Shen: see new business rules from the five laws of physics

cloud network hunting note: science and technology development in the field of present typical “black swan effect”, “black swan” events of disruptive to beyond measure the impact of the changing environment of enterprise development, since 1975 since the advent of the world’s first personal computer almost every 10 years there will be a giant “black swan”, caused huge impact for the industry, and even cause shuffling: 1985 routers, birth of the Internet, 2005 was born in 1995 in smartphones, some giant end, some industry emerging rapid rise. The 2015 “black swans” and what will be?

2015 BBS yabuli Chinese entrepreneurs convention held in heilongjiang yabuli on February 28, this annual meeting in order to “market, the rule of law and business innovation” as the theme. Shen as China yabuli entrepreneurs BBS presidency, in this morning “shen time” in the BBS for the wonderful sharing. The laws of physics and the company strategy will sparks of how? The following is a wonderful view.

thanks for yabuli entrepreneurs BBS, an influential platform will be hundreds of outstanding Chinese entrepreneurs group together. Today, let us work together to think about a problem, how can a company long-term maintain leading position? We know that it is extremely difficult and challenging, especially with the rapid development of today’s science and technology innovation and iterative, whether there is some commercial law can help us to clarify thoughts, cobwebs, always maintain excellent competitive?

in the first place, let the past forty or fifty years of historical figures, behind these data contain the information of thought-provoking:

let’s review the past 40 years in the transition of science and technology innovation. science and technology development in the field of present typical effect of “black swans” , subversive to “black swan” events beyond measure the impact of the changing environment of enterprise development, since 1975 since the advent of the world’s first personal computer almost every 10 years there will be a giant “black swan”, caused huge impact for the industry, and even cause shuffling: 1985 routers, birth of the Internet, 2005 was born in 1995 in smartphones, some giant end, some industry emerging rapid rise. The 2015 “black swans” and what will be?

let’s review the 30 dow components of the past 50 years, in 1960 we see one on the list include joint chemical company, Alcoa, the us can company, international paper company, Eastman kodak, and so on, and now only four companies are still in the column – ge, dupont, united technologies, procter & gamble, the percentage is only 13%.

to review the past more than 40 years of “fortune 1000” list, almost every 10 years, the increasing speed and change: from 1973 to 1983, 35% of newly listed companies; Between 1983 and 1993, that figure is 45%; Between 1993 and 2003, 60% of newly listed companies; Between 2003 and 2013, more than 70% is newly listed company.

under the rapid development of science and technology, every entrepreneur facing unprecedented challenge, want to keep the invincible position is one of the most dangerous behavior refused to change . Fortunately, danger and opportunity coexist, once determined to set out to change, change rate is likely to be a J shaped curve development, growth rate will gradually increase over time, from cost optimization, performance optimization, optimization efficiency gradually transition to the optimization of change. Maybe we can through several basic laws of physics in the commercial development and the rule of change:

friction force, the greater the growth, the more difficult
The more difficult the friction, the greater the growth (Newton’s first law). Object has a tendency to maintain the movement of the movement. Still the object has a tendency to remain static. Unless the reaction force it to change that state by other objects.
Human nature is aversion to change, tend to rely on existing experience, consciously resist what they don’t adapt. Pursuit of innovation and change, however, will need to refrain from the inherent weakness, every entrepreneur needs to encourage the risk of enterprise culture, motivate staff to quickly in the stagnation of trial and error, have the courage to discard the working process, gradually establish a decentralized team, good at authorized to establish innovation from bottom to top.

began downsizing, stay lean
Began to streamline, stay lean (Newton’s second law, F=MAIn the process of enterprise development, remember, always keep a posture is lightsome. Reason is very simple, as a force for almost a large mass of object does not work, but it can easily promote the quality of small objects, and make it speed up. Excellent entrepreneur must be alert trap scale growth.
Company redundancy phenomenon can be prevented, which shows early signs include: enterprise began to emphasize the physical conditions and facilities, pay attention to form rather than the content, the expansion of the management staff, do not emphasize quantitative indicators, that cannot be quantified. Entrepreneurs need to always focus on the really important indicators, including customers, orders, revenue, gross profit, turnover, profitability, cash flow, make the real Numbers.

development under pressure
Development under pressure (ideal gas law, PV=nrT). Ideal gas in the equilibrium state, the pressure, volume, amount of substance and the relationships between the temperature of equation of state
Between pressure, volume, and temperature, there is a balance. It’s like in the process of enterprise fast development, the cost of capital, development speed limit, the size of the market, there are also a best balance between unit benefit. Enterprise development must stay the phases of the product of concentration and focus in the field of, don’t blind expansion.

make full use of your flexibility
Make full use of your flexibility (mechanical lever rule, M1, M2 x x a=b)
Start-ups need to seize every opportunity to gain share, and the elephant dance. For a large company, it is likely to say, its main rival is other big companies. But do not use up actually like that, by using leveraged, asymmetric start-ups can, they may be big company real rivals. Startup’s advantage is striking, referred to as the “5 s” include: Stealth, concealment, Speed, Speed, Smarts, talent, Svelteness, streamline, and Simplicity – simple. The flexibility to be reckoned with, and the great potential of subversive industry giant.

entropy increase principle
Entropy increase principle, the second law of thermodynamics: entropy (unordered index) increases with time
Google, for example, the product of its employees “disorderly” time including GMAIL, NEWS, outstanding products such as Google NOW. Another instance is about disordered increase, now, with micro letter the rapid popularity of new media such as weibo, information dissemination characteristics of disordering increasingly clear, the whole media ecology in the rapid development in the direction of social media. In this case, a company of any content of a positive or negative message will achieve exponential diffusion velocity under the social media. The interaction between businesses and their customers with more and more close, especially for the mass consumer groups of enterprises, customers deciding the success or failure of enterprise brand. Any enterprise, therefore, need to continuously foster new perspective in social media environment, sales, public relations, customer service, business development, and other functions need to integrate social marketing to help companies to raise their visibility and reputation, expand the industry influence.

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