Jingdong vice President lee: why CXO is biggest killer innovation?

on [2014 IT worth summit], jingdong, senior vice President lee made a speech, how to interpret the jingdong do innovation. Below is the presentation in full, without my confirmation:
1, the CEO became chief innovation officer? NO!

if an enterprise organization hierarchy, employees make mistakes may be criticized by the management level, it is easy to let employees to rush in where angels fear to tread, without trial and error, innovation’s greatest resistance in executives, from the CEO.

if a company CXO or executives think of themselves as the motivation and source of innovation, the enterprise only in innovation, employees also said that the CEO is innovation of genius, it would be a terrible thing. This means that the Internet company’s chairman and CEO is chief product officer, other people are doing.

there are three behavior within an organization is essential. The first act is called autonomy – employees are willing to do yourself. The second behavior is cooperative, employees are willing to cooperate, share, open. The third behavior is competition, performance, evaluation and incentive bonus, promotion and salary.

however, if connect the three elements of a triangle. Every time can only choose one of the two elements. Choose autonomy with the competitive, will be enforced. Execution is as long as the result, not process, you need to execution, wiped out the innovation.
2, the innovation is produced by the two factors – autonomy and cooperation

innovation is produced by two other factors – autonomy and cooperation. Inside an organization if there is no information sharing and mutual cooperation, can’t break departmental boundaries, the organization innovation is hard to occur. If an organization has more than five layer, six to ten layer need layers of reporting, to work with another department, like a u-shaped tube to go one circle can be approved. The traditional management will stifle innovation, all employees are machines, there can be no innovation without respect and equality.

only when organizations not up and down the pecking, organization is the grid, and the flat instead of context, the power of the organization will be maximized.
3, jingdong innovation “liu triangle” four level
Since 2008, jingdong r&d team consists of more than 20 people development to the present more than 4000 people, has experienced three stages. The first stage is to follow the business running. The second stage is experienced a few years time, to drive business stage. Enter the third stage now, thinking about how to lead the business development and enterprise development.

jingdong’s mission is to make people’s life becomes simple happiness, all the innovation can be done around the mission. Jingdong innovation strategy is to “liu triangle”.

is divided into four levels: the top is the value to the user, product, service, price, user experience, brand, this is part of the visible. Below is the part of the invisible, including how to reduce the cost, how to improve efficiency, how to establish the company effective operation of the three systems, as well as required by the team. Innovation must first think of people, a innovative person and a man without the spirit of innovation, the biggest difference lies in whether love adventure. Do you dare to do one thing, even if their jobs could lose you? If not, you don’t have innovation spirit, innovation, curiosity, he likes new things, can motivate yourself, dare to try. Jingdong encourage innovation, and find such a man, only possible to make such people inside the organization innovation.
4, innovation three rules

innovation is the enterprise culture, the cultural emphasis on three aspects: the first is a continuous improvement; Disruptive innovation can not instant, from tiny place gradually ascending do called micro innovation.

the second should be continuous learning, because an organizational learning to share, no concept of collision is impossible to innovation. Third, it is failure, allowing employees to make new mistake, through a mechanism to ensure that he not make repeated mistakes. This is the management of things to do, when the team problems, find a mechanism to machine to prevent mistakes happen again.

jingdong, three dimension measure the values of innovation. The first is the cost and efficiency, and if you cause the operation cost of the whole company to drop the innovation, efficiency improvement. The second aspect is likely to generate new business, these new business, he is a new growth point. Third, is to enhance the user experience.

from a product’s life cycle, the dimension of the innovation can be divided into initial, growth period, mature period. The initial market is very small, don’t need a lot of promotion, the focus of the jingdong products is in place, the product innovation is the first; Development needs to occupy the market as soon as possible, to the internal process efficiency is high enough, this time is often with the efficiency of the process innovation is the key. To the mature period of time we need to do the service innovation, the service innovation can also out of an example we can see, I remember many years ago these sell home appliance stores them in order to obtain competitive advantage is only do the service innovation, because the price is the same, is the same thing.

where is different? Is a delivery time to help you do installation, then we do not only installation can also help you clean the health, don’t waste not only clean but also can get downstairs, this provide additional services is also an innovation, the three kinds of innovation are all need to support management innovation.
5, jingdong how specific innovation

jingdong in micro innovation there is a way, every manager is sending CARDS, three innovation requires three card issued to each quarter, to the people in the innovation. Make this CARDS accumulated to a certain number of employees, such as five can get a medal, stick on the work of my card, work card above a lot of MEDALS is the spirit of innovation.

do the theme of the second innovation, some theme activities, which are held by activities to encourage innovation, an example is the last year, made a theme is jingdong: jingdong website look like after two years, allowing employees to a team in the competition, the top awards. Site look like this topic, five years later received 50 group, finally through the review of many solutions into the direction of the future revision. A recent contest prize in three million, the total bonus of up to ten million. The innovation theme thrown out and resources support, found that workers are very active, and output is also very good.

the second theme of the game is about a recommendation. Recommend group has a higher index of before, he felt finish, simply allow everyone game, amateur team recommend effect than professional team we give a bonus of one million, then more than 20 people, now the last of the six teams in the final game. From the beginning to now a team of professional recommendation effect has doubled or because they are afraid of amateur team to catch up with them, this is very shameful thing, professional team also made a change in the internal, is to the original algorithm is divided into two group, its own internal competition up first. How to manage and balance innovation, it is an art.

the third innovation method, is an internal business incubator. Many employees are willing to venture, but without money, they are afraid of the outside world. Jingdong is the opportunity to internal innovation, the enterprise put forward good projects or topics, these subjects may not be supported in the existing department, or is there a way to measure success, is to encourage the staff in the internal business. Employees can write a business plan, through the investment commission approval, to give him money for people can be internal business, or after a year or one and a half years, the number of users of the entire project or sales of a certain degree, can graduate. After graduation we give him a reward, such as million dollars than or a large number of stocks, entrepreneurial project can set up an independent company, or incorporated into another company, in this way to encourage innovation, jingdong has five or six projects have been among the incubator.

I’m here to share one of our incubator project, called a “JD + & amp; Super APP “. Do hardware people often do not understand the Internet, hardware often don’t understand the APP, we do hardware often don’t know how to do a good job in marketing. Jingdong through a project solved the problem.

a common staff, the family bought a lot of intelligent hardware, he hoped the intelligent hardware can talk to each other, such as the temperature sensor and humidity sensor to achieve certain conditions can control air conditioning, when he found that the humidity sensor with two different air conditioning manufacturers that there is no way to realize universal. So this paper puts forward the ideas of such a smart hardware manufacturer conform to the standard can dialogue, and use of the technical ability for jingdong cloud platform and solve their technical problems.

jingdong provides an application, the application will let all the hardware that a device can go to find, manage, control, and linkage. The idea at the beginning of the year, jingdong investment committee approved and twenty people, products quickly to get out, when I was in July, there are including TCL, haier, huawei has been added to the platform. (finishing | xiao-qian mu edit | Zhang Yuting)