Alibaba Founder Jack Ma Speaks Out: Admits Alibaba Made Mistakes, Embraces Innovation Over KPI Chasing
BEIJING, April 10, 2024 – Jack Ma, the co-founder of Alibaba, has made a rare public statement since his retirement in 2019, acknowledging past mistakes and outlining the company’s new direction. In a post titled To Reform, To Innovate on Alibaba’s internalnetwork, Ma expressed his support for the company’s recent restructuring and praised the leadership of current chairman, Joseph Tsai, and CEO, Wu Yongming.
Ma’s post, penned under his online alias Feng Qingyang, markshis first lengthy public commentary on Alibaba’s future since stepping down. He highlighted the company’s return to a healthy growth trajectory under the new management team, emphasizing that the core change wasn’t about chasing Key Performance Indicators (KPIs), but rather a renewed focus on customer value.
The most important change in the past year has not been to chase KPIs, but to recognize ourselves and return to the customer value track, Ma wrote. We have tackled the ‘disease of large companies,’ transitioning from a slow-decision-making organizationback to one that prioritizes efficiency and the market, making the company simpler and more agile.
Ma’s statement comes after a period of introspection and restructuring at Alibaba. In a recent interview, Tsai acknowledged that the company had fallen behind its competitors due to a loss of focus on customer experience. We forgot whoour real customers are, Tsai said. Our customers are the users who use our apps to shop, and we didn’t give them the best experience. So in a way, we reaped what we sowed.
Tsai emphasized the importance of acknowledging mistakes and the need for organizational changes. He praised WuYongming’s commitment to user experience, stating that he is very, very user-centric, focused on products, interfaces, and user experience, which Tsai believes is crucial for Alibaba’s future.
Ma’s post also reflects a broader shift in Alibaba’s approach to innovation. He stated that thecompany’s innovations have never been driven by profit maximization, but rather by the need to adapt to a rapidly changing world. Our innovations are not about changing others, but about changing ourselves, Ma wrote. Our innovations have never been about surpassing our competitors, but about chasing the future.
Ma’s callfor innovation comes at a time when the internet industry is undergoing rapid transformation, driven by advancements in artificial intelligence (AI). He believes that the next three to five years will be a period of significant change, akin to a century in the past. The AI era has just begun, and everything is just starting, Mawrote. We are right on time!
Ma’s post concludes with a message of encouragement to Alibaba employees, urging them to embrace the challenges and opportunities of the future. The path of reform and innovation is never accompanied by applause, Ma wrote. Because we are changing our favorite bad habits, we arereforming vested interests… The road is long, but we won’t be alone if we walk it together.
Ma’s words signal a renewed focus on innovation and customer value at Alibaba. The company’s commitment to adapting to the changing landscape of the internet industry, particularly in the age of AI, will becrucial for its future success.
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