Zhou Feng: the biggest challenge of online education in 2020 is not high traffic, but homogenization

 Zhou Feng: the biggest challenge of online education in 2020 is not high traffic, but homogenization

I think a lot of things, both in the short term and in the long term, will come to the opposite conclusion.

In the picture on the left, from the part of single wave and growth momentum, the growth rate tends to decline, which is the so-called law of diminishing returns of microeconomics. At present, you can see that the number of Internet users and mobile phone shipments will no longer grow in 2019, that is, the return on investment has declined, and the industry has encountered difficulties.

What do you say is the new wave? The answer is very simple. We are in the early stage of IOT and 5g wave, with great opportunities. The shipment volume of TWS real wireless headset and smart watch is growing rapidly.

Digitalization, urbanization and overall social and economic development all have such characteristics of periodic and periodic development. From the perspective of macro science and technology industry, the economy is currently in a process of growth momentum switching. Although there are difficulties in the short term, we are firmly optimistic about the long-term development of all walks of life in China as a whole.

So no matter how we look at it, we have reason to be optimistic for a long time.

Of course, we need to point out that optimism is based on a certain premise. Bezos is right: optimism doesnt mean youre blind or unrealistic. It means you focus on eliminating risk and improving your strategy until it makes you feel really optimistic.. That is to say, it is not blind optimism, which should be based on the premise of clear strategy. The premise is to see the reality clearly, correct the strategy and remove the risk.

This is also the main content I want to share with you today, how to constantly summarize cognition and improve our strategies.

Just in the past 2019, its a very special year for Youdao. Weve experienced a lot of changes. Three teams, namely cloud classroom, card building and MOOC of China University, joined Youdao, bringing all the education businesses of Netease together. The summer K12 online school started to burn money, which made us experience the test brought by large-scale customer acquisition. In August, Youdao dictionary pen 2.0 was launched, making our intelligent hardware industry The business has reached a new level. At the end of October, the company officially landed on NYSE, which has brought the company into a new stage of development

In my opinion, these changes are conducive to the long-term development of the company.

1. We have correctly adhered to the model of large class and double division, and have gone through the test of the market and found our own rhythm.

In the field of online education, this years important change is that the double teacher live class has become the mainstream mode, and the speed of consumer acceptance is accelerating. The good side of this summers promotion war is to increase the penetration of the live mode, with rapid growth in different learning stages and disciplines.

Of course, such competition also brings some risks. The biggest one, I think, is the risk of product and business homogenization. What is homogenization? Homogenization means that the products we provide are almost the same in general. Although each company says it has its own characteristics, they are almost the same in fact. This is a very dangerous signal, because homogenized products will eventually lead to price war, which has been proved over and over again by history, which is the result we do not want to see.

In the future, we think it will be a market that focuses on products, emphasizes differentiation, and ultimately looks at word-of-mouth. The leading course business should be a standardized and user-friendly product; it needs to have distinctive features in the core links, and it is not afraid of plagiarism; through good products and excellent services, the courses can be passed from mouth to mouth.

What we pursue is healthy growth. The definition of health is that every project should have a clear account. When the account is clear, there is no upper limit for investment, because we know that this is sustainable and in line with the basic business logic.

In fact, these views are the basic logic of business that is universally applicable. So, I think 2019, which just passed, is a year for online education to return to the basic logic of business.

2. Another harvest is to continue to tap the education intelligent hardware market, and we began to find that this market was slowly cultivated by good products. Today, the wave of IOT, including educational intelligent hardware, has come, and the business opportunities here are very good.

At the beginning of August this year, we released the second generation of dictionary pens, which perfectly implemented AI technology through the just need of word searching. We dont pursue the rules of intelligent hardware in the industry, consider ecology and build entrance. Our starting point is very simple. Is this product really able to solve user problems and experience far more than mobile phones? The second generation of dictionary pen proves that our idea is right. The concept of user centered once again rewarded us, and also let the team find out a differentiated ability, which also gave the team a lot of confidence.

Hardware is an industry with high barriers. Its hard to do with a long period of time. There are many holes. Weve also walked across the river by feeling the stones for two years. On the other hand, once the incision is found, it is not easy to be replaced by other products, but also has its easy to do aspect.

Its necessary to emphasize that, as I have always believed, innovation and R & D investment are not the same thing. R & D investment is only a necessary condition for innovation, not a sufficient condition. Jobs said: when Apple launched Mac, IBM invested at least 100 times more in R & D than apple.

3. To complete the task of the new year, we need every partner to do a good job every day. Our style is ingenuity and innovation, improving step by step, rather than doing subversive things.

I put forward four expectations.

First, adhere to the students and users as the center and inject heart. Take every student, every parent and every class seriously.

The name of a book written by Schultz, the founder of Starbucks, is pour your heart into it, which is also the business philosophy of Starbucks. I often think about what makes a brand like Starbucks different. Apart from the raw materials, taste and innovation of the products, as well as the culture of coffee, there must be a strong customer relationship and service level. Specifically, the employees care for customers, personal service, and the details of customers names on paper cups make Starbucks unique.

Our goal is to make the best online school for Chinese children. Our mission is to learn efficiently and start with a good way. Service is the key link. Here we should learn from successful consumer enterprises. To do a good job in service, if we only mention one thing, it is the first thing to be honest with our users. Even if the products that users dont need are purchased successfully once, we will lose them forever.

So consultants and tutors are the key link to build trust between brands and users. In the new year, we hope that consultants and tutors and colleagues are committed to providing users with personalized and excellent services. The company will also strengthen relevant training and introduce value assessment in the evaluation.

Second, all project teams and functional departments should strengthen cross team cooperation, put aside the constraints of organizational structure, and work together to do influential things, always bearing in mind that user value is the Polaris guiding our daily work.

When it comes to user value, I think of an exchange with Hengshui middle school. This is a very in-depth exchange between the headmasters and the team of Hengshui middle school and Hebei Hengshui middle school with my team after we went back to the market. Hengshui middle school is traditionally a very strong middle school. In 2019, more than 200 students in one of their schools were admitted to Tsinghua University and Peking University, and their quality education is getting better and better.

The headmaster said his task is to live up to the expectations of the children who depend on an exam to change their lives. From the perspective of the Internet, the essence of this thing is user value. Because this is the most important thing for these children. So remembering these things all the time is the first step to realize user value.

What they are thinking about every moment is to eliminate all interference, so that students can learn the most efficiently and get the most in every hour. We talked about teaching and educating people. We talked about a lot of educational tasks, that is, we have too many ideas and forget what is the most important thing. Let students learn to gain the most, the highest efficiency, of course, this is the most valuable thing for users.

The headmaster said that it was not for students to jump into the sea of questions, but for teachers in hengzhong to jump into the sea of questions. What is a teacher jumping into the sea of questions? The meaning of the teacher jumping into the sea of questions is that every question that the teacher does for the students is carefully selected and researched by the teacher himself. Only in this way can we find out the problems in the students study, and help the students to provide better practice and improve their study efficiency.

So you can see that Niubi in Hengshui middle school is not a one-off phenomenon, but the result of their constant efforts from the principal to every colleague to take the user value as Polaris. When you go to see hengzhongs teachers, their teachers are often not graduated from famous universities, but through such continuous thinking, continuous improvement, and continuous focus on user value, they have finally achieved national leadership.

Third, we hope that we will continue to implement lean thinking to achieve continuous improvement of business product services and processes. Lean management has a long history of success, from Toyota to general electronics to Amazon. Youdao and NetEase have been practicing.

But in the simplest terms, it is to constantly think about and practice how to improve the business effect and efficiency, and to work as a whole around the goal of user needs, and to run fast in small steps. Realize high quality, low cost and short time of product and service delivery.

I believe that every colleague with children at home can feel the weight of what we are doing now. As we said in the childrens product launch in 2019, we stand with all parents to help our parents solve problems.

Id like to ask you to also keep this in mind. A sustainable development company must not only revolve around business principles, but also care for people and promote social progress, which we need to pay attention to.

We need to forget the share price, Mr. Ding said on the day of the IPO breakfast. We should continue to ignore the market value and remain persistent in the intrinsic value created by each of us. This internal value, in turn, will be reflected in the accumulation of our daily work.

Here I would like to share with you a sentence from Graham, an American investment master. In the short term, the market is just a voting machine. Who is more popular in the market will be affected by many short-term noisy factors. In the long term, it is a weight scale, which measures value, all based on the companys own business performance.

Therefore, for each of our employees, dont pay too much attention to the stock price, just to see whether our daily work really creates a little value for users.

Source: Zhou Feng editor in charge: Yao Liwei and nt6056