Digitalization promotes the transformation and upgrading of industrial enterprisesLi Yizhong, former Minister of Industry and Information Technology and President of China Federation of Industrial Economics

Congratulations“ APEC Small and Medium sized Enterprises Digital Economy Development Conference; Successfully held in Chengdu. I would like to share my understanding and insights on developing digital industries and promoting enterprise transformation and upgrading with everyone.
 
1、 Developing the digital economy is a global trend and national strategy that requires coordinated planning and active promotionGeneral Secretary Xi Jinping has repeatedly emphasized the significant importance of developing the digital economy and accelerating the construction of a manufacturing and networking powerhouse on multiple occasions. By studying the instructions of General Secretary Xi Jinping, I deeply understand that developing the digital economy is not only a global development trend, but also a national strategy that must seize opportunities and promote overall development. The purpose of development is to promote the transformation and upgrading of various sectors of the national economy, especially the industrial and manufacturing industries, towards the mid to high end, accelerate the construction of a manufacturing powerhouse, and achieve high-quality development. The path is to focus on the deep integration of new generation information technology such as big data, the Internet, cloud computing, artificial intelligence and the real economy, promote the birth of new technologies, new products, new industries, new formats and new models, and promote the transformation of productivity and production relations. The key is to independently innovate and steadfastly carry out scientific and technological breakthroughs, achieving independent and controllable core and key technologies. The approach is coordinated and promoted by the state, industry, local governments, and enterprises. The state strengthens planning guidance, industries formulate detailed plans, and localities implement and promote them based on actual conditions. Enterprises are market entities, and various types of enterprises complement each other's advantages and promote synergy.
&Ldquo; Digital China; Starting well and achieving significant results. Firstly, great success has been achieved in service consumption fields such as commerce, logistics, transportation, finance, and social management. At the same time, the deep integration of information technology and industrial manufacturing is driving the transformation and upgrading of industrial enterprises, improving quality and efficiency. We call the part that drives economic growth through digitization, networking, and intelligence the digital economy. The digital economy is not a standard for dividing industries, but a prominent feature of the new economy in the new era. The contribution rate of the digital economy to economic growth continues to increase, gradually improving the level of informatization in more fields and industries.
Developing the digital economy; Digital Industrialization; It's a means, '; Digitalization of Industry; It's the purpose. Massive data contains patterns and logic, and the key is to mine, organize, deeply analyze, and scientifically apply them. Big data must first be combined with Internet, cloud computing and other information technologies, and use corresponding intelligent terminals to form a data industry with databases, computing centers and other carriers. Then, it can be applied in various industries to create new value and resources can become wealth. In the past decade, China's communication technology from 2G to 5G has improved the application level of the data industry and promoted the digital transformation and upgrading of the industry. After years of effort, China has achieved phased success in 5G patents, standards, spectrum licensing, network deployment, and other aspects, accounting for 30.3% of the world's patents. The commercialization of 5G first requires the industrialization of 5G, including the evolution and upgrading of network infrastructure, the development of 5G system equipment and terminal devices, in order to enhance the service capabilities of the digital industry. More importantly, the digital industry serves the application of the real economy, especially the industrial manufacturing industry. It is necessary to develop action plans, carry out application experiments in key industries, and develop application scenarios through cross-border cooperation and collaboration between operators, equipment manufacturers, Internet enterprises and industrial application enterprises, so as to gain experience and gradually promote them.
 
2、 The key and difficult point in developing the digital economy lies in the digital industry, which should start from enterprisesChina has a complete range of industrial categories, huge scale, and complex technology, which increases the difficulty of digital transformation. The development of digital industry should start from enterprises, focusing on building enterprise industrial Internet and building intelligent factories. Accelerate the establishment and improvement of the internal and external networks of the enterprise, forming internal integration and external socialization. Digitization is achieved step by step and in a hierarchical manner from production lines, workshops, factories to enterprises. There are significant differences in development levels among industries, regions, and enterprises in our country. Enterprises must start from reality, make up for their weaknesses and strengths, and carry out intelligent technology transformation. They should follow the path of automation, digitization, networking, and intelligence step by step to prevent thousands of enterprises from rushing forward in unison.
The development of the digital economy has enabled industrial enterprises to play the role of market entities. On the basis of existing technological equipment, production material manufacturing enterprises expand and enrich the collection, analysis, and application of data, optimize and formulate solutions through enterprise or external computing centers, and upgrade from automation to intelligence. The manufacturing enterprises of daily necessities are closely connected with the market, focusing on using big data to segment the market, develop products, create brands, and successfully promote personalized scale customization. Electronic information manufacturing enterprises build intelligent production lines, manufacture intelligent terminal products, effectively improve efficiency and quality, and provide technical equipment support for digitalization in other industries.
Cultivate digital solution providers to provide service platforms for the manufacturing industry, especially for small and medium-sized enterprises. A large number of small and medium-sized enterprises lack manpower and financial resources, which requires the creation of specialized service platforms to encourage enterprises; Go to the cloud” Cloud platforms provide digital management for enterprises, collaborate on developing application scenarios, and develop digital solutions. Generally speaking, "; Platform” There are roughly two types of constructions. One is developed from information technology enterprises. In addition to super large Internet enterprises such as BAT, many are more practical solution providers for certain manufacturing industries. Zhejiang Zhongkong Technology Group relies on the strength of Zhejiang University and focuses on process manufacturing as its main target; Shenzhen Hualong Xunda and 
3、 Enhancing industrial foundational capabilities is the cornerstone and prerequisite for digitizationWhat is industrial basic capability? Core basic components and parts, advanced basic processes, key basic materials, industrial technology foundations, etc; Four basics; ）It is an industrial basic capability. “ Four basics; The close connection and combination between them form the industrial foundation capability. One is the formation of numerous basic components and component combinations; Whole machine” Integrate relevant physical units into a production line. Secondly, several physical, chemical, and biological changes have synthesized technological routes, and only advanced basic processes can have advanced technical and economic indicators. Thirdly, whether it is metal materials, non-metal materials, semiconductor materials, or chemical raw materials, they are all the parent materials of all industrial products. The fourth is the industrial technology foundation, which includes experimental facilities, quality inspection and certification, measurement standard verification and transmission, as well as various technical information service platforms, all of which are necessary means of technological innovation.
Vigorously strengthening industrial basic capabilities, we must see that; Four basics; Not strong, mainly manifested in some core and key technologies being controlled by others, with a self-sufficiency rate of only one-third for key components, parts, and materials, a heavy reliance on imports, and weak support for industrial technology foundation. “ Four basics; Not strong, difficult to achieve precise manufacturing and intelligent manufacturing, difficult to improve industrial supply capacity and level. Especially in China, the situation of industrial industries, regions, and enterprises varies greatly, with varying levels ranging from Industry 1.0 to Industry 4.0. For a considerable number of enterprises, it is not yet the stage to seek intelligence, and they need to start from; Four basics; Start, pay off debts, and strengthen foundation. Emerging enterprises and advanced manufacturing enterprises should also do a solid job; Four basics; At the same time, attention should be paid to strengthening basic management abilities, such as basic work, grassroots construction, and employee basic qualities.
Actively promote the creation of manufacturing industry; Single champion; And Industry“ Little Giant; get some action. The experiences of Germany and Japan, as well as the exploration and practice of China's industrial sector, have proven to be beneficial for improving; Four basics; Effective measures. Since 2016; Manufacturing industry single champion; Three batches of enterprises and products have been released to the society, and the fourth batch will be announced soon, with a total of 514 companies. Among them, the proportion of private enterprises has increased from 53.9% to 65.3%, setting a benchmark for the industry and especially welcomed by small and medium-sized enterprises. Their commonality is focus and persistence. Long term focus on core products, not swayed by short-term market temptations, sticking to our main business, dedicating ourselves to research and development, and pursuing excellence. The second is innovation driven. Based on the analysis of the first three batches, these individual champion companies have an average of 328 valid invention patents. The third priority is quality. Precision manufacturing, intelligent manufacturing, progressiveness, reliability, stability, environmental adaptability and life cycle of products and services are industry-leading and internationally leading. The fourth is to expand the market. The top three global rankings for market share of our main products. If more and more manufacturing enterprises, especially small and medium-sized enterprises, reach the level of individual champions, and then grow into specialized, refined, unique, and new ones; Little Giant; The level of manufacturing in our country will greatly improve. Only by solidifying the industrial foundation capabilities can digitalization, networking, and intelligence be successful.
This article was written by Li Yizhong on December 16, 2019 in Chengdu; APEC Small and Medium sized Enterprises Digital Economy Development Conference; Speech on