Continue to survive, operational innovation is particularly important

Editor’s note: This article comes from the WeChat public account “Chad University——————————————————— Chen Guohuan.

Teacher:Chen Guohuan

The original market/original subnet COO

We generally hear about technological innovation and product innovation, and few mention operational innovation. In fact, today, more and more companies have realized that technological innovation and product innovation are not enough. Operational innovation is often more important.

Let’s take a look at what kind of background, why do you want to start doing business innovations:

In the past two years, the entire economy has entered a period of downward adjustment. Many companies are not very optimistic. Many economists are not very optimistic. They generally believe that this economic cycle adjustment is less than three to five years, and more than five to ten years.

In such a long economic adjustment cycle, if a company’s operations are still carried out in accordance with the operating conditions of the original economically better situation, the entire company will face more difficult situations, and even shock and death. .

Second, from the perspective of the times,The C-side dividend in the Internet industry has been basically exhausted. There are some C-side bonuses on the track with only a few sub-branches.

Companies are entering a deep C-side deep-sea work, including start-ups, as well as developing very mature BAT companies. Competition is getting more and more into the deep water area. An old operation method is not very suitable, so it is necessary to carry out operational innovation, make breakthroughs in operational innovation, and bring new impetus to the sustainable development and growth of its own enterprises.

Third, To B rises. Tencent, Ali, and Baidu all announced their entry into the field of B. Everyone began a strategic shift. Many startups have rushed into the To B space to start a business. Industrial Internet is also emerging, because the industrial Internet is more of a B-side enterprise. Therefore, such companies tend to be more focused on operations.

89% of businesses lose this bonus when they die
 

Good operation, bad operation

So what is the operation? How to understand the operation?

Operation is a way in which people and resources can achieve strategic intent through some form of organization. The “1” or core of operations is the maximization of the efficiency of capital use.

What are the characteristics of a good operation?

Not a point, not a local one, but a systematic project. It’s a systematic, globalized operation that combines many factors, including finance, technology, products, marketing, and human resources, to pinch together and form a complete system for effective collaboration. Produce the highest performance.

What is poor operation?

First look at the death analysis of some startups in the world. This is the data of CB Insight, a world-renowned venture capital research institution:

89% of companies lost this point when the dividends disappeared

How did these companies die? Or is the cash flow cut off, or the team is extremely mismatched, or the competitiveness is too bad, if the price and cost are high, it will die. The failure of these companies is not due to insufficient product innovation, not because of technological innovation, but because of operational mismatches, which is as high as 89%.

Look at the domestic company. In the last two years, there have been many unicorns. How did the unicorn get into trouble?

There was a lot of companies rushing in the vents of unmanned shelves last year. As a head company, its strategy is to quickly fight and quickly expand, because the competition threshold is very low, put a shelf.

but point