Mao Jiye: Digital transformation is the transformation of "people"

Digital transformation is often referred to as the 'top project', why is it called the 'top project'? What are the requirements for the 'top leader'? I have conducted research on some companies in recent years and would like to share with you my observations of the behavior of the "top leaders" in leading digital transformation.
We are now in the era of comprehensive mobile Internet. Mobile Internet redefines the world. Everything is connected, everyone is connected, ideas are connected, and data are connected. For example, China Mobile and Tencent are both companies in the era of mobile Internet. We can see that the market value of these two companies is rising and declining; Obviously, Tencent is the biggest beneficiary of the mobile Internet era. This also indicates that whoever is innovating, who has data, and who is closer to users, is king.
On the one hand, China has the world's largest mobile Internet, the world's largest online shopping group, the world's largest mobile payment group, and the world's most developed consumer Internet, which has created a number of Internet giants with international competitiveness. We have globally leading financial technology, globally leading digital marketing, the most artificial intelligence application scenarios, the largest big data and most active blockchain applications, the most blockchain venture capital, and an innovative ecosystem, all of which are opportunities for innovation.
On the other hand, China's industrial Internet is actually lower than the global average, and the proportion of digital economy in industrial added value is lower than the world average, almost half lower than Germany. This is our future opportunity. What will be the result of the superposition of chemical reaction between our industrial Internet and the world's largest consumer Internet? This is the background of our digital transformation today.

Comparing the digital transformation five years ago with the present, we will find that firstly, there is no doubt about its necessity. Today, everyone believes that digital transformation is an irreversible trend, and many entrepreneurs believe that without transformation, there may not be any opportunities in five years. However, digital transformation is also a marathon project, and companies like Siemens have been continuously transforming for twenty years.
Secondly, every industry has seen the emergence of some industry benchmarks, which have more or less successfully completed digital transformation, and there is no longer a no man's land. Today, we see that companies such as Wumart, Midea, and Galan have unique global innovations, and each industry has its own industry benchmark. Third, every industry has its own enablers for digital transformation, including Alibaba, Tencent, Huawei and other Internet or high-tech enterprises. They use their own cloud computing to carry out digital transformation and empower other industries. Traditional enterprises such as Midea, Haier, Sany Heavy Industry and Youda also export their digital capabilities after their successful transformation, providing a very favorable environment for more enterprises to transform digitally.
Let's take a closer look at the current situation of actual transformation. In McKinsey's global survey, it was found that over 70% of 800 companies have initiated digital transformation, but 71% of them are still in the pilot stage, exploring from scratch. 85% of enterprises have stayed in the pilot program for more than a year, and have been unable to achieve large-scale promotion, without truly generating value, which also indicates its difficulty.

Let me share with you a textbook level digital transformation case - Sany Heavy Industry. The theme of today's lecture is "Digital Leadership of Leaders", and this case is a particularly good portrayal. What role does the "leader" play in digital transformation? I interviewed many 'top leaders' and their answers; determination.
In the process of digital transformation, Sany has invested billions of dollars, and Midea has also invested billions of dollars a year. Such large-scale investments would not have happened if the "top leader" did not have sufficient understanding of digital transformation and did not make the determination.
Before 2018, Liang Wengen made a bold statement, 'Digital transformation of Sany will either capsize or fail.'. When Midea was working on the 632 digital project, the determination to "pave the way through mountains and build bridges through water" also came from the "leader", and this determination must have a very deep understanding of digital transformation.
Making a decision is not enough, successful digital transformation enterprises will form new blueprints and visions. For example, Country Garden hopes to become a technology-based enterprise and use Guangdong's best robot team to create future "unmanned construction sites"; New Hope proposes the concept of "Five New", including new people, new organizations, new technologies, new models, and so on. Any enterprise that performs well in transformation will surely start with a new mission and vision. Now, everyone recognizes the result of digital transformation: all businesses will become technology companies.
Liang Wengen, Chairman of Sany Heavy Industry, proposed the "Three Three": Within five years, the output value will increase from 170 billion yuan to 300 billion yuan; Within five years, the personnel structure will be reduced from 30000 blue collar workers to 3000; Within five years, the number of engineers will increase from 5000 to 30000. In the future, Sany will be a technology-based enterprise, driven by data-driven technology.
1. Starting from learning
The first thing the 'leader' does for this mission vision blueprint is to learn. Liang Wengen pays great attention to the theoretical study of digital transformation, exercising for one hour, working overtime for one hour, and studying for 1.5 hours every day after work. After reading good articles and books, let the executive team learn together. After learning, it is necessary to share. Each person should write 300-500 words of experience and a digital diary. In order to prevent the outsourcing of the executive team and require the secretary to write learning experiences, Liang Wengen requires the executives to speak out of script and rank. The weekly executive lunch meeting features 30 executives reviewing current issues related to digital transformation projects. On Saturdays, it expands to over 80 executives discussing digital transformation issues, and the monthly meeting attracts more attendees.
2. Refactoring the organization
Digital transformation is the transformation of production relations, not just the adoption of technology. It's not just about creating unmanned factories and deploying robots and robotic arms, but also about changing production relations and adjusting organizational structures. Sany Heavy Industry has established an Intelligent Manufacturing Research Institute, which empowers the research centers of various business units' intelligent research institutes through the headquarters' intelligent research institute, and creates a platform based digital architecture.
In fact, many enterprises are like this. After a period of digital transformation, they will find that the industrial Internet is actually a very complex system. Machines, equipment, processes and other aspects are lack of unified standards and highly personalized, requiring teams to sink. Therefore, every business unit and factory needs their own digital transformation team.
3. Human transformation
A company that has successfully transformed has deployed "721" for its R&D engineers. Without adding new personnel, allocate 10% of engineers to specialize in digital transformation, learning new technologies, and artificial intelligence. 20% are seed users, and the remaining 70% still work in their original positions. Make organizational changes from top to bottom, and use changes in people to achieve digital transformation.
数字化转型其实是“人”的转型,最成功的一定是人的转型最彻底的。所以,需要引进大量的新人,三一重工也在大量地引进新人,从GE,埃森哲,西门子,IBM等引进咨询顾问和工业互联网专家。

总结一下,“一把手”要下这么大的决心,一定是从学习开始,然后是组织转型、人的转型、文化转型,而数字化转型最根本是人的转型。
要认识到数字化转型是一项马拉松工程。从学习开始,一切变革从人开始,人的改变,从理念的飞跃开始。有了这个理念才会有决心,才敢大手笔投入,才会有新的使命,才会有新的愿景。
学习触发了认知的改变、愿景蓝图的改变、路径的制定。“一把手”核心转型行为就是打造学习型组织,重构组织,改变人。
领导自己学,然后是高管团队学习,再到中层低层培训、全员学习。学习型组织之后再进行机构调整和人的转型,新人引入、老人的提升、人力资源部出面组织考试和考核、董办跟踪。将原有机构进行结构调整,成立流程再造办公室、再造团队,先优化流程,在顺畅的流程上再做数字化。
信息化和数字化有什么区别?有非常本质的区别。在做信息化、做ERP的时候,是“一把手”工程,“一把手”要支持;但数字化转型仅支持是不够的,“一把手”要引领,甚至要亲力亲为。我看过很多成功的企业家,包括汽车之家、伽蓝、友达等,都是“一把手”将自己平时学习到的好的东西带到企业中,给企业技术提建议,与技术沟通。
有些企业需要“小步快跑”,有些企业是“大步快跑”。
这就是我给大家分享的“一把手”在数字转型中起的作用。简单来说,就是从学习开始,从人的转变开始,从架构调整、文化来做全方位的组织变革。
Information source: Intelligent Manufacturing
