Research On The Motivation And Performance Of Hikvision’s Digital Transformation

The world today is undergoing a great change unprecedented in a century.With the new round of technological revolution and industrial change,new things such as driverless cars and 3D printers have emerged one after another,not only changing people’s lives,but also impacting on the production and operation of enterprises.Faced with the impact of AI artificial intelligence,big data,cloud computing and other digital technologies,the traditional manufacturing industry must seize the digital wave and drive production methods with digital transformation.The security industry is one of the key members of China’s manufacturing industry,and it plays an important role in building a three-dimensional social security prevention and control system and maintaining national security and social stability.After experiencing sluggish demand brought about by the macroeconomic downturn in 2015-2016,the growth rate of the security industry has slowed down.At the same time,with the improvement of people’s living standards and consumer attitudes change,the pursuit of security products is no longer the traditional video surveillance,but the pursuit of an intelligent management platform that can monitor,alarm and access control systems for the transmission of images,storage and data analysis.In this context,traditional security companies want to occupy a place in the market,it is necessary to comply with the development of the digital economy,and actively digital transformation.In recent years,scholars at home and abroad for the digital transformation of the motives,paths and other empirical exploration,but less research on the specific practices and performance of the digital transformation of enterprises.As there is a certain distance between theory and practice and a lack of certain practicality,it is necessary to conduct a specific study on the digital transformation of enterprises in conjunction with actual cases,analyse the specific content and results of digital transformation in terms of the motivation,path and performance of the transformation,and then bring some inspiration and reference to the digital transformation of traditional Chinese enterprises.This thesis combines the literature analysis method and case study method.By combing relevant literature at home and abroad and combining case studies,it examines the motivations,specific paths and performance of digital transformation of Hikvision,and draws conclusions and insights from them.In the literature section,the thesis explains the basic concepts of digital economy,digital transformation and enterprise performance,and briefly outlines the power change theory,value chain theory,process reengineering theory and smile curve theory.In the case study section,Hikvision,a leading traditional security company,is selected as the subject of this thesis.Starting from the basic situation of Hikvision,the thesis introduces the main development stages of Hikvision and the measures of digital transformation,and introduces the measures of Hikvision’s transformation at four levels: strengthening investment in digitalization,cultivating digital talents,digitalizing business activities and building a financial sharing centre.The thesis focuses on the motivations for Hikvision’s digital transformation,the transformation path and the impact of digital transformation on Hikvision’s performance.In terms of performance analysis,the thesis provides a specific analysis of Hikvision’s financial performance during the transformation process in terms of four dimensions of financial indicators: profitability,solvency,operational capacity and growth capacity.The performance of Hikvision’s non-financial indicators in the transformation process is analysed in five dimensions: the number of Fluorite network subscribers,global market share of intelligent video surveillance,investment in innovative business,investment in R&D and sales coverage.The study finds that digital transformation can improve Hikvision’s corporate performance to a certain extent.The conclusions drawn from the study of Hikvision’s digital transformation are as follows: firstly,digital transformation drives the development of the traditional security industry;secondly,digital transformation digitises the entire value chain of Hikvision;and thirdly,digital transformation promotes the improvement of corporate performance.Based on the findings of this study,the thesis draws implications for Hikvision and the relevant regulators: Hikvision should continue to drive the digital transformation process,focus on improving its capital structure and use financial leverage wisely.In addition,regulators need to strengthen data governance and regulatory systems.