{"title":"From Tool Value to Business Value","url":"/en/posts/2022-from-tool-to-business-value/","date":"2022-11-30","type":"posts","content":"\u003cp\u003e\u003cem\u003eThis article is compiled from an Extreme New Live Share.\u003c/em\u003e\u003c/p\u003e\n\u003ch2 id=\"current-survival-rules\"\u003e\n  Current Survival Rules\n  \u003ca class=\"heading-link\" href=\"#current-survival-rules\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h2\u003e\n\u003cp\u003eCurrently, the nation, enterprises, and employees are all facing difficulties. At this time, don\u0026rsquo;t think too much about scaled growth; the most important thing is three words: \u003cstrong\u003esurvive\u003c/strong\u003e.\u003c/p\u003e\n\u003cp\u003eIn the course of Zhuge Intelligence\u0026rsquo;s development, we have also experienced several minor cold winters and faced several critical moments. Looking back, our understanding of these three words \u0026ldquo;survive\u0026rdquo; was not deep enough.\u003c/p\u003e\n\u003ch3 id=\"why-must-we-survive\"\u003e\n  Why Must We Survive?\n  \u003ca class=\"heading-link\" href=\"#why-must-we-survive\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h3\u003e\n\u003cp\u003eWith the development of the digital economy, China\u0026rsquo;s SaaS industry and enterprise services will continue to develop and penetrate.\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eIf you don\u0026rsquo;t survive, you will become cannon fodder for history.\u003c/li\u003e\n\u003cli\u003eIf you survive, you will usher in new growth.\u003c/li\u003e\n\u003c/ul\u003e\n\u003ch3 id=\"how-to-survive\"\u003e\n  How to Survive?\n  \u003ca class=\"heading-link\" href=\"#how-to-survive\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h3\u003e\n\u003cp\u003eEveryone must objectively analyze their current resources and tasks, then \u003cstrong\u003emake decisive decisions\u003c/strong\u003e:\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eFocus, cut off products that should be cut.\u003c/li\u003e\n\u003cli\u003eClearly calculate customer acquisition costs.\u003c/li\u003e\n\u003cli\u003eDon\u0026rsquo;t waste sales expenses.\u003c/li\u003e\n\u003cli\u003eImprove unit economics and per capita efficiency.\u003c/li\u003e\n\u003c/ul\u003e\n\u003ch2 id=\"advice-for-series-b-saas-companies\"\u003e\n  Advice for Series B SaaS Companies\n  \u003ca class=\"heading-link\" href=\"#advice-for-series-b-saas-companies\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h2\u003e\n\u003cp\u003eBy Series B, the business model has basically been validated, and it\u0026rsquo;s time for scaling. In the current economic climate, everyone\u0026rsquo;s business is challenging.\u003c/p\u003e\n\u003ch3 id=\"first-thing-account-for-two-ledgers\"\u003e\n  First Thing: Account for Two Ledgers\n  \u003ca class=\"heading-link\" href=\"#first-thing-account-for-two-ledgers\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h3\u003e\n\u003cp\u003e\u003cstrong\u003eFinancial Ledger\u003c/strong\u003e\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eFinancial statements, income statement\u003c/li\u003e\n\u003cli\u003eMain business revenue\u003c/li\u003e\n\u003cli\u003eCost composition and expense composition\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003e\u003cstrong\u003eBusiness Ledger\u003c/strong\u003e\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eNumber of new customers\u003c/li\u003e\n\u003cli\u003eSales conversion rate\u003c/li\u003e\n\u003cli\u003eCustomer renewal rate, retention rate\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eAfter clearly accounting for these, determine:\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eWhat is the actual customer acquisition cost for a customer?\u003c/li\u003e\n\u003cli\u003eWhat is the average payback period?\u003c/li\u003e\n\u003cli\u003eIf costs are high, what are the main reasons?\u003c/li\u003e\n\u003cli\u003eWhich segments should be scaled back and integrated?\u003c/li\u003e\n\u003c/ul\u003e\n\u003ch3 id=\"second-thing-strategy-adjustment\"\u003e\n  Second Thing: Strategy Adjustment\n  \u003ca class=\"heading-link\" href=\"#second-thing-strategy-adjustment\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h3\u003e\n\u003cp\u003e\u003cstrong\u003eNew Customer Strategy\u003c/strong\u003e\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eAbandon inefficient traffic acquisition methods.\u003c/li\u003e\n\u003cli\u003eShift to deep, segmented market approaches.\u003c/li\u003e\n\u003cli\u003eFind the customers with the best PMF among existing customers.\u003c/li\u003e\n\u003cli\u003eFocus on vertical fields, point-to-point new customer acquisition.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003e\u003cstrong\u003eExisting Customer Strategy\u003c/strong\u003e\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003ePay more attention to existing customers; it\u0026rsquo;s easier to achieve growth from them.\u003c/li\u003e\n\u003cli\u003eCheck if renewals are being handled adequately.\u003c/li\u003e\n\u003cli\u003eDiscover value potential from existing customers.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cblockquote\u003e\n\u003cp\u003eGenerally speaking, if your existing customer renewal rate can reach 50-60%, there is certainly room to reach 80%.\u003c/p\u003e\n\u003c/blockquote\u003e\n\u003ch2 id=\"reflections-on-product-evolution\"\u003e\n  Reflections on Product Evolution\n  \u003ca class=\"heading-link\" href=\"#reflections-on-product-evolution\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h2\u003e\n\u003cp\u003eSince research and development began in 2014, it has been approximately 8 years. During this process, we have witnessed the rise and fall of various industries, and also seen the internet gradually penetrate all walks of life as an infrastructure.\u003c/p\u003e\n\u003ch3 id=\"evolution-of-the-internet\"\u003e\n  Evolution of the Internet\n  \u003ca class=\"heading-link\" href=\"#evolution-of-the-internet\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h3\u003e\n\u003cul\u003e\n\u003cli\u003e\u003cstrong\u003e2015-2016\u003c/strong\u003e: O2O food delivery and ride-hailing services, connecting people, information, and services.\u003c/li\u003e\n\u003cli\u003e\u003cstrong\u003e2016-2017\u003c/strong\u003e: New retail, online and offline integration.\u003c/li\u003e\n\u003cli\u003e\u003cstrong\u003e2019\u003c/strong\u003e: Digital transformation.\u003c/li\u003e\n\u003cli\u003e\u003cstrong\u003ePresent\u003c/strong\u003e: Industrial Internet, digital economy foundation.\u003c/li\u003e\n\u003c/ul\u003e\n\u003ch3 id=\"zhuges-positioning-evolution\"\u003e\n  Zhuge\u0026rsquo;s Positioning Evolution\n  \u003ca class=\"heading-link\" href=\"#zhuges-positioning-evolution\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h3\u003e\n\u003cp\u003eInitially, Zhuge\u0026rsquo;s target customers were internet companies and even developers. Our tools and products were more about improving productivity.\u003c/p\u003e\n\u003cp\u003eNow, with the internet penetrating traditional enterprises, it\u0026rsquo;s a \u003cstrong\u003elogic of industrial upgrading\u003c/strong\u003e. We must respect the production relations within the industry and its business logic.\u003c/p\u003e\n\u003ch2 id=\"agile-closed-loop-open\"\u003e\n  Agile, Closed-Loop, Open\n  \u003ca class=\"heading-link\" href=\"#agile-closed-loop-open\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h2\u003e\n\u003cp\u003eA characteristic of Zhuge Intelligence products is helping customers start with specific scenarios:\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eThrough an \u003cstrong\u003eagile\u003c/strong\u003e approach.\u003c/li\u003e\n\u003cli\u003eThrough a \u003cstrong\u003eclosed-loop\u003c/strong\u003e approach that allows customers to see results.\u003c/li\u003e\n\u003cli\u003eThrough \u003cstrong\u003eopen\u003c/strong\u003e capabilities that integrate with the customer\u0026rsquo;s existing IT.\u003c/li\u003e\n\u003c/ul\u003e\n\u003ch3 id=\"agile\"\u003e\n  Agile\n  \u003ca class=\"heading-link\" href=\"#agile\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h3\u003e\n\u003cp\u003eInstead of a top-down approach that destroys the original system, it\u0026rsquo;s about finding opportunities within it. Gradually moving from one scenario to more scenarios, this is scenario agility.\u003c/p\u003e\n\u003ch3 id=\"closed-loop\"\u003e\n  Closed-Loop\n  \u003ca class=\"heading-link\" href=\"#closed-loop\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h3\u003e\n\u003cp\u003eWhen enterprises try new things, they worry about outcomes and effectiveness. From doing one thing to generating incremental ROI, that is a closed loop.\u003c/p\u003e\n\u003ch3 id=\"open\"\u003e\n  Open\n  \u003ca class=\"heading-link\" href=\"#open\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h3\u003e\n\u003cp\u003eZhuge Intelligence\u0026rsquo;s user segmentation value, product capabilities, and analysis results can be accessed via API, and real-time data can be accessed via PaaS.\u003c/p\u003e\n\u003ch2 id=\"pmf-priority\"\u003e\n  PMF Priority\n  \u003ca class=\"heading-link\" href=\"#pmf-priority\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h2\u003e\n\u003cblockquote\u003e\n\u003cp\u003e\u0026ldquo;Don\u0026rsquo;t blindly go to market before Product Market Fit is found.\u0026rdquo;\u003c/p\u003e\n\u003c/blockquote\u003e\n\u003cp\u003ePMF (Product Market Fit) refers to the optimal fit between product and market. GTM (Go To Market) is when a product enters the market.\u003c/p\u003e\n\u003cp\u003eBlindly going to market before PMF is found means your persona might not be clear, and your GTM strategy might not be the most effective. You might invest a lot of time and effort into advertising and building a sales team, but essentially, poor PMF is due to an unclear customer strategy and product strategy.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eTrue decisions are always few and effective.\u003c/strong\u003e\u003c/p\u003e\n\u003ch2 id=\"three-steps-to-deep-dive-into-vertical-industries\"\u003e\n  Three Steps to Deep Dive into Vertical Industries\n  \u003ca class=\"heading-link\" href=\"#three-steps-to-deep-dive-into-vertical-industries\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h2\u003e\n\u003ch3 id=\"step-one-select-industry\"\u003e\n  Step One: Select Industry\n  \u003ca class=\"heading-link\" href=\"#step-one-select-industry\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h3\u003e\n\u003cp\u003eDo not enter blindly. Start with general scenarios across industries, choose the industry where PMF is best, and assess how the business model of this industry is changing.\u003c/p\u003e\n\u003ch3 id=\"step-two-find-the-fit\"\u003e\n  Step Two: Find the Fit\n  \u003ca class=\"heading-link\" href=\"#step-two-find-the-fit\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h3\u003e\n\u003cp\u003eThe fit between the product and the customer\u0026rsquo;s future business growth.\u003c/p\u003e\n\u003ch3 id=\"step-three-get-into-the-business\"\u003e\n  Step Three: Get into the Business\n  \u003ca class=\"heading-link\" href=\"#step-three-get-into-the-business\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h3\u003e\n\u003cp\u003eUnderstand how leading and mid-tier customers conduct their business? Where does their main business revenue come from? How are internal responsibilities divided?\u003c/p\u003e\n\u003cp\u003eAt the same time, balance several roles within the business:\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003e\u003cstrong\u003eProduct User\u003c/strong\u003e: Does it significantly improve efficiency of use?\u003c/li\u003e\n\u003cli\u003e\u003cstrong\u003eDecision Maker\u003c/strong\u003e: Does it increase ROI?\u003c/li\u003e\n\u003cli\u003e\u003cstrong\u003eMiddle Management\u003c/strong\u003e: More concerned with SOP.\u003c/li\u003e\n\u003c/ul\u003e\n\u003ch2 id=\"biggest-lesson\"\u003e\n  Biggest Lesson\n  \u003ca class=\"heading-link\" href=\"#biggest-lesson\"\u003e\n    \u003ci class=\"fa-solid fa-link\" aria-hidden=\"true\" title=\"Link to heading\"\u003e\u003c/i\u003e\n    \u003cspan class=\"sr-only\"\u003eLink to heading\u003c/span\u003e\n  \u003c/a\u003e\n\u003c/h2\u003e\n\u003cblockquote\u003e\n\u003cp\u003e\u0026ldquo;Don\u0026rsquo;t blindly enter multiple industries before PMF is found.\u0026rdquo;\u003c/p\u003e\n\u003c/blockquote\u003e\n\u003cp\u003eBusiness within each industry is very segmented, and the needs and operations of different sub-segments vary greatly. When deeply engaging in a vertical industry, the first thing is \u003cstrong\u003efocus\u003c/strong\u003e.\u003c/p\u003e\n\u003cp\u003eFurthermore, each industry has its development stage and rhythm; it\u0026rsquo;s essential to enter a thriving industry at the right time.\u003c/p\u003e\n\u003chr\u003e\n\u003cp\u003e\u003cem\u003eOriginal link: \u003ca href=\"https://m.tech.china.com/hea/article/20221130/112022_1187765.html\"  class=\"external-link\" target=\"_blank\" rel=\"noopener\"\u003eExtreme New Dialogue\u003c/a\u003e\u003c/em\u003e\u003c/p\u003e\n","description":"Cutting-edge Dialogue: Sharing Thoughts and Insights from 8 Years of Entrepreneurial Journey"}