The volcanic engine strategy is emerging. Can we build a dual engine of to B service?


Source: Tech planet

Recently, byte beating has a new action on to B, revealing a new intention.

Tech planet noted that the volcano engine recently revised its official website. The updated official website released 20 + new products at one go, and adjusted the product system and slogan.

Volcano engine is a digital service and intelligent technology brand under byte beat. It was officially launched on the official website in June 2020. At the beginning, it was positioned as an enterprise technical service platform. After an interval of six months, it further focused on positioning and released a new product system… Behind a series of changes, where is the sword of fire engine? Exposed what ideas?

From “creation” to “growth”, the volcanic engine is clearer

The most significant change on the official website of volcanic engine is the increase in the number of products. According to the observation of students of Tech planet following byte beat to B service, there were only about 25 products of volcanic engine before. As of January 23, there were 48 products on the official website of volcanic engine.

The volcanic engine strategy is emerging. Can we build a dual engine of to B service?
New architecture of volcanic engine

At the same time, the product system of volcanic engine has also changed. At the beginning, volcanic engine services were divided according to product attributes, such as intelligent application, visual intelligence, data intelligence, multimedia technology, voice intelligence, cloud native, security, etc. The new product architecture system seems to be customer-oriented. It is classified according to the technical needs of b-end customers, and is divided into four parts: unified basic services, technology middle stage, intelligent applications and solutions, which are more systematic. The volcano engine is also directly presented in the official website Copywriting – one-stop enabling from the underlying system to the upper client.

On slogan, the volcanic engine previously used “technology to stimulate creation”, but now the first banner picture on the official website has changed to “intelligence to stimulate growth”, and the overall positioning has changed from “enterprise technology service platform” to “global leading enterprise intelligent growth engine”. From the perspective of Tech planet, this change shows that the strategy of volcanic engine is becoming clearer and more focused on the core issue of the second half of the Internet: after the “hydropower foundation” has been established, what it should do most in the era of digital economy is growth – using its own technical capabilities and combined with its unique growth methodology to help enterprises grow continuously and rapidly.

The volcanic engine strategy is emerging. Can we build a dual engine of to B service?
Volcanic engine fire program

It seems that this is not enough. The volcanic engine also released a growth boosting plan for the first time: the fire plan, which will invest 2 billion yuan in the first batch of growth subsidy funds, and is expected to help 5000 small and medium-sized enterprises land data empowerment.

Only traffic, the biggest misunderstanding of bytes

Starting from the “today’s headlines” of the first app in 2012, byte beat began to attack cities and land in terms of traffic. In only 8 years, it created a “blood path” from the big three of bat and grew into a unicorn that can not be underestimated.

As of August 2020, the number of tiktok users has exceeded 600 million, and the total MAU of the total product (1 billion 500 million active users) has been beating. In terms of revenue dominated by commercial advertising, byte jump achieved “three-level jump”, jumping from 15 billion yuan in 2017 to 50 billion yuan in 2018 and about 130-140 billion yuan in 2019. Also in this year, byte jump surpassed Baidu and became the second largest digital advertising company in China.

It is predicted that the revenue of byte beating will exceed 180 billion yuan in 2020. The continuous jump of revenue also deepens everyone’s misunderstanding that byte beating is only traffic.

In fact, there are two wings to take off in enterprise services: Flying Book + volcanic engine. For the same enterprise service, flying books are more famous, and their every move is always watched by the outside world, while the volcanic engine is relatively “introverted” and doesn’t make much noise.

However, as long as we do a little research, we will find that the volcanic engine has great energy. It makes the byte jump growth law technical and systematic, and has a huge imagination space. This can be seen from a speech by shomer, head of the volcanic engine.

Shomer said in 2020: “As a global Internet company, byte beat has grown rapidly in the past eight years. In this process, the accumulated technical capabilities, growth ideas and operation tools play a vital role. The launch of volcanic engine is to make the capabilities and tools of service byte beat from 0 to 1 and from 1 to n products and services, and open them to more industries and partners, Help everyone’s business develop rapidly and enhance their competitiveness. “

Tech planet believes that in order to enable other enterprises to “jump” like bytes, byte jump intends to form the flying book and volcanic engine into a dual engine of to B service, so as to further enable enterprises to do a good job in growth and business while achieving efficient enterprise organization and management.

Why “growth”?

In fact, growth has always been the main theme of the Internet and the only rule for enterprises to succeed.

In foreign countries, among Internet companies such as Facebook, Google and Amazon, growth has long been the core department. Among them, Facebook is divided into three parts: growth, core products and commercialization. The objectives of the business department and the overall objectives of the company can be simplified into a mathematical formula:

The volcanic engine strategy is emerging. Can we build a dual engine of to B service?
Simplified expression of mathematical formula of business department goal and company overall goal

Don’t underestimate this corporate structure model. Previously, Wang Ye, a returned entrepreneurial growth company and former engineer of Google’s advertising quality control department, said in a media interview that the growth revenue brought by a / B test optimization alone can bring $10 billion in revenue to Google every year.

In China, companies that also have growth departments and have significant results should be small enterprises. Not only did the tiktok create a miracle of 5 DAU 600 million years, but TikTok was expected to reach 1 billion 200 million MAU at 2021. The AI capability behind these popular funds, data-driven operation rules and the supply of medium-sized capacity are the key factors for byte beating to grow against the trend.

The industry has always been curious about the growth law of byte beating, but it does not know that byte beating has concentrated the technical capabilities such as big data, artificial intelligence and basic services based on serving hundreds of millions of users on the volcanic engine to provide systematic full link growth capability for enterprises.

What is the boost capability of the volcanic engine?

What about the performance of volcanic engine powered growth? Tech planet saw a typical case: Wukong renting a car.

Wukong car rental was founded in 2014. At present, its business covers nearly 300 cities across the country, more than 4000 travel service providers have settled in, and more than 100000 vehicles are available online.

During the revision of its new version of app, the interior is very concerned about how to use the new version to bring the growth of transformation benefits without losing customers. However, when testing the new version, we encountered a selection problem. It is believed that putting the “rent” and “deposit” on the same payment page will make users feel that “total payment amount = total vehicle cost”, and the anxiety of cost growth will make users give up payment.

Therefore, the team hopes to split the payment steps, but will the extra step cause the loss of users? Wukong car rental team uses volcanic engine a / b experimental products to test and error the scheme with small flow, “let the data speak”:

•   Control group: in the current payment process, users need to pay rent and deposit at the same time on the order page;
•   Experimental group: in the new scheme, the user enters the deposit payment page after the order is paid.

The volcanic engine strategy is emerging. Can we build a dual engine of to B service?
Test of “let data speak”

Two weeks after the experiment, the team found that for the “final order completion index”, the experimental group increased by 7% compared with the control group, with a very obvious increase. After getting the real feedback from users on the new scheme, the team decided to launch the scheme of the experimental group in full.

Wukong car rental partner Xu Jialin mentioned, “In the past six years, we have driven performance growth through experience. We are very concerned about the number of orders, users and growth. In fact, after reaching a certain degree through experience, we find that order growth is very limited. After introducing the intelligent growth scheme of volcanic engine, the whole team was transformed into data-driven, and the whole order volume recovered 2-3 times of rapid growth. “

Volcanic engine does not only bring a / B test, but a complete digital driving scheme, AI and other systematic growth capability blessing. In addition to Wukong’s car rental, the products in the intelligent application, technology center and basic services of volcanic engine also serve Jingdong, Suning, China Construction Bank, Galaxy Securities, Geely, Ford, station B, China Resources, Hupu, vivo and other enterprises.

In the era of digital economy, “insight” growth is the trend

The new generation of information technology represented by big data and artificial intelligence is developing rapidly, and mankind is constantly “online”. Digital economy has become an important engine to promote China’s high-quality economic development and even lead global economic and social change.

In this trend, user value led and alternative competition have become the leading force driving enterprises to change. How to keep up with the new era? How to change? In the era of digital economy, insightful technical capability, systematic growth concept and perfect operation tools are indispensable.

Slogan changed to the volcanic engine of “intelligence stimulates growth”. It seems that it wants to use the cutting-edge big data, artificial intelligence and cloud based technology capabilities, combined with its unique growth methodology, to realize the desire of enterprise customers for better growth in the era of digital economy.

In early 2018, Zhang Yiming, the founder of the company, expressed his expectations for the b-end business: “In the past, it was more difficult for us to do the business of to C. the database, cloud computing or chip and payment system used for to C products are actually the lower level of ICT industry. If the C-end is completed, we can go upstream to enter the b-end infrastructure. If it can be completed, it will improve Chinese science and technology enterprises…”

From this point of view, the volcanic engine with further clarity of strategy is gradually relying on Zhang Yiming’s expectation.

The volcanic engine strategy is emerging. Can we build a dual engine of to B service?