Digital transformation is in full swing, but many enterprises do not realize the nature of digital transformation is what? Where is the digital transformation going?

Some enterprises in the digital transformation, high high fight, heavy investment; Some enterprises take out part of the business scattered points to try, but the enterprise up and down, no one knows what the digital transformation to make a mascot; Some enterprises disdain a face, the in the mind is muttering about how this society, full of words, do not tune the new words.

No matter what kind of mentality people hold for digital transformation, the most important thing is to form a consensus in the management of enterprises that “the essence of digital transformation is the reconstruction of productivity and production relations”.

Some friends might say, “How is it possible to form a consensus? Everyone has different ideas about digital transformation, so how can there be consensus? And why are you right?” So, there are two questions:

  • Why consensus on the direction of digital transformation?
  • Why is the consensus that “the essence of digital transformation is the reconstruction of productive forces and production relations”?

Try to answer these two questions separately.

1. Why consensus should be reached on the direction and goals of digital transformation?

Because digital transformation is pulling the whole body together. Digital transformation is a master project, and not just a master project. Digital transformation involves people, money and equipment, and is related to the marketing, business, product, technology, finance and legal teams of the enterprise. It needs to link the leaders, middle-level and front-line staff of each team.

If all parties fail to reach a consensus, the digital transformation project will be physically and mentally exhausted, stumbling all over, getting tired and confused, even more tired and confused.

We don’t know what the problem is digital transformation to solve? What does it have to do with your job? Slowly, the project ran aground.

So at least the key players on each team should agree on what the digital transformation is supposed to achieve and what the goals are.

But the reality is that too often, the top brass take the lead and think digital is the new direction. The middle level of the enterprise is busy dismantling, and then each understand the task, and then downward transmission, at the same time to see whether there is no pit for others, and have not been buried by others. The front-line employees receive the task of being broken down into screws. Faced with tasks without foreword or afterword, front-line employees are bewildered, wondering how the boss is so stupid to spend so much money on meaningless things.

After such digital transformation, enterprises will still return to the state before digital transformation. So, the problems in the enterprise that existed before the digital transformation still exist after the digital transformation, and there are new problems that did not exist before the digital transformation. Or half of the transformation, the project has to be suspended, or the project can not end acceptance, those digital transformation service providers left a lot of tears.

If the leaders of enterprises do not realize that “the essence of digital transformation is the reconstruction of productivity and production relations” and reach an agreement with key people, it is transformation for the sake of digital transformation. For the sake of transformation and transformation, it is often because there is no goal, turn dizzy, back to the origin, or even backward.

Business management is a complex proposition. Digital transformation and deep-water issues in business management are inherently friends and enemies

Ii. Why is the essence of data-oriented transformation the reconstruction of productive forces and production relations?

Data itself is a language, and data itself does not generate value. For example, language itself does not produce value, but once language is used for communication and inheritance, it will produce great value

If a language is not used, it becomes an ancient civilization and has only ornamental and research value. Once language is used, civilization can be accumulated and inherited, forming knowledge and wisdom. Knowledge and wisdom can break the boundaries of organizations and systems in enterprises, and be inherited and iterated more widely.

The language of data, once applied in the business world, will form a huge chemical reaction, which is the reconstruction of productivity and production relations.

1. Why can data transformation reconstruct productivity?

The reason why digital transformation can reconstruct productivity is that the language of data will be completely activated after digital transformation. Before digital transformation, numbers are just like cards, which are left in all corners, and each other does not know the existence of each other, because data is scattered, there is no standard, let alone data application.

Through the transformation of data, these scattered and non-standard cards can become notes, books, films and television works, and even become the blood of science and an enterprise when they are opened, standardized and thoroughly beaten.

The language of data also has a function that other languages don’t, which is that it’s self-chemically reactive, or with a little catalyst, easily catalyzed into other magical forces. Because automatic or semi-automatic data analysis, data intelligence can break the blind spots of people and organizations, automatically identify, locate problems, and even solve problems automatically.

Therefore, one of the important values of digitalization transformation is to generate various data applications, including but not limited to ornamental data screens, data visualization, data analysis and data AI, through data acquisition, data governance and data processing of the originally scattered and discarded data without standards. Because through data, many objective facts and problems that have not been discovered can be found and solutions can be found.

For example, after digital transformation, we can finally see online how serious the cross shipment problem is in the channel in time, and where it is from, with precision attack.

Also found through data, for example, the original offline dealers make activities, also can bring up online sales, online dealers also lead to out of stock, as wise as consumers and distributors, at the price can be quick to seize market opportunities, it is not expected to before many managers, that how to online and offline game, and then drive enterprise channel management optimization;

Another example is before the transformation of data, when you need to see a data, you need to ask layers of questions from the headquarters to the big region and then to the provinces and cities. Not only have 2 weeks passed before getting the data results, but also have to set up several or dozens of such marketing specialists to collect data. For enterprises, people and time are productivity.

Therefore, the transformation of data provides multiple benefits to productivity:

  • Data that could not be obtained before can be obtained after the transformation;
  • It used to take a lot of people and time to acquire data, but after the transformation, the cost of data acquisition is greatly reduced.
  • In the past, it relied on people’s subjective initiative, and strongly relied on the data analysis and insight of personal professionalism and engagement. After the transformation, professional tools have a low threshold and universality, thus reducing management costs.
  • After the transformation of data, data can actively help locate problems and opportunities, and find solutions, solve problems scientifically and effectively, and also reduce enterprise management costs.

Therefore, the transformation of data makes the productivity, which used to rely on people, become automated and AI-based, and data becomes an important factor of production and productivity of enterprises, with fewer and fewer things to be decided.

2. Why can data transformation reconstruct production relations?

Digital transformation has broken the original information isolation and monopoly, making the cooperation between people and departments more transparent and unobstructed.

Everyone has their own goals, interests and blind spots, and each team also has its own goals, interests and blind spots, which is easy to cause difficulties in internal and external cooperation. Enterprise internal friction and internal volume are ubiquitous, which is one of the underlying driving forces of digital transformation of many enterprises.

Sometimes people or departments don’t want to work together because their butts are different and their interests are different. Single point of view, from the enterprise need to raise more people and efficiency of team cooperation will and cooperation, and in the digital transformation to link the enterprise data, makes the enterprise middleman and person, team, and team, internal and external cooperation have more possibilities, on the one hand, blind area between team and team opened, everyone began to more understand each other, on the other hand, After many management problems are visualized, the good and bad ones are gradually exposed. When problems are encountered, it becomes more and more difficult to find reasons for evading or not cooperating, so we are forced to cooperate.

Sometimes, people or departments between departments want to cooperate, but do not know how to cooperate, how to do in the end is professional, no one knows, no one refuses to accept who. This is also a problem that digital transformation can solve, and professional data application is one of the solutions. Look at the same data, use highly agreed methods and goals to solve the same problem.

Therefore, digital transformation will break the original boundaries of enterprise internal, internal and external cooperation. Once broken, or in the enterprise of production relations to refactoring, before those who are strong at the front desk team began to respect the background support team, the background support team began to understand the front desk is not easy, even Taiwan before and after team merged into one, this adjustment depends on the actual business and regulatory requirements.

At the same time, digital transformation is not about building a data warehouse and a bunch of data applications. After data is linked and applied in a standardized way from scattered and non-standardized form, productivity is formed. However, such data productivity can only become productivity when it is used, that is, it needs to be driven by production relations.

Without the operation of data, digital transformation is just a static tool. Data operation can give full play to the productivity of data, and data operation is a kind of production relationship. In many enterprises, there are no positions equipped with data-based operation, or the people in charge of operation do not understand data, do not understand data-based operation, or despise data-based operation, so digital transformation is useless.

Therefore, to give full play to the power of digitalized transformation, it is necessary to adapt to the production relations.

Third, summary

Digital transformation is a kind of self-transformation from the inside out, using digital technology change. The core of this reform is to improve productivity, improve the relations of production, solve the problems that could not be solved before, or solve the problems with lower costs. At the same time, identify problems and market opportunities that had not been noticed before.