Ouyang article: Direct selling enterprises must undergo digital transformation
[Direct Report Network Beijing June 18rd] (Direct Sales Reporting Network)With the advent of 5G era, the digitization process has become a new way for human beings to interact with the world. Direct marketing industry is living in a data-driven development era. Direct marketing enterprises that can not adapt to the development and progress of the times will lag behind and be eliminated. Therefore, the current direct selling enterprises must carry out digital transformation.
Digital survival is a new way of survival based on information technology in modern society. In 2017, "Digital Economy" was officially written into the report of the Nineteenth National Congress of the Party. In March 2018, the government work report put forward "developing and expanding new momentum" and "refueling for the construction of digital China". The national positioning of digital economy is not limited to the level of emerging industries, but to upgrade it into a national strategy to drive the upgrading of traditional industries. In the digital age, the direct selling enterprises must keep pace with the times, so as to avoid becoming the abandoned children of the times.
Under the increasingly stringent supervision, direct selling enterprises can only survive by building their own competitiveness, and digital transformation is the inevitable choice for direct selling enterprises to build their competitiveness. Why? From the outside, in the tide of digital transformation, direct selling enterprises like sailing against the current, if they do not advance, they will retreat. Without digital transformation, direct selling enterprises will be abandoned by consumers, surpassed by competitors, marginalized by the market, and eventually out. Internally, digital transformation can capture new market opportunities, try new business models, and occupy a position ahead of time in the future business market. We know that customer-centric is the key to survive in the market competition. Different from the competition mode in the period of traditional industrialization, the core competitiveness of direct selling enterprises in the digital economy era has changed from the traditional "manufacturing product capability" to "service capability + Digital capability + manufacturing product capability". Direct-selling enterprises should have the ability to carry out technological R&D innovation, speed up the transformation of R&D design to collaboration, dynamic and mass creation, and have the ability to change production mode, speed up the transformation of product sales to intellectualization, flexibility and service. At the same time, direct selling enterprises should have the ability of organizational management reengineering, accelerate the expansion of organizational management to flat, creative and self-organizing, and also have the ability of cross-border cooperation to promote the evolution of innovation system from chain value chain to flexible value network that can interact in real time and participate in many ways. All of these need to be transformed to digital, which is the only way to enhance competitiveness in this area.
Digital transformation is the inherent demand of enterprises to reduce costs and increase efficiency. The Internet concentrates a large number of digital technology resources and services, and produces economic value by greatly improving the application efficiency. Internet services directly lead to the centralization of computing services and information services, and further promote the centralization of various service resources, making the centralized and open service platforms have a great space for development. Shared service cloud platform based on the Internet not only enables direct selling enterprises to enjoy advanced information technology applications and services at a very low cost, but also enables technology and equipment to be fully applied, thereby improving product utilization.
In the digital environment, enterprises are in a crisscross network relationship. Faced with decentralized network nodes, platform-based industrial organizations integrating multi-resources emerge as the times require. The mode of value creation of enterprises has changed from traditional linear to chain-based and network-based, which makes the competition and cooperation between traditional enterprises tend to be ecological and platform-based. There are more than 90 direct selling enterprises in our country, which are in a state of separate struggle at present. If 5G blossoms in an all-round way, many direct selling enterprises will realize the ecological prosperity of the industry on a cloud platform. Because the economic activities of direct marketing industry are closely related to the generation, transmission and use of data, data as an independent factor of production accelerates the flow in the process of value creation, and excavates the new value of wisdom organization, management and service of direct marketing industry. For example, in the management of the direct selling team, the direct selling enterprises are gradually transforming from the linear paradigm dominated by process to the flat collaborative paradigm driven by data, forming a new organizational structure with efficient information flow, rapid response to demand and full stimulation of innovation ability, thus promoting the healthy development of high-quality direct selling enterprises.