Digital transformation is an unavoidable topic in modern enterprises. First of all, let’s take a look at the basic definition of digital transformation:
Digital transformation is a high-level transformation based on digital transformation and digital upgrade, which further touches the core business of the company and aims at creating a new business model. Digital transformation is the development of digital technology and support capacity to create a dynamic digital business model.
The digital transformation is mainly reflected in three stages: digital transformation, digital upgrade and digital transformation.
- Digital conversion: information digitization, that is, analog data to 01 binary;
- Digital upgrade: process digitalization, such as the most common IT business application systems in enterprises;
- Digital transformation: Business digitization, typically represented by Amazon and Apple;
IDC’s definition of digital transformation is relatively simple, as follows:
Digital transformation is the way and method to use digital technologies (such as cloud computing, big data, artificial intelligence, Internet of Things, blockchain, etc.) and capabilities to drive organizational business model innovation and business ecosystem reconstruction, which is digital transformation, its purpose is to realize the transformation, innovation and growth of enterprise business
In this concept, two points are emphasized: the first is the application of digital technology, and the second is business or business model remolding. Business remolding is the fundamental goal, while digital technology is only a tool and means. On this point, we should not put the cart before the horse.
There are three central steps to a better understanding of digital transformation: connection-data-intelligence
The digitalization of enterprises should be based on the top design, combined with the core competitiveness of enterprises, such as product design ability, socialized service ability, channel terminal coverage, and future industrial interconnection and ecological development direction, relying on the advantages of enterprises, grasp the essence of digitalization of enterprises themselves.
- Connection: the interconnection of all things, to solve the problem of the connection of people, people and things, things and things;
- Data: integration and collaboration occur after connection, and a lot of data will naturally be generated in the process of collaboration.
- Intelligence: data is processed and refined to form intelligent analysis applications;
Among them, connection solves the basic problem of business chain collaboration, forms data precipitation through business collaboration under connection, and forms data service capability to feed back business through data storage and processing, management and control. Meanwhile, continuous data accumulation further provides services for intelligent analysis applications such as machine learning and deep learning.
Reconstruction of digital capability framework
The figure above shows my reconstruction of the enterprise digital transformation capability framework. The green part is still centered on the core business value chain, among which the core part is connection, data and intelligence. In addition, two parts of organizational support and technical support are added at the lower level:
- Organizational support: including the organization, personnel, culture, process and other content
- Technical support: including cloud native, Internet of things, 5G and digital twin, etc., as well as the construction of data center
- Operational support: The core is continuous improvement based on data-driven thinking and aiming at value creation
The above is the reconstruction understanding of the enterprise digital transformation framework. For the subsequent preparation of this capability framework, special articles will be written to explain it. From this framework, we can at least clearly understand the specific position in the whole framework when we talk about a management, business or technical content.
Inside and out of digital transformation
Internal – Capability enhancement and refactoring
The enterprise digital transformation still needs to complete the enterprise internal information construction and integration, the integration includes horizontal business value chain as the core of collaboration and integration, including vertical production and manufacturing as the core of integration, but also to achieve horizontal and vertical integration.
For had the enterprise informationization foundation, practical is the two key, one is to solve the problem of system integration and integration between, one is how to use the new digital technology to solve the problem of automatic and intelligent, included in the current practice like intelligent storage and logistics, digital asset management, twin, intelligent manufacture and so on basic revolves around the two key.
External-consumption interconnection and industrial interconnection
Across the internal boundaries of enterprises to the outside, the most talked about is consumption interconnection and industrial interconnection, and the most practiced in this interconnection is the FMCG industry or the industry directly facing C-end customers.
Because in from the inside to the outside of the time, many actual enterprises in the imitation of the Internet play. For example, from the earliest talked about O2O online and offline integration, enterprises build their own vertical integration e-commerce, enterprises build their own capabilities and establish external connection ecology, expand their own brand and we media operation to realize the transformation from public domain to private domain, and achieve continuous improvement of business through data analysis of operation.
After 2-3 years of Internet enterprises, these ways of playing became popular in the digital transformation of traditional enterprises, including the construction of data center. In this process towards the external some enterprises succeed, some enterprises failed, if we carefully observe these enterprises you will find that most of the real success or large enterprises, the original information do mature enough enterprises, rather than those simple introduction of software manufacturers in Taiwan consulting and construction of enterprises.
There are two core reasons:
The first is that the internal ability training mentioned earlier is the foundation
The second is that digital transformation is essentially a business problem, followed by a technical problem
In recent years, there has been a bad trend of over-emphasis on marketing and seizing the flow of air, but in fact, the core of any enterprise is still to provide valuable and competitive products and services. As long as you provide competitive products, then whether traffic is on your side is not the most important thing.
There is specialization in the art industry. Any enterprise should find out where its core competitiveness is and focus on building its core competitive advantage instead of doing things that it is not good at.
I have been emphasizing that enterprises should not think about the whole industrial chain, or the whole process chain from production to delivery to customers. Instead, they should do a good job in a vertical way. It’s a good thing to have someone to represent you or distribute for you. You can make less money at any time, but also reduce costs and risks.
Secondly, as discussed above, it is not easy to directly face c-side clients if internal capabilities are not enough. When you really face C-side, you will find that demand agility and demand diversification increase dramatically. Can your current value chain, your production and logistics processes be responsive and flexible enough?
If this is not done, we can see that demand satisfaction will decline, which will affect the company’s brand strategy.
Include a fire in the last 1 to 2 years industrial interconnection concept, in front of me also have the article in detail, but you understand the industry of interconnected and you will understand this is not suitable for most businesses, or suitable for industry connected just to play up the head enterprises under vertical industry, to iec integration, more and more enterprises is only access and follow.