In September 2020, the State-owned Assets Supervision and Administration Commission issued the "Notice on Accelerating the Digital Transformation of State-owned Enterprises" (hereinafter referred to as the "Notice"). The "Notice" pointed out that "to implement the digital transformation leading responsibility system, the main responsible comrades of enterprises should attach great importance to Personally study, make overall arrangements, and clarify the responsibility of designated persons in the leadership team, especially to "make a digital transformation plan and incorporate it into the company's annual work plan", and "establish the relationship with the company's operating income, operating costs, number of employees, industry characteristics, digital level, etc. A matching special fund investment mechanism for digital transformation".
The "Notice" can be said to be the final word for bringing "digital transformation" into the "top-level project", especially the "digital transformation top-level project" as the focus of the work of central enterprises and state-owned enterprises. The blueprint is done to the end". If before this, many companies still have concerns about digital transformation, then central enterprises and state-owned enterprises will take concrete actions to firmly promote the digital transformation process of the whole society and accelerate the development of the digital economy.
However, how should the digital transformation turn? How is this round of digital transformation different from the previous multiple digital transformations? The "Notice" specifically pointed out: It is necessary to explore the construction of new IT architecture models such as "data center" and "business center" that adapt to the business characteristics and development needs of enterprises, build agile, efficient and reusable new-generation digital technology infrastructure, and accelerate the formation The group-level digital technology empowerment platform improves the independent research and development level of core architecture, and provides efficient data and integrated service support for business digital innovation.
In short, if e-commerce, cloud computing, big data and other technologies that emerged in the past few years are the basic technologies of this round of digital transformation, then "data center" and "business center" are new types of this round of digital transformation. IT architecture model, and "agile, efficient and reusable" is the starting point and foothold of the "middle stage". This is not only an IT architecture model, but also a new organizational model for enterprises. At the "2020 Cloud Migration Digital Innovation Annual Conference" on September 25, 2020, "China-Taiwan Practice-Digital Transformation Methodology and Solutions" was published, pointing out the digital transformation methodology of digital mid-Taiwan generals.
Digitization: Entering the "Post Wave" Era
"The fundamental change brought about by the digitalization of enterprises is that all business value activities of enterprises turn to customer-centric, improve the products and service capabilities of enterprises, and thus drive the optimization of enterprise internal processes. This is a process from outside to inside. Informationization It is to build an information system based on the internal value chain of the enterprise to achieve the purpose of reducing costs and increasing efficiency. Customers are only one link in the entire value chain. Digitization is an inevitable product of the post-information age." This is the opening of the book "China-Taiwan Practice". The relationship between the digital "back wave" and the informatization "front wave".
(Bao Zhigang, founder and CEO of Yunxun Technology)
Zhigang Bao, founder and CEO of Yunyu Technology, said at the 2020 Yunyu Digital Innovation Annual Conference that he has met many entrepreneurs after the epidemic, and everyone’s common feeling is the anxiety about the digital economy era. Many companies originally had only one concept when talking about digital transformation, but after the epidemic, digitalization must be listed as a priority for corporate strategy. In the digitalization strategy of enterprises, marketing digitalization has become the top priority of the digital transformation of enterprises. However, digital marketing is not about using IT to build a marketing system in the original information age. Instead, in the digital age, it is based on the data and business of the entire enterprise. It is the "customer-centric" overview.
A typical example is Liangpin Store. Bao Zhigang's comment on the digitalization of Liangpin Store is "repair the roof when the sun is shining." In June 2019, BESTORE cooperated with Yunxun Technology to create a mid-office practice in the food industry. In the first half of 2019, BESTORE had already deployed more than 2,300 offline stores, and platform e-commerce accounted for more than 40%. There were also omni-channel methods of multiple marketing channels such as APP, Mini Programs, and live broadcasts. A separate system is built for each marketing channel. Each system is not connected, and members must log in through different channels. The membership rights, grades, purchase frequency, and customer unit prices of each marketing channel are very different. In the member business of Immigration Technology's cooperation, the middle and Taiwan have opened up member data from the whole enterprise level, thus enabling subsequent marketing channels and marketing systems, such as self-operated food delivery during the epidemic period and third-party food delivery such as Meituan. The direct result is that during the 2020 epidemic, all of the more than 2,300 stores of the Best Store were closed, but the income of the Best Store did not fall but increased. The revenue in the first quarter increased by 4.16%, and it became A after the "cloud listing" in February. A beautiful landscape of the stock market.
The practice of liangpin shop's digital middle station fully demonstrates the importance of digital "back wave" and the value of digital middle station to digital "back wave. The book "Practice in China and Taiwan" points out: Digital China and Taiwan provide the ability to use technology to solve unknown problems in the business field in the era of digital economy, thereby helping enterprises to carry out digital innovation.
Best shop: the digital "back wave"
"Why is liangpin store digitalized? It is also forced by the industry." Zhou Shixiong, vice president of liangpin store, bluntly stated the company's digital road at the 2020 Cloud Migration Digital Innovation Annual Conference. Generally speaking, the casual snack industry is a "small business", and the small items are very cheap. For example, the melon seed pouch is only a few yuan to a dozen yuan, and the customer unit price of casual snacks is only 50-60 to 70-80 yuan. On the whole, the scale of the company is not large, and the top businesses are only in the tens of billions, and snacks are still in non-rigid demand.
(Zhou Shixiong, Vice President of Liangpin Shop)
Zhou Shixiong emphasized that the casual snack industry is small but complex. The complication is: first, there are many products, more than 1,000 SKUs, and more than 300 products are new every year; there are many channels, basically covering all channels, once a channel is not covered, sales opportunities will be lost, because snacks are triggered by the scene Purchase-Consumers may buy when they see it, or they may not buy when they don’t see it. Therefore, it belongs to the category triggered by the scene; there are many users, and Liangpin Store currently has more than 80 million members, but China has more than one billion people. They are all potential customers; there are many links, from brand research and development to supply chain, etc.; there are many competitors. Of course, the increase in store rents and employee wages during the epidemic, etc., have brought requirements for the improvement of corporate efficiency. In general, these are forcing companies to be highly digital, otherwise they cannot compete and develop.
As early as 2013, BESTORE cooperated with a foreign mainstream ERP system supplier to build an information system. The company's net profit that year was less than 300 million yuan, so it invested 160 million yuan in one go to upgrade the entire information system. . The IT team of Liangpinpu has also self-developed order processing system, inventory management system and merchandise management system to realize the digitization of daily operations. In the past two years, with the development of new retail, there are more and more online channels, and it is necessary to open up products, prices, marketing, supply chain and other links to consumers, but the existing ERP system cannot support new business forms. For example, the CRM system in the ERP system is not integrated with Ali and third-party systems at all, nor can it carry massive amounts of data. Especially during holidays, one activity can bring millions of concurrent requests, and multiple data associations will cause the system to be busy, The inability to meet the needs of marketing activities in new scenarios such as spikes and panic purchases has seriously hindered the business.
The old system restricts the future development of BESTORE. In terms of sales of nearly 10 billion at the time, BESTORE will cost 20 billion yuan, 30 billion yuan after listing, and even higher sales in the future. After repeated internal discussions, BESTORE found that the root problem of the IT system was not the performance of the system, but the problem with the "foundation." "Single access", the structure of the problem is the primary problem of the Best Store. Before choosing Zhongtai, Liangpin Store also hesitated for a long time. After several rounds of discussions with the boss, he finally decided to do it.
The business center stage of the cooperation between Liangpinpu and Yunxi Technology is divided into two stages: the first stage is planning, and the second stage is "changing the engine during flight" to realize the switch between the new and the old system, and replace it with the center stage. Membership and marketing functions in the original ERP. It is worth mentioning that the teams of both parties adopted the model of “co-creation and site development” during the implementation of the project. The team of Yunxun Technology settled in Liangpin Shop to conduct a comprehensive investigation on the pain points and business processes of the project. The implementation process is carried out by a professional team led by the project managers of both parties. When ERP was implemented before, people from other companies and people from Best Stores did it step-by-step, while the quality of both parties' inputs was very high for the Zhongtai project.
The Liangpinpu Zhongtai project adopts an iterative model, which can not only ensure the rapid development of the system, but also quickly obtain usage evaluation after going online, which is convenient for iterative optimization. During the implementation process, the project team also found that the original demand survey was far from enough. The business department manager said that he did not foresee the project implementation investment will be so large, and not only based on current pain points but also future business planning. Therefore, the two parties are highly collaborative and through continuous iteration, many new requirements have been discovered. After the successful launch of the business platform, the original CRM function was replaced, and the massive membership data of the Tmall platform was opened up to complete the data integration of 80 million members.
Zhou Shixiong introduced that this year, on the basis of the business center, Liangpin Shop will continue to cooperate with Yunmi Technology in the data center. Liangpinpu’s data platform construction, including data warehouse and front-end data display, has been completed before the data center stage, and the data center stage is different from the data warehouse. The data warehouse is more to centralize the data to serve the BI system. The data center first integrates all the company's data, cleans, organizes, labels and standardizes the data according to the business, and treats the data as assets for a more scientific and refined way Operation; secondly, support various applications on it through the data center, including data intelligent analysis, business decision analysis reports and reports, etc.; thirdly, data-driven operations around user groups, such as based on consumers’ recent visits Stores, purchasing preferences, etc. continue to dynamically calculate consumer portraits, or integrate with Ali, Tencent, Douyin, and Kuaishou user ecosystems to form a precise closed loop of users. Later, you can also conduct “people, goods, market "AI operations, etc." The data center is equivalent to technology hosting, allowing Best Store to focus on the construction of upper-level business applications; the data center can also provide good elastic computing capabilities after being deployed on the cloud.
Digital Middle Office: Digital Transformation Methodology
"Digital middle station is a system and mechanism that turns the sleeping data of an enterprise into a data asset, continuously uses data, generates intelligence, and serves the business, thereby realizing the value of data." This is the summary of the "China Station Practice". The conclusion drawn after the digital mid-office construction practice of hundreds of enterprises. The middle station is the key support system for the digital transformation of enterprises. It centralizes, platform, share, and synergize the business capabilities of enterprises and data services to help enterprises reduce trial and error costs, improve innovation efficiency, and achieve performance through data-driven operations Growth, towards the success of digital transformation.
As the first technology company to enter the digital middle stage track, Yunxun Technology launched digital double middle stage and front-end digital marketing applications including business middle stage and data middle stage in 2018. Yunxun Technology believes that digital middle stations include business middle stations and data middle stations, and the construction of digital middle stations is mainly based on the linkage construction of double middle stations.
In the past, traditional business systems were implemented through processes such as strategic planning, business demonstration, blueprint planning, system implementation, and business operations. Among them, data problems were often exposed during business operations, so companies usually passively built data centers. The linkage construction of dual-center stations refers to connecting the business department and the data department in the planning stage, planning the "data empowerment point" while planning the business, and the data empowerment point is no longer traditional. Reporting functions are the ability to link with the business and prompt the business to take action and play the value of data.
Yunxun Technology believes that the construction of a data center does not advocate the method of "first building a'data lake' to collect all the data of the enterprise, and then passively receiving the data application requirements of the business side". Because only the data lake is built in the early stage but the business cannot be empowered, the value of the data cannot be verified, but the synchronous construction of the business platform and the data center can be developed around the business innovation points that the business itself needs to achieve. The construction of the dual-centered platform for business and data. Since the business is the driving force for the need, each team has a common goal. The company can use business innovation as a clue to promote the business department, operation department, and data department to design and plan the middle platform together , To maximize the value of data, link with business, and better realize business innovation.
Yunxun Technology also believes that the construction of China and Taiwan can promote enterprises to build China and Taiwan organizations and promote specialized division of labor; and the establishment of China and Taiwan organizations can better guarantee the construction and development of the China and Taiwan system. The Zhongtai system and the Zhongtai organization promote each other, forming a virtuous circle. Alibaba is one of the firm promoters of the Chinese-Taiwanization organization. Tencent is also embracing the industrial Internet on the "One Tencent" platform, while JD.com also adopts an organizational structure of "front-end + middle-end + back-end", and traditional companies are also following up The construction of Taiwan Chemical Organization.
Liangpinshop adjusted its organizational structure in 2015, simplifying the organizational structure into three flat layers-market management layer, resource capacity layer, and planning strategy layer to improve decision-making efficiency; in 2016, it also tried internal group management. Cancel the branch level, directly establish the connection between the headquarters and the smallest business unit, and form an agile response mechanism. These have laid a solid foundation for the successful initiation of the construction of the Zhongtai system behind Best Shop.
In addition to mid-stage organizations, Sun Pengbo, the operating president of 3SBio (China) Health Industry Co., Ltd., which has just cooperated with Yunmi Technology, emphasized at the 2020 Yunmi Digital Innovation Annual Conference that digitalization itself is a process, which is a company from top to bottom, From the inside to the outside, from the point to the surface, the effect lies in the determination of the corporate management, that is, the unity of thinking, the unity of behavior, and the unity of habits, and then achieve business migration, and then transform it into market efficiency. The whole process must be consistent. Only sex can bring consistency of capabilities and achieve the success of digital transformation.
At the 2020 Cloud Migration Digital Innovation Annual Conference, Cloud Migration Technology's digital mid-station product matrix has been fully upgraded. The core capabilities of the digital mid-station are standardization, platformization, and collaboration, providing enterprises with out-of-the-box operations. The system, as well as a wealth of configurable and orchestrable business and data capabilities, help enterprises restructure and transform at full speed. On the basis of the increasingly mature digital middle station product and service matrix of Yunmi Technology, more and more companies have joined the digital transformation camp based on the digital middle station as the methodology.
In summary: Entering the second half of 2020, the digital middle station is no longer a concept for the outside world when Ali first proposed "large middle station and small front desk" five years ago. Digital middle-office software and operation service providers represented by Yunxue Technology have launched two books, "China-Taiwan Strategy" and "China-Taiwan Practice", which summarize in detail the theories and practices of Chinese and Taiwanese enterprises facing traditional enterprises. The proposed "software-defined middle station" also laid a technical theoretical foundation for the sustainable development of enterprise digital middle stations. The practice of digital middle stations of nearly a hundred enterprises proved the feasibility of digital middle stations to the market. As state-owned enterprises and state-owned enterprises set the tune of digital transformation represented by digital middle stations as the top projects, more companies will join the practice of digital middle stations, injecting stronger momentum into China's digital economy! (Text/Ningchuan)