Dong Xiaoying from Peking University: The biggest challenge of the digital economy is the transformation of traditional enterprises

China National Radio Tianjin June 29th News (Reporter Yi Jue) Digital economy has become one of the hottest words at the 2016 Summer Davos Forum, in addition to Industry 4.0 and intelligent manufacturing.

From a global perspective, how is China's digital economy developing? What are the current difficulties in development? What should China do? Dong Xiaoying, professor at Peking University Guanghua School of Management, was interviewed by a reporter from China National Radio.

Dong Xiaoying believes that the development of the digital economy needs to be observed from two levels.

First, looking at the society's readiness for the digital economy from the consumer level, China has nearly 700 million Internet users, which means that more than 50% of Chinese people have the opportunity to access the carriers of the digital economy.

Second, the digital readiness of the economic structure. First, at present, the Internet + related to people's livelihood has achieved great development, and BAT and the 92 listed Internet companies have made great contributions; the realization of digital connection has greatly reduced the transaction costs of society, and with the support of the Internet and information technology, credit management will be more perfect. However, for traditional enterprises, the degree of digital connection needs to be further improved. Taking the manufacturing industry as an example, the degree of global interconnection of all things is only 1% . Therefore, there is still a lot of room for development of industrial Internet, industrial Internet and Internet of Things , which are also the focus of Made in China 2025 , the US Industrial Internet and Germany's Industry 4.0 .

In Dong Xiaoying's view, the biggest challenge and difficulty of the digital economy is the digital transformation of traditional enterprises. The difficulty of digital transformation of traditional enterprises lies first in the transformation of people's ideas and concepts, and secondly in the construction of new technology capabilities and employee skills. Dong Xiaoying suggested that China should increase investment to promote the digitalization of industrial enterprises, accelerate the connection between industrial enterprises, between upstream and downstream enterprises, and even between consumers, and form an ecosystem.

In addition, if China wants to enhance its digital capabilities, it needs to strengthen its capabilities in five areas: first, digital connectivity capabilities; second, data value-added capabilities; third, network integration capabilities; fourth, cognitive analysis capabilities; and fifth, optimized configuration capabilities.

At the same time, as a major digital economy country, China should participate deeply in global governance, from the standards and management framework for device interconnection to the formulation of trading rules.