Digital transformation is becoming the core strategy of manufacturing enterprises

- Apr 29, 2019-

In recent years, the competition in Chinese manufacturing industry has become increasingly fierce. The downward pressure on the economy and the increase in production costs and labor costs have enabled manufacturing companies to focus on digital transformation, use new technologies to improve production efficiency, and strengthen product innovation and management capabilities to win competitive advantage. . With the increasing popularity of the Internet, the rapid development of computing and storage capabilities, the widespread use of Internet of Things and sensor technology, and the continuous evolution of industrial software, data collection, storage, transmission, presentation, analysis and optimization have a good technical foundation. In this context, the wave of digital transformation in manufacturing is unstoppable.

In order to comply with the new situation, manufacturing companies are actively accelerating organizational change, business innovation and process reengineering, and promoting the digital transformation of key aspects such as R&D, production, management, and service, thereby realizing the openness of the R&D system, intelligent production methods, and personalized product services. The organizational boundary is flexible and the value network is ecologicalized, forming a new type of enterprise with digital technology as the core element, supported by the open platform, and driven by data. According to IDC research results, 84.9% of Chinese manufacturing companies are undergoing different levels of digital transformation, and digital transformation is becoming the core of manufacturing enterprise strategy.

For manufacturing companies, digital transformation is all-round, but traditional manufacturing companies still face many difficulties in achieving digital transformation. According to a research report issued by Accenture, 80% of Chinese companies are trying to make their business more efficient and promote business growth through digital technology. However, only about 4% of enterprises have truly released the potential of digital.