The Wuzhen World Internet Conference has just ended, and the industrial Internet has become a hot topic in the industry.
On December 5th, the "ABBAbilityTM Innovation Day" with the theme of "Building a Digital Ecosystem" was held in Beijing. Industry professionals and experts from ABB, Alibaba Cloud, Microsoft, and Huawei jointly discuss the opportunities and layout of the Industrial Internet.
At present, China’s digital economy has maintained rapid growth. According to statistics from the China’s Informatization Committee, the number of China’s digital economy reached 22.4 trillion yuan in 2016, surpassing the sum of Japan and the United Kingdom, ranking second in the world.
The core feature of the digital economy is the deep integration of a new generation of information technology and the real economy. Li Qingyuan, ABB’s vice president of China, and head of digital business development and chief information officer, said that Wuzhen World Internet Conference mentioned that more words are “the second half of the Internet.†The most commonly discussed word is “real economyâ€. The second half of the Internet is "about the real economy."
This "related real economy" points to the Industrial Internet. On November 21st, at the 2017 China Industrial Internet Conference, Chen Xiongxiong, Vice Minister of the Ministry of Industry and Information Technology, stated that the current industrial Internet has become an important area for major countries in the world to compete for the commanding heights of future industrial development.
At the end of November, the State Council issued the "Guiding Opinions on Deepening Internet + Advanced Manufacturing Industry to Develop Industrial Internet" (hereinafter referred to as the "Guiding Opinions"), and deployed the Industrial Internet to accelerate development to promote the revitalization of the real economy and accelerate the transformation and upgrading.
In the second half of the Internet, how to adapt to development trends, look ahead, and build an industrial Internet ecosystem have become the focus of attention in the industry.
Industrial Internet releases huge opportunities
The Internet industry is optimistic about the industrial opportunities brought about by China's industrial Internet development.
The first is smart manufacturing. Wang Feiyue, director of the State Key Laboratory of Complex Systems Management and Control at the Institute of Automation, Chinese Academy of Sciences, introduced in December that the country released “Made in China 2025†in 2015. In July this year, the “New Generation of Artificial Intelligence Planning†was published and soon “Smart Manufacture 2035, which is equivalent to a combination of boxing, including Chinese manufacturing, artificial intelligence, and ultimately smart manufacturing.
Wang Feiyue believes that the innovation in the field of information is the transition from the Internet to the Internet of Things and then to the Smart Internet. Afterwards, the industrial field is facing the development of smart manufacturing, smart industry, and intelligent industry. Finally, the industrial Internet will surely move toward the Industrial Intelligence Network.
Wang Feiyue said that he is very confident about the next 15 or 30 years. "China has already started the construction of the industrial Internet of Things. Really top companies will certainly want to be an industrial intelligence network."
Wang Feng, general manager of Alibaba Cloud’s industrial brain, also believes that the Industrial Internet is a global and polymorphic intelligence and is a process that empowers companies.
As mentioned in the "Guidance Opinion," "Using the next three years to consolidate the network foundation is one of the prerequisites for the next step in development." Huawei and other companies believe that this will provide a huge market for 5G and narrow-band Internet of Things.
Followed by the transformation of traditional industries. Li Qingyuan stated that the digitization process of the media, finance, and consumer industries started earlier and went further. The traditional industry, petrochemical, shipbuilding, transportation, and oil and gas, etc., have a slower digitization process. “From another angle, This is probably the most exciting phase and it is an area that will find the greatest benefits in the next few years."
He further cited the report released by the McKinsey Institute. In the Chinese market, the consumer Internet sector is very advanced, but it lags behind the developed countries in Europe and America in the development of the Internet industry. "This means that the opportunities and benefits of exploring digital potential in the industrial sector will also be greater."
IDG Global Chairman Xiong Shouge also said at the World Internet Conference recently that he is more optimistic about the investment of industrial Internet in the future. Compared with BAT, it is mainly in the direction of 2C. The industrial Internet market is bigger and easier to internationalize, and is not subject to language and Cultural influences.
Build an industrial Internet ecosystem
The 21st Century Business Herald reporter found that representatives of industrial Internet companies have mentioned the concept of platforms and ecosystems.
The so-called ecological system is also their respective platforms and circles. How do Internet companies and traditional manufacturing companies cooperate and which companies will dominate the future ecosystem?
Liu Qiang, chief technology officer of ABB China, said that ABB has always wanted to strengthen contacts with its business partners in an open manner, and is not limited to IT companies. For example, ABB began its strategic investment in technology in 2011, looking for new technologies that integrate with the industry. To really let technology return to industry.
Li Jiang, chief technology officer of Microsoft (China) Co., Ltd., believes that to build a platform and build a circle, success must be based on a cyclical industrial foundation. It should be the leader in the industry. The second is the need for a strong digital transformation of genes and Systematization of transformation.
Li Jiang said that the transformation we are talking about is not a change of career. It is not a move to digitization but a sale of software, but a better combination of traditional products and the innovative elements of digitalization and innovation. At the same time, the transformation of internal processes and management systems, the continuous creation of new products, new models, and the emergence of new markets are the key elements for building a platform and achieving success.
A representative from the participating companies introduced the 21st Century Business Herald reporter. Currently, various industries are building their own industrial Internet ecosystem. There are both BAT Internet enterprise giants and traditional IT companies and hardware companies.
“Compared to many consumer sectors, the threshold for entry into the industrial Internet sector is relatively higher. If the traditional large industrial automation enterprises have an early digital transformation, they will have the advantage of accumulating industrial data. Now is their best opportunity,†said the company representative.
As for what BAT Internet companies are doing? Wang Feng introduced that the data capabilities of Alibaba Cloud's platform can help the consumer Internet to ensure that the data is well-organized, and that the human data and the correlations and knowledge maps behind the data of the commodity system are copied to the industry and form a closed-loop industrial digital warehouse.
On November 22, Alibaba Cloud announced that it will build the Alibaba Cloud Industrial Internet Cloud Platform in Guangdong and set the national industrial cloud headquarters in Guangzhou. In the future, it will continue to integrate the ET industrial brain with the manufacturing industry in Guangdong and promote the deep reengineering of the company's demand scene. The manufacturing industry in Guangdong has been transformed and upgraded intelligently. In the previous month, Aliyun undertook to build a national industrial cloud platform with the goal of serving 100,000 manufacturing companies nationwide.
At the Wuzhen conference venue, on the topic of promoting the deep integration of the Internet and the real economy, Tencent CEO Ma Huateng said that in the future, Internet companies will empower all walks of life to solve all the pain points.
Jingdong CEO Liu Qiangdong predicted that the digital economy can greatly optimize costs, efficiency and experience. In the next few years, the investment in the digital economy and the entire digital economy in China will be rapid.
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