Digital Economy Accelerates Industrial Digital Transformation

The digital economy is the new driving force for future development. On the afternoon of September 21st, during the “Digital Economy and Industrial Digital Transformation” forum at the NEXT Summit (Bali 2022), domestic and international experts explored the international trends in industrial digitization.

The international NEXT Summit (Bali 2022), themed ” Global Change and Rebuilding Collaboration” was held from September 19th to 29th in a hybrid format of online and offline forums. Multiple exciting forums presented at the summit featured cutting-edge speeches and case studies in various industries, providing a global platform for top-level knowledge and information exchange.

“How to quickly adapt to digital transformation and meet the demands for user-centric digital services has become a huge challenge for companies and society as a whole,” said Farah Fitria Rahmayanti, Director of the Digital Economy Department at PT PERURI, an Indonesian company. She emphasized that while the physical world was put on hold due to the pandemic, the online digital world experienced accelerated development. The integration of internet technology and the real world has prompted companies to accelerate their transformation from products to digital services.

Regarding the path of digital service transformation, Farah Fitria Rahmayanti believes that the prerequisite for digital services is gaining the trust and understanding of users. In this context, new digital technologies and management methods need to harmoniously integrate with traditional technologies and marketing methods, while maintaining the uniqueness of various production centers, in order to meet the market’s demand for higher levels of production efficiency and flexibility.

Andy C Kamili, CEO of PT Gaido Digital Medika Group in Indonesia, views the digital economy as a new economic form based on data resources and modern information networks. The essence of Industry 4.0 lies in the integration of information and communication technology to promote industrial digital transformation.

Andy C Kamili stated that industrial digital transformation has effects in five areas: customers, innovation, value, competition, and data. Through infrastructure such as cloud platforms and cloud computing, big data empowers industrial digital transformation. Industrial value creation focuses on meeting the demands of end consumers. By establishing cooperative relationships with competitors based on user value, the transition from linear competition to ecological win-win can be achieved, thus forming a digital ecosystem and platform.

“Industrial digital transformation requires collaborative efforts from all elements to enhance digital professional capabilities, cultivate digital thinking, and develop innovative digital development policies by the government in order to create a favorable environment for industrial digital transformation,” suggested Andy C Kamili.

Regarding the impact of digitization on trade hub ports, Chen Hangyu, Assistant Researcher at the Regional Coordination Development Research Center of Zhejiang University, summarized three characteristics. Firstly, the development of digital trade has facilitated the smooth flow of production factors between countries, reducing the matching costs of factors and improving the efficiency of resource allocation. Secondly, the development of digital trade has broken many real-world constraints through technology, networks, information flow, and logistics systems, resulting in significant cost reductions and increased opportunities for small and medium enterprises to access the global market. Thirdly, high-standard and strict digital trade rules are required.

Chen Hui, Chairman of Dongyi Risheng Home Furnishing, a company focusing on the digital development of the home decoration sector, expressed during the forum that digitization is a major trend in the era of development and transformation. The challenge for future home decoration companies is to upgrade the user experience through digital transformation and promote high-quality development in the industry.

Regarding the direction of digitalization in Dongyi Risheng Home Furnishing, Chen Hui stated that it will better integrate with artificial intelligence technology. In the future, artificial intelligence technology will play an increasingly important role in the digital development of home decoration. “When users have needs, a digitalized artificial intelligence home decoration system can effectively communicate with users and quickly calculate a design proposal based on the customer’s layout and requirements. After gathering customer feedback and making modifications according to their expectations, the service can be directly signed and provided through the system.” This is the envisioned scenario of a digitized artificial intelligence home decoration.

The 6th NEXT Summit (Bali 2022) was co-hosted by the NEXT Federation, China Economic Information Service, and Indonesia’s National Research and Innovation Agency (BRIN). The NEXT Federation is a global platform for integrating and transforming industrial resources, promoting global innovation, cooperation, and development through discovering intelligent practices, sharing advantageous resources, and improving public relations. Its headquarters are located in Auckland, New Zealand. China Economic Information Service is a professional economic information service organization directly affiliated with Xinhua News Agency. It is one of the most authoritative and comprehensive economic information service institutions in China and serves as a pilot unit for the construction of national high-end think tanks. The National Research and Innovation Agency (BRIN) of Indonesia is a permanent institution under the leadership of the President of the Republic of Indonesia. It is responsible for international research, development, evaluation, and application, as well as invention and innovation, nuclear implementation, and space-related work. The chief partner and official designated product of the summit is Hong Xifeng, one of the most renowned traditional Chinese liquor brands known as one of the “Four Famous Lao Baijiu” and praised as the “Phoenix of Liquor” for its characteristics of not causing intoxication, throat dryness, and providing pleasant aftertastes.

The NEXT Summit (Bali 2022) calls for embracing convergence in the face of significant transformations, promoting transformations through convergence, and achieving continuous progress and sustainable development in human society.

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