Chinese companies keen to disrupt their business models with digital
COMPETITION for Chinese companies, in domestic and international markets, is quite fierce.
As a result, businesses are keen on leveraging technology to transform themselves into more smarter, intelligent, and more efficient organizations.
According to a recent survey of 221 Chinese companies across nine industry sectors, by Accenture and the Zhongguancun Alliance for Integration of Information Technology and Real Economy in China, 67 percent of businesses said new innovations driven by technology will be their top priority over the next two years.
Further, 54 percent of respondents said they are exploring new business opportunities.
However, the most interesting thing that the study found was that 9 percent of businesses surveyed were re-inventing their business models by digitizing themselves. As a result, generating more than half of their revenues from new business areas.
Compared to last year’s study, there was a 2 percent growth in companies re-inventing their business models by digitizing themselves.
“Chinese Companies have demonstrated great determination to digitize their organizations against the current complex business environment. But to stay ahead of the competition, business leaders need to achieve disruptive growth and reinvent businesses and ecosystems,” said Accenture Greater China Chairman Wei Zhu.
The study pointed out that those using technology to transform their business model and generate more revenues from new business areas regard “scaling the new” as the top priority in their five-year plan, while other companies only focus on the improvements of their current operations.
The report also found that when measuring digital investments, these leading companies attach the greatest importance to the potential to create disruptive growth (cited by 57 percent), while other companies most value immediate financial returns (cited by 60 percent of the other companies).
To help businesses in China as well as those outside the country looking to transform their business models and create new revenue opportunities using digital, the report suggests:
- Making a future-ready digital strategy to capture growth opportunities
- Building and leveraging a digital ecosystem to accelerate synergies between core and new businesses
- Integrating R&D, production, supply chain, and customer services to reimagine processes and operating models
- Making every product and every service smart to create new and differentiated experiences
- Building a highly resilient, liquid, and agile organization to enable rapid business expansion
Since customers are increasingly expecting companies to provide them with more intuitive products and services in the digital age, it’ll definitely pay to re-invent business models to meet those expectations.
Companies that leverage digital and factor in the suggestions made by the report will definitely gain an edge in an increasingly competitive, crowded, and challenging marketplace.