Midea Group’s Digital Transformation Performance Research

On February 27,2023,the Central Committee of the Communist Party of China and the State Council issued the "Overall Layout Plan for the Construction of Digital China",explaining the importance of building a digital China from the perspective of top-level design.The digital wave is affecting the development of the entire industry,and the integration of industrialization and industrialization has become an unstoppable trend.Industrial digitization has been given contemporary significance and has become an important engine driving the development of China’s digital economy.As an important carrier of the national real economy,the manufacturing industry not only promotes employment,provides material security and other basic social functions,but also shoulders the mission of highlighting the comprehensive national strength of the country.Therefore,it needs to respond to the call of the country and spare no effort to continue to promote the Digital transformation,in order to achieve high-quality "leapfrog" development.This paper takes Midea Group,the pioneer of Digital transformation,as the case study object,to explore how it gradually transformed from a manufacturing enterprise specializing in household appliances to a technology and innovation driven technology group.First,it briefly introduces the development of Midea Group’s Digital transformation in the past ten years,then analyzes the feasibility and motivation of the transformation,and then combs its course by using the time-series interval method and the key event method.From the specific implementation path,it finds the mechanism of the impact of Digital transformation on enterprise performance,which mainly covers three ways: reshaping the enterprise value chain,focusing on R&D and innovation capabilities,and innovating the business model.Finally,it is objective Comprehensively evaluate the corporate performance of Midea Group in the context of Digital transformation.It includes using the financial indicator method,combining the data of industry comparable companies to evaluate the financial performance before and after the transformation of enterprises,using the event study method to measure the changes in market value brought about by important M&A events,and establishing an input-output efficiency model based on its huge digital expenditure scale,and evaluating its innovation performance with reference to similar companies.The study found that Midea Group significantly improved the financial performance and market value of enterprises through digital transformation of enterprise value chain,R&D innovation capability and business model.Specifically,the reshaping of the value chain has accelerated the speed of enterprise asset turnover,the development of channels and markets has improved the profitability of the enterprise,and ten years of digital capability construction has also cultivated Midea Group’s strong business resilience.Its debt repayment ability and sustainable development ability have achieved significant growth.Not only that,digital mergers and acquisitions have achieved a steady improvement in market performance while achieving a qualitative transfer of research and development capabilities.But as the transformation becomes increasingly mature,enterprises should appropriately slow down their expansion pace,accelerate the integration of existing resources,plan period costs reasonably,improve the efficiency of innovation capability transformation,reduce the financial operation burden caused by the transformation,and achieve better subsequent development.