{"id":12540,"date":"2023-12-14T15:58:58","date_gmt":"2023-12-14T07:58:58","guid":{"rendered":"https:\/\/www.kingdee.com.hk\/uncategorized\/12540\/"},"modified":"2023-12-14T16:27:17","modified_gmt":"2023-12-14T08:27:17","slug":"%e5%85%a8%e7%90%83%e7%94%a2%e6%a5%ad%e9%8f%88%e9%87%8d%e5%a1%91%ef%bc%8c%e6%95%b8%e7%a2%bc%e5%8c%96%e5%a6%82%e4%bd%95%e6%8e%a8%e5%8b%95%e4%bc%81%e6%a5%ad%e7%a0%b4%e5%b1%80%e5%87%ba%e6%b5%b7%ef%bc%9f","status":"publish","type":"post","link":"https:\/\/www.kingdee.com.hk\/en\/blogs\/12540\/","title":{"rendered":"The Global Industrial Chain Is Being Reshaped. How Does Digitalization Drive Companies to Break Out and Go Global?"},"content":{"rendered":"\n
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600 years ago, a huge fleet led by Zheng He (\u912d\u548c) set out from Nanjing and opened up the Maritime Silk Road, connecting China with the world. 600 years from now, when “globalization” has become a “must answer” for every enterprise, with the deepening of the “Belt and Road” and “Dual Circulation” strategies, China’s demographic dividend has gradually faded and the growth rate of Internet traffic has peaked, and some domestic markets have become saturated, going overseas has become a “must option” for companies to open up a new growth curve.<\/p>\n\n

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From electric cars independently developed in China, to trendy toys that combine art and commerce, to coffee and milk tea for RMB $9.9 a cup, they are opening stores overseas, expanding, making money, and even exporting culture. There was a long queue on the opening day of Hey Tea’s first store in London; Mixue Bingcheng opened its store in Sydney, Luckin opened seven stores in Singapore, and China’s independent car brands are being sold to Southeast Asia, Japan, and Europe. BYD, SAIC, NIO, Nezha and other brands are very aggressive. In the first half of the year, China’s automobile export volume surpassed Japan for the first time and ranked first in the world.<\/p>\n\n

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However, the cycle is ups and downs. After setting off a wave of Nuggets frenzy, the company seems to have fallen into an adjustment period. After competition intensifies and involution passes, the entry threshold for new players is also constantly improving. At the same time, overseas consumer demand is overdrawn and the economy is facing many uncertainties. It turns out that the era of “laying down and making money” has passed. Not only players, but also capital is more cautious about investing overseas.<\/p>\n\n

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However, this also indicates that the overseas market is ushering in a wave of new possibilities and opportunities. With the traditional methods of playing increasingly ineffective and the rapid development of the digital economy, the digitalization level of enterprises in different links of the value chain such as production, R&D, and manufacturing has been significantly improved. Technological empowerment has greatly promoted the pace of enterprise globalization and has also given rise to the emergence of Develop new business models and provide new opportunities for manufacturing industries to go overseas. Refinement, branding, globalization, digitalization… have gradually become the consensus of industry development. If you want to stay successful in the overseas field, digitalization has almost become an unavoidable topic.<\/p>\n\n

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New ChallengeEnterprises are Working Hard to Move Forward When Going Overseas<\/strong><\/p>\n\n

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Chinese companies’ overseas expansion has already spread to Europe, America, Southeast Asia, Latin America, the Middle East, Africa and other parts of the world. Achieving safety compliance risk compliance and improving operational management capabilities are the primary challenges for companies going overseas today.<\/p>\n\n

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The regulation of data and privacy in various countries around the world is intensifying. India has blocked a large number of Chinese apps and removed them from shelves. Incidents such as huge GDPR fines in Europe have occurred frequently. This has also forced companies to start paying attention to overseas security compliance and other related matters. Safety and compliance have become the top priority for Chinese companies going overseas. In addition, geopolitical risks, intellectual property risks, legal risks, exchange rate risks, internal control risks, etc. may become headwinds on the voyage.<\/p>\n\n

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At the same time, as overseas operations enter deep-water areas, localized operations have become a key factor in decision-making, including complying with the data sovereignty of overseas countries and regions, and providing users in various countries and regions with needs and services that meet local characteristics, etc. While continuing to allocate resources efficiently on a global scale, we need to do a good job in localization from the three dimensions of pipelines, products, and operations, including conducting precise marketing, providing timely after-sales and technical support, and understanding cultural differences, so as to better integrate into the local area business ecosystem.<\/p>\n\n

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Accenture found in its survey that enterprises will face challenges such as risk control, compliance, cultural differences, difficult management and control, and slow decision-making in the process of globalization and internationalization. The report highlighted the “five major pain points.” Specifically, 82% of “going overseas” companies believe that local regulatory policies and regulations are complex and diverse, and compliance requirements are getting higher and higher; up to 55% of “going overseas” companies believe that there are differences in cultural environments and communication barriers seriously affect local integration and operational efficiency; 41% of “overseas” companies admit that due to the lack of effective management methods, it is difficult to ensure that local business is implemented on time and with high quality; 38% of “overseas” companies face shortages in supply chains such as raw material procurement Issues of flexibility and agility; another 38% of companies \u201cgoing overseas\u201d also pointed out that the business operation methods in various regions of globalization are highly differentiated and complex.<\/p>\n\n

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In addition, using new technologies and tools to achieve efficient cross-border collaboration and empower employees and supply chains are also issues that companies going overseas must solve. Companies going overseas need to constantly cultivate their internal skills, and at the same time, they must rely on digital capabilities to develop and establish themselves overseas. Relying on the dividends brought by digitalization, they must innovate and optimize their global operating systems and strategic cooperation ecosystems in order to achieve sustained profitability.<\/p>\n\n

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New Kinetic Energy<\/strong>Digitization Provides a Fast Lane for Companies to Go Global<\/strong><\/p>\n\n

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China’s manufacturing industry has developed into a complete manufacturing system in the world. Driven by the domestic and international dual cycles led by advanced manufacturing, manufacturing companies are moving from extensive to high-quality development. In the process of expanding their overseas territories, companies are developing and constructing digital. The ability to communicate is crucial.<\/p>\n\n

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Overseas companies have more complex and complex requirements in digital transformation. Not only the supply chain, but also every link such as the marketing team, financial team, and strategy team must be digitalized to bring about overall innovation. Digitalization is one of the essential capabilities for enterprises to go overseas and is an important driving engine for enterprises to go overseas with high quality.<\/p>\n\n

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First of all, digital technology can help enterprises establish a global business system, quickly implement transnational remote collaboration models, and overcome cultural and language barriers to achieve localized operations and customer services in overseas markets. Secondly, in overseas markets, digital technology can improve the company’s product information dissemination and sales channels, and realize the construction and operation of business models such as Internet digital marketing, social media, e-commerce, mobile applications and SaaS, thereby improving the company’s business expansion. In addition, digital technology can improve the business efficiency and execution capabilities of enterprises on a global scale, especially in cross-border logistics, procurement, sales, finance, etc., and can achieve high-quality technical support and data summary, management, and analysis.<\/p>\n\n

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As the world’s leading cloud service provider, Kingdee has always adhered to the concept of “Thinking Globally and Acting Locally” and provided strong support for enterprises to go overseas. In this era of globalization, the development of enterprises is no longer limited to the local market, but needs to be oriented internationally and seek broader development space. However, entering the international market requires overcoming many challenges, and digital transformation has become the key for enterprises in this process.<\/p>\n\n

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Kingdee actively responded to the digital transformation needs of enterprises and formulated a three-tier framework for international products. Based on the Kingdee Cloud\u00b7Cosmic PaaS platform, it built a global business framework and SaaS applications. This framework has become a strong support for enterprises to implement internationalization strategies, take inventory of product capabilities, gain an in-depth understanding of target customers, formulate R&D strategies, and plan product blueprints.<\/p>\n\n

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In the process of digital transformation, Kingdee not only provides product-level solutions, but also focuses on the construction of the overall business ecosystem. From products, delivery, community to ecology, Kingdee provides enterprises with a full range of consulting and implementation solutions. This collaborative effort ensures that companies receive the most appropriate support at every stage of digital transformation and protects them in the international market.<\/p>\n\n

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Among them, the construction of localized operation capabilities is particularly important. When entering the international market, companies need to conduct localized operations based on the culture, laws, regulations, consumption habits and other characteristics of the target market. Kingdee’s “Localization Action” concept fully takes this into consideration and provides enterprises with solutions with local characteristics to help them adapt to the local environment and better serve target customers.<\/p>\n\n

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Through close cooperation with enterprises, Kingdee can better understand their needs and provide customized digital solutions. This kind of cooperation is not limited to the product level, but also includes strategic planning, market implementation, risk management and control, etc. to ensure that the company’s road to overseas is moving forward steadily.<\/p>\n\n

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With its profound technical strength and global thinking, Kingdee provides strong digital transformation support for enterprises going global. Through global business frameworks and SaaS applications, Kingdee helps enterprises avoid risks, build localized operational capabilities, and work with partners to create a successful path to overseas markets.<\/p>\n\n

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New ModelDigital Transformation Catalyzes the Overseas Expansion of Data and Industry<\/strong><\/p>\n\n

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In the past 10-20 years, “Made-in China” products have become famous all over the world. As the world’s largest export trading country, China exports a high proportion of products, raw materials, and semi-finished products. As globalization accelerates and market competition becomes increasingly fierce, companies not only need to sell products overseas, but also promote production, branding, operations and other factors internationally to form industries overseas to improve their market influence and competitiveness. Going overseas is an inevitable choice for enterprises to achieve globalization and diversified development.<\/p>\n\n

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In the process of industries going overseas, digital transformation plays a key role. Transformation not only standardizes the enterprise’s operation and management processes and reduces risks, but also provides enterprises with more opportunities. Comprehensive consideration of digital transformation requires comprehensive consideration of factors such as cost, enforceability, data security, and financial compliance to formulate a comprehensive digital transformation strategy to achieve coordinated development of industry overseas and data overseas. For small and medium-sized enterprises, ready-to-use digital system can not only solve digital problems, but also reduce costs and empower users, helping enterprises accelerate digital transformation.<\/p>\n\n

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At the same time, data is an intangible asset of an enterprise. In the process of the industry going global, the globalization of data can help enterprises obtain a wider market, more efficient data analysis and more accurate decision-making. Therefore, data export has become a new demand for enterprises. Data overseas means transferring corporate data to overseas regions to achieve data globalization. This process involves the transmission, storage and processing of data, as well as transnational data flows and data protection regulations in different countries. In recent years, many countries have promulgated laws and regulations related to data security, increasing the risk of data going overseas. Before implementing data overseas, enterprises need to conduct a comprehensive risk assessment, choose reliable data transfer and storage solutions, ensure data security and privacy protection, and at the same time properly handle cross-border cultural differences, ensure the accuracy and availability of data, and achieve data overseas\u2019 true value.<\/p>\n\n

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Among them, financial compliance is an important link in the process of companies going overseas. It is not only a supplement to data compliance, but also another professional challenge faced by companies. There are differences in accounting standards, asset policies, financial statements, etc. in different countries and regions, which requires companies to quickly understand these differences to ensure that overseas financial operations comply with local regulations and standards.<\/p>\n\n

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When facing this challenge, cost and enforceability are key factors that SMEs need to consider in particular. SMEs often have limited resources and capital and therefore need to find solutions that are affordable and easy to implement. Ready-to-use digital system has become a wise choice. It can not only help companies solve digital problems, but also empower users, lower professional barriers, and improve companies’ understanding and ability to respond to financial compliance.<\/p>\n\n

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Kingdee Cloud\u00b7Galaxy is a SaaS service platform created for the digital transformation of growing enterprises. It quickly empowers enterprises with global management capabilities and helps them achieve stability and success in the process of globalization. Based on global service capabilities, it provides configurable and scalable services. The engine service framework supports the differentiated needs between countries and regions and generates national local language packages with regional differences. The local language packages of each country provide different accounting subjects and financial templates according to the accounting policies of different countries, allowing enterprises to unpack and use. At the same time, based on the principles of data local storage area, data desensitization and data encryption, PDPR and PDPA compliance policies are implemented to reduce the company’s local business compliance risks.<\/p>\n\n

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In addition to business compliance, companies going global also need to solve localized language, time zones, currencies, exchange rates and other issues to achieve rapid integration. Kingdee provides global basic capability frameworks and services such as multi-language, multi-time zones and multi-exchange rates to help companies solve basic regional obstacles, quickly integrate into the local area. After the business is integrated into the local area, the corporate headquarters can easily face different regions, different accounting standards, and different accounting calendars around the world. Galaxy\u00b7Ultimate consolidated statements provide multi-criteria global consolidation capabilities, unify accounting policies, foreign currency conversion, offset through various adjustments, unify reporting currencies, and unify reporting templates, allowing corporate headquarters to quickly consolidate reports from different regions and make quick decisions, helping products to go global. Export production and brands overseas, starting a new journey of globalization.<\/p>\n\n

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At the same time, the role of new technologies in empowering industries to go overseas has become increasingly prominent in the process of digital transformation. The close integration of cloud computing and industrial development is deeply empowering industries to go overseas. When Chinese traditional industries face difficulties in going overseas, cloud vendors can provide stable and mature infrastructure and local legal and compliance knowledge and experience, and use data and wisdom to empower global businesses of innovation. Artificial intelligence (AI) opens a new chapter for traditional industries and creates a new pattern of “digital overseas expansion”. AI+ further innovates the operating model and business model by reshaping the technical functions of products and services, and creates a new pattern of “digital overseas expansion”.<\/p>\n\n

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From a long-term perspective, globalization is definitely an irreversible theme. And by transforming from cost-effectiveness advantages to supply chain advantages and technological advantages, Chinese brands are bound to stir up the world in the future. However, whether it is to go overseas or to find a way to go overseas in the saturated domestic market competition, in the face of future development opportunities, we need to be prepared to embrace continuous innovation in technology and changes in business models. Only by actively embracing digitalization can we ride the wind and waves.<\/p>\n\n

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About Kingdee Cloud\u00b7Galaxy<\/strong><\/p>\n\n

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Kingdee Cloud\u00b7Galaxy is the market leader in high-growth enterprise SaaS management cloud. It is far ahead in customer satisfaction, market share and customer renewal rate, ranking first in market share for four consecutive years.<\/p>\n\n

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Based on the leading assembleable low-code PaaS platform, Kingdee Cloud\u00b7Galaxy fully serves customers’ transformation in R&D, intelligent manufacturing, marketing, supply chain, finance and other fields. It has supported advanced management concepts such as IPD, Lean, and Amoeba for 34,000 customers. Practice, together help enterprises to comprehensively improve their “product strength, customer acquisition strength, delivery strength, word-of-mouth strength, and profitability” and reconstruct the company’s digital combat effectiveness.<\/p>\n\n

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Want to know more about Kingdee Cloud\u00b7Galaxy? How does the Kingdee Cloud\u00b7Galaxy ERP system help enterprises implement digital transformation? Contact our Kingdee consultant now for free.<\/p>\n\n

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600 years ago, a huge fleet led by Zheng He (\u912d\u548c) set out from Nanjing and opened up the Maritime Silk Road, connecting China with the world. 600 years from now, when “globalization” has become a “must answer” for every enterprise, with the deepening of the “Belt and Road” and “Dual Circulation” strategies, China’s demographic […]<\/p>\n","protected":false},"author":4,"featured_media":12049,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77,79,102],"tags":[111,110,109],"search-category":[],"class_list":["post-12540","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","category-digital-transformation-en","category-erb-to-ebc","tag-companies-break-out","tag-digitalization","tag-industrial-chain"],"_links":{"self":[{"href":"https:\/\/www.kingdee.com.hk\/en\/wp-json\/wp\/v2\/posts\/12540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kingdee.com.hk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kingdee.com.hk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kingdee.com.hk\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kingdee.com.hk\/en\/wp-json\/wp\/v2\/comments?post=12540"}],"version-history":[{"count":1,"href":"https:\/\/www.kingdee.com.hk\/en\/wp-json\/wp\/v2\/posts\/12540\/revisions"}],"predecessor-version":[{"id":12541,"href":"https:\/\/www.kingdee.com.hk\/en\/wp-json\/wp\/v2\/posts\/12540\/revisions\/12541"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kingdee.com.hk\/en\/wp-json\/wp\/v2\/media\/12049"}],"wp:attachment":[{"href":"https:\/\/www.kingdee.com.hk\/en\/wp-json\/wp\/v2\/media?parent=12540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kingdee.com.hk\/en\/wp-json\/wp\/v2\/categories?post=12540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kingdee.com.hk\/en\/wp-json\/wp\/v2\/tags?post=12540"},{"taxonomy":"search-category","embeddable":true,"href":"https:\/\/www.kingdee.com.hk\/en\/wp-json\/wp\/v2\/search-category?post=12540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}