Alibaba presented on June 29 a new subsidiary named “Lingyang Intelligent Service Co” which will provide an on-demand data intelligence service. Aimed at companies, this service uses artificial intelligence to help with digital transformation. This branch strengthens the position of the e-commerce giant in the business to business market.
A range of services for businesses
Already the Chinese leader in cloud computing services with Alibaba Cloud, the firm wants to diversify its service offering for businesses. The cloud allows professionals to access a catalog of software on demand, making Alibaba a heavyweight in the sector, accounting for 37% of cloud infrastructure in China. Alibaba Cloud is present in more than 25 countries, including the United States, which had not been missed arouse the suspicion of regulators in 2021, who are concerned about access to personal customer data by a foreign power.
The team responsible for the new division “Lingyang Intelligent Service Co” is made up of the company’s data experts and will be led by Alibaba Vice President Peng Xinyu, reports the South China Morning Post. The exploitation of data by artificial intelligence will provide advice to companies to improve their productivity, adapt their marketing campaigns and offer other types of services.
This “intelligent data service” aims to help companies in decision-making and operational efficiency using artificial intelligence. Alibaba wants to stand out from the competition by entering this sector and seeks to distinguish it from its own cloud computing offering. Lingyang contains eleven products at the moment, among which are: Dataphin, a data modeling tool, Quick Audience which allows audience targeting and analysis, or Quick BI (Business Intelligence), facilitating analysis and use of data for decision making.
Alibaba diversifies amid economic uncertainty
With its new subsidiary, Alibaba wants to face stiff competition from JD.com and Pinduo-duo in the e-commerce sector in China. Falling consumption and the fragile economic situation have also pushed the Chinese company to explore new business opportunities.
At the start of 2022, the e-commerce giant announced a slight increase in its turnover, of 9% compared to the previous year. Currently, the strategy adopted by the firm is a expansion of its activities internationally to combat China’s economic slowdown. The effects of Beijing’s restrictive policy against local digital giants are still being felt. This new division should allow Alibaba to maintain its position, despite the prevailing economic uncertainty.