Download Digital Transformation Stories PDF

Digital Transformation Stories
Name: Digital Transformation Stories
Pages: 100
Year: 2017
Language: English
File Size: 6.04 MB
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Digital Transformation in the New ICT Era: What's Going on and What Will Happen Next Today's leading enterprises' exploration and adoption of best practices for digital transformation are reaching new heights. tor sensors from 12 or so in past designs to over 700 in today's modern elevators. These sensors collect vast amounts of information, such as the number of times elevator doors open and close, their location, environmental readings, and Closed Circuit Television (CCTV) data. Once this data is collected, it is uploaded in real time to the cloud in order to imple ment 'smart management' using Big Data analytics. This is just one example of the advances in elevator design and management, enabled via joint innovation between Schindler, a 100 year old elevator giant, and Huawei. There are many other examples of digital transformation best practices taking place today. In particular, logistics giant DHL is also working on solutions in close cooperation with Huawei, using industrial grade IoT hardware and infrastructure. These jointly developed solutions provide important data and ensure added visibility to warehouse operations, transportation of goods, and last mile delivery, creating a more integrated logistics value chain. Today, many enterprises are at the beginning of their digital transformation, and are hoping to use digital features to create new business models and roadmaps for their future. Huawei's position as a world leader in digital transformation has been recognized by many major enterprises who have selected Huawei as their partner for digital transforma tion, including 197 companies in Fortune Global 500 45 of which are in the top 100. ICT Insights Magazine is constantly searching for the best digital transformation practices from around the world. In this collection of Enterprise Digital Transformation Stories, over 20 Fortune Global 500 are featured. This compilation showcases leading digital transformation practices and insights into cloud computing, Big Data, the IoT, AI, and other emerging technologies. These technologies are being adopted in Utilities, Finance, Power, Transportation, Manufacturing, and other industries. We hope that the sharing of these experiences in the exploration of We hope that all our friends, old and new, will enjoy reading the compilation of case studies presented in this special issue, and hope it helps you discover your best path to digi tal transformation. Thanks for reading, we wish you the very best for your future success. 1


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Inside P1 Digital Transformation in the New ICT Era: What's Going on and What Will Happen Next Many enterprises are at the beginning of their digital transformation, and are hoping to use digital features to create new business models and P4 How Do Digital High Performers Win and Stand Out in the Digital Economy? P10 Hexagon: Analytics Show the Way P14 Behind the Scenes Big Data Solves a Series of Theft Cases in Shenzhen's Longgang District P18 Wujiang Police: Advanced Technology Improves Law Enforcement P22 Brisbane Skytower in Australia Opens a New Chapter in Smart Skyscraper Life P26 Accelerating FinTech Innovation Facilitates ICBC's Transformation and Development An interview with Lv Zhongtao, General Manager of the IT Department of ICBC P34 IT Transformation at China Construction Bank Helps Usher in a New Technology and Finance Ecosystem P38 China Insurance Giant CPIC Steps into the Digital Era P42 Huawei AgilePOL Helps Enel Push Forward Sustainability and Digitization P46 Smart Grids Open Up New Opportunities 2


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Publisher: ICT Insights Editorial Board, Huawei Enterprise Yue B No. 13154 Publishers: Catherine Du Heng Qiu Adviser: Jeff Peng Chief Editor: Lorra Liu Editors: Jane Chen Scott Jamar John North Simon Locke Pauline Zhang Issuer: Jing Chen Copyright Huawei Technologies Co., Ltd. 2017. All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means without the prior written consent of Huawei Technologies Co., Ltd. NO WARRANTY The contents of this magazine are for information purposes only, and provided 'as is.' Except as required by applicable laws, no warranties of any kind, either expressed or implied, particular purpose, are made in relation to contents of this document. To the maximum extent permitted by applicable law, in no case shall Huawei Technologies Co., Ltd. be liable revenue, data, goodwill, or anticipated savings arising out of or in connection with any use of this document.To read or download ICT Insights in electronic form, visit http://e.huawei.com/en/publications/global/ict_Insights To subscribe to ICT Insights, contact the Editorial Board. Email: [email protected] Address: H2, Huawei Industrial Base, Bantian, Longgang, Shenzhen 518129, China Tel: +86 (755) 28780808, +86 (010) 82882758 P51 Thailand PEA's Digital Transformation to a Smart Grid Starts from Its IP based Evolutio n P54 Huawei Partners with Dubai Airports to Build a Smart Airport P60 A Shared Journey: Customer Centric Innovation P64 Huawei Joins Hands with PCITC to Embrace Smart Factory 2.0 P70 ICT Supports Digital Transformation to Smart Cars P74 Fonterra Tackles Long Term Business Evolution with Ease P78 Huawei Helps COFCO Coca Cola Build an Enterprise Private Cloud Platform P81 Huawei's Partnership with Dongfeng Motors Drives Connected Cars ICT Integration Forward P84 Huawei Data Center Network Solution Assists Ikoula in Developing Cloud Hosting Service s P86 Criteo Expands Capacity for Big Data Services P89 TF1: Leading TV News Channel Works in a Cloud P92 Huawei Partners with Intel to Build a Supercomputing Cluster for DTU P95 y


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Digital Performance Index (DPI) Comprehensively Assesses the Digital Level of Enterprises The transformation from the traditional economy into the digital economy that China is experiencing is bringing in new ideas and business models, such as mass customization of products, the sharing economy, crowdsourcing, and crowdfunding. These new growth drivers are opening up new opportunities for the traditional economy, which has long been plagued by sluggish demand and excess capacity. The digital economy holds great promise for the future. Enterprises around the globe, large or small, are actively including digitalization into their growth agen da. Enterprises differ in their intentions to implement digitalization; however, the best practices of outstanding enterprises have proven that digitalization is never about merely improving internal technical expertise. Instead, it is to optimize and innovate enterprise operations with digital technologies. It is not something that only IT departments should pay attention to; it should involve all departments that are engaged in enterprise operations across the entire value chain. Accenture has developed the Digital Performance Index, or DPI, to quantita tively assess the level of digital investment and progress of global enterprises across four business domains: Plan, Make, Sell, and Manage. list, all leading enterprises in their countries, and used DPI to assess their digital levels. Of the selected enterprises, Chinese enterprises are compared with those above four functions (Plan, Make, Sell, and Manage). The analysis shows that enterprises in the four countries are all exploring the road to digitalization. In terms of digital level, all the leading enterprises scored less than 3 out of 4, and they all suffer similar weaknesses in digitizing internal management. It is also indicated that the digitalization of leading enterprises in China is as de veloped as in most of the developed countries. Overall, China is on a par with the US has much room for improvement, especially in the Plan and Make functions. How to Drive Business Performance: The Ultimate Question to answer through Enterprise Digitalization Enterprises make digital investments in order to improve their competitiveness and to secure a leading position in the digital age. But, in fact, there is still a lack Enterprises are now facing core questions about whether, when, and how digita lization can help them. C onstant investment is imperative for enterprises that expect to use digital technologies immersed in it. 5 Financial Performance (HPB Score) Digital Performance (DPI Score)Data Source: Accenture Business Leaders 19% of enterprises Digital High Performers 4% of enterprises Digital Leaders 19% of enterprises Prioritized DigitalAwaiting Rewards Enterprises made significant progress in digital capabilities, but failed to translate that into financial strength Achieved HighPerformance in theDigital World Enterprises with both strong digital performance and financial performance Maintained FinancialStrength With Legacy Enterprises have achieved strong financial performancewithout prioritizing digital Got by Without Digital Enterprises have survived in the past without building up digital capabilities The Rest 58% of enterprises


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Only four percent of those enterprises studied are able to couple broad levels of digital investment with a broad level of business success the enterprises we call the Digital High Performers. Business leaders lag far behind digital high performers in terms of their digital level, with a gap of up to 28%. >> To answer these core questions, we have introduced another tool: Accenture's High Performance Business (HPB) framework is used to thoroughly study the relationship between enterprise digitalization and business performance. Leveraging Accenture's DPI and HPB, each enter prise surveyed gets two scores: One for its digital level and the other for its business performance. The comprehensive analysis on the two scores helps us peep into the relationship between an enterprise's digital level and its business performance. In China, Accenture joined forces with National Industrial Information tegration of Informatization and Industrialization to survey 170 Chinese manufacturing enterprises. The results show that leaders in these enter prises are all aware of the huge power of digitalization to some extent, but most of them have not yet taken actions to make digital investments to improve business performance. Only four percent of those enterprises studied are able to couple broad levels of digital investment with a broad level of business suc cess the enterprises we call the Digital High Performers. Their digital These digital high performers strive to develop and execute business strategies based on digital technologies, which are the enablers and transformative drivers for legacy organizations. They can consolidate and reinvent core businesses and help enterprises tap into new business areas. Business leaders lag far behind digital high performers in terms of their digital level, with a gap of up to 28%. Ignorance of the power of digital will cost a fortune. A comparison of business performance between business leaders and digital high performers shows that digital high performers have more sustainable and quality growth than business leaders, especially in the four HPB dimensions: Profitability, Longevity, Positioning for the Future, and Consistency. The differences between digital high performers and other enter prises are quite visible. It is worth learning from their experiences in building advantages in terms of digital level and business performance. Digital High Performers: Secret Sauce for Standing Out? cess, we have thoroughly analyzed digital high performers by compar ing them with others. First of all, we compared digital high performers with business leaders to explore the value of digitalization for business leaders. Then, we compared digital higher performers with digital lead returns from digital investment. Findings include the following: Digital high performers have seized the megatrend of the digital economy and quickly adapted themselves to the market dynamics. They have achieved more healthy and sustainable growth by leverag ing digital technologies. Investors firmly believe that digital high performers can continuously enhance their values, and their market levels. Digital high performers are good at translating digital investments than that of digital leaders, with a 94% higher performance score. When digital leaders are using digital technologies to optimize processes and further by adding digitalization to their corporate strategies and paying continuous attention to creating more value with digital technologies. Plan: Enterprise Wide Transformation Rather Than Individual Process Fixes How far can enterprise digitalization go? How many returns can enter 6


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prise digitalization yield? This heavily relies on a clear and appropriate digital strategy. Digital high performers focus on leveraging digital tech nologies to accelerate enterprise wide transformation and stay ahead of the competition in the market. Digitalization has already changed the entire value creation chain. En terprises should shift their focus from the individual organization to the entire ecosystem and try to leverage the power of digitalization to mine maximum value from the ecosystem. Digital high performers consider digitalization as the core of their strategies. They also constantly improve their irreplaceable position in the entire ecosystem by interacting and sharing information with other industry players and join forces with them to shape the future of the industry. Make: Open Innovation to Build Digitized Operation Modes In the new economic environment, customers and consumers have increasingly demanding requirements for products and service experi ences. The 'All by Me' internal innovation approach is not only costly but makes it impossible to quickly adapt to fast changing markets and to withstand fierce market competition. Digital high performers excel in identifying the best resources in the innovation ecosystem and consolidating a variety of resources, such as consumers, suppliers, partners, and experts, into their own innovation systems. In doing so, they can provide the optimal experiences in a more innovative way and at greater speed. Sell: Enhance Value Proposition Based on Improved Customer Experience In the digital era, customer experience is vital to the success of any enterprise. Customers today have increasingly higher expectations and requirements. Every customer in the B2B or B2C environment is expect ing personalized experience. To meet their fast changing demands, enterprises must develop a new customer oriented service experience and maintain ongoing close contact with them. To be able to do this, enterprises need to continuously collect customer requirements while doing proof of concept, developing new products and services, and promoting them, in order to respond to customers' changing needs and provide products and services that never let them down. Digitalization allows enterprises to interact with customers continu ously. Customer services do not stop at the completion of product sales. Based on Big Data analytics, enterprises can continuously deepen their insights into customers, laying a solid foundation for constant improve ment of customer experience. This is exactly where the digital high performers outperform their peers. Statistics show that digital high per formers still keep in touch with their consumers in the after sales phase. They continuously collect consumer feedback using digital technologies Manage: Comprehensively Improve Enterprises' Flexibility and Adaptability with Continuous Assessment and Improvement Digital technologies have great potential, but unleashing this potential heavily depends on other capabilities of the enterprises. Using digital technologies to dramatically change an enterprise would be a pipe dream if the enterprise leaders still have an old fashioned mindset, the management system is not optimized, and the corporate culture of embracing transformation is not there yet. In the past, many enterprises valued only advanced technologies but ignored other capabilities that can give full play to such technologies, leading to a disappointing return on their investment. data driven corporate culture, and a systematic digital talent develop ment mechanism are needed. Digitalization cannot be completed over night but requires continuous assessment, adjustment, and evolvement ity and strong adaptability will be two important features of a successful digital enterprise in the future. 7


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Digital transformation is not 'the icing on the cake'; instead, it should go beyond the IT department. It needs to be launched and promoted by enterprises' top decision makers, making it a development consensus. >> Constant Investment and Long term Accumulation are Pre requisites for Enterprises to Make Business Performance Breakthroughs Using Digital Technologies Digital technologies are driving business changes, and the digital economy has bright prospects; however, the digitalization of enterprises is more than a technical thing; it is about the whole enterprise's trans formation. Enterprises who turn a blind eye to digitalization will lose competitive advantages in the long run. Huge investments without truly understanding digitalization cannot ensure any competitive advantages Digital transformation is not 'the icing on the cake'; instead, it should go beyond the IT department. It needs to be launched and promoted by enterprises' top decision makers, making it a development consensus. Besides, digital transformation needs to penetrate into the entire orga 1.31.21.41.61.82.02.22.42.63.2 2.8 3.0 1.41.51.61.71.81.92.02.12.22.32.42.52.62.72.82.93.03.10 3.1 Financial Performance Digital Performance Data Source: Accenture Average financial performance = 2.01 nization across all functions. Manufacturing enterprises can transform and 'Lead in The New' by promoting core business transformation and developing new businesses enabled by digital. Digitalization is not a single project, a one off task, or a project within a limited period of time. It is unrealistic if enterprises expect to produce after we group the sample enterprises by digital level and sort them in ascending order, the business performance of each group fluctuates around the average bar; however, when the digital level exceeds the up cent higher than the average. This shows that constant investment and long term accumulation are required if enterprises expect to achieve excellent performance leveraging on digital. Enterprise can finally penetrated into every aspect of their business practices. 8


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