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An Analysis of the Recognition of Network Economy

Source: Shangpin China | Type: website encyclopedia | Time: November 25, 2014
The network economy has become a spark all over the world. "Network" and "information" have become new terms frequently appearing in the media, Website Design E-commerce and network economy have become hot topics of general public concern. However, people's opinions are different: some people are enthusiastic about it, believing that it represents the direction of human society development and is the only way to connect with the international market and participate in international competition; Some people doubt that it is to follow the fashion and spend a lot of money to "buy furnishings" and "label", which is not suitable for China's national conditions. In fact, as far as e-commerce and online enterprises are concerned, it seems that there are many successful examples in the United States (these "successes" in fact still need to be verified over time), and there are few successful examples in China. Does this mean that these "new concepts" have caused "water and soil dissatisfaction" in China?

 internet economy

Just as the popularity of radio and television has changed people's lifestyle, the rapid development of the Internet is having an unprecedented profound impact on people's production, life, learning, entertainment and other fields. In terms of the infrastructure, popularization and application of the Internet, the United States has taken a step ahead, but this does not mean that the network economy can succeed only in the United States. For example, Japan, Taiwan and other places in China have also seen some similar successful examples. The key is to change the concept and increase the informatization investment. Lin Zhenggang, Vice President of Cisco Systems (China) Network Technology Co., Ltd., said when talking about this issue: "According to my discussions with leaders of some large and medium-sized enterprises since the 1980s, entrepreneurs' ideas are very important to promote enterprise networking and informatization. There are many senior leaders of enterprises in China who have prejudice against informatization. They think that this technical problem is the matter of technicians and network administrators. In fact, this attitude is very inappropriate. In today's network era, information is one of the key elements of management. Information is not a complex technical problem for the director of the Information Center, but a strategic resource that concerns the survival and death of enterprises and the competitiveness of enterprises. "

Now many large and medium-sized enterprises in China do see the importance of the network to a certain extent, and have invested a lot of money in building enterprise information systems. However, many enterprises reflect that they have spent so much money, as well as the daily operation and maintenance costs of the network. The cost is large, but the benefits are not obvious. In fact, this situation is not only found in China, but also in many parts of the world. In the final analysis, this is still the concept of business executives. They did not realize that the information system is to improve the response speed of enterprises to the rapidly changing market demand, help the decision-making level to grasp comprehensive and accurate information, and make correct strategic judgments on this basis. Bill Gates once summarized in his famous book Future Speed: In the 1980s, the focus of enterprise competition was product quality. At that time, many enterprises introduced the IS09001 quality certification system in order to take the initiative; In the early 1990s, the market environment changed rapidly, and enterprise restructuring became a new fashion. Huge mergers, represented by manufacturing and financial industries, were surging. So what is the key to enterprise competition in the 21st century? Is the speed. Today's enterprises lose their living conditions without speed. Without speed, there is only a dead end. The competition among enterprises in the future is not that the big ones eat the small ones, but that the quick ones are better than the slow ones. Contemporary management theory points out that successful enterprises will be learning organizations that are good at absorbing new market information. An enterprise should have a network similar to the biological neural system. Each employee will consciously acquire new knowledge and enrich himself, and the entire enterprise can get new information from the network composed of each employee to improve its ability to adapt to market changes.

On this issue, the Cisco (China) company mentioned above can be regarded as a model of domestic enterprises. During the 1999 Shanghai Science and Technology Forum, Dr. Kivos, the former US president's science and technology adviser, made a special mention of Cisco when he heard about the network economy, calling it "the General Electric Company of the 21st century". So Cisco is applying the Internet to improve enterprise competitiveness. What successful experience can be borrowed by domestic enterprises? It is generally known that Cisco is the world's largest router manufacturer, but it is still the world's leading e-commerce company. It has established the largest commercial website in the world at present. 80% of the annual turnover of enterprises exceeding 10 billion dollars is achieved through the Internet, and the average daily transaction volume through the website reaches 20-30 million dollars. It may be hard to believe that Cisco's business in China has exceeded 200 million dollars, and only two people have handled these orders. It can be said that Cisco has taken a step ahead in the network economy and has tasted the benefits.
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