40 years of reform and opening up, China’s economy has been sustained growth into the medium-speed growth, enterprises are facing competition for resources, technical challenges, supply and demand imbalance and other difficulties, the digital transition as an important starting point for enterprises to break through these bottlenecks. Value creation is the sole criterion for testing digital transformation results. Digital transformation is technology driven enterprise products, innovation and transformational change business, business model, its essence is through mathematical algorithms and data technology business cut into the dominant flow, the formation of intelligent closed-loop, making the whole process of production and operations measurable, traceability, predictable, heritage, culminating in new products, services and business models, value creation. However, Accenture and Industrial Information Security Development Research Center of the National Chinese enterprise digital transformation Index, only seven percent of Chinese business transformation achieved remarkable results (continued cultivating the traditional business at the same time, the new business development to seek transformation, and new revenues of total revenues accounted for more than 50%, the transformation leader focused on building digital innovation and intelligence operations in two core digital capabilities), the last three years revenue compound annual growth rate is 5.5 times that of other companies, a large number of other Chinese enterprises are still not to enjoy digital technology has brought economic dividends. Over the past few years to engineer Ali cloud as the representative of a group of technicians from the Internet to the real economy, cross-border trade, the application of new technologies from the Internet to solve pain points in the workshop and the fields scene, create multiple industry with a clear value visible success stories.
For example, in Hangzhou Xiaoshan, city brain technology is 120 ambulance “escort all the way” real-time opening green wave travel time savings of 50%, to bring more hope of life; in Jiangsu GCL, new technologies to optimize their processes slice technology to enhance the yield by 1 percentage point, to create a net benefit on billion a year; in the petrochemical Hengyi, through real-time algorithm to adjust air flow optimization of the combustion process, improve the efficiency of coal-fired 2.6%; in ho Fung Group, through AI techniques parsing track lettuce growing CONTROL ENGINEERING China Copyright on each piece of land, to help achieve “acres of a Thousand faces” personalized fertigation, the average saving water and fertilizer costs 150 yuan / mu, the whole group can save more than 1,500 million / year. These proved a possibility: the new digital technology into the premise of (artificial intelligence, big data, cloud computing) combined with the traditional industries can create significant measurable value.And this possibility should promote and implement the feasibility of specific enterprises, need to grasp the “value creation” this goal, it is necessary to avoid “complacency” and “lip service”, not “mere copycat” blind copy. Bring digital transformation explicit value creation is bound to arouse the enthusiasm of enterprises, how to correct perception, path selection, implementation embrace the new digital technology, the exploration development of a new high point, the article is thinking and discussion topics. Four Mistakes digital transformation of the IT system dominated former overlord face something new perspective can not by its very nature, is a natural outcome from “read” to “keep up” the digital transition (Digital Transformation) need to be technical data (Data Technology ) main line, and the IT infrastructure acquisition and storage system is the transfer of information is a necessary condition for the digital transition, not the ultimate goal. From IT to change DT may bring disruptive business model, rather than a simple IT operation and maintenance cost savings. 2009, Singapore Comfort Taxi passengers can make an appointment with Citycab taxi by telephone and call center, followed by a taxi passenger received information distribution via SMS and estimated waiting time. Although the whole process more convenient than traditional passenger side of the road Yang trick mode, but did not do a few key digital / intelligent. First, the demand for voice conversation by transmitting various dialects spoken recognition rate allowed; second, entered by the dispatcher needs understanding dialog based on manual input in the background, error-prone and slow; third, the demand assigned rely on intuition and dispatchers experience, based on real-time location information of the nearest taxi fleet selection on the map, at a busy time (especially rainstorm time) simply overwhelmed, leading to high rates of lost. In early 2012, I led the team ComfortDelgro communicate with both the taxi company’s parent group, the proposed algorithm with intelligent automation needs to resolve a similar Internet advertising click-through rate forecasting model and vehicle deployment, and gives the business results expected (into a single rate increase customer waiting time fell CONTROL ENGINEERING China Copyright , reduce driver vent time). Unfortunately ComfortDelgro was scheduled docking IT departments evaluate and ultimately not adopted. Today, this technology is not new, major mainstream callCar APP has generally adopted a similar send a single intelligent scheduling system. ComfortDelgro then missed the root of this opportunity is the inertia of thinking, arrange the traditional IT departments to assess input-output ratio from the perspective of system operation and maintenance upgrades, but did not understand the business model changes brought about by the technology behind the DT. Coincidentally, in 2008 Nokia arrange special group to study the birth of the iPhone and has just come to “unlikely to be successful” conclusion. Former overlord face something new perspective can not by its very nature, is a natural outcome from “read” to “keep up.” Lack of top-level planning, copy or imitate technological innovation and personnel can be assigned if the rhythm between the disorders, will become the “shape of the gods is not a” failure of transformation. Enterprise digital transformation is an art that various elements of technology combined with corporate creative design features to do. After the successful transformation works may be similar, the design and creation path rhythm is “thousands of enterprises Thousand Faces.” If you copy or Yihuhuhuapiao, often with poor copy products. Under the new retail boom unmanned shop, electronic shelf, brush face payments of new things emerge, but these new things, whether to increase store traffic, conversion rate, average daily sales? Input-output ratio is reasonable? The answer is “not necessarily.” Involves the whole chain of retail sales forecasting, stock replenishment, pricing, promotion, sale and management, the introduction of digital technology if only a single top-level design aspects and the lack of full links, this semi-new model apart Banjiu digital transformation The ultimate goal far. Transformation of traditional retail digital technology needed to reconstruct people, goods, interactive games, and help improve retail efficiency, brush face payment may not be unified entry point to different segments of the retail industry may be different paths. Toyota lean production (Lean Production) management with great success in the Japanese manufacturing industry, but domestic enterprises are not widely available bonus after the introduction of lean production. Although equipped with a similar production line automation and ERP, MES and other industrial software systems, but also the production process of the staff positions deep understanding of the concept and practice of lean manufacturing, production line transformation between rhythm and personnel enabling If the offset is to become “not the shape of the gods,” the transformation. Full link desperate attack with limited resources dispersed into too many areas, will inevitably lead all aspects of the fishing action is slick, hard to grab value. Digital transformation need to select the specific entry point in the business linkScenes, project design and the value of clear and measurable closed. Ali goes on to explore the Hengyi Petrochemical an example CONTROL ENGINEERING China Copyright , B amide in multiple production processes have pain point, but not every pain points are fatal, or cause local measurable impact. So, we proceed from the data-intensive and value-intensive double standard, boiler combustion chosen as the first scene, set to improve the efficiency of coal-fired business objectives by optimizing the combustion control. The final production line using the device’s own data, did not do the physical transformation of the production line, but additional real-time recommendation engine optimization control, and ultimately enhance the efficiency of coal-fired 2.6%. In a part quickly made clear value, companies have the confidence and motivation in the production of upstream and downstream transverse link promotion. Penetrated to a depth value of the vertical closed loop to achieve scene 0-1, and then extended by the lateral reinforcing 1 to N, and gradually enlarged intelligent value. Avoid full link desperate attack, all-in determination does not mean all-in action. Limited resources dispersed into too many areas, will inevitably lead all aspects of the fishing action is slick, it is difficult not deep enough to grab value. British Broadcasting Corporation BBC in 2007 launched the digital transformation project for digital media content, the results take years die a natural death. BBC afterwards re-set to organize independent committee, one of the lessons is that the project involves many sectors causing huge delays in the progress of cost synergies. Hardware Planning lack of flexibility “after the first hard-soft” approach caused by too much initial investment and uncertain returns, have not reached the target has lost momentum based on the current information technology and digital basis, the first “soft and hard”, then “the hard and soft “is a reasonable path forward loop. Underlying physical facilities and other hardware to provide a dynamic service awareness and downlink channels. But in the past few years, often rely on hardware development plan of planning, lack of dynamic adaptation and flexibility, which can not be measured only reasonable construction of the hardware or not wasteful, but also for enterprises to bring a heavy cost pressures. Things to industry, for example, over the years despite all the cries of supportive policies and specialists, but its growth rate far less than the mobile Internet. Unfortunately, a considerable part of industry experts preach things we must first transform laid sensor production line Control Engineering Copyright , the result has created opportunities for communication module vendors to create more value without proof of, Business owners are unwilling to invest in laying the sensor to make the link. This “after the first hard-soft” approach caused by too much initial investment and uncertain returns, naturally difficult to implement it. Ali cloud ET cities of the brain provides a new idea. No new urban physical facilities, just make good use of existing data can improve the intelligence of city operations, such as intelligent algorithm developed by escort vehicles elastic green wave, lights and other innovative applications of artificial intelligence, in Hangzhou, cities of Guangzhou, Shanghai, Kuala Lumpur landing. While the development of these applications, the city found that the brain, in particular intersection, road, if you can increase the hardware information collection devices, can effectively improve the intelligence level of a specific area. It began auxiliary functions to improve the physical infrastructure of the city, to avoid blind construction waste of resources, so that the city “eugenics.” To achieve a soft – hard evolution. In this intelligent hardware facilities planning, data, algorithms, calculate the value of the force will be further rapid release, achieve and create value from hard to soft in a new starting point. How out of the Four Mistakes? Be sure the project is CEO of digital transformation, foreign need global vision, internal need for coordinated organization-wide prestige, resources. Only the company’s top decision-makers personally, CEO locate important organizational guarantee for the project, it is the digital transformation of success. McKinsey in 2018 found that the probability of a global digital transformation research, build a clear digital transformation plan by the senior management team of the company, successful digital transformation is not done 3.1 times that of the company. The author took a large retail group, its big data sector led the development of a project plan, hoping to use the data model to enhance marketing efficiency. But big data sector can not drive business decisions marketing department, and ultimately die a natural death. If 2009 is the Comfort Delgro the CEO personally take intelligent scheduling program, maybe he’ll insight into their business potential and adoption programs, thereby leading mobile travel market. McKinsey’s research also found that if senior managers to promote the organization to generate a sense of urgency digital transformation, the probability of success is not done 1.9 times that of the company. Therefore, CEO will also need to help companies digitize philosophy and culture deeply rooted religious fanaticism , in the face of challenges and failure to adhere to. Methodology indispensable tool +Avoid the only tool on the majority of global companies are still groping digital transformation of the intelligence from information technology to, and no mature panacea-like standard software in the enterprise deployment of the digital transition can be achieved. Map guide the transformation methodology is an important advance, but it is important tool targeted accelerator transformation forward. Such as customer phone Taobao APP portrait of “thousands of thousand faces” is a stage in the data provided do real-time personalized recommendations, which greatly enhance the shopping experience and conversion rate. Explore a business of any digital transformation will depend on the methodology + tools, methods based, supplemented by tools, and neither is dispensable. Existing mature software, it is an important foundation for the digital transition, but not the value creation breakthrough. Value Creation “last kilometer” need methodology guidelines to industry experience combined with digital technology consulting inquiry to find the force point for enterprises to find the value of depression. Small run hierarchical iterative digital transition by 0-1 to N gradual process. 0-1 by the key is to focus subdivision scene to find the most valuable point of pain, this pain point must not be isolated single point, shall be set off chain reactions point, can indeed affect the whole body. For example, Jiangsu GCL is a photovoltaic enterprises, many photovoltaic slicing process, we need to select the appropriate process to start analyzing the data. ET cities in the brain to improve the starting point of traffic congestion aspect of selecting a key intersection with traffic light control, traffic flow on the implementation of intelligent urban acupuncture. After the preferred scenario 0-1 success, from 1 to N is simultaneously unfold in two dimensions, both in the results of a similar scene also copy the experience of other scenes. Digital transformation should not eat a fat, start to fall into the trap of a large platform blueprint. We must be demand-driven small run to grow up. GE Digital high-profile release in 2015 Predix2.0 platform, claiming to build a common platform for industry, and for the full liberalization of the industry; and in 2018, its strategic contraction from the beginning of the proposed “Predix for World” retreat “Predix for GE” GE core business focus direction to electric power, aviation and other fields as the core, to create more business value solutions. December 2018, GE established industrial networking software company was an independent operation, Predix be incorporated into the company, continue to explore the way forward in the digital transformation. Similarly, there are a lot of things industrial platform erected since birth. “. Banner platform “, a few years down the size of its active links winter selling roasted sweet potatoes sweet potato number of metal drum is not balanced and artistic experience and data blindly rely on business experience, can not help but miss the new trend; completely trust digital technology, they may be misled by one-sided data digital transformation, neither the only empiricism can not be the only data on the need to find Fulcrum.Dynamic.Equilibrium on the experience and precision of the balance, the experience and knowledge of industry experts, the new and digital technology, new ideas, new methods, and concerted efforts on the one hand, knowledge of industry experts through new technologies and tools of precipitation easier, facilitates the rapid dissemination of knowledge, copying; on the other hand, new technology, especially from the new foreign trade technology, is likely to boost industry experts have a better perception, faster analysis capabilities, reduce the daily repetitive tasks, and produce more knowledge of the industry and found hidden treasures within the industry, breaking the existing barriers to experience. industry experts new technologies tend to ignore outside the industry cognitive “Gehangrugeshan” of After a new perspective, but Google Go AlphaGo overnight become extremely expert, industry experts should no longer blind faith in so-called trade barriers. Alibaba Group together cost-effective business, initially relying solely on the experience of two popular small operators decide the layout of election materials strategy, sluggish response and great subjectivity. after using the technical data, the data found matching customers with merchandise, automatically generate product selection strategy, and complemented by manual calibration, page traffic increase conversion efficiency, so that the value of the business and the platform are be promoted. digital transformation of technology and ideas fully collaborative systemic change, brought about profound changes in production, all aspects of social governance will be. with the previous technological revolution, the digital transformation of the resource-dependent data is constantly regenerated almost endless, so it has the possibility of self-driving, once started will not stop. and every time the transition will have a metabolism, this one is no exception .Blockbuster be ruthlessly replaced by Netflix, iPhone lets Nokia phones become history, the final The winner must be able to adapt to those trends and to price Create targeted wise while actively embracing the digital transformation of the body not only get the endogenous value, but also to create extensionality value and, ultimately, society as a whole range of value creation.