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This article comprehensively organizes the knowledge framework of operations, touching on key points without deep exploration. The knowledge points mentioned are commonly used in the current workplace, and discussions are welcome.
0X001 Why Do Operations#
What is Operations?
If you can't write code, design, create products, or do sales, what else can you do? Then, you are likely in operations.
What is operations? Many people have been in the field for years and still can't explain what operations is, and that's okay. There are many dimensions to define operations.
From a management perspective, operations is the planning, organization, implementation, and control of the operational process, encompassing all management tasks closely related to product production and service creation. It's quite dry and hard to remember, right?
Here's a simpler way to remember: in business activities, the work that requires human intervention is collectively referred to as operations. For example, if you open an online store to sell things, you need to operate it. What styles sell well? How much inventory to purchase? What price to set? When to discount and promote? How to discount and promote? Is it to maintain profit or expand scale? Another example is a WeChat public account; you need to operate it. How to acquire users? What products or services to provide to users? How to sell products or services to users? These tasks that require human intervention and cannot be done automatically are operations. The purpose of operations is to guide results in a positive direction, like driving a horse-drawn carriage towards an ideal destination.
Is There a Future in Operations?
Although operations encompasses a wide range of tasks and has a low entry threshold, there aren't many outstanding operators, and becoming an exceptional operator isn't easy. It is almost impossible without years of practical experience. Operations require a broad knowledge base, intelligence, sensitivity, and a sense of the market. Exceptional operators understand a lot: where market opportunities lie, how to design business models, how to operate a company, what users need, how to develop products, and how to promote marketing. If a product manager is a CEO, then an operator is a CXO.
0X002 Classification of Operations#
The reason for classifying operations is that operations can be too diverse and broad for one person to cover all operational tasks. Therefore, operations are divided into several categories based on different focuses. Common classifications of operations include: product operations, event operations, market operations, content operations, community operations, user operations, and category operations (industry operations). Each category overlaps, and the distinction is merely in the focus.
0X002.1 Product Operations:#
Focusing on products, where products refer to intangible internet products that cannot be seen or touched, such as apps. The Dianping app is a product; it is a large product. The channels within it are also products, such as group buying; a specific function can also be called a product, like payment for bills. Why do we need product operations? Because products need users, and users won't come to use your product on their own. Even if they do come, they may not use it, and even if they use it, they may not stay. Therefore, product operations are about: finding users for the product (user acquisition), encouraging users to come frequently (user engagement), and providing suggestions to make the product user-friendly (user retention).
So what do product operations specifically do? To find users, they usually conduct marketing activities (event operations) and spend money on brand advertising and promotions (market operations); to encourage users to come frequently, they also usually organize activities, send push notifications, and design high-frequency usage features; to provide suggestions, they typically identify product bugs or usability issues and explore new product directions based on user needs, ensuring the product is useful and effective.
0X002.2 Event Operations:#
Focusing on events, which involves designing activities to encourage user participation, prompting users to use products or purchase goods. Event operations mainly involve: planning events and analyzing data. Planning events includes:
Clearly defining event goals, whether it's user acquisition, user engagement, or sales generation; it's best to focus on one goal per event;
Designing event process plans (copywriting, rules, event gameplay, product technical support, promotion, costs, revenues, etc.);
Statistical analysis of event effectiveness, monitoring data during the event, and summarizing and reviewing after the event.
0X002.3 Market Operations:#
Focusing on the market, which means using market methods (whether spending money or not) to promote and expose products and brands, thereby increasing their visibility. For example, spending money on hard advertising or engaging in resource exchanges for mutual promotion without spending money.
0X002.4 Content Operations:#
Focusing on content, which means finding ways to produce a large amount of high-quality content. The challenge lies in content production, which is mainly divided into UGC and PGC.
UGC (User Generated Content) refers to content produced by users, such as writing reviews, posting updates, posting on forums, tweeting, blogging, and sharing on social media. However, users tend to be very lazy, and to encourage them to actively produce content, it is essential to ensure that product usage is as simple as possible, design sharing mechanisms, design user interaction mechanisms, and create content feedback incentive mechanisms (likes are a very good feedback mechanism and a motivation for many people to continuously post on social media).
PGC (Professional Generated Content) refers to content produced by professionals, opinion leaders, teams, or businesses. This content is of higher professionalism and can attract a large number of users, making it very high-quality content. PGC content production usually involves spending money or mutual benefits, such as WeChat public accounts encouraging original content with a high proportion of advertising revenue sharing.
0X002.5 Community Operations:#
Focusing on communities, which involves keeping community users active and encouraging them to generate content and engage in activities. Communities emphasize atmosphere; for example, in Alipay's life circle, people are reluctant to post content because the atmosphere is lacking. The core considerations for community building include: seed users determine the product's temperament, content should ideally be focused, there should be a good feedback incentive mechanism, and relationships among users in the community should be nurtured. With good content, timely feedback, and strong user relationships, users are less likely to leave the community.
0X002.6 User Operations:#
Focusing on users, which refers to user-centered activities, such as improving user experience, increasing user engagement, contribution, loyalty, and growing the user base. User operations should focus on users' feelings when using the product, understand user needs, and study users; plan or provide activities, products, or services that meet user needs, promote user engagement on the platform, and find ways to attract more users; measure the effectiveness of user operations and improve operational measures.
0X002.7 Category Operations:#
Focusing on categories, some companies refer to it as industry operations, which means being responsible for the operations of a specific category or industry and achieving the commercial goals of that category, such as the maternal and child category (industry), clothing category (industry), and parent-child category (industry). Some companies go into detail, further subdividing categories; for example, the clothing category can be divided into men's wear and women's wear, with women's wear further divided into tops, bottoms, dresses, and lingerie. Each major category and subcategory can have one or more category operators. The tasks of category operations involve understanding the industry, including its upstream and downstream, and its users, providing high-quality products or services to users, and achieving the company's commercial goals, which are typically sales targets, the ultimate goal of category operations.
0X003 Basic Skills Required for Operations#
0X003.1 Basic Methods of Operations#
1. Understand Human Weaknesses
The five major weaknesses of human nature often exploited in operations are: lust, vanity, greed, laziness, and curiosity.
An example of exploiting lust: adult websites, social apps, live streaming, etc. If you pay attention, you'll notice that computer news pop-ups often feature various sensational news because such content has high click-through rates and can attract a large number of users. An example of exploiting vanity: various displays on social media, comparisons in games, VIP memberships, etc.
An example of exploiting greed: various discount promotions, cashback websites, and deal-finding platforms. (I'll let you in on a secret: what users may need isn't necessarily the cheapest option, but rather the feeling of getting a good deal.)
An example of exploiting laziness: ordering takeout, hiring temporary cleaners; users are often very lazy. Product operations must be simple; Don’t let them think. If you make them think, they will run away.
An example of exploiting curiosity: anonymous designs like "No Secret" and features like "People Nearby."
A quick search for "The Seven Deadly Sins of Operations" will yield detailed articles.
2. Learn to Break Down Goals
Any complex task can be broken down into simpler tasks, no matter how complicated a computer is, it is still represented by 0s and 1s.
When a problem arises, the first step is to break it down. Complex problems should be divided into smaller, understandable issues. Always remember this mindset. For example, if next month's goal is to achieve 1 million in sales, how to reach that is a problem. How do we break it down? Analyze current data (the purpose of analysis is prediction). If nothing is done, what will next month's figure be? This is called natural growth; if natural growth can reach 800,000 next month, then there is a gap of 200,000, which is where operations add value. List the three (or five) most important tasks; completing these three tasks will achieve the 200,000. Now, does completing these three tasks require other resources and assistance? If you can meet these two conditions, you are good to go (you can basically achieve it). Okay, a complex major task—achieving 1 million next month—has been broken down into three smaller tasks and two conditions.
3. Familiarize Yourself with the SMART Principle
The SMART principle is used for goal management, which is very useful. When setting KPIs, always use the SMART principle to evaluate them. From a leader's level of KPI setting, you can tell whether that leader is competent or just filling a position.
Performance indicators must be Specific
Performance indicators must be Measurable
Performance indicators must be Attainable
Performance indicators must be Relevant to other goals
Performance indicators must have a clear Time-bound deadline
4. Familiarize Yourself with the 5W2H Analysis Method
(You can refer to the 5W1H principle in previous articles.)
When designing plans, use this model to think to ensure nothing is overlooked.
WHAT—What is it? What is the purpose? What work is being done?
HOW—How to do it? How to improve efficiency? How to implement it? What methods are used?
WHY—Why? Why do it this way? What are the reasons? What causes this result?
WHEN—When? When will it be completed? What is the most suitable timing?
WHERE—Where? Where will it be done? Where to start?
WHO—Who? Who will take responsibility? Who will complete it? Who is in charge?
HOW MUCH—How much? To what extent? What is the quantity? What is the quality level? What is the cost-output ratio?
5. Understand the 4P Marketing Mix
This refers to the act of placing the right Product, at the right Price, through the right Place, and with the right Promotion, into a specific market. It is the basic theoretical foundation of marketing, and understanding it is sufficient.
6. Understand the SWOT Analysis Method
This refers to Strengths, Weaknesses, Opportunities, and Threats. It is usually used during new product launches and competitive analysis; understanding it is sufficient.
0X003.2 Basic Tools for Operations#
You should be familiar with the Office suite (Word, Excel, PPT), with Excel being the most important, as it is used frequently for data analysis. There are three key points you must know: vlookup, pivot tables, and charts. Mastering these three can outshine 80% of people.
You should know how to use mind mapping tools. Basic proficiency is okay; you can learn it in an hour. Common software includes: Xmind, MindManager. Mind maps are very useful for thinking through problems, organizing thoughts, and designing plans.
You should know how to use flowcharts. Basic proficiency is okay; you can learn it in about two hours. Common software includes: Visio. Using flowcharts in designing process flows makes plans clear at a glance. Drawing flowcharts can also help avoid design oversights and gaps, as the drawing process is a thinking and reasoning process.
You should know how to create wireframes, commonly done using Axure. Basic operations can be learned in about ten hours. Wireframes are often used to design activity pages, and a good wireframe can significantly enhance the efficiency of operational requests.
You should know how to create Gantt charts, which can be done using Excel. Gantt charts are frequently used in project management to clarify when tasks will be completed, ensuring projects progress and finish on time.
0X003.3 Basic Knowledge Points for Operations#
These basic knowledge points are only briefly touched upon in this article; interested readers can delve deeper on their own.
0X004 Discussing Product Knowledge#
0X004.1 Basic Product Knowledge#
Understand the importance of user experience; good user experience determines the success or failure of a product;
Understand the relationship between products and operations; products are born, and operations nurture them. One must have the determination and ability to operate even if the product is subpar;
Understand the process of product realization: requirement gathering, requirement evaluation, prototype interaction, PRD, development and launch, data effect evaluation, iteration, and optimization.
0X004.2 Business Models#
Understand business models and be able to analyze them.
A business model is a complete closed-loop play that allows a company to sustain profitability. For example, what is the business model of Dianping? Simply put, it relies on UGC to generate review data, attracting users and merchants. Users look for dining and entertainment reviews, while merchants engage in word-of-mouth marketing and seek users on the platform. With users and merchants, selling traffic (users) to merchants generates profit, which is a typical platform business model.
The platform business model revolves around how to connect both sides of the platform (users and merchants are the two sides, and complex platforms may involve more sides) and guide both sides in a positive cycle. As the number of users increases, it becomes more attractive to merchants; as the number of merchants increases, users have more choices, which in turn increases attractiveness to users, thus developing the platform's business model.
Of course, this is just a simple example; the actual situation is much more complex. Interested readers can check out the book "Platform Strategy" (highly recommended, not an advertisement, and I do not know the author).
0X004.3 Internet Thinking#
Internet thinking has propelled Xiaomi to success and sparked much controversy, but it does not hinder our understanding of it. Internet thinking refers to: user thinking, minimalist thinking, extreme thinking, iterative thinking, traffic thinking, social thinking, big data thinking, platform thinking, and cross-border thinking. Interested readers can check out the book "The Nine Swords of Internet Thinking" (highly recommended, not an advertisement, and I do not know the author).
0X004.4 Industry Knowledge#
To work in operations, one must understand the industry. If you are in clothing category operations, you need to understand the clothing industry; if you are in food operations, you need to understand the food industry; if you are in parent-child operations, you need to understand the parent-child industry; if you are in ride-hailing operations, you need to understand the transportation industry. In other words, being an operator inevitably involves the industry, so one must become an expert in that industry, which is a quality that an exceptional operator should possess.
0X004.5 Data Analysis#
In operations, one must be sensitive to data. The key points of data analysis are: statistics, analysis, and forecasting.
Data statistics: Why is it important to understand this? Because sometimes statistical data can be misleading. Therefore, when collecting data, do not be deceived by it; treat data sources and statistical methods scientifically and cautiously. For example, when conducting sampling surveys, the choice of samples is crucial. When assessing whether an event is effective, correlation testing is very important.
Data analysis: Simply presenting cold data is meaningless; data must be compared and proportioned to assess quality and trends.
Data forecasting: By comparing analyses and assessing external environments, one can roughly predict future data trends.
0X004.6 Common Terms#
Marketing-related: CPC, CPM, CPS, SEO, SEM, precision marketing
Content-related: UGC, PGC, KOL
Model-related: O2O, C2C, B2C, B2B, C2B
Operations-related: PV, UV, click-through rate, CTR, conversion rate, ROI, ARPU, customer acquisition cost, daily active users, monthly active users, retention rate
Transaction-related: traffic * conversion rate * average order value = GMV
That's it for the knowledge framework commonly used in internet operations. Mastering these will make you a CXO.