Why do enterprises need digital transformation?

The digital trend triggered by social media, mobile devices, Internet of Things and big data not only changes people's lifestyles, but also requires enterprises to rethink the original operation mode. In real life, digitalization is perceptible. For example, when we browse news online, it is the digitalization of media content. With the development of digitalization, "digitalization" has jumped away from the concept of binarization and become a new way of human interaction with the world. Nowadays, we live in an era of data-driven development, and enterprises that cannot adapt to the development and progress of the times will fall behind and be eliminated. A new technology era came into being, and a data-led digital enterprise era will also come.

Digital transformation is an inevitable requirement for enterprises to adapt to the times

As early as 1996, Nicholas Negroponte predicted today's digital age in "Digital Survival", which is known as the Bible of information technology and concept development in the 2th century: digital survival is a new way of life based on information technology in modern society. In the digital living environment, people's production mode, lifestyle, communication mode, thinking mode and behavior mode all take on a brand-new look. For example, the digital infiltration of productive forces, the digital reconstruction of production relations, and the overall digitalization of economic activities have branded the material production mode of society with a strong digital brand, and people have embodied brand-new digital politics and economy through digital government affairs, digital commerce and other activities; Through online learning, online chatting, online games, online shopping, online medical treatment, etc., it depicts a different way of learning, communication and life.

in p>217, "digital economy" was officially written into the report of the 19th National Congress of the Communist Party of China. According to the 217 Report on the Development of Digital Economy in China released by a research group composed of China Informatization committee of 1, Accenture and National Information Center, the total digital economy in China reached 22.6 trillion yuan in 216, accounting for 3.3% of GDP. KPMG predicts that by 23, this proportion will reach 77%, and the GDP contribution of more than 153 trillion RMB will come from the digital economy.

in March, 218, the government work report put forward "developing and expanding new kinetic energy" and "fueling the construction of digital China". The country's positioning of the digital economy is not limited to the level of emerging industries, but it is promoted to a national strategy that drives the upgrading of traditional industries.

enterprises in the torrent of the digital age must also keep pace with the times and keep up with the times to avoid becoming outcasts of the times.

Digital enterprise is an inevitable stage of enterprise informatization development

From the perspective of history and development trend, the process of enterprise informatization in China can be roughly divided into the following stages:

The first stage: electronic business operation. Electronization refers to the process of transforming the daily manual and heavy work of enterprises into the work of machines to improve the efficiency of individual work. This stage is the single application of information technology and the preparation stage before enterprises go online. It is mainly manifested in the single application of computers in office, finance, personnel and some production and operation links, such as financial computerization, manufacturing automation and the preliminary application of information technology such as CAD/CAM and MIS.

the second stage: business process informatization. Informatization is to solidify the business process through enterprise management reorganization and innovation, combined with IT advantages. This stage is the leading-in stage of enterprise informatization, especially network construction and application. Expand computer applications in various enterprises, promote enterprises to access the Internet, establish e-mail, and encourage enterprises to use information network technology to carry out business activities and improve management. Widely carry out process combing and information construction, such as ERP, MES, SCM and other systems. This stage focuses on the process of the whole organization and improves the efficiency of the organization.

the third stage: digitalization of business and management. It is the application of digital technology to integrate the information of purchasing, production, marketing, finance and human resources of enterprises, do a good job in planning, coordination, supervision and control, break the phenomenon of "information island", form a value chain systematically and implement the business process of enterprises according to the characteristics of "chain". Respond flexibly to changes in the environment, continuously improve business processes, comprehensively enhance execution and gain lasting competitiveness. It is the product of the combination of modern digital technology and enterprise management.

the fourth stage: intelligent business decision. Intelligentization refers to the ability to intelligently create and excavate new knowledge based on the existing knowledge of enterprises, which can be used in business decision-making and daily management of enterprises, and form a self-organizing, self-learning and self-evolving enterprise management system. At this stage, the advanced ideas of artificial intelligence and expert system will be applied in the field of enterprise management.

Digitalization is not only the product of informatization, but also one of the evolution stages of informatization, and it is also the primary prerequisite for building a smart enterprise.

Digital transformation is an inevitable choice for enterprises to build competitiveness

Why do enterprises want to do digital transformation? The author believes that there are two factors, internal and external. External factors: in the tide of digital transformation, enterprises are sailing against the current, if they don't advance, they will retreat. Without digital transformation, enterprises will be abandoned by users, surpassed by competitors, marginalized by the market, and eventually out of the game. Internal factors: digital transformation can capture new market opportunities, try new business models, and occupy a place in the future business market in advance.

from the perspective of enterprises, customer-centered is the key for enterprises to survive in the market competition. With the arrival of digital wave, the status of asymmetric information of users has been greatly improved, and the maximization of customer perceived value has become the orientation, which fundamentally changed the traditional production-oriented business economic model, bringing great challenges and new opportunities to the operation of enterprises. Different from the competition mode in the traditional industrialization period, the core competitiveness of enterprises in the digital economy era has changed from the traditional "manufacturing capability" to "service capability+digitalization capability+manufacturing capability". Enterprises should have the ability to carry out technological R&D and innovation, and accelerate the transformation of R&D and design to synergy, dynamics and innovation. They should have the ability to change production methods and accelerate the transformation of industrial production to intelligence, flexibility and service. Enterprises should have the ability to rebuild organizational management, accelerate the expansion of organizational management to flattening, creating customers and self-organization, and have the ability to cross-border cooperation, so as to promote the evolution of innovation system from chain value chain to flexible value network that can interact in real time and participate by many parties.

digital transformation is the internal demand of enterprises to reduce costs and increase efficiency

the application of digital technology can reduce the cost of enterprises. The White Paper "The Impact of the Fourth Industrial Revolution on the Supply Chain" released by the World Economic Forum at the International Supply Chain Conference last year pointed out that 79.9% of manufacturing enterprises and 85.5% of logistics enterprises believe that digital transformation will have a positive impact without considering the financial impact. Digital transformation will reduce the cost of manufacturing enterprises by 17.6%, increase their revenue by 22.6%, and reduce the cost of logistics services by 34.2% and increase their revenue by 33.6%.

the application of digital technology can improve the efficiency of enterprises. The Internet has concentrated a large number of digital technical resources and services, and has generated economic value by greatly improving application efficiency. Internet services directly lead to the concentration of computing services and information services, and further promote the concentration of various service resources, making centralized and open service platforms have great room for development. The * * * service-sharing cloud platform based on the Internet not only enables small and medium-sized enterprises to enjoy advanced information technology applications and services at a very low cost, but also enables the technical equipment of large enterprises to be fully applied, thus improving the product utilization rate. Digital information and knowledge are tools that follow the increasing marginal benefits, and realize the cumulative value-added benefits by increasing the scale of use. Digital information and knowledge are shared, reused and copied at low cost. The more they are used and improved, the greater the value they create. According to the research, enterprises operating in the mode of "data-driven decision-making" can greatly reduce the complexity and uncertainty of intelligent manufacturing systems by forming an automated data link and promoting efficient cooperation in all aspects of manufacturing, and their productivity can generally be increased by 5%-1%.

Digital transformation is the only way for business process reengineering

In the digital environment, enterprises are in a criss-crossing network relationship. Facing scattered network nodes, platform-based industrial organizations that integrate multi-party resources emerge as the times require, and the enterprise value creation mode has changed from traditional linear to chain and network, which makes the competition and cooperation between traditional enterprises tend to be ecological and platform-based. For example, GE has reached a cooperation with Apple to open the development tools and micro-services of the Predix platform to Apple and attract developers to join the development of industrial apps, which will help turn the Predix platform into a supermarket and a knowledge exchange center in the industrial field and promote the ecological prosperity of the open source community based on the platform. For example, relying on the "ET Industrial Brain" platform, Alibaba Cloud gathers the technical capabilities of 3 information service enterprises in Jiangsu Province, provides system solution services for 3 manufacturing enterprises, and promotes the transformation of cooperation between large, medium and small enterprises from simple technology transfer to tradable and collaborative service ecology.

various economic and social activities are closely related to the generation, transmission and use of data. as an independent factor of production, data flows rapidly in the process of value creation. data flows emphasize the interconnection and comprehensive integration of information systems, and tap new values of intelligent organization, management and service. With the development of information technology, the data flow no longer has to follow the top-down or bottom-up hierarchy. This undifferentiated and non-hierarchical data flow mode has greatly subverted the traditional pyramid management mode of enterprises, driven the change of enterprise organizational structure, the optimization of business processes and the innovation of work content. The enterprise organizational management has gradually transformed from a linear paradigm dominated by processes to a flat collaborative paradigm driven by data, forming a new organizational structure with efficient information flow, rapid response to demand and full stimulation of innovation ability.