How does digitalization help state-owned enterprises to transform and innovate?Look at the benchmark cases of leading demonstration enterprises

On May 27th, the 2021 State-owned Enterprise Digital Transformation (Shanghai) Summit with the theme of “Digital Empowerment of Smart State-Owned Enterprises” was held in Shanghai. And the “Local State-owned Enterprise Digital Collaborative Innovation Alliance” jointly initiated by professional service organizations such as JD.com, UFIDA, Huawei, Ali, and Baidu was officially established at the summit.

At the beginning of the “14th Five-Year Plan”, digital transformation has become the key word for the deepening of reform and innovative development of state-owned and state-owned enterprises. In accordance with the guidance of the State-owned Assets Supervision and Administration Commission of the State Council’s “Notice on Accelerating the Promotion of the Digital Transformation of State-owned Enterprises”, it is necessary to better grasp and lead the trend of the new generation of information technology transformation, and take multiple measures to promote digital transformation. .

In this context, Shanghai State-owned Capital Operation Research Institute, as the most representative state-owned think tank in China, initiated and held this summit, and jointly initiated the establishment of a local state-owned enterprise digital collaborative innovation alliance with professional institutions and local digital transformation benchmarking enterprises to establish digital transformation. The center, by building a platform, gathering resources from government, industry, academia, research and capital, broadly gathers consensus on digital transformation, jointly explores and formulates standards and norms for the assessment of the maturity of digital transformation of state-owned enterprises, and takes the lead in creating benchmark cases for demonstration, which will better welcome the digitalization of state-owned enterprises. The arrival of the wave.

As a public welfare platform for promoting the digital transformation, cooperation and exchange of local state-owned enterprises, the alliance will actively play a role as a link and platform in the areas of industrial digital transformation of local state-owned enterprises, digital industrialization development, innovative application of digital technology, new digital infrastructure construction, and digital transformation collaborative ecology.

01Find the direction

Chen Chunhua, dean of the BiMBA Business School at Peking University’s National School of Development, said that the biggest challenge to the digitalization of state-owned enterprises comes from senior managers. “In my opinion, digital transformation is not a technical issue, but a mentality issue.” She believes that first of all, she must ask herself whether she is willing to become a person in the digital age, not a person in the industrial age.

Yuan Xiaoning, Secretary of the Party Committee and Chairman of Shaanxi Investment Group, believes that digital transformation is not only the general trend of the global economy, but also an important way to promote the transformation of my country’s economic development momentum, efficiency and quality. As the first state-owned capital investment and operation company in Shaanxi Province, Shaanxi Investment Group adheres to the mission and responsibility of “pursuing value and leading development”, seizes the new opportunities provided by industrial digitization and digital industrialization, actively deploys the digital economy, and promotes the high-quality development of the group. .

“Shaanxi Investment Group started with electric power. After 30 years of reform and development, it has become a comprehensive state-owned capital investment and operation company with energy, finance and investment as its main business. “Development’ function.” Yuan Xiaoning introduced, “Faced with the wave of digital transformation, we closely follow the pulse of the times, plan and promote the digital transformation and development of the group from a strategic height. First, we understand the value of data and the significance of digital transformation from the perspective of ‘three modernizations’. For a long time, the Group has adhered to the ‘three modernizations’ business path of resource capitalization, asset capitalization, and capital securitization. We focus on understanding the resource endowment attributes of data as a factor from the perspective of ‘three modernizations’, focusing on digital industrialization, industrialization Digitization and digitalization of management and control, promote the deep integration of information technology and the group’s business, and actively create new industries, new formats and new models of the group’s digital economy. The second is to strengthen the top-level design and systematic planning of digital transformation. We combine the group’s “14th Five-Year Plan” development, Formulated the group’s industrial digital development plan, digital industry development plan and overall digital management plan, and clarified the digital transformation goals of ‘leading the development direction, changing the management and control model, building a system platform, building the group’s hardware, coordinating data resources, and improving the governance system’ , focus on building organizations, mechanisms and capabilities to support digital transformation. Third, adhere to the principle of ‘six unification’ of planning, standards, investment, construction, management, and operation and maintenance, accelerate the construction of intelligent production, intelligent management, and intelligent operation systems, and continuously deepen all-round digital transformation.”

The practice of China Resources Group’s digital transformation starts from identifying the direction and planning the Smart China Resources 2028 Vision, “Committed to helping China Resources become a world-class enterprise with global competitiveness through smart technology.” Its digital planning is divided into two stages: digitalization and intelligence. , realize the ecology of China Resources Cloud, the ecology of big data and artificial intelligence, and the ecology of the industrial Internet.

Jin Gang, vice president of Shanghai INESA (Group) Co., Ltd. and chairman of Yunsai Zhilian Co., Ltd., believes that the fundamental task of digital transformation is the optimization, innovation and reconstruction of the value system. Starting from five perspectives, including governance system and business innovation and transformation, build a systematic and systematic relationship, and systematically promote digital transformation. “The first is the development strategy, which is to put forward a value proposition, formulate a digital transformation strategy, and make it an important part of the organization’s development strategy.” Jin Gang said.

INESA Group, which is committed to building a smart city overall solution provider and operator, has unique INESA characteristics in digital transformation. In particular, its subsidiary Yunsai Zhilian Co., Ltd. is not only a typical example of INESA’s state-owned enterprise reform, but also a microcosm of INESA’s digital transformation. After Yunsai Zhilian established its development direction as a listed company, it began to transform and upgrade from the traditional manufacturing industry to the information service industry. Combined with Shanghai’s industrial positioning, aiming at high-end, intelligent and informatization, we strive to explore the transformation from product to solution, platform and service.

“With regard to the implementation method of digital transformation, it is recommended to adopt the ‘five-step method’, that is, plan first, then pilot, see the effect, then promote, and finally optimize.” Huang Huanggang said that planning first is a very important experience, and we should look at it. Long-term, follow the trend, and formulate a long-term plan suitable for the characteristics of the industry and the current situation of the unit; to choose a pilot project is to choose a field with relatively mature conditions, complete talents, technology and other key elements, and quick results as the starting point for the first trial. Get quick results, gain experience, and build confidence. The pilot effect evaluation requires evaluating the effectiveness of the pilot work at any time, not to overestimate the short-term benefits, and not to underestimate the long-term value. Copy and enlarge, expand the scope, that is, select similar or similar business scenarios, copy and enlarge the successful experience of the pilot. The last is operation optimization and continuous adjustment, that is, in the process of business operation, keep up with the rapid development of new technologies, continuously optimize and iterate rapidly. “Assess the progress and success of the transformation in a timely manner, and optimize and adjust the enterprise transformation and development plan accordingly.”

How does digitalization help state-owned enterprises to transform and innovate?Look at the benchmark cases of leading demonstration enterprises

 02 pattern creationnew

Experts at the meeting believed that in the process of applying technology to promote the transformation and development of enterprises, it is not only the application of technology to optimize products and processes, but also the use of technology to realize business model innovation, promote the in-depth integration of products, industries and technology, and make services jump out of tradition development path, to create a new business model and business space.

State-owned enterprises should learn more from the service concept of Internet companies, shift from product-centered thinking to customer-centered as soon as possible, and truly put people first. The current trend of the network is cloud + things + edge computing. In the future, the technical boundaries of the industry will gradually blur, and innovation will appear more in cross-cutting fields. The wisdom and strength of government, industry, academia and research should be gathered to focus on long-term and in-depth perspectives. Integrate, realize the complementary advantages between different enterprises, and jointly improve the basic research ability of cutting-edge technology, the business application ability of industrial technology, and the innovation breakthrough ability of cross-border integration, and grow together.

Nanfang Cement Co., Ltd. (hereinafter referred to as Nanfang Cement) is a super-large cement enterprise with the background of a central enterprise. The company started to build a smart factory in May 2019. After the factory was completed, both power consumption and carbon dioxide emissions dropped significantly. The practices of Southern Cement include: First, optimize the production formula with data, and carry out refined design of cement ingredients. The quality of cement depends on the proportion of chemical ingredients, and the effects of silicon, calcium, aluminum, and iron on cement quality are compared. big. In the past, this process relied on experience. In the digital environment, through automatic sampling, data analysis, and algorithm selection, an optimal ratio can be found, which not only ensures product quality, but also reduces energy consumption and emissions. The second is to control product quality with data. The key to cement production depends on temperature. Southern Cement uses machines to replace people to control temperature. At the same time, it also adopts “optimizing material supply with data”, “escorting safe production with data” and “monitoring with data”. Measures such as reducing pollution and carbon emissions” to achieve digital transformation.

Digital transformation will inevitably bring about organizational restructuring, and the organizational structure will change from pyramidal and hierarchical to flat and networked. This means reducing the middle layer, reducing administrative approval and reporting levels, as well as parallel decision-making and parallel distribution and coordination; it also means breaking the boundaries of industries and organizations, and the organization has moved from the serial relationship in the past to being intertwined in series and parallel. Changes in the organizational structure also bring about changes in the functions and settings of positions. Creating a digital battle group requires role reconfiguration and technical empowerment of the front, middle, and back offices. From the perspective of role positioning, first of all, the front desk must be agile, the front desk is the front-line personnel, and those who can hear the artillery fire call for the artillery fire. The core of one-network unified management is business capabilities and data, providing data cannonballs for the front office; the last is to stabilize the back office, including culture, organization, data brain, etc., and the back office supports all the resources needed by the front office and the middle office. From the perspective of technology empowerment, the front office is industrial interconnection, laying out more agile channel construction, including online marketing models, customer experience, digital ecology, etc.; middle office refers to supply chain, industrial Internet, intelligent manufacturing, flexible manufacturing, etc. ; The background is more of a platform for collaborative sharing, digital collaboration, digital analysis, and intelligent risk control. Strengthening oneself internally, empowering employees, and achieving win-win externally can be said to be the three secrets of digital transformation for enterprises.

03 Empowering state-owned and state-owned enterprises

The digital transformation of state-owned enterprises is the general trend, but it is impossible for every system and platform to be developed by state-owned enterprises. Therefore, state-owned enterprises need to choose leading product platforms, product companies and professional service companies as strategic partners to support the digital transformation of enterprises. .

Since its establishment in 1988, UFIDA has been focusing on the field of enterprise services. Its development is divided into three stages. The main product of the first stage is financial software, which serves the computerized accounting of enterprises; the main product of the second stage is ERP, The informatization of service enterprises; it is now in the third stage, and through enterprise cloud services, it helps enterprises to digitally transform. The core platform and products of UFIDA cloud service is UFIDA’s business innovation platform, which consists of 3 parts. The first part is PaaS, which includes technology platforms, business platforms and data platforms, etc., which can help state-owned enterprises build a technical foundation for digital transformation. The second part is various types of cloud services, such as procurement, intelligent manufacturing, digital marketing, data finance, etc., which provide services for business innovation in the entire value chain of enterprises. The third part is the operation and supervision system of finance, human resources and collaborative work for large enterprise groups, which can provide support for the operation and control of group enterprises.

The Electrolysis Intelligence Business Department of JD Retail Group is a platform under JD.com that provides digital integration of procurement for corporate users, that is, to help corporate users realize digital procurement. JD.com is a supply chain-based service company that has launched this platform based on nearly 20 years of practical experience in the e-commerce industry and warehousing and logistics.

Liu Jianxun, general manager of the Electrolysis Intelligence Business Department of JD Retail Group, believes that the digitization of procurement is the best entry point for the digital transformation of enterprises, and the digitization of procurement is quick and easy to achieve. “The digitization of procurement is a top-down change.” Through digital procurement, it can help state-owned enterprises achieve procurement compliance and sunshine procurement. He said that there are two misunderstandings to be avoided in the digitization of procurement, one is “castle in the air” and the other is “island of information”. Electrolyzer has a product called Procurement Brain, which is based on the whole process of procurement, from commodity transaction to after-sales, to solve some new problems arising from digitalization.

 

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