He Hezhen: The Internet economy is not in opposition to the real economy.

Recently, the 2017 (16th) China Internet Conference opened at the Beijing National Convention Center. Academician He Hezhen, Chairman of the China Internet Association, expressed his views on topics such as the relationship between the network economy and the real economy, and artificial intelligence.

Academician of the China Internet Association, Academician He Hezhen

The following is the essence of Academician He Hezhen:

"The Internet economy is not in opposition to the real economy."

The Internet economy, as its name implies, is based on economic activities generated on the Internet. The narrower understanding, including search engines, online games, e-commerce, etc., are all areas of the Internet economy. In fact, with the penetration of the Internet, the application of many industries has gradually occurred and developed on the Internet. It should be said that the Internet economy is not limited to the consumer-oriented economy, including the emergence of Internet finance and Internet medical care.

What is a real economy? In the past, the real economy was based on the production, consumption, and service of materials, and the entire production and distribution process. But then someone extended to production, consumption, and service based on spiritual products. Based on a good understanding of matter, industry, agriculture, transportation, communications, architecture, and so on. Based on the spirit, it is the textbook and so on.

In this sense, I understand that the Internet economy is part of the real economy, but it is an economic activity that is more dependent on the Internet than the real economy. Therefore, the Internet economy is not in opposition to the real economy.

Another word that opposes the real economy is the virtual economy. The virtual economy is economic activity through capitalization and securitization. The virtual economy does not seem to look good, but in fact the development of the real economy is inseparable from the virtual economy. However, the virtual economy cannot overdo it. If it is overdone, it may not be to use capital for development, but to use capital for speculation. This will bring risks.

Therefore, in the Internet economy, Internet finance may involve components of the virtual economy, but the vast majority of the Internet economy is still the real economy. For a while, we said that the Internet is virtual. In fact, the Internet itself is an important part of the real economy. Of course, it has a virtual part, combining the virtual and the real, the economy can go to a healthy track.

"Everything in the real economy can be useful for the Internet."

The openness, inclusiveness, innovation, penetration, and globality of the Internet itself have become a platform for public innovation. In fact, the Internet itself has an industry, but I value the Internet as a universal tool. Consumer applications are starting to enter barriers, so they will be widely used in the consumer sector, but they will definitely enter the physical industry. So we call the real economy, the real industry, but I prefer to say that the Internet penetration of traditional industries will definitely happen.

Our industry generally has many links, such as marketing, but first, companies must produce a certain product. For example, Volkswagen entrusted China Unicom to help me analyze what age group of people, what level of income do you like to buy, and what brand do you like from your user communication data? What are the requirements for the interior decoration of the car? General market research is not necessarily possible. Through China Unicom's big data analysis, China Unicom has these user data, but can not take the original data out, through analysis, and then provide a consulting report to Volkswagen. I flipped through its advisory report and its advisory report was a 100-page PPT. I asked: How to collect money? He said: Very good, 1 page 10,000 yuan. I said: What is the charge? He said: Volkswagen thinks it is worth it, it can't get this data. This is the marketing aspect.

There are also many products that can be designed for product design. For example, the cooperation between Zhejiang University and Hangzhou Steam Turbine Factory has a long period of time. Now, re-simulation on the Internet can speed up the design process. According to Toyota Fiat, Nissan and other international automobile brand companies, online design and simulation can accelerate product development by 30%-50%, and there is no design power for most SMEs. Chongqing has a pig bajie network, which constructs a platform between 5 million SMEs and designers with design power. There are designers in the north and Guangzhou and Shenzhen to respond to this demand to design, do well, meet the requirements, The company pays again. In fact, design resources are better served across regions, and they are not asking for everything, but seeking to use them.

It can also be used in the manufacturing process. For example, the Hangzhou printed carpet is thicker, and the pattern of the printed carpet is easily deformed. The pattern is automatically corrected by the sensor and background software analysis, and then printed on it, so that it is printed very well. China is the world's number one in the printing and dyeing industry.

When processing products, Changzhou has a processing mobile phone shell factory, do not look at the mobile phone shell is very simple, very smooth, the tool can not do dozens of mobile phone shell will wear, if you do not change the quality can not be guaranteed, if you change in advance, the tool The utilization rate is low. Through real-time sensor big data analysis, it is very good to grasp when it is bad and greatly save costs.

Informatization applications are also needed in operation and maintenance management. Sany Heavy Industry has shipped a lot of construction machinery. How does the construction machinery start every day? It is decided whether the market will be good or bad next year. If the construction machinery sold to users is underemployed this year, the possibility of selling more next year will be less. On the one hand, it can detect the amount of work and judge the market. On the other hand, it can be found in time whether it is necessary to repair in advance and avoid the loss of customers. Therefore, there are also good uses in operation and maintenance.

In the production organization, Qingdao Red Collar has accumulated a lot of suit style libraries through big data. Users can choose to modify the design and choose fabrics. The company will receive your order, automatically typeset, tailor and personalize production. Although the cost of personalized organization production is 10% higher than mass production, the price of such a suit can be doubled. In the past, it was necessary to measure the size according to the user's regulations. Now, the front and side of the mobile phone are photographed, and then the height is marked, and the fitted clothes come out.

Logistics management, a Guiyang company, has connected millions of truck drivers and 500,000 truck owners on the platform. In the past, goods were shipped from Guiyang to Beijing, and when the goods arrived, the return journey was empty. Now, through smart distribution, the driver can save 50 billion fuel costs a year.

In the supply chain management, it will be double 11 in a few months. Ali can not be sent to the user immediately after the double 11 and no big skill can be done. Beforehand, analyze which areas users may buy. I once talked to Ma Yun, after the double 11, is it the entire off-season in November and December? He said no, generally double 11 may be off-season, many people put things on the Internet to the shopping cart. Analyze what is put into the shopping cart, know what you might want to buy, and put the goods in advance to your vicinity. Finally, the remaining logistics is very short, and you can guarantee faster.

Capacity allocation. Now that there is overcapacity, Ali has engaged in the Amoy factory and combined many garment manufacturers and fashion designers. There are many fashion designers who are creative, but they have no production capacity. Many garment factories have production capacity, but there are no orders. Ali matched them through the Amoy factory and applied the resources well.

After sales service. Shenyang Machine Tool Factory sells I5 intelligent machine tools. Now it is not for sale. Who wants to take this machine, and pays for the hourly use, which saves the initial investment cost of the customer, complete service support, reduces personnel and improves labor productivity. Many factories in the Northeast are now suffering from de-capacity, and it is distressed how to expand capacity to meet demand.

Every link in the real economy of the Internet can be useful. The key is how to use it well.

"Artificial intelligence can't leave the Internet."

Some companies say that we are now an artificial intelligence enterprise, not an Internet enterprise. To be precise, it is not just Internet companies that want to develop artificial intelligence, but artificial intelligence cannot leave the Internet. Some domestic Internet vocabulary comes very quickly. For a while, cloud computing, big data, Internet of Things, artificial intelligence, we sometimes go to a place, how do you develop cloud computing now? The local leader said that he is talking about cloud computing now, and now big data. This is tantamount to opposing these things, but in reality, these are different technologies in the development of information technology, and they are related.

“Needs five improvements”

I went to the enterprise to do some research, the information field is relatively hot, BAT, Huawei, etc. all hope to exert their strength in the transformation of traditional industries, but it seems that there is no strength, and traditional industrial enterprises, some have strength, technical strength, and funds, Like the Aerospace Cloud Network itself, some companies are exploring, but most SMEs are still waiting to see. Because digital transformation can't be bought simply and with money, if it is said that money can be bought by money, China is still relatively easy to do. The key is that companies that do not have universal software and equipment that can be used in all industries need to be transformed. Basically, the same industry, the German auto industry is not exactly the same as the Chinese auto industry, so the thing to buy must be transformed. While many of our companies are leaders in the traditional industry, there is a gap in information technology, and its own strength is not enough to support itself to digest the things it buys.

I talked to a foreign company. I said: Why don’t you help him with the transformation? He said: The cost of coming to China for on-site service is too high, so I only hope to sell it. At this point, there are many difficulties in promoting it, and some companies say that although I am still inefficient, I am still producing, and after turning it into automation, whether production will cause problems or lack of confidence.

Academician He Hezhen proposed five improvements:

First, talent. We need amphibious talents who understand both new and traditional industries. How is it abroad? The digital transformation of traditional industries is to buy something, and the digital transformation of foreign countries has turned itself. Boeing has used more than 8,000 kinds of software in designing and producing aircraft. Only 1,000 kinds of software have been bought in the market, and 7,000 kinds are developed by themselves. So Boeing is also a software company. GE is engaged in engine production, but the income from software information services far exceeds that of selling engines. People are transforming large enterprises. After the transformation is completed, there are two aspects of talents that can promote the integration of "two transformations". We are now defective in this respect. of.

Second, technical services. We not only lack technology, but SMEs are not simple governments to give it money to buy. The government can certainly do it. Some software can be used on this platform, but more importantly, how to provide a third-party service to help it improve. I believe that in the future industry, the production service industry may be more important than the products it produces, and it will have a greater impact. We have a gap in this respect.

Third, security. We are now better off the whole enterprise without network connection. If the information security is not kept up, the harm brought by the end will be even greater. In this respect, we cannot rely solely on the security capabilities of the enterprise itself, and we must have a strong national Safety support.

Fourth, reform. Any transformation will produce a new format. If we use the old rules, we must kill it. Some new formats are governed by old rules and may be problematic. We must promote the transformation of enterprises. First, the government needs to transform, and whether there is government innovation is the key to our integration of "two transformations."

Fifth, the law. If there is no corresponding legal guarantee, it is difficult to promote. There are many new legal and regulatory issues here. Including the digital transaction integrity environment is very well established, otherwise after the digitization, the whole process is often intelligent, it is difficult to do without such integrity protection.

I have an example where a Boston consulting firm evaluates our digital Internet contribution: In 2016, in the G20 countries, China's Internet contribution accounted for 6.9%, second only to the UK and South Korea, ahead of the US 5.4%; McKinsey evaluated 2013 China The Internet contributes 4.4% to the economy, and the United States is 4.3%. They all invest in the Internet from the perspective of expenditure. Accenture's evaluation is from human capital, as well as the quality of human resources and the capital invested in quality. In terms of proportion, the evaluation of the United States is more than 30%, the OECD is more than 20%, and China is only 10%. In this soft environment, we have a lot of gaps. This is worth our reflection.

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