Cloud computing, big data seen as key to helping boost sector
Although there are many concerns that the manufacturing industry may be losing its advantages in the new era of Internet and big data, entrepreneurs at the 2015 China Green Companies Summit held on Monday are confident about the coming industry revolution.
This new era brings challenges to the manufacturing industry but it also provides opportunities, entrepreneurs said at the summit in Shenyang, Northeast China's Liaoning Province.
"Cloud computing and big data are changing the manufacturing industry just like what electricity did to the industry 200 years ago," Tian Suning, chairman of China Broadband Capital Partners, said at the summit.
Manufacturers used to focus on transactions but had little idea about how customers used products, however, now cloud computing technology enables producers to collect and store all data from manufacturing to sales, with which manufacturers will have a comprehensive knowledge of their products and customers, Tian said.
With cloud computing, big data and intelligent terminals, the manufacturing industry will recapture its past role as the core engine of the economy and manufacturing will be more economical and market-focused, according to Tian.
Yin Jian'an, chairman of Xi'an Shanngu Power Co, also stressed traditional manufacturing companies had to adapt to the changing market.
"We [manufacturing enterprises] have been used to attaching great importance to technology and efficiency but the Internet reminds us that what we should be concerned about most is customers' needs," Yin said.
Paying more attention to customers' needs also helps enterprises to reduce cost and avoid overproduction.
Liu De, co-founder and vice president of Beijing-based smartphone maker Xiaomi Inc, said his company has achieved production cost covered by customers' payments made seven days in advance.
He also expressed confidence in China's manufacturing industry.
China's excellent factories have been underestimated in terms of value but in the next five or 10 years, they will become outstanding and be great choices for investors, Liu said, noting China has experienced factory management teams which will help strengthen the industry.
"Modern enterprises are experiencing rapid changes and low-cost operation choice provided by the Internet," Liu said. "I suggest that companies should be brave in trying and correcting mistakes."
Ralf Schlaepfer, strategic growth managing partner of Deloitte, agreed with Liu and said those who can accept failures can make progress ultimately.
Many people blamed their difficulties on the financial crisis but they are wrong, said Qu Daokui, president of Siasun Robot and Automation Company.
He noted that the difficulties faced by the manufacturing industry are due to the need for adaptation in the new era.
"Manufacturing companies can be new players if they can catch up with the revolution, otherwise they will be in a hard situation," he noted.
