The role of operation in the process of enterprise creating value

David ogilvy, the founder of Ogilvy & Mather, the father of advertising, said: "For a company, the core is to make something and then sell it."

Make things → sell things,

Then, in the process of achieving the above-mentioned goal of making money from sales, there are many links that need to be coordinated, and the core links include:

We call these five links five key links for enterprises to create value.

So, the question now is, what role does operation play in the process of creating value for enterprises?

Let's take a look at the definition of operation given by Wikipedia:

Operation/operation management is the planning, organization, implementation and control of the operation process, and it is the general name of all kinds of management work closely related to product production and service creation.

To put it bluntly, operation management is to ensure that the process of transforming resources into marketable products is efficient and smooth. So we can know that for traditional enterprises, it is to help enterprises produce products more efficiently and deliver these products to consumers. So this involves a very critical link, supply chain management.

Supply chain management:

Here you can find that operation runs through every link of the whole enterprise to create value, including marketing, research and development, marketing, sales and after-sales. But overall, the whole operation is pre-sale, which belongs to the stage before product delivery. However, after the emergence of the Internet, the difference between the operation of traditional enterprises and Internet enterprises is that the traditional product sales process is a one-time transaction, that is, customers buy things without other services. Internet products are closely related to users, and the relationship it produces is stronger and deeper. Therefore, if the traditional operation is pre-sales, in fact, the operation of the Internet is after-sales.

We need to rely on deeper user relationships to create more enterprise value. For example, social products such as Zhihu, you log in every day; Online education products, you will regularly go to the website to study courses. Because these businesses are not one-off transactions, the more time users spend, the greater their value, and we can create more business value through these relationships.

So about * * continuous trading mode * *:

The first one, for example, if WeChat is used for a long time and the product knows you better, you can let advertisers sell advertisements on your WeChat. The second is repurchase. For example, when you use the free version of Mike Form, you may pay for some paid new features when they are introduced one after another. Third, for example, when you have used many products for a long time and feel that they are not bad, you may recommend them to your relatives and friends. You will find that in fact, in Internet operation, it is often in the after-sales link. That is to say, after the user buys your product, in addition to the problems, you need to complete after-sales support, and you need to make him feel comfortable after using it several times, so that he can successfully achieve the purpose he wants to achieve when buying your product.

Through operation, the enterprise has extended the life cycle of users in the enterprise, allowing consumers not only to buy products at one time, but also to repeatedly buy and recommend others to buy. In short, Internet operation also runs through every link of the whole enterprise to create value, but it is biased towards after-sales. Explain in common language:

Here, users recommend more users to buy refers to the recommendation rate, and buying more products by themselves refers to the repurchase rate.

At present, the Internet is still a relatively new industry, and there is no theory or college to give it an authoritative definition. We need to look at and understand the operation from a more comprehensive perspective, in order to understand the positioning of the operation in the enterprise more thoroughly.