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The prospectus reveals the development logic of the Department of Mathematics in JD.COM "'tob' is not just a slogan".
Recently, JD.com submitted a prospectus to the Shanghai Stock Exchange. As can be seen from the contents of the prospectus, "toB" that JD.com has always mentioned is not just a slogan. Judging from the data of revenue, technology investment and scientific and technological talents, JD.com has completely become a toB company, and has completed the phased landing.

According to JD.com's prospectus, JD.COM's business can be divided into three categories: digital solutions for financial institutions, digital solutions for merchants and enterprises, and digital solutions for the government and other customers. By June 2020, the revenue of the above three businesses accounted for 465,438+0.48%, 52.37% and 5.57% respectively. Among them, the compound annual growth rate of operating income of digital solutions of financial institutions in JD.com is 100.5 1%, and that of digital solutions of JD.com government and other customers is 239.05%. Innovative business is becoming a key factor to promote the rapid growth of JD.com.

Chen Shengqiang, CEO of JD.COM Mathematics Department, once concluded, "We always think about the risks of the company and the ceiling of the company at the best time of development, and then solve and lay out in advance. 20 15, when internet finance was in full swing, we began to transform financial technology; In 20 17, financial technology was in the ascendant, and we began to lay out digital industries. "

Strategic innovation is not easy for enterprises, which means giving up businesses with mature profit models and opening up new battlefields. Behind the evolution of these businesses, we can observe that they have always followed a clear underlying logic, that is, on the one hand, they only do business related to science and technology, on the other hand, they always adhere to the principles of social value, long-term value and value.

Find another way and embark on the road of ToB growth

Time goes back to 20 13. Liu Dongqiang told Chen Shengqiang, who was in charge of JD.COM at that time. COM, that if JD.COM wants to do two principles of finance, one is to do the longest business, and it must be the hardest thing that everyone doesn't want to do; Second, if you can earn 100 yuan, it is enough to earn 80 yuan, not 20 yuan.

Backed by nearly 50 million active users of JD.COM Mall at that time, JD.com, who was also called Jingdong Finance at that time, could completely ride the dust in the internet finance industry with his payment business. However, JD.COM Mathematics has taken the initiative to choose a more difficult road.

JD。 COM's status as a retailer enables him to know exactly how many goods each merchant has, how much these goods are worth, how long they can be sold and when they can recover the payment. At the same time, JD.COM is also very aware of each consumer's credit data, as well as the demand for financial services and solvency. How to transform these valuable data into the credit assets of merchants and consumers through technical capabilities, so as to facilitate them to obtain financing services from financial institutions, became the core consideration of JD.COM Mathematics at that time.

Two months after its establishment, JD.com took the lead in launching "Beijing Baby" for the financing needs of suppliers; Four months later, "JD. The launch of "COM White Strip" is to meet the short-term loan demand of consumers.

Quickly complete the two business layouts of supply chain finance and consumer finance, and the Department of Mathematics of JD.COM will receive rich returns. However, at that time, Chen Shengqiang was thinking about building a bottom-level capability for a rainy day-"risk pricing", as a common bottom-level capability in the financial industry, which became a necessary option.

It is the first breakthrough of big data risk control that makes the business efficiency of JD.COM Digital Branch far exceed that of the industry: the bad debt rate and asset loss level of white note business are lower than the industry average by more than 50% for a long time.

Not satisfied with this, Chen Shengqiang has been thinking about another question: Where is the ceiling of the existing model? Which direction should I go to continue walking?

JD.com's accumulated low-level ability has become its unique advantage, and a brand-new growth path is coming out-from a "technology and finance" company with its own financial business in toC to a "financial technology" company in which toB provides technical capabilities and solutions for financial institutions. 20 15, JD.com became the first company in China to put forward "financial technology" and B2B2C service model.

It was this decision that opened the door to ToB in the Department of Mathematics in JD.COM. By the second half of 20 17, after 1 years of formal transformation, the cooperation between JD.com and financial institutions entered the explosive access stage.

It was also on 20 17 that head enterprises such as BAT began to do financial technology, and the whole industry realized the upper limit of financial services and the blue ocean of toB market. At this time, Chen Shengqiang is brewing a digital technology model.

2.0 to 3.0 Innovative business promotes smart city upgrading.

20 18, JD.com was officially upgraded to a digital technology company in the service industry. At that time, the scale of China's digital economy had reached 29.9 trillion, and digital China had begun to take shape.

A year later, the Department of Mathematics of JD.com has participated in the "Millennium Plan" to build a smart city in xiong'an new area. The block data platform jointly built by the Department of Mathematics of JD.COM and the new district will play the role of data gathering center, data management center, data service center and AI empowerment center in the new district, undertake the important mission of gathering the global data of the new district, coordinating the data management of the new district and realizing the data fusion application of the new district, and become the data base for building a digital twin city in the new district.

The scale of industrial digital market exceeds one trillion, which is a huge market being laid out by internet giants such as BATJ. However, the strategies of each family are different-Alibaba is better at exporting "home barrel" solutions with the core of China-Taiwan capabilities by virtue of its accumulation in the fields of supply chain, logistics, e-commerce, local life and finance; Tencent, another giant, focuses on the social field, and is better at opening up closed-loop channels of C2B2C.

Different from the above two companies, JD.com takes technology as the spear and deep application of industry as the shield, and has opened up a new path of industry digitalization by refining the digital operating system with the bottom logic output.

Xiong' an block data platform is by no means a case. Judging from JD.com's prospectus, the government and other sectors are actually innovative businesses in JD.com under the digital technology model, with a very fast growth rate, covering 30+cities with a population of 600 million, and cooperating with 40+ government service agencies.

It can be said that the digital technology industry has a broad prospect, and the digitalization of the industry in line with social values and national strategies will surely lead to unprecedented changes in the industrial ecology.

(Editor Zhang Mingfu)