In the second half of the Internet, digital technology began to enter the industrial end and the manufacturing end, requiring people to understand the new significance of digitalization to industrial value. According to Joseph Alois Schumpeter, innovation can simply be defined as building a new production function. The responsibility of the entrepreneur is to realize the significance of the "new combination" of production factors and production conditions for the value of the industry, that is, the digital resources will continue to penetrate into every link of the industrial chain through various forms, thus giving birth to unlimited possibilities of "new industrial combination".
Joseph Alois Schumpeter
Compared with the independent diagnosis that relies on doctors, the accuracy of AI auxiliary diagnosis provided by Tencent Miying has been greatly improved. AI. Auxiliary Diagnosis has covered 500 common diseases, which can provide diagnosis and treatment suggestions in real time and effectively reduce the missed diagnosis rate of general practitioners.
This has created a new value space between artificial intelligence and medical treatment. At this time, Tencent is not only an Internet company, but also a medical and health company; the hospital at this time is no longer a hospital in the traditional sense, but a hospital with artificial intelligence technology, which can better diagnose and treat patients through precision medicine, which is a new combination of industrial value.
Enterprise digital transformation is about bringing people, data, and processes together to create value for customers and maintain a competitive edge in a digital-first world. Only by comprehensively thinking about the direction of digital transformation from the four directions of customers, employees, operations and products can we create value and maintain advantages.
One of the most important tasks in the digital transformation phase of an enterprise is to redefine the data assets of the enterprise, however, data assets are an unfamiliar territory for most enterprises, as the CEO of Microsoft puts it: "Every company is a software company." You have to think and act like you would run a digital company, not just buy and deploy a simple software solution, you have to truly imagine the future of the company as a digital company. ”
In the second half of the Internet, there are 3 changes in industrial digitalization
(1) Changes in the social and business environment
People join the Internet in the form of "digital immigration", and people's lifestyles such as socializing, shopping, entertainment, and reading have expanded from offline to online. The social form and business environment have also changed, and explosive penetration and expansion into all fields of economy and society have been carried out. The contact point between enterprises and users has changed from offline to omni-channel, extending from the contact of purchase to the full life cycle of customers.
Enterprises should fully recognize the role of Metcalfe's law on enterprises, and its core idea is that the value of the network grows at the rate of the second power of the number of users. Of course, production enterprises can no longer rely on geographical location or distributors in a certain place to directly contact consumers. Consumers through online channels or platforms directly to the enterprise, this relationship will change from a linear relationship to a directly connected network relationship, the enterprise will create greater value for consumers.
Metcalfe
(2) Changes in the form of physical products
Under the conditions of the digital economy, products transition from obvious product cycles to sustainable business models, and develop unprecedented products in innovative ways, such as cloud services, electric vehicles, etc. The product no longer has a significant life cycle and has entered a phase of continuous renewal. Entering the stage of the digital economy, enterprises must comprehensively change the way they communicate with customers, the way they manage employees, the operating mode of enterprises, and the design, manufacturing and sales mode of products through their own digital transformation, in order to be in a competitive position again in the digital economy.
(3) Changes in the competitive factors of digital technology reconstruction
Another change brought to businesses by the digital age is that cross-border competition can be staged in any industry. Such competition often leads to changes in business rules. Due to the limitations of information transmission and logistics, the competition in the product era comes from two dimensions: geography and industry. The development of enterprises is usually dominated by superior products.
In the era of the digital economy, the form of enterprise products expands from physical forms to digital products, and the relationship between enterprises and customers expands from one-time purchase relationships to continuous service partnerships. When digital products in different industries can meet the essence of a certain type of user needs, cross-border competition has emerged. A relatively simple example is aviation sales, when tickets were converted from paper to electronic tickets, the blow to airline ticketing agencies was almost devastating.
The digital transformation of enterprises not only needs to deal with cross-border competition, but also needs to consider whether it is possible to find new business development opportunities and become challengers in other industries. When designing transformation plans, it is necessary to rethink the value that the company's products and services can bring to customers, whether they meet the real needs of customers, such as the retail industry to meet people's rapid needs to find personalized material and spiritual needs, not just shopping needs.
Two types of businesses need to rethink "digitalization"
Enterprise digitalization is aimed at using digital technology and data to drive, optimize or reconstruct the whole process of the business value chain of enterprises, which enhances the cognition and interaction of enterprises to users by establishing digital connections between enterprises, upstream and downstream partners and users, and improves the efficiency of enterprise value creation and business operations.
Digital native enterprises: such as technology, the Internet, etc., such enterprises are born or developed with the innovation of digital technologies, and their core business and digital "integration" Such enterprises need to accelerate digital practices, otherwise they may quickly lag behind similar enterprises.
Non-digitally native businesses: Digitalization has created disruptive impacts and new opportunities for these types of businesses. Among them, the business focuses on C-end enterprises, because it is necessary to meet the changing needs of consumers and the needs of creating new scenarios, so the digital practice is faster and more sufficient. The manufacturing-oriented industries of the industrial Internet, such as real estate and manufacturing, are also accelerating the corresponding exploration of digitalization.
The first step is to build the CEO's digital transformation awareness
Zhang Ruimin pointed out that in this era of pursuing the Internet, the challenge to enterprises is "speed", and enterprises must meet the needs of users at the first time. The Internet eliminates the distance, which requires enterprises to first "informatize" and then become "informatized enterprises".
Business leaders must realize that digital transformation is no longer the implementation of information systems or the pilot of new technologies, but about bringing people, data and processes together to create value for customers and maintain a competitive edge in a digital-first world. Enterprises in the digital era should also establish a corresponding digital culture to help enterprises smoothly promote digital transformation.
The digital viability of enterprises is first reflected in the entrepreneur's understanding of digitalization itself and the understanding of the industrial Internet, and the core key is the change of entrepreneurial cognition. The CEO stands in the perspective of the strategic development of the entire enterprise, and data mining and analysis capabilities are the core motivations of digital practice. They recognize that the changes and possibilities that digitalization brings to enterprises will lead to enterprises doing more in the practice of digital transformation.
Shaping a digital culture and empowering employees with a digital environment
Corporate culture is the most important but also the hardest part of business management to be fully quantified by metrics, and this part is essential for digital transformation. In preparation for digital transformation by implementing "growth mindset" within the enterprise, employees not only recognize but also recognize the new opportunities that transformation brings, so as to drive transformation more proactively.
Building a digital culture is all about bottom-up feedback, starting with digital-first thinking and recognizing the opportunities and opportunities of digitalization. In any scenario, see the potential for digital solutions, see the possibilities for further business capabilities through digitalization, and see opportunities to create new business value through digitalization.
Establish a digital working environment, digital transformation can be said to be a process of full innovation, employees through the digital workspace to release productivity, continue to internal sharing, feedback, optimization of the platform construction, so that everyone actively participate in the transformation, play a subjective initiative.
Employees will become an important force in the digital transformation of enterprises. During the transformation process, use the available data to get employees' ideas and make decisions. Enterprises need to establish a platform to empower employees internally, invest in new skills development and training for employees, in order to give full play to the role of employees as "people" in enterprise operations.
As the number of "digital natives" among their workforce increases, companies need to personalize the employee experience, leverage technology to strengthen teamwork, and support unique learning opportunities and career development. From the perspective of inter-enterprise cooperation, the cross-enterprise digital workspace can establish a rapid internal and external response mechanism, strengthen cross-enterprise R&D collaboration, and accelerate the process and problem processing speed between enterprises and supply chains, as well as marketing and sales.
Customerism: Everything is customer-centric
Customer needs and the application of technology combinations have opened up new strategic space. When people have a wealth of material resources to choose from, the needs will become more diverse and personalized. This shift in the demand side will be an important basis for influencing consumer decision-making. The market has long since shifted from a seller's market to a buyer's market, and most businesses have recognized the importance of being "customer-centric."
Drucker believes that there is only one definition of business, and that is to create customers. Integrate business with customer centricity, focus on customer experience and strategy, create a seamless service experience, and act according to customer ideas, integrating marketing, sales, products and services, etc., combining different product lines to redesign the user experience and create new customer value.
Data-driven customer insights. Leverage high-quality or data-driven ideas to assist sales, create fans and focus on market segments, and strive to find new customer segments while meeting existing customer segments.
Emphasizing the application of technology in enterprises, from marketing, customer insights, product upgrades, etc., we need to fully consider technical factors, gain competitive advantages in technical decisions and tools, and let different enterprise departments stand in the perspective of growth thinking to realize that the customer value brought by cooperation will be greater than the current value, and the unified customer experience will bring more business opportunities to each department.
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