Talking about the concept of digitization and the transformation of three aspects

"Digitalization" has quietly replaced "informatization". "Digital transformation" is based on all the support that IT technology provides. So what is digital transformation? Created by the real interaction between business and technology.

Every time the trend comes, there are no shortage of players who are rushing to tell.

The same is true for digital transformation. Today, everyone is talking about enterprise digitalization and talking about transformation. From the media, consulting companies, IT vendors to advertising communication service providers, every component of the industry chain can be told one by one. Some say that "digital transformation is actually the reshaping of business processes", and some companies believe that "creating and delivering digital services" is the key driving force for transformation. There are many answers, but there seems to be no answer to explain.

Talking about the concept of digitization and the transformation of three aspects

So what exactly is digital transformation? Why did the digital transformation suddenly rise to the height of the industry?

The author believes that instead of giving countless versions of the text combination, perhaps, we should hand over the microphone to the frontline performers.

On how to explain the digital transformation, we should first understand the concept of "digital".

In the past two years, “digitalization” has quietly replaced “informatization” and is no longer an emerging vocabulary. From various definitions, we can draw digital representation: that is, to convert analog data into binary codes represented by 0 and 1, Or involve the use of computer technology.

In the information age, because of limited technical means, for a customer, a commodity, a business rule, a business process, we can only enter it in the form of data, relying heavily on relational databases: tables (entities), fields (Property), turning everything in this into a structured text description.

Nowadays, with a series of emerging technologies such as artificial intelligence, big data and cloud computing experiencing the early development and gradually sinking into the industry and industry, we can use these technologies to holographic the real world in the computer world. reconstruction. What the real world is, we have the ability to store it in the world of computers.

--- This is digital.

And "digital transformation" is born out of the support that IT technology provides, and the real interaction between business and technology.

For example, Haier, through the subversion and upgrading of traditional production models, creates an interconnected factory system with on-demand design, on-demand manufacturing and on-demand distribution, which enables the entire manufacturing process to be highly flexible and meet the needs of individual customization.

For example, red-collar clothing, creating a smart factory, digital operation enables it to quickly complete the entire process from design, garment manufacturing, manual ironing, folding, hanging, and even automated sorting and packing, so that two weeks of new shelves can be put on the shelves. Sub-components can greatly reduce product inventory.

Specifically, digital transformation includes three aspects:

“Conversion” – the transformation of digital technology from the traditional information technology to the “new generation IT technology” to achieve the upgrade of technology applications;

"Fusion" - from the process of the entity state to the number in the information system, from the physical form of the number to the virtual form of the number, to open up all-round, whole process, all-field data real-time flow and sharing, to achieve information technology and The true integration of business management;

"Reconstruction" - adapt to the needs of the Internet era and the intelligent era, based on the realization of precise operations based on digital, accelerate the transformation and reconstruction of design, research and development, production, operation, management, and business in the traditional format.

Why is digital transformation a hot spot?

IDC, a world-renowned research organization, has conducted a survey of 2,000 multinational CEOs. The results show that by 2018, 67% of the world's top 1000 companies and 50% of China's top 1000 companies will use digital transformation as their business. Strategic core. For traditional enterprises, especially traditional small and medium-sized enterprises, digital transformation is no longer a multiple-choice question, but a survival problem.

More and more companies regard “digital” as their core assets, new resources and new wealth. Investigate its roots, digital transformation is nothing more than an effective transformation of industrial transformation and upgrading to seize the new competitive commanding heights. The driving force behind this is technology, that is, the development of a new generation of IT technology; on the other hand, it is industry-driven, that is, global overcapacity.

In the industrial age, China is in a late-stage position. Many Chinese companies are usually in the downstream of the industrial chain. The core technology and patent accumulation are weak. In the end, they can only rely on economies of scale and low-cost competition to win. So many large but not strong manufacturing companies have been created. It can only hope that the demand in the external market will be strong, and it will continue to be sustained by continuously compressing raw materials and labor costs.

Nowadays, the focus of enterprise development has already changed. The scale and cost are no longer the magic weapon for winning. The problem of overcapacity is concentrated. In the past, the business model was what the company had to buy what the consumer would buy, but in the future it might become what the consumer needs and what the enterprise produces. This will bring about a subversive change in the business model and process of the enterprise.

The purpose of supply-side reform is actually to optimize production capacity and enhance value. However, when companies really implement the supply-side reforms, they will find it difficult. Consumers' needs are diverse and changeable. If they do R&D, production and sales with experience and experience, it seems that consumers are not easy to pay.

The digital transformation has emerged as the times require. The development of the digital economy “digital economy” has thus been confirmed by the Chinese government as an important economic form and a new kinetic energy for innovation growth, and an important support for the supply-side structural reform. (The composition of the digital economy includes the value of the information technology industry, the value added of traditional industries built on the support and application of information technology, and the value created by new formats, new economies and new models based on information technology.)

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