China’s manufacturing sector has been going through a challenging period. Traditional drivers of manufacturing demand – investmentled growth policies at home and exports abroad – have weakened. Across manufacturing sectors, revenue growth stalled and profits fell from 2010 to 2015 (with a slight recovery in 2016). Returns to shareholders also fell steadily.
Digital transformation can play an important role in helping Chinese manufacturers improve performance and restore growth. In this paper we share the results of our research on the impact of digital on the performance of Chinese manufacturers and describe how companies can embrace new digital capabilities to sharpen their competitive edge and seize new opportunities in the digital economy. This will require comprehensive, long-range strategies to embed digital processes across organizations, using data to understand customer needs, and building new organizational capabilities.
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