And how did it get there is such a short period of time? The answer lies in what a recent Harvard Business Review article highlighted, it's their ability to self-tune.
According to the @HarvardBiz article called The Self-Tuning Enterprise, Alibaba continually reinvents itself and continuously self-tunes in algorithmic-style thinking. As with a self-tuning algorithm, a company should be able to experiment, adjust and influence in a dynamic and complex environment.
For a company, it's about creating a culture that rewards flexibility, curiosity and staff empowerment so that the company can continually re-tool itself based on new market conditions. Self-tuning is a key component of this flexibility and this is especially important for companies in fast fashion or technology that face a dramatically changing landscape.
Companies trading in any sector that is unrelentingly disruptive should self-tune rather than point their bow on the horizon and set sail. Self-tuning means adjusting in smaller iterations rather than the clunky top-down strategic planning cycles that companies usually follow. It means experimenting and continually resetting the vision. But self-tuning requires a different corporate DNA.
What Alibaba has demonstrated is that excellence comes from having a pulse on the market and an internal mechanism to respond to it. Its self-directed and not centrally mandated. There are key elements to their success which include:
- Customer involvement
- Staff empowerment
- Continuous experimentation
And lastly, a note for retailers, Alibaba Group recently re-calibrated its vision and dropped the "e" from "e-commerce". Their vision now reads, "We aim to build the future infrastructure of commerce."
Given this change, as well as the findings of a recent report by Digital Deloitte about the fact that commerce has merged, retailers should take heed.
About Author:
Greta Paa-Kerner (@gretapk) is a guest lecturer on digital and affiliate marketing and a management consultant through Ganduxer Consulting. Visit her blog and LinkedIn profile