Deloitte Consultingresearch report

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

The following is the Digital transformation of state owned enterprises to improve quality and efficiency From Deloitte Consulting recommended by And this article belongs to the classification: Deloitte Consulting , research report.

Digital transformation is not only limited to the implementation and operation of new technologies, but also a comprehensive change in the face of the future, which will usually have a profound impact on the strategy, talent, business model and even organizational mode of enterprises. The power of digital transformation of Chinese enterprises comes from both external pressure and its own power. The global industrial upgrading led by digital technology is profoundly reshaping the competition rules and pattern. At the same time, China’s economy has entered a new stage of high-quality development, and innovation has become one of the new development momentum. In the meantime, Chinese enterprises should start their own transformation as soon as possible to cope with the future trend. Especially for state-owned enterprises, in the process of reform and innovation and benchmarking with world-class enterprises, the SASAC of the State Council has clearly put forward the requirements and expectations of “state-owned enterprises should be the vanguard in promoting digital and intelligent upgrading”. At the beginning of 2020, COVID-19 suddenly played an important role in the prevention and control of epidemic situation. Digital technology has also become one of the catalysts for accelerating the transformation of digitalization in China.

In order to understand the current situation, trends and challenges of digital transformation of Chinese enterprises, we conducted an online questionnaire survey among 145 enterprises (77% of which are Chinese enterprises) and shared some key findings.

First of all, over 60% of the surveyed enterprises have started the digital transformation, and 77% of the respondents said COVID-19 will accelerate its digital transformation. Although there are differences among enterprises of different ownership systems and different industries, on the whole, over 40% of the enterprises’ self-rated digital level is lower than the global average level, and 30% of the enterprises believe that they are at the global average level, showing a strong desire and space for improvement. Secondly, the enterprise LED digital transformation department has gradually transferred to the business and functional departments leading and deep participation, and the IT department leading alone is the most rare case, which shows that the digital transformation of Chinese enterprises has come to the stage of deep combination of business and management. Third, 70% of the respondents’ current digital transformation work focuses on using digital technology to improve internal management efficiency and reduce costs; while in the long run, less than half of the respondents carry out extremely important work, such as the overall medium and long-term strategy, network security and data privacy protection, compliance and risk control, and digital transformation of organization and talent. Finally, the respondents believe that the three major challenges faced by the digital transformation are: the integration and utilization of multiple original information systems, data quality and availability, and the lack of a unified vision and goal of digital transformation. This shows that we need to lay a solid foundation for carrying forward the past and opening up the future, and make a long-term overall transformation plan to make the digital transformation forward-looking, holistic and operable.

In order to improve the innovation ability of state-owned enterprises through digital transformation, we propose to consider from six aspects: compliance, strategy, business management, operation management, organization and talent, technology and data security, and give the common roadmap of digital transformation. For the six aspects of digital transformation, this volume and Volume II provide 30 specific cases of enterprise digital transformation for readers’ thinking and practical reference.

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