful? Of course it was painful, but we knew we were choosing the future and we had no choice but to go with it.
We made this decision nine years ago. It seems to be the right decision today, but it was extremely painful at the time.
And a decision is 5, and 6 years ago, everybody do e-commerce in PC, all of a sudden we think the mobile Internet mobile phone shopping must be in the future, then make the decision, the mobile phone shopping only accounted for less than 5% of the entire shopping process, but if you don’t make the decision, mobile phone maybe I don’t go, but we feel a certain from PC to mobile phones. When we discuss internally process, the phone how such a small screen shopping, most of people think that mobile phone is too small, could not have become the trend of e-commerce shopping in the future, then we think anyway, this must be in the future, because young people did not feel mobile phone screen is small, it is our it to help the old man think the phone’s screen.
So far, the pain has been worth it. We called it “All in Wireless” at that time, and today nearly 90% of the transactions on Singles’ Day are realized on mobile phones. Once you have to make this decision is very painful, the road is also very painful, you have thought about it? Today from the traditional economy to the digital economy is inevitable, you have to choose to go, do not choose to go, but the key is how to go. I believe today it is no longer necessary to say whether I want to go to the digital economy or not. Most of me have to go in this direction, but how?
How to change?
Leadership needs to be upgraded and organizations need to change
My colleague from Huawei is right about leadership. First of all, we need to reform the number one. You can’t reform the top people for a long time. You only have the number one leading the change and upgrading of leadership. The same is true for enterprises. When you are a small enterprise, you have no problem thinking of all kinds of tricks. When the enterprise scale exceeds 10 billion yuan and the revenue is generated, the leader must upgrade and achieve a high level. We often say that winning lies in the details and losing in the pattern. In large enterprises, the pattern is always losing, because they have too many things to do, so you have to stand tall. What problems you must overcome today and what problems you may not overcome tomorrow are priorities of leadership.
Secondly, the organization needs to change. Many people say that my strategy has changed, but my organization has not. It is still an academic discussion, I tell you. We need to transform and upgrade all sectors, from government to institutions to all sectors. First, the leadership has not changed, second, the organization has not changed, and third, our vision has become optimistic. In the past, we have judged that the past 10 years have been like this and whether there will be any change in the future. If the vision has changed, the organization must change and the leadership must be improved. As for the new economy and the old economy, I think the new economy will be short-lived. In the future, I agree with my friend from the World Economic Forum that the new economy and the old economy will eventually be the economy. I call it the new economy at this moment.
New retail, new manufacturing, new technology, new energy and new finance will be called “new” in a few years and “old” in a few years. I hope you will remember that we are facing such challenges and opportunities today. You have to change who you are. Clothes are new today and old tomorrow, and businesses are the same. I want you to keep in mind that my view is that everyone needs to upgrade.
Don’t set the real economy against the virtual economy,
Don’t contrast services with manufacturing, either
In addition, I would like to share a few views on the real economy and the virtual economy. In fact, the real economy and the virtual economy are two sides of the same currency. If we cannot vigorously develop the real economy, we should not develop the virtual economy. What is a virtual economy? Generally speaking, finance is a virtual economy, our country should develop the real economy, we must develop a good virtual economy, virtual economy used to be bad development is not perfect, rather than not to develop, these two must not be opposed. The real economy cannot do without the support of finance, and finance cannot do without the real economy. To develop the real economy, however, if we forget that, our country’s virtual economy, especially in the financial field, is too imperfect and needs to be developed. Only in this way is it normal.
Second, develop the so-called real economy and unify it into manufacturing industry. In fact, an important part of the real economy is the service industry, and the service industry and manufacturing industry are also two sides of the same coin. In particular, developing countries like China, with 1.4 billion people, have no modern service sector. How can we find employment? We all talk about vigorously developing the manufacturing industry. The next trend of the manufacturing industry is artificial intelligence and robots. If the manufacturing industry does not solve employment in the future, there will be fewer and fewer jobs. If our technology is technology for technology’s sake, technology for the first and then advanced, let a lot of people at a loss when our society is really wrong. To truly the transformation is the gang out what to do, so I think the first thing to vigorously develop modern service industry development, and the United States and Europe a lot of advanced manufacturing because they gave a low-end manufacturing to developing countries, the United States to develop the modern service industry, the financial system in high-tech fields, more and more high-end manufacturing, The top end of the manufacturing sector must first build a strong modern service sector. What’s more, there will be no pure manufacturing industry and no pure service industry in the future. The future manufacturing industry must be the service industry, especially in the IOT era. Your pure manufacturing era has passed, and the future service industry must be the manufacturing industry.
I mentioned an example yesterday. Is Haidilao a manufacturing or a service industry? Everyone thinks of Haidilao as a service industry. I think it is a manufacturing industry, starting from the purchase of hot pot materials, but actually it is a service industry only when the service industry is served. Do you say BAT is a manufacturing industry or a service industry? We are a manufacturing industry. We produce a lot of data, process information and share it with others after manufacturing. Some people say that I only do the service industry but not the manufacturing industry, or I only do the manufacturing industry but not the service industry, I think it is not reliable, we should think critically, look at the future situation, judge the trend of the future to adjust your strategy, this is my view.
Our countries, especially developing countries, Africa and Southeast Asia, must think about how we should deal with the advent of high-tech. Now everyone is worried about employment, everyone is worried about losing their jobs, but we certainly do not lack jobs, but we lack imagination. Our country should vigorously develop modern services in the real economy, and we are vigorously developing the digital economy.
One thing I forgot, how does Alibaba transform itself? What do you mean we’re going digital? Nine years ago, when we decided to move towards big data and cloud computing as a whole, we said, “All our business is data-oriented and all our data is business-based”. All of our business must be digitized, because only when all of our business becomes data can we possibly enter the data age. But in the future, all of our data should be commercialized, because only in this way can data serve the society and customers.
I think you need to guarantee these problems with the system, with the organization to guarantee, personnel to guarantee, guarantee your belief, guarantee you believe in the future.
Creativity and imagination are the new economy
Finally, we should not consider the digital economy and the traditional economy, as if I am very traditional. In fact, many traditional economies are very high in technology, and many digital economies are not good either. I think they are still imagining things. What is called the new economy? In fact, it is a creative economy and an imaginative economy. We create and imagine. “New” is creativity, imagination, so I think we can’t because of their lack of knowledge, not because of their lack hindered your imagination, we can’t because their level is lower, our own imagination is lower, our knowledge structure is lower, to restrict other people’s imagination.
Imagination economy and creativity economy are the new words of today. A lot of our future is hard to imagine today, it’s really hard to imagine, 30 years later people can’t imagine, we have 18 years to get to today, how did you do that? But nobody imagined it. In the 18 years we have spent, it is estimated that others have not made as many mistakes as we have in 18 months, and they have worked overtime as much as we have in 18 years. We insist on 18 years bit by bit bigger than others, but in the next 18 years, 20 years countless countless enterprise organization will depend on the Internet, the change of big data, what are you going to like that we work overtime, whether you like our company internal hitting table you hit the bench, you three days, five days work not talk but finally. These are the pains of transition. We all feel transition is important, but are you willing to pay the price? Therefore, it is a good thing that BAT is the powerful driving force behind BAT because we believe in the future.
Remember what I said last year, a lot of people believe because they see, but those of us see because we believe, we believe it is the future, we see it is the future, we turn it into the future, and that is what all of us have to have in this transition.
All enterprises are not necessarily platforms,
But you have to have the idea of a platform
Of course, I think my colleague from Huawei just now said that many people are worried about becoming a platform or being platformized. In fact, I think being platformized is a good thing. Technology revolution gave birth to the factory for the first time, the second technology revolution in the past was born in 100 and strengthen the company and the third technological revolution will be born platform for enterprises, and the understanding of the platform enterprise at present, our country platform for the understanding of the economy is not only our country, the whole world is more important, the main thinking platform sex is to make people more and more strong, The most important idea and concept of platformability is sharing. In the last century, we thought about change mainly by ourselves, but he must think about change by others. Not everyone can do it. The platform needs strong service ability, strong manufacturing ability, and strong ability to take the interests of others as the center.
One thing is for sure, you may not become a platform of enterprise, but your company must have a platform of sharing ideas, share ideas, because only such thoughts let others, let your customers more powerful, big companies like us, the stronger our platform is that I wish to small businesses, the stronger the young, but if you are small, You should make your company more powerful for your employees, more powerful for your customers, more powerful for your partners, and that’s platform thinking. You may not have the ability of the platform, but you must have the idea of the platform and the practice of the platform, which is very important. In the future, not every country in the world will have a large platform, just like “aircraft carrier” is a platform. But how many countries in the world can afford, build and operate aircraft carriers? The “aircraft carrier” is the idea of a platform, which will bring great changes to the whole economy in this century and the next century, and the greater the operator of an economic platform, the greater the responsibility.
This is some of my views and views, may not be quite right, but just to give you some thinking, please every wuzhen meeting, we sit together is to discuss and share.
What problems we can communicate, here is a rare opportunity to communicate.
Q&A session
Lift to ask:I am the founder of Eselect Stock. In the current regulatory environment of big financial institutions, ant Financial has put forward the direction and ideas of new finance. How does this match the national strategy and weigh the potential risks we may face in the regulatory process?
Mr. Ma:First, what is the new finance? In the past, traditional finance served 20% of the customers and made 80% of the money. In the past, traditional finance mainly served large enterprises. In the past, it was the “80/20 theory”. To help small businesses, women and the disadvantaged get access to this money. This is the new finance. Inclusive thinking, sustainable thinking and green thinking are the three key words of new finance.
I agree with the regulation very much. At present, it is necessary to severely deal with fraud and fraudulent behavior using Internet finance without Internet finance ability. What happens if you don’t do this? What I am afraid of now is that one person is sick and ten thousand people take medicine. The most unfortunate thing is that all the people in one life are given radiotherapy and chemotherapy, and the people in cancer are not dead, and the people in chemotherapy are dead.
We should work together with the regulatory authorities, because the trend of the digital economy is overwhelming, but we can work together on how to regulate. In fact, the biggest risk in addition to our traditional financial systemic risk, there is another is countless enterprises due to lack of capital and collapse. However, we can not feel indifferent because of the license, there are many P2P fraud, thousands of such enterprises are doing so, I firmly believe that our country must strengthen the supervision of this aspect, but about supervision, our thinking is for the future, rather than put it to death, this is my opinion. Therefore, Ant is also honored to have been cooperating and discussing with the regulatory authorities for so many years. In my opinion, these discussions are healthy. When something new comes out, everyone listens and communicates with an open heart to jointly create a mode and mechanism of supervision.
Lift to ask:I am now an entrepreneur born in the 1990s. After returning to China, they gave us many concepts that we should do something down-to-earth. We had a lot in business threshold and bottlenecks, because the threshold and bottlenecks may come from different cultural background, is also likely to come from not enough, the landing of the localization of a practical understanding, but I feel more degree is a startup now we can do things less and less, but also must to do very fine, Once it gets to a certain level it’s very nature. Now we are doing a soft outfit entrepreneurial project, which is to combine soft outfit with Internet and intelligence. My question is that in this case, how should our generation deal with the problem of choosing the right direction on the entrepreneurial level.
Mr. Ma:Just to correct you, grounded gas is not a concept. What is grounded gas? You can connect with customers and markets. The second thing I would like to mention is that any big business starts from Nature Market. Only when people believe in it can you have the opportunity. Everyone’s going this way, you’ve got no chance, the path you choose will never be taken, but you believe. What is entrepreneurship? Entrepreneurship is to do what you love what you believe, the pioneering not today want to see what is the best chance of, that you died, you must do is I love, I love, I believe, to find some love also believe that the person you like, ready to take a decade of time, then you have to believe that nobody will give you money, with what others give you the money.
Lift to ask:I live in China, and my family are very fond of using Taobao and Tmall. Thank you for providing us with this invention. President Xi Jinping mentioned that China’s Internet will be further opened to the world, and the door of the Internet will not be closed. We also saw companies like Facebook or Google at this conference, but their services are banned in China, it seems that the Internet is not very open.
Mr. Ma:That’s a good question and I’ll try my best to answer it. First of all, China has always been open, and it is open now. In fact, We are open to Google, but Google chose to leave, we did not drive it away, it has always been here, Amazon has never left China. It’s not that we didn’t make it work, it’s that they didn’t. I advised them 10 years ago to look for managers who are entrepreneurial, not professional. Because no matter what country you go to, it’s very difficult to do business in other countries, don’t go to people who are committed to pleasing the boss rather than pleasing the customer, we as a multinational will send people to other countries, but a lot of people they don’t want to please their customers, this approach is not going to work.
The second thing I told them is that you need to follow the rules of other countries to do business. For example, I am not a member of the government, nor do I speak on behalf of the government, but I know that if Google and Facebook want to come to China, they must abide by Chinese laws and regulations. So what are the laws and regulations in China? In fact, it is not necessarily Facebook or Google today. If a Chinese company like us goes to the United States or other European countries, it will also follow the laws and regulations of the local government. That’s why I talk to local and global government officials about what they don’t like.
Another thing, it is not easy for foreign companies to come to China, but we also see many successful foreign companies, such as Microsoft, IBM or Coca Cola and Cisco. You give me 5 examples, 5 examples of Chinese companies that have succeeded in the United States, 5 names, or 5 Asian companies that have succeeded in the United States. Because it’s really hard for you to do business in other countries, it takes time, it takes network. Every time President Xi speaks, I listen to him carefully. I think the Chinese government is opening up, and we are opening up, otherwise none of you would be allowed to come to Wuzhen. So if you decide to go into China, you have to be prepared to abide by Chinese laws and regulations, and spend 10 years there, and don’t feel like you have to leave if you’re not happy, this is not a market that you can come in and go out at will, that’s what I think.
Lift to ask:I would like to ask whether our cloud platform can enter the deep water area to do in-depth application in the process manufacturing industry?
Mr. Ma:Of course, if you believe in affirmations, and I do, but it’s not easy. It’s not easy. Just like what I just said, e-commerce is not easy in China. It is impossible without the efforts of a group of people, and it is impossible for the industrial Internet and industrial cloud to persist for many years without a group of people. The most amazing market must be created. I think the industrial cloud must have a future, but not you, I don’t know, anyway I believe, I try hard to see, this is our point of view.
Lift to ask:Thank you very much, Mr. Ma. I am very impressed that you have achieved the world’s top level in terms of globalization and e-commerce in the Internet world. In terms of Internet and finance, you have also achieved great innovation. I have been working in the field of capital market and capital service for nearly 20 years. In the close combination of Internet and capital market, I would like to ask you for your thoughts on this innovation. And the idea that you can make some great achievements and contributions to the country?
Mr. Ma:I dare not say I comment on the Internet and the capital market, I really don’t understand, I can’t do not understand the comments, I just think the capital market in China in the future also constantly improve, and constantly strengthen the perfect, China’s capital market is the early stage, the Internet should be able to do a lot of, alibaba is concerned with the traditional economy to the transformation of the Internet, What Alibaba cares about is to help small and medium-sized enterprises reach the market, to help small and medium-sized enterprises get money, to help small and medium-sized enterprises global trade, which is something I dare to do. As for how to go public and how to raise money, I am at a loss. As a real enterprise, you should provide good customer service and do your own process well. Money will come naturally.
All entrepreneurs and business people focus on it. I have also seen that Wuzhen Conference has gradually become a place where many young entrepreneurs communicate, listen to ideas, and have an open mind. What’s more, we should pay more attention to what ideas and ideas are very interesting in Wuzhen conference. It should be helpful for the government to make policy, for scholars to conduct research, for entrepreneurs, and we should not become too much of a gossip type. All I saw this morning was a bunch of rice. It’s important. What matters is what is discussed at the table. We will turn the Wuzhen meeting into davos. The spark of our thoughts is like a snowflake in the world and we are good, and we should share some opinions and thoughts, right and wrong honestly, and that’s the most important thing, so that’s what I want to share with you. Thank you all for attending the wuzhen conference. As a local person, I grew up here in Tongxiang. I am very happy for you to come here.
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