At the 2021 China (Xi'an) Physical Industry Digital Economy Development Conference held recently, Wang Haibo, Chairman of Net Library Group, one of the organizers of the conference, delivered a keynote speech-Opportunities and Strategies in the Digital Age of Industry. The following is the main content:
In addition to friends from Shaanxi, many government leaders and enterprises from all over the country also came to the scene today. I think there are two aspects that everyone is paying attention to. The first is to pay attention to the ways and methods of the real industry to develop the digital economy Internet. There is another important reason for everyone to come to Xixian New District. Take a look at this magical land, and what good measures for the rapid development of Xixian New District are worth learning together. In today’s meeting, we inadvertently witnessed the digital economy development summit of the real industry. There are many such summits, but the talks are often Internet IT network companies. I heard the stories of Internet companies. How do they grow rapidly? Fast financing, and we are often spectators and bystanders. I hope that today, both the speakers and the listeners present have a common mission, that is, we pay attention to the real economy, how to use industrial big data, how to use the Internet, and the current digital economy policies for common development.
Just now Director Hou Gao Wu Jianling, Director Hou is a senior expert director of the State Council Research Center. Just now, he mentioned that the digital economy is divided into four major areas: digital industrialization, industrial digitalization, digital governance and digital assets. Among these four parts, digital industrialization, digital governance, and digital assets are all dominated by IT network companies, and the core part of most of our physical enterprise manufacturing enterprises lies in the digitalization of the industry. The theme of my speech today is also to promote the high-quality development of the physical industry with industrial digitization.
In such an era when the digital economy is booming, all our physical industries, including local governments, of course, are thinking that the digital economy is not the digital economy of Beijing, Shanghai, Guangzhou and Shenzhen, and the digital economy should not be the digital economy of IT network companies, but us. All businesses. In the course of this kind of enterprise, of course, the first thing to see is what will be the problem.
The Internet has developed for nearly 30 years, but it seems that many physical companies still only do two things, one is online promotion, and the second is to open an online shop. The Internet will follow whichever fire, and I heard that live broadcasts want to do live broadcasts. So it comes to a conclusion that e-commerce has become a traditional industry. There are more than 4,700 Internet industry parks and e-commerce parks in China, all of which are small and young entrepreneurs. After a gust of wind, many entities have paid huge traffic costs, but they still have nothing to do. Looking back, they have to go to the traditional system model to do it. .
We look at the problems we face here. The first is that we cannot afford the traffic cost brought by the big platform. No matter which platform we use to launch live online store sales, we will have to pay a lot of pit fees. The decentralization of the Internet needs to reduce the intermediate links, and suddenly found that the intermediate links brought by large-scale platforms are getting higher and higher, not only have not been removed. In such a process, how to solve the problem of traffic cost is the first problem.
Of course, the second is the data problem. Everyone knows that big data is important, but we find that our own data often becomes the data in other people's databases, not ours. How to continue to obtain industry data may be the second major problem we face.
The third one cannot get out of the predicament of retail e-commerce. For example, to make a machine tool or a carpet. A large number of entity companies I have met say that my product is not suitable for e-commerce. We will think about why the first thought is that it is all e-commerce, the world of the Internet, and the industry. The world of data is infinite. If we all use the Internet and big data today, the first thought would be that when we can open an online store, we will really be abandoned by such a digital economy era.
What we have seen around these three issues, what are we paying attention to. Now that the digital economy is moving towards the real industry, what concerns the real industry, we see three changes.
The first one moved from the consumer Internet to the industrial Internet. The essence of the consumer Internet is traffic, so retail e-commerce, online shopping, news, entertainment, and games are all consumer Internet. The essence of the Industrial Internet is ecology. It means that all manufacturing companies, planting and breeding companies use the Internet for the entire production process, the entire business process, and all five links. It can be called the Industrial Internet, such as the digitization of raw material procurement and the digitization of the production process. It is the Industrial Internet, or smart agriculture. The digitalization of sales channels, the digitalization of the productive service industry, and the digitalization of finance. In this way, the five digitalization processes can be included in the industrial Internet. There is no need to listen to the stories of the rapid outbreak of Internet companies. What we see is the story of rapid growth. In fact There was a real unicorn in 10,000 houses, and most of them returned without success.
The second concern is the shift from retail e-commerce to industrial e-commerce. There are only a few large platforms for retail e-commerce, only three or four, and there may be hundreds of thousands of retail e-commerce companies. Industrial e-commerce can say that for all manufacturing companies, the digitization of your upstream industrial chain and the digitization of the downstream supply chain are all within the scope of industrial e-commerce.
The third is from digital industrialization to industrial digitalization, which is also the theme of my speech today. Digital industrialization is the story of IT network companies, and industrial digitalization is the path that all entities must take. Everyone has heard a saying that all companies are Internet companies, and all industries will be reconstructed by the Internet. This sentence must be familiar to everyone. This process of reconstruction is the process of industrial digitization. What problems should we focus on to solve these three?
The first one talks about problems, the second talks about concerns. These are all to solve the third, what is high-quality development? The high-quality development of an industry, whether it is a company, a government, or high-quality development, I believe that these three must be paid attention to, or even these three points.
The first to fully launch online customized sales. No matter what you do, I make suits. I produce machine tools or grow rice. If your production is in the production process, you know who will buy you downstream. This is a very good business model when customizing you. And this kind of customization does not mean, for example, if this suit is printed with Wang Haibo's name, it is said to be customized. This is definitely not customized. It does not mean that I have an apple orchard with 100 acres that has been customized by 100 city residents, nor is it. Because it is a weak connection, and it is not a strong connection based on big data, and when it is not sustainable, you cannot treat it as a customized sale. We went to Germany for an inspection seven or eight years ago, and we were deeply impressed by how to make a batch of products in production, a batch of raw materials just on the way, and a batch of products have already entered the sales terminal. I believe this kind of customized sales is the ultimate goal for all companies to use industrial digitization.
The second is to obtain income from productive services. This is what IBM gave us to think about, people don't produce anything, but it is still a powerful company in the world. If we planted 10,000 mu of apples, we found that it was not the income from selling apples that made money. The money earned by the production of suits is the income earned by designing and providing solutions. Therefore, productive service is an extremely important indicator to measure the quality of a local economy, and it is also the first high-quality direction that all enterprises need to pursue. You say that my industry is too difficult, but you have to do it. What you have to think about is not to kill the industry that you think is too difficult and do something else. In fact, we all know that it’s not easy to do anything. Every industry thinks it’s own. Business is not good. What we just want to think about is how to use the industrial Internet to realize service income based on our own business.
The third is finance. Do you have high profits and can you continue to supply, otherwise you will not be able to resist the economic cycle, this year is good, next year is not good, or good for three years and bad for one year, three years of earnings will be lost in one year. It is because when you were doing well in the past, that data asset in your digital economy was not used at all, so you have been doing it for ten years and twenty years for nothing. The valuations of those startups on the Internet seem to be as high and high as they have been in a few years. You actually get the real data, so why can't you get the valuation instead. So it is very important that you can get financial credit. I make suits. I bought fabrics and buttons. At this time, it is very easy for you to get a loan. How to achieve high-quality development and customized sales in this process are the three important high-quality developments we have summarized over the years. Sign.
In this process, what did the network library do? The network library is promoting the high-quality development of the physical industry with industrial digitization. What path did we take and what did we do? For today’s meeting, because most of my meetings in the past were based on peers and engaged in the Internet. Everyone would say whatever they wanted, what’s new, and I’m embarrassed to come on stage if I didn’t talk about new concepts or new terms.
But in fact, when we look back, we need to return to the essence of business for today’s physical industry, manufacturing and planting and breeding enterprises. We see that the network database is based on this logic. We have designed three paths, which are also We have been advancing for the past ten years. The first is to build a single-product industry Internet platform based on advantageous regions. This kind of product platform, for example, Hickory is famous. We hope to build a Chinese walnut industry network based on Sanyang. Of course, this is to achieve customized sales of Sanyang's local walnuts. More importantly, we hope that all walnuts in China can use this platform. As such a walnut industry network is not only the concept of retail e-commerce, but more importantly, it is the carrier of industrial digitization, so that all walnut industries can be operated offline and expressed online. You can display all your data assets in the process of making walnuts through the walnut industry network. Of course not only do walnuts, we are in Shaanxi, and we are currently building a number, such as the carton industry network and the smart lock industry network. We not only see the sale of locks, but more importantly, those who can purchase smart locks will purchase various buildings. Equipment, decoration materials. In this sense, the purpose of building a heavily vertical intelligent lock-in industry network platform is to obtain a huge data portal for decoration materials, or data portals for the home furnishing industry.
We have been on the integrated platform since its establishment in 1999 to 13 years ago, and we benchmarked with Alibaba 1688 to provide information matching services. After 13 years, we will build a vertical platform with entity companies in various single product areas based on actual conditions. For example, we and Mr. Rong have jointly established the China Apple Juice Industry Network. What we want to do is not only sell Rong’s apple juice, we are more willing to use Xixian New District, a treasured land, based in Xixian New District, to transform China’s apple juice industry from From packaging operations to data assetization to realize real apple juice online industrial parks, or apple juice’s Alibaba and JD.com. The first thing we did in this process was to build 352 vertical industry Internet platforms to serve 352 single product areas. Each single product area would unite with a leading company. This is the second measure to combine industrial energy advantage companies. . We build a cement industry network and unite Jidong Cement in Tangshan. In the world of the Internet, because of its infinite size, it can be infinitely wide. Many physical industries see that it is easy to build a website on the Internet, and they have infinite dreams. They are all paying tuition fees. The reason for paying tuition fees is that you cannot use a single product and upstream and downstream links. , So the difference between informatization and digitalization is that one is a strong connection and the other is a weak connection.
We also did the third thing. Is it possible to have a network library for this thing? No, it definitely won't work. We are not building a platform for a company, but serving a company based on a single product to jointly serve the entire industry. This is an important charm of the industrial Internet or industrial digitization.
In the Internet world, everyone serves the same field together, but you have become a wolf. The Internet world will always be fast ants eating slow ants. Just like everyone participating in this event this morning, because you want to be fast ants, you will first Take a step. In these three paths, build platforms and unite superior companies to build ecological services. What is the platform for? The first one to solve the problem of production efficiency. The digitization of production efficiency is called the Industrial Internet for industrial products, and it is understood as smart agriculture for agricultural products.
Hearing about artificial intelligence and the industrial Internet every day, what exactly is it? I think it can be summed up with two key words. The first blockchain technology. Now all products as long as you use blockchain technology, you can tell the world that this is my home. I can guarantee its quality or guarantee it. Value for money. There is a difference between my 5 yuan a pound apple and 10 yuan apple. It should be a good thing that is standardized. China faces the main problem. Why should different kinds of tea cost 100 yuan per catty and 1,000 yuan per catty? The second is the sensor, which is either the dialogue between the machine and the raw material, the sensor is placed on the raw material, or the dialogue between the machine and the machine, so this is the first to solve the production efficiency, this is the first measure of the digitalization of the industry.
The second order-based sales, online and supply chain, is based on big data analysis. Why do you emphasize big data so much? If you don’t have big data at hand, you will always be someone else’s food and other people’s data. When you can’t analyze the past, present and future sales conditions, is this difficult? I can’t do it. No, every vertical platform has the opportunity to master industry data. The third supply chain finance, to obtain the credit of supply chain finance, is online supply chain finance.
Two suggestions are given, the first is to entity companies, and the second is to local governments. For physical companies, most of the physical industries today are manufacturing industries. Before participating in the conference, I said that if there are fewer Internet companies, because Internet companies hold such meetings every day, we are more willing to think about physical companies. Think about becoming the leader of the single product industry, such as the leader of the China Apple Juice Industry Network. If you also make apple juice, you can become a participant, but you must never become a bystander.
The second one focuses on a core product or service in the entire network and becomes a data portal product. Regardless of your industry, you target a single product, and you don’t care how many styles your single product has. Finding one of them can really make use of the entire network to promote it to the extreme.
The third is to fully carry out online procurement. This is very important. If you say that the first two points are a bit difficult, let me say the simple one, that is, raw material procurement, or semi-finished product procurement. After you digitize raw material procurement, you can bring financial credit and realize the first step of digitization. A company must first start with buying, and can only produce after buying raw materials. If you digitize your buying process, you can get a very good financial loan credit. So we think that the three simple suggestions are worthy of consideration and exploration.
Because today I also know that many local government leaders have come to pay attention to the digital economy and the model of Xixian New District. Here we also make three suggestions.
First, in advantageous industrial fields, seize the industrial Internet platform and create a platform economy. The platform economy is really not the platform economy of Beijing, Hangzhou and Shenzhen. The comprehensive consumer Internet platform, which belongs to the big city, has been robbed. Of course, there is an Alibaba in Hangzhou. This is accidental. The accident of history is of course inevitable. It was caused. It may also be in Wuxi or Suzhou at that time. But because there is an Alibaba that has changed the entire city of Hangzhou, because he is doing consumer Internet, it is a big platform. Industrial Internet, all places, whether it is Xinjiang or Beijing, whether it is Hainan or Heilongjiang, are on the same starting line, we can understand that the platform winners have the world.
Second, create a physical industry and develop a headquarters park for digital applications. We united with Xixian New District in Xixian New District, and received Xixian New District, especially Director Chen, who has always supported us. We have built the headquarters base of Xi’an Industrial Internet in Xixian New District. This base is not for IT network companies, not for IT network companies. Start-up companies use it as a base camp for all entity companies to develop platform economy and digitalization. We are right next to the 4C11 floor. After the meeting, you are welcome to visit the network library.
Third, local governments should set up investment funds for the industrial digital economy, not digital economy investment funds. Many places have investment economies, but they don’t invest in the digital economy. When investing in the digital economy, they often invest in IT network companies and not in the physical industry. We really believe that local governments not only support the construction of factories and purchase equipment when supporting the physical industry, but also To support his investment and investment in the digital economy. I hope that Director Chen can consider giving some more support to President Rong. These are our three suggestions to local governments.
In our case, for example, to do Apple’s industrial network, or to do chemical fiber cloth industrial network, our goal is to truly promote the digital application of the whole industry, but no matter how big this platform is, every platform will definitely find a partner. Become a true partner and develop together. So, if you are interested in the industry digital and single product platform, we can communicate together.
We have built seven parks. Xi'an is the first batch of headquarters parks. Today this conference is the first physical industry conference of all provinces across the country. There are more than 270 subsidiaries in the network library to serve every industry platform across the country, and thousands of people are doing this together. It also integrates more than 19 million corporate data and unites more than 600 various service partners to provide common services. Why is the network database? I said that we have 19 million data and more than 600 service providers since its establishment in 1999 and 22 years now, including the Urban and Rural Coordination Center of the Central Propaganda Department and the National Agricultural and Rural Development Alliance. I got the Apple Industry Network and the Stainless Steel Industry Network. They only focused on a single product. They didn't do much, but they represented the future direction. In this process, we also sincerely wish that Shaanxi entrepreneurs and local governments will become China's pioneers in the digitalization of industries and the use of digital economy in the real economy, and become the first batch of enterprises in Shaanxi to receive the dividends of industrial digital economy. Thank you all.
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