Industrial internet & big data & analytics - opportunities in Chinese market.

1. Industrial Internet - 'making
most out of the data' business
opportunity verification in China
Client: Finpro
Quotation # 150128
INNOVATION BUSINESS ACCELERATOR
ERIC CHENG, ERICC@INNOVBA.COM
APRIL 8, 2015

2. Table Of Contents
► Executive Summary ………………………………………………………... 3
► Market Overview ………………………………………………………..…. 6
► Findings ……………………………………………………………………... 13
► Conclusion & Opportunities ……………………………………………. 26
► Appendix: Interview Results …………………………………………….. 30
► Case Studies …………………………………………………………….. 35
2

3. Executive Summary
3

4. Executive Summary
Chinese manufacturers are facing local and global economic slowdown, as well as continuous rising labor and property
costs. Even with some multi-national companies pulled out their manufacturing from the country, in a move to be closer to
customers or to other lower cost countries, Chinese manufacturers remain over-capacities and face stiff competitions locally
and internationally.
Chinese government is well aware of the dire situation and understand industries must informatize, automate and innovate in
order to remain competitive locally and internationally. The government launched Made in China 2025 initiative among much
fanfares, with top government officials actively promoting Industrial Internet (Industry 4.0) and Internet Plus via public media.
There will be consolidations over the next several years or maybe decade across many industries in China; and most likely,
those informatized, automated and innovative manufacturers will have better chances to survive and stay competitive, while
those manufacturers who do not, may disappear.
Industrial Internet adoption is just commencing in China, with heavy governmental encouragements and industrial wide
pressure. Interested participants should bring their expertise, identify their position, align their partnership, build their team and
prepare for this forthcoming industrial revolution. For foreign companies, it takes time to localize and climatize, to search for
right partner and get acquaintance, and to understand local needs and prepare offerings. There is no better time to action
than right now.
Entering China market from faraway pretty well guarantee failure. Foreign companies should be well funded, committed, and
represented in China with local staffs and/or partners – local supports are absolutely necessary.
4

5. Types Of Chinese Manufacturers &
Their Industrial Internet Status
Types Manufacturers Status in Industrial Internet Adoption Comments
MNO /
JV
Multi-National
Organizations
/ Foreign Joint
Ventures
• Many MNO factories are more advanced, there are
already some levels of adoptions, mostly in the phase of
Operational Efficiency.
• They are gearing up to compete internationally.
• Most suitable customers for
foreign companies.
• Users may have some English
language skills.
LC /
WFOE
Local
Companies /
Foreign Wholly
Owned
Enterprises
• Private companies need to face the market challenges of
survival and competitions.
• Some are contented with China market locally, and some
needs to go international.
• Many already have or in the process of implementing
automation.
• Have urgent needs to adopt Industrial Internet, if funding
permits.
• Will consider local and
foreign partners, but users
may or may not have English
language skills.
SOE State Owned
Enterprises
• Government owned, and typically sell to other local SOE.
• Most aren’t equipped to compete, but are so what
governmentally protected without much real market
competitions.
• Many don’t have nor in the process of implementing
automation.
• SOE typically prefers or
obligates to local partners.
• May be challenging for
foreign companies.
5

6. Market Overview
6

7. Industrial Internet Data Analytic &
Visualization Market
 The Industrial Internet is still at an early stage, similar to where the Internet was in the late 1990s. Survey results by Gartner shown
the vast majority (88%) of respondents say that they still do not fully understand its underlying business models and long-term
implications to their industries.
 In the 2nd annual Internet of Things World Forum (IoTWF), there were a few quantitative and qualitative numbers on IoT growth:
 IoT connections have soared from about 10.7 billion things to 13.7 billion things in the past year alone. We think by 2017
the industrial connections will outpace consumer connections, and total connections reach 50 billion by 2020 (Source:
Cisco Consulting Services)
 IoT Revenue has grown at a 19% compounded annual growth rate (CAGR) each of the past three years to US$2.3 trillion
now, which is 3-4x faster than IT overall and faster than any market before (Source: IDC)
 Sensors shipped in the past year rocketed about 150% to about 23.6 billion units (Source: IMS)
 Our analysis shows that the global IoT value across both the public and private sectors can reach US$8 trillion (Source:
Cisco Consulting Services) from dramatic boosts in revenue, customer and citizen experiences, asset utilization,
employee productivity as well as supply chain and logistics operations.
 When leveraging the Internet of Everything – the connections of things, data, processes and people – the global
opportunity rockets to US$19 trillion (Source: Cisco Consulting Services).
7

8. Value Of Industrial Internet
Source: Introduction
to the Industrial
Internet of Things,
Accenture 2015
8

9. Only Small % Of Companies are
Ready
Source: Winning with the
Industrial Internet of Things:
How to accelerate the
journey to productivity and
growth, Accenture 2015
9

10. China Is Not Among The Leaders in
Enabling Factors
Source: Winning with the
Industrial Internet of Things:
How to accelerate the
journey to productivity and
growth, Accenture 2015
10

11. China-Germany Cooperation In
Industrial Internet (Industry 4.0)
 The "Industry 4.0" concept has appeared in a China-Germany cooperation guideline
released on the 3rd governmental consultation between China and Germany.
 This concept was first put forward at the Hannover Messe in Germany in 2013. Germany
has adopted Industry 4.0 as its national strategy, while China has proposed the "Made in
China 2025" strategy to promote integration of information and industrialization.
 With "Made in China 2025", China is adopting a more pragmatic approach in the
advanced global industrial chain and focuses on medium to long-term high-end designs.
 Taking opportunity of Chinese Premier Li Keqiang's state visit to Germany, China and
Germany have made a breakthrough on the "Industry 4.0" proposition and considered a
"win-win" potential for Sino-German industrial development and innovation.
 Two elements of the cooperation should be noted.
 Firstly, both countries deemed that it companies should have the freedom to promote progress
in cooperation, while it is the role of the two governments to provide policy support for this
progress.
 Secondly, the worldwide success of the strategy relies on international rules and standards. The
two countries will cooperate closely on issues of standards and "Industry 4.0" will be incorporated
into the Sino-German standardization cooperation committee.
11

12. Internet Plus Set To Push China's
Economy To Higher Level: Premier
 BEIJING, March 15 (Xinhua) -- The favorable wind of the "Internet Plus" is set to push the
Chinese economy to a higher level, Premier Li Keqiang said Sunday, commenting on fast
development of the country's e-commerce.
 The "Internet Plus" action plan was unveiled in the government work report that Li
delivered to national lawmakers on March 5.
 The plan aims to integrate mobile Internet, cloud computing, big data and the Internet
of Things with modern manufacturing, to encourage the healthy development of e-
commerce, industrial networks, and Internet banking, and to help Internet companies
increase international presence.
Source: http://news.xinhuanet.com/english/2015-03/15/c_134067831.htm
12
 The Chinese government has designated the Industrial Internet of Things an “emerging strategic industry,” and
plans to invest some $800 million in the Industrial Internet by 2015.
 China has also recently proposed its “Made in China 2025” strategy to promote domestic integration of digital
technologies and industrialization.

13. Findings
13

14. Interviews Conducted
 Total 8 interviews were conducted:
 6 manufacturers in different industries and different company structures:
 Eoslift, Chinese machinery manufacturer, listed on NEEQ
 [Anonymous], Multi-national car parts manufacturer, listed internationally
 Putian, Chinese-Italian consumer electronic manufacturer, JV
 Handan, Chinese iron & steel manufacturer, state owned enterprise
 Luye, Chinese pharma company, listed in HKSE
 Intel, Multi-national semi-conductor company, listed in NASDAQ
 1 big data service provider
 Neusoft, Chinese software company and big data service provider
 1 industry publication
 China Information Times, IOT Forum
14

15. Individual Interview Summary: Eoslift &
An Anonymous Carparts Company
Eoslift
 Eoslift is a local SME specializes in designing, manufacturing and selling indoor low-carbon green warehouse equipment. It’s
listed in Beijing NEEQ with annual revenue less than RMB100M.
 Production processes are modularized and automated, with interoperable modular devices. Data are collected, but not
analyzed; hence, does not have respective IIoT staffs in-house. Company does not have in-house knowledge to collect
appropriate data and make use of them; they are opened to work with local and international consultants. Company
understands the needs of Industrial Internet adoption, and hope to improve operational efficiency, competitiveness and
preventive maintenance. There is no immediate timetable for Industrial Internet.
Anonymous
 Interviewee is the Chinese factory of a multi-national car parts manufacturer. It listed internationally with annual revenue
well over RMB10B.
 Production processes are automated, with interoperable modular devices. Data are collected, analyzed, and used to
adjust operation, and has in-house IIoT staffs. Company understands the needs of Industrial Internet adoption, and is using
the system well to improve operational efficiency, competitiveness and preventive maintenance. Currently, system is being
developed in-house, and integrated across all departments. Company is opened to work with local and international
consultants if needed, and using SAP for their ERP.
15

16. Individual Interview Summary: Putian &
Handan
Putian
 Putian is a Chinese-Italian joint-venture consumer electronic manufacturer, with annual revenue less than RMB1B.
 Production processes are modularized, but not automated. Machine data are not collected, but production data are
analyzed to adjust operation. Company feels they have in-house knowledge to collect appropriate data and make use of
them. They are using outside consultants, Kindee, for production and finance, and preferred to work with local consultants.
Company understands the needs of Industrial Internet adoption, and hope to improve operational efficiency (i.e. supplier
and product quality), competitiveness and preventive maintenance. There is no immediate timetable for Industrial Internet.
Handan
 Handan is a state-owned Chinese iron & steel manufacturer, with annual revenue over RMB1B.
 Production processes are not automated nor modularized. No data are collected for analysis and adjust operation
adjustment. Company understands the needs of Industrial Internet adoption, and hope to improve operational efficiency,
competitiveness and preventive maintenance. There is no immediate timetable for Industrial Internet, but when needed,
company is opened to work with local and international consultants.
16

17. Individual Interview Summary: Luye &
Intel
Luye
 Luye is a local pharmaceutical manufacturer listed in the HKSE with annual revenue over RMB1B.
 Production processes are not automated nor modularized. No data are collected for analysis and adjust operation
adjustment. Company understands the needs of Industrial Internet adoption, and hope to improve operational efficiency,
competitiveness and preventive maintenance. There is no immediate timetable for Industrial Internet, but when needed,
company is opened to work with local and international consultants. Currently, they have experiences working with
industrial specialist consultants.
Intel
 Interviewee is the Chengdu factory of a multi-national semi-conductor manufacturer. It listed on NASDAQ with annual
revenue well over RMB10B.
 Production processes are automated, with interoperable modular devices. Data are collected, analyzed, and used to
adjust operation, and has in-house IIoT staffs. Company understands the needs of Industrial Internet adoption, and is using
the system well to improve operational efficiency, competitiveness and preventive maintenance. Currently, system is being
developed in-house, and integrated production and R&D only. Company is currently co-operating with Tsinghua University
on big data from new processes, and looking forward to co-operate with other leading research institutes.
17

18. Individual Interview Summary: Neusoft,
A Key Big Data Service Provider
Neusoft, Industry Solution Team
 We’ve interviewed their Senior Manager of Industry solution Team. He said:
 Many leading manufacturers are using Distributed Control System (DCS) and Manufacturing Execution Systems (MES)
in the factories, collecting production data in an effect to improve production management and process
improvement.
 Current Industrial Internet implementations focused mainly in Operational Efficiency, and haven’t extended to include
design, sales, finance and CRM. In most cases, data are collected in silo departmentally without company wide
integration.
 Neusoft’s solution for wind power operators focuses in wind turbine operation and environmental factors data collections for
real time analysis, so that, operators, from a distance, may immediately manage its operation, arrange necessary
maintenance and improve overall operational efficiency. Further integration and improvement are planned for the future.
 Neusoft, like all other local service providers, is interested in various industry specific Industrial Internet solutions and success
cases applications.
18

19. Individual Interview Summary: China
Information Times, IOT Forum
China Information Times, IOT Forum
 China Information Times is a magazine operated by China Information Industry Association, and supervised by National
Development and Reform Commission.
 We’ve interviewed their Deputy Chief Editor. He said:
 Chinese government launched “Made in China 2025” initiative, which raised Industry 4.0 to national strategic level,
and heavily promote Industrial Internet and Big Data applications and developments. Hopefully, Industrial Internet will
improve productivities, competitiveness and innovations to various Chinese industries.
 Some challenges in the current development of Industrial Internet are:
1. Establish data sharing and security policy,
2. Build more reliable broadband infrastructure with more capacity and better quality of service,
3. Innovative applications and industrial big data development and analysis techniques, and
4. Industrial internet talents development.
19

20. China In Early Phases Of The Evolution
 Organizations in China are behind those
in developed countries in Industrial
Internet adoption, and are entering
phase 1 and exploring phase 2, which
should accelerate in the next 2 years,
focusing mainly on:
 Process automation, and
 Industrial informatization.
 Data are now being collected mainly
from the automation machineries, and
organizations are still learning to:
 Identify what data to collect, and
 How to use the results more
effectively.
20

21. Customer View On ‘Making Most Out
Of Data’
 All companies understand the importance of collecting and making use of their data, and have internal
urgency to venture into Industrial Internet.
 Other than some large size multi-nationals, local companies seemed to lack own competence in making most
out their data, nor the knowledge in what and how to use such data to better develop their business and
capability etc.
 Many leading local manufacturers are automating the production processes, collecting volume of production
data and doing analysis in an effort to improve their operational efficiency; however, majority of the locals,
including many Stated Owned Enterprises (SOEs) especially in those traditional labor intensive industries, are still
exploring the idea, lagging behind their local and international competitors.
 Almost all companies are mainly focused in the immediate benefits from better operational efficiency –
process improvement, costs and energy reductions, and quality and yield improvement, etc.
 Chinese companies traditionally prefer to own internal expertise and if possible internal technology solutions,
therefore, it is expected most local companies will eventually build an in-house Industrial Internet team. Before
that, they will definitely eager to learn from international experienced experts, reference success cases, and
utilize proven technology solutions.
21

22. Potential Customer Needs
 There are 2 main drivers for manufacturers to adopt industrial internet and big data in China:
 Production efficiency and cost reduction – automation and big data application in production processes
enable manufacturers to better improve equipment efficiency, reduce equipment failures, improve
product quality, and reduce production costs.
 Government drives to promote industries informatization, and energy saving and emission control –
encourages manufacturers to invest in production automation systems, as well as energy and emission
data collection systems.
 Different industries have different requirements and applications with big data, and many big data are
unstructured. Customizations are often needed for data collections, analysis, visualization and integration that
require extensive industry knowledge and experience.
 Industry specific applications and tools are not readily available in the market nowadays, therefore, there are
great opportunities available for industry specific expertise in:
 Data collection, management and application models
 Data analytic tools
 Successful case applications
22

23. Who Are Most Potential Customers?
Some characteristics of the potential manufacturers to adopt Industrial Internet:
 Multi-national Organizations (MNO) – Wholly Foreign Owned Enterprises (WFOE)
 Foreign-Chinese Joint Ventures (JV)
 Manufacturers with automated productions and are collecting good amount of data
 Manufacturers who are facing international competitions (i.e. international brand such as Lenovo, Haier, etc.
and industries such automobile, chemicals, etc.)
 Larger size manufacturers and have funding
 Public services providers (i.e. power, water, infra-structure, etc.)
23

24. China Top 50 Big Data Analytics
Companies – Potential Partners /
Competitors
24
Innovation
Capacity
(35%)
Service
Capacity
(20%)
Solution
(30%)
Market
Influence
(15%)
Category Score (10)
Rank Company
Total Score
(10)
1 IBM 9.1 10 8.5 8.5 9
2 Oracle 8.7 9 8 8.5 9
3 Google 8.6 9 8 8.5 8.5
4 Amazon 8.5 9 8 8.5 8
5 HP 8.3 8.5 8 8.5 8
6 SAP 8.2 9 8 7.5 8
7 Intel 8.1 9 8 7.5 7.5
8 Teradata 8.0 8.5 8 7.5 8
9 Microsoft 7.9 8 7.5 8 8
10 阿里Alibaba 7.7 8.5 7 7 8
11 EMC 7.4 8 7 7.5 6
12 百度Baidu 7.0 8 5 7.5 6
13 Cloudera 7.4 7.5 8 7.5 6
14 雅虎Yahoo 7.0 8 6.5 6 7
15 Splunk 7.1 8.5 7.5 6 5.5
16 腾讯Tencent 7.0 7 6 7 8
17 Dell 6.6 7 6.5 7 5
18 Opera Solutions 6.3 7 5.5 6.5 5
19 Mu Sigma 6.0 6.5 5 6 6
20 Fusion-io 6.1 7 5.5 5.5 6
Innovation
Capacity
(35%)
Service
Capacity
(20%)
Solution
(30%)
Market
Influence
(15%)
Category Score (10)
Rank Company
Total Score
(10)
Innovation
Capacity
(35%)
Service
Capacity
(20%)
Solution
(30%)
Market
Influence
(15%)
Category Score (10)
Rank Company
Total Score
(10)
39 集奥聚合Beijing Geo 5.0 5 5 5 5
40 国双科技Gridsum
Technologies 4.5 4.5 5 4.5 4
41 百分点Beifendian 4.5 5 5 4 3.5
42 荣科BringSpring 4.3 3.5 6 4.5 3.5
43 博雅立方CubeAd 5.0 5 5.5 5 4
44 亿赞普 IZP
Technologies 4.3 5 3 4.5 4
45 InsideSales 4.4 4.5 4.5 4.5 4
46 众志和达Soul 4.3 4 6 3.5 4
47 颖源科技YYSoft 5.0 5 5.5 4.5 5
48 星环科技Traswarp 4.2 5 4 3.5 4
49 拓尔思TRS 4.2 4 4 5 3
50 国云数据Guoyun
Data Tech 4.1 4.5 3 4 5
Source in Chinese: http://www.weste.net/2014/8-8/98295.html
21 1010data 5.8 6 6 5 6.5
22 SAS 5.8 6.5 5 5.5 6
23 Twitter 5.7 5 6 6 6
24 LinkedIn 5.6 6 4 6.5 5
25 华为Huawei 5.9 6 5.5 6 6
26 淘宝Taobao 5.3 6 4 6.5 3
27 用友Yonyou 5.3 6 4 5.5 5
28 曙光Sugon 5.2 6 5 5 4
29 东软Neusoft 5.2 6 5.5 4.5 4
30 MapR 5.2 6 5.5 4.5 4
31 金蝶Kindee 5.1 6 5 4 5.5
32 Alpine 5.1 6 5 4.5 4.5
33 高德AutoNavi 5.1 5.5 6.5 4 4.5
34 Fujitsu 5.1 6 5.5 4 4.5
35 华院数云Shuyun 5.1 6 5.5 4 4.5
36 博康智能Bocom 5.0 5.5 5.5 4.5 4
37 九次方金融数据
Jusfoun Big Data 5.3 6 5 4.5 5.5
38 永洪科技Yonghong
Technologies 4.9 5 6 4.5 4

25. Some Local Industrial Internet Solution
Providers
Industrial Internet Solution Providers
Beijing Teamsun Technology Co., Ltd. www.teamsun.com.cn
Inspur Co., Ltd. www.inspur.com
Shanghai Digital Intelligence System Technology Co. Ltd.
General Data Technology Co., Ltd. www.gbase.cn
Harmony Wisdom Technologies Co., Ltd.
Beijing Baoxin Technology Co. www.baoxinkj.com
Neusoft Corporation www.neusoft.com
25

26. Conclusion &
Opportunities
26

27. Drivers For Professional Services
Engagements
 Services will be the largest segment of Big Data Analytic and Visualization market, in terms of consulting and
integration & deployment services.
 From a business perspective, enterprises are looking to professional services firms for:
 Guidance in identifying the most valuable data sources and Big Data Analytics use cases;
 Understanding the privacy/security/compliance implications of various uses of Big Data analytics;
 Advice on aligning internal stakeholders including the C-suite, LOB executives and IT.
 From a technology perspective, enterprises are looking to professional services firms to:
 Advise on technology investment decisions, including hardware, data management software (e.g.
Hadoop distributions) and business intelligence/data visualization applications;
 Aid in architecting, deploying and administering Big Data infrastructure and analytics technology;
 Help integrate Big Data technology with existing infrastructure, systems and business processes.
 Professional services are business of relationship. Current trusted partners will be the primary candidates to be
engaged as service providers.
27

28. China Industrial Internet Market
Readiness & Immediate Needs
 China is behind developed countries in Industrial Internet adoption.
 Industry is just entering phase 1 “Operational Efficiency” focusing mainly on Process Automation and Industrial
Informatization for some of the larger and more advanced organizations.
 Some pioneering organizations are starting to explore phase 2 “New Products & Services”, which should
accelerate in the next 2 years.
 Full integration across all internal departments and entire business value chain is being contemplated, and will
be several years down the road.
 Data are now being collected mainly from the automation machineries, and organizations are still learning to:
 Identify what data to collect, and
 How to use the results more effectively.
 In current early adoption phases, organizations are focusing on “Operational Efficiency” and there are
opportunities to bring in:
 Industrial specific method of operations which are working in advanced countries, and
 Industry expert to localize and standardize solutions for Chinese industries.
28

29. How To Access The Market
 Industrial Internet advisory and implementation requires trusted consultants, typically resulted in years of close
co-operations with potential customers.
 Foreign companies lack local success cases and trusted relationships. It is advisable for foreign companies to
bring in much needed international expertise and success cases, and form win-win partnership with local
professional providers who have solid relationships with potential customers.
 Potential professional service providers are:
 Reputable international consulting firms – advisory works
 Industrial specific technology and solution providers – technologies and workable solutions
 Local industrial internet and industry specific research centers – localized applications and internal
developments
 Production automation and smart production system integrators – automation system deployment and
data collections
 ERP service providers – integrating big data into other departments
29

30. Appendix: Interview
Results
30

31. Interview Results (1)
31
The Company current status:
Production automation Y Y N N N Y
Using automation data Y Y Y N N N Y
Modularize process Y N Y N N N Y
Collect and analyze operation data N Y Y N Y Y
Data solution N SAP Kingdee N N Internal
Consulting service N N Pdn, Fin Consider Ind expert Tsinghua Univ
Internal driving force Y Y Y Y Y Y
Operation improvement IIoT stage Y Y Not yet Not yet Not yet Y
Company wide integration N Y N N N Pdn, R&D
Industry Y
Company listing N
Annual Revenue in RMB millions Some0% 50% 100%
Eoslift
Machinery
NEEQ
< 100
Anonymous
Car parts
CN subsid
>10,000
Putian
Consumer
IT/CN JV
100-1,000
Intel
Semi-conductor
NASDAQ
>10,000
Handan
Steel
SOE
>10,000
Luye
Pharma
HKSE
1,000-10,000

32. Interview Results (2)
32
The company perception of “Value” in IIoT:
Operational efficiency
Preventive maintenance? ( Y / N ) Y Y Y Y Y Y
Process automation? ( Y / N ) Y Y Y Y Y Y
Operation optimization? ( Y / N ) Y Y Y Y Y Y
Global asset visibility? ( Y / N ) N Y N N N N
Others? ( Y / N ) N N N N N N
Incremental revenues
Operations and predictive maintenance? ( Y / N ) Y Y Y Y Y Y
Commercial optimization? ( Y / N ) N Y Y Y Y Y
New customer experience and M2Mapplications? ( Y / N ) N Y Y N Y Y
Others? ( Y / N ) N N N N N N
Industry Y
Company listing N
Annual Revenue in RMB millions Some0% 50% 100%
Eoslift
Machinery
NEEQ
< 100
Anonymous
Car parts
CN subsid
>10,000
Putian
Consumer
IT/CN JV
100-1,000
Intel
Semi-conductor
NASDAQ
>10,000
Handan
Steel
SOE
>10,000
Luye
Pharma
HKSE
1,000-10,000

33. Interview Results (3)
Unconventional revenues
Product as a platform? ( Y / N ) N N N N N N
NextGen products/services? ( Y / N ) Idea phase Y N N Y Y
Most valuable information provider? ( Y / N ) N Y N N N N
New business and operating models? ( Y / N ) Idea phase Y N N Y N
Others? ( Y / N ) N N N N N N
In-house IIoT staffs
Data Scientists? ( Y / N ) N Y Y Y
Data Managers? ( Y / N ) N Y Y Y
Statisticians? ( Y / N ) N Y Y Y
Data Analysts? ( Y / N ) N Y Y Y
33
Industry Y
Company listing N
Annual Revenue in RMB millions Some0% 50% 100%
Eoslift
Machinery
NEEQ
< 100
Anonymous
Car parts
CN subsid
>10,000
Putian
Consumer
IT/CN JV
100-1,000
Intel
Semi-conductor
NASDAQ
>10,000
Handan
Steel
SOE
>10,000
Luye
Pharma
HKSE
1,000-10,000

34. Interview Results (4)
Making Most Out Of Data “DATA”
Are DATA being analyzed? ( Y / N ) internal or outside tools? N Internal Outside N N Internal
Know what to do with DATA? ( Y / N ) N Y Y N N Y
Know how to use DATA to help to develop their business? ( Y / N ) N Y Y N N Y
Can DATA be easily visualized? ( Y / N ) internal or outside tools? N Internal Outside N N Y
If buy services, from Local or Foreign company? Both Both Local Both Both Both
What are short term perspectives, operation improvement? Idea phase N Y Y Y Y
What are long term perspectives Idea phase N Y N Improve ind Integration
Any urgency to make use of DATA? ( Y / N ) Y Y Y Y Y Y
Made concrete progress with IIoT? ( Y / N ) N Y N N N Y
Have a comprehensive strategy for IIoT? ( Y / N ) N N N N N Y
34
Industry Y
Company listing N
Annual Revenue in RMB millions Some0% 50% 100%
Eoslift
Machinery
NEEQ
< 100
Anonymous
Car parts
CN subsid
>10,000
Putian
Consumer
IT/CN JV
100-1,000
Intel
Semi-conductor
NASDAQ
>10,000
Handan
Steel
SOE
>10,000
Luye
Pharma
HKSE
1,000-10,000

35. Case Studies
35

36. Case Studies: Industrial Supply Chain
 JD.com utilizes big data to analyze and forecast regional product demand, enhance the efficiency of
distribution and warehousing, and ensure customer’s next day delivery experience. Complete supply chain big
data are collected using RFID and other electronic identification technologies, internet of things (IoT), and
mobile Internet. Using the analysis results of these data enabled JD to improve warehousing, distribution and
sales efficiency and reduce costs.
 Haier has a fairly efficient supply chain system linking up various components of its market chain. The system is
centering around customer order information, integrating global supply chain resources and global user
resources, and driving product flows and capital utilizations. All aspects of its supply chain, customer data,
internal data, and supplier data are aggregated into the supply chain system. Utilizing the collected supply
chain big data and the analysis, Haier is able to improve and optimize its supply chain continuously and to
ensure prompt response to customers’ needs. Please see “Case Studies: Haier’s Intelligent Manufacturing Enters
Industry 4.0”.
 Many manufacturing companies rely on market forecasts and various other variables, such as sales data,
market information, exhibitions, news, competitor data and even weather reports to support their product
sales. Using data from sales, product sensor and supplier database, manufacturers can accurately forecast
global demand in different regions. Manufacturers can also save costs, by tracking inventory and component
prices, and buy when prices fall. If further using data generated by product sensors, manufacturers can identify
and predict what and where replacement parts are needed, they can greatly reduce inventory, and optimize
the supply chain.
36

37. Case Studies: Haier’s Intelligent
Manufacturing Enters Industry 4.0
 To combat rising production costs and changes in consumer demand, to get out of
the low-cost Chinese manufacturing and price war in electrical appliance industry,
and to establish brand reputation and improve user experience, Haier had adopted
Internet 4.0 and upgraded their manufacturing plants to "smart factory".
 In 2015, Haier is operating a smart refrigerator factory in Shenyang and air conditioner
factory in Zhengzhou, and is upgrading other factories. Users can order home
appliances in Haier mall, customize according to their personal preferences,
including color, style, performance, and structure. Haier even allows users to interact
with the factories and visualize the productions in real-time during the whole
manufacturing process of their orders.
 Hidden behind these changes, Haier had reinvented their manufacturing process.
Productions are automated, product design are modularized, and operation and
management structures are interconnected online.
 Haier looks to represent its industry, maybe even its country, and enters China Industry
4.0. The company is commencing its evolution from “mass production” to “make to
order” intelligent manufacturing.
37

38. Case Studies: Industrial Internet Trial
Companies with Ministry of Industry
and Information Technology “MIIT” (1)
Region No Company Model Website
Beijing
1 China Guodian Corporation, China
Datang Corporation
Integrated Internet platform for innovative power applications www.cgdc.com.cn
2 Beijing Jingdong Technology Co., Ltd. Virtual intelligent hardware incubator www.bjjingdong.com
3 Baidu Industrial crowdsourcing APP development platform www.baidu.com
4 Beijing Uniwisdom Technology Co.,
Ltd.
Industrial enterprises big data intelligence service platform www.kolong.cn
Henan
5 Synear Food Holdings Food wechat direct marketing solutions www.synear.cn
6 Zhengzhou Huijia Software Innovative household industry consumer services O2O platform www.123huijia.com
7 Centfor Electronic information industry Internet personalization solutions www.centfor.com
Shandong
8 Haier Innovative full-service interactive Internet system www.haier.net
9 www.hopingshandong.gov.cn Consumer goods industry ecosystem internet marketing services
platform
www.hopingshandong.gov.cn
10 Luthai Textile Virtual fitting and big data technology for online customization
production system
www.lttc.com.cn
11 Huitong Network Mobile community O2O business service platform www.ythuitong.com
38

39. Case Studies: Industrial Internet Trial
Companies with Ministry of Industry
and Information Technology “MIIT”(2)
Region No Company Model Website
Guangdong
12 China Southern Airlines Company
Limited
Innovative mobile aviation customer service and management
process system
www.csair.com
13 Everygold Science & Technology Co.,
Ltd.
Innovative integrated service platform for manufacturing
foreign trade taxation
www.everygold.com
14 Guangdong Guangxin Holdings
Group Ltd.
Innovative security management traceability platform for
mobile operators
www.gdiic.com
15 Prosperity Textile Innovative fabric crafts and customized production using laser
technology
www.pdenim.com
Anhui 16 Potevio New energy vehicles intelligent network management platform www.potevio.com
Jiangsu
17 Yanghe Distillery Mobile Internet flexible production model www.chinayanghe.com
18 Suning Commerce Mobile Internet social marketing solutions www.suning.cn
Inner
Mongolia
19 Inner Mongolia Yili Industrial Group Development of product innovation and transparent industrial
chain based on big data
www.yili.com
Jiejiang
20 JoYoung Consumer behavior platform based user experience big data
analytics
www.joyoung.com.cn
21 Wellcom Technology Co., Ltd. Mobile Internet 3rd party payment security system www.wellcom.cn
Chongqing 22 ZBJ Network Inc. Industrial services crowdsourcing platform www.zhubajie.com
Fujian 23 www.liuti.cn Fluid machinery manufacturing marketing services solutions www.liuti.cn
39

40. Contact Information
Innovation Business Accelerator Co., Ltd.
www.innovba.com
Eric Cheng
Principal Consultant, ICT
Tel: +852 9262 6202
Email: ericc@innovba.com
40