What is industrial upgrading?

Industrial upgrading is the improvement of production factors, structural change, improvement of production efficiency and product quality, and upgrading of the industrial chain that makes the added value of products increase.

The essence of industrial upgrading is that, through the outbreak of the Internet, big data, artificial intelligence and other technologies and upgraded business concepts and methods, to open up the information asymmetry in the distribution of products, accelerate the transmission of information from the production side to the consumer side, so as to realize integration.

The essence of industrial upgrading:

Industrial upgrading is the megatrend behind consumption upgrading.

Every industry has many links between supply and demand, some of which are extremely concentrated in terms of energy density, such as the petrochemical industry, which is integrated from the front-end production and supply, the middle of the flow, and all the way to the back-end of the marketing chain, and is directly oriented to consumers. This type of industry in fact basically do not need to carry out industrial upgrading.

On the contrary, many industries, including animal husbandry and fisheries, have a low degree of product standardization, and after the products are supplied to the suppliers, the suppliers still need to do the splitting again to commercialize the products before circulation. These industries are characterized by imprecise docking between demand and supply points, many intermediaries, opaque information, the market is relatively chaotic, and the inefficient and complex process between the production end and the consumption end adds very much to the cost, these low energy density industries are in urgent need of industrial upgrading.

The essence of industrial upgrading is that, through the outbreak of the Internet, big data, artificial intelligence and other technologies and upgraded business concepts and methods, to open up the information asymmetry in the circulation of products, accelerate the information transfer from the production side to the consumption side, so as to realize the integration.

The whole link is de-mediatized, reducing the total number of nodes, but increasing the flux of each node, ultimately making the circulation more efficient, more transparent prices and faster flow.

Usually speaking, empirical management of the company is difficult to scale, but the emergence of the Internet provides the possibility of standardization of consumption and supply entrance. That is, first form information, establish standards, and then form data, and finally on the basis of data transactions, e-commerce is a standardized model through the Internet-enabled formation.