April 26, 2024

Ten Trends in China's Smart Manufacturing

At present, a new round of scientific and technological revolutions and industrial changes are surging. According to the strategic deployment of “Made in China 2025”, intelligent manufacturing with the integration of information technology and manufacturing has become the main trend of global manufacturing development.
Trend 1: The transformation of the industrial organization model will reshape the current industrial system The era of manufacturing innovation is undergoing significant changes. The scientific research tools are increasingly digitalized and intelligent; the innovation model is developing in the direction of localization and collaboration; users participate in the innovation process. Easier, the crowd-sourced model is gradually becoming popular; the technology renewal cycle is shortened and the innovation speeds up; the R&D tools are virtualized and networked.
Driven by these trends, China's existing industrial system will gradually disintegrate and reconstruct, and new manufacturing models, organizational methods, and industrial forms will emerge in large numbers.
Trend 2: Large-scale, multi-level needs will continue to be created. China's manufacturing industry is characterized by large scale, complete structural system, and uneven development levels. China's manufacturing industry is in a process of overall transformation and upgrading. The level of development in the field and industry will also be dynamically advanced in waves.
First of all, huge markets in various industries in China will provide necessary thresholds for the gestation of new technologies.
Second, demand differentiation will provide a diverse usage scenario that can be used to test different technology products and upgrade paths.
Third, due to large differences in market demand, technological innovation and diffusion have to go through a process in the industry, and companies will face a relay demand wave.
Therefore, various types of demand for automation, information, and intelligence in production equipment at different stages of development in large markets will coexist for a long time. In this sense, there is no other market in the world that can breed such a diversity of innovation needs.
Trend 3: The strategy for China's market demand has deep global value. From a global perspective, China's manufacturing industry with various categories and varying levels of development is just like a miniature version of the global manufacturing industry, based on technologies, products and technologies developed in the Chinese market. Business model with global application prospects. Therefore, in a sense, China is a sentinel in the global market competition and "wins China and wins the world."
Fortune magazine released the "World 500" list, the number of Chinese companies on the list increased year by year, reached 106 in 2015, accounting for 21.2% of the total, less than the United States 22, is already close to Japan's twice. China’s unique advantages are expected to “train” more and more innovative companies with global competitiveness.
Trend 4: The emergence of a large number of service-oriented manufacturing as a representative of emerging industries, developed countries, manufacturing service level is significantly higher than the industrialization process in the country. Manufacturing service manufacturing in the United States accounts for about 60%, while manufacturing service manufacturing in China only accounts for less than 2%.
In the era of industrial Internet, the core of a company’s success is whether it can be transformed from a concept, technology, or business model, so that each company is no longer merely a product producer or service provider, but instead establishes a strong relationship with customers through products and services. "Relationship" can be a "customer operator" that can be a 24-hour online, understand and predict customer needs.
Services are integrated into manufacturing links such as R&D and design, manufacturing, operation and management, and sales, maintenance, and operation. Various forms of value creation may have the appearance of service forms.
Trend 5: Competition focus shifts from the value chain to the value network The Internet has reduced various transaction costs and management costs of the company. Therefore, between the market mechanism and the enterprise mechanism, there emerged a "third hand" - the value network mechanism, that is, through the integration of resources rather than integration or simple transactions, in an open, shared, mutually beneficial, reciprocal, collaborative way, and cooperation. Partners form a shared value community.
Value networks provide new mechanisms for acquiring information, resources, markets, and technologies. These factors are intertwined and interact with each other, which not only increases the uncertainty of the business environment, the unpredictability of the future, the complexity of the business system, but also leads to Destructive, large-scale transfer of business power.
Trend 6: The innovation model has shifted from an internal organization to an open, crowd-sourced platform. Since the industrial revolution, the production method has reached the third stage, which can be called a personalization stage. Consumers are more pursuing personalization and the mass market has been shattered. Consumers tailor this process to highlight their personalities and express their emotional appeal.
Under the new economic model, in addition to consumers, suppliers, partners, and other stakeholders are increasingly involved in the company's value creation activities, namely crowdsourcing or group creation. Crowdsourcing uses an open platform that aggregates the wisdom of users, suppliers, partners, and employees, and creates the power created by internal and external corporate groups. Minds and wisdom from different heads collide with each other and the forces unimaginable in the era of industrial economy emerge.
Trend 7: Cloud manufacturing platforms with commercial influence will continue to emerge. Cloud manufacturing is a new type of networked manufacturing service model that incorporates advanced manufacturing technologies and information technologies such as the Internet, cloud computing, the Internet of Things, and Big Data. The public service platform is a carrier that integrates heterogeneously distributed manufacturing resources and manufacturing capabilities through virtualization, service, and collaboration. It realizes timely and low-cost services and realizes automation according to user needs at all stages of the manufacturing life cycle. High quality and efficient docking of resources.
Trend No. 8: Focused on the future, the competitiveness of production and finance developed in a concentrated manner. In the face of the impact of new technologies and new models, traditional manufacturing industries urgently need to use capital leverage to get rid of the dilemmas of lack of connotative growth, and continue to incubate new resources based on existing resources and capabilities. Business advances into new areas and develops new capabilities. It can be predicted that in the next few years, China's manufacturing sector will generate a large number of mergers and acquisitions and integration. In this process, industrial effects such as industrial concentration, structural optimization, economies of scale, and economies of scope increase are increasingly manifested.
In fact, driven by policies, China's manufacturing industry has stepped up the pace of transformation and upgrading through mergers and acquisitions in the capital market. According to statistics from the Securities Times, the number of M&A incidents in China's manufacturing industry in 2015 was as high as 2,249, an increase of 34% year-on-year, and accounted for 39% of the total M&A in various industries, ranking first among all 19 major industries.
In the future, a large number of enterprises will use strategy as the traction, fully leveraging the capital market, and transforming the advantages of the capital market into the competitive advantages of the industry, capital-driven industries, industrial support capital, and the coordinated development of industry and capital.
Trend IX: The shared economy model provides a new direction for manufacturing industries. From the point of view of industrial organization, some characteristics of Internet value discovery, resource aggregation, and mass collaboration make the traditional organizational approach characterized by hierarchical organization and linear division of labor become networked. It is characterized by the development of platform and flatness.
At the same time, the business model of traditional manufacturing with product and production as the core has shifted to consumer-oriented, production-plus-service-based, and industrial competition has also changed from a single link to the ecological competition of the industry, with a shared economy. The factory-less manufacturers represented by the model and micro-multinational companies are also gradually emerging.
The emergence of the sharing economy has broken the dependence of individual workers on business organizations and can directly provide services or products to end users. The advent of a shared economy platform has allowed individual service providers who are separated from business organizations to have access to a wider range of contacts.
Trend 10: "Data Engineer" Accelerates the Replacement of Traditional "Skilled Workers"
The rapid advancement of smart manufacturing has brought great demand for talent. With the popularity of digital R&D design management tools, employees need to have the basic qualities to deal with Industry 4.0, CAD (Computer Aided Design), CAM (Computer Aided Manufacturing), CAE (Computer Aided Simulation Simulation Analysis), CAPP (Computer Aided Process Design) The use of tools such as MES, MES (Production Process Execution Management System), and ERP (Enterprise Resource Planning) has become a basic capability requirement for employees.
The role of some traditional posts in production will gradually weaken or even disappear. For example, the position of the blueprinter gradually withdraws from the historical stage, and digital modeling, lean specialists, reverse modeling, 3D printing, precision measurement and inspection positions are increasingly important. Intelligent manufacturing realizes optimization of manufacturing process simulation, digital control of manufacturing process, and real-time monitoring of status information. The “skilled workforce” of enterprises will be reduced, and people will be more engaged in product design, process optimization, and production system management.

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