Li: the digital revolution and the new wave of entrepreneurship

the author is innovation works founder, chairman and chief executive, Dr Lee

I am glad to get sick after make a speech for the first time in China. Today I want to share with you a few ideas, first, the digital revolution era of gold business. Second, the digital revolution to change our future, the future will be more beautiful. Third, to go global innovation opportunity, how to grasp the Chinese entrepreneurs.

the first talk about the global trend. Many years ago, exactly 40 years ago, at that time also no PC. But soon the two revolutions, PC and Internet revolutions, each person has a PC, has a mobile phone can get to the Internet, then gave birth to many global companies. 35 years of growth, the world has 2 billion sets of equipment, while over the past five years of development to achieve more than 35 years before. In the past five years have 6 billion devices around the world.

the development of mobile Internet and connect people and equipment, all people, changed every aspect of life, including reading, social, sound, electricity, transportation. Travel, photography equipment and bank and payment, etc. In retrospect, the mobile Internet speed very quickly every detail, change the life and work, various industries are upset by the mobile Internet.

why will subversive type change?

our observation, six parallel phenomenon will occur and accelerate, creating new wave. They are:

first, according to Moore’s law, greatly reduce the computing cost, reduced even 10000 times . you can consider, if the car cheap ten thousand times, ten thousand times cheaper house is what it means. Calculation of cost reduction brought popularity it ten thousand times, everyone can have a mobile phone.

second, infrastructure construction, from cable networks to 3 g, 4 g, and even the future of 5 g, global operators using the technology provides a huge bandwidth.

third, cloud computing and open source software and vc to achieve the lowest in start-up costs. in the past 30 years, the design of a PC may cost tens of millions of dollars and spend 5 years time. But in today’s mobile Internet era, the start-up cost is very low, 3-5 entrepreneurs, to develop an APP, free downloads, if the product is good enough, their startup cost hundreds of thousands of yuan. And if in their own time, with the open source software, business cost is almost zero, willing to put in the time and effort, as long as the entrepreneurs will have a chance to get investment.

4, with the aid of thinking in the Internet to promote the growth of the company is very fast. millet mobile phone sales from millions to tens of millions of units, rely on the Internet to sales and services, growth of high efficiency.

5, the wise to provide “smart money”, including providing ideas, resources and contacts. smart investors give you money, the value will be different, he can help you ideas, introduced the contacts, providing resources, the entrepreneur is really the icing. Innovation works also want to be smart, more important is to rely on knowledge, contacts and resources to help you bring the company to make big quickly.

6, genius we overthrow, most genius entered the business field, the field in the future. now, the school of genius, is no longer to test administered by the department to when executives after graduation, but to start a company. I deeply believe that genius into a certain industry, the development of the industry will be unpredictable. Talent around the world now, more and more into business, will promote entrepreneurship is more and more hot.

the PC and the Internet is the first cycle, mobile and social cycle, the second and the third phase and cycle is cloud computing and big data and O2O share of the economy. Now, from the perspective of the background of mobile Internet, the whole people all online movements can be in contact with the operators and entrepreneurs, the background of big data can be analyzed out quite a lot of detail, make very accurate predictions. Whoever has big data, takes up a huge advantage. Data storage and mining brings opportunities as well as machine learning and intelligent brings great revolution.

the other one is the concept of Internet of things. The past in the above machine and the microprocessor to surf the Internet to thousands of yuan, now through phone, access to hundreds of yuan can be achieved. In the future, we each person’s home, shoes, watches the thermometer can be connected to the Internet. This is all connected, will bring more imagination space.

five future trend

just mentioned the mobile Internet era has 6 billion sets of equipment. And if it will be delayed for another five years, growth will be more big, in addition to mobile phones, tablets, and wearable devices, connected to the car, add up all the equipment will be more than 40 billion units.

40 billion Internet device, the future development of five trends:

first, young people would lead content, technology, and investment in the future. they are a new generation of the digital age. More young, more will contact the new products. After 95, it is very time leading index. After 90, we will with learning after 95, after 85 and 90 after learning, learning after after 80 and 80. In the future, must be the age of young people, they lead content, it is a trend.

second, see any problems, don’t see a problem from the view of the “old world”. more than ask yourself some questions. What is the future of the car? The car of the future should know where every day I go to where, need the car, with the car disappeared, also do not need the car is mine, and is therefore a gasoline car or electric vehicles is not important. Why do the car must have a driver? Google in the car driving (to be automatic), measure, and more of an accident driving less than man. Drops quickly certain is the ultimate call car model? Actually the most money is a driver, not to the driver that will save money. We can see that I bought A car now, 97.5% of cars are not from A to B, if A car from A to B, there is A waste. If we use Shared economic way to use cars, we wouldn’t have a traffic jam, because only need 2.5% of car is enough. Without the old thinking to think, to innovation.

third, Internet of things is more important than the mobile Internet revolution.

4, big data more understand you than yourself. in the United States, the businessman can accurately predict what consumers buy. A frequently quoted case, for example, a supermarket in the United States through the analysis of a 15-year-old girl shopping data, according to the results of the analysis to the female customers: to send the child to try things, the girl’s father was very angry, immediately complaints supermarkets, because her daughter is only 15 years old, how can buy pregnant women supplies. But the girl’s father soon found that she is pregnant. Sales and service in the future, will know who you are, where you live, what to buy in the past, used to what to buy, and hungry eat what today. Know more than you know what you want, the more understand you than yourself.

5, the last point, innovation practice more from small companies. Clayton Christensen (Clayton m. Christensen) book “the innovator’s dilemma” speak the truth. Many of the leading big companies, make a lot of money, but this is a dilemma, because will be eliminated. Leading companies in the past, in the Internet age, but in the era of mobile Internet has been eliminated. Because, the success of the past to let them look down upon a new things, what’s more, they will think that emerging influence the interests of the old things, more reluctant to upgrade. For innovation works, do we have no interest in big companies, the future belongs to young people, also belong to a small company.

five advantages of Chinese entrepreneurship

contrast sino-us entrepreneurship, data showed U.S. startup is valued at $1.8 trillion, the Chinese startup market value of $600 billion, added up to $300 billion to other companies in the world.

entrepreneurship in China meet the following five advantages:

first advantage, China mobile Internet has many advantages. four line of the popularization of the Internet in China urban and rural areas has the great potential of the mobile Internet. One is that account for only 48% of the total population of Internet users in China, the United States is 80%. Three line four cities of China, the past is not the Internet, but now they may skip the PC directly into the mobile Internet. There are more and more older people began to surf the Internet. Also has a great potential in the countryside. Second, China’s large and medium-sized cities populated, service level is not high, is sharing economy, digital entertainment and mobile Internet core areas of the best laboratories and biggest stage. This is far more than in the United States market development potential. Three is hardware manufacturing. China is a manufacturing power, but in the past in the process of manufacturing, did not earn a lot of money, profits are innovators to take away, becoming the world factory. But now more and more hardware startups are from China, the future of the brand advantage may not be the same. We hope that the traditional brand going abroad, but now crossed this step. Millet mobile phone sales in many countries, for example, the process can look forward to in many fields.

the second advantage, lower cost and more effective Chinese innovation. Chinese entrepreneurs through the lean startup experiment to focus on the market, product market, the rapid integration for specific compatibility, spend lots of resources to get the user after find out. Once caught the big market of user demand, must spend a lot of money, achieve market leader position, only the leader can obtain huge profits. This is the conventional digital market competition situation, so at this time of “burn money” is a must, as long as to avoid unnecessary “burn”. A taxi market in 2014, for example, the two front-runners drops and fast to burn 2.4 billion yuan.

the third advantage, Chinese entrepreneurs power stronger and diligent, its quality is more suitable for iterative development innovation. Chinese entrepreneurs tend to be first to do a simple product, continuous rolling, based on the study of the users above iterative update products. WeChat first version, for example, is very simple, but it every day in the iteration, so can be bigger, such development, supporting startups don’t necessarily need a talented CEO Steve jobs, as long as enough diligence can also. Domestic entrepreneurs as a founder, generally do the company’s core business for longer periods of time, more effective, from 20 to 50 years old, and almost never rest. Today’s iterative innovation of mobile Internet, the quality of Chinese entrepreneurs is particularly suited to such a development.

the fourth advantage, China’s digital technology enterprise “the tide” just the beginning. nullnullnullnullnull