Case Study On Midea Group Digital Transformation

With the development of underlying digital technology,digital technology is developing rapidly.Compared with the early digital transformation,the strategic goal of digitalization has gradually shifted from cost reduction and efficiency improvement to empowering innovation models,improving the quality of manufacturing industry development,and realizing value creation.As a key industry in China’s economy,the manufacturing industry has long occupied an important position.To achieve sustained development,manufacturing enterprises are accelerating the integration of digital technology,achieving innovative empowerment and business breakthroughs based on traditional industries.This study takes Midea Group,a leading private manufacturing enterprise in China,as an example,and analyzes the impact of digital transformation on the company’s business performance from its beginnings to maturity and its current achievements over time.This research has positive significance for inspiring the driving force of corporate digital transformation and accelerating the digital transformation of the manufacturing industry.This article combines literature research with case analysis.It integrates research materials on company digital transformation and corporate performance from China and abroad.Through case studies,it discusses the reasons,specific implementation strategies,and performance of Midea’s digital transformation,and draws conclusions and recommendations.In terms of literature research,the paper focuses on the basic concepts of enterprise digitalization,production digitalization,business digital transformation,and the factors affecting corporate performance.It also briefly describes the relevant theories and basic knowledge of enterprise business process reengineering theory,production upgrading theory,and contingency theory.In addition,the paper summarizes the main reasons for digital transformation of enterprises and the means of measuring corporate performance.Furthermore,this paper conducts a quantitative analysis of digital transformation.In terms of case studies,this paper chooses Midea Group,a leading Chinese home appliance company,as the research sample.Firstly,it introduces the basic situation and management structure of Midea Group.Then,starting from the motives of Midea’s digital transformation,it analyzes the various measures taken by Midea Group in its digital transformation,summarizes the achievements of Midea in organization structure,management structure,supplier relationships and other aspects before and after its digital transformation.Based on this,the paper further studies Midea’s transformation experience.Then,this paper quantitatively analyzes the performance of Midea’s digital transformation from three aspects: organizational structure framework,financial perspective,and non-financial perspective.It also analyzes the non-financial performance indicators of Midea Group before and after the transformation from three aspects: brand value awareness,international market share,and research and innovation capabilities,which shows that digital transformation can improve the company’s business performance to some extent.Finally,this paper summarizes the experience and enlightenment brought by Midea’s digital transformation to China’s traditional manufacturing industry from four aspects: digital culture,development cycle,underlying technology,and management thinking.It summarizes the experience of Midea’s digital transformation for China’s traditional manufacturing industry from the perspectives of meeting market demand,matching the current situation,systematic transformation,and focusing on corporate development.