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- Business changes are always so rapid; before you understand one act, another takes the stage. Especially in this era of rampant concepts, you can't even tell whether experts are complaining or diagnosing. Shocking business models are tossed around like out-of-bounds balls in the World Cup. New entrepreneurs who stepped into e-commerce from the start are fine—barefoot and not afraid of shoes, they follow their own rhythm and take a few steps first. But traditional entrepreneurs, old and sluggish, are panicking: if they dabble in e-commerce, they either don't understand it or misjudge it; if they don't, peers and even inexplicable cross-industry experts may use strange tactics to crush them on the track. This dilemma is truly embarrassing.
- Traditional enterprises transforming to e-commerce is becoming a social topic because not only enterprises but also individuals and institutions are facing the same transformation confusion. Following the old path, business becomes difficult because downstream consumption decisions are changing—not only purchasing scenarios but also product demands are vastly different from before. It must be said that technological innovation has driven the continuous upgrading of consumer habits, and the rise of the post-80s and post-90s new consumer groups makes the original simple and crude sales models feel ashamed. Whether it's transformation or burning bridges, the traditional enterprise playbook needs to be re-examined.
- Can transformation save the future of a traditional enterprise? In my original understanding, a traditional enterprise transforming to e-commerce would generally follow three steps: first, e-commerce in communication; second, e-commerce in sales channels; and finally, e-commerce in organizational structure. Communication solves external traffic, sales solves conversion rates, and organizational structure is a revolutionary adjustment to cater to the external market environment. This logic holds, but implementing it thoroughly is extremely difficult. Moreover, transformation is not just about three simple modules; it involves the deep optimization of the entire company's operational processes by the internet. This massive project is no less than a second startup, so talking about transformation still seems too light.
- E-commerce will not save a decaying traditional enterprise; it may even accelerate its demise. The internet is like a gust of wind, and a traditional enterprise is like a ship. If the ship is sturdy and light, has sails hoisted, a clear course, and a captain who understands the times, then the internet will help it speed forward to the other shore. Conversely, if it's a broken ship, and worse, the captain is a bit foolish, the target is unclear, and the sails are forgotten, then when the internet hurricane comes, the waves it stirs will capsize you first!
- Some experts say that what's scary is not internet people understanding tradition, but traditional people mastering internet tools. The implication is that e-commerce is just a tool; once you learn to wield it, you can go to battle. Is that really so? Internet tools are simple; if you read the instructions, you can master them in two months. For example, knives are sold everywhere, and knife manuals are free, but can you kill your enemies with them? Then martial arts schools open their doors and teach you secret knife techniques. After learning, you can easily take down Wu Lao'er, but facing a strong enemy, you're still crushed instantly. Learning a few tricks and claiming transformation success in the business world—isn't that naive?
- The fatal point of traditional transformation to e-commerce is indeed a mindset issue. I'm bringing up the infamous term "internet thinking" again. Setting aside the unscrupulous interpretations by various gurus, I want to explain internet thinking as: business democratization. Traditional enterprises, due to their large size and long upstream and downstream chains, must rely on control to improve operational efficiency, so you see long hierarchies in management structures. Now it's different; if anyone still makes decisions with that mindset, the rapidly changing market will show its ruthless side. Business democratization is too hard to implement. Asking a boss accustomed to traditional business to burn bridges and embrace business democratization is like talking about a fool's dream, but young entrepreneurs can do it because it's in their bones.
- Some smart traditional enterprises abandon using internet tools to carve their existing product structures; instead, they choose to start anew with internal incubation. Their transformation is no longer a simple business upgrade but an enrichment of business models. Mobile internet brings infinite convenience to resource integration, including significantly lowering trial-and-error costs. So, rather than racking their brains over existing businesses, they might as well start a new venture. Innovation is the upgraded version of transformation.
- The times are like a rolling torrent; no matter who you are, you're destined to be just a wave. The lifespan of enterprises is washed by each change; some surge forward with arrows flying, while others, due to confusion and weakness, are swept into the abyss of no return. It's fate. So-called transformation is likely a metamorphosis for the enterprise, a process full of cruelty, with such a low success rate that many efforts become futile. So, please stop stubbornly thinking you're transforming; in fact, you're redeeming the enterprise's life!
- E-commerce is a lifestyle. Traditional enterprises transforming to e-commerce is about making business more life-like, giving your cold products some warmth, making the relationship between you and customers not purely transactional, and making you understand that users are not purely external; they even constitute your internal reference. Moreover, with e-commerce, you don't even need to make money from users; products are just a medium or carrier. When you have a massive user base, your profits can come directly from the capital market, as investors value your business expectations more. This is not just transformation; it's a disruption of the business model.
- Brands have an age, and their lifespan depends on meeting users' new needs. We say a brand is old because its products no longer meet the new demands of new users. Every transformation of a traditional enterprise is, strictly speaking, a growth. Especially mobile e-commerce, which is the normal play for post-85s and even post-90s, so it's suggested that in transformation, give more authority to these new generations. They are the true protagonists of the mobile internet era; young people understand young people better. They are already formed, let alone transformation.
Source: Chen Caigen
