Jack Ma, the co-founder of Alibaba Group Holding, has made a return to the spotlight with a rallying call for innovation and reform within the Chinese tech giant.
Ma, who stepped back from public view after the halt of Ant Group's initial public offering in 2020, has resurfaced to address the company's internal dynamics and the challenges it faces in an evolving AI-oriented e-commerce landscape.
Jack Ma Urges Alibaba Staff to Embrace AI
In a recent internal memo to Alibaba employees, Jack Ma emphasized the importance of recognizing mistakes and embracing innovation to propel the company forward. Nikkei tells us that Ma's message, which was published on the company's intranet, emphasized a shift away from rigid performance metrics and toward prioritizing customer value.
He stated, "The core change of this past year is not to catch up with key performance indicators, but to recognize ourselves and return to the track of valuing customers."
Ma's return to the forefront of Alibaba's operations coincides with the company's ambitious restructuring efforts. Alibaba announced plans to split into six main business units and pursue separate initial public offerings for most of them.
However, the journey has been turbulent, marked by challenges such as the abrupt cancellation of the planned listing of its logistics arm, Cainiao Smart Logistics Network, in March.
Jack Ma, CEO of Chinese e-commerce giant Alibaba, gestures as he speaks during his visit at the Vivatech startups and innovation fair, in Paris on May 16, 2019.
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Jack Ma Is Optimistic About Alibaba's Future
Despite these hurdles, Ma expressed confidence in Alibaba's current leadership, commending Chairman Joe Tsai and CEO Eddie Wu for their courage in implementing forward-thinking reforms.
He urged employees to embrace change and innovation, particularly in light of technological advancements such as artificial intelligence (AI). Ma emphasized, "The AI era has just arrived. Everything has just begun, and we are at the right moment!"
Alibaba's stock responded positively to Ma's message, registering a nearly 5% increase on Wednesday. However, the company has faced significant market challenges over the past year, with its stock losing roughly a quarter of its value.
Joe Tsai, executive chairman of Alibaba, echoed Ma's sentiments in a recent podcast interview, acknowledging past mistakes and emphasizing the importance of refocusing on customer needs.
Tsai candidly admitted, "We have fallen behind because we forgot who our real customers are." He highlighted Alibaba's commitment to simplifying its structure and prioritizing core businesses such as cloud computing and e-commerce.
The tech giant's efforts to revitalize its operations also include substantial investments in content creation. Tabao, Alibaba's flagship shopping platform, announced a 10 billion yuan (US$1.38 billion) subsidy for content creation this year, aiming to enhance user engagement through initiatives such as live streaming and short videos.
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