"Internet +" Of Traditional Enterprises

In March 17, 2015, A shares listed companies in Songcheng, Hangzhou, launched a restructuring plan at night to acquire 100% stake in the six rooms.

Songcheng performing arts, known as the first performing arts in China, claims to have ten major tourist areas in Hangzhou, Sanya and Jiuzhai, as well as thirty major theme parks and fifty entertainment shows.

The six room, one of the first Internet video sites in China, has gradually developed into an Internet performing arts website, which is the main online entertainment platform for grassroots stars, and live in real time, integrating into the concept of "social networking".

One is Songcheng performing arts of traditional culture performing arts company, the other is emerging.

The six rooms of the online entertainment platform.

Through the acquisition of six rooms, Songcheng performing arts has realized the pformation of performing arts business from offline to Internet based online performance and social interaction, and has become another case of traditional M & a pformation.

Just before the announcement of Songcheng's performing arts, Premier Li Keqiang responded to Ma Huateng's proposal and formulated the Internet plus action plan at this year's National People's Congress.

In line with the motion of NPC deputy and Tencent CEO Ma Huateng, "Internet +" means using the platform of the Internet to make use of information and communication technology to integrate the Internet and other industries including traditional industries, and create a new ecosystem in the new field.

Simply speaking, "Internet +XX traditional industries = Internet XX industry".

In fact, the prelude of "Internet +" has long been lifted.

For example, Alibaba added the Internet to the traditional bazaar and had Taobao. In addition to the traditional shopping malls, there was Tmall, and the Internet plus payments had Alipay and even the current ant finance.

However, "Internet +" should not just be used by Internet companies to add traditional industries and Internet companies to the market. When the Internet is getting heavier and heavier, it is also an opportunity for traditional enterprises.

It is not that we fail to realize the importance and urgency of Internet pformation.

However, in the pformation of traditional enterprises, the action is slow, the execution is insufficient, and the way of thinking is limited, which is corresponding to the rapid expansion of Internet enterprises to the line.

Since the O2O model was put forward, the major Internet giant companies are almost scrambling to start the layout, and all kinds of start-ups are springing up.

If the traditional enterprises do not speed up their pformation, it is likely that only one result will be eliminated.

How can traditional enterprises brush up their own systems and achieve rapid pformation?

With capital for development time, talent structure, and reconstruction of thinking mode, it may serve as a way to regenerate the traditional enterprise + Internet pformation.

The experience of Internet companies includes expertise in technology, market, patent, product, management and enterprise culture. The effect of re learning of traditional enterprises is often not obvious.

This seemingly impossible copy experience can be acquired by traditional enterprises through mergers and acquisitions.

Through mergers and acquisitions, we can reduce the learning cost of traditional enterprises to accumulate experience, and save the time and cost of traditional enterprises' trial and error.

According to the investigation of traditional enterprises' Internet merger and acquisition cases, the traditional enterprise Internet mergers and acquisitions mostly include the following three aspects: (1) improving sales channels, such as traditional enterprises' efforts in e-commerce and O2O, mostly in order to pfer their sales channels to online.

(2) industry synergy, traditional enterprises introduce Internet technology and thinking through mergers and acquisitions, and innovate their industrial processes.

(3) cross border mergers and acquisitions, and some traditional enterprises are no longer catching cold in their original industry, and intend to gain new life by entering the new Internet industry.

Of course, at present, many traditional enterprises, especially listed companies' Internet mergers and acquisitions, may only be out of the need of "market value management", and "tell tales" to the capital market.

But the story is still largely logical. Otherwise, how can we persuade investors?

Of course, a logical story needs more powerful execution.