Chapter 842 The Threat of MSN
Another point is that Penguin wants to become a ‘virtual telecommunications operator’. In China, facing the powerful telecommunications giants, there is basically no chance.
But it’s different overseas.
You can learn from Skype on this point.
And don’t always focus on China. There are many opportunities overseas. You must be brave enough to go out and compete with Internet companies from around the world, especially the United States.
Don't be afraid of them.
To put it crudely, Americans carry one head on two shoulders, and Americans are not much smarter than us.
And if you figure out the foreign routines, you will find that doing business with them is actually easier than at home.
If you encounter any difficulties in the process, you can call me directly.
I can help you in finance, politics and business. "Xu Liang continued.
There was a hint of expectation on everyone's faces.
In the past year, their overseas development has gone very smoothly with the help of Xu Liang.
It went smoothly beyond imagination.
So, it is natural to have more expectations for the future.
Especially the Japanese and Korean markets, which are obviously more "money scene".
Being a world-class Internet giant and a global technology giant sounds like a sense of accomplishment.
“Another point is that the current management structure of Penguin was implemented in 2002. In recent years, Penguin’s business has grown rapidly. Although the company’s management structure has been continuously patched, it is still difficult to fundamentally solve the problem.< br>
In particular, there are more and more front-end projects, and the back-end research and development cannot keep up. Not only has it become a mess, it has also delayed the development of the front-end business.
I did a simple calculation. Huaxia. Including overseas, Penguin currently has more than 60 important product lines, each of which has substantial requirements for technology.
But after it is submitted to the R&D line, it is almost impossible to arrange it, which seriously affects the company's development.
Therefore, in addition to establishing its own business on the mobile terminal, the most important thing for Penguin at this stage is the reform of its management structure.
My opinion is that Penguin's management structure can be divided into nine sequences,
consisting of six business departments and three service support departments.
BO: Wireless Business Department,
under the Wireless Product Department, including Super QQ and Mobile QQ;
As well as the Mobile Communications Department, Telecom Business Department and local offices, they are responsible for business related to telecom operators.
In overseas regions, you can try to develop a ‘virtual telecommunications operator’ business.
I want to say one thing here: don’t be too rigid in doing business.
The east is not bright and the west is bright.
Changing places, maybe we can create miracles.
It is necessary to encourage the management of major subsidiaries, fully delegate power to them, and stimulate their creativity. "
After a few more digressions, Xu Liang took it back and continued.
"B1: Community Product Department,
It has jurisdiction over the Internet R&D Department and QQ Space. , responsible for QQ and related businesses.
B2: Interactive Entertainment Division,
It has jurisdiction over the Interactive Entertainment R&D Department, Interactive Entertainment Operations Department, and Channel Marketing Department, and is responsible for online games, digital music, and Penguin Video businesses.
B3: Online Media Business Department,
It has the website department, advertising sales department, and is responsible for the portal website business.
B4: Japan and South Korea Business Department,
It has two subsidiaries in South Korea and Japan to meet the business needs and R&D support of Japanese and Korean companies.
B5: Nanyang Business Department,
has two subsidiaries in Indonesia and Peninsula, meeting the business needs and R&D support of the eleven Southeast Asian countries.
The above are the six major business departments.
The service department is:
Operations Support Department,
It has the Operation Support Department, System Architecture Department, Security Center, Management Engineering Department, R&D Management Department and Customer Service Department, responsible for server, database and security business.
Platform R&D Department,
It has jurisdiction over the Instant Messaging Product Department, Pengcheng R&D Center, Yangcheng R&D Center, as well as the Tokyo R&D Center and Singapore R&D Center under construction, responsible for technology research and development.
Functional departments, administration, personnel, finance, investor relations, etc.
Each business division takes product as a unit, develops projects, and divides labor into operations.
Brothers climb mountains and work hard individually.
This is also the essence of Penguin's "horse racing system". It is clear at a glance who is doing well.
There is no need to complain about the lack of support from R&D, except for things, or the progress can't be kept up, and blaming each other.
Okay, that’s all I’ll say.
Boney, I hope your management can think about it carefully. ”
Bonima nodded. As Penguin's CEO, he knew Penguin best and could keenly feel that Xu Liang's suggestions for Penguin were very pertinent.
More importantly, Xu Liang’s suggestions to Penguin in the past few years have achieved very good results after implementation.
This undoubtedly enhances the trust between both parties.
"Director Xu, we will study your suggestions carefully and strive to come up with a mature plan as soon as possible."
Xu Liang nodded and was about to continue.
"Director Xu, I have another question here that I would like to ask your opinion on?" Bonima said suddenly.
“You said.”
“Half a month ago, MSN officially released the Chinese version.
In just half a month, MSN users have changed from the previous The number has increased from 10.75 million to 25.29 million, and is still growing rapidly.
Their share of the Chinese instant messaging market has exceeded 15%, and they are the second largest instant messaging company after Penguin. It's a big threat to us." Looking at his solemn expression, Xu Liang smiled.
“After the launch of the Chinese version of MSN, the domestic Internet market has been in a panic of ‘Wolf is coming’. In fact, it is completely unnecessary.
These users added by MSN are all business users, which are not at all It cannot threaten the foundation of Penguin."
After a pause, Xu Liang asked with a smile.
“Boni, do you know why I invested in you instead of letting Hongmeng create an instant messaging company?”
Bonima shook his head.
He discussed this issue with Zeng Liqing in private.
Boss Xu is not short of money, talent, or experience.
Why do you have to invest in Penguin, even at the cost of giving up management rights?
“It’s actually very simple. The key to the community track is the ‘circle of connections’. When your classmates, your friends, and even your parents all use QQ, QQ is equivalent to your social circle.
Unless they are ascetics who live in seclusion, no one can exist alone without their own social circle.
So, whether it is NetEase Bubble or MSN, no matter how advanced their technology is and how good their user experience is, they cannot defeat QQ’s social network with 300 million users.
This is the real magic weapon for QQ.
It is also the real strategic core of the SNS website.
It is because I see this that I keep investing in Penguin instead of developing it myself.
Otherwise it is just a waste of effort.
In addition to this fundamental reason, there are several objective reasons that determined the failure of MSN.
First, the command system is disordered.
In the Chinese market, MSN still does not have a person in charge of overall planning.
Xiong Minghua’s R&D center is in Beijing,
Luo Chuan from the marketing department was in Shanghai, thousands of kilometers apart, and had no control over each other, making it difficult to form synergy.
And the power in the hands of both people is very limited, with only $500,000 in financial authority.
That sounds like a lot.
But for a large company covering China, it is too limited.
The most important thing is that what functions they need MSN China to develop and what activities they need to hold need to be reported at all levels,
By the time Microsoft approved it, the cucumber dishes were already cold.
Also, Gates Sr. and Ballmer are now going all out to deal with Google and AOL.
The business chain in China accounts for only 2% of Microsoft's total business.
MSN's China business is estimated to not even account for 0.1% of Microsoft's total business.
Old Gates has to take care of both the Gates Foundation and Microsoft. How can a man in his fifties still have so much energy? ”
No one seemed surprised to hear that Xu Liang didn't care about the world's richest man.
After all, the person in front of me is ranked second on Forbes, and Bill Gates’ net worth is only a billion dollars more than him.
The two of them are of the same level.
“Second, Microsoft’s global development model is difficult to adapt to regional market competition.
MSN’s technology research and development direction is controlled by Microsoft headquarters. It is a global game of chess, focusing on the Chinese local market. Not much.
The development of every function of MSN needs to be submitted to the US headquarters for demonstration.
However, the environments of different countries are very different. As an Asian regional market, the opinions put forward by the China District are probably not even ranked in the queue.
Looking at the major American Internet companies that have entered China, whether it is Yahoo or eBay, they all have this problem.
I always feel that the United States is superior to others, and all countries around the world must listen to their opinions.
In the absence of competition, this idea is fine.
But China's Internet is developing very fast, and there are overlords in various fields. However, they still behave in this way,
and they are really strong.
It is natural to hit the wall.
So don’t take MSN to heart at all. ”
Xu Liang changed the subject.
"The Americans are tough, we can't follow them.
They have a strong foundation and can withstand hardships.
But we all come from humble backgrounds, so we must learn to sum up experience and lessons, and overtake in corners.< br>
This is why I insist on Hongmeng and Penguin insisting on the subsidiary system and decentralizing management and development rights when exploring external markets.
The head office only provides underlying technical support and financial support. and administrative supervision reasons.
Only by truly adapting to the local market can you truly understand the needs of local users and develop functions and applications suitable for the local market. ”
After a pause.
“Hongmeng can become a top Internet company covering the world from China in just five years.
It’s because we gave up the global development model that was inefficient and easily caused the ‘big company disease’.
We have built ourselves into a platform focusing on research and development, central coordination and supervision.
Management rights and basic business development rights have been delegated to each of its subsidiaries.
Hongmeng currently has nine regional subsidiaries around the world including Japan, South Korea, Nanyang, and West Asia, and owns 11 business subsidiaries such as DreamWorks Animation, Youku, and Sina.
This platform-based and flat management model has greatly improved the efficiency of corporate management.
When we compete with local companies of the same type, we will not be distracted by management and technology. Lagging behind due to procrastination and unfamiliarity with the local market.
On the contrary, we can also gain the advantages of groupization and mutual cooperation of multiple businesses; as well as financial and technical support from the head office.
This is the fundamental reason for Hongmeng’s rapid development.
Whether it is Microsoft or Yahoo, they only have one headquarters.
But Hongmeng has more than two dozen headquarters that can make decisions.
We are growing far faster than they are.
So I hope Penguin can also learn from Hongmeng’s successful model, implement a localized and flat management model when expanding externally, and decentralize management and decision-making rights.
As long as Penguin focuses on being itself, no matter whether it is MSN or other social Internet companies, it will not be a competitor at all.
You don’t have to worry about them either. ”
(End of this chapter)