The Impact Of Digital Transformation On Shagang’s Performance

This is a time when the global digital economy is booming,and companies need to keep pace with The Times to avoid becoming obsolete.In order to promote the digital transformation of enterprises,China’s 14 th Five-Year Plan emphasizes the importance of digital economy and encourages all walks of life to carry out their own transformation activities.At present,the digital transformation of steel industry is not high,so it is of great significance to analyze the successful transformation cases of steel industry.This study introduces the existing problems of Chinese iron and steel industry,and shows the necessity of digital transformation to steel enterprises.Secondly,it selects Shasteel Group as a case study,summarizes and expounds the course of digital transformation,and analyzes the enterprise performance in the transformation through financial and non-financial performance.The four dimensions of financial performance are cost,operating efficiency,profitability and solvency.Non-financial performance is analyzed from four dimensions:production efficiency,customer relationship,R&D innovation ability and environmental protection.Through the above analysis,this study finds that digitalization of iron and steel manufacturing enterprises can improve the performance and value of enterprises.This effect is mainly through process reengineering to improve operational efficiency.At the same time,it also reshapes the industrial chain and value chain and enhances the competitiveness of enterprises.At present,the overall digital transformation degree of our iron and steel industry is not high,so the same industry enterprises can learn from the digital transformation experience of Shagang.By absorbing the advantages of Shagang’s digital transformation and avoiding the shortcomings in its transformation,a road of digital transformation suitable for its own development can be worked out to enhance the internal competitiveness of the enterprise.