Digital Transformation in Manufacturing: Reshaping Management Systems for the Future

As we approach the next Five-Year Plan period, digital transformation is no longer a matter of choice but a necessity for enterprises worldwide. It represents not just the adoption of new technologies, but a fundamental shift in management philosophy and operational mindset. Through in-depth study of national digitalization policies and on-site visits to leading manufacturing sites, we have gained valuable insights into the pathway and essence of corporate digital transformation. This article outlines the core concepts and practical approaches to digital transformation, with a focus on management system reform.

Theoretical Framework and Strategic Context

At its core, digital transformation is a systemic project driven by data, reshaping the enterprise value chain, and fostering new, quality productive forces. The shift from scale expansion to quality growth, and from factor-driven to innovation-driven development, requires a new digital mindset. This includes:

Data Thinking: Using data as the basis for decision-making.

User Thinking: Placing the customer at the center of all processes.

Scenario Thinking:  Aligning supply with demand in specific contexts.

Collaborative Thinking: Enhancing human-machine cooperation.

Ecological Thinking: Building open, symbiotic industrial ecosystems.

This mindset is essential for leaders and managers to drive meaningful and sustainable transformation.

Data-Driven Management: The Core of Modern Operations

Data has evolved from a supporting tool to a central driver of production. In one advanced automotive plant, each vehicle is equipped with an RFID chip, allowing the factory to identify custom requirements from thousands of parts accurately. This “digital ID” system enables mixed-line production and effectively addresses the industry challenge of “batch-of-one” manufacturing. This approach demonstrates how data, when properly analysed and applied, creates tangible economic value and enhances management precision.

User and Collaborative Thinking: Reinventing the Value Chain

Understanding customer needs and enabling seamless collaboration across functions are vital. A leading industrial automation plant employs digital twin technology to simulate production processes, ensuring products meet exact customer specifications. With AI-powered quality inspection achieving 99.999% accuracy and voice-controlled flexible workstations, the plant exemplifies human-machine collaboration—where human insight and machine efficiency merge to solve complex production challenges.

Ecosystem and Innovation Thinking: Building a Sustainable Future

Breaking away from isolated development models is crucial. One robotics specialist, for example, not only develops internationally competitive smart welding robots but also actively participates in building industry platforms. By providing tailored solutions across different industrial chains, it helps traditional manufacturers transition from “machine replacement” to “human-machine integration.” This reflects the power of cross-industry collaboration and open innovation.

Continuous Improvement Through Lean and Digital Integration

A clear example of transformation comes from an electrical equipment manufacturer that adopted a “lean first, digital second” approach. After optimizing workshop layout and material flow through lean consulting, the company saved 1,500 square meters of space. It then implemented digital systems to automate production scheduling and enhance project visibility. This dual-driven model of “lean + digital” offers a replicable path for traditional manufacturers seeking sustainable improvement.

Key Takeaways for Management System Reform

Mindset Shift Comes First: Success in digital transformation begins with a change in thinking—from top leadership to frontline staff.

Technology and Talent Go Hand in Hand: Empowering employees through innovation platforms ensures that technology investments deliver real value.

Step-by-Step Implementation: A phased approach—optimising processes before digitising them—ensures stable and effective transformation.

Embrace Ecosystem Collaboration: Long-term growth depends on integrating into broader industrial ecosystems, leveraging partnerships, and sharing knowledge.

Looking Ahead

As digital infrastructure advances and skills become more widespread, the pace of digital transformation will accelerate. Enterprises must seize this opportunity to strengthen innovation, master core technologies, and integrate scientific and industrial advances. By embedding digital thinking into the organisational culture, manufacturers can not only enhance efficiency and innovate business models but also thrive in the new global digital economy.