Research On Digital Transformation Strategy And Performance Of Household Appliance Manufacturing Industry

With the rapid development of digital economy and the need for high-end manufacturing,digital transformation has become an important choice for manufacturing enterprises to adapt to the progress of the times and improve their competitiveness for the home appliance industry.In the past,product homogeneity,channel laying chaos,industry depression,low profit margin and other problems have always existed,companies hope to ride out the storm through digital transformation.Only a few household appliance companies have tried digital transformation,and few have succeeded.Many large enterprises invest in digital transformation but the effect is not good.Small and medium-sized enterprises have no experience and do not know how to start digital transformation.Therefore,it is of great significance to study and analyze the digital transformation strategy of home appliance industry and how the digital transformation affects the performance of enterprises.Based on the process reengineering theory,value chain theory and resource-based theory,this paper reviews the relevant literature.In the theoretical analysis part,this paper studies the motivation of digital transformation of home appliance industry,analyzes the strategy of digital transformation of home appliance industry,and analyzes the mechanism of digital transformation’s impact on performance from two aspects of financial performance and non-financial performance.This paper chooses Midea Group as the research object,selects financial data and materials from 2012 to 2020,and adds industry mean data for comparative analysis to explore the impact of digital transformation on its performance.Firstly,the motivation of midea group’s digital transformation is explored.Secondly,the strategy of midea group’s digital transformation is analyzed.Finally,the effect of Midea Group’s digital transformation is studied from two aspects of financial performance and non-financial performance.This paper concludes:from the perspective of financial performance,digitalization of the whole value chain plays a positive role in improving enterprises’operational capacity and growth ability,while digitalization of the ecosystem can effectively improve enterprises’ value creation ability,both of them perform well in improving profitability and cost control ability;from the perspective of non-financial performance,the full value chain digitization has a strong transformation ability of innovation achievements,while in social evaluation and other aspects,the whole value chain digitization and ecosystem digitization of Midea Group have good performance.In general,the performance of the whole value chain is the best,the performance of the ecosystem remains to be further observed in the future.General enterprises are suitable for part of the business process digitization as a transition,with the full value chain digitization as the ultimate goal,leading enterprises can explore the ecosystem digitization on the basis of the full value chain digitization.