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The Transformation And Upgrading Of The New Manufacturing Industry Will Be Over Five Ways

May 23, 2018

China is now the world's largest manufacturing country, but it is not yet a manufacturing powerhouse. In the process of moving from a big country to a powerful country, transformation and upgrading are the only way for China's manufacturing industry. At the national level, this is the era of high quality development needs and historical mission, an open and fair market economy system is particularly important. And specific to enterprises, transformation and upgrading is the choice of different development paths.

Choice is painful. Entrepreneurs change first to change their own lives. The process of transformation and upgrading is the process of transformation and rebirth. In this process, the entrepreneurs should not only look outward, but also accurately see the changes and trends of the new era environment, and also reexamine their own advantages and core competitiveness. Five of them must be tackled.

The first gateway is a market barrier. In particular, private enterprises will encounter more problems in their development, such as difficult work, financing difficulties, difficulties in implementing policies, and so on. How to use the "subtraction" of government power in exchange for the "addition" of market vitality? A very important point is to break the market barrier. To make the enterprise as the market subject in the same open and fair market environment, it is the cornerstone and guarantee for the transformation and upgrading of the manufacturing industry to make a good competition in the market environment of the same open and fair market.

The second gateway is an inertial mind. The more successful the enterprise is, the greater the inertia. Such enterprises often neglect the success of relying on the past may mean today's failure. Today's world is a world of cross border competition. It is not Kodak that defeats Lucky Film, but the industry is subverted by digital images. In the future, there will be more and more industries withering or even disappearing. This is a warning to us to break away from the inertial thinking and to reexamine our strengths and core competencies in a cross boundary view, thus finding a new direction for growth.

The third gateway is a small wealth. Many enterprises feel that the cost of transformation and upgrading is high, heavy burden and high risk. They often choose to turn around without changing, and maintain as much as possible. A lot of the manufacturing industry is making the OEM, although the profit of the product 2/3 is taken away by the brand merchants, but there is no crisis of survival, many companies prefer to see the small profits in front of the eyes, and do not want to take risks. "I want to transform and upgrade" is the problem that the enterprise needs to solve. In addition to the government to support the new kinetic energy cultivation, the enterprise itself must overcome the inertia of "the bad turn of the ship" and the perplexity of "transformation and death, no transformation and so on".

The fourth gateway is the ability to innovate. China's manufacturing industry is mostly at the low end of the industrial chain, starting from low-end products and developing to high-end products, which is a difficult road of innovation. Intellectual property accumulated by innovation is an important weapon for enterprises to participate in competition. Our protection of intellectual property rights is far from enough, thereby affecting the enthusiasm of enterprise innovation. In our country, the number of patent applications is the largest in the world, but the maximum amount of compensation for a patent infringement is only 1 million yuan, far below the developed countries. If the case is larger, the money is not paid for the lawyer's fee. At the same time, the lack of investment in innovation and the lack of talents also restrict the ability of independent innovation of enterprises.

The fifth gateway is the level of fusion. The integration of manufacturing and service industries, the integration of manufacturing and information technology has become a major trend in the transformation and upgrading of manufacturing industry. Enterprises may only sell products before, but now they may sell services. At present, the traditional manufacturing of General Company in the United States accounts for only about 30% of the total output value, and 70% of the business is made up of "technology + Management + services" related to its manufacturing industry. In the process of promoting the transformation and upgrading, the new generation of information technology provides a strong technical basis, especially when the 5G network is commercially available, and an era of centralization of all things will come. The Internet of things can connect the upper and lower reaches of the supply chain to a lower level, forming a real-time cooperative supply chain connecting the end customers of the market, the internal departments of the manufacturing industry, and the upstream and downstream parties, which will greatly enhance the competitiveness of the traditional manufacturing industry. For the traditional manufacturing industry, the service industry and information technology all need deep learning, and it also doomed the difficult road of integration.

The manufacturing industry is facing unprecedented challenges and facing unprecedented opportunities. Today's entrepreneurs only "cut six will be cut through five customs" and overcome many difficulties, the transformation and upgrading of China's manufacturing industry can "kill a blood path" to achieve high quality development.

Email: zhang@hzshuyuan.cn