Research On Risk And Financial Effect Of Digital Transformation Of Tongrentang Business

In recent years,the wave of digitalization has surged,and innovative technologies such as big data,Internet of Things,artificial intelligence,cloud computing,blockchain,and other innovative technologies have been widely used in various fields of modern society,which shows that today’s society has entered the era of digital economy.In 2020,the scale of China’s digital economy will be nearly 5.4 trillion US dollars,ranking second in the world,with an increase of 9.6%year-on-year,ranking first in the world.At the same time,the Party Central Committee and the State Council attach great importance to the development of the Chinese medicine industry,and have successively issued a series of policies to guide Chinese medicine enterprises to use modern innovative technologies such as big data and the Internet of Things in the new era to carry out digital transformation and development.On this basis,this thesis takes Tongrentang,a long-established Chinese medicine enterprise,as an example to analyze the risks faced by Tongrentang’s business digital transformation and the financial effects of business digital transformation.Based on the theory of technological innovation,dynamic capability theory,core competitiveness theory and industrial transformation and upgrading theory,this thesis uses word2Vec text analysis method,index analysis method,factor analysis method,event research method and enterprise value evaluation to study the risks and financial effects of Tongrentang’s business digital transformation.This thesis first describes the business characteristics of Tongrentang and introduces the process of business digital transformation;then analyzes the main risks and financial effects of Tongrentang’s business digital transformation,and finally draws the following conclusions:(1)internal and external factors jointly drive the digital transformation of Tongrentang’s business;(2)The road to the digital transformation of Tongrentang’s business is all-round and multi-industry;(3)The main risk facing the digital transformation of Tongrentang’s business is operational risk;(4)The financial effect of the digital transformation of Tongrentang’s business is not significant:after the transformation,tongrentang’s overall profitability and ability to continue to operate have not been improved,and even increased the debt burden of Tongrentang and reduced its solvency;(5)During the transformation period,Tongrentang’s market recognition has declined,and its corporate value has also decreased.During the transformation,Tongrentang is facing risks at multiple levels,and it is necessary to implement a full range of risk prevention and control.Tongrentang’s risk prevention and control can reduce operational risks,reduce financial risks,improve financial effects,improve market recognition,and enhance the overall value of the company.At the same time,Tongrentang wants to successfully complete the digital transformation of the business is not an overnight thing,it needs to be steady,timely adjust the transformation strategy according to market changes,optimize the industrial allocation,in order to break through the existing business bottlenecks,complete the transformation and upgrading,and achieve long-term sustainable development.