Trends in the Digital Economy of the Digital Economy

With the ever-changing needs of consumers and the emergence of competitors, the renewal cycle of products and services is getting faster and faster. This requires companies to react to the market as quickly as possible, develop new strategies and implement them as quickly as possible, and adjust their strategies as quickly as possible.

Rapid response and rapid adjustment require companies to build their own "digital nerve" platform, and in the next few years, 70 percent of Chinese companies will build their own information **** enjoyment platform. The pressure of speed makes enterprises must cooperate to integrate resources and play their core strengths. The requirement for economies of scale and the risk of huge investment in new product development also force companies to share costs by cooperating, even with competitors, to form a cooperative and competitive relationship.

Information technology means, especially the Internet technology greatly reduces the information cost of cooperation and communication, making extensive and low-cost cooperation possible. Through the information platform rather than organizational integration platform, the partners form a virtual enterprise. Such a virtual enterprise not only has the resource advantages of large enterprises, but also has the flexibility of small enterprises, for the cooperation of all parties to bring great competitive advantage. In the future, sixty percent of Chinese enterprises' network applications will be used for internal business and business communication with partners. Under the impact of the rapid development of information technology, many industries have appeared to be a major fault, the industry's rules of the game are changing, new rivals from all directions, new suppliers at any time. Such disruptions both challenge the incumbents in the industry and provide opportunities for the newcomers, and there are opportunities for industry reshuffling to varying degrees in all industries. Many intermediaries are in danger of being eliminated and they are forced to provide new and greater value; many firms move into other parts of the value chain (upstream or downstream); manufacturing industries transform to services or reposition themselves in the value chain (e.g., switching from branded to OEM manufacturers), etc.; supply chains. China's financial (China Merchants Bank and Ping An Insurance) and home appliance industries (Haier and Midea) have already begun to move.

Companies are actively or passively using digital tools to correspond to value chain reconstruction: either to recapture their customers; or to reorganize and optimize their supplier base. In the traditional economy, the diversity of goods or services (richness) and the reach are a contradiction. Mass-marketed goods are always the same, while tailor-made goods are available to only a few.

But the development of digital technology has changed all that. Companies are now able to collect and analyze different customers' information and needs at a fraction of the cost, and customize them individually through flexible and adaptable production systems. The foreign automotive and apparel industries provide many successful examples. Large-scale tailor-made production methods will bring personalized products and services to each customer, and at the same time require companies to have a very high degree of agility and responsiveness.