The prospectus reveals the development logic of JD.COM Mathematics Department. "'To B' 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, investment in science and technology, and talents in science and technology, JD.com has completely become a toB company, and has completed its 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 4 1.48%, 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. In 20 15, when internet finance was in full swing, we began to transform financial technology; In the 20 17 year when financial technology was in the ascendant, we began to lay out the digitalization of the industry. "

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 social value, long-term value and value principles.

Find another way to embark on the road of ToB growth

Time goes back to 20 13 years. 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.

With nearly 50 million active users in JD.COM Mall at that time, JD.com, named Jingdong Finance at that time, could ride the dust in the internet finance industry with its payment business. However, JD.COM Mathematics took 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 familiar with 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 "Jingbaobei" 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 layout of the two major businesses of supply chain finance and consumer finance, and Jingdong Mathematics has already ushered in rich returns. However, at that time, Chen Shengqiang was thinking about establishing the underlying capacity for emergencies-"risk pricing", as a common underlying capacity in the financial industry, became a necessary option.

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

Chen Shengqiang is not satisfied with this. He 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 toB to a "financial technology" company that provides technical capabilities and solutions for financial institutions in to b. In 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 JD.COM Mathematics Department. By the second half of 20 17, after years of formal transformation, the cooperation between JD.com and financial institutions has entered an explosive growth stage.

Also in 20 17, 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.

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

The scale of industrial digital market exceeds one trillion, which is a huge market being laid out by internet giants such as BATJ. However, each family's strategies are different-Alibaba is better at exporting "family bucket" solutions with China-Taiwan capabilities as the core 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 industrial digitalization by refining the digital operating system with the bottom logic output.

Xiong' an block data platform is by no means a case. According to JD.com's prospectus, the government and other departments are actually innovative businesses in JD.com under the digital technology model, with a very fast growth rate, covering 300+ 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)