Why is Lei Jun’s new book “Thinking about Xiaomi Entrepreneurship” worth reading?

The author of this article, Wang Yiyan, is a reader of Ai Faner for twelve years and a practitioner in smartphone-related industries.

It is often said that no one in the tech world has written a “book of failure,” and that no one has read it. Therefore, what remains in the world is often the study of success (not just the "success study" in the narrow sense).

Lei Jun's new book, "Thinking About Xiaomi's Entrepreneurship," adopts a new paradigm: successful people face failure (and success) head-on and draw strength from retrospectives. He called this paradigm the "Book of Recovering", which is also the first sentence of the book's opening.

If the hero is judged by market value, the current Xiaomi may not be called "very successful", so from this point of view, the new book is also a phased summary and unreserved sharing of the "kind man" Lei Jun's decades of business experience. I have seen many entrepreneurs on Weibo posting pictures and receiving books from Lei Jun. I believe that their feelings will be more obvious from a business perspective, and I look forward to their sharing after reading.

"Xiaomi Entrepreneurship Thinking" also has a positioning, which is an "internal reference book". After I finished reading it, I covered the book and thought about it. In addition to being a business thinking shared with the outside world, it is more like a business thinking for the 32,869 Xiaomi employees (2022 Q2 financial report data) Centralized value output. If these 30,000 people can unify their thoughts, think logic and act in the same way, it will be difficult for Xiaomi not to be "very successful".

Which disks are "Recovered Book" recovered?

The so-called "review" is to think and summarize what will be done again for those who have done well in the past and those who did not do well. "Xiaomi Entrepreneurship Thinking" has many summaries of what Xiaomi has done well in the book, so I won't repeat them here.

You may be more interested in what Xiaomi has done poorly in the past 12 years in the eyes of Lei Jun. The examples mentioned in the book are the wrong strategy of "mobile phone + AIoT dual engine", the MIUI development model of Xiaomi MIX Fold generation, the setback of offline expansion in 2018, the sloppy naming of "Redmi", the "three pits" of Xiaomi's car making, effective The traffic conversion, the early response to the network water army, etc. have been reviewed.

1. Review of Xiaomi's "mobile phone + AIoT dual engine" wrong strategy

Lei Jun said in the book, "The company's core business, core direction, and core goals must be unified, and there is no possibility of duality or even pluralism." "Organizations without boundaries will inevitably lead to blindness and confusion."

He came to this conclusion from his reflection on Xiaomi's concentration; and the problem of concentration was caused by the wrong strategy of "mobile phone + AIoT dual engine" formulated in early 2019. This was originally an internal strategy, but it affected users through the product. The negative example he cited was a non-smart pulsator washing machine priced at 799 yuan, which was characterized as a "partial organizational action."

This erroneous strategy was revised to "mobile phone × AIoT" in August 2020, making it clear that smartphones are still the core business, and other businesses are developed around mobile phones.

2. The MIUI development model of the Xiaomi MIX Fold generation hurts word of mouth

The MIUI function "PC mode" carried by the Xiaomi MIX Fold generation was immature when it was first released, and was criticized by high-end business users. The reason is that the MIUI team habitually adopted the Internet development model, and the functions were released first, and then continued to polish, but business users did not. buy order. Lei Jun called this habitual practice "carving a boat and seeking swords" and "wrong intentions", which seriously hurt his reputation.

He said in the book review that there is no word of mouth once and for all, and the threshold of word-of-mouth is constantly increasing, and word-of-mouth must be made from a developmental perspective.

3. Setbacks in offline channel expansion in 2018

In 2017, Xiaomi expanded its offline channels, engaged in a major battle in Henan, and expanded merchants to open stores centered in Anyang, Henan, and won 10% of the offline market share in Henan.

However, the "Anyang Model" was not fully verified, and it was promoted nationwide in 2018, which brought a serious setback to Xiaomi's offline expansion, so that after three years in the Henan battle, Xiaomi's offline transformation could not be launched again in 2020.

Lei Jun deeply reviewed the three reasons for this: the system/organization ability is completely lacking, and it is easy to lose control of the channel; it is a "serious mistake" for "Xiaomi Xiaodian" to engage in retail activities only with enthusiasm; there is no overall person in charge of the regional market, no People are responsible for the results.

4. The naming of "Red Rice" is an "extremely serious mistake"

At the beginning of 2011, Xiaomi mobile phones were initially positioned as flagship mobile phones. At that time, 1999 yuan was a high-end mobile phone among domestic brands.

However, the large number of shipments of "Redmi" (110 million units sold in three years after its launch) confuses the public perception of Xiaomi, and pulls the "Xiaomi" fever and high-end brand to a single low-price tag.

In addition, red rice started as "× rice" and made a bad demonstration. Subsequent ecological chain companies followed the naming method of "×mi" in large numbers, which further caused confusion in the public's cognition and "severely diluted" the potential power of Xiaomi's brand.

In the book "Thinking about Xiaomi's Entrepreneurship", Lei Jun also reviewed and reviewed the early methods of dealing with the network navy, effectively obtaining traffic conversion, and Xiaomi's "three pits" for car-making. I recommend everyone to read the original book.

The first disclosure of "sharp information"

From the perspective of breaking the news, the "scale" of "Xiaomi Entrepreneurship Thinking" is very large, which is one of the reasons why I called this book Lei Jun's business thinking "unreserved sharing" at the beginning.

However, unlike the chronological biography of "Invincible", which has a stronger story, the revelations in the new book are based on the thinking of 5 major parts. It serves "business thinking" rather than "hunting for curiosity".

1. I wanted to do e-commerce live broadcasts in 2018 , but I was filmed

In 2018, with the rise of e-commerce live streaming, Lei Jun also wanted to try it, but was opposed by his colleagues. The reason for the objection is that "live broadcast is TV shopping in the new era", and as an entrepreneur, you need to maintain your image (as strong as Mr. Lei, you will also encounter such resistance).

Until the tenth anniversary of Xiaomi in August 2020, Lei Jun could no longer bear it, because "there is no reason to separate me from the users". Directly interacting with users is not low, "only low practice, no low interaction".

The title deducted in this case is "Always be closer to the user".

2. Personally defend the right of Xiaomi employees to speak on Weibo

Lei Jun has officially confirmed that his Weibo is run by himself, not by a marketing or PR team.

In the section "Stick to the new media position at any cost", the book discloses an interesting detail. In 2019, Xiaomi's "principal of public relations at the time" sincerely hoped that Lei Jun would stop encouraging and ask his colleagues to post on Weibo, because once he said the wrong thing, the loss to the brand was immeasurable.

Lei Jun came forward to defend the rights of Xiaomi employees. He said that "if you are afraid to communicate directly with users because you are afraid of making mistakes, and give up the most efficient and direct new media platform", then Xiaomi's "mass line" will not be guaranteed.

Interestingly, in December 2020, Wang Hua took over from Xu Jieyun as the deputy general manager of Xiaomi’s public relations department. According to time speculation, the “principal of public relations at the time” in the book was the author of the book’s oral arrangement, Xu Jieyun. It can be seen that the blade of the "Book of Resumption" is inward and full of sincerity.

3. Take the initiative to talk about the "delicate relationship" with the ecological chain company

In the book, Lei Jun took the initiative to talk about the "delicate" relationship between Xiaomi and ecological chain companies that is often mentioned in the industry. The characterization he gave is that the two are "always a brother company".

He proposed the concept of "Ecological Chain 2.0", in which Xiaomi prefers to be a "leader who explores side by side with ecological chain enterprises and a coordinator of ecological maintenance".

In the "Ecological Chain 2.0", Xiaomi must go into the game to do basic capacity building, especially technical capacity building, including two aspects: cross-category general technology, import/reuse of Xiaomi Group's technical resources.

In the future, Xiaomi ecological chain products will have more "future attributes". This trend can indeed be seen from the Mijia smart hood purifier that was unveiled at the press conference on August 11 (the scene was repeatedly "slightly expensive" by Lei Jun) and the Mijia disinfection air purifier that is being crowdfunded. design.

4. The first version of Internet thinking "Seven Characters" is not "focus, extreme, word of mouth, fast"

The first edition of Lei Jun's "Seven Words of the Internet" is these seven words: interconnected, all-weather, fast. Formed in 2004 before and after the sale of Joyo.com.

The second edition is "focus, extreme, word-of-mouth, fast", which is abstracted from the Internet industry. The core expression is "efficiency" (the word "efficiency" is the core spirit throughout the book, mentioned more than 150 times), which is reflected in "trust".

Three details outside the book

Detail 1: Use 1/10 of the whole book to explain the "Seven Characters of the Internet"

 The book "Xiaomi Entrepreneurship Thinking" is 340,000 words, and the main content is about 310,000 words. Chapter 6 describes the "Internet of Seven Characters", which describes the core of Lei Jun's Internet thinking, about 31,000 words, reaching 1/10 of the book.

This is the first time in history that Lei Jun has broken apart and smashed the Internet seven-character formula of "focus, extreme, word-of-mouth, and fast". It is the first time that he has comprehensively talked about what "focus, extreme, word-of-mouth, and fast" is. How to do it. For those who follow Xiaomi and Lei Jun, this part of the content is full of dry goods.

On the other hand, let’s not talk about the text first, just look at the last title, “solve one of the most urgent needs at a time”, “have an uncompromising heart first”, “there is no eternal best solution”, “with the ultimate product and excellent Word-of-mouth-oriented", "Don't use tactical diligence to cover up strategic laziness"… They are not only "business thinking" for the public, but also a unified requirement and unified thinking for the 32,000 people inside. The reason for Xiaomi's "internal reference book".

Detail 2: Last minute revisions before publication

"Xiaomi Entrepreneurship Thinking", which was printed and published by the factory in August, actually wrote about the Xiaomi 12S Ultra conference in July 2022, and mentioned the upgrade of the imaging strategy in cooperation with Leica. It can be seen that before the release of the new book on August 11, if you count the time of the publishing house's revision, factory printing, etc., the book has been revised until the last moment. Lei Jun practiced himself and repeated the "change, change, change and change".

Lei Jun revealed on Weibo that the draft of "Xiaomi Entrepreneurship Thinking" was completed at the end of 2021 (born in the first half of 2020 on the occasion of Xiaomi's tenth anniversary review), and the manuscript took more than half a year to go to print. From another side, this book, as the "first book on business thinking", has undergone several revisions and repeated deliberation. If we don't understand it, it must be because we don't understand it deeply enough (dog head).

Detail 3: The humble "postscript" supports Lei Jun's ambitions and dreams

Lei Jun said at the beginning of "Thinking About Xiaomi Entrepreneurship" that he is not an economist and would not write a theoretical book. The whole book is indeed de-theoretical, and it is all the thinking and summary of actual cases from Xiaomi's 12-year entrepreneurial process.

However, when he explained what the "Xiaomi Model" was in the "postscript", he turned to economic theory for support. Including happiness equation, cooperative game vs non-cooperative game, cost performance model vs premium model, simplified aggregate supply and demand model, through theoretical derivation:

"In the fields of manufacturing and distribution, it (the Xiaomi model) is an innovative business model; in social, economic and cultural life, it represents a healthier and more simple consumption trend and value orientation; in the macroeconomic perspective, it It is an innovative and efficient development model.”

This is the theoretical basis for Lei Jun's dream – "to be a great company".

Combining "Xiaomi Entrepreneurship Thinking" reminds me of some netizens' comments. There are only a handful of Internet bigwigs who continue to speak up, and Lei Jun is one of them. Now that he knows the reason, he regards Weibo, WeChat video account, e-commerce live broadcast and other new media platforms as a means to implement the belief of "making friends with users". In fact, Xiaomi also regards "insisting on making friends with users" as the first half of its vision.

"Xiaomi Entrepreneurship Thinking" is not a story book (Xiaomi's biography "Invincible" and Jinshan's biography "Breakthrough" are story books), but generally more serious business thinking. For friends who are familiar with Xiaomi, what you see in the book is more of the "know how" behind the phenomenon, and feel the "distortion field" of Lei Jun's understanding of business up close (for example, the "cost-effectiveness" is almost stubborn insistence) . For those who don't know Xiaomi, you might as well use the word "efficiency" as a magnifying glass, and combine the ups and downs of Xiaomi in the book review to understand what is the best solution for a Chinese company to pursue "high efficiency".

In addition, there is a hidden line in the book, which is the patience accumulated by Xiaomi in the field of technology. Whether it is a GaN gallium nitride charger, a stainless steel middle frame with a cost of 400 yuan, a ceramic process, or a self-developed LDS laser ranging sensor for a sweeping robot, investment and research and development of smart factory robotic arms, etc., we can see that Xiaomi has been "quietly". Accumulating technology in a "touch" way – actually it's not "quietly", Lei Jun is cheering for Xiaomi technology everywhere, but many people (selectively) ignore it in online discussions, or the technology behind the product is naturally not so good Topic, "Xiaomi Entrepreneurship Thinking" completes this.

One last little detail. In the preface of the book, Lei Jun said that "Xiaomi Entrepreneurship Thinking" is "the first book on business thinking"; in the postscript of the book, he said, "The thinking and practice of the Xiaomi model has only begun." This is very Marvelous. Is there a second and third book in the "Business Thinking" series?

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