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November 6, 2016

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Home » Business » Economy

How digitalization reshapes sustainable models

By Klaus Engel | November 6, 2016, Sunday | Print Edition

CHAIRMAN of the Executive Board, Evonik Industries AG

 

Chinese premier Li Keqiang first proposed the “Internet Plus” action plan at the third plenary session of the 12th National People’s Congress in March of 2015. Just a few weeks later, in July, the State Council unveiled the Internet Plus action plan, which calls for a national strategy for upgrading industry. The strategy bundles issues such as Big Data, e-commerce, cloud computing, and the Internet of Things into one action plan intended to foster economic growth. In sync with the pace of the fourth industrial revolution around the globe, applying internet infrastructure and new digital technologies to conventional industries — the essence of Internet Plus — introduces an advanced approach to digitalization that fosters new industries, business models, and even an economic development method tailored to China’s strengths.

Digitalization is profoundly and rapidly changing almost all areas of the economy, society, and daily life. Internet, mobile communication, and digital applications have become part of our normal routines. As more and more products and machines are becoming increasingly connected, the Internet of Things is also becoming a reality, and new developments are arising faster and faster.

With digitalization, Evonik sees an opportunity for increasing competitiveness for all industries, as well as for modern megacities like Shanghai. Digital technologies will change value creation, as digitalization is seen as the single most important driver of innovation. New data-based business models are emerging, as are new products with digital service components — and these are merely the primary implications. Last but not least, more and more attention is also being paid to digital customer experience and interaction, as digital technologies come to play an increasingly important role in customers’ lives.

Digitalization integrates the possibilities of the internet with traditional industries and presents an opportunity for designing business and production processes more intelligently and efficiently. As a result, the worlds of IT and business are increasingly merging, to the point where the actual challenge is to make selective use of the wealth of available data.

Nevertheless, offering customized products makes the relationship between supplier and consumer sustainable and long-lasting. At the same time, digitalization offers opportunities for improving various aspects of the concept of the circular economy, thus serving the environmental, economic, and social pillars of sustainability.

Economy


 

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