The ambitious company, explained the true meaning of imitation and innovation in the Internet industry in China.
There is no doubt that, Tencent has became China most success of Internet company one. this in China Hong Kong listed of Internet company was investors hailed as “fairy unit”, its stock from listed of early of 4 Hong Kong dollars soaring to currently of 30.5 Hong Kong dollars (as of on January 23, 2007), its market value has reached amazing of 54.2 billion Hong Kong dollars. According to its earnings, Tencent 2006 third quarter of income for 93.2 million dollars, than row in second bit of NetEase of 72.4 million dollars beyond has As much as US $ 20 million. Moreover, the ambitious companies in instant messaging (IM), gaming, wireless, e-commerce and advertising almost all mature applications are successful on the Internet.
Outsiders will naturally be Tencent currently successful due to its large user populations as of the third quarter of 2006, its IM total of 572.3 million registered accounts. However, in the company’s Board Chairman Ma Huateng, Tencent’s success depends in large part on its emphasis on innovation and drive. ” Tencent currently over 50% of the more than more than 3,000 employees engaged in research and development work, research and development expenditure share of the turnover, probably more than 20%. ” When in January 2007 in an interview with the Internet weekly, MA for the success of Tencent this interpretation.
And QQ in user market Shang unmanned does not Xiao formation sharp contrast of is, Tencent in innovation Shang of efforts is rarely for industry by know. This low-key of innovation who from success of imitation began, now has has has over more than 100 more item Internet related of invention patent. not only so, in past of years in the was Tencent employees called “Chief experience officer” of Ma has success to in company internal established up a effective of innovation mechanism.
United States Internet analyst Brain Willams believes that Tencent is China’s only one by one and Google Enterprise environment comparable to the work of the Internet, it advocated employees “do something you are interested in”, and to encourage freedom of innovation in these areas.
Imitation innovation
And most successful Internet companies in China are similar, its success is also starting from imitation. but its success may be able to effectively imitate innovation. ” Innovation and the introduction does not contradict. such as Japan and Korea automobile, is introduced from the start and then began to innovate. what we advocate is the introduction of smart, and have continued to innovate on that basis. ” Ma said.
Tencent QQ core product that is the typical case of imitation innovation. Ma never actually admitted that QQ is as an imitator of ICQ appear in front of users in China, but QQ’s success was by no means as imitation. ” QQ is an imitation, but like offline message, QQ Group, magic, such as facial expressions, mobile QQ, shiny ring is its innovation. is innovation product QQ huge user base, this becomes the lever fulcrum of Tencent’s system as a whole. ” Ma think these innovations are the key to QQ can finally pass ICQ.
Tencent currently actually this imitation can be found in many products-innovation of the shadow: online gaming, e-commerce (Pat network), a wireless value-added and portal sites (www.QQ.com), etc. and numerous attempts to diversify the tragic failure of Internet companies, a massive expansion of Tencent is almost a success in all fields.
Not only is in products level, even in innovation mechanism of established launched of free and team also does not evaded imitation. October 2006 Tencent announced investment billion Yuan Yuan established Tencent Institute, to attract China of scientists and technicians joined, this undoubtedly with Google and Microsoft, transnational corporations of research and development innovation mechanism has coupled of Department. not only so, Tencent also in 2006 second half launched has QQ network laboratory (labs.QQ.com), to full absorption user of imagination and demand, In this way also is similar to Google some of the practices. ” In addition to innovation as its core values, I think a robust innovation system and mechanism of Tencent can keep innovative guarantee. ” Ma said.
Addition, Tencent in Beijing, and Shanghai, and Shenzhen, and Guangzhou established has user experience observation room, this has became domestic Internet company of first. for a ambitious of company,, this continued of learning and innovation ability undoubtedly along foot precious. United States investment bank Goldman company in its 2006 publishing of research report in the pointed out that, in future China of Internet company in the Tencent most has may implementation communication, and portal, and business, and search and paid 5 class business of best combination.
Beyond imitation
In imitation of the successful innovation and innovation systems within the company to build the future, this marked by a little Penguin company is entering his new tour. ” I think innovation is not just limited to technology, products, and so on, but in business model innovation, innovation and user experience. ” MA is for the company to enter a new stage of innovation under very excited.
In Tencent of earnings in the has a item looks is special of business-Internet value-added service. this item business 2006 third quarter of income reached 62 million dollars, occupy Tencent total revenue 93.2 million dollars of 66.5%. this item business of more constitute is network virtual image and network community service, is said this item business especially because in other Internet company in the and no similar of business. in copy cost relative lower of Internet area, It can even be called a miracle. almost any sizable business model appears a number of followers.
Both online games and in the integrated portal, leader behind several successful follower. While Tencent’s Internet value-added services are hardly a successful followers, not only that, Tencent also succeeded in copying other Internet company’s business model. said this is Ma business model innovation.
MA is also set off a new round of strategic innovation within the Tencent, set higher barriers to entry for competitors. ” We will focus on the user in different age and different situations demand changes to product design and consumer behavior, providing deeper content service. includes three product strategy: one application of QQ in the work, one is the application in the school environment, and application of a family environment. ” Ma thinks that Tencent has successfully build QQ, QQ.com, QQ game and Paipai.com has four core platforms and a large community of next’s innovation is in the different features on the four core platform application.
“The strategic objective of innovation is to provide users with online life in China, this online life we want, like water and electricity is true every day, the service for you.” Ma said.
Innovation risk
Of course, as a champion of innovation facing not just success and beyond, a large number of innovation where risk is also the Chief Executive needs careful consideration.
2006 end of, a article on Q coin may impact Yuan of reported will Tencent push public opinion crests. the reported think Q coin, network virtual currency can buy virtual world in the of equipment, paid member service fee, even and Yuan “Exchange”, may violation Yuan Management Ordinance under, and impact Yuan of statutory currency status. then, people’s Bank of China, spokesman for Lie superalgebras in open occasions clear said, Q coin is in currently technology progress, and network environment Xia new produced of a more facilitate of network paid means, On the role of active economic have a lot of good.
Actually Q currency turmoil is only a microcosm of the many Internet innovation. interest, such as network virtual property protection, virtual transaction supervision innovation Internet products such as payment instruments and networks are facing the same dilemma.
Although this quickly subsided as the authorities clear the disturbance, but it really reflects the risks faced by the Internet innovation. ” Comparing to traditional industry, the Internet is a whole new industry. current national legislation in this area is blank. as foreign Internet companies full access to China, legislative aspects of the Internet I hope the Government can carry out as soon as possible. ” Ma Huateng worried that.