Recently, Jingdong Numerical Technology submitted a prospectus to the SSE, and from the content of the prospectus, it can be seen that Jingdong Numerical Technology has been mentioning "toB" is not just a slogan. From the proportion of revenue, technology investment, technology talent ratio and other data, Jingdong Numerical Science has been completely a toB company, and completed the stage of landing.

According to the prospectus of Jingdong Digital Technology, the business of Jingdong Digital Technology is divided into three major categories: digital solutions for financial institutions, digital solutions for merchants and enterprises, and digital solutions for government and other customers. As of June 2020, the revenue share of these three major businesses was 41.48%, 52.37% and 5.57%, respectively. Among them, the compound annual growth rate of Jingdong Digital Digital Solutions' revenue from financial institutions reached 100.51%, and the compound annual growth rate of Jingdong Digital Solutions' digital solutions for government and other customers reached 239.05%, and the innovative business is becoming a key factor driving the high growth of Jingdong Digital Solutions.

Chen Shengqiang, CEO of Jingdong Digital Technology, once summarized, "We always think about where the company's risks are and where the company's ceiling is when the development is at its best, and then we go ahead to solve and lay out the problem.In 2015, when the Internet finance was in full swing, we began to transform the financial technology; in 2017, when the financial technology was in full bloom. We started to layout industrial digitalization."

Strategic innovation is not easy for enterprises, which means giving up the original business that has a mature profit model to open up a new battlefield. Behind the evolution of these businesses, we can observe that they have been following a clear underlying logic, that is, on the one hand, they only do business related to technology, and on the other hand, they always adhere to the principles of social value, long-term value, and value*** generation.

Another way to embark on the ToB growth road

Time back to 2013, Liu Qiangdong said to Chen Shengqiang, then head of finance at Jingdong, if Jingdong to do the two principles of finance, one is to do the most long-lasting business, it must be to do the most bitter people are not willing to do things; two is if you can earn 100 yuan, earn 80 dollar is enough, the other 20 dollars don't earn.

Relying on Jingdong Mall at that time has nearly 50 million active users, which was also called Jingdong Financial Jingdong digital science and technology can fully rely on the hands of the payment business, in the Internet financial industry, a ride. However, BOCO has taken the initiative to choose a more difficult path.

Jingdong's retailer status enables it to accurately understand how many goods each merchant has in real time, how much these goods are worth, how long it takes to sell out, and when it can pay back. At the same time, Jingdong is also very aware of the credit data of each consumer, as well as the demand for financial services and solvency. How to transform these valuable data into credit assets of merchants and consumers through technical capabilities, so as to facilitate their access to financial institutions' financing services, became the core consideration of Jingdong Digital Technology at that time.

Two months after its establishment, BOCOS took the lead in launching "Jingbaobei" for suppliers' financing needs; four months later, it launched "Jingdong Baijiao" for consumers' short-term lending needs.

The rapid completion of the layout of the two major businesses of supply chain finance and consumer finance, Jingdong Digital ushered in rich returns. At that time, Mr. Chen was proactively considering the issue of building the underlying capacity - "risk pricing" as the general underlying capacity of the financial industry has become a mandatory option.

It is the first breakthrough in big data risk control, so that the business efficiency of the Jingdong Digital Technology is far beyond the industry: the bad debt rate of the white business and the level of capital loss for a long time is lower than the industry average of more than 50%.

Chen Shengqiang is not satisfied with this, he has long been thinking about another problem: where is the ceiling of the existing model? To continue to rush, what direction to rush?

The underlying capabilities accumulated by Jingdong Numerical Science has become its unique advantage, and a new road to growth is called for - from the toC to do their own financial business "technology financial" company, into a toB to financial institutions to provide technical capabilities, In 2015, Jingdong Digital Technology became the first company in China to propose "financial technology" and the first company to propose a B2B2C service model.

It is this decision that opens the door to ToB for Jingdong Digital Science. By the second half of 2017, after more than 1 year of formal transformation, the cooperation between Jingdong Numerical Science and financial institutions has entered an explosive access stage.

Also in 2017, BAT and other head enterprises have begun to do financial technology, and the whole industry realizes the upper limit of financial services, and the blue ocean of the toB market. And at this time, Mr. Chen Shengqiang, is again brewing the model of digital technology.

2.0 to 3.0 innovative business to promote the upgrading of the smart city

In 2018, Jingdong Digital Science and Technology was officially upgraded to become a technology company serving the digitalization of industry. Just that year, the scale of China's digital economy has reached 29.9 trillion, and digital China has taken shape.

One year later, Jingdong Digital Technology has been involved in the construction of the smart city of Xiong'an New Area, which is a "millennium project". The block data platform built by Jingdong Numerical Science and the new district*** will play the role of the new district's data convergence center, data management center, data service center and AI empowerment center, assuming the role of converging the new district's regional data, coordinating the new district's data management, realizing the important mission of data fusion and application in the new district, and becoming the new district's data base for building a digital twin city.

The industrial digitization market size of more than trillion, is BATJ and other Internet giants are in the layout of the huge market, however, the strategy of each family is different - Alibaba, with its own accumulation in the supply chain, logistics, e-commerce, local life, finance and other fields, is more adept at outputting to the core of the middle platform capabilities, the "whole family bucket".

Unlike the above two, Jingdong Digital Technology takes technology as the spear, the depth of the industry application as the shield, through the refinement of the underlying logic output digital operating system, opened up the industrial digitalization of grove.

Xiong'an block data platform is by no means a case in point. From the prospectus of Jingdong Numerical Science, the government and other plates are actually Jingdong Numerical Science in the digital technology model of innovation business, the growth rate is extremely fast, has covered 300 + cities, crowd 600 million people, cooperation 40 + government service organizations.

It can be said that the digital technology industry has a broad prospect, in line with the social value and the national strategic industrial digitalization will drive the industrial ecological unprecedented changes.

(Edited by Zhang Mingfu)