Jack Ma Alibaba, Insights and an Idea
World Economic Forum
When Jack Ma graduated from university 30 years ago he was just starting Alibaba and America had a wonderful strategy to outsource service jobs to India and outsource manufacturing jobs to Mexico and China. This is outlined in a book called The World Is Flat by Thomas L. Friedman.
It was a brilliant strategy and the top multinational companies that outsourced manufacturing jobs and service jobs made a lot of money, like IBM, Cisco and Microsoft.
So where did the money go?
Over the last 30 years America had 13 wars, that's where 14.2 trillion dollars went. No matter how good a strategy is you're supposed to invest in your own people. Some of that money could have been used to build up the national infrastructure, create jobs for blue and white collar workers and improve the education system.
The rest of the money went to Wall Street then the financial crisis of 2008 wiped out $19.2 trillion destroying 34 million jobs globally. It's not that other countries are stealing jobs rather the strategy does not reinvest in the US.
100 years ago globalisation was controlled by several kings and emperors. For the last 30 years globalisation was controlled by 60,000 big companies. What if over the next 30 years we can support 20 million businesses across the board.
The world doesn't need one leader to tell it what to do but it does need to work together. Over the next 10 years China will import US$8 trillion creating many US jobs.
EWTP (Electronic World Trade Platform)
The WTO was designed for countries and big companies, there is no opportunity for small businesses so China wants to build an EWTP to support young people and small businesses using a mobile phone over the internet.
It should be designed by business people then presented to the government for endorsement otherwise there will never be agreement.
The Alibaba Model
Amazon is like an empire that controls everything that is bought and sold. Alibaba wants to build an ecosystem that empowers people.
The only way we can create many new jobs is by putting the profit back into the small businesses. The goal is to make the technology inclusive so everyone can use it.
Alibaba is using big data to check who is buying, who is selling and what is their address and if they are selling pirated goods they are deleted from the system.
Sometimes you need a third party to check the quality of the fake products because they can be better than the brand names. We cannot stop the manufacture of fake products so we must continue to fight them.
Sesame Credit Rating System
Using big data millions of people are given $5000 loans to start their businesses. The Sesame card is being used by mothers to check the credit rating of men that want to date their daughter, it's used when buying a house and renting a car. If you buy or sell fake products the sesame card will show it.
Hollywood Makes People Happy
The bigger the social problem that you solve the more successful you will be. The thing that Chinese people want most is happiness and health and movies make people happy and inspire people, that's why Alibaba is making movies.
No one makes money by catching whales they make money by catching small shrimp that's why Alibaba serves small business.
"The only certain day is yesterday."
"I came into this world not to work but to enjoy life.
I don't want to die in my office I want to die on the beaches." - Jack Ma
30 30 30
Every technology revolution takes about 50 years. Tech companies are created in the first 20 years then the implications are felt for 30 years.
The last 20 years have seen the creation of eBay, Amazon, Facebook, Alibaba and Google. The next 30 years are critical for the world:
- The most important thing to focus on over the next 30 years is to make the technology inclusive to change the world.
- Pay attention to the 30 year olds, the internet generation because they will build the world.
- Focus on small businesses with fewer than 30 employees.