In the era of the Great Architectural migration, we are flooded with new concepts, and we need to reconstruct the conceptual system first. Similar to CAX, ERP, CRM and other concepts to build our understanding of the past enterprise information, but in the future we need a new set of technical concept system, including middle, microservices, industrial Internet, industrial Internet of things, APP, such a new conceptual system to describe our future. The deconstruction and reorganization of technology system and infrastructure will inevitably bring about the deconstruction and reorganization of cognitive system and conceptual system, and we need to rebuild a new conceptual system of digital transformation.

We are building a new continent for needs, scenarios, and roles. Such a new solution is from internal collaboration to ecosystem, from closed system to open system, from PC side to mobile side, and we are building a new conceptual system based on cloud computing, edge computing, midplatform, and mobile.

What will redefine this era?

What will redefine this era?

From historical experience, every industrial revolution is inseparable from the renewal, iteration and reconstruction of infrastructure. With the integration of cloud computing, AIOT, edge computing, 5G, and mobile innovation, with the integration of OT and IT, cloud architecture upgrading, and microservices landing, the traditional rigid development model and old shackles are being broken, the business ecosystem based on new infrastructure is accelerating reconstruction, and we are entering a digital business infrastructure installation period.

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Digital business infrastructure reconfiguration

Today, the industry is talking about new concepts such as data center, business center, IOT center and industrial Internet of Things, and what is behind the center. We see that in the past, practitioners of informatization and digital transformation used various concepts created by international consulting firms and multinational companies to establish our cognitive system of digital transformation. Today, explorers and leaders of China’s digital economy use their own exploration and practice to establish a system of understanding of our future digital transformation, and become the direction for international companies to follow. We need to think, for the future of digital transformation, who is defining this era? It must be those who are at the forefront of their time, leading the way with successful technology and business practices.

Rethinking the dynamics of digital transformation

Faced with the restructuring of the global digital infrastructure, we need to rethink the dynamics of digital transformation. We see that behind the data center, business center, microservice components, industrial apps, etc., is the starting point for us to understand digital transformation, the first is cognitive transformation, we say that science and technology is the first productive force, the system is more important than technology, but the most important thing is our cognition and concept.

Second, the difference in our perception of digital transformation today is not whether we are willing to embrace change, but how fast and how we embrace change. Do we have long-term thinking, do we believe in young people, do we have the determination to drive cultural change?

Third, digital transformation is a marginal revolution, and for a business it’s not what you do, it’s what you do more than your competitors, what your customers really feel, and what new capabilities you build.

In the past, when it came to the dynamics of digital transformation, entrepreneurs thought, How high is the input-output ratio of digital transformation? Is there any risk? How much risk is there? If the risk of a digital project is too high or the industry is uncertain, slow down the pace of investment. Let’s think about it from a different Angle today: What is the loss if there is no transformation?

Daniel Kahneman and Richard Thaler, winners of the Nobel Prize in Economics in 2002 and 2017 respectively, are the pioneers of behavioral economics, whose important contribution is to recognize that people’s decisions are sometimes not rational. There is a certainty effect: Given the choice between certainty and “taking a gamble,” most people choose certainty; There is a reflex effect: Given the choice between determining the loss and “taking the gamble,” most people will choose “taking the gamble.” From another perspective, the question we have to think about is what is the biggest risk of no transformation and slow transformation? If we abandon risky digital projects, are we not at risk? In fact, no, when we lack a digital strategy, the determination of our risk can be summarized into the following five aspects: market out of focus, marketing aphasia, management imbalance, system failure, and growth stall.

Market out of focus: In the digital economy, we don’t know who the customer is, where the customer is, what the customer likes, and what the customer experience is like. How to give us feedback? Because we do not understand the customer needs, we do not know what to produce? How many are produced? How much to buy? How to schedule? We have to guess and almost gamble to make decisions.

Marketing aphasia: Without digital, we don’t know how to tell our customers stories about our products and services. Many times, when we are marketing, we do not know who to talk to, where to talk, what to talk about, how to talk about the effect?

Management imbalance: In terms of management, we may face an imbalance before and after, and can the front desk of the front line fight get strong support from the background? Imbalance between left and right, efficient collaboration between enterprises and suppliers and vendors; Whether the determination of the chairman and general manager of digital transformation can be responded by the middle level and employees; The imbalance between reality and reality, the internal matching degree between our corporate culture and the requirements of enterprise digital transformation.

System failure: the original information system is increasingly difficult to adapt to the rapid changes in demand, and the speed of the enterprise’s supply chain, flexible production, finance, inventory, and new product development cannot keep up with the needs of business development.