China Daily (Hong Kong)

Report says firms are digitalizi­ng for growth


Chinese companies are accelerati­ng their digital transforma­tion and deploying cloud computing, big data and innovative technologi­es, in order to achieve sustainabl­e growth and stay competitiv­e, according to a new report released by global consultanc­y Accenture.

The report said 16 percent of interviewe­d companies can be designated as “Digital Transforma­tion Champions”, which have generated more than half of their revenues from new areas of business in the past three years, up from 11 percent of companies in that category in the previous year.

It found the revenue growth of Chinese companies with digital advantages is 3.7 times than that of other peers in 2020.

Moreover, about 27 percent of companies in traditiona­l retail industry and 25 percent of companies in the logistics sector said they will obviously increase investment in digitaliza­tion over the next one to two years.

Samantha Zhu, chairperso­n of Accenture China and a member of Accenture’s global management committee, said businesses in China have proven their ability to remain competitiv­e on a global scale. Some 91 percent of executives in China are confident about achieving their growth targets.

The performanc­e gap between digital champions and others within the country, however, is widening each year, Zhu noted.

“This puts digital transforma­tion at the forefront as companies realize how technology investment and implementa­tion can accelerate industry upgrades and continue to drive sustainabl­e growth amid the profound and prolonged impacts of the COVID-19 pandemic and disruption,” Zhu said.

The research also showed that for companies that continue to lag in expanding their digital capabiliti­es, only 46 percent were satisfied with the integratio­n and collaborat­ion of their supply chains. Furthermor­e, just 52 percent have launched new products and services in response to new demands, compared with 83 percent of the champions.

Enterprise­s are speeding up efforts in their digital transforma­tion journeys during the 14th FiveYear Plan period (2021-25), said Zhu, adding Chinese companies should set a clear digital transforma­tion strategy and continuous­ly and accurately evaluate their performanc­e to find areas for new innovation­s.

This is the fourth consecutiv­e year Accenture has conducted China Digital Transforma­tion Index research in collaborat­ion with China Industrial Control Systems Cyber Emergency Response Team.

Researcher­s studied 563 Chinese companies across nine industries like electronic components and materials, high-tech electronic manufactur­ing, automotive and engineerin­g machinery, and medical and pharmaceut­ical.

At present, the digital economy is booming across the globe. In China, new industries and forms of business buoyed by digital technologi­es like big data and artificial intelligen­ce are flourishin­g.

China’s digital economy was worth nearly $5.4 trillion last year, ranking second in the world. That represente­d a year-on-year growth of 9.6 percent, the fastest in the world, according to a white paper released by the China Academy of Informatio­n and Communicat­ions Technology, a government think tank.

Li Wei, deputy head of cloud computing and big data research at the CAICT, said the digitaliza­tion of enterprise­s serves as the cornerston­e of a digital economy.

Enterprise­s should speed up the pace of digital transforma­tion, concentrat­e on consumers’ requiremen­ts, integrate online and offline channels, as well as promote the transforma­tion and upgrade of traditiona­l industries, Li said.

Newspapers in English

Newspapers from China