Chapter 315 Two Divisions

Chapter 315 Two Divisions

Chapter 315 Two Divisions

There are problems with Zhai Yifei's ideas for the project.

This is something Yu Xing had discussed with Xiong Xiaoge and Xu Xin when he went to New York, but at that time he just treated it as a casual chat about industry dynamics. Now that he is back in Shanghai and has finished dealing with the important matters at hand, he is even more dissatisfied when he really faces the incubation on the fifth floor.

Big post bar, small post bar, optimized post bar...

When Zhai Yifei first met Yu Xing, they were talking about WeChat. At that time, he said that it was impossible to defeat the more powerful Penguin with homogeneous products. Now that it is his turn to start his own business, it is still inevitable that he will take his most successful product ideas from the past and apply them to the mobile Internet.

When Yu Xing first saw the project book, he was noncommittal and had no preconceived ideas. He also wanted to see if this thing would work, but the "Tongle" app used its own data conversion and retention to prove that it was indeed not very good.

Not to mention its potential to become a super app, whether it is the click-through rate of the app store, the download and installation rate, or the related retention rate, it is just at the middle level.

Yu Xing led his own team to create WeChat. Although he took advantage of his opponents' public opinion, he was well aware of the significance of various data.

The click-through rate of "Tongle" in the app store is only about 1%, the download and installation rate is about 15%, the proportion of users who launch it for the first time after installation is at most 45%, and only 30% complete registration and function guidance.

The next-day retention, 7-day retention and 30-day retention rates also generally hover around the average level.

Judging from the performance of various data, the foothold of "Tongle" is not solid.

Yu Xing reviewed the situation in his mind and thought that a big drawback was that the "small post bar" had not only a much smaller user base than the "big post bar", but also was unable to break down interests and hobbies into different categories, even though it was already an app with a total user base of over 100 million.

If something needs to be changed, it should be changed; if something needs to be cut, it should be cut. If there is only a pile of volume but no sufficient activity, it will still be a dead end.

The mobile Internet showed two characteristics in the second half of 2011: chaos and speed.

Yu Xing felt that it was time for the group on the fifth floor to reorganize.

Of course, considering the stubbornness that sometimes exists in startups, it would be more appropriate for these words to come from someone else.

Liu Jiankai played a very good role!

He has both the style of his former employer and many years of investment experience, so he is particularly suitable for both praise and criticism.

In fact, he hasn't even signed a contract with this side. He's just a part-time worker. If he really causes public outrage, it can be easily resolved.

As expected, after Liu Jiankai's retort on the spot, Zhai Yifei, who was stabbed in the face, took the initiative to find the investor upstairs only three days later.

The company "Tongle" actually has nothing to do with Bai Xiaosheng, Carbon Silicon Group, and Red Falcon Capital. It is purely a shareholding invested by Yu Xing personally, and then he gave him an office space and borrowed programmers.

Yu Xing was quite pleased with the change in Zhai Yifei's thinking, and in order to highlight the theme of the reorganization, he specially scheduled the meeting time on Saturday. Not only himself, Zhai Yifei, and Liu Jiankai, but also the investment subsidiaries of Carbon Silicon Group and Red Falcon Capital were present.

Red Falcon is a professional investment institution.

Carbon Silicon Investment makes strategic investments around its own business.

Yu Xing expressed his thoughts at the beginning of the meeting: "Whether it is Hongyun or Carbon Silicon Investment, I hope that everyone can invest in some projects where traffic can be shared. The space for mobile Internet is huge, but at the current stage, it is difficult for everyone to get traffic support from BAT. Therefore, we must tap the traffic of small and medium-sized projects in the industry and develop our own traffic."

"How do we develop our own traffic? We can meet the broad needs of users, as well as the segmented needs of users."

"How do we tap into the traffic of small and medium-sized projects? We can use investment and the traffic we develop as an exchange."

"Let me give you an example of user needs. I'll use a scenario I've mentioned on many occasions. I see many people holding their phones tightly on the subway and bus. The entertainment attributes of smartphones are much stronger than in the past, and their appeal is much higher, so..."

“Since the usage time of mobile phones has increased significantly, what is the broad demand that has also increased?”

Yu Xing looked around at everyone in the conference room, focusing on Liu Jiankai and Zhai Yifei.

Then he said: "It's traffic. Mobile phones can download content in advance, but more content is obtained through traffic. However, traffic costs money, so if users' traffic needs are met, development will come naturally."

"If we make a software that uses wifi to share mobile data hotspots, do you think it has growth prospects?"

Yu Xing mentioned a project similar to WiFi Master Key.

Liu Jiankai's eyes lit up when he heard this: "Hey, Mr. Yu, what you said... Hey, are you giving an example? Are you here to talk about 'having fun together'? Why do I feel that the idea of ​​wifi sharing is much better than 'having fun together'?"

Smartphones are growing rapidly, 3G networks are developing rapidly, and various content is changing with each passing day. In this case, it is completely logical to help users reduce their data traffic costs.

Zhai Yifei was a little embarrassed, but he also agreed: "Mr. Yu, this is a tool, a shovel for panning for gold."

Yu Xing nodded and said, "Yes, Tongle needs to direct traffic to accumulate users. I've been thinking recently that tools can quickly acquire users, such as Xunlei and input methods. Traffic from tools like these doesn't have much stickiness. People open them and leave them there after using them. But... tools can accumulate traffic and then direct it, and their effects will be reflected."

"Mr. Zhai wants to create content and research algorithms, which all require traffic and users to verify the correctness of the direction. If we can have our own traffic pool, it will undoubtedly be much more convenient and easier to invest in other potential projects."

Capital + traffic, this is the means that Penguin previously proposed for transformation.

Yu Xing felt that this method was quite useful at the current stage, but the penguins were busy fighting for their lives and had no time to continue with the reforms. So he considered how to play a similar role based on recent circumstances and his own current situation.

The capital is okay, as Hongshun still has some money left after investing in Carbon Silicon. But in terms of traffic, once WeChat is sold, the vertical traffic of the Bai Xiaosheng Forum is insufficient compared to the demand for app traffic diversion in the mobile Internet.

However, it’s easy even if there is no traffic, just do it.

Tool apps do not have sticky traffic properties, so it is not easy to develop revenue or obtain financing, but they can be used as a traffic pool to divert traffic.

What tools are widely in demand in the mobile Internet era?
Yu Xing has been very busy these days. He thought about Meitu XiuXiu, weather forecast, and mobile application store, but these have already been done.

It was not until the day before yesterday when he was having lunch at the Shaxian Hotel downstairs and overheard a customer complaining that his data traffic fee had exceeded the limit again this month that he put the logic of this demand into his mind.

The wifi master key is in line with the needs of the times and can be done, and the threshold for similar technology is not high.

He asked someone to check and found out that there were American companies working on this as early as 2001, but they were unable to do so due to various issues. There are currently no similar tools in China.

As for why this stage did not appear in China...

Yu Xing feels that the threshold is not high, but there is still a threshold, especially if you want to expand, you need support including but not limited to funding and local promotion.

With this in mind, it becomes a first-tier candidate.

As a professional investor, Liu Jiankai thought more and more that Mr. Yu's example was indeed very feasible. It's not about how much money it can make, but it is very feasible as a source of traffic.

Tools are not only tools for users, but also tools for traffic diversion. His thoughts turned again and again, and he said sincerely: "Mr. Yu, I remember you talked about the Internet stage, saying that the market is expanding, the number of users is growing rapidly, and then, as long as we can meet the ever-increasing needs of users, we can achieve success."

“WeChat can serve as a free text messaging service and can also make phone calls. It has really succeeded in satisfying this communication need!”

"Now this wifi sharing can meet users' needs to reduce traffic costs, and the success rate is also very high!"

"Looking back at your original analysis, meeting needs and achieving success is really insightful!"

Yu Xing had a ready-made success story in his mind. Hearing this, he just waved his hand and said, "No need to brag. Let's talk about how to carry out the mobile Internet project."

Liu Jiankai couldn't help but say, "Boss Yu, you can operate it!"

"Let's talk about business. I'm not giving you money to brag about it." Yu Xing's attention is still on today's reorganization.

Liu Jiankai was absolutely sincere, and seeing President Yu's attitude, he could only shut up in dismay. Hey, she used to be Xiao Tiantian, and now she is Mrs. Niu...

Zhai Yifei actually wanted to praise it out loud, it was really good.

However, after seeing Mr. Yu's response, he resisted the urge and said, "Mr. Yu, I've thought about it again and again. The entry point of Tongle is indeed problematic. This one based on interests and hobbies is not good enough. Later, I want to try to switch to funny content software. We analyzed this area and feel that some applications have better data conversion."

Yu Xing nodded slightly: "Let's give it a try. If the data is good, we will continue to promote it on a large scale. We will install it in mobile phones before they leave the factory and promote it in various application software stores. But before that, we will use the performance of millions of users as a screening method."

Tongle’s One Million was not successful, and the software after switching tracks will temporarily be made with this standard.

Zhai Yifei felt relieved when he saw that Mr. Yu agreed.

"Since we are going to do it and try it out, time is precious, so let's try a few more." Yu Xing hadn't finished speaking yet, "We can make a funny one, and then an information one. I think these two can be the main ones, and the others that can meet user needs can be used to fill the traffic pool."

"This traffic pool can be used to direct traffic to our own software, or we can use it to direct traffic to other software, and then have them cooperate with us to promote the software back."

Yu Xing said this and looked at Liu Jiankai: "I saw Mr. Liu threatening other projects before, saying that he would invest in competing products."

Liu Jiankai has already prepared the words to admit his mistake.

However, Yu Xing continued, "This is very inspiring. Let's make a competing product. If it succeeds, we will fill the traffic pool. If it fails, we will sell it to small and medium-sized fish, and then ask for their traffic as a condition to see what kind of traffic pool we can accumulate."

Liu Jiankai looked at Mr. Yu who was serious, and realized one thing...

I am an investor, and although I have a tough style, I am really just threatening and negotiating terms.

However, Mr. Yu has worked on many large and small projects in the past few years. He can really do it and can really pull it off.

If you succeed, it’s your own traffic; if you fail, you can get some traffic from outside.

After hearing these words, Zhai Yifei was stunned and asked, "Do it at the same time? Isn't this... a bit too much?"

"As long as the tools can meet the needs of users, we can try them. There are not so many undeveloped needs. It is best to find them. If you can't find them, we can look at those directions that have some thresholds but have not met the needs. This is a good place to start." Yu Xing said, "The gameplay of apps and computers is different. We should try more and try faster."

“Use tool apps to generate traffic. Once you have traffic, try the content direction. Once you have verified the direction, vigorously promote and optimize it. Then, we’ll see how far we can go.”

"We have Red Falcon Capital, Silicon Carbon Investment, and IDG and Capital Today, which we have good relationships with. Once we achieve a breakthrough in user scale and activity, it will be easier to get money."

"While Alibaba and Penguin are attacking each other, and mobile Internet is just beginning to develop, let's try to create a new super app."

At this point, Yu Xing also wanted to comfort Zhai Yifei: "Tongle's changes are the result of attempts, not the failure of attempts. Mr. Zhai, the world of mobile Internet is huge."

Listening to Mr. Yu’s plan, Zhai Yifei felt a surge of excitement as he saw the advancement of industrialization and modularization.

Liu Jiankai poured cold water on him at this time: "Well, I agree with Mr. Yu's idea, but this kind of investment, experimentation and construction still needs to have a clear ownership. What exactly does Mr. Zhai do? How will the equity be calculated later? His energy is limited. For example, wifiA sharing definitely requires offline scene access."

He looked at Zhai Yifei and said bluntly: "Moreover, the strategic plan has been drawn up, and the investment amount will not be too small. Does Mr. Zhai plan to pay for it himself, or can he bring in external institutions?"

Zhai Yifei was silent for a while, then said, "Boss Yu, Boss Liu, Tongle needs to change, and the company also needs to be broken up and reorganized. I have experienced the difficulties in all aspects of this project. Since this is the development strategy, I will lead the company and merge it directly under Bai Xiaosheng."

"Whether it's starting a business or incubating, we are all working towards the ultimate outcome." Yu Xing pondered, "Since Mr. Zhai thinks so, then... don't merge into Bai Xiaosheng, and put it under the Carbon Silicon Group."

Zhai Yifei was stunned: "Isn't Carbon Silicon Group working on the electric car project?"

Yu Xing nodded: "Yes, the electric car, which has the prefix of carbon, is centered around carbon, carbon-based organisms, the super app of the mobile Internet, and silicon-based organisms."

Zhai Yifei was confused, and the feeling suddenly became sci-fi.

Liu Jiankai always kept his boss's words in mind. Today, he mentioned the division of the previous Internet stages many times. At this time, he suddenly had an idea and guessed, "Boss Yu, are you referring to the data value that mobile Internet apps can generate?"

This is the stage that Mr. Yu talked about. Traffic will enter the era of stock, and then the value of data will need to be developed and mined.

Yu Xing smiled and said, "How come you have become so sharp after not playing with coins? What is the value of data? I still remember the report I saw when I was in school, saying that IBM's Deep Blue computer defeated the chess champion."

"I think we'll see huge progress in this area in our lifetime."

“That’s just what I said, and that’s just what I thought. We’ll talk about it later when we can really make a super app.”

"In short, Carbon Silicon Group will be divided into two business units, one is the carbon-based business unit, and the other is the silicon-based business unit. Tongle will be in the silicon-based business unit."

Liu Jiankai thought it was just a passing thought, but he felt that Mr. Yu was a little anxious. Could such a clear division be a last-minute idea? He should be allowed to be the bad guy before doing such a thing.

After listening to Mr. Yu's words, Zhai Yifei had only one word in mind.

He nodded in agreement: "Okay."

Silicon-based business unit.

Zhai Yifei likes this title very much.

Also, after the company is merged, you no longer have to talk about investment in a timid manner, but can ask the boss to allocate the budget with confidence.

(End of this chapter)