Research On Hikvision's Digital Transformation And Value Creatio

The takeoff of the Internet and information technology has driven the pace of transformation from the real economy to the digital economy,and the digital economy is in a huge wave of transformation.With the help of the digital economy transformation engine,China has further laid out a network pattern supported by big data,cloud computing and other technologies,and has established national computing hub nodes and big data service centers in the Yangtze River Delta and other places,which provides further technical support and policy support for enterprises’ Digital transformation.As of 2021,the development scale of the digital economy has reached 45.5 trillion yuan,and the proportion of the digital economy to GDP has reached 39.8%.The rapid development of the current digital economy is promoting the transformation of China’s economy from high-speed to high-quality development.However,the integration of the manufacturing industry into digitalization is relatively late,and the current level of intelligence is low.Therefore,the digital upgrading of the manufacturing industry has become a crucial link in promoting China’s digital process.As the leader of the security industry,Hikvision decided to respond to the impact of the internal and external environment by implementing the Digital transformation strategy as early as 2007,and achieved great results.With the Digital transformation entering the advanced stage,enterprises began to face risks such as the gradual slowdown of inventory and accounts receivable,and the decline of profitability.How to resolve these risks is crucial to the success of Digital transformation of enterprises.On the basis of existing research literature and theory,this paper first introduces the process and motivation of Hikvision’s Digital transformation from the initial manufacturing of video surveillance products to how to achieve digital transformation through product value-added services and building an intelligent service platform.Secondly,it analyzes that the value creation of Hikvision’s Digital transformation mainly depends on the two favorable conditions of innovative business releasing digital potential and technological advantages,and analyzes and summarizes the effect of its Digital transformation on realizing value creation from the perspective of operation management and market investors from eight dimensions,including research and development,manufacturing,supply chain management,market value and share price,and economic value added.Finally,in view of the problems of Hikvision’s value creation in the critical period through Digital transformation,four suggestions for improvement were proposed,including strengthening the digital layout of sales links,controlling product costs,improving the inventory and accounts receivable management system,controlling the scale of market expansion,and strengthening the precise investment in research and development.The research found that the Digital transformation has created value for enterprises,but the Digital transformation has a long transition period,and some problems worthy of attention have also been exposed in the transformation process.At present,the benefits created by the transformation have not been fully released.This paper hopes that the case study of Digital transformation of Hikvision can enrich relevant theoretical research and provide some reference and help for other security enterprises and manufacturing enterprises to carry out Digital transformation.