The digital economy is sweeping the world. As the main driving force for efficiency improvement and revenue growth, the power of digital technology has attracted a large number of companies that wish to achieve new business growth through digital transformation.
However, benefiting from digital investment is not easy. At present, only 13% of companies have achieved efficiency, cost savings, and business growth through digital investment.
This conclusion comes from an Accenture survey. Through interviews and investigations with executives from more than 900 large companies in 21 countries around the world, Accenture found that due to a lack of technology alliances, most companies failed to realize core business transformation and new business expansion through digital investment.
In order to help companies better benefit from technological change, Accenture proposed a set of concrete solutions "Industrial X.0".
“X has two meanings. On the one hand, X stands for crossover. With the advancement of transformation, there is a certain degree of integration between production and consumption. On the other hand, X also represents the future and the unknown, including big data, artificial intelligence, and districts. New technologies such as blockchains and even quantum computing emerge in endless numbers, and the future will be full of possibilities.†Yu Yi, managing director of Greater China for Accenture Digital Services, said in an interview with an interviewer.
He believes that the "Industry 4.0" in Germany, the "Industrial Internet in the United States" and the "Made in China 2025" in China are basically based on smart manufacturing, and they focus on promoting the upgrading of the manufacturing industry without involving the integration of production and consumption. . "Improved production processes and process improvements without understanding consumer demand do not solve the problem."
For enterprises, "Industrial X. 0" is the digital remanufacturing of industry.
Yu Yi believes that the core of “Industrial X.0†is the shift from a single product to a product plus service model. The traditional concept is that a product is equal to a piece of hardware, but now hardware uniqueness is one of the biggest obstacles to the upgrading of manufacturing. Manufacturing companies need to turn hardware into software-driven, smart, connected products. At the same time, the product must be able to provide users with personalized and ultimate experience.
Take the automotive industry, which has a rapid industrial X.0 process, as an example. Smart connected cars have become a new hot spot in the automotive market. In order to gain a competitive advantage, car companies are paying more and more attention to upgrades on the consumer side. In addition to the introduction of personalized design and personalized navigation services for consumer needs, Internet auto companies have even integrated mobile payment and information acquisition into the automotive system.
"Everything is software is a correct judgment. On the basis of software, we think everything is a service." Yu Yi said, "Industry X. 0" is to hope to open up production and consumption, on the one hand, through shaping operations, The production end improves the efficiency of the entire production. On the other hand, it creates new growth points for businesses by creating personalized, ultimate consumer experiences on the consumer side.
As a result, Accenture believes that "Industry X. 0" companies need to have the four characteristics of intelligence, vitality, interconnection and learning. In other words, business production needs to be smarter; people, systems, and machines need to be more interconnected; market opportunities must be more agile; and learning and adaptability must be improved, and these characteristics run through the entire process of production and operations.
Industrial X.0 transformation gains are significant but progress is still slow
According to Accenture's research, for enterprises, the joint application of digital technology will significantly reduce the cost per employee, while achieving the company's market value growth.
The data shows that, combined with the five digital technologies of autopilot, augmented reality (AR) and virtual reality (VR), big data, machine learning and mobile computing, companies can save an average of more than US$85,000 per employee. Combined with digital technologies including autonomous robots, mobile computing, autonomous driving, 3D printing, and machine learning, the company's market value can grow by an average of more than $6 billion. Specific to oil and gas companies, the joint application of digital technology will help the company's market value grow by more than $16 billion.
"The company's driving force for change, the returns it brings, and the foundation for continued support for change have become major obstacles for companies to implement the industrial X.0 transformation." Yu Yi said. The immaturity of technologies such as the Internet of Things and big data was once a major obstacle to corporate transformation, but now technology is no longer an obstacle.
In the interview process, the "visible return" was repeatedly mentioned. Yu Yi believes that “Industrial X.0†is a systematic solution and companies need to completely revolutionize the operating model, production, and value chain. In this process, companies need a lot of long-term investment, even including the investment in intangible assets, but at the same time, the enterprise must be able to obtain the benefits seen in a short period of time, at least within a controllable time frame. This contradiction greatly hindered the company's investment in "Industry X. 0".
Affected by this, over the past few years, the global "Industrial X.0" progressed slowly, Accenture's data shows that only 6% of the world's enterprises are ready to embrace the digital age, and more than 72% of companies have not started Industrial X. .0 transformation.
For Chinese companies, the overall progress of “Industrial X.0†will be slower because some “Chinese-style barriers†still need to be resolved.
"Fragmentation and diversification are constraining the development of Chinese companies." Yu Yi told the interface reporter. In addition to large central enterprises, Chinese enterprises are too fragmented and lack intensive and automated methods compared with Western companies. For the Chinese logistics industry, the largest logistics company only accounts for 1% of the market share. At the same time, there are also significant differences in the degree of application of digital technology by Chinese companies.
In the manufacturing sector, through the analysis of the digitization level of 170 listed companies in China's six manufacturing industries, Accenture believes that only 4% of the companies have already won the first position in the transformation of industrial X.0, and they have both digital investment and Business results advantage. About 77% of the companies have not yet begun to transition.
Enterprises on the transition road can start from here
"Enterprises need to develop a top-level strategy first," Yu Yi said. "Then follow the plan and do it step by step." A survey conducted by Accenture during the World Economic Forum shows that 85% of companies have realized that digital technology may be able to subvert the original production mode within a few years, but only 7% of enterprises have developed a comprehensive strategy, and 73% of enterprises Did not start planning at all.
While doing a good job of strategic planning, companies also need to put forward a clear roadmap. According to Accenture's observation, in the process of industrial X. 0's transformation practice, due to the lack of a clear roadmap, most companies have chosen to “return to the shore†due to lack of returns after “advanced†promotion of innovative businesses.
In the planning and road map development process, the most critical point is to balance the transformation and upgrading of core business and expand the relationship between innovative business. Among them, when and what kind of scale, what kind of speed to introduce what kind of innovative business is the company must be clear. "This is not so much a science, it is more of an art," Yu said frankly.
In addition, companies need to create a brand new digital culture. Through the change of management and operation system, they can help companies better adapt to user-centric and rapid iterative market demands. Accenture believes that corporate digital culture needs to be based on industrial design thinking and is rapidly updated according to the needs of consumers.
In the field of automobile manufacturing, the introduction of a new model in the past has been about 36 months, but now the car companies will launch a number of new models every year. Take the car child safety seat as an example. In the past, the consumer's requirement for the seat was to ensure safety. Now while ensuring safety, it is also necessary to comprehensively consider the child's physical characteristics and the car's internal design to meet the comfort and aesthetics. . In the design process, digital technologies including big data, 3D modeling and 3D printing allow manufacturers to design personalized new products in weeks or even days.
"And the most important point is that companies must fully cover the industrial X.0 when they conduct the industry." Yu Yi emphasized that "the quantity and quality of digital input are equally important." Accenture's "Digital Performance Excellence Index" in cooperation with the Ministry of Industry and Information Technology The survey found that many companies have a very direct relationship with their operational performance and the scope and height of digital input.
In 2016, China’s total digital economy has reached 22.6 trillion RMB, accounting for 30.3% of GDP. By 2025, the digital transformation of various industries around the world is expected to bring about social and commercial potential value of about 100 trillion US dollars (about 6,600 trillion yuan).
"In the future, the growth point of the explosion is more from the manufacturing and production side." Yu Yi said.
As the boundaries between consumers and producers become more and more blurred, the economic potential and innovation ability they release will be endless. Accenture hopes to work with Chinese customers to make Chinese companies a brand-new, even leap-forward development model in the global map of industrial X.0 transition in the next five to ten years.
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