Abstract
This study aims to analyze the digital transformation process implemented in Comac, a Chinese airline manufacturing company. It will discuss its impact on the manufacturing department and the overall company. The analysis covers a brief overview of Comacs’ manufacturing system before the digital transformation journey and the potential challenges faced during the implementation. Also, the advanced practices of digital transformation for big corporations like Comac, the important considerations for manufacturing and operation due to DT, and the outlook of China’s manufacturing industry with DT. Finally, this study will focus on the learner’s reflection on the “intelligent manufacturing” trend in the Chinese manufacturing industry. The study will cover all the key elements comprehensively with accurate information. The sources will be from 2018 to the latest so that updated information is presented.
Introduction
The importance of a company’s digital transformation (DT) is rising in the modern, technology-driven, and fast-paced corporate world. This is especially true for the industrial sector. The reason is that businesses are continually looking for ways to increase their production, competitiveness, and efficiency. One business recently undergoing DT is Comac, a Chinese airline manufacturing firm.
This essay aims to examine the Comac DT process and its overall effects, particularly on the manufacturing division. This essay will also investigate probable difficulties Comac may have had when implementing digital transformation. It will go over advanced DT strategies appropriate for large businesses like Comac. The paper will also examine crucial factors that companies must consider when manufacturing and operating due to DT and offer a prediction for the development of China’s manufacturing sector under DT.
The paper is based on relevant business journals, business reports, and other scholarly articles with updated information. This paper is intended to provide a comprehensive understanding of DT and its implications for the manufacturing industry, specifically for Comac and its manufacturing department.
Brief Analysis of Comac Manufacturing System before Digital Transformation Journey
Before its DT journey, Comac’s manufacturing system was mainly based on traditional methods, such as manual labor and manual processes. The company faced several challenges, including inefficiencies in its operations, low productivity, and high costs (Zhang et al., 2022). The lack of digitalization in its operations also resulted in limited visibility and control over its processes and a lack of real-time data, making it difficult for the company to respond quickly to changing market conditions.
However, the company recognized the need for change and decided to undergo digital transformation to modernize its operations. It also improved its competitiveness in the global market (Wyk, 2022). Comac understood that DT would help it overcome its current challenges and provide it with new opportunities to grow and succeed. The main competitor has been Airbus and Boeing, which has laid strategies to compete with them in the future.
Potential Challenges Observed While Implementing Digital Transformation
The implementation of digital transformation in the manufacturing industry, including Comac, has been accompanied by a range of challenges. Some of the potential challenges observed by Comac while implementing DT include the following:
Technological Challenges
Integrating advanced technologies such as artificial intelligence, the Internet of Things, and robotics into manufacturing can be complex and challenging (Zhang, 2022). They all require significant investment and technical expertise. Comac may have needed help acquiring and implementing the latest technologies and ensuring their compatibility with existing systems.
Workforce Challenges
Digital transformation can also result in changes to the workforce, requiring employees to be re-skilled and trained to work with new technologies (Yao et al., 2021). This can be a significant challenge for companies like Comac, as it requires significant investment in employee training and education programs. Employees need to have digital skills so that an enterprise can manage to face stiff competition.
Data Security Challenges
The increased use of digital technologies in manufacturing also raises concerns about data security and privacy (Verhoef et al., 2021). Comac may have faced challenges in ensuring the security of sensitive data. For instance, in areas like production and financial information and protecting it from cyber-attacks. Despite these challenges, Comac and other companies in the manufacturing industry that have successfully implemented DT have seen significant benefits, including:
Improved efficiency has been enhanced whereby digital transformation has the potential to automate many manual and repetitive tasks. It also assists in freeing up employees to focus on higher-value activities and improving overall efficiency (Verhoef et al., 2021). Thirdly, increased productivity due to the integration of advanced technologies into the manufacturing process can also result in higher productivity levels and the ability to produce higher-quality products in less time.
Moreover, cost savings by automating many manual and repetitive tasks, DT can also result in significant cost savings for companies like Comac, as well as reduce the need for manual labor (Xue et al., 2022). Therefore, the implementation of DT in the manufacturing industry, including Comac, has been accompanied by both challenges and benefits. Companies must carefully consider the potential challenges, such as technological and workforce difficulties, and the benefits, such as improved efficiency and cost savings, when implementing DT in their operations.
Finally, even in the post-industrial stage, some enterprises in China still face challenging situations. The reason is that they are big but have yet to gain strength since their core technologies are being controlled from outside (Xue et al., 2022). With digital transformation, there is a reshaping of business models and the development of the economy in China. With digital technology, there is the promotion of enterprise production through costs being reduced, improved efficiency is improved and innovations. Relating digital transformation and efficiency of the product, development in the enterprises in China has been recorded. Therefore, these enterprises have globally dominated and occupied positions in the industrial revolution.
Advanced Practices of DT for Big Corporations
To overcome these challenges and achieve successful DT, companies like Comac have adopted advanced practices. They have used digital culture, data analytics, digital marketing, and automation (Wyk, 2022). Data analytics can identify inefficiencies in the manufacturing process and implement improvements to increase efficiency. It has led to its biggest milestone after its first successful flight. People have gained its trust through adopting digital transformation, and five million passengers have been transported so far. It has been confirmed to be the first Chinese competitor to Airbus and Boeing.
Creation of A Digital Culture
This involves changing the company’s culture to be more open to new technologies and processes and embracing a continuous improvement culture. According to a 2018 report by Deloitte, companies that adopt a digital culture are more likely to succeed in their DT journey (Konersmann et al., 2021). This is because they are better equipped to respond to changing market demands and to take advantage of new technologies as they become available. Upgrading IT infrastructure is a crucial aspect of DT for companies. Upgrading technology enables companies to improve the speed and accuracy of processes while also allowing for the integration of new technologies. A modern and robust IT infrastructure enables companies to be more agile and responsive to changing market conditions. It also helps them to take advantage of new business opportunities.
Data Analytics
It is an advanced practice for companies undergoing digital transformation (DT). It enables companies to harness the power of big data to make informed decisions and drive process improvements (Verhoef et al., 2021). Using data analytics in DT can help companies improve operational efficiency: Data analytics can help companies identify bottlenecks in their operations and provide insights into areas where they can improve efficiency. By analyzing operational data, companies can identify areas where they can automate processes, reduce waste, and optimize resources. Also, it can assist in enhancing customer experience whereby companies gain insights into customer behavior and preferences. Companies can create targeted marketing campaigns by analyzing customer data, improving customer service, and personalizing the customer experience.
Automation
It can be used to streamline the manufacturing process and reduce the risk of errors, as well as to increase production speed. According to a 2020 report by Accenture, automation is one of the key components of DT in the manufacturing industry (Xue et al., 2022). It can reduce costs, increase efficiency, and improve the quality of products. Automation helps digitize operations, which refers to converting manual processes into digital ones. This can be achieved through digital tools like repetitive tasks and streamlined processes. This leads to improved efficiency, reduced costs, and enhanced accuracy.
Digital Marketing
It is a crucial aspect of DT as it enables companies to increase brand visibility and drive sales (Yao et al., 2021). Digital marketing channels, such as social media, email marketing, and search engine optimization, allow companies to connect with customers in new and innovative ways. By leveraging digital marketing, companies can gain a competitive advantage, drive growth, and improve customer satisfaction. By leveraging IT uplift, digitizing operations, and digital marketing, companies can stay ahead of the latest advancements in DT. The successful implementation of these practices requires a clear strategy, strong leadership, and a supportive organizational culture.
Important Considerations for Manufacturing and Operation Due to DT
When implementing DT, it is important to consider cost, technicality, and people management factors. Companies must also be aware of the potential benefits and drawbacks of DT and be prepared to address any issues that may arise.
Cost
The cost of DT is a significant consideration for companies, as it can be expensive to implement new technologies and train employees in the use of these technologies. According to a 2020 report by Deloitte, the cost of DT can be reduced by using cloud-based solutions and by outsourcing certain aspects of the DT process to specialized companies (Konersmann et al., 2021). For instance, Comac C919 will be tested to see if it can fit in the Chinese airlines. China, through digital transformation, has connected with other countries like South Asian airlines. They have developed strong trading relationships.
In terms of cost, if a lower price is offered than that of Airbus and Boeing aircraft, it may be appealing since prices are hard to attain (Hayward, 2020). The prices will be half that of Airbus and Boeing. Globally, China has the second largest aviation market; therefore, it covers a large market because it is aided by its links. However, much time must be spent on developing a plane that can rival Airbus and Boeing to achieve this.
Technicality
Technicality is another important consideration, as integrating new technologies with existing systems can be complex and time-consuming (Zhang et al., 2022). Companies must be prepared to invest in the development of new systems and processes and to invest in the training of employees in the use of these technologies.
People Management
People management is also a critical aspect of digital transformation, as the change process can be disruptive to employees (Zhang et al., 2022). Companies must be prepared to invest in training and support for employees to help them adapt to new technologies and processes and to reduce the risk of resistance.
Outlook of China’s Manufacturing Industry with DT
DT has the potential to revolutionize China’s manufacturing industry, improving productivity, innovating new business models, and enhancing competitiveness. Companies that embrace DT are likely to see significant improvements in their operations and a greater ability to meet the market’s changing demands (Hayward, 2020). In addition, DT is expected to play a key role in driving the growth of China’s manufacturing industry in the coming years. According to a report by the China Academy of Information and Communications Technology, China’s digital manufacturing industry is expected to reach $ 1.5 trillion by 2025, up from $ 400 billion in 2018.
Improved productivity is achieved by leveraging digital technologies, such as data analytics and machine learning; companies can improve their ability to predict demand and optimize operations, leading to improved productivity (Ren et al., 2022). Secondly, with enhanced competitiveness with DT, companies can improve their offerings, reduce costs, and increase the speed of delivery, enabling them to remain competitive in the global marketplace. Thirdly, the development of new business models and digital transformation is also expected to enable the development of new business models, such as Industry 4.0, which is expected to disrupt traditional manufacturing processes and drive innovation.
However, DT also presents a number of challenges for China’s manufacturing industry. For example, the need for significant investments in technology and skills, the need to manage and protect sensitive data, and the seamless integration of new technologies with existing systems and processes (Ren et al., 2022). Therefore, the outlook of China’s manufacturing industry with digital transformation is positive, with significant improvements in efficiency, productivity, and competitiveness expected. However, companies must be prepared to invest in technology, skills, and data management to implement DT and realize its full potential successfully.
Reflection on the New Trend
Intelligent manufacturing, also called Industry 4.0, represents the integration of advanced technologies (Zhang, 2022). For instance, artificial intelligence, the Internet of Things, and robotics, into the manufacturing process to achieve a highly efficient and flexible production system. The trend has gained traction in the Chinese manufacturing industry in recent years. Many companies have adopted it to improve production efficiency, reduce costs, and enhance product quality.
China has actively promoted intelligent manufacturing, with the government investing in research and developing advanced technologies. It offers support for companies to upgrade their production facilities and processes. This has resulted in significant improvements in the country’s manufacturing industry, making it more competitive in the global market (Zhang, 2022). However, the implementation of intelligent manufacturing also poses challenges, such as the need for significant investment, the need to train and re-skill workers, and overcoming technological and data security issues. Hence, intelligent manufacturing is a promising trend in the Chinese manufacturing industry, potentially driving growth and competitiveness. Companies must carefully consider the benefits and challenges and make strategic investments to transition to the new production paradigm successfully.
Conclusion
In conclusion, the implementation of DT in Comac has had a significant impact on the manufacturing department and the overall company. Despite the challenges faced during the implementation process, DT has the potential to revolutionize the Chinese manufacturing industry and improve the competitiveness of companies like Comac. As digital transformation continues to evolve, companies must be aware of the important considerations for manufacturing and operation and embrace intelligent trends to stay ahead of the competition. Also, they should adopt digital practices that make them remain productive as other developing companies continue to operate worldwide.
As a business student, DT represents an exciting opportunity for the manufacturing industry to improve and evolve. The use of advanced technologies such as data analytics, automation, and the creation of digital culture is key to realizing the full potential of DT. With the right approach, companies can successfully implement DT and reap its benefits. The future of the manufacturing industry is bright with the adoption of DT, and I look forward to seeing how companies continue to innovate and drive the industry forward.
References
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