Where is the way out for traditional manufacturing industry? Ice breaking upgrade has four major elements

Guide:The Chinese economy may be in a state of stagnation for a long timeThe bottom of the "L" shape is not a typical bottom hover, it is a thorough structural change. What kind of enterprise can seize the opportunity in this kind of big waves？Traditional enterprises can only stand invincible by leveraging the power of technological progress and their own value advantages.

With changes in consumer channels, upgrading of consumer quality, and changes in consumer habits, enterprises are increasingly relying on traditional business models to maintain their strength. We have heard and seen too much inventory backlog, discounted sales, and retail mall closures. At the same time, a stark contrast is the situation of strong purchasing power consumers buying overseas.  

1、 The overall pattern of China's economic operation is roughly as follows: various production and consumption service sectors closely related to the daily lives of the general public are basically in a serious state of overcapacity and fierce competition; Under the strong support and promotion of the government, innovative and technological enterprises are constantly trying and making mistakes, and constantly emerging new trends.

In recent years, the rapid development of virtual economy, including Internet e-commerce, Internet finance, Internet services, has eroded the industries closely related to people's clothing, food, housing and transportation; At present, it is developing towards more specialized and in-depth fields.

However, the traditional manufacturing industry is squeezed by the Internet and its own costs, overcapacity, etc. The traditional competition model based on the scale cost effect can no longer meet the needs of the market. Enterprises with strong competitiveness in the future should at least have the following qualities: open integration and integration capabilities become the most important enterprise characteristics. Traditional enterprises can only hope to gain new competitive advantages if they are highly integrated with innovation, science and technology forms. The core is to integrate front-end consumers and back-end manufacturers with the platform mode or participation platform mode, optimize enterprise manufacturing resources with the technical capabilities of intelligent manufacturing, and provide services to users.

2、 Secondly, the enterprise itself must possess the ability to create value, and the most important ones are product research and development capability, operational innovation capability, and talent integration capability

China and Germany are both countries with manufacturing as their pillar industry, and the core gap lies in their product research and development capabilities. China's reverse research methodology, which has been formed for many years, has led to incomplete understanding of the knowledge system involved. Research and development should grasp the evolution laws of the entire product lifecycleKNOW HOW， We need to define and standardize the system architecture, standard framework, and scalability of the product's functions, processes, and manufacturing characteristics. However, we only know one and do not know the other, which leads to weak flexibility in product research and development, or very high research and development costs and expenses; Secondly, there is the ability for operational innovation, and most importantly, it relies on technological progress to inject new impetus into the operational model. This technological advancement encompasses advanced manufacturing technology, advanced management technology, and advanced business models.

I think that industryThe technological progress brought by 4.0 intelligent manufacturing is an excellent opportunity for the manufacturing industry. When God closes a door for us, he will definitely open a window for us. With the advanced manufacturing technology brought by information technology and the Internet of Things, the low-cost connection capability of the virtual digital world will be extended to the low-cost connection of human, machine, material, law, and environmental production factors in the real physical world. This will greatly improve the cost and flexibility of the manufacturing industry's production drive. Germany's estimate is that there will be a 40% release of production efficiency, and the environmental utilization efficiency will increase by 50%. This is exactly the direction that China's manufacturing industry should take. In times of crisis, there will always be vibrant seedlings searching for suitable conditions for survival and development. You have seen it. Is that okay?

 Once again, it is advanced management technology, and the management structure and mode of the enterprise should be matched with this manufacturing method. Imagine that the virtual world has a strong flattened architecture, making the whole world a global village. Why can't our enterprise become a transparent and information equal operating surface, where customer information, product information, and manufacturing information interact in real-time on this plane, driving business value-added and transformation in the shortest and most reliable way? Can our agile response ability and efficiency not be enhanced?

So, on this operational plane, the logic of our organizational design, job design, performance evaluation and incentives will all change, and we need to transform it into a flat network structure that horizontally breaks department boundaries and vertically breaks job boundaries, with customer value realization as the common evaluation standard.

 Finally, there is innovation in business models. Traditional business models in the manufacturing industry are not good at directly connecting with consumers. We only focus on manufacturing, controlling our own costs and quality, and earning money for product cost differences.

This is because in the original environment, due to regional barriers and incorrect information transmission, our response speed cannot keep up. In fact, there is a firewall between the manufacturing industry and consumers, and both sides need to rely on a buffer zone to avoid possible problems, such as the contradiction between product design and mass production through prediction and forecasting, and the contradiction between the demand for high-quality, differentiated, and fast delivery from users and the low quality and homogenization brought about by vicious competition. This is in line with the rapidly growing middle class in ChinaThe demand for post-80s and post-90s generations to become the main consumers is deviating, so there are tens of thousands of overseas Taobao armies emerging in China. So much so that Lenovo President Yang Yuanqing sighed, why is Lenovo's phone so much cheaper than Apple's phone, but no one will buy it? Fortunately, Huawei has emerged as a rising star and filled the gap of domestic mobile phones with high-quality research and manufacturing. These are all things we need to learn from.

So how to establish the design ability to interact with users, the ability to respond in real-time to user specific needs, and build a closer relationship with usersThe C2B business model will become a new trend and a necessary path.

In fact, there are many segmented markets and services in the vast global consumer market that are worth exploring and seizing. Opportunities are always left for enterprises and entrepreneurs who have a keen sense of smell and accurate judgment of their own and environmental advantages and disadvantages. We believe that in this era of great changes, many of our traditional manufacturing industries will emerge from the ashes, gain new life, and make significant progress.

Author: Wang Ping, Senior Partner of AiBorui Group and Technical Partner of Huizhi Ruida Company