How can a group enterprise promote the digital transformation of its subsidiaries?

Editor: Peng Wenhua

Source: Big Data Architect

Hello Peng friends, I am Lao Peng. Recently, I had an in-depth exchange of ideas on digital transformation with the leaders of several large-scale group information centers, and I was deeply touched.

The situation of these enterprises is different, the business is also very heterogeneous, and the ideas of digital transformation are very different, but there is one amazing consistency, that is, they all need to do the digital transformation evaluation and evaluation work of the second, third, and fourth-level units.

How does the group do digital transformation?

On a global scale, many group parent companies have a common feature, that is, the group headquarters only has functional departments and does not pretend to be actual business.

This has many advantages, such as tax avoidance, convenience for listing, avoidance of related party transactions, risk stripping, and so on. But this also created many problems.

The most common problem is that the subsidiaries and branches have strong business capabilities and do not listen to the parent company. As the old saying goes: children can't help their mothers, that's the phenomenon.

In this way, the functional departments of the parent company will have very weak binding force on the subsidiaries and branches, without the right to direct jurisdiction, and the subsidiaries and branches will deal with it directly in most cases.

With this pattern, how do you say the group promotes digital transformation? Apart from doing top-level design and writing some transformation plans, there is nothing I can do.

Just like a mother who is thousands of miles away, she can only make a phone call and say: son, it’s getting cold, it’s time to wear long johns~~~ My son said “good, good”, but who actually listens to her.

Solution

There is no solution. Since let the son not wear long johns, there are only a few methods:

1. Either let it go, children and grandchildren have their own blessings, and deserve to die from freezing.

2. Either call every day and monitor diligently, there will always be some effect. But both are tired.

3. Either find someone to keep an eye on and tell you the actual situation from time to time.

The first item here is naturally ruled out. The second item requires hardworking people in the group, which is more difficult. Therefore, the third method is generally adopted, which is to find someone to visit regularly and ask, whether to wear long johns or not.

On the group side, regular evaluations are done.

Therefore, the group is very keen on doing various assessments. In the information age, there are informatization assessments, and industrial enterprises will also do quantitative integration assessments. Those with factories will also do lean management and 5S systems. Now they come to DCMM assessments.

In the era of digital transformation, the digital transformation evaluation system is naturally indispensable. Therefore, the promotion of digital transformation evaluation by various group companies is naturally not groundless, but a method inherited in one continuous line.

This routine applies not only to groups, but also to other similar organizations. For example, the State-owned Assets Supervision and Administration Commission has a digital transformation evaluation platform, which is specially used to evaluate the digital transformation process of central enterprises in various countries.

Among them, there are 6 first-level indicators, 26 second-level indicators, 74 third-level indicator systems, and more than 140 collection indicators, which comprehensively evaluate the digital transformation of the branch company far away in the sky.

As for who will perform the evaluation and evaluation operations, it is secondary. There are options for self-assessment, spot checks, and third-party assistance.

Digital Transformation Assessment Essentials

Of course, it doesn't mean that you can simply create an evaluation questionnaire. In the words of the director of a certain group's information center: I don't know how many similar questionnaires have been filled in, and no one can understand them, so they are useless at all.

What's more, after doing it again and again, it becomes formalism in the end, and everyone fills up the score in the end, but it is still useless.

Later, the leader discovered this loophole, and the reason for filling in the next order must be filled in. In the end, the score was between 95-99. The same is over.

Where is the problem? In fact, the result is not in the execution, but in the design.

The core meaning of the "Taguchi method" invented by Dr. Genichi Taguchi of Japan is "the quality of products lies not in inspection, but in design."

The same applies here. Results are designed, not executed. Therefore, the core work of digital transformation assessment and evaluation is not self-assessment, spot check or counseling, but the design of the evaluation index system.

Don't try to just take a set of other people's index system and apply it to your own business. This is as unreliable as picking off someone's shoes on the street and putting them on your own feet.

Each company has different business fields, different informatization development conditions, different process complexity, and different data construction conditions. It cannot be directly applied at all, and must be customized!

To give a simple example:

There is an important indicator for the digital transformation of manufacturing enterprises called "industrial equipment networking rate". How should the standard of this indicator be set?

The answer is that different sectors, different sub-sectors, and different supply chain links have different standards. It is not that the degree of automation is relatively high, and the networking rate of industrial equipment must be high. Most of the equipment in some industries is imported, and the data interface is not open at all. Unless the equipment is replaced, there is no way to improve it.

In addition, there are many advantages of custom indicator system:

1. It can be used as a baton for digital transformation, strengthening where there are deficiencies;

2. It can be used as a detector for digital transformation to really find out where the problem lies and give advice;

3. It can be used as a benchmark for digital transformation, and everyone should look here;

I can list many more benefits if you want. Of course, there are also disadvantages, that is, it costs money!

summary

1. The digital transformation work of the group is not easy to do, and the mother is worried when the children travel a long distance, and the cold weather is worrying about long johns. It is difficult for the parent company to effectively promote the guidance and supervision of the digital transformation of the subsidiaries and branches.

2. Regular evaluation and evaluation work is a good magic weapon for remote command. It can be used as routine work and carried out regularly to grasp the actual progress of subsidiaries and branches.

3. The key point of the digital transformation evaluation work is to formulate a set (or N sets) of evaluation index systems suitable for the actual situation of each business sector, to be able to find out the specific problems of its digital transformation work, and to guide its transformation construction direction.

That's all~~~

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