Магистерский диплом на тему Innovative Business Model on internet industry: Chinese internet firms case study

Содержание:

Introduction 2
Chapter I. Theoretical aspect of Business Model on internet industry 4
1.1 Opportunities and Challenges of the Industrial Internet 4
1.2 Business Model Innovation for Industrie 8
1.3 Management of Innovation in the Industrial Internet of Things 11
Chapter II. Chinese internet firms case study 13
2.1 Structure of China Online Shopping Market 13
2.2 Overview of B2C e-Commerce Market 15
2.3 Overview of B2B E-commers market 18
Chapter III. Internationalization strategy of Chinese e-commerce firms 20
3.1The case of Alibaba Group 20
3.2 Analysis of QQ, WeChat’s Development 25
3.3 Advertising on Youku, Xinlang 28
Chapter IV. Factors lead to innovative business model of internet firm 30
3.4 Consumer demand 30
3.5 Product and service 35
3.6 Competition 36
3.7 Internal/external factors 40
3.8 Technology 43
Chapter V. Case study of Chinese internet firm 45
5.1 Company 1 45
5.2 Company 2 47
Chapter VI. New directions 49
6.1 Internet + 49
6.2 Internet of Things 49
6.3 Cloud Computing 51
6.3 Big data 53
6.4 Mobile devices 54
Conclusion 56
Bibliography 59

Введение:

Internet use patterns in business can be divided into two main groups: models to support existing business and models to create new business on the Internet.
The Industrial Internet will afford emerging markets a unique opportunity to
Leapfrog developed countries in digital infrastructure. As these countries continue to build out roads, airports, factories and high-density buildings, they can avoid costly retrofitting by installing state-of-the-art embedded sensors and connectivity from the outset. These capabilities will provide a new foundation for enabling the next wave of smart services and accelerating regional economic development.
The actuality of the theme. E-Commerce is a dynamically developing industry in everything world. Thanks to the active spread of broadband access to the network Internet in emerging markets such as BRIC countries (Brazil, Russia, India and China), before the retail sector companies completely new markets are opening up. The development of e-Commerce justifies the relevance of the study Internet economy in the people’s Republic of China and its place in the economic system of the state. Also the relevance of the chosen topic the research is due to the fact that China’s Internet trade is largely connected with the Russian market of consumer goods, i.e. Russian consumers are directly dependent on the development of the Chinese market.
The theme of the Industrial Internet were investigated by such prominent economists as С. Markides, D. J. Teece, A. Osterwalder, R. Van Kranenburg, L. Tan, N. Wang and others.
The purpose of this article is to study the role of Innovative Business Model on internet industry: Chinese internet firm’s case study.
To achieve the set aim we determine the following tasks:
— To give the characteristics of Business Model on internet industry.
— To characterize the structure of China Online Shopping Market.
— To describe the rules of Internationalization strategy of Chinese e-commerce firms.
-To describe the factors lead to innovative business model of internet firm.
Object of study is Innovative Business Model on internet industry.
The subject of the research is the development of Chinese e-Commerce people’s Republic on the example of of Alibaba Group.
The methods of investigation included contrastive, distributive, componential analyses.
The work consists of introduction, six chapters, a conclusion and the reference list of the works used.
The introduction presents the characteristics of the main parameters of the study: the relevance of the goal is formulated, the object, subject and methods of research are defined, its purpose and tasks defined are designated.
The first chapter of the work, the theoretical part is devoted to the definition of The Industrial Internet (Internet of Things).
The theoretical value of the research is in elaboration of certain aspects of the Innovative Business Model on internet industry.
The practical chapter presents a detailed description of strategy of Chinese e-commerce firms, factors lead to innovative business model of internet firm.
In the conclusion of my paper I tried to draw some results from the investigations made within the main part of my work.
The practical significance of the results lies in the possibility application of the results obtained in the course of the study in the activity Internet company.
Implementation and testing of work:
— examines the theoretical foundations of the Internet economy.
— analyzed the Internet economy of China on the example of «Alibaba».
— the analysis of prospects of development of the Internet economy in modern world.

Заключение:

Today people write and talk a lot about the Internet of Things. The market boom stuns those who need it to improve their competitive ability in the market — producers.
Technologies built using the Internet of things (IOT) generate new, previously unavailable data that is critical to the efficiency of data integration and business processes of a manufacturing organization, and in particular production units that have implemented related things / assets / facilities and can realize the benefits of IoT technologies by obtaining real-time accurate data for enterprise-level systems such as CRM, ERP or data warehouse. Data generated by IoT technologies from connected assets, in collaboration with other enterprise systems, can provide visible and observable automation across the organization. In addition, they can provide integration with quality assurance (QA) or product lifecycle management (PLM) systems, which can help to improve product performance based on real-world data that show usage patterns or solve equipment problems, helping to improve customer satisfaction, as well as implement rational execution of test and experimental beta programs.
An element based definition allows a more detailed view on which aspects of the industrial internet are relevant in the context of business models for the industrial internet.
There are various definitions of business models that support the abstract understanding of what a business is about and what the most relevant elements. But even after several years of research in the field of business models, there is still no generally accepted definition of the term itself and the describing elements of business models. The business model depicts the content, structure and governance of transactions so as to create value through the exploitation of business opportunities.
The business model is the heuristic logic that connects technical potential with the realization of economic value. Business models consist of four interlocking elements that, taken together, create and deliver value.
The term business model names the image of the value creation system of a company. A business model articulates the logic, the data and other evidence that support a value proposition for the customer and a viable structure of revenues and costs for the enterprise delivering that value.
A business model describes the basic principle through which an organization Creates transfers and captures value.
Taobao, Alibaba’s biggest website, is like a gigantic Chinese bazaar with about 760 million product listings from 7 million sellers. Merchants don’t pay to sell products on Taobao-and that fee-free model is a big part of its appeal in China. Instead, they pay Alibaba for advertising and other services to allow them to stand out from the crowd. Much like on Google, the ads from merchants appear with Taobao’s product-search results.
With Alibaba.com as the B2B component, Taobao as the retail equal, and the support functions of Alipay, Alisoft, and HiChina, the Alibaba Group seems well positioned to change global purchasing practices. As Alibaba seeks to expand globally it will be necessary to maintain this focus and to adopt to the different business and cultural constraints found in the rest of the world.
Internet services have been a major source of customer-focused innovation in China. In addition to Alibaba, companies such as Tencent and Baidu have become global leaders in online services simply by serving the Chinese market. These companies have found new ways to meet the needs of the Chinese market. With its online bazaar, for example, Alibaba addressed the need for better retail options for Chinese consumers, particularly those residing in smaller cities and rural areas.
Among its innovations to make the online market work in China was Alipay, a service that holds vendor payments in escrow until goods are delivered.
Tencent has built a very different model than other social media platforms use
for monetizing traffic to its sites. Rather than depending on advertising, which is a relatively small business in China, Tencent makes 90 percent of its revenue from sales of virtual goods to online gamers, payments, and e-commerce. In 2014, this innovative business model allowed the company to generate $6 more revenue per user than Facebook did.
As a result of the work done, we can draw conclusions – opportunities creating an online business depends on two key indicators: organization’s current level of capability to implement the network form business organization and the level of uncertainty created by electronic environment characterized by compatibility of business models, structure industry and rate of change of products, processes, organizational structure.
The e-Commerce market is actively developing, despite the crises and other negative phenomena. The world’s average growth rate is about 18-20% per year. According to the results of the done work it is possible to conclude that the current stage of development of international relations plays an important role electronic factor in relations between actors in the political arena.
The development of electronic interaction has a significant impact in the field of political and economic relations. In countries with more advanced electronic trade increasingly increases the demand for the development and transformation of this industries.
Annual global online trade (E-commerce) it is estimated at $8 trillion (2018), with the bulk of the accounts for inter-firm transactions (B2B) in the manufacturing and wholesale sectors.

Фрагмент текста работы:

Chapter I. Theoretical aspect of Business Model on internet industry
1.1 Opportunities and Challenges of the Industrial Internet

Production goods today are under enormous pressure from management and customers to provide high quality products and services at low prices in a minimum amount of time.
Industrial Internet of Things is everything that has been promised to be. It has the clear ability to impact the fundamental needs of the industry and has the potential to rejuvenate certain industry segments and economies. It can connect and evolve the silo views of assets to a system of assets and eventually to a system of systems, leading to the fundamental redefinition of businesses.
Under the industrial Internet of things is usually understood application of the Internet of things in a single industry, but IDC, formally, does not distinguish between the Internet of things and the industrial Internet of things.
IoT creates new opportunities for companies to expand their range of services, enhance their business ideas from accurate and timely data, improve business processes and differentiate their offerings in the market. In fact, these combined IoT manufacturing units bring manufacturing companies closer to their customers, while providing real return on investment and return on investment.
The term «Internet of things» was originally proposed to refer to the unambiguous identification of objects connected by RFID radio frequency identification technology [6]. Later it began to affect much more technologies such as sensors, actuators, GPS and mobile devices. Today, the generally accepted definition of the «Internet of things» is as follows: a dynamic global network infrastructure with self-configuring capabilities based on standard and compatible communication protocols, where physical and virtual «things» have identifiers, physical attributes and virtual personalities, use intelligent interfaces and are easily integrated into the information network [36].