BREAK THE VALUE CHAINHOW DATA TRANSFORM STRATEGY

Marina Felix Giovanni Miro KhushbuJulian

CONCLUSION

DATA WILL: BREAK VALUE CHAIN TRANSFORM STRATEGY

1986 1993 2000

2007

Analogue: 2.62-18.86x10 (B GB)

Digital: 0.02-276x10 (B GB)

18

18

source: NILF 2014: From Big Data to Big Inference

THE STRATEGY EDIFICE

Bruce Henderson:Increasing Returns

Michael Porter:Value Chain

source: https://www.bcgperspectives.com/content/interviews/future_strategy_business_unit_strategy_philip_evans_rethinking_strategy_age_digital_disruption/

“TO MAKE IT EASY FOR BUSINESS ANYWHERE”

Overseas Shopping

C2C Shopping

B2C Shopping

Cloud Computing

Discount

Transaction Data & Advertising source: Arthur Chang, Empowering SMEs Worldwide: the Alibaba Story, 2nd July 2008

TRADITIONAL VC MODELFirm Infrastructure

Human Resource

Technology

Procurement

Inbo

und

Operatio

ns

Outbo

unds

Mark

eting Sales

Custo

mer

ServicesValue

& Margin

Primary Activities

Supporting Activities

source: https://classes.soe.ucsc.edu/tim050/Fall12/Slides/CaseStudyAlibaba.pdf

THE THEORY

Idea Design Manu. PricingDevelop

Sales Tran- sactionStorage DeliveryServices

source: http://www.uml.org.cn/itnews/2015102301.asp?artid=1587

JD: OPEN INNOVATION

source: http://www.go-globe.com/blog/jingdong-in-numbers-statistics-and-trends-infographic/

VALUE CHAIN INTEGRATION

Against the monopoly of

: Open Source User—Producer

Consumer—Designer

CASH FLOW

PRODUCT FLOW

DATA FLOW

DIGITAL REVOLUTION

1990 2000 2012

200

406080

100120140

0

1

2

3

4

Web 1.0 Deconstruction

Web 2.0 User Creation

Britannica Sales (000)

WikipediaPages

MM

source: https://avenueduconseil.wordpress.com/2016/03/01/ted-how-data-will-transform-business/

HYPE CYCLE FOR TECH

source: http://www.gartner.com/newsroom/id/3114217

Innovation Trigger

Peak of

Inflated Expectations

Trough of

Disillusionment

Slope of

Enlightenment

Plateau of

Productivity

Quantum Computing

IoT Platform

Citizen Data Science

Micro Data Center

Internet of

ThingsMachine Learning

Hybrid Cloud Computing

Virtual Reality

Enterprise 3D Printing

More than 10 Y

2 - 5 Years

5 - 10 Years

ALIBABA VC ANALYSISCustomer Input

Gathering

Organizing

Selecting

Synthesizing

Distributing

Customer Output

Suppliers

Transaction

Buyers

Data/Info Flow

Alibaba Commerce Platform

Alibaba Payment Platform

Data/Cash Flow

Extension

Precision

RECOMMENDATION “TO MAKE IT EASY FOR BUSINESS ANYWHERE”

GLOBALIZATION

Business Globalization

Undeveloped Area Development

Cloud Computing

CONCLUSION

DATA WILL: BREAK VALUE CHAIN TRANSFORM STRATEGY

1986 1993 2000

2007

Analogue: 2.62-18.86x10 (B GB)

Digital: 0.02-276x10 (B GB)

18

18

source: NILF 2014: From Big Data to Big Inference

— T.D. Jakes

“Big Ideas come from forward thinking people who challenge the norm, think outside the box, and invent the world they see inside

rather than submitting to the limitations of current dilemmas.”