von Galina Misnik Vor 6 Jahren
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Operations managements in Alibaba Group is mind map prepared by Galina Misnik, IMBA ENE2018 J4-H, for the course Operations management. This mind map will give you an overview of the company and briefly explain its operational model. In particular we will focus on operational innovations carried out by Alibaba and its customer centric approach.
First time I heard of Alibaba 4 years ago, in 2014, when I first visited China. My colleagues from IKEA in Shanghai were very surprised that I didn't know anything about it, because already then it was biggest online shopping platform in Asia, where you could find anything.
Then I found out that my aunt was long time making business buying Chinese and Korean cosmetics through Taobao.
Every time I was visiting China since then I could see more and more services developed by Alibaba, growing their business and their influence on everyday lives of Chinese people.
Currently, Alibaba is powerful economic force not only in China, but all over Asia and everywhere in the world where people make business with Chinese companies, which means literally everywhere in the world.
Alibaba's operational model gives us many lessons.
First comes customer experience. By always starting from customers' dreams and needs Alibaba is able to create new products and business models which revolutionise such conventional industry as retail.
Next, create infrastructure. And it's all about operations. Without lean, smart, fast and efficient operations volumes are impossible. But, also, the volumes Alibaba creates are previously unthought of. This means that Alibaba needs to create completely new ways to operate to deliver the volumes, and it creates infrastructure that is capable of handling them, innovating many parts of society while doing it.
Last but not least, co-creation with customers and partners. The core of Alibaba business model is collaboration platform, where people, companies, products meet, discuss, develop together. Alibaba constantly analyses the needs and together with its partners and customers creates new products and services.
Innovative platform is based on innovative solutions.
Not only Alibaba innovates its own operations, it helps its partners create innovative new products having customer in mind.
How does Alibaba creates and sparkles innovation?
It's in its culture and spirit... and in its headquarters!
Let's take a walk through the heart of Alibaba in beautiful city of Hangzhou, China, to see how company manages its most important asset - it's talents.
Founded in 1999 as meeting place for business, currently Alibaba
Group is formed of 9 businesses:
Let's take a closer look at it and learn what is Alibaba!
And who is the PERSON behind success story?
Spend couple of minutes to hear the story of Jack Ma, currently one of the most influential and definitely one of the most internationally exposed Chinese public figures.
The strength of each business is in its numbers. Let's take a quick look at what Alibaba delivers. This will help us understand the scope and the volumes this company's operations management applies to.
Check out attached article!
How to make shopping fun and interactive? How to make customers feel engaged? How to make customers participate?
Game!
Alibaba has created special game, analogue of Pokemon Go, for its 11.11 special sales day.
Alibaba'a portal created $25 billion sales in just 24 hours of November 11th, 2017.
Just to compare, Tesla's current market cap is $60 billion.
Humbling, isn't it?
The real test of company's operations is its peak sales day. Let's hear out how Alibaba handled its latest sales record.
In attached articles you can find short overview of each division in Alibaba, and continue navigating if you want to know more about the company.
In short, Alibaba started as a meeting place for sellers and buyers. Close follow up on consumers' behaviour and needs led to diversification of business and creation of different platforms to better serve each of them.
Alimama was created as a response to the needs of growing sellers' community who wanted to communicate better with potential customers and stand out during their shopping process.
Ant Financial made payment process through Alipay a benchmark for the industry, Cainiao delivers and Alibaba Cloud makes sure that digital infrastructure supports incredible sales that the platforms generate day in day out.
Alibaba is a great example of how following CUSTOMER JOURNEY can create powerful business with diverse parts to it!
Efficient logistics is impossible without efficient cities and transportation systems. It's outside of Alibaba's reach? No!
Alibaba Cloud services started as service provider for Group's companies, extended itself to external clients and now its goals are to transform the cities where Alibaba operates.
Operational innovation on completely different scale!
Chinese consumers are becoming more and more important part of purchasing power in many countries, primarily in Asia, of course. And Alibaba knows Chinese consumers as no one else.
That's why Alibaba becomes strategic partner for Thailand in developing digital solution to better serve Chinese customers and tourists in Thailand.
Thailand and Alibaba recently signed memorandum of understanding stating that Alibaba will develop digital hub for Thailand allowing the country to better serve Chinese tourists, consumers and make commerce with China more efficient.
Read more in attached article and take couple of minutes to watch the video.
To create best customer experience is not good enough for Alibaba.
Alibaba goes back to square 1 and creates completely new CX that will amaze you...
Take a look at breathtaking innovative adventures - online and offline - Alibaba takes its customers on!
China had restrictive UnionPay...
Now it has fast and convenient Alipay!
Is it possible to change the way people do grocery shopping? In China with its strong traditional food culture?
Is it possible to implement full self-service in China? No cashiers, no security?
I asked these questions to my Chinese colleagues, and the answer to all of them was strong "NO".
Well, seems like there is nothing impossible for Alibaba.
Watch the video to see how Alibaba transforms traditional retail to NEW RETAIL!
Automation, lean operations, smart logistics, customer participation, quality management, customer journey - so many examples of great operations management, I feel like we could have our class there :)
Online shopping. Cutting edge technologies. All digital experience. Pure innovation.
Ah no.... Alibaba proves this wrong!
Astonishing example of operational innovation in online shopping is shown in the video. With Alibaba there are no limits for your shopping! Travel, shop, meet new people, experience new things - all this through Alibaba virtual reality shopping portal.
Alibaba acknowledges that logistics is the most labor intensive part of retail business.
And it raises up to the challenge!
Logistics as we know it soon will be forgotten.
Future is now, and Alibaba is creating it!
