Rebirth 04: Starting from Taking an Unconventional Approach

Chen Zhengyuan cursed inwardly and rubbed his thighs with both hands.

Ding Lei returned to the window. "In 1944, before the Normandy landings, the Allies did something very interesting. They built a fake supply base, a fake airfield, fake tanks, and even a fake general in southeast England. The sole purpose was to make the Germans believe they would land at Calais." Ding Lei held up his dust-covered index finger. "German intelligence saw that fake base. Their general got the reconnaissance photos. Everyone said, 'Look, the Allies are indeed going to land at Calais.' Only one Field Marshal, Rommel, raised a question. He said, 'If I were an Allied, I would let the enemy see what I want them to see.' But Berlin didn't accept his argument. Zheng Yuan, do you know what happened next?"

"The Normandy landings were a success," Chen Zhengyuan said.

"The Normandy landings were a success," Ding Lei repeated. "Where did the Germans lose? Not intelligence, not manpower, but judgment. They saw what they should have seen, but failed to understand what they didn't see, or rather, what they shouldn't have seen. I heard your department had noticed that Bluebird Reading a long time ago, and some of your men even did an assessment. Is that true, Zheng Yuan?"

Chen Zhengyuan took a breath: "President Ding, at the time I thought..."

"You think their model is unsustainable. You think it's just a temporary craze for vulgar content. You think a makeshift operation can't make a difference. You're right, Zhengyuan, maybe you were right a month ago. But the problem is, a month later, your opinion hasn't changed at all."

Chen Zhengyuan scratched the back of his head angrily, his face turning bright red.

"Zhengyuan, you've been with NetEase for six years, haven't you?"

"Six years and four months," Chen Zhengyuan said.

Ding Lei nodded: "Six years and four months. In these six years, you rose from Regional Manager for South China to Senior Vice President, overseeing wireless value-added services, portal operations, and SP (Service Provider) business. Of all the projects you handled, more were successful than failed. Am I right?"

"Mr. Ding, you flatter me."

"So I called you here today not to embarrass you." Ding Lei turned to look at Chen Zhengyuan. "I want to understand something: why would a veteran who has worked at NetEase for six years make repeated misjudgments on a project that his subordinates had already warned him about? Is it because you didn't believe a publishing house on the verge of bankruptcy could succeed? Or is it because you were too confident that NetEase's size could crush everything? Or perhaps you simply didn't take your subordinates' warnings seriously?"

"Yes, I have them all." Chen Zhengyuan felt like banging his head against the table when he heard himself say that.

Ding Lei strolled back to the table, took a document from the drawer, and pushed it across the table.

Chen Zhengyuan looked down at the document, which was a printed email. The sender was Wang Yu, the recipient was the Strategic Development Department, and Ding Lei was copied.

The email was sent at 10:27 AM today.

Subject: Competitive Analysis Briefing on Qingniao Publishing House's SP Business "Qingniao Reading"

General Manager Ding, distinguished leaders:

Recently, a small publishing house in Shanghai called "Qingniao" has caused unusual data fluctuations in the SMS value-added service sector through its SP business "Qingniao Reading". According to various reliable sources, the conversion rate on the first day of the service's launch far exceeded the industry average, and it has maintained a very stable growth trend during continuous operation.

This newspaper aims to sift through market rumors and, based on publicly available data, technical analysis, and industry trends, quantitatively assess the true business model, competitive barriers, and potential threats of the company, providing a basis for company decision-making.

We believe that Qingniao Reading is no longer a "death throes of a small publishing house," but rather a key variable that could reshape the landscape of the SP (Service Provider) content market. We recommend that headquarters evaluate and implement follow-up strategies as soon as possible to avoid missing the window of opportunity.

If further discussion is needed, I am available to travel to headquarters to report at any time.

Below is a list of observational data and threat assessments of various phenomena compiled by Wang Yu, along with some strategic recommendations.

Chen Zhengyuan felt his carotid artery throbbing violently, compressing the space in his throat. Wang Yu. Wang Yu!

"You saw it," Ding Lei said. "Your subordinates, after failing to get results from your reports, went directly to headquarters. What does that tell you?"

Chen Zhengyuan remained silent.

"This shows that she has lost confidence in your judgment, and it also shows that she saw the value of this track earlier than you."

"Mr. Ding, I..."

"You don't need to explain," Ding Lei interrupted him. "There's no need to explain now. I have a few things to tell you. First, starting today, the strategic evaluation and project follow-up for the SP content track will be directly handled by the Strategic Development Department at headquarters. You don't need to worry about it for now. Second, Wang Yu is being transferred back to headquarters to head the content innovation business in the Strategic Development Department, with a promotion. Her reports and analyses are of very high quality. She's more suited to oversee this line than you are."

Chen Zhengyuan toyed with the newspaper in his hand. "President Ding," he said, "how long have we known each other?"

Ding Lei held up his index finger as a warning: "Don't give me that crap. Don't tell me things like 'we've been through thick and thin together'..."

"Seven years have passed, Mr. Ding. Do you remember that wireless business meeting we had in Shenzhen in the spring of 2001? Back then, we didn't have 'A Chinese Odyssey,' we didn't have email, and our portal website was being crushed by Xinlang. Wireless value-added services were our only source of cash flow at the time. You asked me to talk to Guangdong Mobile about a cooperation on a text messaging interface. I went three times, and each time I was turned away by the receptionist. The fourth time, I squatted in the fire escape at the entrance of their company, waiting from 2 pm to 11 pm. It was pouring rain that night, and I didn't have an umbrella. My suit was completely soaked. When the section chief came out, I looked like I had been pulled out of a river. He glanced at me and asked why I was still there. I said, 'I haven't finished talking to you yet.' He paused for a moment, then led me into his office and had his secretary pour me a cup of hot water."

Ding Lei opened and closed his mouth, taking a deep breath.

Chen Zhengyuan continued, "We eventually negotiated that interface. Our SP business's SMS channel fee was three percentage points lower than Xinlang's. Because of those three percentage points, the wireless business unit's gross profit increased by nearly 20 million that year. You later said at the all-staff meeting that the reason NetEase's wireless business could survive was because the frontline staff dared to work so hard. When you said that, I was sitting in the second row, wearing that suit that had shrunk after being soaked by the rain, and I thought to myself, 'Damn it, I'll work for Ding Lei for the rest of my life.'"

"Stop talking..."

"Mr. Ding, I'm not trying to use the old Huang Calendar to settle accounts now. I admit I misjudged Qingniao. I have no objection to you removing me from the SP track. But I want you to know one thing: I didn't misjudge because I looked down on that small publishing house. It's because... I had too much faith in ourselves. I believed in the size of Wangyi, I believed in our channels, and I believed that as long as I put in a little effort, I could crush any small player. This faith was earned by waiting in the fire escape in 2001, by closing every single deal, it didn't grow out of thin air."

"Conquering the distant lands..."

"So, Mr. Ding, it's no problem for me to admit my mistake."

"Let me tell you..."

"But don't make me feel like these past six years have been a joke."

"Don't bring up the past again!" Ding Lei slammed his fist on the table, making the miniature figurine of a character from the game *Westward Journey 2* jump. He then slumped into his leather armchair, wiping his face. "Zheng Yuan, do you even know why I turned the meeting room for wireless value-added services into a war room for the game project?"

Chen Zhengyuan shrugged, indicating that he didn't know.

"Because there was a wall in that conference room covered with the launch schedule, conversion rate curves, and integration progress of all our SP projects from 2001 to 2003. Every time we had a meeting, I had to sit facing that wall. As I watched those curves go from steep to flat, and from flat to declining, I knew that this track had come to an end."

Chen Zhengyuan looked puzzled, but still nodded.

"I've always remembered the time you were squatting in the fire escape," Ding Lei said. "But not because of the 20 million yuan gross profit, it was because of your suit. The next day at the meeting you wore a new suit, but you couldn't bear to remove the label from the cuff. At the time, I just hoped that no one else could see that label, because I didn't want the people below to know that we were so poor that we could barely afford a decent suit."

Chen Zhengyuan chuckled: "I still can't bear to tear it down."

"What you're telling me today has touched me. But Zhengyuan, Qingniao is telling us that this race isn't over yet. You didn't misjudge Qingniao; you misjudged the times. You thought a nearly bankrupt publishing house couldn't make a difference, you thought those vulgar novels were beneath your notice, you thought their work wasn't worthy of NetEase's attention. But users have voted with their real money; they like it, they're willing to pay. And we're already behind on this race."

"Hmm," Chen Zhengyuan said, "Do you think Wang Yu's theoretical knowledge alone can help us catch up?"

Ding Lei sighed: "I handed this line over to Wang Yu not because you're incompetent. It's because your judgment system is still stuck in 2001, in the era when we had to camp out in fire escape routes to grab interfaces. In that era, distribution channels were life. But in this era, content is life."

"Alright, it's up to President Ding. I'm really looking forward to Wang Yu's final results." Chen Zhengyuan spread his palms. "So what am I supposed to be responsible for next? Where does President Ding want me to go? Should I go back to the fire escape and wait for the next opportunity? Or should I go work for Wang Yu and carry her bags?"

Chen Zhengyuan watched as the CEO of NetEase Group's eyebrows twitched up and down, wondering if he had already made an irreversible move.

"I'll give you two options." Ding Lei looked at him expressionlessly. "First, you apply for a transfer to the game division. They need someone with operational experience to lead the offline tournament system for 'Westward Journey 2.' If you do well, you still have a chance. Second, you go back to the Shanghai branch and personally lead a team to create our own content-based SP project, aiming to generate three million RMB in revenue within three months. But let me be clear: headquarters won't give you an extra budget or a dedicated position for this project. If you need people, you'll have to pull them from the existing team. If you need content, you'll have to find authors yourself. If you need distribution channels, you'll have to negotiate with the mobile platform yourself. If you don't meet the performance target after three months, you'll have to write your resignation letter."

Chen Zhengyuan blinked, then blinked repeatedly. His mind was on Shanghai, on the young woman surnamed Wen who fascinated him, and on the preliminary agreement he and Professor Zhang from Shanghai Normal University had reached. It would be a rare opportunity. Transferring to the game division would be tantamount to letting him retire at headquarters, rendering all his long-term efforts futile, especially since he wasn't good at, and disliked, the game industry. He had to go back to Shanghai. Sigh.

"I choose option two," Chen Zhengyuan said.

Ding Lei nodded. Chen Zhengyuan carefully observed Ding Lei, wondering if he noticed a hint of confusion on Ding Lei's face, as if a male student had been unexpectedly punched in the face. It wasn't easy to discern Ding Lei's thoughts.

"You chose the hardest path," Ding Lei said. "You chose to prove yourself. That's good. I just hope you chose this path not to spite me."

"Of course not, Mr. Ding." Chen Zhengyuan leaned back in his chair. "You say my judgment system is still stuck in 2001, only recognizing channels and not content, and I agree. But the reason I chose to return to Shanghai is precisely because I still have my last card to play there. Han Fei from Qingniao, where did he win? He won because he understood what kind of content this market needed half a step earlier than us. But his scale is too small, and he relies too much on our former employee Wen Jie and those so-called amateur authors under him."

"Oh? What are you planning to do?"

"I have my own methods." Chen Zhengyuan spoke in a low voice, his tone laced with barely concealed anger. "President Ding, although I don't need extra support from headquarters, I hope the strategic department at headquarters can share intelligence with me. Of course, I don't want them to guide me, but rather to let me know their next move. They're in the open, while I'm in the shadows; only then can this battle be fought. Three months, three million in revenue. If I can't bring down this makeshift operation with all of Wangyi's resources and money, then I, Chen Zhengyuan, will write my name backwards from now on."

"No problem," Ding Lei said. "I'll have Wang Yu connect with you."

Chen Zhengyuan smiled and said, "Thank you, Mr. Ding."

"That's all, Zhengyuan, go back." Ding Lei picked up the "Journey to the West 2" operation data report on the table and began to read it intently, as if Chen Zhengyuan had already left the office. After a while, he looked up and was quite surprised to find Chen Zhengyuan still sitting in front of him.

"Zhengyuan, is there anything else?"

"Well, I was just thinking that the Allies also suffered heavy casualties in the Normandy landings."

Long after Chen Zhengyuan left, Ding Lei remained seated, staring blankly at the report.