How can enterprises find the second curve in the AI era? Shi Xiaodong, a CEIBS DBA 2023 student, has something to say
2024-08-14
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In the wave of digital transformation, artificial intelligence (AI) technology is changing all walks of life at an unprecedented speed. Shi Xiaodong, a CEIBS DBA 2023 student and president of New Guodu, shared his unique insights on how to find the second curve of enterprises in the AI era with his keen insight into AI industry trends and his own corporate practices at the CEIBS Venture Capital Camp Open Class.
The wisdom of transformation from a code farmer to a business leader
Shi Xiaodong, a CEIBS DBA 2023 student, has a microcosm of the history of China's Internet development. As an early explorer of China's Internet, he has witnessed the evolution of the Internet from Yinghaiwei, BBSs of major universities to mobile Internet. Looking back on the ups and downs of his entrepreneurial journey, he deeply realized that even if the concept and track are correct, if the market timing is not ripe, the idea may not survive.
Insights:Prudent reform and courageous leadership
Shi Xiaodong transformed his insights from his entrepreneurial journey into business wisdom for the company. He emphasized that companies need to be cautious rather than blind when stepping out of their comfort zones. Xin Guodu started out as a hardware manufacturer and gradually expanded to payment services, cross-border payment collection and artificial intelligence, with careful planning at every step. Professor Huang Sheng, a professor of finance at CEIBS DBA, once said in a professional course that 60% of listed companies reach their peak market value at the moment of IPO, and so does Xin Guodu. In order to seek a suitable second curve, Xin Guodu has learned to use the power of the capital market through mergers and acquisitions and investments, while focusing on internal changes and product iterations to adapt to market demand.
Practice: Internal reform, accumulation of experience and development
In terms of internal transformation, Shi Xiaodong, a CEIBS DBA 2023 student, said that the second curve must be built on the solid foundation of the first curve. In the early stages of its transformation, New Guodu promoted the company's reform through consulting projects, but ultimately found that the real change came from a shift in the company's internal business thinking. The company developed several technologies to support services, initiated platform development, and carried out systematic reforms to transform its business model from a sales system to a service system.
Inspiration: Product iteration, always stay ahead of the curve
In the open class, Shi Xiaodong, a DBA 2023 student from CEIBS, shared the principles of product iteration of New Guodu, insisting on ease of use and promotional features, and "reserving future capabilities" for product design to facilitate the expansion of other businesses in the future. He mentioned that keeping up with market demand and reducing education costs are the keys to product success and maintaining a competitive advantage for companies. Real-name authentication and the instant settlement model effectively protect the interests of local sales personnel, allowing New Guodu to successfully achieve the transformation from agency system to direct sales, while also strengthening the company's core competitiveness.
Strategy: Seize opportunities and update the curve
Shi Xiaodong said that when looking for opportunities in a new industry, the key lies in the connection with the first curve. It is necessary to use the mature platform of the enterprise to incubate rather than rely on mergers and acquisitions. This is also an effective strategy to reduce risks. In the AI track, New Guodu keeps pace with the times, seizes the opportunity to successfully incubate the business in the AI field, and walks out of the second curve of the enterprise. At the same time, it pays attention to the overseas market, and has insight into the trend to achieve rapid growth in hardware sales, and the main business has also sprouted new vitality.
Shi Xiaodong has a unique view on the end of entrepreneurship. He believes that the listing of a company is not the end, and "selling oneself" may be the ideal choice for many entrepreneurs. In the open class, Shi Xiaodong suggested that CEIBS DBA students pay attention to cash flow management, find "substitution" scenarios, adhere to long-termism, and build a barrier-free basic service system, which are the keys to the sustainable development of enterprises.
Shi Xiaodong's sharing showed how to successfully promote the second curve of enterprises through learning, change and innovation in the uncertain emerging market environment. This also inspired CEIBS DBA students that in this rapidly changing era, business leaders should have a long-term vision, be ready to seize opportunities at any time, and continue to build the core competitiveness of the enterprise.
