Alibaba announced on December 20th that Wu Yongming, CEO of Alibaba Group and Chairman of Taotian Group, will also serve as CEO of Taotian Group. From now on, Wu Yongming will concurrently serve as CEO of Alibaba Group, Taotian Group, and Alibaba Cloud Intelligent Group.
At the same time, Alibaba announced that Dai Shan, former CEO of Taotian Group, will assist in the establishment of Alibaba Group Asset Management Company, which is a new business function after Alibaba's transformation.
On the same day, Alibaba Group Chairman Cai Chongxin announced the above decision in a letter from all members titled "The only thing that remains unchanged is change, let us ignite the spirit of entrepreneurship!".
Cai Chongxin stated that Wu Yongming took over as the CEO of Alibaba Group for three months, clarifying the strategic focus and priority choices of the entire group, making resolute choices around the main business, and comprehensively promoting the reform of the management team's youthfulness. Having Wu Yongming concurrently serve as the number one position for Alibaba Cloud and Taotian will help to lead Taotian's transformation through technological innovation, and ensure the group's unified command and high-intensity continuous investment in the two strategic focuses of e-commerce and cloud.
Regarding the establishment of Alibaba Group Asset Management Company, Cai Chongxin stated in the letter that in order to optimize the return on capital and enhance shareholder value, the Group Capital Management Committee has authorized the establishment of an asset management company.
"As a member of Alibaba's 18 founding teams, Dai Shan has been working hard on the front line of the company for over 20 years, dedicating tremendous efforts to the establishment and growth of the company. In the process of Taotian Group's comprehensive return to users, the Internet, and universal Taobao, Dai Shan has completed her mission." said Cai Chongxin, "Preparing for the Group Asset Management Company is a new business function after Alibaba's transformation, which requires a pioneering spirit and strong organizational structure ability. Dai Shan will fully leverage her expertise to continue creating value for the company."
Cai Chongxin also said, "Next, we will fully utilize a young management team that has been trained and emerged at the grassroots level, creating an innovative environment for young people."
Alibaba launched organizational changes in March this year, with the Alibaba Group split into several independent companies known as "1+6+N.".
Zhang Yong, then Chairman and CEO of Alibaba Group, stated that he will move towards a new stage of organizational governance - building a "1+6+N" organizational structure. Under the Alibaba Group, six major business groups and multiple business companies will be established, including Alibaba Cloud Intelligence, Taobao Tmall Business, Local Life, Cainiao, International Digital Business, and Da Wen Yu. The CEO responsibility system will be implemented under the leadership of the boards of directors of each business group and company, while Alibaba Group will fully implement the management of a holding company.
Cai Chongxin and Wu Yongming officially took over as the Chairman and CEO of Alibaba Group in September. On September 12th, Wu Yongming released a letter to all employees announcing the establishment of two strategic priorities: user first and AI driven. He will conduct business sorting and reshape business strategic priorities around these two priorities, while also carrying out reforms to rejuvenate the management team.
In November, at Alibaba's quarterly performance conference call, Wu Yongming first disclosed a new strategic plan to the outside world, clarifying Alibaba's important priorities for the next decade in three directions: technology driven internet platform business, AI driven technology business, and globalized business network.
He announced that for its core business, Alibaba Group will maintain long-term focus and high-intensity resources and R&D investment, while each business will be based on independent business units, facing the market independently.
Among them, in the strategic cycle for the next three years, Taobao and Tmall will further clarify their business priorities - putting users first. Taobao has three principles: adhering to being the "omnipotent Taobao", adhering to consumption classification and pricing strategy, and adhering to the selection of user value for products.
Alibaba Cloud Intelligent Group will implement an AI driven, public cloud priority strategy, and increase technological investment in AI related software and hardware fields. Wu Yongming also said, "Adhering to prioritizing public clouds can enable us to reap economies of scale and technological dividends in the future."