Why the Internet Leads to Business Model Change

The key to the sustainable development of a business model lies in the establishment of a corporate culture in the Internet era. He said that today's business model of enterprises are to change, because all enterprises' business model is built on the theory of division of labor, but the Internet eliminates the user distance, subverted the information asymmetry between the enterprise and the user, in the era of zero distance, the original business model are not good enough.

Zhang Ruimin said, in the Internet era, the traditional theory of division of labor and hierarchical system has been challenged, and now is the user can know all the information of the enterprise, and it is difficult for the enterprise to know all the information of the user, but now the driving force of the information technology era changed, changed into a platform, in other words, the scale and scope of the theory of the division of labor pushed to the extreme, that the larger the enterprise it is the division of labor more detailed, but the platform subverted the division of labor, the more the enterprise is the more the enterprise is the most sophisticated, but the platform is the most important thing to do. The larger the enterprise, the finer the division of labor, but the platform subverts this division of labor theory. The traditional economy of scale pushes the division of labor theory to the extreme, the larger the enterprise the more detailed the division of labor, but the platform subverts the division of labor theory. A platform is a bilateral and multilateral trading market, such as the current e-commerce, Taobao, Jingdong, etc. are developing rapidly.

The information between the enterprise and the user is asymmetric, but the traditional enterprise era is the information asymmetry of the dominant in the hands of the enterprise, while the Internet era led to the user dominated the enterprise. As management guru Drucker said, "The Internet eliminates distance, which is its greatest impact." Zhang Ruimin said that today's business model of enterprises are to change, because all business models are built on the theory of division of labor, but in the era of zero distance, this business model are not good.