"In the future, every grain of sand may have its own IP address."
Now it seems that this description seems to be unconstrained, but it is undeniable that this is the most exciting description of the future development of the Internet of Things industry that I have seen, and it is the most telling of endless associations.
No matter which stage of the Internet of Things is developed, it can't get rid of the impact of the overall situation of economic operation on it. This is a complementary and mutually reinforcing relationship. We can see some clues from relevant research reports. Accenture predicts that the Industrial Internet of Things will create a new output value of $14.2 trillion globally in 2030, while China will add $1.8 trillion in new production value.
There is a basic premise for these forecasts, which is based on the overall state of the current economic operations, current policies and investment trends. As far as the general rule of spiraling economic development and the basic situation of the country's political economy are concerned, China's economic base, industry development, policy-driven, investment-pull and other factors will be less likely to fall than the current one, but it is not equal to the government, Relevant industries, IoT practitioners, investors and other 15 years of maintaining the status quo can also meet Accenture's forecast, still need to continuously invest in infrastructure construction, data policy, personnel training, etc., lay a good foundation to support the development of industrial Internet of Things . It can be said that these 15 years are the development of the industrial Internet of Things industry, the collision of ideas and ideals, the collision of capital and market, the collision of policy and execution, the collision of input and output, how spectacular!
Collision between idea and ideal
The Internet of Things is definitely not a new concept. Many of the concepts related to it have appeared in history and technology development, such as industrial platforms and industrial Internet platforms. So we can say that the Internet of Things is actually an idea that represents our expectations and yearnings. Different from the past, when talking about the Internet of Things in today's technological context, we get ubiquitous interconnections, including mobile phones, refrigerators, cars, glasses, etc., all of which are interconnected, which seems to have "ideal". The taste is gone.
Interconnection will bring massive amounts of data, but if you can't extract effective and valuable information, this kind of interoperability can be said to be meaningless. So at this level, advances in data identification and artificial intelligence are becoming more valuable. For enterprises, the purpose of building a so-called platform must be aimed at profitability, that is, companies need to examine their business models at the outset and find ways and means of profitability. Speaking further, companies may also need to consider more profound factors such as the development of ecology.
Under the current new normal, in the face of economic downward pressure, traditional industry business owners urgently need to find new business models that reduce costs, improve efficiency, and increase profits. Enterprises are also thinking more about the transformation of business models. Switching to the Internet of Things means digital driving for productivity. For example, the data collected by the sensor can analyze the behavior characteristics of the target user for us, and then help the company to improve in product, market, marketing, after-sales and other aspects. In fact, a number of foreign companies have already made corresponding attempts, such as Michelin, Caterpillar, etc. With the help of the Internet of Things, their product sales model has been transformed into a service profit model, which is the so-called results economy, which further transforms us. The way of living and working, optimizing the channels of communication between the company and its customers.
Even with ubiquitous connectivity, we must have the idea that the Internet of Things must ensure the privacy of our customers, truly customer-centric, meet their needs, provide personalized service, seamless customer experience, and take real-time action. Initiatives that ultimately reduce costs while optimizing products and services.
It is true that we need to consider the technical challenges of deploying the Internet of Things and the challenges from within the enterprise, but let us not forget the many benefits it can bring to the enterprise, society and the world. There will always be a distance between the idea and the ideal, perhaps just a piece of paper, but there will always be differences between the two. The ideal impact of the concept, the ideal traction concept. Because of this, the future becomes clearer and more real.
Collision between capital and market
In the past five years, the explosive growth of the Internet has continuously transformed the way of consumption and communication in human society, and the mature consumer Internet ecosystem has taken shape. At the same time, China has the largest number of Internet users in the world. The total size of mobile Internet users has reached 905 million in July 2015 [TH1]; the number of 4G users is currently 287.323 billion. By January 2016, the number of 4G users will be More than 3G users [TH2]. The huge market base has contributed to the success of the consumer Internet, from the rise of BAT and its market value.
Under the market economy, the allocation of social resources will first follow the market operation mechanism. The maturity and success of the consumer Internet has stimulated the deepening of the Internet exploration by traditional industries. At the same time, in the face of economic downward pressure, traditional industry business owners also urgently need to find new business models that reduce costs, improve efficiency, and increase revenue. We have seen the advancement of the traditional corporate Internet in the fields of production, manufacturing, and finance.
The Internet has created enterprise-level applications such as industrial manufacturing and industrial collaboration, and promoted the transformation and upgrading of traditional industries. This is not only the exploration of the digitalization of traditional industries, but also the prototype of the industrial Internet of Things, and also a collision between capital and market.
The Industrial Internet of Things is based on smart, connected devices and machines that help companies expand into new digital services and business models. As far as China's enterprise-level market is concerned, on the basis of consumers' full embrace of digital technology, the upstream and downstream enterprises in production and manufacturing are encouraged to create a digital convergence market; after understanding the potential of digitalization, executives of enterprises encourage enterprises to vigorously adopt cloud computing and data. New technologies such as analysis, radio frequency identification technology and industrial internet improve the efficiency of production and operation of enterprises. Government policies also support future digital infrastructure, Internet penetration and mobility, and provide facilities for the maturity of the Industrial Internet of Things.
The market is improving, and the capital with the original profit-oriented properties will continue to flood into the market under the influence of various factors mentioned above. The industrial Internet of Things will become the next darling of the capital market.
Policy and enforcement collision
The development of the industrial Internet of Things follows the operating law of the market economy, and behind the market economy, it requires the guidance and stimulation of macroeconomic regulation.
In 2015, the overall characteristics of China's economic operation were steady, slow, steady, stable, and worrying. The differentiation in various fields was intensified. The favorable and unfavorable factors coexisted in the process of power conversion, and the downward pressure on the economy continued to increase. The annual GDP growth was 6.9%, and the CPI rose by 1.5%. Looking forward to economic growth in 2016, China's economic development has not changed in the long-term fundamentals. However, due to the overlapping of structural and cyclical factors, economic operations will still face greater downward pressure next year.
This is the reality of the current economic development under the new normal, how to transform and upgrade traditional industries, and seek new economic growth points to promote China's new round of economic growth has become the focus of the industry and academic circles to try and research. For the time being, full application Digital technology will be a good recipe.
According to the Accenture Digital Density Index Report, a 10 point increase in digital density over a five-year period (100-point scale) will boost the growth rate of gross domestic product (GDP) in developed economies by 0.25%, compared to emerging economies. The increase can reach 0.5%. This is the “digital density†that Accenture has collaborated with the Oxford Economics Institute to measure the penetration of digital technology in companies and economies across the world, and to explore new economic growth points in the future and evolve. The input and output model of the industrial Internet of Things.
At the same time, the report found that by 2020, if China's digital density increased by 10 points, the annual growth rate of total factor productivity will increase by 0.65%, and the average growth rate of China's GDP will increase by 0.5 percentage points in the same period. China is expected to achieve The new production value of 418 billion US dollars, which also shows the growth dividend brought by digitalization.
("Digital Density Index Report" country score ranking)
China's digital density needs to increase by 10 points to get a huge digital growth dividend, but this is not easy to achieve. As can be seen from the above figure, China's current digital density ranks only tenth among the 17 major economies. Although it is ahead of developed countries such as Japan, France and Italy, it is located in the Netherlands, the United States, Sweden, South Korea and other countries. And there is a big gap.
The filling of the gap requires the dual role of a dynamic market and precise macro-policy regulation. As far as the development of industrial Internet of Things is concerned, the Chinese government has formulated a number of policies to support the development of the industry. In 2013, the government proposed a target of 1.2 billion fixed and mobile broadband data network users by 2020, and the average broadband speed of urban and rural households increased to 20 Mbps and 4 Mbps respectively. The National Informatization Development Strategy formulated the Chinese digital economy. The long-term goal of development. In addition, at the micro level, the "Internet +" action plan, the "Promoting the Big Data Development Action Plan" and other policy measures will strongly support the development of the Industrial Internet of Things.
The introduction of a number of Chinese government policies has promoted the development of the Industrial Internet of Things and strived to realize the economic value of the Internet of Things. As an important part of the Industrial Internet, the dividend of the Industrial Internet of Things has also been fully demonstrated, and it is expected to alleviate the productivity growth rate of China's slowdown. To promote the development of cross-industry ecosystems, at present, the primary confrontation is the collision between policy and implementation.
Collision between input and output
There are a large number of Chinese SMEs and the ICT levels are uneven. At the same time, some manufacturers have a misunderstanding of ICT, and believe that simply implementing automation is ICT.
Although some business owners realize that Internet transformation needs to integrate digital technology into the core of strategy and organization, reorganize operational models such as R&D and supply chain, and use cloud computing, data analysis and customer relationship management technologies to achieve key business process reengineering. However, in the face of huge enterprise ICT investment costs, the slow income and the obvious effect hinder the development speed of enterprise informationization.
Enterprises are more conservative with the input and output of digitalization and informationization, which will cause serious obstacles to the realization of the dividend of the industrial Internet of Things. Fortunately, Accenture's survey of global executives found that more Chinese executives believe that digital technology will play an important role in their business in the near future, with 55% of Chinese companies high. Pipeline believes that technology-based productivity growth will be the most important factor in improving its competitiveness, exceeding factors such as skills, regulation or infrastructure.
This means that the industrial Internet of Things will have a first-line vitality at the most basic level of landing, which will have an important impact on the determination of enterprise digitalization, information investment and output.
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