data, chinese ants and how alibaba became the world’s largest retailer
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Nick Smith [email protected]
+612 8907 4400
Data, Chinese ants and how Alibaba became the world’s largest retailer
Generational market shifts in data
©2017 Informatica. Proprietary and Confidential
Explosion of Data Data doubling every 2 years
Data in the Cloud Over 40% of all data in the Cloud by 2020
New Data Types (mobile, social, IoT)
200 billion connected devices by 2020
Business users 325 million business data users and growing
Source: IDC, Baird
Shifting our gaze East for innovation
©2017 Informatica. Proprietary and Confidential
• Facebook, Paypal, eBay and Instagram
• Alibaba, WeChat, Didi Chuxing, Ant Financial
Alibaba Making business easier anywhere
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• Founded 2003
• eBay had 73% market share*
• 2006 eBay exits China market
• How?
*Source: Stanford Graduate Business School (2010): Alibaba vs eBay China p.17
Ant culture
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©2017 Informatica. Proprietary and Confidential
eCommerce comparison
Singles Day “11.11” • $17.73B sold in 24 hours • $1B in first 5 minutes • 82% via mobile devices • 760M packages via 1.7M couriers
Black Friday • $5.27B total sales • $1.2B on mobile • 23% via mobile devices
Photo: Business of Fashion “Singles' Day vs Black Friday: Which is the Bigger Opportunity for Fashion?”
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Five core focus areas
User experience
Empowering brands
Digital marketing
Logistics
Financial services
Executive vision
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“Data is the blood of the new economy” Daniel Zhang, CEO
“Over the next 30 years, with computing power as the new ‘technology breakthrough’ and data as the new ‘natural resource’, the landscape of retail, financial services, manufacturing and entertainment will be transformed.” Jack Ma, Group Executive Chairman
“Alibaba defines itself as a big data company.” Zhang Jianfeng, CTO
“Alibaba is a data company” Joseph Tsai, Executive Vice Chairman
©2017 Informatica. Proprietary and Confidential
“eCommerce is just the first phase of Alibaba’s entire strategy… our ultimate strategy is to build the future infrastructure for global commerce.”
Zhang Jiangfeng, CTO
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• Founded 2011, 1.1B accounts
• 570m use daily – City Service
• 55.2% open it more than 10 times daily
• 639m active via smartphone
• 86.2% users are 18-36
• 83% use platform to purchase online + 300,000 off line stores
WeChat All-in-one app
Leapfrogging the Leapfrogs
Lunar New Year Red Envelopes • 6 day festival – 20m to 100m subscribers • 20m virtual red envelopes • Dominating the P2P market over Alibaba
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Photo: South China Morning Post “Even Grandma is ditching Hongbao for WeChat digital red envelopes”
• Founded Sept 2012
• Valued $35bn
• August 2016 Uber exits China market, invests instead – 17.7% ownership
• Apple invested $1B
• Now 2nd largest global online payment transaction platform
Didi Chuxing More than a journey
• “A lot of people think, oh, you’re just a ride sharing company. But, in reality, we are a data company” Jean Liu, CEO Oct 2016
• Great Tidal Strategy vision to solve traffic problems via DiDi research institute
• 90% accuracy in predicting rides 15 minutes ahead of time
Didi Chuxing More than a journey
What do these examples show?
1. Vision, alignment and culture 2. Solve issues that affect most people 3. Use data to create new business models and revenue
streams – constant reinvention
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Data powers business Process Cycle Times
Improvement
83%
39%
Data Driven Rest
Y/Y Revenue Growth
Reduce Operating Expense
27%
7%
Data Driven Rest
12%
1%
Data Driven Rest Aberdeen Group, ‘The Executive’s Guide to Effective Analytics’
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Only 4% of companies are part of the ‘information elite’
• 76% are constrained by lack of skills, culture, technology
Source: “How organisations can unlock value and insight from the information they hold.” PwC report
• 43% "obtain little tangible benefit from their information"
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©2016 Informatica. Proprietary and Confidential
Businesses must embrace an outcome focused, data-first culture
©2017 Informatica. Proprietary and Confidential
Data Powers Business
Internet of Things Hybrid Cloud Analytics
Digital Transformation Customer Centricity Compliance
Finance Retail
Telco
The new control point
©2017 Informatica. Proprietary and Confidential
Business Applications
Data Stores
DATA IS THE NEW CONTROL POINT
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Capabilities required for data agile organisations
Cloud, On-premise and Hybrid
Traditional data and Big Data
Business users and IT users
Integration with your
applications and
environment
Heterogeneous – support all
major platforms
Enterprise-class reliability
and performance
End-to-end data
management and
governance
Data First Requirements
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