Nowadays, many enterprises are undergoing digital and intelligent transformation, either as native digital enterprises or as those forced to transform. At the same time, many are pondering how to transform, where to direct the transformation, and what to transform. From March 14 to 16, the 9th China FMCG Innovation Conference with the theme "Supply Chain Revolution" was held in Chengdu. Ms. Yu Dongyun, Deputy General Manager of the Consumer Goods Industry and Senior Solutions Expert at Yonyou Network, attended as a guest speaker and delivered a keynote speech titled "Digital and Intelligent Transformation of the Consumer Goods Industry: Exploration and Practice" to over 2,000 manufacturer representatives and FMCG professionals from across the country. "New Distribution" has compiled the essence of Ms. Yu's speech for the benefit of our readers. Currently, the economic environment, political and legal environment, social and cultural environment, and technological environment have undergone many changes, and these changes happen to create the necessary conditions for digital and intelligent transformation. Given these necessary conditions, how should consumer goods enterprises direct their digital and intelligent transformation? Consumer goods enterprises are built on three core competitive advantages. First, product-centricity Xiaomi is product-centric, with all its product R&D centered on consumers. Our enterprises have shifted from product-centric to experience-centric, relying on consumer experience for personalized R&D, design, flexible supply chains, and personalized custom production. Second, people-centricity The entire marketing transformation centered on consumers is also something that enterprises focused on the industry chain need to pay attention to. It places more emphasis on the integration of upstream and downstream, including upstream, supply chain, downstream, and distributors. The ecosystem dynamics across the entire industry chain are the core of competitiveness. Third, innovation-centricity In the manufacturing sector, a series of innovative changes are taking place in organizational models, assessment rules, and technology. Around these three core competitive advantages, we find that the consumer goods industry needs to gain insights into all consumer goods enterprises. Therefore, in digital and intelligent transformation, the following five capabilities should be built:
First, refined enterprise management. They aim to identify more dimensional, massive, big-data-based data that supports business decision-making and intelligent support, for refined management. Second, timely decision support, so that all operational dynamics and business data analysis can be seen in real time, enabling prediction of future development, market space, product trends, and product life cycles. Third, systematic marketing operations. Enterprises will establish unified online and offline store management standards to build their core competitiveness in the industry chain. Fourth, agile market response. Fifth, intelligent business decision-making. Around these points, it becomes clear that when enterprises undergo digital and intelligent transformation, they essentially need to build it from aspects such as technology, enterprise awareness, business application scenarios, and deep integration of data-driven approaches. Throughout the transformation process, it is evident that digital and intelligent transformation is first and foremost a top executive project; secondly, it must align with the enterprise's goals and strategy. At the same time, based on the alignment with strategic goals, continuous changes and transformations are made around various business scenarios. In the past five years, when serving many enterprises, a common issue has been that enterprises initially built their information systems on multiple scattered platforms with inconsistent technical architectures, making platform technology integration difficult. In terms of platform technology, building an integrated platform foundation and plug-ins for various applications on top of it is a crucial first step for all enterprises in digital and intelligent transformation. In this process, the application of new technologies is particularly key. For example, digitalization and intelligence are integrated into production, management, marketing, and all aspects of industrial collaboration. Engineering system means treating all digital transformation technologies as an engineering system to build a series of standardized management norms for delivery, operations, support, and maintenance. Organization—digital transformation definitely relies on organizational empowerment, so how to empower the enterprise and drive high-quality development is also a key consideration during the transformation. To enhance competitiveness, including the upgrade and introduction of new technologies and architectures. Transformation in the marketing domain. For marketing transformation, many enterprises call it omni-channel marketing. In reality, channel transformation often involves large enterprises as the core, driving the linkage of the entire industry chain's upstream and downstream to provide better services to terminals. At this point, it becomes clear that core enterprises not only serve distributors and dealers but also collaborate with them to serve end consumers. This is the construction and architecture of the entire omni-channel marketing chain. In the supply chain domain, the focus is more on building a resilient supply chain. When your enterprise becomes product-centric or people-centric, you will find that the demands on the supply chain increase, and the planning and resilience of the supply chain affect the entire upstream and downstream of your enterprise chain. In Yonyou's solutions, the focus is more on pulling the upstream and downstream, with the core enterprise's supply chain planning system in the middle. Transformation in the manufacturing domain. More and more enterprises are beginning to think about AI intelligence, scheduling, advanced algorithms, and how these advanced algorithms can guide the efficiency and sustainability of scheduling in their enterprises. Transformation in the human resources domain. Empowering employees and activating the organization are very important focuses. In this area, many enterprises are no longer concerned with just counting heads and paying salaries correctly, but rather with precise talent development, talent profiling, agile organizational decision-making, excellent employee experience, and flexible workforce management. The key is to ensure the rationality of "recruitment, employment, retention, and development." Enterprise talent profiles, talent capability comparisons, organizational capabilities, and routine analysis are pushed in real time to front-end business teams. Nowadays, enterprises are increasingly concerned with flexibility. In the entire employment process, attendance and scheduling are becoming more complex, so how to solve these problems to improve efficiency is particularly important. In terms of employee experience, the need is to handle tasks conveniently and serve employees. All processes can be handled comprehensively via mobile phones. Yonyou's intelligent human can solve all employee issues within the enterprise; employees can ask it any question they don't understand. This is a key scenario in employee digital transformation. Therefore, in the digital transformation process, the real beneficiaries are not only enterprise management but also middle management and employees. In the financial domain. Enterprises face multi-system integration, and the integration of business and finance is a challenge for many enterprises. Business-finance integration is not simply data transmission; during integration, data gradually degrades. When looking back at business from data, we find that we can understand very little. So now more and more enterprises are focusing on the breadth and precision of business-finance integration, emphasizing process integration and data integration—that is, how to connect business and finance through processes and how to integrate data. This is also the first "event middle platform" launched by Yonyou in the past three years, which solves the problem of all front-end business multi-dimensional data entering the financial system to form "one data, two reports": one reflecting external financial disclosure reports, and the other reflecting internal management reports. Therefore, it requires extremely rich data dimensions, and it can support subsequent data services and data analysis. This is different from previous data integration. All business activities and events are connected to the business-finance integration event middle platform, and then reports are generated from the platform based on different management dimensions to provide data support for different customer groups. This is completely different from the previous concept of simply transmitting data and generating vouchers, and its biggest advantage is that all information is traceable. Many enterprises are doing BI analysis, but BI analysis is more of a functional tool, not a service-oriented platform or tool. We give it formulas to extract reports. This achieves the transformation of big data platforms from functional to service-oriented. With the integration of AI, we find that we have a lot of data that can serve front-end business, enabling business innovation, production, operations, etc. For example, LIGAO Foods uses data services to help the enterprise with digital transformation, analyzing front-end customer profiles, procurement pricing comparisons, per capita revenue, and other data dimensions to support its front-end business standards. In recent years, more and more enterprises have invested in data, which is closely related to national policies. The state has issued regulations on data assets being recorded on the balance sheet, meaning that all investments in data, as well as the operational value capabilities data brings to the enterprise, including subsequent continuous investments, can become enterprise assets. So this is a positive development for enterprises. I hope everyone can think about their future digital transformation strategies based on this. 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