On the system and one of the digital transformation: the core of digital transformation is to carry out business digitization

Recently with a few manufacturing companies to communicate with the senior management of the enterprise product digitization and digital transformation, the old bosses that the company is on the OA and CRM system, is doing digital transformation. Mr. Li analyzed this is the management of digitalization, only the digital upgrade of the enterprise, is the beginning of digital transformation; the current really important is to open the product digitization, is the key preparation for digital transformation.

After some discussion, we better understand the entrepreneur's way of thinking, and feel the need to combine the specific operation of the enterprise to help business executives to further clarify the concepts related to digital transformation and the real meaning.

First, the core of digital transformation is to carry out business digitization

The concept of digital transformation is very hot, but most of the current professional organizations to explain and implement the system is still relatively abstract and academic, many entrepreneurs often feel unknown but can not start. For example, an authoritative organization defined "the core of the digital transformation is to adapt to the development mode of the material economy, to adapt to the development mode of the digital economy." The concept of such a high level of centralized state-owned enterprises and large private enterprises have a certain significance of guidance, but for medium-sized, small and medium-sized enterprises is not too grounded, it is difficult to make decision makers really pay attention to.

If it is reduced to the specific business context, the management team to understand it easier, the action will be rapid and powerful. Business operations are not academic, executives are often around the business purpose of the enterprise to make decisions and communication, do everything must be clear about its goals and expected results, and to assess the inputs and outputs to determine whether it is worth it. We think it is easier to reach **** knowledge with such business logic to popularize the interpretation.

1, the main purpose of the enterprise on the system is to improve the efficiency of internal collaboration to achieve the results of cost reduction and efficiency.

For example, on the mobile OA (office automation) system, can improve the efficiency of internal communication and collaboration; shorten the inter-departmental information transfer links to reduce the upper and lower levels of the work between the inspection and face-to-face communication time; with a good OA combined with the HRM system, can be compressed traditional corporate organizational structure levels, reduce general management and support positions, to improve the per capita output value has a significant role;

As the epidemic continues, the mobile office also has the opportunity to improve the efficiency of internal communication and collaboration, to improve the efficiency of internal communication and collaboration, to improve the efficiency of internal communication and collaboration. The epidemic continues, mobile office can also provide more benefits to enterprises, online collaboration, agile operations, online training, etc., these belong to the category of management digitization, enterprise CRM, MES and the introduction of digital tools and systems in various departments also belong to the management digitization, management digitization that is, through the use of a variety of digital tools and technology to improve the efficiency of the enterprise internal efficiency can be achieved to achieve the purpose of saving money and cutting costs. Enterprises also need to think about how to open source, this is a more core issue.

2, on the system can only improve efficiency and reduce costs, can not fundamentally change the fate of traditional enterprises, take the lead in promoting the business of digitalization is the traditional enterprises to grasp the fate of the core.

On the system, to promote the management of digitalization can obtain short-term cost advantages, but did not change the business has been business, business decision makers should think more about is the existing product or business has not been replaced by the risk.

People do not have far-flung concerns, there will be near worries. In Shenzhen, the frontier of reform and opening up, we have witnessed a lot of industrial changes. When major changes occur, many well-managed businesses are caught off guard and fail to know why. We must not complain like Nokia CEO Olila, "We did not do anything wrong, but do not know why, we lost."

Existing products (businesses) will always become obsolete or redundant, be replaced by competitors, or no longer be desired by consumers (customers), and this will be the end of the business. This happens in many industries, from photography, media, cell phones, restaurants, retail, and so on, and its a rule of thumb.

Currently, the use of a new generation of digital technology and business scenarios to combine innovation, the realization of products and business digitalization, to create new value for customers, which will increase new profit points for enterprises, the key is to greatly increase the core competitiveness of enterprises.

The Zhicheng Internet team found that the traditional enterprise digitization and Internet enterprises, as well as the network fission effect and accelerate the monopoly effect, the enterprise can be digitized through the business to connect and lock the industry chain forces, to achieve the dominant industry chain and integration of resources ecological operation purpose. The traditional enterprise to carry out business digitization is the first move, into the attack and retreat can be defended.

3, the traditional enterprise business digitization, should start from the product digitization and service digitization, silent penetration, a little bit to seize the lead.

Product digitization, simply put, in the existing function to add digital remote control, data collection and other new features, so as to lock the customer, reducing the possibility of customer replacement; For example, through the installation of excavators positioning and remote monitoring system, Caterpillar, Hitachi and other manufacturers to achieve flexible installments, bank mortgages, and other sales modes, to expand the market share, and monitoring systems can be remote shutdown, The core functions of the monitoring system, such as remote shutdown, positioning and towing, ensure that the buyer is difficult to default on the contract, ensuring that the manufacturer's business risk can be controlled, and increase financial returns.

Figure: Excavator digital background (positioning monitoring function)

Service digitization, simply put, is to cloud software background to provide the process of digitization of services, so as to control the channel, the customer (B-side) and the user (C-side), to ensure that the business flow of long-term sustainable; service digitization around the provision of the product can be divided into the pre-sale process, sales and after-sales digital:

Pre-sales service digitalization mainly relying on CRM (customer relationship management) or WeChat enterprise letter and other marketing tools, will be dispersed in the hands of the sales of customer resources enterprise, through the digital tools to quickly collect, analyze and understand the needs of potential target customers, to the layered classification of the customer accurate promotion of the product process in order to improve the success rate of the sale;

In-sales service digitalization is aimed at the customer decided to buy the product after the System services, including channel response, online contracts, commercial payments, order modification, collection of actual customer (user) information, logistics (express) inquiries, etc., the purpose is to improve the customer experience, so that customers take the initiative to provide testimonials dissemination;

The digitalization of after-sales service is the use of digital technology to provide convenient and fast training in the use of the product, remote operation and maintenance, fault repair, delivery of spare parts and other on-line and off-line services, the purpose is to reduce the cost of bulk services, to reduce the cost of bulk services, to the stratified classification of customers to accurately recommend the product to the sales success rate. The goal is to reduce bulk service costs and increase user repurchase rates.

Figure: Excavator service background

Enterprises can form a variety of business combinations by combining product digitization and service digitization (especially in-sale and after-sale digitization). How to analyze customer needs and realize the combination of hard + soft, we will discuss it in depth in the subsequent dedicated articles;

Take the excavator industry analyzed earlier as an example, business models such as rent-to-own, active parts sales, second-hand buyback, etc., and now Sany Heavy Industries is also strengthening the digitization of excavator operation and 5G remote control, etc., which are also innovative attempts to digitize the products & services of the manufacturing enterprises;< /p>

The business digitalization of enterprises can form a variety of business combinations. /p>

Business digitization, refers to the main product line and its services around the formation of the business unit (BU), the whole chain digitization; including the digital construction of the product and service system, brand digitization, product sales, channel digitization, service support, risk management, and other digital design, the use of digital technology and business scenarios, the formation of a more favorable business model for the enterprise.

A typical case of business digitization is the Swedish Tetra Pak, Tetra Pak itself is a supplier of packaging equipment for liquid food (milk, juice), and the purchase of Tetra Pak filling equipment can be easily paid in installments, and in addition to a low down payment, Tetra Pak also sends a professional service team, KAM, to station at the customer's factory to provide planning, technical and quality control, branding, and other services (in-sale services);

Tetra Pak The equipment only recognizes aseptic wrappers with its own patented barcode, and other manufacturers' wrappers cannot enter the machine for canning. Through such means of product digitization, Tetra Pak locks in customers who must be fixed to buy his packaging supplies.

At the same time, Tetra Pak has cultivated new values of service through long-term contractualized mosaic customer service, making Tetra Pak's assigned team part of the customer's brain, making the customer highly dependent on Tetra Pak, as well as keeping abreast of customer dynamics and industry data.

In this way, Tetra Pak, after business digitization, 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 choose Tetra Pak's equipment, 1000 production lines use its consumables day and night, Tetra Pak's drought and flood insurance income share of China's dairy industry 20% of the profit, said the entire Chinese dairy industry are working for Tetra Pak is not too much.

4, the management of digitalization, is to win the competition for the enterprise time, so that traditional enterprises have certain resources and financial resources to promote and complete the digital transformation.

Product digitization, service digitization is the foundation of business digitization; business digitization and management digitization is a master-slave relationship, management digitization is for business digitization services, the need to digitize the business around the main axis of the system, and clear on which systems should be on which to self-research, which borrowed from external systems more efficient.

Management digitization is necessary to promote, and is a continuous promotion, to be included in the annual business plan of the key work, and the core work of the annual business plan is how to carry out product digitization, service digitization; management digitization is mainly for the enterprise to win the competition time, so that the traditional enterprises have certain resources and financial resources to promote and complete the digital transformation.

Digital transformation is the use of a new generation of digital technology and business scenarios combined with innovation, changing the way companies create value for customers, to achieve product and business digitization, successfully create a new business model in line with the digital economy, to obtain a sustainable competitiveness for the future.

The digitization of products, services, and business is not an overnight success, but requires sufficient time and cycles of continuous exploration, trial and error, and evolution. This is also a process of upgrading and reshaping the talent structure and core competencies of traditional enterprises.

The digital transformation of traditional enterprises may not be able to fully think clearly and plan clearly, but the right direction is not afraid of the long way. As a matter of urgency, enterprises should digitize their products & services and their own digital applications, and silently penetrate into dealers and customers to go in, and a little bit of the dominant power in the hand.

To be continued, the next article entitled "digital transformation is to prepare for the industrial surplus stock competition"