Aimeike: What is the key to the success of digital transformation?

Issue 009

In 2020, driven by epidemic situation and new infrastructure, "digital transformation" has become a hot spot of enterprise development. Even the national team has begun to embrace digital transformation and upgrading, and the digital transformation of the whole industry is basically a foregone conclusion. When many enterprises finally began to wake up, they found that many enterprises had already completed digital transformation and sailed to the sea of stars. Among them, beauty is a successful example of digital transformation of manufacturing industry.

Midea first changed from the development mode of M&A to the integrated management mode, and then improved the product quality through the continuous research and development of technology and products, and attaching importance to the cultivation and encouragement of R&D talents. Through flexible production mode, "online batch mode" and "national one-plate goods" logistics system, the purpose of reducing costs and increasing efficiency has been achieved.

The slogan of digital transformation and upgrading of traditional enterprises is loud and clear, but more enterprises are faced with problems such as not being able to transfer and not daring to transfer, and few enterprises can really complete the transformation. As Fang Hongbo, chairman and president of Midea Group, and other senior executives said in an interview, "Digital transformation is like a breath of breakthrough and resistance, which may be a new world. If you don't hold back, you can only return to the starting point. "

What is the key to digital transformation and upgrading? We might as well look for the answer in Beauty.

0 1

The road of digital transformation of beauty

In 20 12, Midea Group went public, and Fang Hongbo joined Midea Group as the chairman and president. However, at that time, Midea was a new group formed by decentralized secondary industrial groups, which was highly decentralized internally, with its own business departments and more than 65,438+000 IT systems, resulting in a high degree of decentralization of all information systems in Midea. At the critical moment, Fang Hongbo and other senior executives of the United States reached an agreement to directly tear down and rebuild the digital system that had been established for many years and operated stably. IT took three years to reconstruct all the processes, IT systems and data standards of Midea, and the digital transformation of Midea officially entered the stage of 1.0.

In 20 15, the popularity of "internet plus" in the market will subvert traditional industries. Midea put forward the strategy of "double intelligence", introduced "internet plus" into Midea from two aspects of intelligent products and intelligent manufacturing, and completed the work of intelligent manufacturing factory, big data platform and mobile all systems.

In 20 16, midea began to upgrade from digital 1.0 to 2.0, and its business changed from layer-by-layer distribution and production-fixed sales mode to sales-fixed production, which meant that it had to face many fragmented orders. As a result, Midea changed from the original mode of supporting large order supply to a fragmented order supply mode through system upgrade, thus improving its flexible supply ability to uncertainty.

In 20 18, the technology of internet of things gradually matured, and Midea began to build an ecological chain of home appliances.

20 19 to 2020, Midea will upgrade its IT system from industrial Internet, cloud platform and smart factory to realize data-driven business operation.

Many people believe that digital transformation needs a long period of pain. In fact, the reason why the United States is marching forward on the road of digital transformation and upgrading is precisely because it has tasted the sweetness.

Since 20 12, with the promotion of digital transformation and upgrading, Midea's revenue has increased from10 billion to about 280 billion, and its profit has increased from 3.3 billion to 24 billion. Midea not only occupies more market segments, but also has more innovative products. The time to market is shortened by 45% and the cost is reduced by 85%.

On August 30th, 2020, Gree and Midea released the financial report for the first half of the year. In the first half of the worst epidemic, Gree's net profit was 6.362 billion yuan, down 53.73% year on year, while Midea's net profit was 65.438+03.928 billion yuan, down only 8.29% year on year.

Beauty and Gree, known as "white electric heroes", have long been in the stage of chasing after each other. Due to Midea's earliest promotion of digital transformation and upgrading, Midea achieved nearly twice the revenue, profit and profit margin of Gree during the epidemic.

02

Digital transformation

What the hell is "turn"

So what is digital transformation and upgrading? For traditional enterprises, digital transformation refers to the unified management of all process links such as production, circulation, operation and sales through information technology, so as to realize the efficient search and use of materials and data, help enterprises make decision management through data, and enhance their competitiveness in an all-round way.

As Fang Hongbo said, after nearly nine years of continuous digital transformation, great changes have taken place within Midea Group.

Before digitalization, most of the important information and data in enterprises were stored in paper files, and a large number of paper files made it very difficult for enterprises to retrieve and enjoy information. In digital enterprises, business efficiency has been improved several times than before.

As far as working methods are concerned, after the completion of digital transformation, Midea's internal employees, partners, upstream and downstream enterprises, etc. Work can be done in a more up-to-date way, and suppliers can complete all transactions and supplies on mobile phones.

Digitalization not only improves work efficiency, but also improves the beautiful cash conversion cycle, improves turnover efficiency, accelerates the response to market conditions, greatly shortens the product development cycle and improves profitability.

At the same time, with the blessing of digital technology, Midea's production, research and development, retail and management are more flat and rapid. In addition, based on the digital transformation, Midea Group is exploring the C2M model of forward-looking product development based on user needs.

In other words, in the process of digital transformation, Midea's working mode, organizational efficiency, business and business model have all undergone fundamental changes. Internal information such as employee information, equipment parameters and business data; External data such as product users, enterprise customers, upstream and downstream partners are all bound to the digital system, thus reshaping the entire value chain of the enterprise.

03

The transformation was unsuccessful.

Maybe it's a gift

For most enterprises, the success of digital transformation depends on whether the organization has the corresponding capabilities. Among many abilities, the allocation of digital talents directly determines whether the digital transformation and upgrading of enterprises can be successful.

The digital transformation and upgrading of enterprises is not only the update of IT systems and applications, but also the transformation of employees and corporate culture, all processes and ways of doing things in Google's working style. This also determines that a group of technical digital talents are needed to solve the problems faced by enterprises during the transition period, and promote the digital transformation of enterprises by improving the efficiency and value of production, marketing, logistics and management.

So what kind of employees are "digital talents"?

Taking Midea as an example, Midea is a large-scale comprehensive enterprise with white goods manufacturing as its main business, and its business operation involves a large number of upstream and downstream supply chains. Therefore, the scientific management of uneven upstream and downstream partners on a digital platform has become the top priority to improve the efficiency of business cooperation. This process needs to realize all user data and information online and mobile, so that partners can communicate, enjoy and spread information with each other through online tools anytime and anywhere.

This also requires digital talents to perform duties such as communication, collection, analysis, planning, design, development, landing, maintenance and optimization. And in specific work scenarios, these employees need to be able to communicate with professionals, provide their own business needs and ideas to solve problems, and adapt to changes in business models as soon as possible.

Moreover, in the overall planning and layout of enterprises to reduce costs and increase efficiency, digital management talents who know both enterprise management and digital technology are needed to be responsible for the overall promotion of the work.

However, for traditional enterprises, most people who are proficient in the business characteristics of this industry often have insufficient understanding of digital skills; When recruiting and introducing external talents, companies will encounter challenges such as difficulties in business understanding and communication and coordination.

In the process of digital transformation and upgrading, organizational change and talent ability system construction are also tested problems and pain points during the transformation period. In fact, this is also a question that more and more traditional enterprise leaders, chief information officers and internal trainers have been thinking about for a long time.

However, even Fang Hongbo was very anxious at the initial stage of the digital transformation and upgrading in the United States. "When I consider the investment in digital transformation every year, it is my most difficult and anxious moment. This figure is as high as several billion per year, but the effect of investment is unpredictable in the short term. "

For the latecomers, it is not entirely the stage of crossing the river by feeling the stones. In the enterprises that have completed the digital transformation, we can learn a lot of successful and failed experiences, so as to avoid the harm and disaster caused by the failure of transformation. Moreover, due to the efforts of these pioneers, mobile digital transformation talents have begun to appear in the market today.

With the official issuance of the Notice of the State Council SASAC on Accelerating the Digital Transformation of State-owned Enterprises, the digital transformation and upgrading has become an inevitable trend. The big wave of upgrading has been formed, and any enterprise in it will be deeply involved and participate in the change passively or actively.

Passive beating or active attack, the result is different.

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