Article from WeChat public account:Guotai Junan Securities Research (ID: gtjaresearch), author: monarch computer team title figure from: Oriental IC
On the evening of November 13, Alibaba released a Hong Kong listing prospectus.
Ali and Tencent may have never thought about it. Their encounter at the Hong Kong Stock Exchange is in such a situation.
In every scene of China’s Internet development, Tencent and Ali’s voices may have similarities and differences, but always the most resounding one: the payment field is indistinguishable, and the cloud service is on the limelight, but in the social scene. WeChat dominates the gimmick…
After the C-side mobile Internet market is increasingly saturated, the next big battle for the giants is to point to the office scene of To B.
The Guotai Junan computer team, through an in-depth analysis of Tencent’s corporate WeChat, tried to understand the current industry dynamics in China’s SaaS service sector and find out the next possibility of this social and gaming giant in the To B field.
Enterprise WeChat: It’s good to have a cool tree under the tree
The self-media focusing on the urban youth life has taken the WeChat work group out of the 3rd and 5th, and it has become an indisputable fact that WeChat has been “wrapped” into the work scene.
Because of this, everyone knows that the WeChat front office scene is only a matter of time.
So, on April 18, 2016, the company WeChat came.
Responsibility and simplicity may be something that is engraved in the WeChat gene. The company’s WeChat can only support the communication functions such as corporate address book, public telephone, and simple management functions such as announcements and attendance. Even the initial test customer base is limited to QQ enterprise email administrators.p>
Enterprise WeChat chooses to start with Tencent’s best “gateway”, which is simple native tools + open and connected platform.
1. Native IM+Light OA
In addition to the simple interface of WeChat, Enterprise WeChat, which is created for the office scene, adds many useful features to solve specific problems, such as corporate address book – to obtain accurate colleague information after employees join the company, and You can start a conversation without adding a friend.
In a large, complex enterprise, this feature helps employees get rid of the cumbersome traditional contacts and saves time managing friends.
The
receipt message function can display the read and unread status of the message, and the project publisher no longer needs to overwhelm the “received” to accurately grasp the information access situation.
In addition, Enterprise WeChat also inherits the basic office scene functions such as multi-person video conversation, work email, and external business card, which helps internal communication.
But this is not enough.
In the face of complex and demanding processes and administrative approval scenarios, the company’s WeChat team does not pursue the development of a large and comprehensive application through the ability to superimpose, but chooses the most common and most uncommon in daily office scenarios. The lack of, and most need to optimize, the design of the corresponding solution.
All staff/directed announcements: Solved the problem of long delivery cycle, information distortion and low information acceptance rate brought by traditional step-by-step release system, which makes the information transmission mechanism inside the organization more flat. .
Attendance Management: Enterprise WeChat can achieve the same function of the punch card through the punching of the location information. In addition, the company’s WeChat system can also be flexibly adjusted in combination with the schedule and out-of-office approvals to automatically generate attendance reports.
Online Approval: In a large-volume, complex organizational structure, daily processes such as approvals often take up a lot of time, allowing employees to rush around between operations and approvals. Online approval platforms that support custom approval and reward templates greatly reduce the time required for such day-to-day transactions.
But these features, nailed, and even more mature than the company WeChat, so can not let the latter stand out.
2. Third-party applications: business vertical + industry vertical
For the gaps in deep demand in different positions and different industries, the WeChat selection of enterprises is provided by IS.
Since its initial establishment, Enterprise WeChat has not positioned itself as a versatile software that relies on functional overlays, but rather a platform for connecting companies with professional SaaS services.
Many ISVs have been cultivating in these areas for many years and have achieved some commercial success. They are more focused and understand the operational logic of this field.
After seeing this, Enterprise WeChat voluntarily gave up the big and comprehensive idea, and turned to its platform operation with its huge user base and brand advantage, and cooperated with SaaS service providers to develop applications to fill these gaps.
The extended application provided by ISV effectively extends the capabilities of Enterprise WeChat. Source: Enterprise WeChat official website
For deep demand, it can often be disassembled from two dimensions: one is the business dimension and the other is the industry dimension.
In the business dimension, different positions and lines of business in the same enterprise often require different management systems. For example, traditional CRM, HCM and other vendors specialize in providing customer management or human resource management services.
In the industry dimension, each industry has its own characteristics, For example, the medical industry needs to manage the patient’s medical records and prescriptions, and the education industry needs to open up the “home-school interconnection” channel.
For these special needs, Enterprise WeChat has proposed third-party applications and industry solutions to match the needs of enterprises by establishing an application market.
For different positions, companiesWeChat also provides different services in the application market, such as customer relationship maintenance systems, cultural construction systems, human resources systems, and supply chain management systems.
With the help of a large number of third-party SaaS providers, the application market of enterprise WeChat is rapidly enriched.
As of October 2019, there are 15,000 third-party applications that are spontaneously accessed in the application market, of which 4,300 qualified applications are already in the online application market, and 112 applications have achieved excellent performance and good reputation. It has become a key recommendation application for Enterprise WeChat, covering 12 common categories.
The Enterprise WeChat team has a set of quality control principles for third-party applications, including high frequency, high value and complementarity.
High frequency: refers to the high frequency of use and wide range of use. The main purpose of the application market is to increase user stickiness, so some software that users use at high frequencies is needed to attract users. If a product is used only once a month, only a few people in the company are using it, which is not in line with the company’s WeChat characteristics.
High value: The company’s WeChat will focus more on applications that are more professional, valuable, and workable. For some simple free apps, Enterprise WeChat can be introduced, but it won’t be the recommended app.
Complementarity: means that the application should serve the entire enterprise WeChat ecosystem and fill in the gaps in the original function. These principles have filtered out unqualified applications and retained the best tools and solutions for business users.
It is also based on strict quality control requirements. Enterprise WeChat has recently started to export complete sets of industry solutions:
In the development process, the company WeChat and ISV conduct joint research and development, ISV provides research and development ideas and technology, and Enterprise WeChat provides guidance and implementation platform.
As of October 2019, there were more than 500 registered industry ISVs in the industry, of which more than 200 industry solutions have been audited and penetrated into more than 20 industries.
3. Hardware and software integration
Enterprise WeChat also opened hardware connection ports, software application capabilities and SDKs for third-party hardware manufacturers, and launched smart attendance machines, smart printers, smart access control, smart routers, smart projection screens, smart remote video devices, and smart whiteboards. Hardware product system.
Employees can connect to these devices through Enterprise WeChat, and they can easily operate on mobile phones and integrate the entire office process on Enterprise WeChat. Through the smart office solution of software and hardware integration, Enterprise WeChat can provide one-stop service, and promote the enterprise office in a humanized and intelligent direction.
With the popularity of connected office equipment and the deployment of 5G networks, the office ecosystem of Enterprise WeChat has gradually formed a closed loop, and interoperability between products will become possible, which will ultimately benefit office efficiency.
WeChat traffic is king, but traffic is dead
In 2018, Ma Huateng proposed that Tencent must become a “connector” that connects people, connects people and applications, connects people and devices.
No doubt, Enterprise WeChat isThis connector is the core component in the To B scene.
After opening up with Welsh with 1.133 billion users, Enterprise WeChat is no longer used as internal office management, but also realizes seamless integration from inside to outside.
In the competition of SaaS services, products and technologies are tending to be homogenized. There is no way to achieve absolute advantage. Only by winning the competition in the relationship chain can we break through.
And Enterprise WeChat, is gradually gaining the upper hand in the relationship chain competition with the help of WeChat’s traffic advantage.
On the one hand, Enterprise WeChat allows every employee to become the contact point for the company’s external customers. Employees can use the WeChat to directly add the customer’s WeChat, and the customer’s WeChat will show the employee’s approved corporate identity. Not a WeChat nickname that is easily forged. With the endorsement of the company, it is easier to gain the trust of customers.
On the other hand, Enterprise WeChat helps companies build social relationships with business identity, and external communication and internal management work together.
In the past, employees added customer friends through private WeChat. Once employees leave, these customers will be taken away. The WeChat API of the enterprise has opened up the channel with the CRM system. With the company WeChat, even if the employee leaves the company, the friends added by the company WeChat will remain in the enterprise database, and other employees can be assigned to connect in the future.
Traffic allows WeChat to get a chance to turn over in the absence of being “stuck” in a private social scene.
But relying on traffic alone is obviously not enough.
In order to integrate the entire SaaS market into its own ecology, Enterprise WeChat has chosen a different strategy from its peers.
On the one hand, Enterprise WeChat relies on extremely low traffic costs and does not adopt the traditional SaaS charging model. On the other hand, Enterprise WeChat chooses to attract third-party ISVs through the application market.
In the past model, the major manufacturers were each in the subdivision of the track, and there was no way to achieve synergy. The promotion also relied on their respective sales teams and channels, and the customer acquisition cost was high and the operation efficiency was low.
For enterprises, different needs often require different manufacturers to meet different products, and the linkage between different products is poor, it is difficult to truly achieve true integrated management.
The application market of Enterprise WeChat has introduced a variety of different positions in different industries, and has sorted out the current relatively scattered market resources and needs.Seeking, truly realize one-stop service.
Enterprise WeChat connects to the upstream and downstream to form a complete ecological data source: Enterprise WeChat Channel Open Day
Relying on Tencent’s status and WeChat’s own huge user base, Enterprise WeChat integrates all aspects of the entire industry chain into its own ecology to enjoy the advantages brought by the overall effect.
At the same time, Enterprise WeChat also achieved the positive interaction of the entire industry chain by coordinating upstream and downstream enterprises, improving the quality of supply, and promoting the restructuring of the industry.
On April 19, 2019, Enterprise WeChat launched a commercial version based on the completely free SaaS application market. The main profit model is that third-party software and industry solutions are sold through the platform, and the actual sales price is 10%. The draw.
In the second month of commercialization, the application market realized 10 million monthly flows, indicating that the current number of customers and payment habits of WeChat have met the requirements of commercial realization, and will continue to generate revenue for WeChat in the future. .
What kind of SaaS giant China is looking forward to
The US SaaS started earlier, with market capitalizations of several major giants including Oracle, SAP and Salesforce totaling approximately $450 billion.
In the current Chinese market, the market value of traditional head manufacturers, including HKUST Xunfei and UFIDA, has not exceeded $20 billion.
However, China’s SaaS market space can be large. According to iResearch’s report, the size of China’s enterprise-level SaaS market in 2018 is 24.35 billion. It is estimated that the overall market size will reach 65.42 billion yuan by 2021.
It is estimated that the overall size of the SaaS market will reach 65.42 billion yuan in 2021. Source: iResearch, Guotai Junan Securities Research
This has also become the reason for Tencent Ali’s To C-end giants to enter.
This type of business has a different approach than traditional SaaS vendors. They are not eager to sink to professional tracks such as ERP and CRM, and often use basic applications such as IM and OA as entry points to take advantage of huge traffic advantages and brand effects to rapidly expand the market.
After having a certain market position, these giants often introduce the capabilities of traditional manufacturers in the form of partners to make up for their own product gaps, and finally build a platform product that can cover the entire market.
According to the “Industry Development White Paper” published by Enterprise WeChat, the development process of enterprise informatization can be divided into four stages: enterprise-level informationization, supply chain-level informationization, platform-level informationization and all things interconnection.
Traditional SaaS vendors stay in the first two phases, focusing only on internal management or on upstream and downstream and customer relationships.
Enterprise WeChat breaks the traditional operational barriers and builds an interactive network that forms a variety of digital elements, realizing the reconstruction of platform information and the march towards the era of universal Internet.
The market competition faced by Enterprise WeChat comes first from traditional IM and OA vendors with overlapping business, such as Kingdee, Fanwei, Today Target, Mingdao and so on. These manufacturers have been immersed in the industry for many years, forming their own brand and fixed customer base.
In addition, there are some up-and-coming talents with the same background, such as Ali’s nails and byte-beating flying books, which is the biggest challenge for Enterprise WeChat.
The key is that there are no obvious technical barriers in the SaaS industry, and the products of various vendors tend to be homogenized in the competition.
IeMaking a vendor take the lead in developing new capabilities will also be quickly replicated by other vendors in the version iterations, so the position of such vendors in the industry is not unchallengable.
Enterprise WeChat has the huge financial support of Tencent and the brand effect and traffic brought by WeChat. It is not difficult to come up later.
However, Enterprise WeChat chose a more inclusive win-win strategy, and absorbed the products of these vendors through the application market to realize the construction of the entire ecosystem.
As a result, head SaaS vendors, including Kingdee and Fanwei, will benefit from the development dividend of WeChat Eco in B.
It seems that the piece of Tencent’s falling on To B is slowly becoming the crowning touch.
The above content is selected from the research report issued by Guotai Junan Securities, “Computer: Enterprise WeChat – Open B and C, Connect Work and Life” and public information For specific analysis content (including risk tips, etc.) please refer to the full report. In the event of any discrepancy in the abstraction of the report, the full version of the report shall prevail.
Article from WeChat public account:Guotai Junan Securities Research (ID: gtjaresearch), author: monarch computer team