Research Team of DRC

2017-9-8

Intelligent management will exert a profound impact on enterprises and intelligent revolution has provided great opportunities for the transformation and upgrading of Chinese enterprises. We need to take positive measures in responding to the massive production of smart products. Smart products will not only change the product features, but also promote industrial reform, bringing opportunities for the transformation and upgrading of enterprises.

I. The development trend of smart products

First, technology pushes forward the rapid development of smart products. The progress of semiconductor technology lays the technical foundation for the development of smart products; the development of Internet and Internet of Things accelerates the process of smart products; artificial intelligence provides a powerful driving force for the development of smart products. Second, demand drives forward the rapid development of smart products. Personalized and diversified ways of consumption have gradually taken up the lion’s share of the market, and enhanced the demand for smart products; service procurement has replaced product purchase and provided more market opportunities for smart products.

II. Smart products provide a huge opportunity for enterprises to make innovations.

First, the principal market share of hardware products has given way to both hardware and software products. The definition function of software could decide the trend of future product development. In view of the development trend, software will control the operation of physical components and determine the function of physical components. As the value of smart components becomes increasingly important in terms of product, the nature of manufacturing sector will also undergo significant changes. 1. There will be significant changes in the cost structure, and the effect of economies of scale will become prominent. 2. Smart products will bring out network effect, which will easily bear out industrial characteristics, i.e. the strong is always strong and the winner takes all. Second, business-user relations will change from one-time transactions to long-term service. The consumers’ behavior will undergo major changes, from mainly focusing on the quality of products to service provision for the whole life cycle of products. The change of relations between manufacturers and users will promote the innovation of business model. The manufacturers’ business model will shift from focusing on the long-quality cycle of hardware to fast upgrading of software and services. The selling of products will be replaced by the selling of services. Third, big data will become an important resource for enterprises. Smart products will bring about big data in the process of production and consumption. Big data analysis can improve the relevant parameters of smart manufacturing, so as to minimize the interference of human factors, reduce dependence on professional technicians, and further accelerate the application of robots. Fourth, competition between enterprises will evolve into competition for industrial ecosystem. Smart products will create infinite space for consumer service, forming a huge industrial ecosphere. When the users choose products, they would give more thought to industrial ecosphere rather than product providers. The more the number of capable enterprises participates in the service, the higher quality and diversified kind of services the consumers will enjoy. Consequently, the enterprises will gain an upper hand in market competition. In the entire ecosphere of smart products, enterprises can be divided into four categories, namely component enterprises, complete-set of machinery equipment enterprises, information platform enterprises and application service enterprises. Among them, the information platform enterprises will occupy the dominant position in most of the industrial chains.

III. We need to take positive measures to respond to the development trend of intelligent management.

Although intelligent management is still at the initial development stage, it is witnessing a swift growth on a large scale. Some of the world’s leading manufacturing enterprises have already taken measures in order to occupy a commanding height in the new round of competition. The intelligent revolution has also provided a rare opportunity for the development of Chinese enterprises. If the relevant issues are properly handled, the Chinese enterprises may enhance the influence in the new industrial ecology with the help of intelligent revolution. First, we need to actively promote the transformation of human resources structure. To cope with the rapid changes in employment structure, it is necessary to increase investment in human resources transformation. We should attach great importance to the impact of intelligent management on employment structure, and make plans for human resources transformation in advance. On that basis, we need to speed up the structure adjustment of academic education and vocational training, vigorously encourage enterprises to carry out on-the-job training, cultivate personnel for intelligent management through various channels and help laid-off workers to learn about new technical skills. Second, we need to speed up the construction of information infrastructure. In order to render more support to the development of smart equipment, we must first of all accelerate the construction of basic network facilities, including a new-type communications networks and cloud computing center, etc. We should focus on planning the deployment of next-generation mobile communications, in particular, the efficient use of radio wave resources, and strive to take the lead in realizing commercial use in the world. Besides, we need to further enhance the standard of the Internet of Things, focusing on industry alliance by means of industry-university-research cooperation. On the basis of common standards, we need to vigorously promote the development of standards in key application areas, forming first-mover advantage in the global competition of technical standards. Third, we need to continue to support the development of China’s chip industry and core software. The government needs to give more support relating to capital, technology research and development, personnel training and relevant aspects, guiding enterprises, research circle, institutions of higher learning to carry out collaborative research, and crack hard nuts relating to technical issues of core software and component parts. Fourth, we need to strengthen supervision of information security. Information security has become a key factor affecting the development of intelligent management. Information security depends on the protection of technology, management and law. Enterprises and users need to strengthen protective measures; besides, relevant departments need to improve laws, regulations and technical standards according to new problems loomed up in intelligent management, enhance international cooperation, and rely on the power of law to protect the application of smart products. Fifth, we need to flesh out technical standards and relevant laws and regulations in the use of smart products. 1. We need to develop technical standards for some smart products requiring higher security level and create conditions for these products to enter the market. 2. We need to improve laws and regulations to define responsibility of related parties in the accidents during smart products application. We also need to improve relevant laws and regulations with the times to solve new problems brought about by technological progress.