From the evolution of the global economy to social changes, from the evolution of business models to the improvement of productivity, these advances are in large part due to the huge potential of the network and smart technologies, which drive our development.

At present, the value chain of the manufacturing industry is undergoing a transformation from the traditional chain structure to the whole ecological value network, and this process shows the characteristics of decentralization and integration of production and marketing. Digital transformation is the strategic restructuring of an enterprise, which not only simply converts the original offline business to online, but also involves the restructuring of the enterprise’s future business development direction, corresponding organizational culture, innovation ability and value creation ability.

REU611 Growth in traditional manufacturing used to depend on Labour, capital and energy. However, this growth model has largely come to an end, and the construction of its core competitiveness now needs to be driven by technology. The rise of the digital economy marks the beginning of a new era. What are the new opportunities brought about by the digital economy compared to the industrial era and even the post-industrial era, and what are the changes in the industrial era?

In 1995, the author of “Digital Economy – Promise and Crisis in the Era of Network Intelligence” first proposed the concept of “digital economy”, especially emphasizing the importance of “network” and “intelligence”. At that time, the Internet had not been widely used in China.

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From the evolution of the global economy to social changes, from the evolution of business models to the improvement of productivity, these advances are in large part due to the huge potential of the network and smart technologies, which drive our development. Businesses first need to adapt to these changes and address the resulting challenges. From another perspective, these changes have also brought rare opportunities for many companies and industries.

01 Adapt to digital transformation

REU611 When we talk about manufacturing transformation, why do we use the word “transformation” more often than “improvement” or “optimization”? Transformation means subverting traditional perceptions and years of accumulated competitive advantages in order to seek new growth opportunities. “Intelligent manufacturing” as another key word of the manufacturing industry, marking that it is undergoing a fundamental change. From manufacturing to intelligent manufacturing, the transformation of manufacturing industry is reflected in many aspects.

The rise of new companies and industries over the past three decades has opened up new tracks and created unprecedented opportunities for manufacturing. The game between the old and new industries is fierce, and the incumbent enterprises hope to maintain the existing competitive advantages, such as the online and offline competition in the retail industry, and the competition between new energy vehicles and fuel vehicles. This game has not only promoted the rapid evolution of the market, but also prompted changes in consumer behavior, encouraging or forcing enterprises to innovate. Ultimately, this innovation will trigger a change in organizational structure and corporate culture, and transformation is essentially a profound evolution and “regeneration” process.

It should be noted that the innovations mentioned here are largely driven by customer demand rather than relying purely on technology. The technological development of some enterprises has exceeded the current customer needs, forming a future technology reserve. For example, 5G technology has not yet fully demonstrated its value, and 6G technology is already on its way.