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The wave of digitization is coming

   Digitalization is profoundly changing people's lives, factory production, and brand building. "Industry" and "digital" are riding on the east wind of the digital economy and are flying together. The integration of new technologies such as big data, Internet of Things, artificial intelligence, and 5G with various industries has changed the traditional business operation model and has become a new engine of economic growth.

  Number, as the name implies, means data. "Digitalization" is to connect the real world we live in with the virtual digital world, so as to convert existing information into analyzable data. Industrial digitization refers to the process of digital upgrading, transformation and reconstruction of all elements in the upstream and downstream of the industrial chain, with data as the key element, value release as the core, and data empowerment as the main line, under the support and guidance of a new generation of digital technology.

  In layman's terms, traditional industries have long chains, scattered manufacturers, complex division of labor, multiple game links, and large fluctuations. There are serious inadequate and unbalanced developments in the industrial chain, resulting in a large number of supply and demand imbalances, overcapacity, and wasteful waste. Large, the overall efficiency is low. After the digitization of the industry, through the combination of traditional industries and digital technology, major blockages in the industry chain can be gradually eliminated, data circulation can form the nervous system of the industry, and Internet technology can be used to connect and reorganize traditional industries, thereby enhancing the overall industry efficient.

  According to estimates, digital transformation can reduce manufacturing costs by 17.6% and increase revenue by 22.6%; reduce logistics service costs by 34.2% and increase revenue by 33.6%; reduce retail costs by 7.8% and increase revenue by 33.3%. For example, a manufacturing company can digitize and intelligentize products equipped with sensors, which can not only control the production process throughout the process, but also understand consumer usage habits, frequency of use, etc., completely breaking the barriers between production and consumption, allowing Enterprises can meet consumer demand to the greatest extent. The advancement of digitalization in the industry can at least help traditional industries to effectively solve the problems of increasing market size, reducing costs and increasing efficiency, and improving quality and competitiveness.

  In fact, during the prevention and control of the new crown pneumonia epidemic, people have already felt the convenience and vitality of industrial digitalization. New business formats such as cloud office, cloud learning, cloud manufacturing, and cloud services are booming. Smart robots, live e-commerce, contactless loans, online sales, and online training have become new choices for many traditional enterprises.

  The government has drawn up a new blueprint for industry digitization. The "14th Five-Year Plan" and the 2035 long-term goal outline clearly stated that the implementation of the "cloud use data to empower intelligence" action to promote the data-enabled coordinated transformation of the entire industry chain. Data elements, like land and labor, have become important production elements, and the importance and value of data have been further clarified. According to data released by the China Academy of Information and Communications Technology, the scale of China's industrial digitalization increased year by year from 2014 to 2019. In 2019, the scale of China's industrial digitalization reached 28,752.4 billion yuan, an increase of 15.56% year-on-year, accounting for 29.0% of GDP, which has become a support for the national economy. An important force for development.

  Of course, in the process of industrial digitization, opportunities and challenges coexist. The industry analysts believe that the current challenges for companies to integrate into the industry’s digitalization are mainly: their own digital transformation capabilities are not enough to cause "no transfer"; the cost of digital transformation is high, and insufficient funds cause "cannot transfer"; insufficient digital talent reserves make "dare not to transfer" "; The unclear digital transformation strategy of the decision-making level leads to "bad transfer"; the ineffective multi-layer organization model leads to "unwilling to transfer".

  In response to these challenges, the state and governments at all levels have introduced various measures at the policy level to increase support for the digital transformation of small, medium and micro enterprises. The implementation of the action of "Going to the Cloud to Use Data to Empower Intelligence" is a powerful measure. Its core goal is to build a digital enterprise, build a digital industry chain, and cultivate a digital ecology. Building a digital enterprise makes enterprises “on the cloud” more intelligent. The purpose of building a digital industry chain is to connect the industry through digitization, and to cultivate a digital ecology is to integrate various entities of the industry through digitization.

  All in all, the digitalization of the industry is the general trend. Just as Lu Qi, the founder of YC China, said: "Digitalization is a long river. Being involved in it will have a deeper and wider impact on human society."


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