Abstract
Under the situation of an epidemic, the new industry based on digital technology and the rise of new platforms has injected new vitality into many economic subjects and enterprises, also bringing a series of new challenges such as digital asset security, digital financial risk, and platform monopoly. China is no exception. As one of the world's major economic entities, China has begun to emphasize the importance of digital economy for real economy or enterprise transformation; through government support and related policies, enterprises' own transformation planning has brought new opportunities for digital economic development. This chapter will focus on China's digital transformation of intelligence. Through data integration and data collection, the author conducts academic research on the characteristics of transformation, policy regulation, case studies, and existing shortcomings and challenges of smart management in China's digital transformation.
TopBackground
According to the World Economic Forum (2016), digital transformation represents an immense opportunity to create value for both industry and society, promote social equality, and even surpass the value of industry.
Walkme (2020) defined digital transformation as an ongoing effort to rewire all operations for the ever-evolving digital world, by adopting the latest technologies to improve processes, strategies. Expressions may vary, but most definitions of digital transformation tend to revolve around the same theme. Digital transformation is the use of digital technology to transform business processes and services from non-digital to digital. This includes, for example, using technical devices and tools to communicate and collaborate, and automating processes to move data to the cloud.
The spending of global digital transformation shows a trend of steady increase year by year (Figure 1). “IDC has forecast global digital transformation spending to exceed $10 trillion over a five-year period,” said Craig Simpson (IDC, 2021). Over the past decade, China has become a leading global force in several areas of the digital economy and is home to one-third of the world’s unicorns (Woetzel et al., 2017). In e-commerce, for example, about a decade ago, China accounted for less than 1 percent of global transaction value, but now it is more than 40 percent (Smith, 2018).
Figure 1. Spending on digital transformation technologies and services worldwide from 2017 to 2024 (in trillion U.S. dollars)
The digital economy is based on digital knowledge and information as the key factor of production, digital technology as the core driving force, modern information networks as an important carrier, through the deep integration of digital technology and the real economy, and continuously improving the level of digitalization, networking, and intelligence, accelerating the reconstruction of economic development and the governance model of the new economic form, according to digital economy development in China (2021).
Key Terms in this Chapter
Emerging Industry: A new economic sector or industry that emerges with the birth and application of new scientific research results and emerging technologies.
Big Data: A large-scale data collection that greatly exceeds the capabilities of traditional database software tools in terms of acquisition, storage, management, and analysis.
Internet Plus: Use information and Internet platforms to integrate the Internet with traditional industries, and use the advantages and characteristics of the Internet to create new development opportunities.
Digital Transformation: Established on the basis of Digitization and Digitalization, further touch the company's core business, high-level transformation with the goal of creating a new business model.
Internet of Things: An information carrier based on the Internet, traditional telecommunication networks, etc., which allows all ordinary physical objects that can be independently addressed to form an interconnected network.
Digital Talents: Employers have ICT-related digital skills.
Industry Digitization: With the support and guidance of a new generation of digital technology, the process of digital upgrading, transformation and reengineering of all elements in the upstream and downstream of the industrial chain. AU134: Reference appears to be out of alphabetical order. Please check