Empower Your Business in

The Digital Age

Chandee Zhuang
2024.10
Logic of Digital Economy
The essence of the digital revolution lies
in the information revolution
• Deconstruct information to the bit level, and then reconstruct it at all
conceivable levels.
• Information exchange in all economic activities is digitized.

Alan Turing, 1912-1954 Claude Elwood Shannon, 1912-2001

(Created Turing test and Turing machine (In 1948, Shannon published an epoch-
model, these two items laid the foundation making paper-the mathematical principles
of artificial intelligence and the soul of communication, which laid the
architecture of modern computers.) foundation of modern information theory.)
• Before the digital revolution, we start
with information
• Exchange of information provide the
foundation of all economic activities
• Now information is deconstrued into
Data

• Why so different?
The DIKW model
Buying a Coffee
1.Identifying Needs: You, the consumer, have a need for a caffeinated
beverage. The café owner has a need to sell coffee to make a profit.
2.Communicating Wants: You walk into the café and place an order for a
specific type of coffee. You're communicating your want to the barista.
3.Exchanging Information About Resources: The barista knows the café has
the necessary resources (coffee beans, milk, water, etc.) to fulfill your order.
4.Pricing and Value: The price of the coffee is communicated to you. You
evaluate if the price aligns with the value you place on the coffee.
5.Transaction: You pay for the coffee, exchanging money (a form of
information about value) for the coffee.
6.Consumption: You consume the coffee, satisfying your need and providing
feedback to the café about the quality of their product.
Buying a coffee at cafe Buying coffee on mobile
 ◼ Henry guo ◼ Rabbi Guo
◼ Change ordinary ◼ Ancient soul
into extraordinary ◼ Thousands years
◼ Business school under the sun
◼ Executive mentor ◼ Joan Baez
Segmentation profile and coach ◼ Deep sorrow
◼ Gender
◼ Age
◼ Income
◼ Characteristics
◼ Motive to buy

Mass profiles Front end

Holographic
Vague market segmentation
◼
◼ Vague and extensive target
consumers
Spontaneous
consumer segmentation
◼
◼ We organization
Vague segmentation ◼ Participate C2B
Business Logics in The Digital Age
From B2C to C2B and C2M
It is now possible for ordinary consumers to have their voices heard by merchants.
Those who can effectively address the consumers' problems and meet their demands
will undoubtedly succeed. Consequently, the business logic shifts from the traditional
B2C model to C2B, and even to C2M.
Customer-centricity becomes the
paramount principle in the digital age
Formulate a customer-centric
strategy
A complete description of the strategy
with customer value at its core
Who: Who is What: What How: Through
your customer? unique what pathway
• Who must not be? customer value is it provided?
• Who must be?
do you provide? • The fundamental
• What is customer logic of a
• Who is not my business model.
customer now? value?
But they might be • Is it the drill bit or • Sustainability?
in the future? Or the hole?
perhaps I don't • Does it possess
know yet? uniqueness?
Probing your customer value
About customer About customer value
• Is it a genuine customer need? • Where is the uniqueness?
• What pain point (problem) does this unique value
• Is the customer base large enough? solve for the customer?
• Does it persist over time? Does it increase or • Does this pain point really hurt? Is it really solved?
decrease? • What is the cost of the solution? (Your cost and the
client's cost)
• Can the customer feel this uniqueness?

• How does this uniqueness continue to be

maintained?
• Is it unique compared to competitors? Why can't
competitors achieve the same?
• Does it have a moat? (Is it deep? Is it wide?)

• Is the customer value you provide more

preventive or motivational in nature?
Case Study: Taobao vs eBay

Who What How

Affordable, safe, and Establishing the largest
convenient online consumer community
with e-commerce at its core.
preventive or motivational

Platform + Community
eBay Netizens Consumers
Enjoyable, low threshold
Future outlook

preventive or motivational

Strategy and tactics

Case Study: Alipay Express Payment
Case Study: Saturnbird Coffee
Saturnbird Coffee primarily targets young
consumers, particularly those born in the
1990s and early 2000s, who are looking
for convenience, quality, and a modern
lifestyle.

This demographic is characterized by a fast-

paced life and a desire for easily accessible yet
high-quality coffee options that fit into their
daily routines.

Saturnbird‘s innovative approach to instant

coffee meets these needs by offering products
that dissolve quickly in various liquids,
allowing consumers to enjoy quality coffee in
just three seconds.
Fully utilize the power of data to
understand your customer
 Case Study: REST Duvet

REST has ascended to become one of the top 10 All starts from complaints.
bedding brands in North America within just two
years, boasting an annual sales revenue exceeding
70 million USD.
AI driven eCommerce

Decisions are undoubtedly made based on

specific scenarios. Therefore, understanding
who your users are, the scenarios they are in,
and the challenges they face is crucial. Based
on these scenarios, crafting a comprehensive
solution and providing a complete service is
the key to a successful intelligent
transformation.

Zeng Ming, Former Alibaba Chief Strategic Officer

Smart organization in the digital age
The boundaries of enterprises are digitally
changed, from the Coase theorem

• If there is no information cost and

coordination cost, both inside and outside the
enterprise are the same.

• The boundary of the enterprise depends on

the size of the cost.
Agile Team and Entrepreneurial Culture
Case: REST is a brand built purely on Internet
The Framework of Strategy Formulation in The
Digital Age

Mission
Vision • Focus on strategy as the center of the
Values organization

• Guide the whole organization through

mission, vision & values
Strategy
• Build the organization and performance
management systems to support
Organization Performance strategic implementation
& Talent Management
Thank you!