Transformation and upgrading are the only way out, how should industrial digitalization go in the future?


Digital transformation has become the only way out for enterprises. How should companies transform? A feast of ideas about industrial digitalization is coming, providing new ideas and new methods for many enterprises.

The era of the future is the era of digitalization.

This year, in particular, has become a turning point in digitalization. Many traditional enterprises are facing the situation of “transformation seeking death, not changing and waiting for death”. As Jack Ma said, digitalization used to make some companies live better, but today is the key to the survival of companies.

In other words, there will be no non-digital enterprise in the future. Digital transformation has become an urgent need for enterprises to survive.

However, for businesses, transformation is not a one-time event, but requires a protracted change.

How should companies digitally transform? Where will the digital development trend go? How can enablers help traditional enterprises to complete transformation and upgrading? What is the best path to digital transformation for an enterprise?

Focusing on these issues, Whale Rhino will organize an unprecedented industry digital summit, which aims to help enterprises complete their transformation and upgrading with new digital and intelligent methods such as new technologies, new media, and new channels in the era of the Industrial Internet.


Digitalization is the only way out for enterprises

Since February this year, the sudden outbreak of the epidemic has swept the physical industry, with a large number of factories closed and shops closed. Even some companies that have built digital technology for a long time have not escaped the impact of the epidemic.

It can be said that everyone is equal before the risks of the economic system, but there are also opportunities hidden in the crisis. This epidemic has turned many original emergency technologies into everyday technologies, which has become a huge opportunity for enterprise transformation.

Jack Ma said at the 2020 Smart Expo Big Data Intelligence Summit that the past year has been unusual and the world has undergone tremendous changes, but there is no doubt that the trend of digitalization has not changed. The process of digitization, which could have taken thirty to fifty years to complete, has now been greatly accelerated, and the process is likely to be shortened to ten or twenty years. Of all the uncertainties, digital is the huge opportunity we are most certain of right now.

The advent of the digital age has accelerated the changes in economic and social forms and operating modes, and a wider and deeper technological revolution and industrial revolution is reshaping the way the industry develops.

According to IDC’s forecast, by 2021, at least 50% of the world’s GDP will be realized digitally, and digital technology will fully penetrate all industries and achieve cross-border integration and multiplication of innovation.

The China Academy of Information and Communications Technology issued the “White Paper on the Development of China’s Digital Economy (2020)”, which first mentioned the “four modernizations” framework of the digital economy: digital industrialization, industrial digitization, digital governance, and data value, and pointed out that the current digital economy is already a global economy. key driver of growth.

This means that for traditional enterprises, digitalization is undoubtedly the best way out. The “China Industrial Digitalization Report 2020” proposes that industrial digitalization is under the support and guidance of a new generation of digital technology, with data as the key element, value release as the core, and data empowerment as the main line. The process of digital upgrading, transformation and reinvention.


Challenges and opportunities coexist

The importance of digitalization cannot be overemphasized. Nonetheless, the challenges faced by enterprises cannot be ignored.

The “China Industrial Digitalization Report 2020” pointed out that it is mainly manifested in five aspects: first, the lack of its own digital transformation capabilities leads to “no transfer”; second, the cost of digital transformation is too high, and its own capital reserves are insufficient, resulting in “unable to transfer” The third is the lack of digital talent reserves in the enterprise, which leads to “don’t dare to transfer”; the fourth is that the digital transformation strategy of the decision-making level of the enterprise is unclear, which leads to the “unwillingness to transfer”;

Not only that, the digital service industry of domestic enterprises has become a leader, while industry and agriculture are relatively backward. Data show that in 2019, the added value of my country’s industrial digitalization is about 28.8 trillion yuan, accounting for 29.0% of GDP. Among them, the penetration rates of digital economy in service industry, industry and agriculture are 37.8%, 19.5% and 8.2% respectively.

On the one hand, the development of the overall industry is unbalanced, and on the other hand, there are many problems faced by enterprises themselves. This means that from the inside to the outside, it is not easy for enterprises to truly realize the digitalization of the industry, and it will even be a protracted endurance race.


First results of digital practice

It can be said that digitalization has been deeply integrated into various industries. Almost all companies that are currently leading in various industries have an important characteristic, that is, they are the first to start the digital process than other companies.

In this regard, many domestic enterprises have provided transformation models, and there are many cases interviewed by Whale Rhino before.

1. Representative of the retail industry: HEYTEA

As an offline tea company established in 2012, HEYTEA was just a small riverside shop called Royal Tea ROYALTEA in Jiangmen, Guangdong, before 2017.

However, driven by the new retail format and technology, HEYTEA has started a comprehensive digital transformation since 2017, from the client, supply chain, marketing system, to OA office, financial system, network equipment, cash register system, Electronic human resource management, etc. Realize the overall business online.

Especially the small program launched in 2018, in addition to solving the pain point of offline queuing, HEYTEA quickly gained more than 26 million members in two years. At the same time, HEYTEA is promoting comprehensive data collaboration, designing algorithms, and building a transparent, open and collaborative information flow platform to solve the problem of isolated information islands, which will help improve efficiency and reduce internal management costs.

It is precisely because of this that HEYTEA can become the No. 1 tea drinker on the Internet, and is more well-known than Nai Xue’s tea.

2. Representative of the manufacturing industry: Dongfeng Motor

Dongfeng Motor Co., Ltd. Equipment Company is a joint venture between Dongfeng and Nissan, and is also the largest comprehensive automobile equipment manufacturer in my country. Up to now, the company has three professional production plants and one subsidiary company: General Casting and Forging Plant, Equipment Manufacturing Plant, Blade Measuring Tool Plant, Dongfeng Die Stamping Technology Co., Ltd.

Since the end of 2013, Dongfeng Equipment has carried out the transformation and planning of digital equipment, realized an information platform from sales, planning, procurement, equipment tooling, and quality inventory, constructed a unified code for standardized management of basic data, and established The financial business integration of the quality traceability system.

After the epidemic this year, Dongfeng Equipment has built a simultaneous production plan execution system with ERP as the core to achieve horizontal integration from orders to services, achieve financial and business integration, and make decisions based on facts to realize the implementation from strategy implementation to business management. Vertical integration.

After the digital transformation, the effect is remarkable. For example, after the hands-free system is used to record data, the entire information integration platform can realize on-site visualization, business management visualization and trend prediction. At present, Dongfeng Equipment has achieved business and financial integration, execution system integration and quality forward traceability system.

Just like HEYTEA and Dongfeng Equipment, many companies have already started the process of digitalization. In this regard, the “Opinions on Supporting the Healthy Development of New Business Forms and New Models, Activating the Consumer Market and Driving Employment Expansion” jointly issued by 13 departments including the National Development and Reform Commission, the Central Cyberspace Administration of China, and the Ministry of Industry and Information Technology clearly stated for the first time that 15 A new business model.

In other words, all industries can accelerate the development of enterprises through digitalization. 15 new business formats, manifested in online education, Internet medical care, online office, digital governance, industrial platform development, digital transformation of traditional enterprises, “virtual” industrial parks and industrial clusters, “unmanned economy”, and fostering new individual economic support Self-employment and the development of micro-economy encourage “sideline innovation”, explore multi-site practice, share life, share production, share production materials, and circulate data elements.

For example, in the field of online education, classroom teaching based on an online intelligent environment can be carried out; in the field of medical care, online appointment inspections can be made through the construction of smart hospitals; in the transformation of traditional enterprises, the combination of basic products for digital transformation can be organized Tackling key problems, developing open source communities, and lowering the technical threshold for digital transformation of traditional enterprises; in the manufacturing industry, it can support the construction of infrastructure such as smart factories, autonomous driving, and unmanned distribution.


How does digitalization guide the future?

Since digitization has become the only way out for all walks of life, how should companies practice it correctly? This has become a major research topic.

As an observer and recorder of the development trend of the entire industry, in addition to paying attention to the content of industrial economic reform, Whale Rhino also provides services to help enterprises reengineer and upgrade, regularly organize salons, closed-door meetings, online open classes, etc. This kind of activity provides first-hand industry information and opportunities for exchange and cooperation to enterprises with the intention of upgrading and reengineering, as well as companies providing technologies/solutions/platforms.

To this end, Whale Rhino has specially planned the “2021 Whale Rhino Industry Digital Summit” with the theme of “Digital Upgrade, Industrial Transformation”.

The time is set for January 12, 2021.

At the summit, we will invite TOP-level enablers in the industry and well-known enterprises that have completed transformation and upgrading through the practice of digitalization to share their methods and experiences, and provide new ideas for the transformation and upgrading of enterprises. Moreover, this summit will also be the only digital transformation and upgrading summit in the industry with an industry-wide perspective.

At the same time, in the past numerous conversations with business leaders and CIOs of both parties A and B, Lei has precipitated many cases of digital transformation and upgrading, and has unique thinking.

To this end, we will also launch a digital industry selection activity that fully covers the industry’s major industry enablers and practitioners, aiming to discover and study the process of digital transformation and upgrading of Chinese enterprises, and find companies that have made outstanding contributions in the field of digitalization. Cases, products and technologies light up the digital road of enterprises.

The list is mainly divided into two parts: the first part, the selection of the top ten enablers of industrial upgrading of the year; the second, the selection of the top ten practitioners of industrial upgrading of the year.

The fields covered by the list cover industry, retail, automobile, finance, medical care, education and other To B industries. All kinds of enablers and practitioners of industrial upgrading are also welcome to sign up.


Author: Yoyokuo