Industrial Internet companies or manufacturing dark horses

At present, traditional manufacturing enterprises are encountering challenges such as overcapacity, high operational costs, difficulties in quality control, and a weak position within the industrial supply chain. Whether these companies can seize the opportunities presented by the Industrial Internet will directly impact their survival and long-term development. The 19th CPC National Congress report clearly emphasized the need to accelerate the construction of a manufacturing power, develop advanced manufacturing industries, and promote the deep integration of the Internet, big data, and artificial intelligence with the real economy. This signals a clear direction for the future transformation of Chinese manufacturing. The report also called for accelerating the development of advanced manufacturing and promoting the deep integration of emerging technologies with traditional industries. On October 30, Premier Li Keqiang chaired a State Council meeting where it was emphasized that implementing the spirit of the 19th Party Congress requires advancing supply-side structural reforms and implementing initiatives like "Made in China 2025" and "Internet+". The meeting adopted the "Guiding Opinions on Deepening Internet + Advanced Manufacturing Industry to Develop Industrial Internet," aiming to revitalize the real economy and drive the industry toward digital transformation. Today, the influence of the Industrial Internet on China’s manufacturing sector is growing rapidly. As Zhang Qiliang, General Manager of a leading group, stated, "Industrial big data is considered the oil of the future, and the Industrial Internet is seen as the next big opportunity in the tech field." For machinery manufacturers, building smart production lines may still be a distant goal, but integrating existing production lines into the Industrial Internet has already become a reality, paving the way for new transformation strategies. What makes the Industrial Internet so appealing? According to Zhang, the platform enables effective connections between people, data, and machines, facilitating the integration and sharing of various industrial datasets. "Data collisions can lead to new production models and create new development opportunities for the manufacturing industry." For example, XCMG's machinery is equipped with independently developed IoT hardware that records data throughout the product lifecycle. The Xrea Industrial Internet of Things platform currently connects 430,000 devices, including over 6,000 types of equipment such as new energy vehicles, logistics vehicles, cranes, and excavators. It transmits about 500 million data points daily, with projections reaching 900 terabytes by the end of 2017. Through this platform, operators can monitor the performance of equipment across regions and provinces, helping to estimate local economic conditions and track national economic trends. By analyzing metrics like machine workload, water temperature, hydraulic oil levels, and operational risks, companies can implement predictive maintenance. In case of failure, they can quickly identify the issue and dispatch nearby technicians, significantly improving after-sales service quality. However, many Chinese machinery systems are not yet interconnected. Domestic brands often use different communication protocols, which limits data transmission potential. Additionally, most industrial Internet platforms currently focus on remote monitoring and maintenance services. Future efforts should extend to core areas like product design and manufacturing. Network security is also a critical concern when connecting production lines to the Industrial Internet. As Zhang pointed out, "This could affect the safety of national infrastructure. We must protect not only network infrastructure but also maintain key systems like energy, electricity, and transportation." With global IoT market predictions reaching $2 trillion by 2020, the Industrial Internet is expected to account for 22.5% of the market. Tech giants like Google and Baidu are expanding into this space, while traditional manufacturers like Siemens and Haier have launched platforms such as MindSphere and COSMOPlat. Zhang Qiliang noted that while the Industrial Internet creates new collaboration opportunities, there is a shortage of professionals who understand both industry and IT. Many traditional manufacturers underinvest in IT talent, limiting their ability to leverage the Industrial Internet effectively. Meanwhile, internet companies can gain a competitive edge through their technological capabilities. As Accenture highlighted in its report, "Once an industry becomes digitized, its digital strength becomes a key competitive factor, lowering the barriers for new entrants." In March, the State Council Development Research Center issued a report encouraging internet companies to enter the industrial sector, emphasizing that whether traditional manufacturers can adapt to the Industrial Internet will determine their future survival. To stay competitive, traditional manufacturers must invest in IT talent, change their mindset, and take full advantage of the Industrial Internet to kickstart their transformation journey.

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