Current situation and the beginning of this century the Internet is hot similar. Smart home, smart city, car networking, edge computing and smart sensors, health and health are hot topics. Large enterprises, such as GE, explore the possible value of various things in their own empire. GE even in the Silicon Valley next to the Ramon San Town, set up a new software center. If one day the GE software center to become the headquarters of GE, we are not surprised, because we are in a transition from the traditional manufacturing to the transition starting point.

How to define and do the transformation, the United States have their blueprint for the United States and germany. And for us, this transformation is more urgent. This is because our manufacturing industry is in a state of upper and lower extrusion. On the European and American countries manufacturing reflux, with advanced technology to improve competitiveness, there is a lower cost of Philippines South American countries to catch up with the South American countries (Vietnam labor costs about half of China).

On the other hand, China is a manufacturing country, manufacturing accounted for about 1/3 of GDP (to a certain extent, the economy of our country, the origin of manufacturing). And the proportion of the GDP, Germany, Japan in the 1/5 or so, in the United States is lower. So how to maintain the competitiveness of manufacturing industry, not only the problem of the existence of enterprises and the people, but also a strategic development of the country.

After many years of development, the Internet of things has become the first choice for manufacturing industry transformation. Will be "material" into the "net", the concept is not complicated. However, the reality is that, to achieve this transformation, the process is long and extremely painful. I estimate that China's manufacturing industry in ten years will be a big reshuffle. And there are three kinds of shuffling results:

1 not transformation. Bankruptcy is the only way out.
 

2 transition is not successful. Many reasons. Failure is a choice of alternative.
 

3 only a few enterprises will be successful in transition, and will be in the leading position in the world, and to achieve the goal of "made in China 2025".

This will be a successful transformation of the number of enterprises is how much, now do not know, if there is 25%-30% is a success. Why only a few will succeed in transition, many reasons. There is a lack of technical solutions, strategic awareness, and so on. Throughout the current discussion and implementation of the Internet of things, focus on the strategic. Focus on large enterprises more. Focus on the "thing" on the more. Involving small and medium manufacturing, especially how to operate, almost few. So the outlook is not optimistic. So to achieve the manufacturing industry and the successful transformation of intelligent manufacturing, the need for technical content, but also the need for strategic thinking.

On the hope that the use of things to enhance their competitiveness of manufacturing enterprise leaders, the author listed the following several aspects will be the success of the elements:

(1)  first, the value of the Internet of things.

We have a lot of cognitive errors. And these errors will lead to strategic decision-making mistakes. How to balance the understanding of the value of things, is the first problem.

A.    first manufacturing industry is not a pure technical problems. The transformation of manufacturing industry is a strategic business proposition. It is a business transformation, not a technological transformation. Because we are now in the initial stage of the transformation, many value has not yet formed or can be defined with the definition of tangible. These values are strategic. Specific to a plant's investment return, profit, no ready-made formula can be set. McKinsey Co estimated that the transformation of the Internet of things will be 30% of the value added. This is just a general macro forecast. Although not quantitative estimates of value, there are still a lot of data to help understand the value of various links or departments. Proposed to prepare the transformation of enterprises with a workshop, a department of the form to the specific.

B.      The value of is not only to reduce costs, but also in the emerging new business opportunities in the transition. These opportunities will be achieved through large data analysis and market adjustment. For example, today you sell a machine, is 100000 yuan. Sell it, and your income will be over (and there may be a later period of maintenance). We have proposed a new business model that can be used as a service to the Manufacturing a Service (as, MaaS), this service, not only the machine itself, but also the data (DT, including software), data will be sold as part of the machine. There is a similar pattern of sales. For example, the elevator as a monthly operating costs (expense Operating) sales rather than by fixed assets (expense Capital) sales. Such thinking can help promote vertical markets and expand the horizontal markets. These are the opportunities and challenges that we haven't met. This new business opportunity, will be the focus of the development of the object. Business leaders, to spend the largest resources to explore new business opportunities. If your transformation does not appear new revenue, this transformation is a failure.

C.    technically speaking, the Internet of things is not only the "thing", the "Internet" problem, although the "union" itself is a big proposition (the hundreds of billions of "things" together, not easy). But there are two layers of deeper meaning.

First, if the previous three industrial revolution is to liberate people's physical labor, the information revolution is to promote the human brain. So software, data will play a decisive role in this transition. 80% of the resources will be used in the data, software, integration. If your solution is only to solve the labor force (for example, the installation of a new automatic machine), then you only reached a part of the target.

Second, the "linked" object, it is people, "material" and "data", the three is not. To a certain extent, the process is within the scope of the "union". For example, through the interface, the enterprise ERP system will also serve as a "thing". Here to mention, I think CISCO's slogan is relatively landing, it is called IoE (of Everything), is the world". But it seems that there is no more people with the slogan of the slogan.

D.    last point is very important. The Internet of things is "information technology (IT)", not "running technology (OT)"". Industrial robots, automated production lines, are a must. But these OT are local techniques. Internet of things will be through the enterprise, supply chain, customer, tangible "thing", data and people's comprehensive technology. So OT is a subset of IT. But OT history is long, easy to be accepted by all. For the comparison of the original manufacturing, the first OT is a wise choice. For enterprises that already have a considerable degree of OT technology, it can be directly connected to the Internet of things.

(2)    start a new business model.

And all the people to start a business, manufacturing high transition threshold, return period is long, not a few software engineers have an idea can be in the garage. Need private enterprises, government, scientific research cooperation. This is a new business model.

A.     financing changes.

And Internet technology is different, manufacturing industry in transition need to have a large number of assets into (machine, equipment, plant, understand the process engineer, mechanical engineer). The starting point for the beginning of the enterprise (customer) is defined in the location, and not simply a simple customer. From the entrepreneur, is often the beginning of a business to have customers. For large enterprises, it can take their own incubator. For example, IBM, PTC, GE are used in their own resources and become a model for the manufacture of things. For small and medium enterprises, to find a good partner. And the transformation as a business to look at.

B.      transformation is not repetitive.

A wide variety of manufacturing. Different operating techniques, operating environment, customer object. From a high point of view, the way the idea is similar. However, specific to an enterprise, the need to discuss the business model of the enterprise, customer distribution. To understand enterprise business. There is no shortcut to this step. Some people ask the author, the most difficult is the manufacturing industry transformation. I think the most difficult is how to understand the business model of the enterprise (model business) to design a set of enterprise digital architecture. And the architecture design is not replicated.

C.    transformation projects must be removed impetuous mentality.

Throughout the current venture tide, intelligent manufacturing less and less. Because it's a hard and long reporting cycle. The winner will be the one who is the one who is the one who is the one who is not in the first goal of economic return. Economic returns will be a by-product of success. Need is meditation, discussion, design, communication. Each enterprise, workshop, there are different needs to explore the unknown. Although sensors, network, cloud technology matures, but industry standards, data security, specific sensor development, user interface and other technical issues, there are still a lot of work. Now the advantage is that the western countries in the initial stage. There is a writer and CISCO's Internet of things to discuss, think of manufacturing industry networking, China is in the first phase of the United States (CISCO think things are divided into four stages).

D. time

And other business. Manufacturing transformation has a strong time limit. Indecision and wait and wait, will be the biggest enemy of the successful transition. As the leader of the enterprise, it takes courage to take the risk and become the first person to eat crab. The waves had come out.

D.     restructuring plans to start from scratch.

Many small and medium enterprises, there is no very basic IT facilities, such as ERP, EDI, the central HR system, enterprise local area network, real-time asset tracking system, Email, data center, etc.. So be ready to start from scratch. This work is a challenge, but also an opportunity, because you can design a step before the IT infrastructure.

(3)    the development of intelligent manufacturing leaders.

The transformation of the Internet of things will generate a new group of all climate personnel. At present, small and medium manufacturing enterprises, to fully grasp the IT, things, big data and cloud computing and other cutting-edge technology is very rare. This is related to our investment in IT. According to Gartner's report, software and high-tech industries, the IT budget in the total revenue of 6-7%, for the industrial manufacturing industry, it should be around 2%. Now the IT investment in our country, now far below the average. Low investment leads to a lack of talent. Because of the opportunity to present things, these are generated in the transformation of the technology business elite, will be the next generation of China's leader in intelligent manufacturing team.

A  Special guidance.

How to find a small and medium sized manufacturing to cut the entrance, sharing experience. Very few. Now things fair, and not many of the results of the manufacturing industry. Because of the manufacturing sector, more is the solution and the value of the embodiment. I believe that a special for small and medium manufacturing industry, the Internet of things, there will be a great role in promoting. This association, which can absorb the Internet of things professionals and traditional manufacturing professionals.

B. intellectual property rights.

Because of the transformation of the existing enterprise than the establishment of a new enterprise more difficult, no one after the ancients, there will be a large number of intellectual property rights. Data security, standard, intelligent sensor, software module, etc.. These enterprises have the intellectual property rights, will be the key to enhance the status of enterprises. Business leaders must take intellectual property as one of the indicators of successful transition.

Intelligent manufacturing industry transformation, a long way to go. However, leaving a mighty wave crashing on a sandy shore, in the manufacturing industry elite.