Integration of Chinese Manufacturing and the Internet: Accelerating the Emergence of New Energy

What is the “fusion” reaction of China's manufacturing, which has the most complete global system and the largest production capacity, once it collides with the passion of the Chinese Internet, which is the world’s number one in the world and second in the world?

The historical integration of manufacturing (industrialization) and the Internet (informatization), two technologies, two industries, and two major strategies has become the top priority of the national top-level design in the first half of 2016. Related blueprints are also painted one by one. on. In 2016, under the guidance of new concepts such as smart manufacturing and industrial Internet, digital factories, industrial software, cloud computing, robotics, etc. have become the main theme of China's manufacturing innovation and development, and the economic transformation and upgrading of kinetic energy is accelerating. Bloom and bear fruit.

From organizational integration to project integration

The integration of the two accelerated landing

To promote the integration of manufacturing and the Internet, and to improve the theory and practice of the integration of the two countries in China to a new stage. This is seen as an upgraded version of the integration of the two.

In January 2016, the executive meeting of the State Council decided to promote the integration and development of “Made in China 2025” and the “Internet”, and the convergence of the two national strategies will be realized. On May 20, the State Council issued the Guiding Opinions on Deepening the Integration of Manufacturing and Internet Development, and clarified the overall goals and tasks for the coordinated advancement of the “Made in China 2025” and “Internet” actions. On July 27, the Outline of the National Strategy for the Development of Informatization was formally promulgated. It is imperative for information technology to accelerate the in-depth integration of various technologies, especially industrial technologies, and promote industrial transformation.

On February 1, 2016, the Industrial Internet Industry Alliance, which enjoys full support from government resources, was established in Beijing. Some 143 well-known companies from industries, communications, Internet, and software services, including Alibaba, Huawei, and Datang, finally sat down at the same desk to discuss technical difficulties and industry standards. On August 12, the second plenary session of the Working Party of the Alliance passed China’s first document entitled “Industrial Internet Architecture (version 1.0)” on the comprehensive system of industrial Internet. In addition, the alliance has also passed the first batch of eight verification and demonstration platform projects, including production quality management, industrial network interconnection and data acquisition, smart urban water supply, cloud manufacturing services, AiBed elderly care, safe interconnection of machine tool cloud manufacturing platform, and the 31 Platforms such as intelligent services and industrial Internet network architectures. This move has sent an important signal to the global industrial community - the Industrial Internet China program has come!

In addition to the formation of the government's deep participation in the industrial Internet industry alliance, other cross-industry collaboration alliances are also emerging. For example, China's Internet and industrial integration and innovation alliance, various industry self-initiated smart manufacturing development alliances and various industrial 4.0 organizations. Under its promotion, a group of key projects have received the support of the country, industry, and local governments. The main subjects of these projects are manufacturing companies and communication companies. More projects are jointly filed by two types of enterprises. On July 4, 64 projects were selected for the 2016 Smart Manufacturing Pilot Demonstration Project. In the near future, the first pilot demonstration projects for manufacturing and Internet integration will be released, and the total amount is expected to be about the same as last year. (In 2015, the Ministry of Industry and Information Technology supported 100 companies in the name of “Integrated Innovation Enterprises for Internet and Industrial Innovation”). These projects reflect the current highest level of China's industrial sector in the field of smart manufacturing and other innovations, and also reflect profoundly that the Internet and manufacturing industries are accelerating business integration and accelerating the formation of "new kinetic energy" in China's manufacturing transformation and upgrading.

From smart manufacturing to industrial interconnection

Promote a more pleasing perspective

"The integration of the Internet and industry not only opens up new fields for China's Internet industry, but also provides new impetus for China's economic transformation and upgrading. It is a new opportunity for China's industry to seize the opportunity of global industrial change." Academician of Chinese Academy of Engineering, Expert Committee of Industrial Internet Industry Alliance Director Chung Hee said. Yang Haicheng, chief engineer of China Aerospace Science and Technology Corporation, believes that the integration of manufacturing and the Internet is a more in-depth expression of the “Internet manufacturing industry”, indicating a clearer path for manufacturing from digital to networking and then to intelligent.

In fact, the "specialty fleet" composed of Internet fleets and industrial aircraft carriers provides the most important fire for the current supply-side reforms - "new models, new formats, and new kinetic energy." The name of this fleet, sometimes called Industry 4.0, sometimes called the Industrial Internet, is more often called "Intelligent Manufacturing." There is indeed a subtle difference between them, but in essence, it is nothing more than a difference in context and perspective.

Industry 4.0 is Germany's vision for future industrial forms, and intelligent manufacturing is the corresponding Chinese concept. In 2015, China established the first ten-year plan of action for implementing the strategy of building a powerful country, “Made in China 2025,” and made intelligent manufacturing its main direction. Since the beginning of this year, the dialogue and cooperation between China and Germany in the field of smart manufacturing/industry 4.0 have been developing in depth. Sino-German Smart Manufacturing Alliance was established in Shenzhen, Guangdong on April 9. On July 1, the Ministry of Industry and Information Technology publicized the first batch of 15 Sino-German intelligent manufacturing cooperation pilot demonstration projects. Through international cooperation, Huawei and SAP are jointly exploring smart manufacturing solutions. Baosteel and Siemens are committed to innovation in the steel industry's Industry 4.0 business, Baidu and BMW are collaborating on the development and operation of highly autonomous vehicles, Weichai Power, Sichuan Changhong, etc. They have cooperated with German companies in the development of high-end hydraulic components smart factories, as well as personalized customized home appliances intelligent manufacturing digital virtual factory model construction. According to reports, both China and Germany are discussing the standardization issues in the “Industry 4.0” field under the framework of the China-Germany Standardization Cooperation Committee. The leading Chinese information and communication companies represented by Huawei are actively participating in the development of smart production solutions in Europe.

German Industry 4.0 does not explicitly discuss the relationship between manufacturing and the Internet. The concept of industrial Internet in the United States has clearly proposed that the new industrial network will lead the integration of information technology and manufacturing technology. In July of last year, GE’s big data software platform officially linked up with China Telecom’s telecommunications infrastructure and value-added services, and formed a preliminary plan for China’s industrial Internet market. In January of this year, Haier signed a contract with GE to promote GEPredix for the first time as an industrial Internet platform for related applications in domestic manufacturing. Under the background of the German Industry 4.0 program and the United States industrial internet programs that have entered China, under the impetus of the competent department such as the Information and Communication Administration of the Ministry of Industry and Information Technology, China Commercial Aircraft, Smart Cloud, Haier Group, Weichai Power, Sany Heavy Industry, Chinese companies such as Zoomlion and Aerospace Science and Technology actively explore the path of the construction and development of industrial Internet platforms. At the same time, local governments have also vigorously promoted the construction of new types of industries such as industrial associations and cloud platforms, and strengthened the basic support for the integration of development. On May 28th, the Shanghai Economic and Information Technology Commission signed a contract with the China Institute of Information and Communications to jointly build a national model city for industrial Internet. On June 17, Shaanxi, Fujian, Xinjiang and other provinces and districts governments successively issued implementation plans and action plans for the development of big data and cloud computing industries, and strengthened the construction of industrial clouds and industrial big data applications. A number of important supporting guidelines and policies have been issued one after another. With the new infrastructure such as the industrial Internet as the starting point, the building of a powerful country is entering a new phase of full implementation.

From "the old two blend" to "the new two blend"

ICT engine is more prominent

Compared with the previous round of integration, the information and communication industry has played a more prominent role in the new round of integration, and is undertaking a new mission of leading and driving change in manufacturing.

For a long time, the integration of the two countries in China has been promoted by the state, and manufacturing companies have been the main players. Manufacturing information technology is its main battlefield. IT companies have mainly participated in and supported from the perspective of suppliers and service providers. For the new integration, the informationization and intelligence of the traditional manufacturing industry is only one of its battlefields. Similar new business models such as C2B user-defined manufacturing, software-defined manufacturing, driverless transportation systems, predictive product after-sales maintenance, and large-scale artificial intelligence services have opened up a much broader future than traditional manufacturing upgrades.

In the consumer goods manufacturing industry such as clothing, bags, shoes and hats, home appliances, and home appliances, the C2B business model, which is based on the Internet as a commercial infrastructure, can realize large-scale personalized customization is developing rapidly. The Red-collar Group has been transformed through the Internet. It spent 12 years, invested nearly 300 million yuan, and used a 3,000-person factory as a laboratory to realize large-scale, customized and industrialized manufacturing. In a large number of branded apparel companies, they faced high inventory. With the rapid decline in orders and falling into the bottom of the operating cycle, the production cycle was shortened by nearly 50%. The average annual sales revenue and profit growth of customized businesses exceeded 150%.

In the equipment manufacturing field, R&D and production integration, predictive maintenance, smart products and big data services, and other new business models and new models have also greatly changed the understanding of the company's market. Weichai Power has established an industrial big data platform and an industrial cloud platform with the help of China Telecom to achieve product lifecycle optimization and management for product development, production, and aftermarket services. Xugong also cooperated with Ali to use industrial big data layout for remote diagnosis. Faults and post-market services. Jiangsu Jianhu's Haohang Valve Co., Ltd. adopts the "Internet manufacturing" model, in which workers perform production operations according to the drawings entered into the system in front of each machine's operation table in the company's workshop. The company's users can see the entire operation of the shop through the Internet at any time. The process of completing the orders not only promotes the intelligentization of production methods, but also enables the products themselves to be intelligent, and further promotes the interaction of product design, sales, and improvement processes, and accurately interfaces with the demand side.

The innovative practices of countries such as Germany and the United States have shown that the new-type fusion technology is not readily available in the hands of a certain industrial group or IT giant. Intelligent Manufacturing Infrastructure Technology - Industrial Internet, Key Enabler Technology - CPS (Sciber Physical System), Software-Defined Manufacturing, and Core Intelligence Technology - Big Data and Industrial Intelligence, IT Vendors and Manufacturing Giants It is still in a phase of cross-exploration and no one has formed a monopoly. From the perspective of the Ministry of Industry and Information Technology, the demonstration project of intelligent manufacturing piloted by the Ministry of Equipment, the demonstration project of integrated development of manufacturing and Internet led by the Informatization and Software Services Industry Division, and the construction of industrial Internet standard system led by the Information and Communications Administration and the alliance test Bed projects are being promoted from the perspective of manufacturing, software, and network perspectives.

It is reported that the Industrial Internet Industry Alliance has formally established a spectrum work group on August 12th. It will carry out work on the evaluation of frequency use, demonstration of frequency requirements, candidate frequency bands and propagation characteristics, and inter-system electromagnetic compatibility testing for the Industrial Internet. In order to provide a platform for different enterprises to match the needs of differentiated investment and financing in the industrial Internet field, and to use the bond of funds to accelerate the ecological construction of the Industrial Internet Alliance, relevant national parties have already proposed the idea of ​​building an investment and financing platform for the Industrial Internet Industry Alliance.

In the face of a new round of scientific and technological revolutions and industrial innovation global competitions that are almost in sync with China, Germany, and the United States, China's information and communication companies should further expand their narrow-mindedness in the manufacturing market, and increase their strategic importance to industrial networks and industrial applications. The research and development investment in industrial intelligence has made efforts to explore new business models and new models for the integration of IT applications and manufacturing resources.

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