＂Internet +＂, connecting everything – Interview with Pony Ma, Chairperson and CEO of Tencent

Using the "Internet +" approach to "connect everything" is the key word of Tencent in 2015. Behind the dazzling investment is a major change in Tencent’s overall strategy.

"This is the conclusion we have drawn from our painful experience over the past few years." Pony Ma, chairperson and chief executive of Tencent, said that in the past two years, Tencent has made a lot of subtractions of its own business, focusing on the most core communication and social platforms, content games and other businesses, and handing over the rest to partners. "I like the saying of’half life ‘for myself, and giving the other half to partners, so that an ecosystem will be formed."

Tencent is gradually becoming an open organization without borders. According to Pony Ma, not only Tencent, but also BAT heroes have the same vision and are working in this direction. "Tencent went a little earlier, but it just hit a wall earlier and changed it earlier."

Key words: "cell-level" connectivity

Reporter: How do you see the development of China’s Internet in this year? How did Tencent perform in it?

Ma Ma: This year, "Internet +" and "entrepreneurship and innovation" have become hot words, and the O2O field has set off a wave of entrepreneurship.

In the future, if an enterprise cannot achieve "cell-level connection" with individual users through "Internet +", it will be like a living body whose nerve endings are numb and limbs are disconnected, and it will definitely face survival challenges.

Connecting individual consumers dynamically with producers and service providers in real time is a new "cellular" way of connecting, allowing entrepreneurs to discover a wealth of new opportunities. In August, the number of applications on Tencent’s open API exceeded 4 million, an increase of nearly 70% from the same period last year. At the same time, this entrepreneurial boom is penetrating from first- and second-tier cities to third- and fourth-tier cities.

Recently, Boston Consulting Group released a report on the world’s most innovative companies, and Tencent was honored to rank first in China and 12th in the world. In my opinion, this is more exciting than the ranking of the company’s market value. From scale to innovation, on the surface, it is the development trajectory of our company. In fact, this reflects the innovation opportunities fostered by China’s "Internet Plus". It is our partners, including government entities, who are innovating with us.

　Key words: entrepreneurship

Reporter: The Internet field is active in investment and financing, making it the first choice for many young people to start their own businesses. What advice do you have for young people who are committed to it?

Ma Ma: "Internet +" is giving birth to a large number of new business models and startups. They have dug deep into many vertical segments of traditional industries, and may grow many promising companies. More and more young people, not just simply enjoy internet services, but begin to unleash their enthusiasm, imagination and creativity on the Internet, and use the power of Internet platforms and social networking to release their personal talents.

Compared with 17 years ago when we started our business, it cannot be said that today’s entrepreneurship has become easier to succeed, but with the help of the new tool of the Internet, the threshold and cost of entrepreneurship are significantly reduced. As a result, entrepreneurs can obtain a good infrastructure, such as a stable back office on Tencent Open API, convenient online payment tools, secure network environment, cloud storage and computing power, and even a venture capital fund of up to 100 billion yuan. From this perspective, now may be a good time for personal entrepreneurship.

Key word: openness

Reporter: During this year, Tencent has had a series of collaborations and investments. How do you perceive these cross-border collaborations?

Pony Ma: In the past two years, Tencent has made a lot of subtractions of its own business, focusing on the core communication and social platforms, content games and other businesses, and handed over the rest to partners. This is the conclusion we have come to through years of painful experience. We will firmly be the best partner for all entrepreneurs.

I like to keep the "half life" for myself, and give the other "half life" to partners, so that an ecosystem will be formed. Tencent’s open API now has millions of partners and hundreds of millions of users. It is difficult to say that today’s Tencent is just Tencent itself, and the enterprise is gradually becoming an open organization without borders.

Now many domestic ecological companies, including the three BAT companies, are working hard in this regard, which can be said to be the same as the heroes. Tencent went a little earlier, but it just hit the wall earlier and changed it earlier. I believe everyone will open up. Whether it is open data, cloud platforms, or providing connectivity, we all want to connect more information islands to our respective ecosystems, so that more traditional industries can coexist and develop in this system, so that users in their respective ecosystems can obtain a higher quality of life. This is healthy competition. To see who does better, the more sticky and user base the ecosystem will be.

Key word: self-discipline

Reporter: Many people believe that China’s Internet does not respect rules, does not pay attention to intellectual property protection, and is not conducive to the development of innovative companies. Do you agree with this statement?

Pony Ma: China’s Internet has developed to the present, from a complete disorderly lack of attention to intellectual property rights to an increasing emphasis on intellectual property rights. Although the problem has not been completely solved, it has obviously improved. Only in this way can the entire business model take shape.

Take the digital content industry as an example. At present, the Internet industry continues to increase investment in the procurement of copyright content and self-produced content, forming a benign industrial ecological chain with the traditional cultural industry. The Internet is becoming the preferred channel for the distribution of cultural content due to its advantages of high efficiency, low cost, and green environmental protection. It also enables some lesser-known niche works to find suitable consumption objects, ensuring the recovery of their creative costs.

From Tencent’s experience, on the one hand, Chinese Internet companies need to further change their business philosophy, increase the procurement of genuine content and original content, and constantly innovate their business models to achieve the good operation of the genuine operation model. On the other hand, Internet companies can rely on their respective technical advantages and platform management advantages to develop corresponding copyright management systems and copyright self-service complaint platforms for different business models and network platforms, so that creators can use Internet technology to deal with online piracy. (Reporter, Zhan Lihua)