data, chinese ants and how alibaba became the world’s largest retailer

Nick Smith [email protected]

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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


•  Facebook, Paypal, eBay and Instagram

•  Alibaba, WeChat, Didi Chuxing, Ant Financial

Alibaba Making business easier anywhere


•  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



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?”


Five core focus areas

User experience

Empowering brands

Digital marketing

Logistics

Financial services

Executive vision


“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


“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

•  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


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


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’


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"



Businesses must embrace an outcome focused, data-first culture


Data Powers Business

Internet of Things Hybrid Cloud Analytics

Digital Transformation Customer Centricity Compliance

Finance Retail

Telco

The new control point


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


Future-proof your investment with Informatica

Over $2 billion investment exclusively

focused on Data Management

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500+ partners

$1.1 billion revenue

300,000+ developers

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data, chinese ants and how alibaba became the world’s largest retailer

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