What exactly is "Innovation"? Why is it so popular?

▉ What is "Intelligent Manufacturing"?

On March 4, 2016, 24 domestic units specializing in the research and application of key software and hardware technologies jointly initiated the establishment of a non-profit social organization and named it the "Information Technology Application Innovation Working Committee" .

This committee is abbreviated as "Xinchuang Working Committee", which is the earliest origin of the word "Xinchuang".

Working Committee Member Unit

Soon after the establishment of the Working Committee, a large number of ICT industry alliances were established across the country. These alliances have jointly spawned a huge information technology application innovation industry, also known as the "ICT industry", or "ICT" for short .

▉ Why do we need to engage in “Intelligent Manufacturing”?

"Innovation" is actually a relatively "low-key" term. Its core essence is autonomy (fǎn) and controllability (lǎo).

For many years, due to historical reasons, our country has long been in the position of imitation and introduction in the field of information technology. International IT giants have occupied a large market share and monopolized the domestic information infrastructure. They have formulated domestic IT underlying technology standards and controlled the entire information industry ecosystem.

As China's national strength continues to rise, some countries have taken the initiative to provoke friction in the fields of trade and technology in an attempt to suppress China's peaceful development. As the underlying support of the national economy, the information technology field has naturally become their main target.

Faced with increasing security risks, our country must achieve autonomy and control as soon as possible.

Therefore, "Intelligent Manufacturing" was officially proposed.

▉ What industries does “Intelligent Manufacturing” actually include?

The ecosystem of the information and innovation industry is extremely large. From the perspective of the industrial chain, it is mainly composed of four parts: basic hardware , basic software , application software , and information security .

(Note) Streaming software: streaming software (such as WPS, Office), layout software (such as PDF), signature software

In the current domestic information and communications technology industry, chips, complete machines, operating systems, databases, and middleware are the most important links in the industrial chain.

Panoramic view of the ICT industry system (Source: Zhongcheng Think Tank, 2021.1)

▉ How big is the market size of “Intelligent Manufacturing”?

According to preliminary estimates, the global computing industry market will reach $1.14 trillion by 2023. China's computing industry market will reach $104.3 billion, or RMB 730 billion, which is close to 10% of the global market.

Based on the calculation that 50% is the market size of the information and communication technology industry, by 2023, the market size of China's information and communication technology industry will exceed 365 billion yuan , and the market capacity will exceed one trillion yuan.

▉ In addition to security and controllability, are there any other driving forces for the development of “Intelligent Manufacturing”?

Of course.

First, China has launched a "new infrastructure" strategy to vigorously promote digital transformation and build a "digital China". This means that we will have a large demand for construction in digital infrastructure.

As the saying goes, "good things should be kept within the family", these projects can just support domestic companies in the field of information technology and innovation, and help improve their R&D capabilities and talent pool.

Secondly, vigorously promoting "Intelligent Manufacturing" can help domestic enterprises transform, build a more complete information technology industry chain, and participate in international competition in the next few decades.

Finally, investing in information technology innovation will help drive economic growth, create jobs, promote the generation of technological dividends, replace the demographic dividend, and achieve sustainable development.

▉ What strategies have been adopted to promote the domestic "Intelligent Manufacturing" industry?

In terms of security and controllability, our country has proposed a "2+8" system . "2" refers to the party and government; "8" refers to the eight major industries related to national economy and people's livelihood: finance, electricity, telecommunications, petroleum, transportation, education, medical care, and aerospace.

Judging from the development steps of domestic information innovation, it is also following this idea:

The first step is to apply it in closed markets such as the party and government, polish products and ecology, and cultivate backbone enterprises. This market is expected to have a market space of hundreds of billions;

The second step is to enter key industry markets, such as telecommunications, rail transit, and electric power, after the product is easy to use and the ecosystem is relatively mature. The market can be expanded by 4 to 5 times compared with the previous stage.

The third step is to fully apply trusted innovation products to the consumer market, which will be a market worth over one trillion yuan.

▉ What is the current development status of “Intelligent Manufacturing”?

The whole year ( 2020 ) is recognized as the first year for the implementation of the domestic information and innovation industry.

Against the backdrop of resuming work and production and the full launch of "new infrastructure", since last year, information and communication technology projects have begun to be rolled out on a large scale across the country, and a phenomenal boom has emerged in the information and communication technology industry.

Taking "Intelligent Manufacturing" as an opportunity, companies in various key fields in China have entered the market one after another to compete for the "cake" of the Intelligent Manufacturing market.

The industry generally believes that in the next three to five years, the information and innovation industry will usher in a golden period of development . China's IT industry will usher in an unprecedented wave of domestic substitution in the fields of basic hardware, basic software, and industry application software .

▉ What opportunities and challenges does “Intelligent Manufacturing” face at present?

1. Key technologies have not yet been completely broken through, especially upstream core technologies, some of which are still monopolized by foreign companies. It is necessary to further strengthen technological research and resource support.

2. From a global perspective, the absolute number of users in the ICT industry is still difficult to compete with foreign giants. It is necessary to strengthen product research and development and marketing promotion to win international recognition from users and the market.

3. The structure of the information and innovation industry is relatively fragmented. There are not many domestic leading companies with real strong strength, and the industrial chain is relatively scattered. Faced with international giants, it is unable to exert the advantages of combined forces.

4. The number of talents in the information and innovation industry is still insufficient, and the talent echelon structure is unreasonable, which affects long-term development.

Well, the above is the content about Xinchuang. Thank you for your patience! Later Continuation , we will launch special topics to analyze the current status of Xinchuang in various sub-sectors in detail. Welcome to pay attention!

references:

1. “What is Xinchuang?”, Zhihu

2. “2020 Xinchuang Development Research Report”, iResearch Institute

3. "White Paper on the Development of China's ICT Industry (2021)", China Electronics Society & Zhongcheng Think Tank