after some discussion, we have a better understanding of the thinking mode of entrepreneurs, and feel it is necessary to help enterprise executives further clarify the related concepts and real significance of digital transformation in combination with the specific operation of enterprises.
first, the core of digital transformation is to carry out business digitalization
The concept of digital transformation is very hot, but at present, the interpretation and implementation system of most professional institutions is still abstract and academic, and many enterprises often feel unclear but have no way to start. For example, an authoritative organization defines that "the core of digital transformation is to transform the development model that adapts to the material economy into the development model that adapts to the digital economy." Such a high concept has certain guiding significance for central enterprises, state-owned enterprises and super-large private enterprises, but it is not very grounded for medium-sized and small and medium-sized enterprises, and it is difficult for decision makers to really pay attention to it.
if it is restored to the specific business context of the enterprise, it will be easier for the management team to understand and the action will be quick and powerful. Enterprise management is not academic. Executives often make decisions and communicate around the business purpose of the enterprise. Everything must be clear about its goals and expected results, and the input and output must be evaluated to determine whether it is worth it. We believe that it is easier to reach a * * * understanding by popular interpretation with such business logic.
1. The main purpose of the enterprise system is to improve the efficiency of internal collaboration and achieve the result of reducing costs and increasing efficiency.
For example, the mobile OA system can improve the efficiency of internal communication and cooperation; Shorten the information transmission link between departments and reduce the time of work inspection and face-to-face communication between superiors and subordinates; Good use of OA combined with HRM system can compress the hierarchy of traditional enterprise organizational structure, reduce general management and auxiliary posts, and have obvious effect on improving per capita output value;
as the epidemic continues, mobile office can provide enterprises with more benefits, such as online collaboration, agile operation, online training, etc., which belong to the category of management digitalization, and the introduction of digital tools and systems in CRM, MES and various departments in enterprises also belong to management digitalization. Management digitalization means improving the internal efficiency of enterprises by using various digital tools and technologies, which can achieve the purpose of saving money and reducing expenditure. Enterprises also need to think about how to open source, which is a more core issue.
2. The online system can only improve efficiency and reduce costs, but it can't fundamentally change the fate of traditional enterprises. It is the core for traditional enterprises to take the lead in promoting business digitalization.
On the system, promoting digitalization of management can gain a short-term cost advantage, but it has not changed the existing business of the enterprise. Business decision makers should think more about whether the existing products or businesses are at risk of being replaced.
if a man has no long-term worries, he will have near worries. In Shenzhen, the frontier of reform and opening up, we have witnessed the changes of many industries. When major changes occur, many well-managed enterprises are caught off guard, and they know why when they fail. We must never complain like Nokia CEO Ollila that "we didn't do anything wrong, but somehow, we lost."
Existing products (businesses) will always be outdated or surplus, replaced by competitors or no longer needed by consumers (customers), which will be a disaster for enterprises. From photography, media, mobile phones, restaurants, retail and many other industries, it has rules to follow.
At present, using the new generation of digital technology and business scenarios to combine innovation, realize the digitalization of products and businesses, and create new value for customers, which will increase new profit points for enterprises, and the key is to greatly increase the core competitiveness of enterprises.
the research of Zhicheng internet team found that traditional enterprises, just like internet enterprises, can have network fission effect and accelerated monopoly effect, and enterprises can connect and lock the forces of all parties in the industrial chain through business digitalization to achieve the purpose of leading the industrial chain and integrating the ecological operation of resources. It is the first move for traditional enterprises to carry out business digitalization, and they can attack and retreat.
3. The digitalization of traditional enterprises' business should start with the digitalization of products and services, infiltrate silently, and seize the dominant position little by little.
Digitalization of products simply means adding new functions such as digital remote control and data acquisition to existing functions, thus locking customers and reducing the possibility of customer replacement; For example, by installing the positioning and remote monitoring system on excavators, Caterpillar, Hitachi and other manufacturers have realized flexible sales modes such as installment payment and bank mortgage, and expanded their market share. The core functions of the monitoring system, such as remotely stopping the machine and positioning the tractor, ensure that the buyer is difficult to default, ensure that the business risks of the manufacturers are controllable, and increase financial benefits.
Figure: Digital Backstage of Excavator (positioning and monitoring function)
Digitization of service, simply speaking, is to provide streamlined digital service in the background of cloud software, so as to control channels, customers (B-end) and users (C-end) and ensure long-term sustainability of business flow; Service digitization can be divided into pre-sale, in-sale and after-sale digitization:
Pre-sale service digitization mainly relies on marketing tools such as CRM (Customer Relationship Management) or WeChat Enterprise Letter, which commercializes customer resources scattered in sales hands, quickly collects and analyzes the needs of potential target customers through digital tools, and accurately introduces products to hierarchical customers to improve sales success rate;
Digitalization of service in sales refers to the system service after customers decide to buy products, including channel response, online contract, business payment, order modification, collection of actual customer (user) information, logistics (express delivery) inquiry, etc., with the purpose of improving customer experience and allowing customers to actively provide witness communication;
Digitalization of after-sales service is to provide convenient and fast online and offline services such as product use training, remote operation and maintenance, fault maintenance, spare parts distribution, etc. by using digital technology, with the purpose of reducing the cost of batch service and improving the repurchase rate of users.
figure: excavator service background
enterprises can form a variety of business combinations by combining product digitalization with service digitalization (especially during and after sales). How to analyze customer needs and realize the combination of hard and soft will be discussed in the following special articles.
Take the excavator industry analyzed earlier as an example, with business models such as renting and selling on behalf of others, active parts sales, second-hand repurchase, etc. Now Sany Heavy Industry is still strengthening the digitalization of excavator operation and 5G remote control, which are also products of manufacturing enterprises & Innovative attempt of service digitalization;
business digitalization refers to the digitalization of the whole link around the business unit (BU) formed by the main product line and its services; Including the digital design of product service system, brand digitalization, product sales, channel digitalization, service support, risk management, etc., using digital technology and business scenarios to form a more favorable business model for enterprises.
The typical case of business digitalization is Tetra Pak in Sweden. Tetra Pak itself is a supplier of liquid food (milk, juice) packaging equipment. It is convenient to purchase Tetra Pak filling equipment in installments. In addition to the low down payment, Tetra Pak will also send a professional service team KAM to the customer's factory to provide services such as planning, technology, quality control and branding (in-sale services).
tetra pak equipment only recognizes aseptic packaging paper with its own patented bar code, and packaging paper from other manufacturers cannot enter the machine for canning. Through such digital means of products, Tetra Pak has locked in customers and must purchase his packaging consumables on a regular basis.
At the same time, Tetra Pak has cultivated new service value through long-term contractual embedded customer service, making Tetra Pak's resident team a part of customers' brains, making customers highly dependent on Tetra Pak and keeping abreast of customer trends and industrial data.
In this way, Tetra Pak, whose business has been digitized, has turned customers' one-time purchase behavior into lifelong purchase behavior, ensuring long-term profit flow. According to statistics, 95% of China's dairy industry chooses Tetra Pak's equipment, and 1, production lines use its consumables around the clock. Tetra Pak has taken 2% of the profits of China's dairy industry after drought and flood. It is not an exaggeration to say that all china dairy is working for Tetra Pak.
4. Digitalization of management is the time to win the competition for enterprises, so that traditional enterprises can have certain resources and financial resources to promote and complete digital transformation.
Digitalization of products and services is the foundation of business digitalization; There is a master-slave relationship between business digitalization and management digitalization. Management digitalization serves business digitalization, and it is necessary to go to the system around the main axis of business digitalization, and make clear which systems should be accessed, which should be researched by ourselves, and which is more efficient to borrow external systems.
Digitalization of management must be promoted continuously, and it should be included in the key work of the annual business plan, and the core work of the annual business plan is how to carry out digitalization of products and services; Management digitalization mainly wins time for enterprises to compete, so that traditional enterprises have certain resources and financial resources to promote and complete digital transformation.
digital transformation is to use the new generation of digital technology and business scenarios to combine innovation, change the way enterprises create value for customers, realize the digitalization of products and services, successfully create a new business model in line with the digital economy, and gain sustainable competitiveness facing the future.
Digitalization of products, services and services is not achieved overnight, but requires sufficient time and cycle, continuous exploration, trial and error and evolution. This is also a process of upgrading and reshaping the talent structure and core competence of traditional enterprises.
the digital transformation of traditional enterprises may not be fully thought out and clearly planned, but the right direction is not afraid of the long way. As a matter of urgency, enterprises should adopt products &; Digitalization of service and its own digital application have penetrated into dealers and customers silently, and grasped the dominant position in their hands little by little.
to be continued, the next article is entitled "digital transformation is to prepare for the stock competition of industrial surplus".