Alibaba Group CEO Daniel Zhang announced today in an internal memo circulated to employees that the Chinese e-commerce giant is having another major organisational restructure, marking the first change following Jack Ma’s recent appointment of Zhang to succeed himself as the group’s chairman in a year.
Zhang is now looking to set the foundation and leadership team in place to prepare for another 5-10 years of future development plans of Alibaba.
According to the memo KrASIA obtained, Alibaba is looking to, through the change, boost the operational efficiency and customer experience by optimising and synergising the company’s vast ecosystem.
This is an advantage Alibaba has over others as it is one of the larger companies with access to a wide range of data on hand that can be used to improve effectiveness for consumer interaction, marketing, sales, supply chain, logistics to even cloud computing, etc.
China’s Tencent, which has seen its market cap being halved since earlier this year, also announced a similar plan to restructure its businesses.
Some of the changes are as follows:
The cloud business unit (BU) will be upgraded to Alibaba Cloud Intelligent business unit. Alibaba’s CTO Zhang Jianfeng will oversee the new BU and the goal is to drive greater technology developments and smart internet investments for Alibaba.Alibaba’s Tmall (天猫) to become Greater Tmall (大天猫). There are 3 business lines under this new business unit, namely Tmall business, Tmall supermarket business, and Tmall’s exports/imports businesses. Former CEO assistant Li Yonghe will lead Tmall business; Liu Peng will continue to be in charge of Tmall’s exports/imports business.Forming of the New Retail Business Group to aggregate the technical strengths from Alibaba’s broad range of services from B2B, Taobao, Tmall, etc.
Below is the internal letter that Alibaba CEO Daniel Zhang circulated to employees of the above changes:
This article is written by Robin Moh (edited by Ben Jiang); and was first seen on KRAsia.
Featured Image Credit: KRAsia
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