The difference between traditional industry and internet industry

I have experienced three companies, a medical device company, a state-owned enterprise and an internet enterprise. There are great differences between traditional industries and internet industries in product form, profit model, personnel composition and cultural atmosphere. This paper tries to analyze as follows:

1, product form: There is no doubt that traditional industries are entities with tangible products, while the Internet is a virtual product. This determines the organizational structure of the enterprise. The organizational structure of traditional industries must be the chain of R&D, manufacturing, sales and service, while Internet enterprises divide their business groups according to different businesses, which were basically independent before. Originally, the medical device industry implemented the enterprise group system, but the intertwined reporting relationship made the efficiency not necessarily higher than the traditional matrix organizational structure. On the other hand, in the Internet industry, the business division system is somewhat dominant, but this self-financing Alibaba model works well, and many businesses of the company are even directly split into independent listed companies, which is almost impossible in traditional industries. Therefore, the effective operation of the organizational structure is closely related to the product form.

2. Profit model: When sharing this, I have a sense of superiority with some Internet companies. When I came to the internet company, I found that money can be made so easily. Doing business is really difficult. If you want to make money, go to the Internet, finance and real estate. Internet and financial products do not need to be produced, which greatly improves the efficiency and delivery cycle. Of course, it also brings fierce competition. 98% of the profits of the industry are divided by the top three manufacturers. Small and micro enterprises with low profits are not only poor in income but also extremely risky, and they are always faced with devastating blows from policies and big manufacturers. How to quickly seize the market, win market opportunities and expand rapidly is particularly important for Internet companies. As an individual, when choosing an industry, it is better to consider the risk ability, not to go to start-ups, and to develop a unicorn company with clear prospects is a better choice.

3. Personnel composition and cultural atmosphere: This part is reflected in the corporate atmosphere.