Alibaba and the future of business

30 October 2018

Alibaba’s (one of the 10 most highly valued companies) astounding success can be attributed to its use of a smart business model, which uses data and mathematical algorithms to make operational decisions (supervised by engineers and data scientists) and enable faster adaptation to changes in customer preferences or market conditions. This new way of meeting consumer demands and preferences has already reinvented China’s retail sector and is expected to change how retail businesses operate around the world.

To become smart, businesses need to automate all of their operational decisions. The process of becoming smart involves a number of steps, starting with the conversion of information gathered through every customer exchange and communication into live data. Smart businesses also need to use software tools for every business activity and ensure continuous data flow and coordination between the players (buyers and sellers) in the business’ ecosystem. The final step towards becoming a smart business involves the application of algorithms to the collected data to generate smart business decisions.

As more retail giants such as Alibaba become smart, other retail businesses (especially those engaging with Asian markets) are encouraged to become smart as quickly as possible to ensure that they stay ahead of their competition and maintain or grow their customer base.

Read the full article on the Harvard Business Review website.  

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