[Digital Transformation]The “Dilemma” of Digital Transformation


What are the problems faced by enterprises in transition?

The world economy has been faltering since before the coronavirus. In fact, the new crown is only one of the predicaments that people have experienced more directly. The stagnation of the US economy is obvious, showing a trend of low economic growth rate and low employment rate. In fact, Chinese enterprises are also facing a complex domestic and foreign environment and moving forward with a heavy burden.

We who are usually doing investment and financial management will find that domestic and foreign interest rates have almost hit a record low, but many companies with huge cash reserves are still reluctant to invest in those legendary “innovations” and are cautious about “digital transformation”. In particular, many private enterprises generally have a wait-and-see mentality and a job-handling mentality. Even some informatization leaders don’t understand why they want to transform? With such a large volume of business, we are all too busy… Don’t make a mess…

 So, what is the reason for this situation?

Looking at the macroeconomic level with economic development theory is like looking at the big picture from an altitude of 30,000 feet. We can indeed easily find the link between digital innovation and market volatility. However, to understand the reasons for market volatility and the real drivers of economic growth, it is necessary to go inside the enterprise and explore the thinking and understanding of digital transformation of enterprise executives, because they are the real people at the helm of investment and management of digital innovation, not the usual The “direct customers” contacted by the classmates of Party B.

 How do the trendsetters in these markets view digital transformation?

Many of them (except for large central enterprises, ministries and commission-level organizations, etc., for them are necessary tasks to ensure the realization of national strategies) are actually looking at “digital transformation” cautiously or even conservatively, and do not dare to invest heavily in what they think is high Risky digital innovation activities are on the way, and some companies (not to be named) that have made great efforts to build a data middle platform have declared project failures. This proves that the concerns of these senior trendsetters are not unfounded.

We always discuss why it is so difficult for Party B to be a digitally transformed business? Why are the informatization departments of many enterprises having set up special organizations, but it is still difficult to promote the digital transformation of enterprises? In fact, people should reflect on how the company executives view “digital transformation”. They “promised” to support you in setting up a promotion organization. Do they really want to promote it? Still trying? what is this else? too young too simple too naive…

We do not deny that many companies have upgraded their business capabilities due to their digital capabilities. Whether it is e-commerce retailing, some ambitious real estate companies, or even home furnishing companies, the development of online business is driving the change and strengthening of the business model. Precipitation and use of data, and the more you use data, the more you use it… Accumulation to a certain extent, it is a sin if you don’t use it… You will know when you use it up.

However, when you talk to most enterprises about digital transformation, the bosses will feel extremely empty, because many people are still thinking about the standardization of processes such as ERPMESPLM, the delivery of information-assisted business on schedule, stability, efficiency, and durability.

In fact, the focus of digital transformation is on large central enterprises and ministries and commissions. The upgrading of their capabilities will bring benefits to the vast number of enterprises. Have you ever found that the customers who do digital transformation business are often large central enterprises… So Party B also recruits people all the time. It is very clear that there must be experience in central enterprises.

However, there is not much room for maneuvering within other companies. You may ask your friends who run companies around you how they are trying to “digitize transformation”? Most of the answers are that their own transformation can’t be done, the thunder is heavy and the rain is small, but due to the epidemic and other reasons, all the actions that can be carried out online have been moved online, and the form has changed. The cost has been reduced, the interaction efficiency has been improved, and the communication level has become higher, but the overall business volume has not grown much or even declined. On the contrary, the business scope of some enterprises has become smaller after this wave, and the capital risk has become larger…

As mentioned above, different types of digital innovation have different meanings for enterprises, and their impact will be very different. However, many enterprises use the so-called Internet best practices in the industry. , the same imperfect standard that has not been repeatedly demonstrated by multiple samples to copy, build, and subvert the original model for others. The project of the previous system is relatively not difficult, and it is very harmful to oneself. Give up illusion and return to value.

 So what are the scarce resources that create value?

Kielder said: Capital is a “scarce resource”, and people should treat capital kindly at all costs. It is undeniable that capital is still an important resource today, but we must also see that American companies have a cash reserve of 1.6 trillion US dollars… The power to quickly dilute your capital, these are uncontrollable factors for companies. To maximize the return on this cash, companies must adjust their perception of what is a scarce resource.

Personally, cash is important, but compared with cash, the ability to attract and effectively allocate talents and then seize development opportunities is the real scarce resource today. It is more important to attract a lot of talented people to do business with you freely. Yes, it turns out that Jack Ma and Wang Xing have done a good job in this regard:

Jack Ma later obtained the forward-looking consensus between them with VCs and the investors trust him in his excellent team configuration. A typical player who works hard and then uses capital. For enterprises, don’t think that money means everything, it may become a bubble soon…

In the past, capital played a leading role in industrial and commercial activities. For example, Vanderbilt and Morgan integrated railway transportation, steel industry and electric power industry through capital, and mastered the economic lifeline of the United States. But today’s most valuable and value-creating companies are asset-light companies. The value of a company is reflected in the people it owns, whether it’s Coca-Cola, Procter & Gamble, or Microsoft. Even if all their buildings and factories are burned down, as long as people still Here, we will make a comeback soon! ! ! Therefore, talents are becoming more and more important to enterprises and economic development.

With the continuous work of the money printing machine, capital is becoming more and more flooded, so its importance is gradually declining. For example, in the past ten years, the money supply in China has increased from more than 30 trillion to more than 140 trillion. Capital, as a kind of Resources, when their scarcity is gradually lost, its dominant position in economic activities will also be gradually lost, and real talents in business have been scarce since ancient times! Banknotes are nothing more than monetary figures that can be used.

Of course, we cannot unilaterally deny the meaning of capital. We must look at the problem in a comprehensive way. People and companies are actually a contractual relationship, and capital and companies are also a contractual relationship. It obtains benefits through equity, and this benefit is reflected in dividends or corporate value. go up. Therefore, the relationship between people, enterprises and capital in terms of interests is no longer a zero-sum game, but a relationship of common interests that distribute increments in accordance with the contract after jointly making the pie bigger. You can’t just focus on capital but not people, and you can’t just focus on people and forget to work on capital… And you can’t just focus on trumped-up concepts, and put all kinds of talents who really help you turn around and those who “regard no profit as a sin” Capital is put aside.

To sum up, we must deeply understand and practice the “digital transformation” proposed by the state, and do not engage in formalism and nihilism. At the same time, enterprises themselves urgently need to update, explore and practice the following:

How to adapt to the current changing market environment, the harm caused by the epidemic, and the policy orientation?

How to re-evaluate the investment direction of your own company?

What is the real rare resource?

How to redefine value judgments?

How to realize value? …


What are the problems faced by enterprises in transition?

The world economy has been faltering since before the coronavirus. In fact, the new crown is only one of the predicaments that people have experienced more directly. The stagnation of the US economy is obvious, showing a trend of low economic growth rate and low employment rate. In fact, Chinese enterprises are also facing a complex domestic and foreign environment and moving forward with a heavy burden.

We who are usually doing investment and financial management will find that domestic and foreign interest rates have almost hit a record low, but many companies with huge cash reserves are still reluctant to invest in those legendary “innovations” and are cautious about “digital transformation”. In particular, many private enterprises generally have a wait-and-see mentality and a job-handling mentality. Even some informatization leaders don’t understand why they want to transform? With such a large volume of business, we are all too busy… Don’t make a mess…

 So, what is the reason for this situation?

Looking at the macroeconomic level with economic development theory is like looking at the big picture from an altitude of 30,000 feet. We can indeed easily find the link between digital innovation and market volatility. However, to understand the reasons for market volatility and the real drivers of economic growth, it is necessary to go inside the enterprise and explore the thinking and understanding of digital transformation of enterprise executives, because they are the real people at the helm of investment and management of digital innovation, not the usual The “direct customers” contacted by the classmates of Party B.

 How do the trendsetters in these markets view digital transformation?

Many of them (except for large central enterprises, ministries and commission-level organizations, etc., for them are necessary tasks to ensure the realization of national strategies) are actually looking at “digital transformation” cautiously or even conservatively, and do not dare to invest heavily in what they think is high Risky digital innovation activities are on the way, and some companies (not to be named) that have made great efforts to build a data middle platform have declared project failures. This proves that the concerns of these senior trendsetters are not unfounded.

We always discuss why it is so difficult for Party B to be a digitally transformed business? Why are the informatization departments of many enterprises having set up special organizations, but it is still difficult to promote the digital transformation of enterprises? In fact, people should reflect on how the company executives view “digital transformation”. They “promised” to support you in setting up a promotion organization. Do they really want to promote it? Still trying? what is this else? too young too simple too naive…

We do not deny that many companies have upgraded their business capabilities due to their digital capabilities. Whether it is e-commerce retailing, some ambitious real estate companies, or even home furnishing companies, the development of online business is driving the change and strengthening of the business model. Precipitation and use of data, and the more you use data, the more you use it… Accumulation to a certain extent, it is a sin if you don’t use it… You will know when you use it up.

However, when you talk to most enterprises about digital transformation, the bosses will feel extremely empty, because many people are still thinking about the standardization of processes such as ERPMESPLM, the delivery of information-assisted business on schedule, stability, efficiency, and durability.

In fact, the focus of digital transformation is on large central enterprises and ministries and commissions. The upgrading of their capabilities will bring benefits to the vast number of enterprises. Have you ever found that the customers who do digital transformation business are often large central enterprises… So Party B also recruits people all the time. It is very clear that there must be experience in central enterprises.

However, there is not much room for maneuvering within other companies. You may ask your friends who run companies around you how they are trying to “digitize transformation”? Most of the answers are that their own transformation can’t be done, the thunder is heavy and the rain is small, but due to the epidemic and other reasons, all the actions that can be carried out online have been moved online, and the form has changed. The cost has been reduced, the interaction efficiency has been improved, and the communication level has become higher, but the overall business volume has not grown much or even declined. On the contrary, the business scope of some enterprises has become smaller after this wave, and the capital risk has become larger…

As mentioned above, different types of digital innovation have different meanings for enterprises, and their impact will be very different. However, many enterprises use the so-called Internet best practices in the industry. , the same imperfect standard that has not been repeatedly demonstrated by multiple samples to copy, build, and subvert the original model for others. The project of the previous system is relatively not difficult, and it is very harmful to oneself. Give up illusion and return to value.

 So what are the scarce resources that create value?

Kielder said: Capital is a “scarce resource”, and people should treat capital kindly at all costs. It is undeniable that capital is still an important resource today, but we must also see that American companies have a cash reserve of 1.6 trillion US dollars… The power to quickly dilute your capital, these are uncontrollable factors for companies. To maximize the return on this cash, companies must adjust their perception of what is a scarce resource.

Personally, cash is important, but compared with cash, the ability to attract and effectively allocate talents and then seize development opportunities is the real scarce resource today. It is more important to attract a lot of talented people to do business with you freely. Yes, it turns out that Jack Ma and Wang Xing have done a good job in this regard:

Jack Ma later obtained the forward-looking consensus between them with VCs and the investors trust him in his excellent team configuration. A typical player who works hard and then uses capital. For enterprises, don’t think that money means everything, it may become a bubble soon…

In the past, capital played a leading role in industrial and commercial activities. For example, Vanderbilt and Morgan integrated railway transportation, steel industry and electric power industry through capital, and mastered the economic lifeline of the United States. But today’s most valuable and value-creating companies are asset-light companies. The value of a company is reflected in the people it owns, whether it’s Coca-Cola, Procter & Gamble, or Microsoft. Even if all their buildings and factories are burned down, as long as people still Here, we will make a comeback soon! ! ! Therefore, talents are becoming more and more important to enterprises and economic development.

With the continuous work of the money printing machine, capital is becoming more and more flooded, so its importance is gradually declining. For example, in the past ten years, the money supply in China has increased from more than 30 trillion to more than 140 trillion. Capital, as a kind of Resources, when their scarcity is gradually lost, its dominant position in economic activities will also be gradually lost, and real talents in business have been scarce since ancient times! Banknotes are nothing more than monetary figures that can be used.

Of course, we cannot unilaterally deny the meaning of capital. We must look at the problem in a comprehensive way. People and companies are actually a contractual relationship, and capital and companies are also a contractual relationship. It obtains benefits through equity, and this benefit is reflected in dividends or corporate value. go up. Therefore, the relationship between people, enterprises and capital in terms of interests is no longer a zero-sum game, but a relationship of common interests that distribute increments in accordance with the contract after jointly making the pie bigger. You can’t just focus on capital but not people, and you can’t just focus on people and forget to work on capital… And you can’t just focus on trumped-up concepts, and put all kinds of talents who really help you turn around and those who “regard no profit as a sin” Capital is put aside.

To sum up, we must deeply understand and practice the “digital transformation” proposed by the state, and do not engage in formalism and nihilism. At the same time, enterprises themselves urgently need to update, explore and practice the following:

How to adapt to the current changing market environment, the harm caused by the epidemic, and the policy orientation?

How to re-evaluate the investment direction of your own company?

What is the real rare resource?

How to redefine value judgments?

How to realize value? …

The Links:   LQ10D346 LQ084S1DH02

Author: Yoyokuo