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China's industrial transformation: intelligent manufacturing is the direction of information technol

On September 8th, the "China Industry 4.0 Report" (the "Report") was released on the eve of the opening of the Davos Forum in the summer of 2015.

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The report was jointly conducted by Deloitte Touche Tohmatsu and the China Machinery Industry Federation to conduct research on 200 different sizes and industries. The results show that China's manufacturing enterprises in the development of information technology at different stages, only 42% of the respondents said the use of integrated means, in the production process into the information technology.

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The report pointed out that in order to achieve the government's "Made in China 2025" plan, should further promote technology, information technology and innovation work.

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Manufacturing has become a global economic engine

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The report pointed out that manufacturing has become the engine of global economic development. From the German "Industrial 4.0" to the United States "industrial Internet" to China "manufacturing information", the transformation and upgrading of manufacturing has become a new round of economic growth within the driving force.

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"China will use China's economic development to help China's economic development," said Mr. Zhang Tianbing, Deloitte China's strategy and operations partner. "China's 2025 program focuses on intelligent manufacturing, which means that information technology will be a key driver of China's manufacturing success in the future. To win the market, companies must address how to apply information technology, including a comprehensive understanding of their production processes, the development of detailed implementation plans.

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However, in this survey, 46% of the respondents admitted that the information only to achieve a single business coverage, and 6% of the respondents have not yet carried out information technology development. Respondents believe that the biggest challenge in the development of information technology is how to fully use the software in the production process, followed by how to collect and analyze the system data.

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Although the development of information technology is difficult, but the report shows that the choice of widely used automation equipment, the proportion of enterprises from 2013 to 11% in 2015 to 23%. Automotive and electrical machinery companies in the production process using the highest proportion of automation equipment. China's market is highly attractive, many global companies are focused on China's smart equipment market, so the local smart equipment manufacturing enterprises will face more intense global competition.

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"We should see that China's manufacturing industry, in addition to using more automation equipment, is also stepping up its ability to enhance innovation, enhance the use of consumer data to improve product and services, and therefore add a lot of high value-added services. These companies are selling only a single product to consumers, but they have gradually begun to provide other related services.Now many Chinese companies are becoming a comprehensive solution provider, and through product and service model, from the competition stand out to create profits.

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"Emerging technologies such as 3D printing technology, robotics and artificial intelligence are driving subversive innovations to help emerging competitors compete to manufacture," said Gary Coleman, Partner, Senior Partner and Senior Customer Advisor, Deloitte Business Management Consulting. Industry, etc. For example, new manufacturing companies use cloud technology and other new technology to bypass the traditional system to accelerate the speed of communication on the supply chain.China must invest heavily in the development of these technologies, from the current manufacturing industry leading to the development of Global manufacturing industry.

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China Industry 4.0 transformation path

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The report pointed out that in the future, Chinese manufacturing enterprises in the industrial chain with the downstream enterprises to share and the use of consumer, inventory, production, transportation and other information, will encounter the industry chain of intelligent level of uncoordinated challenges. The challenges that China's manufacturing companies will face include the safety of industrial data and industrial systems, as well as the lack of uniform standards for the implementation of information technology.

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In view of this, the Chinese Ministry of Industry is working to optimize the management system, to promote the integration of information technology and industrialization, and improve the implementation and evaluation criteria. According to reports, Deloitte is assisting the Ministry of Industry to develop "two integration management system compliance."

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The report said that China's manufacturing enterprises in the transformation process of the main opportunities include: a large number of Chinese enterprises through the acquisition of mergers and acquisitions to expand the market, access to technology, vertical extension of the industrial chain. The high-speed digital transformation enables Chinese manufacturing companies to take advantage of the Internet platform to upgrade brands, purchases, marketing, services and innovation. In addition, Chinese manufacturers are also trying to build industrial platform, to integrate resources and technology, sharing supply and demand information.

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"Another opportunity relates to the emerging industrial system, which will focus on developing products that are designed and produced on demand, and it is clear that follow-up challenges will include intellectual property and quality control, But the field has an unprecedented market potential, for example, China's smart home market size will reach 43.1 billion yuan in 2015. "Zhang Tianbing added.

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In summing up the challenges and opportunities, the report also proposed the transformation of China's industrial 4.0 path, specifically divided into hardware, software and the Internet three aspects.

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First, hardware / device evolution. China's intelligent manufacturing equipment market started large-scale, into the rapid growth period.

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Second, software / service transformation. China's manufacturing enterprises in the development of information technology at different stages, information technology leader in income creation efficiency and net profit rate were higher than the industry average of 46% and 12%. The degree of informatization restricts the enterprise to the customer's needs. The future of China's manufacturing service role should be from the "quality of those who make up" to the "differentiated competitors" and then "profit creator" transition.

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Third, the Internet turns overtaking. The Internet is in China to set off a subversion of the traditional retail and distribution chain value chain revolution, this value chain revolution has just begun, the future will be extended to the upstream manufacturing links, on-demand production, open supply chain ecosystem will be the future Development trend.


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