Management for Professionals Xiaoming Zhu Emerging Champions in the Digital Economy New Theories and Cases on Evolving Technologies and Business Models Management for Professionals The Springer series Management for Professionals comprises high-level business and management books for executives The authors are experienced business professionals and renowned professors who combine scientific background, best practice, and entrepreneurial vision to provide powerful insights into how to achieve business excellence More information about this series at http://www.springer.com/series/10101 Xiaoming Zhu Emerging Champions in the Digital Economy New Theories and Cases on Evolving Technologies and Business Models 123 Xiaoming Zhu China Europe International Business School Shanghai, China Translated by Xuehui Cao et al ISSN 2192-8096 ISSN 2192-810X (electronic) Management for Professionals ISBN 978-981-13-2627-1 ISBN 978-981-13-2628-8 (eBook) https://doi.org/10.1007/978-981-13-2628-8 Jointly published with Shanghai Jiao Tong University Press, Shanghai, China The print edition is not for sale in China Mainland Customers from China Mainland please order the print book from: Shanghai Jiao Tong University Press Library of Congress Control Number: 2018955919 © Shanghai Jiao Tong University Press and Springer Nature Singapore Pte Ltd 2019 This work is subject to copyright All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore Foreword I This is the second time I have had the pleasure of writing a foreword for one of Prof Zhu Xiaoming’s new books Emerging Champions in the Digital Economy is only one of the impressive tomes he has published over the last seven years Besides the ones on innovation that he has translated, his monographs mainly revolve around the theme of the digital economy In addition to his latest work, those that focus on the topic include Platform as a Service, E-payment Revolution, China’s Technology Innovators, and 10 Mega Business Trends in the Digital Age His fascination with the subject matter is understandable In today’s globalized digital era, Chinese companies are being transformed by a wave of innovation In such a fast-paced environment, business schools are faced with the challenges that come from having a limited number of textbooks and reference material on the digital economy This new book by Prof Zhu conducts a holistic study of both theoretical frameworks and business practices within the digital economy, a kind of theoretical innovation that is in line with the bold steps taken by China Europe International Business School (CEIBS) over the years As a pioneer in management education in China, CEIBS has long been committed to case development and case-based teaching that integrate theory with real business practices It has provided Chinese companies with local management insights and contributed to the world’s economic development by generating Eastern business wisdom The book Emerging Champions in the Digital Economy will present to the world firsthand academic knowledge on the development of the digital economy in China The eleven cases in the book showcase a vigorous and blossoming digital ecosystem With this ecosystem’s rapid growth, there is a need for more cases to be developed and more academic research to be done Fast-growing Chinese companies are a gold mine for cases on the digital economy Those written and presented by Prof Zhu in this book are not only informative, but also enjoyable to read This is not surprising, as he has fully embraced digital technology inside the classroom, skillfully leveraging multiple digital tools to facilitate case presentations As a result, his classes have been well received by MBA and EMBA students The digital economy has become a major trend that cannot be ignored We should embrace the changes it brings and take a lead role to further enhance its v vi Foreword I development As General Secretary of China Xi Jinping said during the opening of the 19th Meeting of the Academicians of the Chinese Academy of Sciences and the 14th Meeting of the Academicians of the Chinese Academy of Engineering, “The integration of internet, big data and AI into the real economy should be strengthened, and the digital economy should be further developed.” According to China’s National Internet Information Office’s “2017 Report on Digital China Development”—released on April 24, 2018—China has the second largest digital economy in the world With a total value of RMB 27.2 trillion, it is 32.9% of the country’s GDP In this large digital nation, Chinese companies are pioneers in the digital economy; they are at the forefront of technological innovation and commercial applications As the cradle for future global business leaders, Chinese business schools should proactively take the initiative, fully harness and leverage their impact, and push for further development of the vitally important digital era Shanghai, China Mingjun Li President, Professor of Management CEIBS Foreword II Professor Zhu Xiaoming has a very rich experience After an excellent education, he decided to become a government official While in many Western countries government officials are often associated with bureaucracy, the Chinese reality is completely different When Deng Xiaoping opened China in 1978, China was a very poor country lacking from education to infrastructures and obviously all kind of social services The Chinese government officers really became entrepreneurs in government projects and in state-owned companies that they really started and made a great contribution to the developing of China toward becoming the leading economy in the world Professor Zhu Xiaoming was one of those entrepreneurs as General Manager of Jinqiao Export Processing Zone Developing Co Ltd., and also Chairman of the Shanghai Foreign Trade and Economic Cooperation Commission and Shanghai Foreign Investment Committee From these positions, he contributed a lot to the development of Jinqiao as a very entrepreneurial model in the Shanghai environment From his government positions, Prof Zhu Xiaoming supported the launching and growth of CEIBS, and finally, in 2006, he joined the school as President During our years sharing the president level at CEIBS, I must say that we worked very well as a team and the school enjoyed the successful growth that it has always had Professor Zhu Xiaoming has always been a strong supporter of innovation at CEIBS and has been a pioneer, at international level, in stimulating the interest in digitalization as a source of innovation in the school process of teaching but also as a new technology which undoubtedly is impacting the management practice He already published a book with very interesting cases on how technological innovation was influencing the business model in some companies As I always remind, Peter Drucker, probably one of the biggest contributors in the field of practical management knowledge, highlighted the importance of the case method and, comparing management and medical studies, he said that in the world’s best University Hospitals, the leading doctors and professors often bring the medical students close to the patients’ beds and they discuss the patient case with all the medical analytical information available and the newest technologies And Peter Drucker said that in the best management schools, the best professors vii viii Foreword II also bring the real management problems to the classroom in the form of cases for students to learn and discuss Professor Zhu Xiaoming brings the cases to his books so that we can learn how to improve management through the introduction of digital technology as a critical source of innovation which today is needed to guarantee the success of companies This book is a great contribution to CEIBS and places the school in the front state of the management practice as we advance toward 2020 As President of CEIBS, I express my gratitude, my congratulations, and my respect to Prof Zhu Xiaoming for his continuous effort to follow the impact of innovation and specially digitalization to our basic concern: lead in management education on a global basis Shanghai, China Pedro Nueno Honorary President (European) CEIBS Foreword III It is an honor and privilege to write a few words for Prof Zhu Xiaoming who has been an accomplished entrepreneur, a well-respected government official, and more recently the president and professor for nine years at China Europe International Business School (CEIBS) During his tenure, CEIBS gained significant reputation as a global academic institution This book Emerging Champions in the Digital Economy is a clear reflection of his passion for digital economy driven by innovation and entrepreneurship It is a practical book designed to help senior executives in business and government who are looking to unlock the promise of digital revolution and translate this promise into a significant driver of global economic growth and prosperity It is a valuable resource for readers interested in the transformative ability of the digital economy to change fundamentally how we create and deliver customer value through innovation—and how the modern tools we use also reshape the way we collaborate and design our businesses and organizations It is believed that a significant contribution of the digital economy is that each time a company interacts with a customer it generates valuable data Such a data-driven economy will therefore impact everyone, whether you are a consumer, a business, a not-for-profit organization, or the government The author clearly articulates how the shift from the Industrial Economy to the Digital Economy will change the business architecture, business strategy, and the business model of corporations competing globally In particular, the book highlights that the digital revolution combined with cloud computing will drive the new economy toward a more Service Economy For firms, a service mind-set will not only create but also sustain competitive advantage in the marketplace Another key aspect of the book is its emphasis on the economic growth of China, which today has become the second largest economy in the world The book very well highlights the development of China’s strategy for the global digital economy The richness of the book comes from the illustrative examples of the Chinese companies and entrepreneurs as promising players in the field of IoT and emerging technologies Professor Zhu clearly highlights that the digital revolution is not only for enhancing operational efficiency and customer value, but also for organizational ix Digital Technologies Behind FBA 305 Shared Logistics Amazon has developed logistics sharing models to address the “last-mile delivery” problem in cities For example, the company has teamed up with Flywheel, a taxi hailing App, to provide one-hour delivery service using taxis near small fulfillment centers at the cost of USD per package After many years of R&D efforts, Amazon has built its global logistics and warehousing ecosystem, which has produced economies of scale By using the big data technology, Amazon can manage and transfer its inventory across the world according to user demand, making global cloud warehousing a reality Amazon Web Service (AWS) and Innovation Incubator Warren Buffett acclaimed Amazon as a “power station”, thanks in no small part to its cloud service “Amazon Web Service” (AWS) Ten years ago, Amazon was just an online retailer, with no involvement in business services Back then, nobody imagined it would one day become a cloud computing giant Amazon, however, has made it Amazon Web Service (AWS), including Amazon Simple Storage Service (S3) and Amazon Elastic Computer Cloud (EC2), has ushered in the era of cloud computing Amazon didn’t expand into the cloud computing business by accident In 2000, Bezos planned to create an online store to lease idle resources to startups, including Amazon’s own warehousing facilities, data storage equipment, and technological platforms (Liu 2016) Bezos noted, “It’s letting people create a business by remote control We think it can be a meaningful, financially attractive business one day” (Huxiu.com 2015) His efforts paid off The year 2016 marked the 10th anniversary of AWS After investing heavily and operating at a significant loss, AWS has established itself as the company’s most profitable business Its success has proven again that Amazon’s Flywheel Model has worked well Over the past decade, Amazon has kept pouring boatloads of funds into building data centers around the world so as to boost its AWS business While expanding its cloud computing business, Amazon has marked down the service prices By the third quarter of 2016, the company had made its 52nd price cut Lower prices enable AWS to attract more customers, generating more economies of scale Statistics from DeepField show that Amazon’s cloud servers handle 1% of all Internet traffic in North America, becoming the world’s 4th largest CDN (Feng 2012) AWS now takes up more than half of the global cloud service market, 10 times bigger than its next 14 competitors combined.15 It holds a dominant position, with 100,000 business clients from more than 190 countries (Liu 2016) Source: the U.S consulting firm Gartner’s 2015 Magic Quadrant 15 306 Case XI: Amazon’s DNA: Driving Technology … Andy Jassy, Amazon’s Web Service CEO, boiled down AWS’s success to the following factors: functionality and pace of innovation, partner and customer ecosystem, and experience.16 Functionality and Pace of Innovation AWS is far more innovative than any other cloud service companies In addition to its core business, AWS has stepped up its efforts in innovation: in the first half of 2016 alone, it added 422 new services and features versus 722 in 2015 New functionalities of AWS maintained a growth rate of 70% every year, except for 2011 and 2012 (Huang 2015) Partner and Customer Ecosystem AWS struck a big partnership deal with Salesforce,17 later AWS would offer internet access service to many key customers, including GE Oil & Gas, Kellogg’s, and Brooks Brothers It also expanded to Mumbai in the second quarter of 2016, making its network access service available in 13 technology infrastructure service depots globally AWS exerts a greater influence on customer ecosystem AWS, particularly Amazon Simple Storage Service (S3) and Amazon Elastic Computer Cloud (EC2), serves as a great incubator for startups, many of which have grown into big name companies in the industry, including Dropbox, an online synchronization service provider, Netflix, a streaming media and online video provider, and Airbnb, a short-term rental platform Thanks to AWS, those small but competitive companies have saved a great deal of time and cost otherwise spent on IT, focusing on developing new functionalities to meet customer demand AWS is trusted by the government for its great safety In 2013, the Central Intelligence Agency (CIA) awarded a USD 600 million cloud computing contract to Amazon, though IBM offered a lower bid Experience AWS started offering public cloud-computing services nearly 10 years ago, way ahead any of its competitors did AWS’s revenue in 2016 was estimated to be over four times Microsoft Azure’s, the second-largest provider (Business Insider 2016) Andy Jassy fired back in an interview with BI at Oracle’s CTO, who belittled AWS, October 14, 2016 17 Salesforce is a Customer Relationship Management (CRM) software service provider founded in March 1999 Salesforce (stock code: CRM) was listed on the New York Stock Exchange in June 2004 The company had been listed as the world’s most innovative company by the Forbes for four years 16 Amazon Web Service (AWS) and Innovation … 307 Amazon’s latest financial statement showed that AWS’ operating revenues in the first three quarters hit USD 8.7 billion; the profit margin was estimated to be up to 26.6% The once “profitless” AWS now maintains a steady growth, propping up other new businesses Amazon’s operating profit in the third quarter of 2016 amounted to USD 575 million, while that of AWS was nearly USD 2.2 billion; Amazon channeled the profit from AWS into purchasing video copyrights, improving logistics & delivery, and tapping into the overseas market Smart Hardware Ecosystem and Mysterious Lab126 Alexa/Echo “Alexa may be Amazon’s most loved invention yet, and she’s just getting better Because Alexa’s brain is in the cloud, we can easily and continuously add to her capabilities and make her more useful—wait until you see some of the surprises the team is working on now.” —Jeff Bezos Obviously, Alexa is the new favorite of Bezos Bezos had a long-cherished dream of improving Amazon’s ecosystem by developing smart hardware Except for Kindle, most of Amazon’s hardware products like Fire TV, Dash, and Fire Phone, delivered a lackluster performance Launched in 2014, Amazon’s Echo, a smart home speaker connected to Alexa, has become an unexpected market success “Alexa/Echo is the first product to really showcase the power of voice control in the home,” said Sonos’s18 CEO John MacFarlane, “Its popularity with consumers will accelerate innovation across the entire industry What is novel today will become standard tomorrow” (AI Era 2015) Over two years, Amazon has launched the 10-inch-tall Echo for USD 179, 6-inch-tall Echo Tap for USD 130, and less-than-2-inch-tall Echo Dot for USD 89.99 (the price was cut to USD 49.99 in middle/late September) By April 2016, Amazon had sold more than million Echo devices, among which million were sold during the 2015 Christmas season alone.19 Amazon has also introduced the next generation of Fire TV Stick, which comes with Alexa Voice Remote, at a price of USD 39.99 The company has also upgraded the software for Fire TV and Fire TV Stick, allowing voice search across more than 90 Apps and channels Behind Echo’s popularity is Alexa, a smart voice assistant In the third quarter of 2016, Alexa’s skill kit expanded threefold to have more than 3000 skills Users can ask Alexa through Echo to check their account balance, play the radio, math, and even shop on Amazon.com In 2011 and 2013 respectively, Amazon acquired Yap and Evi, both smart voice interaction technology providers, obtaining the required technology Compared 18 Sonos is the world’s leading smart home wireless speaker manufacturer founded in 2002 Source: report from Consumer Intelligence Research Partner 19 308 Case XI: Amazon’s DNA: Driving Technology … with Siri from Apple, Alexa is a latecomer, but it has been used in more real life scenarios More independent developers are working on Apps controlled by voice through Echo For example, Alexa can help you turn off your lamps, check your fuel tank gauge, and even flush your toilet in the future Moreover, an increasing number of smart hardware companies are integrating Alexa into their own systems For instance, Sonos, the world’s leading smart home speaker manufacturer, has introduced Alexa and Alexa-enabled devices to control its products LG and Lenovo also have a plan to integrate Alexa with their own products Amazon is expanding its smart home ecosystem with Alexa-powered Echo It is very likely that Echo will play a pivotal role in the smart home system, becoming an indispensable component in Amazon’s ecosystem Mysterious Lab126 Both Echo and Kindle come from the mysterious “Lab126” Founded in 2004, Lab126 is a R&D organization like Google X Lab126 works on cutting-edge technologies like smart hardware, wearable devices, and artificial intelligence Kindle, an e-reader launched in 2007, catapulted the lab into fame Bezos hoped the world’s best e-reader would make its way out of Lab126 and become a necessity to Amazon’s 240 million active users Therefore, he took a hands-on approach in developing Lab126’s projects, from the first Kindle e-reader to the Fire smartphone The first Kindle was developed in 2004, with the original codename Fiona From the start, Amazon has defined its hardware mission narrowly: “To build devices that disappear in the hand, with uniquely useful features.” To study the way people really read, Amazon built a “rabbit hole”—a reading room at Lab126 It was in this room that Amazon learnt people switched hands while holding a book roughly every two minutes, and 80% of all page flips were forward This is why Kindle Voyage features a page-turn buttons on both the left and right sides; the pageforward button is a bar, while the page-back one was a dot (Lin 2014) By April 2011, Amazon’s e-book sales had surpassed those of paper books According to a survey by Pew Research Center on American book readers’ reading habits at the end of 2012, 89% of the respondents said they had read no fewer than a printed book over the past 12 months; 30% claimed they had read at least one e-book (Shi 2014) Nowadays, Kindle has changed the way people read, synonymous with e-reading Lab126 has also designed and engineered devices, such as Fire TV, Amazon Dash, 3D Fire Phone, and Echo, but these are just a tip of an iceberg At Lab126, engineers are free to come up with any idea, even bold ones that other companies have never entertained Lab126 will “continue to invent and create new features, services and products to support this innovation” (Amazon’s Unknown Lab126 Will Add 27% More Workforce [EB/OL] 2014) Smart Hardware Ecosystem and Mysterious Lab126 309 Disruptive Innovation: Where Is the Next Growth Engine? The plaques hanging on Amazon’s Seattle headquarter towers, Day1 North and Day1 South, quote Bezos as saying, There’s so much stuff that has yet to be invented There’s so much new that’s going to happen People don’t have any idea yet how impactful the Internet is going to be and that this is still Day in such a big way Amazon’s net profit in the third quarter of 2016 hit USD 252 million, much lower than USD 857 million in the last quarter After a five-quarter winning streak, Amazon’s profit declined again Nevertheless, everyone is bullish on its prospects According to a survey by the Atlantic Monthly in October 2015 among 101 CEOs, investors and thinkers in the Silicon Valley, 91% of the participants believed Amazon would still “be in the business in the next 20 years” Amazon has reshaped the way people shop and read, providing platforms for logistics & warehousing, cloud services, and smart home… Nowadays, it has set off experimenting with offline retailing Amazon’s business philosophy may be best defined as “driving technological innovation in the digital economy” In Bezos’ eyes, Amazon would never stop innovating More inventions are on the way Acknowledgments This case is co-authored by Professor Zhu Xiaoming, Case Writer Qian Wenying, Research Assistant Shi Tianyu, and Research Assistant Zhu Yifan References Amazon Launches Physical Checkout-Free Convenience Store “Amazon Go”[EB/OL] (2016– 12–06) http://it.sohu.com/20161206/n475052207.shtml TAO S Without Checkout Lines, Amazon Disrupts Retail Industry by Launching Amazon Go [EB/OL] (2016–12–06) http://news.qudong.com/article/379507.shtml Chenxi, Amazon’s Five Tips for Startups: No PowerPoint during Meetings, Tencent Tech [EB/OL] (2015–04–24) http://tech.qq.com/a/20150424/002502.htm ANDERS G No Stores? No Salesmen? No Profit? No Problem for Amazon[J] MIT Technology Review, June 3, 2014 MCGINN D The Numbers in Jeff Bezos’s Head[J] Harvard Business Review, 2014(11) Jeff Bezos: Next Leader in Internet Industry? [N/OL] 21st Century Business Herald, 2012–05–05 http://money.163.com/12/0505/12/80O9T9A000253B0H.html#from=relevant Strategy & Show 2015 Global Rankings of R&D Spending[EB/OL] (2016–05–18) http:// www dtcj.com/news/573b298267157b7b2e8a9245 MCGINN D The Numbers in Jeff Bezos’s Head[J] Harvard Business Review, 2014(11) Guozi Philosophy of Bezos: Making Money in Industry with 2300% Growth [EB/OL] (2014– 02–26) http://www.tuicool.com/articles/J7NrYb LI Y A deep look into Amazon: Why did Bezos start with online book-selling? [EB/OL] (2012– 08–02) https://xueqiu.com/8689584849/22071620 Ruixue.The biggest Bookstore on Earth: 10 Things You Don’t Know about Amazon [EB/ OL] (2013–04–08) http://hb.qq.com/a/20130408/001095.htm LI Y A deep Probe into Amazon: Why did Bezos Start with Online Book Sales? [EB/OL] (2012– 08–02) https://xueqiu.com/8689584849/22071620 310 Case XI: Amazon’s DNA: Driving Technology … LIU S Low Profit but High Valuation: What’s behind Amazon’s Miracle? [EB/OL] (2016–10–27) http://www.chinaz.com/manage/2016/1027/601546.shtml QU D Amazon’s Development Strategy [EB/OL] (2000–08–17) http://www.emkt.com.cn/ article/27/2757.html FOB Business Forum How Amazon Reads Your Mind with Big Data? [EB/OL] (2016–09–02) http://bbs.fobshanghai.com/thread665955111.html Huixing Three Steps to Understand Amazon (2014 version) [EB/OL] (2014–10–13) https:// xueqiu.com/9241169410/32161455 Tech.163.com List of Mergers & Acquisitions by Amazon over 11 Years: Buy It If You Cannot Defeat It [EB/OL] (2009–07–28) http://tech.163.com/09/0728/21/5FBBVS6H000915BF html LI C How Amazon Builds Online Business Empire through Acquisitions? [J].Global E-businessman, 2013(5) No Lines, No Checkouts, Amazon Launched Physical Convenience Store “Amazon Go”[EB/ OL] (2016–12–06) http://it.sohu.com/20161206/n475052207.shtml China Business Why 20-Year-Old Amazon Is Able to Defeat 53-Year-Old Walmart? [EB/ OL] (2015–11–27) http://news.winshang.com/html/054/9758.htm ANDERS G No Stores? No Salesmen? No Profit? No Problem for Amazon[J] MIT Technology Review, 2014(6) Zhouzhanggui/Guojizhang Two Different Positioning Strategies of Amazon and Apple(I) [EB/OL] (20150928) http://www.jiemian.com/article/392359.html.20150928 Zhouzhanggui/Guojizhang, Two Different Positioning Strategies of Amazon and Apple(I), Jiemian.com, September 28, 2015 Ifanr.com 12-Year-Old Amazon China Found New Way to Do Business in China[EB/OL] (2016–08–13) http://qoofan.com/read/YGrpVaDBnQ.html WANG R Amazon China Launched Amazon Logistics Plus, Fully Opening Logistics & Delivery System[EB/OL] (2015–10–27) http://tech.ifeng.com/a/20151027/41497313_0 shtml Zhimingshuo Amazon ProvidedFull-Package Solutions to Attract More Business Users[EB/ OL] (2015–10–27) http://it.sohu.com/20151027/n424302795.shtml HUANG G Amazon’s Top Ten Unknown Logistic Technologies[EB/OL] (2015–11–27) http:// www.sohu.com/a/44749603_343156 HUANG G How Amazon Uses Top Ten Logistic Technologies and Big Data to Improve Fulfillment Operations? [EB/OL] (2016–01–25) http://www.iyiou.com/p/24003/ HUANG G Amazon: Amazing Logistic Company[EB/OL] (2015–11–13) http://weibo.com/p/ 1001593909173669692601 HUANG G Amazon’s Top Ten Unknown Logistic Technologies[EB/OL] (2015–11–27) http:// www.sohu.com/a/44749603_343156 DU M Beyond Your Imagination: Amazon’s Logistics Technologies[EB/OL] (2015–05–02) http://www.dfrobot.com.cn/community/forum.php?mod=viewthread&tid=11851 CHEN M How Amazon Uses Random Storage to Improve Warehousing Management Efficiency? [EB/OL] (2016–02–26) http://news.soo56.com/news/20160226/76242m1_0.html Cifnews.com A Probe into Amazon’s Warehouse Management System: Random Storage [EB/OL] (2014–12–09) http://www.cifnews.com/Article/12064 WANG J Magic Technologies of Amazon: from Robots to Internet[EB/OL] (2015–05–02) http://www.jqr5.com/news/hynews/466.html Logistics News, Amazon’s Unknown Logistics Technologies[EB/OL] (2016–01–20) http:// www.aiweibang.com/yuedu/82884617.html DU M Beyond Your Imagination: Amazon’s Logistics Technologies[EB/OL] (2015–05–02) http://www.dfrobot.com.cn/community/forum.php?mod=viewthread&tid=11851 CNET Kiva Robot Supports Amazon’s Eighth-Generation Fulfillment Centers[EB/OL] (2014– 12–03) http://m.cnetnews.com.cn/article/3040707.htm CHEN Q Amazon Acquired 30,000 Kiva Robots to Speed up Warehouse Automation[EB/ OL] (2016–07–27) http://www.jqr5.com/news/qynews/6932.html References 311 Tom Amazon Acquires Top Computer Vision Experts for Drone Program[EB/OL] (2016–05–11) http://tech.qq.com/a/20160511/070602.htm LIU S Low Profit but High Valuation: What’s behind Amazon’s Miracle? [EB/OL] (2016–10–27) http://www.chinaz.com/manage/2016/1027/601546.shtml Huxiu.com Cloud Computing Helps Amazon, Microsoft and Google Rake in Money[EB/ OL] (2015–11–09) http://wyhuxiu.lofter.com/post/2f16eb_8d97fbf FENG H How Long Amazon Will Take a Lead in Cloud Computing? [EB/OL] (2012–06–01) http://www.aliresearch.com/blog/article/detail/id/16154.html LIU S Two Sides of Amazon: from Online Book Sales to Cloud Computing[EB/OL] (2016–10–28) http://www.ebrun.com/20161028/198923.shtml HUANG Y A War between Two Retail Giants: How Amazon Defeats Walmart? [EB/OL] (2015– 12–01) http://wribao.php230.com/category/news/1023701.html Business Insider Amazon Fires back at Oracle over Cloud Superiority Claims[EB/OL] (2016– 10–14) http://view.inews.qq.com/a/TEC2016101402 AI Era, Next Big Computing Platform: How Amazon Echo Is Developed[EB/OL] (2015–11–20) https://www.huxiu.com/article/1511 LIN J Lab126: Unknown Company behind Amazon Phone[EB/OL] (2014–06–18) http://tech qq.com/a/20140618/075725.htm SHI B Does E-Book Revolution Come to an End? [EB/OL] (2014–07–31) http://b2b.toocle com/detail6188321.html Amazon’s Unknown Lab126 Will Add 27% More Workforce[EB/OL] (2014–09–25) http:// tech2ipo.com/87020 Congratulations Congratulations from CEIBS MBA 2017 Class 甘田, 严峻, 于淼, 袁亦方, 翟鸿宾, 周子瑞, 陆高, 邵其瑞, 孙牧宇, 吴海霞, 张 杨, 李文心, 王琳, 何冠, 姜之帆, 李哲, 肖笛, 张驰, 孙艺桓, 李潇潇, 刘念, 刘宁, 张 友, 祝阳, 彭继霆, 陈洁, 李万友, 唐锦, 王莹, 徐碧野, 杨成, 杨谨聪, 麦炜珩, 裴玉 剑, 邵禹铭, 盛圆圆, 肖波, 徐颖, 朱亦敏, 应俊, 卜冠华, 高利民, 马伟强, 赵 丹儒, 朱谷, 陈婧, 陈一丹, 高寒, 江訢华, 李梦平, 梁聪颖, 张继伟, 张巍, 周丽萍, 李培 强, 梁佳毅, 毛旻, 穆佩蕾, 裴晓峰, 汪浚喆, 陈灵珊, 方舟, 黄恂怡, 黄一凡, SHEN Han, 王琨, 甄永强, 林文进, 戚文佳, Jesse MILLER, Olga GREVTSEVA, Hwanhee LEE, 熊婷婷, 萧妃如, 何艳, Urs Ralph CASAGRANDE, 潘狄舜, 陆昱 彤, 杨永 寿, 翟莉花, 董佳, Dhiraj Kumar DAS, 石磊, 陈哲, Frank ZHENG, Arie FASMAN, 朱雅丽, Aldenizio Santos BEZERRA, 李可嘉, 刘伟, 朱颖, 唐嘉 航, 张进武, 林弈 圻, Mohit JUNEJA, 张笑宇, 王淳玮, 庄小祥, 林于平, 祝俪文, 文江南, 赵逸轩, Sai Cheng Chu, Lara Isabelle DEUTSCH, Rapisa TRAKULROONG, 韩西 沁, Vitid ASSAVARUT, Harrison Hang Xue, Amit JANGIR, Jeaseung RYU, Sneha Shikta DAS Congratulations from CEIBS MBA 2018 Class 殳浩丞, 边源, 陈凤娇, 陈敏, 陈首智, 陈维, 陈伟, 陈威全, 崔奕, 戴泽沁, 杜 鑫, 段志杰, 范丽, 冯导, 高晶, 郭志诚, 侯琢, 洪渝雯, 趙珣彣, 江山, 靳晶晶, 康 瑛, 李沫, 林静霄, 林霖, 刘冰清, 刘卓, 陆晓莹, 吕芳, 马路恒, 毛天娇, 庞凝择, 庞瑜 萍, 邱怡, 宋珏, 唐克家, 佟维, 曾琪轩, 王美评, 王硕, 王晓丹, 王寅寅, Chen WU, 吴乾, 肖海, 许坤, 杨浩翔, 杨柳青青, 姚屾, 叶滨, 游乐, 尤琪, 于立新, 曾嘉 佳, 张晨曦, 张晶, 张心书, 赵佳, 赵锐, 钟秋, 周婧, 周礼, 周茜, 朱慧尧, 朱坤杰, 朱 颖, Dennis Allen BRIDGEFORTH, Akshara AJITH, Won Kyun CHANG, 陈嘉 敏, CHEN Mo, Abhishek CHHABRIA, Jaehwan CHOI, Josephine DUAN, 甘 珏 旻, Hareesh GANAPATHY, HE Yunan, 洪佳琪, 贾非, 蒋俊杰, Andrew Jang KIM, Bo Ram LEE, 李 鑫 锢, Niraj LUNAWAT, Anukrit MAHAJAN, Swati MISHRA, Gary Kwanyi NG, Jacquerine Ruo Qi ONG, 潘莹莹, Rucy Ruoqi PENG, Chavanus RATTANAVIJITCHAI, 任义, Rituraj SHAILENDRA, © Shanghai Jiao Tong University Press and Springer Nature Singapore Pte Ltd 2019 X Zhu, Emerging Champions in the Digital Economy, Management for Professionals, https://doi.org/10.1007/978-981-13-2628-8 313 314 Congratulations 佘庆媛, 司洋, 万琉方, 徐嘉 骏, 杨柳青, 于立新, 于雯, 张明昊, 张文强, Lei Ming, Xishui Wen Congratulations from CEIBS EMBA 2013 Class 雷运清, 郑继华, 吴建钢, 蒋胜力, 李沛泓, 沈寅, 赵晓宇, 樊雪莲, 李宝令, 刘 志 坚, 束龙胜, 温松英, 吴大星, 徐强, 许星, 张宏俊, 张涛, 孙萌, 林育民, 张策, 张 琳, 莫维立, 钱俊雄, 张怡, 王小刚, 李淑君, 孟金强, 张楠, 刘瑾雯, 杨杰, 张江霖, 张铁人, 赵玉华, 邹继荣, 李丽, 刘光宇, 周海峰, 朱天聆, 陈奕鹏, 汪峥嵘, 王更, 香 允豪, 金卫东, 赖超辉, 彭钦文, 邱勇强, 杨华雨, 刘强, 陈继娟, 韩振亚, 吕克, 沈弘 磊, 沈天诗, 许冰 Congratulations from CEIBS EMBA 2014 Class 欧军辉, 吴文新, 陈肖宇, 李益峰, 吴海英, 夏宜, 张扬, 关翠微, 侯光军, 黄 锋, 黄 磊, 王新, 崔乃荣, 董战略, 季玮, 丁小博, 范若晗, 李琦, 连敏玲, 刘武东, 潘 建 平, 王伟力, 张俊, 张华伟, 赵晨海, 李婴, 杨冰, 张彦高, 夏海通, 朱琰, 郭军, 李 楠, 杨永刚, 张宇, 韩光, 李环燕, 谢军雄, 周博, 朱继军, 黄焕强, 蒋学东, 李增榜, 郑振江, 周聪 Congratulations from CEIBS EMBA 2015 Class 朴春旭, 曾熙, 秦忆, 顾斌, 师颖, 吴艳, 张育绮, 程力, 陈福炜, 冯欣, 傅正兵, 龚 睿, 顾首岳, 贺欣浩, 冷兆武, 周迪永, 白昊, 陈礼标, 樊华良, 桂蓉蓉, 罗杰华, 钱 秉真, 宋鸿羽, 夏丽君, 徐本增, 徐春枫, 张建忠, 陈建新, 陈旻, 陈薛, 杜成进, 黄 静怡, 刘育良(刘悦), 陆建辉, 沈晓彦, 吴蕾萍, 武良军, 徐恒, 叶弢, 于庆春, 郭洪 源, 李莹, 牛志贵, 杨海坤, 赵尔迪, 郑静, 朱明, 范俪琼, 胡建平, 亢腾, 李翼成, 祁 林, 曹永强, 冯超兰, 葛珊, 何宽华, 胡龙润, 李景武, 李向东, 宋晓冬, 谢浩森, 张洁 Congratulations from CEIBS FMBA 2013 Class 赵湘怀, 陈秋实, 方侃, 冯俐锋, 侯敏, 蒋岚雷, 蒋惟怡, 李菁, 刘海涛, 罗琤, 苗根, 丘剑, 寿筱雯, 王威, 文嘉, 翁博涵, 吴一丁, 熊靖宇, 杨洁, 杨慎筠, 俞艇, 张 冰 岩, 张娴, 张正中, 赵文杰, 郑文洁, 周杨彬, 邹剑平, 戴艳阳, 顾华园, 顾鸣杰, 管 瑞麟, 郝然, 黄芳, 黄谷丰, 金圣伟, 李骏, 林剑斌, 牛彦红, 邵栋伟, 徐佳圆, 徐嘉 宁, 杨磊, 尹映, 张耕悦, 张扬, 钟小琦 Congratulations 315 Congratulations from CEIBS FMBA 2014 Class 刘兴宇, 冯一峰, 王玉, 陈蓁蓁, 汪沙地, 徐淑红, 周琪, 朱超尘, 李铁铮, 崔恒 磊, 冯昊俊, 顾培艺, 顾贤斌, 赖永华, 蓝海平, 刘毅, 欧阳平, 潘跃双, 钱俊, 唐京 燕, 王洲, 吴天呈, 杨锐, 杨晓, 赵元章, 郑婷婷, 常小庆, 李健, 李宁, 茹雯燕, 汪一 帆, 谢衡, 徐麟, 薛晓明, 杨叶, 喻恺, 张浩, 赵甜 Congratulations from CEIBS Smart Healthcare Entrepreneurial Program 2016 Class 曹白燕, 陈懿玮, 狄峰, 丁海波, 冯韩, 郭慧, 韩振亚, 韩志毅, 侯占军, 胡永 卫, 姜 慧霞, 焦强, 揭业冰, 荆杰, 鞠悦, 雷晓兵, 李洪波, 李强, 李伟, 李永刚, 李宇 欣, 李直, 刘潇潇, 刘学, 陆乐, 罗莉丽, 马今, 闵磊, 彭徳镇, 邱铭, 沈波, 孙昊, 覃兴 炯, 唐元新, 王群, 王兴维, 王喆, 王正平, 卫俊雅, 邢科春, 徐超, 许逸, 阎红慧, 杨 国平, 杨羚, 虞奇峰, 郁国建, 翟靖波, 张以靖, 郑维义, 周际, 周勇, 朱函仪 Congratulations from CEIBS Smart Healthcare Entrepreneurial Program 2017 Class 曾金雄, 陈钢, 陈奇锐, 陈瑶, 陈宜顶, 陈兆先, 崔鹏, 崔亚丽, 戴珅懿, 戴征, 董小 蒙, 杜明, 范志强, 冯纲, 侯军, 赖华, 李成君, 李飞, 李红岩, 李江明, 李群智, 林 静, 刘鹏, 刘佳, 刘希东, 刘熙华, 刘弋青, 卢戌, 米志宾, 欧淑芳, 潘加奎, 潘学 才, 秦金平, 阮正泉, 桑墒, 邵源, 孙辉, 孙延, 孙颖丽, 塔尔盖, 唐堂, 唐昕, 王小 明, 王学兴, 王振涛, 吴东方, 吴诗展, 伍建萍, 姚秉伟, 姚志华, 袁峰, 张丹, 张强, 张志 强, 赵松青, 郑涵文, 周亚池, 朱国苗 Congratulations Zhu Yang and other 110 participants from the CEIBS MBA 2017 congratulated Professor Zhu Xiaoming on his newly released book Zeng Jiajia and other 103 participants from the CEIBS MBA 2018 congratulated Professor Zhu Xiaoming on his newly released book Fan Xuelian and other 53 participants from the CEIBS EMBA 2013 congratulated Professor Zhu Xiaoming on his newly released book Lian Minling and other 43 participants from the CEIBS EMBA 2014 congratulated Professor Zhu Xiaoming on his newly released book Hu jianping and other 61 participants from the CEIBS EMBA 2015 congratulated Professor Zhu Xiaoming on his newly released book Xu jianing and other 46 participants from the CEIBS FMBA 2013 congratulated Professor Zhu Xiaoming on his newly released book Cohort Cohort Cohort Cohort Cohort Cohort 316 Congratulations Zhao Tian and other 37 participants from the CEIBS FMBA 2014 Cohort congratulated Professor Zhu Xiaoming on his newly released book Zhang Yijing and other 52 participants from the 2016 Cohort of the CEIBS Smart Healthcare Entrepreneurial Program congratulated Professor Zhu Xiaoming on his newly released book Cui Peng and other 57 participants from the 2017 Cohort of the CEIBS Smart Healthcare Entrepreneurial Program congratulated Professor Zhu Xiaoming on his newly released book Zhang Feng and other 61 participants from the 2018 Cohort of the CEIBS Smart Healthcare Entrepreneurial Program congratulated Professor Zhu Xiaoming on his newly released book Postscript Professor Zhu Xiaoming, CEIBS It has been seven years since I started lecturing at CEIBS in 2011 I hope to take this opportunity to share with readers a few of my reflections on teaching Digitalize Course Content I began to deliver courses on the digital economy for MBA, EMBA, Financial MBA (FMBA), Execution Education (EE) and Smart Healthcare Startup Programme (SHSP) students at CEIBS in 2011 All of these courses, including Digital Learning (2011– 2015), Digital Healthcare (2012, 2013), Digital Finance & Inclusive Finance, Digital Finance (2013, 2014, 2015), CEIBS Smart Healthcare Startup Programme (2016, 2017) and Trends and Innovation (2014–2017), focus on digital technology and the digital economy, and tentatively combine traditional economics and management theories with theoretical research on the digital economy (e.g., the ten sub-frameworks depicted in the Introduction of the book) Over these years, these collisions between classical theories and cutting-edge experiments have brought much delight and inspiration to the students and me, as well as to guest speakers invited to our classes The Trends and Innovation course tailored for FMBA students was launched in 2013 In today’s fast changing digital world, students from the financial sector cannot achieve personal development if they ignore the digital transformation, and they won’t find the right path to transformation if they give up innovation My classes are designed to help students grasp the fundamental business trends of the digital era and seize opportunities for innovation Highlighting the theoretical framework and technological roadmap of “choosing the right innovation at the right time”, I work to inspire students to achieve digital and Internet innovation, start their own businesses and foster new business models As innovative technologies, including big data and IoT, have achieved material progress and have been put to practical use, smart healthcare has become a key theme of the times When CEIBS launched its SHSP in 2015, I was invited to serve as Programme Director and Founding Academic Director for the programme As a non-medical professional I needed cross into a new realm in tackling programme design and development I investigated more than ten 3A hospitals across China, © Shanghai Jiao Tong University Press and Springer Nature Singapore Pte Ltd 2019 X Zhu, Emerging Champions in the Digital Economy, Management for Professionals, https://doi.org/10.1007/978-981-13-2628-8 317 318 Postscript made on-site visits to multiple world-leading healthcare enterprises and invited a select group of experts to serve as guest speakers Offering both cutting-edge content and insights from experts, prominent academicians and industry leaders, the program has been well received in the field Focusing on the “digital economy”, CEIBS SHSP explores the most advanced digital medical treatment techniques and the digitalization of medical services, addressing topics such as “the cloud hospital”, which integrates cloud computing, IoT and big data, and personal health records and personalized medicine on the basis of data sharing Both my students and I are deeply impressed by the prospects of the medical sector in the era of the digital economy: a time when mobile healthcare is on the rise, precision medicine continues to unfold, and healthcare moves toward greater accessibility During my tenure as CEIBS President from 2006 to 2015, there was a long time during which I worked as president during the day, prepared lessons at night and gave lectures per the school’s curriculum My weekends were occupied by investigations and holidays by book writing From 2011 to 2017, I produced some 400 PowerPoint presentations and keynote speeches (on lean compilation, personalized services, customized teaching materials, and digital delivery) and about 20 cases Sometimes students would ask questions: “Prof Zhu, what’s your secret recipe for keeping up with current knowledge?” “How you manage to prepare customized teaching materials for students in different programmes?” “How you update your teaching cases so quickly?” I always gave the same answer: there are no shortcuts in learning, only diligence and dedication The ancient Chinese idioms wei bian san jue1 and pa Postscript Leveraging Digitalized Tools to Prepare and Deliver the Executive Programs shu ti jue2 describe the desired virtues a learner should show in acquiring and passing on knowledge In today’s digital world, it is actually much easier to be a good student Below are a few additional thoughts Digitalize Course Preparation Digital technology, when used wisely, enables quick searching, precise comparison and efficient collection; digital software facilitates fast documentation, accurate analysis and effective integration I sum up the following experience from the past seven years of teaching work: (1) In the Digital Learning class, I urged students to revise their learning approaches by applying digital software to deliver enhanced learning efficiency The classroom experience was improved with various interactive activities I’ve heard that many participants from the FMBA 2014 and 2015 Wei bian san jue: a saying that means “to study diligently” Literally: “The leather binding (of the bamboo scroll) has broken three times.” This idiom originates from the Records of the Grand Historian, describing how Confucius had read the Book of Changes so much that the leather chords binding the bamboo slats broke again and again Pa shu ti jue: originating from the History of the Song Dynasty, this saying in essence means that one should “sort the wheat [i.e., true wisdom] from the chaff” in the pursuit of knowledge Postscript 319 classes are still using these digital tools to share knowledge in group chats on WeChat Which technologies are worth trying? My favorite tools are as follows: in general, I will use a combination of multiple Apps, such as Mindnode, iMovie and Final Cut Pro, to prepare customized teaching materials and produce visual cases; I use Quick Graph to offer a vivid 3D representation of mathematical models; I apply 3Ds Max to produce and elaborate on the Six Forces of corporate competitiveness, and develop the seven-base-point three dimensional model to address the development of precision medicine; I use Zen Brush to help foreign students appreciate Chinese calligraphy; I use wireless projectors and wireless audio and video transmission technology to add convenience, vitality and a greater variety of interactive activities in class (2) In 2016, CEIBS took the lead among Chinese business schools in applying iFlytek’s voice recognition technology to the school’s teaching activities When delivering the SHSP in December 2016, I invited a renowned professor of Peking University to give a long-distance lecture to our students in Shanghai via the Conference System The spoken messages from the professor were immediately transformed into visual text on the screen in the classroom I tried iFlytek’s Instant Voice Translator when giving lectures to the EMBA participants in 2017 My words were instantly translated into English and displayed on the screen in the classroom iFlytek’s products can help remove barriers to cross-linguistic communication and smooth the classroom activities of international schools (3) In addition to voice recognition, image recognition is also an important technology in today’s teaching reforms CEIBS-Jinqiao Digital and Smart Learning Centre (ACIV-103), located in the school’s new academic centre on the Phase III Shanghai campus, boasts state-of-the-art multimedia technologies The Oblong system, for example, can enable gesture control of audio and visual media According to the system supplier, as of June 2017, only two universities around the globe were adopters of this system—Massachusetts Institute of Technology (MIT) and CEIBS About a hundred sensors are placed on the classroom ceiling to capture ultrasonic positioning data on site During classroom discussion, the instructor can use the gesture control system to have enormous data around the subject matters under discussion shown on the three projection screens and three additional high definition screens in the classroom I used these technologies when teaching the CEIBS EMBA programme (March 18–19, 2017), SHSP programme (April 14–16 and December 9–10, 2017) and MBA programme (May 21, June and July 2–3, 2017) and saw how fast page browsing, multi-screen image displaying, swift video switching for different discussion groups, and other tools could greatly enrich classroom interaction Students from all over the world can see firsthand how any gaps in digital technology between Chinese schools and top-tier international schools have nearly evaporated Since being put into operation, CEIBS-Jinqiao Digital and Smart Learning Centre (ACIV-103) has performed admirably and become a paragon of digital learning at CEIBS It has also attracted many Chinese and foreign universities and enterprises hoping to learn from the success at CEIBS Some students have also shown great interest 320 Postscript in applying the digital and smart software and hardware to their own businesses to coordinate internal office work and facilitate marketing efforts In the era of the digital economy, practitioners in education can explore ways to use digital technology to enhance what they teach and how they teach Without a doubt, digital technologies will become an irreplaceable source of competitiveness for high-quality teaching ... Xiaoming Zhu Emerging Champions in the Digital Economy New Theories and Cases on Evolving Technologies and Business Models 123 Xiaoming Zhu China Europe International Business School Shanghai, China... Introduction The book Emerging Champions in the Digital Economy has the digital economy as the main theme and explores into the new “1+10” theoretical framework, including the data economy, service economy, ... Digital Economy: New Theories and Cases on Evolving Technologies and Business Models (Chinese and English Editions), the Chinese translation of Managing Open Innovation in SMEs Introduction: From the