"EY Technology Horizon 2022-Technology and Transformation Leaders' Insights White Paper" was unveiled at the CIIE yesterday. The white paper believes that technology empowerment of transformation has become the development trend of enterprises, and the transformation effect depends largely on the leaders' strategic decisions and implementation measures, and the unexpected technological transformation will bring differentiated value to enterprises.
is based on Ernst & Young's 2022 independent survey on technology empowerment transformation. The survey covers 6 countries, 7 industries, and 16 departments around the world, including 10 in-depth focus interviews and surveys of 394 senior management. Through analysis and research on global executive views and industry benchmark cases, EY has put forward suggestions on how Chinese companies can successfully achieve digital transformation , in order to help companies create sustainable value and build long-term vitality. The results of the
survey show that the unexpected transformation requires companies to pay attention to the combination of technology and humanities, and pay attention to strategic goals rather than tactical goals. Transformation beyond expectations will bring an average revenue growth of 6.2% to enterprises, but currently only 10% of enterprises have achieved transformation beyond expectations. Wang Haiying, head consulting service partner of Ernst & Young Greater China, said: "In the digital era, technology is rapidly iterating and upgrading, and the market environment is unpredictable. To move forward steadily in fierce competition, it is necessary to test the company's ability to keen insight and positive change, and it is also necessary to test the leader's ability to grasp strategies and implement implementation. When building the strategic goal of technology empowerment and transformation, enterprises should comprehensively consider technology and humanities factors, and formulate comprehensive business, technology and data strategies and implementation paths." How to use technology to empower transformation with
, Erst & Young believes that it should start from three aspects.
technology real-time: build basic technology capabilities centered on data, optimize business models through artificial intelligence and other technologies, achieve rapid deployment, and meet the increasing expectations of customers and employees in real time.
According to the survey results, more than half of companies that have achieved unexpected transformations believe that technological capabilities (skills and new tools) are one of the three most important key factors for their successful transformation. Nearly 60% of respondents believe that data and analytics are key areas of technology investment (31% in 2020). EY believes that if companies want to have a deep insight into their customers to achieve success, they must regard data as the basic resource with the same value as raw materials, which requires companies to become data-centric organizations. But only a small number of companies achieving this goal (16%).
At the technological level, enterprises should first actively accumulate data assets, use data analysis results to optimize user experience, drive product innovation and continuous business improvement, and build data-centered organizational development capabilities. Secondly, invest in basic technological capabilities. By quickly deploying and proficiently applying basic technologies such as cloud computing , data analysis, artificial intelligence/machine learning, and the Internet of Things, we can meet the continuous improvement of customers and employees. Case study found that at this stage, leading enterprises in various industries are actively building digital organizations that lead the future, investing in and deploying basic technologies, reshaping leading practices in the digital era, and realizing long-term value. Gu Qinghua, head partner of EY Greater China Science and Technology Consulting Services, said: "Data is not only a basic resource required in the development process of the enterprise, but also a core asset that is constantly accumulating. Paying attention to data analysis and application will surely create value for the enterprise. Data analysis requires the addition of technological capabilities. Enterprises should build suitable technology combination capabilities based on their own industry and business scenario characteristics. Use technology to produce data, use data to drive decision-making, and establish a "data-centered" model to drive management change and business innovation to achieve value creation."
Human-centered centralization: Adhere to customer-centeredness, gain customer trust, and pay attention to the company's digital culture and employees' digital skills to enhance employees' trust and participation.
According to the survey results, nearly 70% of enterprises further understand customer needs by leveraging technological tools (such as model algorithms and artificial intelligence), and achieve customer-centricity. More than two-thirds of companies that have achieved unexpected transformations have actively carried out change management for employees to respond to technology-related changes.In addition, three-quarters of the companies surveyed believe that their "organizations are working hard to develop and promote a digital transformation culture."
EY believes that companies should pay attention to customer changes externally and cultivate digital talents internally. On the one hand, we use data analysis and various technologies to track and adapt to changing customer needs to strengthen our core competitiveness in a fiercely competitive market. On the other hand, cultivate digital talents and culture within the enterprise, introduce new thinking modes and working methods, and form an internal driving force to promote the transformation of enterprises in .
case study found that the new economy and retail and fast-moving consumer goods industry is more advanced in the process of insight into market changes and inspiring organizational vitality; and traditional enterprises are also actively exploring agile organizations, comprehensively promoting talent reform, enhancing organizational vitality, and establishing a digital operation guarantee system, thereby continuing to deepen digital transformation.
Innovation scale: embrace the ecosystem, challenge and extend the boundaries of traditional industries, and design, guide and promote the transformation of existing business models more flexibly.
According to the research results, the ecosystem plays a key role in accelerating transformation and achieving value maximization. A well-performing ecosystem will bring high financial value. Data shows that on the revenue side, enterprises with good performance in ecosystem construction bring about an incremental income of up to 16.5%, while enterprises with poor performance have an incremental income of only 7.8%. On the cost side, the overall cost of enterprises with good ecosystems can be reduced by 14.6%, while the overall cost of enterprises with poor performance can be reduced by only 9.6%.
EY believes that enterprises should challenge and extend the boundaries of traditional industries, establish win-win partnerships, build a close business ecosystem and value network, and achieve win-win cooperation among all participants in the industrial chain.
case study found that in addition to native Internet companies, traditional industries can also use their own industry resources and business capabilities to vertically connect internal value streams and horizontally connect industrial chains, thereby promoting cost reduction and efficiency improvement for enterprises and even industries.
Electronics Greater China Consulting Service Market Development Partner Xie Mingfa said: "No enterprise exists alone in the market. Different industries, different main products and services, and the resources and forces they have are also different. Business entities with different resource advantages can seek help from each other and depend on each other. Learning to use each other's strengths to build a community of interests is the only way for enterprises to survive and develop sustainable."
Author: Tang Weijie
Editor: Zhu Wei
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-