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The flywheel of the industrial Internet is spinning

author:Market Cap Observation SZGC

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The flywheel of the industrial Internet is spinning

Author: Wen Yu, Editor: Xiao Shimei

Ten years ago, the United States proposed the "Industrial Internet" and Germany proposed the "Industry 4.0", and the two industrial powers, representing the world's most advanced productive forces, made the same judgment and choice almost at the same time. This was a scene that did not attract enough attention at the time, and it was actually the earliest resonance of human understanding of the new round of industrial revolution.

In the past ten years, from the wind to the rolling wave, the concept has continued to be popularized, the policy has been continuously increased, the technology has been iterated at a high speed, and the digital transformation with the industrial Internet as the core has been fully rolled out. In the book "From Good to Great", management scientist Jim Collins once proposed the famous flywheel effect:

To make a flywheel spin, it takes a lot of force to push it at first, but when it turns and has positive feedback, it doesn't take a lot of effort to make the flywheel fly by inertia.

The current industrial Internet is already on the eve of the flywheel effect.

The flywheel of the industrial Internet is spinning

[Break through a wall]

On March 28, the Kaos 2024 Digital Ecology Conference was held at the National Convention and Exhibition Center in Shanghai.

As a leader and pathfinder, Kaos has always been regarded by the outside world as the vane and barometer of the development of the industrial Internet.

The flywheel of the industrial Internet is spinning

On the basis of the three self-developed technical advantages of "big connection, big data, and big model" established last year, Kaos has taken a step forward this year to create a space-based field-level industrial operating system, Tianxin data space, and Tianzhi industrial large model. Among them, the space-based field-level industrial operating system uses real-time virtualization technology and integrated design of cloud-edge collaboration to solve the problem that enterprise data cannot be accessed and on-site control is difficult to unify; Tianxin data space breaks down data barriers between enterprises with the advantages of controllability, verifiability, and trustworthiness, and makes the closed-loop solution of the whole process of data assets more complete; Tianzhi industrial large model has more than 3,900 built-in mechanism models and more than 200 expert algorithm libraries, which has low computing power requirements and can be used out of the box.

Obviously, Kaos's technological innovation and breakthroughs in the past period of time have almost all revolved around data problems, trying to break the wall from all aspects of the whole link such as data collection, processing, and application, and improve the overall ability to grasp data.

According to the pain points of industrial Internet development in 7 key industries sorted out by China Unicom in the "5G + Industrial Internet Key Industry White Paper", the pain points related to data have been mentioned 6 times, security has been mentioned 5 times, collaboration has been mentioned 4 times, efficiency has been 3 times, and talent and process have been mentioned 2 times each.

In other words, the data problem is still the main contradiction restricting the development of the industrial Internet. In fact, the policy community has already sensed this.

On January 31 this year, the Ministry of Industry and Information Technology and other 12 departments jointly issued the "Industrial Internet Identification Analysis System "Through" Action Plan (2024-2026), as the first policy document issued for the industrial Internet identification analysis system, and the information and signals it carries are extraordinary.

In the past, enterprises have formed their own private logos in the production process, and these private logos cannot be read across enterprises, and when the digital transformation of the whole industry chain is required, they are often frustrated by the different calibers of upstream and downstream enterprise logos, which directly affects the penetration of the industrial Internet. The unified industrial Internet identification analysis system gives each element in all aspects of the industry a logo, and the difficulty of information interconnection will be greatly reduced, and the information interaction and sharing across regions, industries, enterprises and processes will theoretically be flattened.

The top-down promotion of policies, the bottom-up breakthrough of platform companies like Kaos, and the two directions are advancing head-to-head, and it is only a matter of time before the wall of data is torn down. However, we must be soberly aware that the first principle of the industrial Internet is the exploration of data value, breaking through data barriers and improving the ability to control data is only the first step, and the more critical thing is how to maximize the value of data, and in this regard, China is completely at the forefront of the world.

【Punch a set】

If the industrial Internet platform is regarded as a doctor, foreign enterprises are more like Western medicine, first delineate the boundary, and then provide a certain service or function point-to-point, headache doctor, foot pain, for example, Germany's industrial Internet mainly focuses on production line management, and the scope of service will basically not go out of this circle; Chinese enterprises represented by Kaos are more like traditional Chinese medicine, and the "prescription" varies from person to person, and what it strives to solve is not a certain problem, but a basket of problems.

Through the intelligent interaction engine, Kaos builds an interactive digital scene between the supply and demand ends, where the demand side and the supply side meet directly and have a zero-distance dialogue, and the platform acts as a service provider to provide capable support for the demands of both parties. This kind of problem-specific analysis and borderless docking will bring two direct results: first, the service covers a wide range and large quantity, and second, the service is the most suitable for the needs and has high quality.

The flywheel of the industrial Internet is spinning

According to the newly upgraded Kaos ONE-COSMO product map 2024, the Kaos platform has formed two product series: the "Lighthouse Factory" for enterprises and the "Industrial Cloud Brain" for the cloud. Among them, the former focuses on specific scenarios such as workshops, factories, and enterprises to create a world-leading lighthouse factory solution, while the latter mainly provides cloud collaborative value-added services around the digital intelligence scenarios of thousands of industries and industrial chains, including industrial apps that are "one meter wide and 100 meters deep", as well as new "five modernizations" one-stop solutions such as "factory digital intelligence→ enterprise digital intelligence→ park digital intelligence→ industrial chain greening→ urban digital intelligence" and other "100 meters wide and 100 meters deep".

The flywheel of the industrial Internet is spinning

It can be seen that Kaos has played a set of combination punches, and these solutions will not be solidified, but guided by user needs, creating at any time, iterating at any time, and innovating at any time. In this continuous adjustment and change, a lot of new data value will be continuously released.

For example, most of the early industrial Internet cases were to help enterprises reduce costs and increase efficiency, focusing on reducing expenditure, but in fact, the value of the industrial Internet is far more than that, not only to save money, but also to make money.

In the home appliance industry, Kaos COSMOPlat has helped Haier washing machines innovate micro-steam air laundry disinfection solutions through the ability support of five intelligent interaction engines such as interaction design and twin simulation, realizing the detonation of products when they are launched, and the sales volume of the past three months in one day. In addition to the micro-steam air laundry disinfection program, Casarte has innovated a series of technological innovation programs for air washing, creating a new demand for cleaning cashmere coats, silk clothes, leather clothes, etc., and the compound growth rate of products ranks first in the industry and detonates the world.

Another example is Kaos's empowerment of Ruihua Group, which has the flexible production capacity of "small orders and quick reaction" after digital transformation, and many high-priced small orders that could not be undertaken in the past can now be done, and the order volume and the added value of single products have been increased in both directions.

It is also worth noting that the rapid progress of underlying technologies such as AI has greatly simplified the operation process of the industrial Internet.

In the washing machine factory, COSMO-GPT, a large model of Kaos industry, can independently identify all the required technological processes with just one CAD drawing, and complete the control instructions for the assembly robot and other required equipment, and complete the intelligent and flexible assembly of the washing machine with high precision and high efficiency, without human intervention in the whole process. Reduced operational difficulty means lower barriers to use, which in turn directly promotes equal rights in data intelligence.

The flywheel of the industrial Internet is spinning

In a fickle era, we often have a feeling that many changes are grand and huge, but they are always completed quietly and inadvertently, especially for an industry like the Industrial Internet that is in the growth stage. Scenario generalization, service deepening, and operation simplification, all these changes indicate a result, that is, the singularity moment of the industrial Internet is already in sight.

【Open a Piece of Sky】

The industrial Internet is "flying into the homes of ordinary people".

In 2023, the first batch of 10 small and medium-sized enterprise demonstration zones for the digital transformation of the industrial Internet will be selected across the country, which shows that the industrial Internet has jumped out of the small scope of large enterprises and began to widely serve small and medium-sized enterprises.

To get to this point, the contributions of both sides are crucial.

The first is policy push. The industrial Internet has been written into the government work report for seven consecutive years, and the proposal of new quality productivity has set the tone in the top-level design.

The second is the unremitting efforts of the leading industrial Internet platform. Kaos inherited Haier's ecological genes, and always adhered to the development concept of "large enterprises build together, small enterprises share", even if small and medium-sized enterprises could not bring commercial value in the past, the company also firmly classified them into the ecosystem, popularized ideas, and provided resources.

Looking ahead, the great era of the industrial Internet may have just begun.

On the one hand, the majority of small and medium-sized enterprises have potential demand, China's average annual growth rate of labor productivity from 2000 to 2010 was as high as 9.7%, and by 2010-2021, this data has dropped to 6.7%.

On the other hand, the needs of enterprises can also be satisfied, in the past, everyone did not dare to transform, did not want to transform, will not transform, largely because the understanding of digitalization at that time was not enough, digital capabilities are not enough, now with the data and service deepening, the digital transformation experience has been greatly improved, coupled with more and more successful transformation cases around the occurrence, small and medium-sized enterprises have confidence and determination.

From 2020 to 2022, the penetration rate of China's industrial Internet will reach 14.7%, 17.5%, and 22.2% respectively, according to the previously established penetration target of 45% in 2025, the industrial Internet will have at least twice the growth space in three years, and the reality may be far more than that.

Small and medium-sized enterprises (SMEs) contribute 50% of domestic tax revenue, more than 60% of GDP, more than 70% of technological innovation, more than 80% of urban labor employment, and more than 90% of the number of enterprises. Once this group begins to generally embrace the industrial Internet, the industry ceiling will be completely pierced.

The flywheel of the industrial Internet is spinning

Angus Madison, the author of the book "A Millennium History of the World Economy", once made statistics on the economic growth data of mankind for two thousand years, from the first year of the Common Era to 1820, the average annual growth rate of the global economy was only 0.1%, and from 1820 to 2000, the average annual growth rate of the global economy reached 2.2%. It was the industrial revolution that liberated the productive forces, changed the way of production and lifestyle, and created the prosperity of human society.

The task of making a long-distance observation of reality through the lens of history and leveraging digitalization to liberate and transform productivity has historically fallen on the shoulders of the industrial Internet.

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The content of this article related to listed companies is the author's personal analysis and judgment based on the information publicly disclosed by listed companies in accordance with their legal obligations (including but not limited to temporary announcements, periodic reports and official interactive platforms, etc.), and the information or opinions in this article do not constitute any investment or other business advice, and Market Value Watch does not assume any responsibility for any actions arising from the adoption of this article.

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