Digital transformation of state-owned enterprises to comprehensively improve quality and efficiency From Deloitte Consulting

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Deloitte recently released a series of reports on the reform of state-owned enterprises, “comprehensively improving the quality and efficiency of digital transformation of state-owned enterprises”. The driving force of Chinese enterprises’ digital transformation comes not only from the external pressure of new technology leading the global industrial upgrading, but also from the self driving force of enterprises in the new stage of high-quality development to find new drivers. The SASAC of the State Council has clearly put forward the requirements and expectations for state-owned enterprises to “be the pacesetter in promoting the upgrading of digital intelligence”. Digital technology has played an important role in epidemic prevention and control, and has also become one of the catalysts for China to accelerate its digital transformation.

Digital transformation is not limited to the implementation and operation of new technologies, but a comprehensive change that will usually have a far-reaching impact on the strategy, talents, business model and even organizational mode of enterprises in the future. Through an online questionnaire survey of 145 enterprises (77% of which are state-owned enterprises) from different industries and different ownership, this report finds that:

More than 60% of the surveyed enterprises have started digital transformation, but the progress of enterprises in various ownership systems and industries is different.

From the perspective of organizational structure, business departments gradually participate in and lead the digital transformation, and it departments alone are rare.

In terms of maturity self-assessment, more than 70% of the respondents believe that their digital transformation is at or below the global average, indicating that there is still much room for improvement and desire to improve.

At present, the digital transformation work that has been carried out focuses on the cost reduction and efficiency increase of the internal management of the enterprise, and the promotion of business innovation through transformation needs to be further improved.

The three biggest challenges for enterprises in the process of digital transformation are “the integration of multiple original information systems, data quality and availability, and the lack of a unified vision and goal of digital transformation”.

Digital transformation is a long-term and large-scale transformation, and various enterprises are in different transformation stages. In order to promote the transformation orderly and effectively, it is suggested to comprehensively use the classic mode from face to point and the agile mode of rapid iteration to plan the digital transformation roadmap in advance. State owned enterprises take digital transformation as the starting point to improve their innovation ability. We suggest to consider it from six aspects: compliance, strategy, business management, operation management, organization and talent, technology and data security, and provide 30 specific cases of enterprise digital transformation in six aspects in this volume and Volume II for readers’ thinking and practical reference.

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