On The Impact Of Digital Transformation On Enterprise Performance

The Internet has spread all over the world in the current era.Digital technologies such as the new-generation artificial intelligence,the Internet of Things,cloud computing and 5G are advancing every day,promoting the comprehensive penetration and the fast development of information technology in all walks of life.With the spread of the novel coronavirus,enterprises began to realize the necessity of digital transformation,and those enterprises through digital transformation showed more excellent risk management ability.Therefore,in order to maintain a leading position and competitive advantage in this era of rapid change,enterprises must carry out digital transformation.Midea Group and Sany Heavy Industry have been the models of the digital transformation of the manufacturing industry.Their successful practices have aroused great attention of the whole society and become the benchmark of industry development.In this paper,Midea Group and Sany Heavy Industry as the research object,in-depth discussion of the two enterprises digital transformation process,and analysis of the transformation of the impact on enterprise performance.Firstly,based on the theory of multi-institutional logic,this paper constructs the process system of digital transformation according to the specific situation of the enterprises.This paper studies and analyzes the connections between each digital transformation phase of the two enterprises,market logic and the government logic,and finds that with the release of the digitization guiding policy,decision-making that related to enterprise digital transformation has been transformed from"leading by market logic" to "leading by market logic and government logic".Enterprises have been taking initiative to go through the digital transformation.Secondly,this paper defines the term enterprise performance from the three dimensions of "efficiency,cost and innovation".Based on the theories of organizational change,business process reengineering and value creation,this paper studies the impact of digital transformation on the enterprise performance,and selects the EVA index for the overall appraisal of enterprise performance,aim at further verify the impact of digital transformation on enterprise performance.Through the comparative case study of Midea Group and Sany Heavy Industry,the paper finds that:First,in terms of the efficiency improvement.First of all,enterprises can realize professional work intelligence and business process automation through digital transformation,which is conducive to the improvement of production efficiency.Secondly,digital transformation enables enterprises to realize personalized customization and precision marketing,information transparency and synergy of value chains,so as to improve the circulation efficiency of enterprises.Last but not least,digital transformation allows the enterprise management model to be more integrated and leaner,and the management process to be mobile and flexible,thus improving the management efficiency.Second,in terms of cost reduction.On the one hand,digital transformation can make the whole production process more controllable and realize the rational allocation of resources,as a result,reduce the production cost to certain extent.On the other hand,digital transformation can also reduce costs generated by searching for suppliers,negotiations,customer development and maintenance through the decreasing of information asymmetry,so as to reduce transaction costs.Third,in terms of innovation.Digital transformation of enterprises can drive the innovation of decision-making model and decision-making basis,and achieve the innovation in the management model of "data-driven decision-making".Fourth,this paper comprehensively evaluates the enterprise performance based on EVA index and further demonstrates that digital transformation can improve enterprise performance.In the end,this paper summarizes relevant conclusions drawn from the analysis of the selected companies,puts forward some suggestions,and concludes the weakness and the prospect of the research.For enterprises that are determined to promote digital transformation,the key to the improvement of the enterprise performance is to learn from the successful experience of Midea Group and Sany Heavy Industry and select scientific methods according to their practical situations.