On December 15, Tencent held an internal staff meeting online, and more than 100 employees participated in the meeting. The theme of this year’s meeting was to reduce costs and increase efficiency.
Many employees want to know what happened in the past year, what is the foundation of Tencent’s business, where is the growth point, and whether it can be stabilized.
Different from the gentle style of encouragement-based speeches at previous internal conferences, the overall tone of Ma Huateng’s speeches this year was much sharper, pointing out many issues that management cadres knew but were unwilling to discuss on the table.
He criticized some BG’s amicable reform methods, thinking that this is a superficial form of work, not the crisis mentality that entrepreneurs should have.
Regarding the reform of part of PCG’s business, “You can’t survive, and you can play casually on weekends”, Ma Huateng shouted from the air, “Then there is not much time left for them.” If the business team can’t put pressure on themselves, then It is up to the general office to put pressure on this.
Ma Huateng expressed his full support for CSIG’s strategy of abandoning the role of integrator and turning to the integration of self-developed products.
“Don’t be ridiculed by others, saying oh, is your cloud being surpassed by Huawei, you are only the third child (you can’t help it)”, he encouraged employees not to care about external public opinion: “It doesn’t matter! We are not in a hurry, Don’t be fooled.”
Ma Huateng also publicly stated at the conference that he no longer believes in the story of buying volume, and that any business (including IEG) of Tencent in the future should not ask him about buying volume, which is meaningless.
Tencent has increased the intensity of internal audit and control this year. As a result, a large number of internal corruption problems were found, and some middle-level officials were also involved.
“I didn’t know until I watched it, why we can’t do a lot of business,” Ma Huateng said to the employees in the audience, “It’s just that you don’t have the chance to watch it, and it’s scary to watch.”
Cost reduction and efficiency increase must form a habit
The core theme of Tencent in the past year has been to reduce costs and increase efficiency. During this process, Tencent managed to focus on its main business and reduce peripheral businesses that are not suitable for the current and future development stages.
Tencent has shrunk a lot of business this year. “Don’t tell me what opportunities you have.”
“How big can your (non-core business) be? What can you do if you make it bigger?” Ma Huateng believes that compared with the management costs and energy paid by the company, it is not cost-effective to spread too many non-core businesses.
In the future, we need to continue to strengthen and persist in reducing costs and increasing efficiency. “I think this is to form a habit.”
Time is running out for some of PCG’s business
PCG has faced a lot of hardships this year, because the company’s old products for more than 20 years have all been in PCG, and a large number of unavoidable problems have accumulated.
Ma Huateng said that in the past, due to the leadership of many friends, Tencent blindly did simple follow-up. As a result, the friends led them in the wrong direction, and the effect of the things they made was not satisfactory.
When competitors were expanding their scale, Tencent also kept up. “When we saw others gaining weight, we followed suit. It turned out that what we gained was fat, and we couldn’t beat our opponents.”
In the process of reducing costs and increasing efficiency this year, many problems were discovered. “Under the leadership of Mark (Ren Yuxin), we have done a lot of things.” Ma Huateng used Tencent News, a business he cares about, as an example.
“In the past, many people said that the logo on the roof of your Tencent Building is still the logo of Tencent. Is it possible to cut this business?” Ma Huateng responded, “I told the team, it is possible.”
Ma Huateng told the team that if they can’t rise to the surface by themselves (self-responsible for their own profits and losses), if they still sink, and there are even many problems, then there is not much time left for Tencent News.
He believes that the team needs strong changes, otherwise “it doesn’t make sense to continue doing this, the whole (Tencent News) can be cut off.”
This is why Tencent News has vigorously adjusted its team this year. “Jonathan (He Yijin, head of Tencent News) and I also put forward very high requirements. Your actions must be in place. Sure enough, it turned around in October.”
For PCG’s internal reform, Ma Huateng believes that it should not be superficial, but should really put pressure on the team, so that the team can think and act from the perspective of entrepreneurs who are in charge of their own affairs.
“If you can’t survive, you have to rely on others to continue your life, (results) you can still play leisurely on weekends”, Ma Huateng thinks this is unacceptable, “If you don’t even have the pressure to start a business, then the pressure on us Here, all right.”
Regarding the adjustment of PCG next year, Ma Huateng believes that there may be no need to reduce staff, but the team left by the layoffs should do more meaningful things, otherwise it would be irresponsible to waste the time of these people staying here.
CSIG Don’t Be Held by Public Opinion and Market Share
In the past three years, CSIG has done a lot of impulsive things, pursuing front-end integration and pursuing big digital revenue.
Ma Huateng said that Tang Daosheng didn’t want to do this before, but Tencent was often coerced by market share and public opinion, and was forced to be the general contractor to gain market share. “People always ask, what is your (Tencent Cloud) ranking.”
Although the nominal figures of being an integrator are good-looking, many of them are businesses with gross losses and gross losses. This year, Tang Daosheng thought about this clearly and made major adjustments.
Not long ago, Li Qiang, vice president of Tencent, told Ma Huateng that none of the best TOB companies in the world has grown through system integration, and the core is still products. Ma Huateng agrees with this. He believes that making a good product and then playing the role of being integrated is what Tencent wants to do in the long run.
“Don’t be ridiculed by others, saying oops, is your cloud surpassed by Huawei, you are only the third child (you can’t help it)”, Ma Huateng said at the scene: “It doesn’t matter! We are not in a hurry, don’t fooled”.
He publicly opposed Tencent to do those businesses with serious homogeneity. Ma Huateng believes that Tencent’s advantages lie in the collaborative office capabilities of the representatives of the “three elites” (enterprise WeChat, Tencent Conference and Tencent Documents), as well as the closed loop of TO C and TO B business connected by small programs.
“These are very good. They don’t exist in the whole world. Why don’t you take advantage of this advantage?” Ma Huateng said. It is meaningless to compete with others for things that are “not inferior to the Tencent family”.
For example, Ma Huateng said that combining small program e-commerce services with industrial Internet digital content is what Tencent should do. “I told CDG Smart Retail that you should stop selling goods on the shelves (model)”,
CSIG can only avoid that kind of one-time single income by focusing on recurring subscription income and closing the loop of enterprise services and business services.
He thinks that CISG did not do well in the past. “That’s what they say, but they often go astray. What they think about is how to expand the territory, how to recruit people, how to get HC, how to sell, and how to buy volume.”
“In the end, I found out that all the purchases were pitfalls”! Ma Huateng spoke bluntly at the conference.
“I don’t believe in buying volume anymore”
“Really, don’t tell me the story of buying volume in the future, I don’t believe it anymore”, Ma Huateng said, even if others can succeed, it is not suitable for Tencent. “Let others do this, we will not do buying volume in the future. matter”.
He believes that if a company does not focus on buying volume, it will not be able to do this business well.
When other companies can do it, the whole company will jump on it. “Shareholders rush forward, and every penny they lose is their own money, so that’s possible.” Otherwise, it won’t be able to do business in buying volume, which is not Tencent’s core competitiveness.
“IEG used to say that part of the game is also a matter of purchase volume, but now I don’t believe it.” Ma Huateng said that Tencent has stepped up internal audit and control this year, and found that a large number of problems exist in the purchase business.
“The team thinks about how much money they can make in it every day, and then helps the company do some business by the way, which is meaningless,” said Ma Huateng.
The problems detected by anti-corruption are “scaring to death”
Judging from the investigation in the fourth quarter, the corruption situation within Tencent is relatively serious.
“After I read the (investigation results), I realized why we couldn’t do many businesses. Of course we couldn’t do it. With so many loopholes being discovered, it was impossible to get up.”
“Why is anti-corruption mentioned every year, but this year is still so serious?” Ma Huateng said that this year Tencent emphasized reducing costs and increasing efficiency, so it has conducted more investigations.
After the strict investigation this year, a lot of problems were exposed, and middle-rankers were involved. “I tell you, but you don’t have the chance to watch it. After watching it, you will be scared to death.”
Ma Huateng told the employees in the audience that the internal corruption problem is “really shocking”, and that many businesses cannot be done because of problems with managers or business direction, but because of too many loopholes in corruption and business being hollowed out up.
Ma Huateng said that this year Tencent has also introduced digital capabilities into anti-fraud. All Tencent’s reimbursement and external supplier data are collected. Internal audit and internal control can find most low-level problems through big data analysis. Tencent will continue to do so next year. Build this capacity.
Tencent games should be high-quality products, don’t waste the version number
The version number and policy have a relatively large impact on IEG. In the future, Tencent hopes to explore more cooperation methods to open up the market for good products, including better expanding the international market.
Although the IEG team is working hard, there are also many force majeures this year. “Everyone has been holding back for a year, screaming, waiting to rush up”, and it should be the time to accumulate and develop.
Ma Huateng believes that in the long run, the version number of the domestic game market must be in a state of tightening, and it will not be as easy as in the past (taking the version number).
“So (Tencent Games) must focus on high-quality products, and don’t waste any opportunity for a version number.”
The video number is “the hope of the audience”
Ma Huateng said that the most eye-catching business of WXG is the video account, which is basically the hope of the whole audience (the whole company).
In the past three years, short videos have had a considerable impact on the entire Internet on a global scale, and all platforms and companies have to pay attention to this aspect. It will erode the time of many long videos, games and other products, which is an objective law of development.
“This also forces us to make adjustments in other businesses,” Ma Huateng said, such as adjusting the long-term video strategy and cutting off non-quality content. “In the past, we were willing to invest in some mid-season dramas. thought about it”.
Short videos also have a lot of impact on games and e-commerce businesses. Tencent has made a lot of attempts to combine short videos and e-commerce. Now the video account has taken the first step and has established itself. In the future, it hopes to be closer to transactions and close the loop of e-commerce.
This piece of Tencent is unfamiliar. For e-commerce transactions, Tencent still has to play the role of assistant and connection. How to do a good job of closing the loop of e-commerce without ending up doing e-commerce is the future challenge of video accounts.
This article is from Interface News , author: Cui Peng, 36 Krypton is authorized to publish.
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Event Tracking
- 2022-12-22 Ma Huateng: There is not much time left for some businesses, and the video account is basically the hope of the whole company
- 2022-01-12 Ma Huateng said that Tencent is just an ordinary company and can be replaced at any time
- 2020-04-06 Tencent’s latest equity: the largest shareholder holds 31%, Ma Huateng cashed out 2 billion Hong Kong dollars this year
- 2019-09-19 Ma Huateng no longer serves as the legal representative of Tencent Credit Information Co., Ltd.
- 2019-03-21 Ma Huateng: I am very concerned about the changes brought about by 5G, and the number of netizens has not had much dividends
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