Daniel Zhang, CEO of Alibaba Group, speaks at the sub forum themed "Internet Technology and Standards - Internet of Things Drives Industrial Transformation" in Wuzhen on Friday. [Photo/zjol.com.cn]

A new business model can only take shape when the Internet is combined with traditional industries, CEO of Alibaba Group Daniel Zhang said at the sub forum themed "Internet Technology and Standards - Internet of Things drives industrial transformation" in Wuzhen on Friday.

"The Internet is as basic as any resource such as water, electricity and gas...it itself is not a business model; it can only transform the future of the business landscape when it's combined with industries," Zhang said.

Zhang attributed the success of "Double 11" when record sales have been registered on Alibaba's online retail platform Tmall on Singles Day on Nov 11 to the united work by every participant in the industry.

Zhang also stressed added value should be applied to the services provided by the Internet.

China has witnessed a rapid development of its Internet industry over the past two decades. The Internet has profoundly affected almost every facet of Chinese people's lives including communication, transportation, and entertainment.

The Second World Internet Conference, the most high-profile Internet related event in China, is taking place in the picturesque water town of Wuzhen, Zhejiang province, Dec 16 to 18.

The conference, with a goal of "building a cyberspace community of shared destiny", has gathered together more than 2,000 participants, including state leaders, government officials, business leaders, Internet titans, and experts from more than 120 countries and regions.