Guomao Overcoming Resistance to Digital Transformation in China Shaojie Han Yuli Yao Jiaojiao Liu
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In 2014, China’s largest conglomerate, Guomao Group, embarked on a significant transformation to meet the increasingly stringent environmental standards and customer expectations. Adopting a digital transformation strategy, Guomao created a digital operating model to enable the speed, scale, and agility to accelerate growth. The company was initially reluctant to embrace digital transformation due to resistance from its existing business and risk-averse culture. However, Guomao overcame the resistance through a comprehensive transformation approach. They
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Shaojie Han is the Managing Director of Guomao, a Chinese IT company. It has been making the news recently as the company has been successfully overcoming the resistance to digital transformation in China. According to the statistics, the number of users in China is around 3.5 billion. Among them, less than 20% of the population uses the internet. Most of them use offline channels or traditional modes of communication. As the internet penetration rates continue to increase, the number of users who use the internet daily and those who access it
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Slide 2: The digital revolution is upon us and businesses are increasingly challenged to adapt and evolve with these changes. As a result, digital transformation has become the most effective strategy for competitive growth for companies, especially in today’s complex and unpredictable business environment. However, companies are struggling with resistance to digital transformation in China, owing to the lack of knowledge, skills, and capacity to embrace digital technology. As a leading digital consulting firm, Guomao has realized that the traditional consulting approaches do not offer the necessary support
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China’s marketing landscape has been shaped by its economic growth and expansion, in recent years it has also witnessed an exponential rise in the demand for digital services. Apart from the obvious benefits such as efficiency, cost-effectiveness, and speed in conducting business operations, China’s large population and unique cultural practices offer significant opportunities to expand digital services further. check here One of China’s largest corporations, Guomao, is currently facing resistance to digital transformation in the country due to a range of challenges that include lack of a strong foundation in technology, a
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Guomao is a manufacturer in the consumer electronics industry. It was started by a family group in 1989, as a small electronics repair shop. It has grown rapidly, and by 2015, it had 70,000 employees, and its turnover was CNY 30 billion. However, by 2019, the group had faced various challenges, including aging equipment, high overhead costs, a low marketing strategy, and technological obsolescence. The Group identified the
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In December 2017, I visited Guomao in Zhejiang, China to conduct research on the implementation of digital transformation in business. Guomao is a small city with over 100,000 residents, and it is widely known as China’s “Small City of Digital” (i.e. Smart City). Guomao was founded in 2006 and it has been gradually moving towards becoming a smart city. The development of digital technology has been accelerated in Guomao, including the internet, mobile payment,
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I’ve spent the last four years in Guomao, which is a small industrial city about two hours north of Shanghai. It is a town of roughly 1 million people and serves as a production hub for several companies. The people I’ve met there are some of the most hardworking, innovative, and motivated individuals I have ever met. Despite being a part of the middle class, their resistance to digital transformation is striking. hop over to these guys The largest employer in the area is the Guomao Group, a conglomerate with operations in various industries