Alibaba

A significant part of Alibaba’s development is linked to the company’s utilization of a business model it initially executes in its endeavors. Alibaba has been using an artificial intelligence-powered chatbot to assist with client queries (Mei, 2022). This technology refers to a mechanical service provider familiar to different people that it programs to match the concerns of different clients with possible answers or responses in their repertoire.

Alibaba has been applying diverse technological expertise that influences it into becoming a smart business. This concept denotes the overall involvement of all business players in accomplishing a common goal. For Alibaba, the common goal entails retailing and ride-sharing, where the company is able to coordinate the different technological mechanisms in an online network, and subsequently use this machine-oriented technology proficiently manage data in real time (Zi, 2019). This technology-enabled model, in which the machine makes almost all operational decisions, influences the company to dynamically and rapidly adapt to the fast-paced changing market conditions and consumer preferences, thereby gaining an incredible competitive advantage over the previous traditional businesses.

ANT uses a unique financial approach to mine consumer information from its Airplay user base. The company then uses this information to build different interconnected organizational platforms to make its financial services worthwhile. The firm combines its micro-investing and micro-leading strategies with which a platform method in its overall payments and lending to investment and insurance. This strategy denotes a complementary platform and a linear service approach that serves to avail the different financial services ecosystem that far exceeds any other amalgamation. Research estimates that ANT was able to handle over $16 trillion, with the organization earning an average income of $7.4 billion (Mei, 2022). This concept influenced Alipay to gain a market share by certifying out its digital finance technical assistance to banks and other financial institutions. Last year, this active part was responsible for 56% of ANT income, which translates to $9.7 billion. As a consequence of Alibaba’s substantial position, the company stands to benefit from IPO.

An ample computing capacity and digital information are the fueling factors for machine learning. The more interactions with the consumer base translate to the more data and iterations the algorithmic engine goes through to make the company has more usable data that provides better output (Zi, 201). Alibaba uses this data to come up with probabilistic prediction models for precise actions, and subsequently, the algorithm churns through lots of data to foster better decisions in real-time with each iteration. These forecast models become the foundation for most business decisions.

References

Mei, L. (2022). Fintech Fundamentals: Big Data/Cloud Computing/Digital Economy. Stylus Publishing, LLC.

 Zi, L. (2019). Online Urbanization: Online Services in China’s Rural Transformation. Springer.