Liu Qiangdong talks about organizational evolution under the retail revolution: JD.com will move towards integrated opening

　　Recently, Liu Qiangdong, Chairman and CEO of JD Group, wrote a signed article "Organizational Evolution under the Fourth Retail Revolution" to discuss JD's strategy in "Finance" magazine. Liu Qiangdong said that the essence of the fourth retail revolution is boundless retail, and the ultimate goal is to reconstruct the cost, efficiency and experience of retail on the basis of "knowing people, goods, and markets".

　　Liu Qiangdong said that the arrival of the fourth retail revolution has triggered the update of JD's strategy, and JD will move from "integration" to "integrated open" model. Together with partners, organizations must change. This is a step that JD must take to realize its strategic vision.

　　Liu Qiangdong said: It is no exaggeration to say that the upcoming "Fourth Retail Revolution" will completely change the pattern of the entire retail industry. The VUCAization of the future retail environment will pose great challenges to organizations: instability requires our response to be more agile; uncertainty means that enterprises need to collect more systematic and comprehensive information; complexity requires enterprises to restructure organization; and ambiguity requires us to experiment and verify possible opportunities with an open mind.

　　As we move towards the future, we can foresee that the e-commerce environment will become more and more mature: the level of social logistics is constantly improving, the accumulation of retail data is becoming increasingly rich, and data-based services are emerging one after another... Retail infrastructure is incomparable to today. This means: With the help of modern technical means, enterprises can easily mobilize professional product flow, data flow and capital flow services without the need to build them on their own. In other words, in the future, "cost, efficiency, and experience" will no longer be achieved through an integrated and integrated model, but will rely on platformization and networking, and from outside the enterprise. Network collaboration will surpass the power of economies of scale and become an important driving factor for achieving "cost, efficiency, and experience".

　　In the future, in order to serve diverse scenarios and changing needs, JD.com's organization needs to become more flexible and agile and become a building block-type organization. The meaning of building block-type organization is: to open up strong coupling relationships between business links, making them a split, configurable and assembleable plug-ins. By personalizing the combination of multiple optional plug-ins, customers can be met with different preferences and needs (Figure 3: JD.com's building block organization). Just like Lego bricks, Lego has about 3,200 standardized bricks. After being combined and superimposed through a unified interface, it can be assembled into any shape you can imagine - from a car model to a vivid recreation of the grand occasion of the 2012 London Olympics.

　　JD.com has actively explored the "flexible combination", and the "Kepler" project is based on the componentization of various business activities. We will API-based e-commerce, logistics, customer service, transaction, data, product selection and other business links and provide them to the traffic end. The traffic end can select some or all components according to its own different situations, and connect to JD.com's e-commerce services through shopping guides, settlements, buyouts, etc. to realize traffic monetization. For example, we have launched the Jingteng, Jingtiao, Jingtou and Jingtiao, Jingtou and Jingtiao, respectively with partners such as Tencent, Toutiao, Baidu, and Qihoo 360, respectively, all involving Kepler projects. The e-commerce transactions and delivery behind these wireless applications are realized by JD.com.

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