Ren Wenqing Andy

In recent years, digital intelligence has been a hot topic in the industry, with almost all manufacturers considering how to embrace it. As an industry observer, I have been tracking and reporting on cases of digital intelligence. When discussing digital intelligence, one cannot avoid mentioning digital intelligence service providers. According to statistics, there are currently about a hundred professional digital intelligence software service providers in China, most of which focus on a specific vertical industry or field, but there are also those dedicated to providing one-stop solutions for enterprise digital intelligence, such as Yonyou. When mentioning Yonyou, the first thing that comes to mind might be their financial software. Founded 35 years ago, Yonyou has been well-known as a representative of domestic ERP software. But you may not know that Yonyou has now become a leading global enterprise cloud service provider, ranking in the global ERP SaaS market TOP 10, and is the only Asia-Pacific vendor selected. Every year, Yonyou holds the Yonyou BIP Technology Conference. On April 20, I was invited to attend this year's conference and paid special attention to Yonyou's progress in the FMCG industry. You may not know that many brands we consume daily, such as Uni-President, Feihe, Haitian, Juewei, COFCO, Liuliu Orchard, Jinmailang, Guanshengyuan, and Wuzizui, are actually using Yonyou's digital intelligence services. Next, I will share with you the content and thoughts I learned from this conference.

Data Has Become an Important Factor of Production

At this conference, Yonyou proposed a statement: With the advancement of enterprise digital intelligence, more and more enterprises need to upgrade their digital intelligence foundation. Why do we say that? This starts from the core of digital intelligence. Why have all industries been promoting digital intelligence or digitalization in recent years? Essentially, it is because data has become an important factor of production. Based on economic theory, land, labor, capital, and technology are the four major factors that drive production. Enterprises must have these factors to produce output. Macroscopically, economic growth is the result of the combination of these factors. However, the problem is that in recent years, the supply of these factors has encountered certain bottlenecks. Land prices remain high, the population is accelerating into aging, capital expansion without restraint has brought regulation, and underlying revolutionary technologies are still in their infancy. The marginal benefits of traditional production factors are diminishing, and we urgently need to find new production drivers. This is data. We have heard many examples of data-driven growth, such as using big data algorithms to find precise consumer groups, analyzing their consumption preferences, and iterating products in reverse to achieve rapid growth. In the past few years, the emergence of various e-commerce formats, from the prosperity of Taobao brands, to the emergence of group brands, and then to the rise of Douyin brands, are actually the result of massive internet data empowerment. It can be said that internet companies are native digital companies, naturally data-driven. But the problem is that there are still many industries in China, such as industrial chemicals, equipment manufacturing, energy, transportation, agriculture and animal husbandry, FMCG, etc., which are not internet-native, but they also generate a large amount of data. Can we tap the value of this data to guide production and marketing decisions, help enterprises reduce costs and increase efficiency, and accelerate industry transformation and upgrading? Of course we can. This is actually what digital intelligence is about. But for these enterprises, it is very difficult to make good use of data as a production factor. On the one hand, the enterprise chain is very long, including procurement, production, channels, marketing, etc., and each link is complex internally. How to obtain effective data is a problem; on the other hand, current digital intelligence software is segmented services, with inconsistent data standards, making it difficult to connect the entire chain, and unable to guide decision-making through overall data analysis. The Yonyou BIP-iuap platform just solves this problem. iuap includes "three middle platforms + three platforms": business middle platform, data middle platform, intelligent middle platform, and technology platform, low-code development platform, and connection integration platform. According to Yonyou, this provides an enterprise with a digital intelligence foundation, where enterprises in different industries can build their own business scenarios on the platform, and digital intelligence systems of different business applications can be integrated based on it, without worrying about inconsistent data standards and inability to connect, avoiding the dilemma of repeated tossing, changing, and rebuilding in enterprise digital intelligence construction.

Helping Food and Beverage Enterprises with Digital Intelligence

Yonyou has been deeply involved in digital intelligence for many years. In 2017, Yonyou strategically invested in R&D for BIP. In August 2020, it officially released Yonyou BIP (Business Innovation Platform). In 2022, it released the milestone new product "Yonyou BIP 3", from platform technology, application architecture to domain and industry scenario services, striving to build an ecosystem, create a leading digital intelligence business innovation platform, and promote enterprise digital intelligence transformation and upgrading. In order to better serve customers according to industry characteristics and promote digital intelligence in various industries, at the beginning of 2023, Yonyou underwent organizational reform, upgrading from the previous region-based "region + industry" organizational model to an industry-based "industry + region" operating model, creating industry-specific value for customers in domain scenarios. Now Yonyou is divided into 23 industry customer and solution business units, including food and beverage, discrete manufacturing, consumer goods, process manufacturing, equipment manufacturing, energy, transportation and logistics, public utilities, modern services, agriculture and animal husbandry, etc. It can be said that Yonyou plays an important role in the digital intelligence of various industry sectors. Taking the food and beverage industry as an example. Yonyou serves 6 of China's top 10 milk powder brands, 45 listed food and beverage companies, and 60% of provincial and municipal salt companies in China. Uni-President Enterprise, through the Yonyou BIP platform, has built an operating platform for thousands of distributors and millions of terminals, constructing an F2B and 2b digital marketing industry internet. Feihe has in-depth cooperation with Yonyou in comprehensive business-finance integration. When cooperation began ten years ago, it was only 2-3 billion in scale, and now it is a large dairy enterprise with annual sales of 25 billion. COFCO, a Fortune 500 company with 200,000 employees worldwide, has its HR digital intelligence built on the Yonyou platform. Juewei Duck Neck, through the Yonyou BIP platform, its intelligent factory, fully automated factory manufacturing, has created a new height for prefabricated factories. Currently, Yonyou ranks first in market share in the digital intelligence of large food and beverage enterprises in China. Because it can provide one-stop solutions for digital intelligence transformation, Yonyou has become the preferred service provider for digital intelligence transformation of food and beverage enterprises.

Building an Ecosystem to Provide One-Stop Services

However, as we mentioned earlier, from supply chain, production and manufacturing, to marketing, channels, and services, the chain involved in enterprise digital intelligence is very long and the process is very complex. Can Yonyou really provide all solutions? The answer is no. Yonyou provides one-stop services from consulting, to implementation, to organizational capabilities. What does that mean? For example, digital intelligence at the marketing end is an important part of enterprise digital intelligence. Many FMCG companies are now doing one-item-one-code. In this field, Yonyou cooperates with Shanghai Yisu Technology to achieve full-chain digitalization through one-item-one-code technology, completing real-time online of people, goods, places, expenses, and strategies, bringing certainty to brand sales growth. Shanghai Yisu is one of Yonyou's ecosystem partners. Yonyou has more than 2,500 such ecosystem partners. At the annual Yonyou BIP conference, ecosystem co-prosperity is an important topic. For enterprises, from obtaining data, applying data digital intelligence, to ultimately achieving intelligence, it is actually the result of digital connection and ecosystem collaboration. To achieve this result, it is necessary to have a solution based on ecosystem collaboration. What enterprises need is not one company solving all problems, which is unrealistic. What they really need is ecosystem-based, platform-based services. The low-code development platform YonBuilder in Yonyou iuap has 1.1 million active developers, more than 2,300 enterprise atomic components, more than 10,000 scenario applications, and more than 1,000 partner ecosystems, helping enterprises achieve rapid application construction and innovation. The connection integration platform YonLinker in Yonyou iuap enables enterprises to achieve open interconnection and simplified integration in hybrid cloud environments, and provides 4,343 API interfaces (public cloud), with an average daily call volume (public cloud) of over 15.23 million, and daily requests (public cloud) of over 1.3 billion. In addition to platform capabilities, Yonyou iuap helps enterprises upgrade their platform application system comprehensively through digital intelligence engineering systems and sustainable operation systems, allowing enterprises to enjoy the convenience and value brought by new technologies such as cloud computing, big data, and artificial intelligence from tool chain construction to operation. At the same time, Yonyou provides a value-based domestic substitution solution combining "digital intelligence + information technology application innovation", and helps enterprises achieve domestic substitution in five steps: consultation and diagnosis, decoupling and reconstruction, value solutions, smooth implementation, and agile iteration. In summary, based on the Yonyou BIP-iuap, which is more business-savvy, technologically leading, and system-complete, enterprises can not only upgrade their digital intelligence foundation, but also obtain open and industry-specific services provided by Yonyou BIP in conjunction with ecosystem partners, achieving digital intelligence innovation and development from an overall and long-term dimension, rather than just obtaining point-like and short-term services.

Written at the End

In February this year, the Central Committee of the Communist Party of China and the State Council issued the "Overall Layout Plan for the Construction of Digital China", pointing out that "building Digital China is an important engine for promoting Chinese-style modernization in the digital age." In fact, as early as April 2020, the state issued the "Opinions on Constructing a More Perfect Institutional Mechanism for Market-Oriented Allocation of Factors", which clearly proposed the concept of digital factors. Making good use of data as a production factor is the source of economic development in the next decade and the key for enterprises to achieve transformation and upgrading and continue to maintain growth. It can be said that digital intelligence or digitalization is a topic that all enterprises must face now and a development opportunity that must be seized in the next decade. Doing digital intelligence well cannot be separated from the support of digital intelligence platforms. Yonyou and many digital intelligence service providers will play an important role in this process. New Distribution, focusing on the FMCG industry, will continue to provide readers with digital-related content, including reports on service providers and case insights. Welcome to continue following.