Research On The Impact Of Digital Transformation On Performance Of Diary Industry

For now,digital transformation has gradually become a necessary factor for the enterprise which aims to cater the requirement of digital era or develop better.With the increasing diversification of product and brands,the competition among dairy enterprises in China has aggravated.In order to accelerate the fusion of dairy enterprise and digital transformation,enterprises should adjust the development strategies initiatively and reform thoroughly to foster core competence.The digital transformation of Chinese dairy enterprises has not been completed,in order to provide reference for dairy enterprises in the wait-and-see period and bottleneck period of transformation,this paper takes Yili Group,which is a leading dairy enterprises in China,as the object of researching,and aims to summarize universal suggestions through analyzing both the impact of digital transformation and its inner mechanism while promoting the process of digital transformation of domestic dairy enterprises.Based on value chain theory,smile curve theory,process re-engineering theory and information asymmetry theory,the paper analyzes the transformation motivation of Yili Group through case analysis.Based on the character that the digital transformation of Yili Group is carried out around its value chain,the paper introduces the relevant measures and explains the inner mechanism of them.The paper constructs a performance evaluation system from both financial dimension and non-financial dimension,and combines it with the factor analysis method to compare the ranking changes among Yili Group and its competitors.Through vertical comparing and horizontal comparing,the impact of digital transformation can be evaluated more comprehensively.The research finds that:(1)The digital transformation of Yili Group is carried out following the value chain,and the specific measures are mainly reflected in the fields of animal husbandry,line of production and operation.By placing the product traceability system,MES manufacturing execution system and the celestial sphere system in the upstream,middle and downstream of the value chain,Yili has successfully improved the efficiency and the coefficient of food security,deepened the communication with customers,and gained a loyal customer group growing with the brand while strengthening the brand construction and grasping the consumption trend;(2)Digital transformation promotes the performance of Yili Group.With the deepening of the digitization process,in the field of financial performance,Yili Group’s profitability,solvency,operating ability and developing ability have been steadily improved and the performance is better than the industry average.In the field of non-financial performance,Yili Group’s innovation ability,customer satisfaction,social contribution per share and market penetration can perform better than the state before the transformation.Through comparing the ranking of Yili Group with its competitors,we can also find that the digital transformation has made the ranking of Yili Group gained steady progress,and improved comprehensively.(3)The digital transformation of Yili Group is driven by the trend of the era and the aim for promoting efficiency,core competence and food security level.The paper plays the role of enriching the theoretical research results related with the impact of digital transformation on the performance of dairy enterprises,at the meantime,it provides new case to prove the viewpoint that digital transformation promotes the development of dairy industry.