Business spin-off "1 + 6 + N," China and Taiwan "light and thin" Alibaba welcome the most important change in 24 years!
On March 28, Zhang Yong, chairman and CEO of Alibaba Group, issued a full letter saying that Alibaba will launch a new round of corporate governance reform, business groups and business companies will set up boards of directors respectively, implement the CEO responsibility system under the leadership of the boards of directors of each business group and business company, and Alibaba Group will move towards the management model of a holding company in an all-round way.。
On March 27, Ma returned to China and appeared at Hangzhou Yungu School, an appearance that not only boosted the morale of Ali employees, but also crushed the previous flood of immigration public opinion.。
But one day after Ma returned home, Ali suddenly changed.。
Ali "one demolition six," the value of great release
On Tuesday (March 28), Zhang Yong, Chairman and CEO of Alibaba Group, released a letter from all employees, "Only self-change can create the future."。The letter mentioned that Alibaba will launch a new round of corporate governance reform, business groups and business companies will set up a board of directors, the implementation of the CEO responsibility system under the leadership of the board of directors of each business group and business company, Alibaba Group will be fully towards the management model of the holding company.。
It is reported that Ali's organizational governance changes have been unanimously approved by the Group Partners and the Board of Directors, respectively.。This round of change from the top of the group, redefining and structuring the governance relationship between Alibaba Group and various businesses, is considered "Alibaba's most important organizational change in 24 years."。
The most critical point mentioned in Zhang Yong's letter is that Ali Group will build a "1 + 6 + N" organizational structure.。According to the plan, under Alibaba Group, six major business groups, including Alibaba Cloud Intelligence, Taobao Tmall Business, International Digital Business, Local Life, Cainiao, and Big Entertainment, and "N" business companies (such as Ali Health and Box Horse) will be established, and other companies will also conduct independent operation and management accordingly.。
In this regard, Zhang Yong's letter also released an important signal: "The market is the best litmus test, and in the future, qualified business groups and companies will have the possibility of independent financing and listing."。Zhang Yong also said, "I hope Alibaba can grow out of a number of listed companies in the future, a number of listed companies below after a few years and can have children again, and out of a few more listed companies."。In this way, Alibaba's business is really heading for prosperity.。"
Boosted by the news, Alibaba surged more than 14% in the U.S. stock market overnight; in the Hong Kong stock market today, Alibaba-SW also opened nearly 15% higher in early trading.。Behind the surge in Ali's share price, it means that the market agrees that Ali's value has been undervalued for a long time, and that the value of the major business groups will be revalued after the listing in the future, which will release huge shareholder value.。
Zhongtai "light and thin," agile development
Simply put, the middle end is a mechanism that supports multiple businesses at the same time and allows information between businesses to interact and enhance.。By building a middle station, companies can convert stable resources in the background into resources that can be used at the front desk.。
From the perspective of Alibaba's development history, the deep adjustment of the organization is also constantly stimulating major technological and business innovations.。In 2011, from a Taobao to "three Taobao," grew out of Tmall。In 2015, Ali promoted the "China-Taiwan Strategy" and once became a benchmark for corporate governance in the Internet technology industry.。In 2020, Zhang Yong promoted the reform of the management responsibility system, and the separation of four major sectors to achieve diversified governance of Alibaba, the establishment of a number of independent operation of the ring company.。
But this change, Ali Group functional departments will also usher in orderly changes.。According to the full letter, the group's middle and back office will be light and thin, which means that Alibaba's "large and medium-sized" capabilities established since 2015 will gradually be absorbed by a stronger front office to serve more diversified development needs in a more agile manner.。
Although the China-Taiwan strategy has indeed brought great value to Ali in the past five years, it has not only realized efficient collaboration and collaborative innovation among various business units within the enterprise, but also hatched a number of phenomenon-level products, such as Box Ma Xiansheng and Taobao Special Edition.。But in a fast-growing industry like the Internet, a static operating model naturally won't work.。In particular, the emergence of more and more emerging competitors in recent years has made Ali's development challenging.。
In fact, Ali did not completely deny the value of the China-Taiwan strategy, but adjusted and optimized the China-Taiwan strategy according to its own development stage and changes in the market environment.。The "thin and light" of China and Taiwan not only reduces the maintenance and communication costs of the previously bloated and complex China and Taiwan, but also increases the flexibility and personalization of China and Taiwan for specific business scenarios and user needs.。This will be more conducive to Ali's disruptive innovation and cross-border integration.。
Finally, attach the original text of the full letter.
Only self-change can create the future - the decision on the change of organizational governance of Alibaba Group
Dear Ali:
As we approach the new fiscal year, I would like to begin by thanking you for your consistent efforts and contributions over the past year in the face of many new challenges.。
Self-change is always the best choice to keep your first heart and create your future.。Since its inception in 1999, Alibaba has been evolving and iterating in innovation and change, always using the advanced nature of production relations to drive the release of advanced productivity, create value and lead development.。Today, we will also welcome the most important organizational change in Alibaba's 24-year history.。
Today's Alibaba has grown into a multi-business, multi-format super-large organization with different business characteristics, different market environments, different customers, and different stages of development.。At the beginning of the new fiscal year, we are fully responding to the country's call to "fight for the economy" to help small and medium-sized enterprises to upgrade their digital capabilities and build a modern business digital infrastructure.。To promote the development of productive forces and create difference, we must first start with the transformation of production relations, which in turn must begin at the top of the group。
Eight years ago, in 2015, the Group comprehensively proposed the China-Taiwan strategy, forming the One Company under the governance model of "large and medium-sized Taiwan, small front office."。Starting from 2020, the Group has actively advocated building an agile organization and implementing a management responsibility system under a diversified governance structure, and has set up a number of independent loop companies.。On this basis, we will further deepen the reform and move towards a new stage of organizational governance - to build a "1 + 6 + N" organizational structure, that is, under the Alibaba Group, the establishment of Alibaba Cloud Intelligence, Taobao Tmall Business, Local Life, Cainiao, International Digital Business, Big Entertainment and other six business groups and a number of business companies, and the establishment of each business group and business company's board of directors, the implementation of the business group and。The specific plan is as follows:
Set up the cloud intelligence group, I am also the CEO;
Set up Taobao Tmall Business Group, Dai Shan (Su Quan) as CEO;
The establishment of local life group, Yu Yongfu as CEO;
Cainiao Group continues to have Wan Lin as CEO;
Established International Digital Business Group, with Jiang Fan as CEO.
Established Big Entertainment Group, with Fan Luyuan (Muhuali) as CEO。
In addition, other qualified business organizations will set up a number of business companies to fully implement corporate management.。
Making the organization agile, making the decision link shorter, and making the response faster are the original and fundamental purpose of this change.。After this adjustment, in addition to meeting the compliance requirements of listed companies, Alibaba Group's middle and back-office functions will be fully lighter and thinner, and the Group will fully implement the management of the holding company.。And the middle and back office capabilities we have accumulated over the years will enter the relevant business groups and companies in an orderly manner, continuing to play an important role in the development of the front office business.。Shared back-office services necessary for multiple business groups and companies, to be provided through a professional services firm model。I would also like to thank the group's middle and back-office team for their hard work over the past eight years.。
Facing the future, each business group and company must actively face the rapid changes in the market and the rapid development of technology, form their own development strategy, make rapid decisions, strive to forge ahead, be innovative, and face the test of the market.。Every Ali person, no matter which business group or business company you are in, must return to the state of an entrepreneur before starting, accept the baptism of the market with their own passion and strength, and create their own tomorrow.。We believe that the market is the best litmus test, and in the future, qualified business groups and companies will have the possibility of independent financing and listing.。
Changes in the market never stop, a new generation of technology waves continue to emerge, do not embrace change will become rigid, do not change themselves will be defeated by the times。When the water hit three thousand miles, 24-year-old Ali is ushering in a new development opportunity。We have the courage and sense of mission to change, and we have the ability and confidence to change.。To be a good company that has lived for 102 years, and to insist that there is no hard business in the world, you must always be self-driven, you must have the courage to change yourself, and you must stick to the path of self-change.。
The future belongs to the more determined, more agile, more embrace the future of people!
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