From the perspective of platform development, the lack of service capability leads to limited profitability

First, the external service of the group incubation platform is insufficient. Some platform enterprises in China are independent from the former large-scale manufacturing enterprise information department, and the development of the platform is excessively dependent on the parent company, and some market-oriented services are limited. For example, Tree Root Internet, which was incubated by Sany Heavy Industry, was questioned by the CSRC about its business independence during the IPO process. Second, the homogenization of the platform has led to insufficient deep service. China’s platform is not deeply rooted in specific scenarios and specific technical fields, products and services are homogenized, and application efficiency is lacking. Third, some platforms pay too much attention to short-term profits and lack of sustainable services. As a whole, China’s platform is dominated by customized project profit model, and the comprehensive proportion of functional subscription model is only 15%, which is far lower than that of well-known foreign platform enterprises (Dassault Systemes and PTC account for more than 90% of subscription revenue).

From the perspective of user groups, the market potential on the demand side has not been fully stimulated

First, the proportion of platforms used by enterprises on the platform is insufficient. The cloud rate of Chinese enterprises has exceeded 30%, but there is still a big gap with the cloud rate of 70% enterprises in Europe and the United States. In addition, 79% of smes are still in the initial stage of digital transformation, and there is still a lot of room for improvement in the procurement demand of smes platform services. Second, the willingness of small and micro enterprises to pay is insufficient. China’s small and micro enterprises generally face greater survival pressure, have a strong dependence on the government’s “cloud coupons” and financial subsidies, and have a low willingness to pay. Taking Kingdee International as an example, the SaaS subscription renewal rate for large, medium and small and micro enterprise users is 110%, 97.2% and 77%, respectively, and the renewal rate for small and micro enterprises is much lower than that of large and medium-sized enterprises.

From the perspective of the guarantee mechanism, the imperfect system affects some commercial operations

First, the platform data transaction norms are not sound. The legal norms for the value mining and application of industrial data in China are not yet perfect, and the platform enterprises create data derivative products in the mode of industry self-discipline, which leads to data security and data leakage concerns, resulting in limited business activities. Second, the platform operation guarantee system is not perfect. Platform enterprises bring together third-party developers, user enterprises, suppliers and other parties, the rights and responsibilities of all parties lack of relevant rules and regulations to restrict, resulting in “customer bullying shops”, “overdue payment” and other phenomena, affecting the healthy development of the platform.

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Countermeasures and suggestions

Adhere to independent innovation and build the “moat” of China’s platform Market Competition

First, platform enterprises are encouraged to increase investment in research and development, carry out research on key areas such as PLC, industrial models, and digital simulation, and improve the service capability and commercial competitiveness of industrial complex scenes. The second is to rely on the relevant pilot demonstration selection of industrial Internet platforms, increase the assessment of industrial landing, user expansion, market profitability and other indicators, encourage the diversified and in-depth development of the platform, and create core competitiveness. The third is to encourage platform enterprises to unite with leading enterprises in advantageous industries such as rail transit equipment, communications equipment, and electric power equipment to create “killer” products in the industry, promote the platform to go to sea, and shape international influence.

Optimize platform services and continue to expand the profit boundary of the platform

First, strengthen the overall layout of platform development, guide platform enterprises to focus on high-end, mid-end and low-end markets, build a echelon product service system, and explore diversified profit methods such as value-added services, small profits and quick sales. The second is to guide platform enterprises to accelerate the precipitation of experience in customized projects, promote the transformation of customized project delivery to standard product delivery, promote the transformation of standard products to cloud subscription, reduce the comprehensive cost of services, and improve long-term profitability. The third is to encourage platform enterprises to develop comprehensive capabilities such as assessment and diagnosis, scientific and technological consultation, and resource docking, carry out “companion” and “nanny” services, expand the development space of the platform, and tap the profit growth point of the market segment.