He Dongdong: Sany Group's emerging business revenue has accounted for more than 10%

Q: Since the domestic construction machinery market has fallen off a cliff, many enterprises have begun to transform into new businesses, what has Sany done in this regard? How is it going?

He Dongdong: New industries are one of the directions of our transformation and upgrading, such as clean energy, offshore equipment and housing industrialization, which are in line with the development trend of the whole society and the trend of new technologies, and are also areas that Sany is actively investing in.

Many of our new businesses are incubated in the group, and we will not risk the money of shareholders of listed companies, which is also a responsible attitude towards investors; When the new business is cultivated and matured in the group, there is a stable profit, we will inject the new business into the listed company, and the risk in the process of new business cultivation will be borne by the group.

Q: How long is the incubation period for new business? What is the current proportion of Sany's revenue?

He Dongdong: When an enterprise enters any new industry, there must be a cultivation stage, to solidify the customer base, so that customers can accept your brand, and there is a growth curve; Even in the field of construction machinery, it takes about five years for a new product line to grow and form a major player in the market.

From the perspective of the entire group, new business revenue will account for about 10%-15% of the total revenue, of course, this is only an estimate; The proportion of new business in listed companies will be smaller, and the group will not put new businesses that are still incubating into listed companies.

Q: Sany mentioned the establishment of the industrial Internet in its strategic plan, please talk about this situation?

He Dongdong: When it comes to the industrial Internet, it is impossible to avoid the consumer Internet, and the obvious feature of the consumer Internet is that with the increase in the number of terminal devices and the variety of access equipment terminals, it will bring about changes in business models. *The climax of the 5656 wave of the Internet is that with the increasing number of PCs connected to the Internet, it brings more business opportunities; Now this wave of consumer Internet starts from the Internet of smartphones, the new Internet model of personal consumption is developing very fast, and transaction opportunities are also changing greatly.

From the perspective of the model of the industrial Internet, with the increasing networking of industrial equipment and machines, it will bring great changes in the business model. The current industrial Internet must first do the big Internet of Things, because without the Internet of Things, they cannot be connected with the Internet, so the current *5656 things are that the equipment of the Internet of Things will increase a lot.

Some institutions predict that there will be 25 billion devices connected to the Internet in 2020, which means that at least billions of devices will be connected in China, but there are still very few devices that can be connected in China, which makes everyone feel that they cannot see the obvious benefits of the Internet of Things.

However, this is not because there is a problem with the tools or models of the Industrial Internet of Things, but because there are not enough networked devices, just like in the eighties and nineties, the Internet already existed, but there were too few connected PCs, and the foundation for interaction and new business models was weak.

Q: What is Sany's practice in industrial IoT?

He Dongdong: We have really felt the benefits brought by the industrial Internet, and we firmly believe that the industrial Internet will bring great efficiency improvements and new business models to the manufacturing industry. Therefore, Sany not only does its own industrial Internet, but also externalizes the ability to operate the industrial Internet and develops industrial Internet services for other enterprises.

The combination of industrial Internet and big data can help enterprises reduce the cost of customer life cycle, achieve early diagnosis, improve product reliability, and speed up the response speed of after-sales service, which improves the operation and service capabilities of enterprises in the aftermarket, which is a very intuitive benefit, but the benefits of the industrial Internet are not limited to this.

Aftermarket service is an explicit application of the industrial Internet, if it can monitor and collect the operation data of a machine in real time, when the machine fails, it can be quickly known; In addition, when there are enough interconnected machines, the correlation can be found through the analysis of big data, and when the parameters change to what extent, it means that there may be a certain failure, which is the value of prediction, helping enterprises to do a good job of maintenance in advance.

Another great value is that this data simulates real operating conditions, which is very helpful for designing a better product, so the industrial Internet is suitable for both after-sales service scenarios and manufacturing. For example, in the production workshop, a processing machine tool will affect the entire production line, at this time, the lathe can be monitored through the network to minimize problems and not affect production efficiency; In addition, it can also monitor the entire operation and energy consumption of the production workshop, and reduce energy consumption through computer optimization, which is a very direct effect.

Q: What changes will the industrial Internet bring to the business model of construction machinery?

He Dongdong: For example, the premise of time-sharing leasing of construction machinery is to be able to calculate the workload, and the customer must easily find where the equipment he needs is, and for the equipment provider, it is also necessary to ensure the safety of the equipment, do not let the equipment be stolen because of the rental; Similar to the sharing economy model of time-sharing rental, the infrastructure of the industrial Internet is needed in the manufacturing industry.

In addition, such as industrial chain finance, we are now promoting an insurance variety based on the use of machines, the original purchase of insurance, is required to be paid annually, but in fact there is no risk when the equipment is not used, why should the policyholder pay for one year's insurance cost, this situation is unreasonable; For the customer, he should pay as much insurance premium as he spends as much time, which will greatly reduce his insurance cost.

On the other hand, from the perspective of insurance companies, the insurance company's premiums are priced according to the risk, if you don't know the health status of the equipment, the risk will increase, after the equipment is networked, you can know exactly when the equipment is broken, and then greatly reduce the possibility of failure through health diagnosis, so that the insurance company's pricing will be more accurate, and the probability of claims by the insurance company will also be reduced.

Another point is that a large amount of expenses of insurance companies are in the cost of claims, once the insured equipment is repaired and compensated in addition to the failure, in the past, the repair shop owner would inflate the maintenance price and cheat the premium, which is difficult for insurance companies to know. However, after the equipment is networked, insurance companies can accurately know which parts are broken, what parts to replace, and what the cost of replacement is, thereby reducing costs.

This creates a win-win situation, and the basis of this model innovation is also based on the industrial Internet, otherwise this innovation model is possible but cannot be done.

Q: What are Sany's thoughts on intelligent manufacturing?

He Dongdong: When we talk about Industry 4.0 or intelligent manufacturing, it is a "dry" word, two horizontal and one vertical.

The small horizontal line is to open up the industrial chain of R&D, manufacturing, procurement, service, etc. within the enterprise to achieve seamless data docking, which is what we usually talk about internal informatization. A vertical line refers to the vertical opening, starting from customer needs, a customer order can be disassembled into specific processes and equipment processing instructions, including procurement, as much as possible to achieve automation, flexibility, this is vertical integration. Another big horizontal line is actually across the boundaries of the enterprise, how to integrate customer needs to the manufacturing and procurement links of the enterprise, to the downstream supply chain, and the resources of the whole society.

This big horizontal line is *reverie. The consumer goods industry has given us a lot of models, of course, there are great challenges in the field of industrial products, and the standardization of products is not so high; In addition, there will be more offline technical communication required, and there is no very mature or successful model like retail products.

If these are done well, intelligent manufacturing can imagine a scenario, and the big vertical can basically realize C2M, that is, the customer's personalized customization, so that the customer can drive his personalized needs, and can quickly make the entire manufacturing ecosystem respond to his needs.

If a horizontal line is done well, it can make the production of the enterprise more automated and intelligent, and the management of the enterprise itself more flexible; In addition, the data and information in the enterprise system can be optimized by making full use of computers, so that the entire decision-making business becomes smarter.

In general, the new model brought by intelligent manufacturing can realize the increasingly personalized needs of customers, and can be quickly responded to by manufacturers and met with high quality.