Under the new economic normal, new characteristics have emerged in enterprise organization and management, as follows.
The first is the change in supply and demand structure. China’s macroeconomic policy has begun a major shift from demand management to the supply side. Direct government intervention in economic activities may trigger market risks, such as financial credit black holes, distortion of industrial structure, overcapacity, local debt crises, etc. The most effective driving force for economic growth is to rely on new technological revolution and institutional innovation to effectively improve total factor productivity. In the network economy, consumers are completely at the center of the supply chain, and residents’ consumption has entered the era of leisure. The liquidity and penetration of the supply side have promoted large-scale social division of labor and collaboration.
The second is management organization innovation. New trends and concepts in the field of business management have been constantly emerging, impacting traditional business management thinking. Efforts will be made to improve the quality and efficiency of the supply system. The role of emerging industries, service industries, and small and micro enterprises will become more prominent. Miniaturization, intelligence, and specialization of production will become new features of industrial organizations.
Flat decentralization, elimination of middle layers, borderless, business outsourcing, alliance system, partnership system, self-organization, amoeba, group system, starfish model, chaos, crowdsourcing… nowhere It does not reflect the social consensus of “people-oriented”. Many e-commerce companies promote internal competition among buyer groups, encourage and cultivate the group’s independent management awareness, and design sharing principles. In the era of knowledge economy, the creativity of an organization mainly depends on whether employees can learn new skills and accept new roles, and whether they can adapt to the pace of digital market development and changes in needs.
The third is the change in transaction structure. Under transparent competition, e-commerce has turned into a “zero-sum game” in the end. Only the platform, the slave master, is left. It is getting further and further away from a win-win situation and has to consider the “reverse Internet”. The traditional production cycle and inventory must be equipped with large-scale market demand. Low-density demand is collected through the network at low cost, inventory is controlled, and individual demand is released.
Long tail economy, makers, crowdsourcing, wikis, sharing economy, etc. are all descriptions of this model from multiple perspectives. The ideal C2M (Customer to Manufacture) model cuts off all intermediate links, and users place orders first before production, eliminating the evil inventory. Of course, this is almost impossible. The C2B scenario is impossible to occur in traditional trade, at least it is a long feedback process. Under the traditional trade model, the entire global supply chain has a series of intermediate channel links, and finally reaches the end consumer.
Chinese manufacturers at this end have absolutely no idea of the needs of end consumers at the foreign end. Any quality problems or personalized needs cannot be known under traditional export trade. But the significance of C2B/C2M to cross-border e-commerce is to capture fragmented demand through personalized marketing and build a supply chain system of “pull distribution and flexible production”. Customers define value, typically by establishing a “consumer community” to allow customers to give feedback and even encourage them to participate in product R&D, design, production and brand communication.
Cross-border e-commerce solves the typical problems encountered in traditional trade. The Internet is a borderless medium with the characteristics of globalization and decentralization. The platform solves the credit mechanism, multi-variety, small Batch and fast delivery are used to capture market demand. The supply chain side carries out continuous replenishment according to the actual demand of different SKUs that are best-selling, flat-selling, and slow-selling, ensuring continuous stocking and shallow inventory, and realizing a pull-type distribution system.
The global C2B upgrade of Chinese manufacturing requires targeted outbreaks to reach consumers in target markets. It also requires flexible production, a supply chain that is flexible enough, and production capacity that can respond quickly to market demand. Without the need to build overseas self-owned channels, cross-border e-commerce can flexibly allow Chinese merchants to directly contact overseas consumers, provide platform capabilities for marketing, supply chain, and sales package solutions, obtain consumer feedback as soon as possible, and further optimize products. Develop new products. Remember, there will be no lasting additional profits if you remove the intermediate links. Engels said that everything in the free market will tend to the average social profit. The truth is still the same. New models are just new, but they are not super powerful.