From “digitization” to “digital intelligence”, digital intelligence will become the next battlefield

Digital intelligence has been applied in many industries, including retail, tourism, automobile, Internet, medical treatment, education, energy and so on, and has become an important part of the whole economic activities.

In 2021, meituan’s “everything comes home” business did very well. Since 2021, meituan has begun to vigorously layout the front warehouse access in major cities across the country, and strengthen the access to convenience stores and supermarkets. Through this strategy, the distribution efficiency of meituan has been greatly improved, and the concept of “everything comes home” is deeply rooted in the hearts of the people. Relying on the layout of “everything comes home”, meituan has achieved very good results in 2021.

The so-called front warehouse is to move the traditional distribution center from the outer suburbs of the city to all parts of the city and closer to consumers. The emergence of front warehouse enables consumers to enjoy faster distribution services; The emergence of front warehouse solves the problem of “the last kilometer” in fresh food distribution.

However, in this process, how to make the location layout of the front warehouse, how to make the best combination of riders, merchants and consumers, and how to accurately deal with the complex data in the distribution process have become a difficult problem for enterprises.

With the social development and technological progress, the continuously improved digital intelligence technology is more and more applied to various industries. Relying on the current application of digital intelligence technology, more and more e-commerce enterprises have been empowered, and the business model of “Exhibition + storage + trade” has the possibility to be realized in e-commerce enterprises.

Digital intelligence is not only changing the business model of enterprises, but also changing our way of production and life. The innovative era of digital intelligence has come.

From “digitization” to “digital intelligence”

For many people, the term “digital intelligence” may feel strange. However, if the term “digital” is mentioned, it is almost well known.

In the eyes of many people, digitization and digital intelligence seem to be similar, and there is little difference between them.

In fact, digital intelligence and digitization are two completely different concepts. Digitization is only a simple technical concept, and digital intelligence belongs to the industrial application of digital technology. Although the two have certain connections, they are not the same in essence.

If we want to trace the origin of the concept of digitization, it can be traced back to the 1940s. At that time, in the sampling theorem proved by Shannon, everything can be included in the calculation of 0 and 1, and any concrete image can be abstracted into numbers and digitized. This theorem has become the predecessor of the concept of digitization.

As the world as a whole enters the Internet era, digitization has become a hot topic in society. For a long time, digitization has been frequently mentioned by countless enterprises, institutions and even individuals. However, how to realize digitization and how to make digitization benefit social development and people’s life has become a difficulty.

To achieve “digitization”, we need not only technological progress in cloud computing, artificial intelligence and big data, but also the construction of infrastructure, the change and improvement of the whole social system, and the advance of people’s way of thinking. In the process of this progress, the concept of “digital intelligence” was born.

For the concept of digital intelligence, we can simply understand it as the combination of digitization and intelligence. Its essence is the interconnection of all things, and the first level is connection; The second level is data value refining; The third level is efficiency application empowerment, and the value of data falls to the application scenario.

Li Fei, general manager of kedahuochuang, once explained the concept of “digital intelligence” at the 2021 China international big data industry Expo: “the core of digital intelligence is to open up the” end-to-end island “of the original data and solve problems in combination with scenario based on massive big data and artificial intelligence related technologies.”

In May 2021, KPMG and Alibaba cloud jointly released the 2021 consumer digital intelligence operation white paper at the 2021 Alibaba cloud summit. The white paper focuses on the necessity for enterprises to carry out digital intelligence transformation. The big data shows that enterprises with good digital intelligence transformation not only have outstanding performance during the epidemic, but also have sustained growth in the “post epidemic” era.

In the documentary “China on the cloud – the surging future of digital intelligence” co authored by financial writer Wu Xiaobo and Alibaba cloud, a phenomenon related to digital intelligence is also described: how do some traditional manufacturing enterprises solve problems through digital intelligence operation in the face of industry difficulties such as inventory backlog and sudden epidemic impact, It has also created performance beyond imagination.

Digital intelligence, the next battlefield

As a technology application that has been implemented, digital intelligence plays a positive role in promoting the development of all walks of life. Digital intelligence plays an important role in the strategic decision-making of many enterprises.

In the new retail industry, the implementation of digital intelligence application technology has played a great role in promoting enterprises.

With the gradual increase of orders for new retail platforms in the community, in order to ensure the balance of interests among loss, timeliness and cost, the current mainstream new retail enterprises in the community, such as buying more vegetables and meituan optimization, have basically formed a three-level warehouse allocation and performance system of shared warehouse (cooperative warehouse), central warehouse and grid warehouse. The construction of this performance system depends on the transformation and optimization of the supply chain by digital intelligence.

The logistics industry corresponding to the new retail in the community has also been greatly affected by the innovation of digital intelligence technology.

Alibaba’s rookie international logistics has launched the intelligent order combination function. When overseas consumers use the same address to place shopping orders in different stores on express, the system will use the intelligent order combination function to package the goods from different merchants, and then package them into a package again and send them to consumers. Through intelligent order combination, rookies not only improve the logistics timeliness, but also reduce the logistics cost.

With the empowerment of digital intelligent logistics technology, rookie’s cross-border e-commerce logistics parts, through the improvement of intelligent supply chain and algorithm, realize the traceability of full link logistics details, and solve the situation that the cross-border package segmentation details were not visible in the past. It enables people to track packages from time to time and improves people’s shopping experience.

At the same time, it is equipped with intelligent equipment such as digital assembly line and cross belt sorter, centralized transportation warehouse specially for intelligent order combination, and distribution center with fully automatic sorting mode and sorting equipment and self-developed intelligent distribution system, which not only improves the efficiency of sorting parcels, but also reduces the sorting cost.

JD’s digital intelligence construction in the logistics industry is also unwilling to lag behind. During the “double 11″ period in 2021, JD logistics launched the digital intelligent service product of supply chain logistics – intelligent business warehouse.

Based on the warehouse allocation service of JD logistics, the intelligent business warehouse applies the prediction algorithm, inventory model and big data to the national inventory sub warehouse and sub warehouse allocation management to reduce the delivery nodes, shorten the communication chain, help customers improve the efficiency of supply chain management and reduce the complexity of management.

At present, JD logistics intelligent business warehouse has broken the restrictions of integrated supply chain project-based services and provided standard products services for more small and medium-sized enterprises. JD logistics intelligent business warehouse has appeared in the supply chain management of food and beverage, beauty personal care, medical care and other industries.

Taking a beauty merchant as an example, it has been in the state of cross regional order default for a long time. The cross regional default rate of orders is as high as 37%, and the time limit on the next day is only 55%. After three weeks of access to JD logistics intelligent business warehouse service, the inventory was readjusted through digital intelligent decision-making, and the timeliness was increased to 90% the next day. At present, the next day efficiency of the merchant has increased by 15% compared with the previous one, the customer experience has been greatly improved, and the sales volume of the merchant has increased by 60%.

In addition to improving the efficiency of the logistics industry, digital intelligence can also empower enterprises in other industries.

Yintai department store, an old retail company, has put all its goods on the cloud in order to carry out the digital transformation of new retail. Through this initiative, Yintai department store has completely opened up online and offline, realized the comprehensive digitization of consumers, shopping guides, cabinets, commodities and suppliers, and laid a foundation for business innovation. Through this digital intelligence innovation, Yintai department store has increased its transaction peak by more than 20 times on the premise that the it cost remains unchanged.

The same is true for the catering industry. Haidilao operates more accurately after launching its own app. Through the Haidilao app, customers can not only place orders in advance, but also reduce the waiting time in the queue; You can also share your original hot pot taste on social networks, conduct nationwide PK, and truly “Hi together” with netizens everywhere.

As early as 2015, sportswear brand Li Ning and Alibaba cloud built a “digital business platform” to transform into an Internet + sports life experience provider. On the sales side, Li Ning’s stores launched “cloud shelf” and “smile discount” products to enhance consumers’ shopping experience. At the storage end, Li Ning changed the previous manual transfer and replenishment behavior into an automatic decision of the information system through digital intelligence construction. At present, the replenishment decision of 100 stores of a subsidiary of Li Ning can be completed as soon as 2 hours, and the operation efficiency has been greatly improved.

Mengniu Group, a dairy giant, has rapidly promoted digital intelligence transformation and continuous innovation, expanded from the processing end to the upstream and downstream, covering planting, breeding, logistics, sales and other links, and continuously improved the integration level of the whole link.

Lu Min, President of Mengniu Group, said: “starting from the pasture to the consumer side, it is our biggest challenge to fully open up with digitization and intelligence, and realize consumers’ demand in the supply chain at low cost and high efficiency.”

In addition to the above enterprises, Feihe, China FAW, China Mobile, Tongcheng Yilong, Kingdee, iFLYTEK, Tencent and other enterprises have also made many attempts in digital intelligence transformation. Digital intelligence has been applied in many industries, including retail, tourism, automobile, Internet, medical treatment, education, energy and so on. Digital intelligence is not limited to one or two industries, but has become an important part of the whole economic activity.

Digital intelligence is the future?

In this way, the construction of digital intelligence is very important for the future of enterprises. The formation of digital intelligence era is of great significance to the development of society. However, at present, enterprises are also facing many problems in the construction of digital intelligence.

First of all, digital intelligence is not simply data extraction. The industrial upgrading caused by digital intelligence cannot be completed only on the software side. The construction of digital intelligence needs not only the update of software, but also the cooperation of hardware. The comprehensive construction of digital intelligence requires the upgrading of existing infrastructure, which is not only costly and costly, but also has a longer cycle and higher requirements for technical level.

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The construction of digital intelligence not only puts forward new requirements for infrastructure. It also puts forward requirements for today’s enterprises. Under the requirements of digital intelligence, enterprises also need to update and upgrade their existing equipment and machines. For most enterprises facing fierce competition, whether it is the capital required, or the time and energy spent, it is not a small cost.

Secondly, digital intelligence also poses a challenge to the current mode of production and life. The working and living patterns accumulated by producers for decades have considerable inertia, and it is by no means easy to change them. The deep application of digital intelligence will profoundly change the previous work and life mode. Whether shopping in shopping malls or ordering meals in restaurants, the consumer experience will be completely different from the past, and this change in behavior mode is likely to become an obstacle to the implementation of digital intelligence application.

Finally, digital intellectualization reorganizes everyone’s thinking and social relations. In the age of digital intelligence, because all our behavior patterns have been reconstructed, we need to change our way of thinking. At the same time, in order to adapt to the changed mode of production and life, our social relations should also be reconstructed.

The next few years will be a window period for accelerating the installation of digital intelligence infrastructure, accelerating the transformation of digital intelligence of enterprises and overtaking in curves. A number of enterprises with leading thinking and action will take the lead in seizing this round of window period to comprehensively improve their digital intelligence ability, so as to obtain intergenerational competitiveness beyond traditional enterprises.

Over the past few decades, we have experienced changes from it, online, cloud, two wheel drive to full link digital intelligence. From digitization to digital intelligence, it reflects not only the change of name, but also the reconstruction, migration and switching of new digital business infrastructure, and the reconstruction of digital business ecology with consumer operation as the core.

Today, digital intelligence is helping the rapid growth of new forces, including not only cutting-edge brands bred on the digital platform, entrants who use digital technology to create new industries, but also traditional enterprises that fully embrace digitization.

Facing the arrival of the digital intelligence innovation era, both enterprises and each of us should plan ahead, lay out in advance, and better apply the digital intelligence concept to our daily production and life. Science and technology enables society to change and create the future. Today, our society, which is all new, will be even more powerful and usher in a better new era after inserting the wings of digital intelligence.


Post time: Jan-20-2022