Traditional enterprises transform to
release:2021-07-08

In 2021, China is entering the first year of its 14th Five-Year Plan. In 2020, the COVID-19 pandemic has greatly accelerated the development of the digital economy, and also caused a huge impact on the existing industrial chain of traditional enterprises. Li Junqi, chairman of Foxconn Industrial Internet Co., LTD., summed up the industrial transformation in the post-epidemic era. At the 2020 Annual Conference of Chinese Business Leaders, a number of entrepreneurs gathered together to discuss the development and optimization of modern industrial system of enterprises.Digitalization is the intellectualization based on big data, which is the direction of future digital transformation. Li said the company began its digital transformation in 2012 when it began building the first "lights-out factory" equipped with smart terminals -- highly automated factories that operate even when the lights are off. "At that time, robots were used to replace people with automated machines to do jobs that people did not want to do. After 8 years of exploration, the factory gradually from automation to digital, network, and then to intelligent ". In his view, digitalization is to achieve "factory awareness", networking is to "connect a lot of equipment for common control",upgraded to intelligent gradually.

What challenges will traditional enterprises face when they enter the development state of "digitalization"? Huang Kxing, secretary of the Party Committee and chairman of Tsingtao Brewery Group, believes that the epidemic and "digital intelligence" have restructured users' consumption concept, lifestyle and purchasing behavior, and enterprises have also restructured their strategic choices, business models and product boundaries. "In the final analysis, they have restructured their core competitiveness."

Traditional enterprises are sparing no effort to interact with The Times. Although the transformation process of "digitalization" is different, Huang Kexing believes that "the basic idea of transformation is the process from consumer demand to consumer supply". In his opinion, "By analyzing consumers through a series of big data and production scheduling systems, we can know the demands of different regions and different groups for products so that arrange production plans. In the past, this was a big problem for companies in the artificial forecasting stage.

Ali's rhino Factory opened in early September last year. Combining cloud computing, the Internet of things and artificial intelligence, this "digital intelligence chemical factory" not only provides fashion trend prediction, but also makes a flexible transformation of the traditional clothing supply chain -- 100 pieces of minimum order, 7 days delivery, seems to be able to solve the inventory pressure of the clothing industry.

Regarding this, according to wen Group chairman Xia Hua admitted that this year, each industry is in the break, Ali's break, for the clothing industry Internet speed and digital speed, brought a breakthrough change. She is optimistic about the digital transformation of the clothing industry. "The front-end selling will become more and more decentralized, but the back-end supply system may need a real centralization."

Li Junqi agrees with the crossover of rhino factory. In his opinion, the "digitalization" transformation of enterprises is the general trend, and cross-border innovation can solve the problems faced by some enterprises to explore and break through core technologies. "Improve quality and efficiency, reduce cost and savings, I believe this will play a certain role in promoting the high-quality development of enterprises."

Zhu Hongren, executive vice president and director general of China Enterprise Confederation and China Enterprise Entrepreneurs Association, warned that entrepreneurs generally recognize the trend of digital transformation, and need to invest in, trial and error. "This does not mean that enterprises should do everything themselves in the process of digital transformation, but let the most appropriate people do the most appropriate things". Huang Kexing knows this well. In the process of "digital intelligence" transformation, they did not "get involved in the operation", but chose to cooperate with emerging technology enterprises, through their empowerment, improve the operation efficiency of the enterprise.

It is worth noting that traditional enterprises are often full of the brand of The Times, with a set of production and operation system, organization system, RESEARCH and development system and production, supply and marketing system built over decades. In the social and economic situation has undergone fundamental changes today, how to follow the trend? Liu Yonghao, chairman of New Hope Group, put forward that the digital transformation of traditional enterprises should be "organizational re-engineering" in order to seek new development under the new pattern.

This requires the incentive mechanism, constraint mechanism, enterprise culture and enterprise pattern of traditional enterprises to undergo fundamental changes, rather than simply adding the original organizational system and digitalization to become a new enterprise." He suggested that traditional enterprises should establish new mechanisms, boldly use new youth and new technologies, and have the courage to open up new tracks and shoulder new responsibilities. "We have extensively implemented the partnership system, which aims to share and contribute to the joint development. Most of the more than 30,000 new employees recruited this year are college students, and employees are encouraged to take an active part in radiance poverty alleviation. The company from the original production of feed, to the comprehensive development of pig farming, cattle farming, dairy industry, but also around the consumption upgrade, to create a new life cold chain logistics."

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