Congratulations!!!!

You have completed the First Steps (Level 1) and are moving upwards. Awesome. Keep going.

For Level 2, there are 5 learning goals.

All concepts are in the Content Library, where you can see my overall digital strategy framework. There is also a Company Library, where you can search by company for articles and podcasts.

We are going into a lot more theory in this level. A lot of really big ideas.

Learning Goal 1: The basics of digital economics

• One of the reasons “software is eating the world” is because of the economics of digital. Things made of bits and bytes have different economics than physical goods (and services) made of molecules. And as more and more products become smart and connected (i.e., infused with software), their economics and business models are changing.
• There are quite a few quirks in this grab bag of digital economics, such as non-rivalry, zero marginal production costs, complements, consumer surplus, bundling and versioning. This is an introduction to the major ideas.
• The key learning goals are:
  • The basics of Mobike, Hellobikes and Ofo (i.e., bike-sharing and micro-mobility)
  • Digital economics: non-rivalry, zero marginal production costs
  • Porter’s 5 Forces
• Listen / read and write:
  1. An Introduction to the Sexy but Dangerous Economics of Digital (pt 1 of 3)
     1. Write 3 paragraphs in your journal comparing non-rivalry and zero marginal reproduction costs for physical books vs. ebooks. And for TV shows vs. movies.
  2. Add one here
  3. Review: Digital Economics (Jeff’s Asia Tech Class – Podcast 15)
     1. I have talked about non-rivalry, zero marginal production costs, bundling, and pricing / versioning. Which of these is important or will be important in your business?
  4. Jeffrey Towson – What is the Engine of Chinese Bike-Sharing? (Video)
     1. Write an answer to: Was bike-sharing and its growth about the economics of software? Scalability? Was it mostly venture capital? Why did it grow so fast?
  5. Can Luckin, Mobike, Didi or WeWork Be Profitable? (Jeff’s Asia Tech – Podcast 6)
     1. Write an answer to: Why is it so difficult to become profitable in digital economics? Is it just the competition? What are other factors? Can Mobike be profitable?

Learning Goal 2: The basics of digital platforms

• Much of the digital phenomenon is not about software and data technologies but about the emergence of digital platforms, which are the super-predators of the business world. These network-centric business models include Alibaba, Tencent, Amazon, Google and many others.
• The key learning goals here are:
  • Taobao and Tmall
  • Platforms vs. pipelines
  • Digital superpower #2: Build a platform business model
• Listen and read:
  1. How Did Alibaba Beat Everyone? Products vs. Digital Platforms. (Jeff’s Asia Tech Class – Podcast 4)
     1. Write 3 paragraphs in your journal comparing about how platforms begin and evolve.
  2. Review Lecture: Digital Platforms Are The Super Predators of Business (Jeff’s Asia Tech Class – Podcast 16)
     1. Write 3 paragraphs about how digital platforms evolve. Choose a company example and describe it in 2-3 phases.
  3. 3 Take-Aways from Alibaba’s Singles’ Day (Daily Update 11.13.19)
     1. Write 3 paragraphs on how combining entertainment with ecommerce strengthens Alibaba’s platform business model?
  4. 7 Reasons Digital Platforms Fail (Jeff’s Asia Tech Class – Daily Lesson / Update) 
     1. Write 3 paragraphs on the governance challenges of ride-sharing (Didi / Uber) vs. ecommerce (Alibaba / Amazon) vs. audience-buidlers (YouTube / TikTok)? Which is easiest?

Learning Goal 3: The basics of Alibaba’s marketplace platform

• Alibaba is a super important company in China and Asia. But it is pretty complicated. It is a digital conglomerate that has grown into multiple industries and geographies. But it’s core is a marketplace platform (Taobao and Tmall).
• The key learning goals are:
  • Taobao and Tmall
  • Platforms vs. pipelines
  • Digital superpower #2: Build a platform business model
• Listen and read:
  1. Podcast: Behind the Scenes with Alibaba on Singles’ Day (Asia Tech Class 5)
     1. No assignment. Just some listening.
  2. The Rise of Alibaba and China’s Super-Platforms in 7 Slides (Pt 1 of 3)
     1. Write two sentences explaining each of the seven slides.
  3. Alibaba’s New Retail Is Not About Supermarkets. It’s About Participation. (Pt 3 of 4)
     1. Write three paragraphs about how physical retailers are a new user group on the platform with new possibilities for use cases and engagement.
  4. What’s Next for Alibaba: My 10 Questions (Pt 1 of 2)
     1. Write three paragraphs about 1-2 big factors that will impact the evolution of Alibaba? Especially as relates to Singles’ Day.

Learning Goal 4: The basics of VIPShop and JD – and more on digital economics

• The competition between smaller e-commerce sites like VIPShop and larger ecommerce platforms like JD and Alibaba is really interesting. And it raises important strategy questions. How do you survive and thrive between the ecommerce elephants?
• The key learning goals for you are:
  • The basics of VIPShop and JD
  • Versioning and pricing
  • Digital-physical hybrids
  • Money wars vs. hyperscaling vs. blitzscaling
• Listen and read:
  1. Should Vipshop Build a Logistics Network Like JD? (Jeff’s Asia Tech Class 7)
     1. Answer the question in the podcast. If the CEO of Vipshop asked you what they should build in logistics, what would you say?
  2. JD and Competitive Advantages vs. Entry Barriers in China Retail (Daily Lesson – Jeff’s Asia Tech Class)
     1. Write 3 paragraphs on JD (or VIPShop) and whether they have stronger barriers to entry or long-term competitive advantages? Is their strength keeping out new entrants? Or is it grinding down competitors over time?
  3. JD vs. Alibaba: How Retailers and Marketplace Platforms Compete and Evolve in China (Jeff’s Asia Tech Class – Podcast 18)
     1. Write 3 paragraphs on the strengths and weaknesses of being a marketplace platform against an online retailer.
  4. JD Cool Stuff #1: Moneyball and Digital Marketplaces for China’s Farms (1 of 3)
     1. Just some fun stuff about JD. They have lots of initiatives.

Learning Goal 5: The basics of JD

• JD is a really important e-commerce company in China / Asia – and it is much less understood than Alibaba. But they have aggressive management and a history of bold moves. They are also doing a lot of interesting experiments in new retail right now.
• The key learning goals are:
  • JD
  • Digital Superpower #1: Transform the user experience
  • Digital-Physical hybrids
• Listen and read:
  1. Is JD’s E-Space a Game Changer for Department Stores in China? (Jeff’s Asia Tech Class – Podcast 10)
     1. Answer the question in the podcast. Is JD’s espace a game changer for department stores?
  2. 6 Things I Learned Working as a JD Delivery Guy
     1. JD has built logistics and delivery in-house. While Alibaba has used partners. Why did they do this?
  3. JD and the Power of Production Cost Advantages in Retail (Daily Lesson – Jeff’s Asia Tech Class)
     1. Write 3 paragraphs on how online (JD) and offline retailers (Carrefour) are different in terms of building production cost advantages.
  4. How Alibaba and Intime are Pioneering a New Digital Lifestyle
     1. Write 3 paragraphs on what will be the main activities of a digital lifestyle for consumers. Communication? Entertainment? Shopping? What will be most surprising?

You should try to complete these in about 2-3 months. And you probably want to do some of the Learning Goals twice. Speed is not important here. What is important is to build up your understanding. Repetition can be really helpful.

When you are ready, go on to level 3.

• Learning Goals: Level 3