Traveling through time and space.

Chapter 218: Implementation of Digital Transformation Strategy for Family Businesses

Mu Yang, through a series of activities promoting Taoist culture and fostering ecological awareness, saw a growing interest in ecological protection, a source of joy. However, he remained committed, knowing that in this rapidly evolving era, family businesses must adapt to the times and undergo digital transformation to maintain their prosperity. With a sense of mission and urgency in implementing his family business's digital transformation strategy, Mu Yang threw himself wholeheartedly into this transformation.

Mu Yang arrived at the family business's digital transformation office, where a tense and bustling atmosphere permeated the air. In the spacious, bright room, brand-new desks and chairs were neatly arranged. A large digital transformation plan and schedule hung on the wall, its brightly colored charts and detailed annotations providing easy access. A variety of data charts and analytical reports covered the conference table, as if to illustrate the complexity and importance of this transformation. Members of the digital transformation team gathered around the table, enthusiastically discussing the transformation plan. Some stared at their computer screens, rapidly typing away, analyzing data. The constantly flashing figures on the screen seemed like the code they were directing the transformation. Others wrote and drew on the whiteboard, elaborating their ideas. Their markers left clear marks, each stroke representing a vision for the future.

"Hello everyone, today we are here to further improve our digital transformation plan. This is a critical step for the future development of the family business, and we must go all out. Every decision and every detail may affect the success or failure of the transformation, so everyone must speak freely." Mu Yang said to the team members with a smile, his eyes revealing determination and expectation, that look seemed to be able to penetrate numerous difficulties and give the team endless motivation.

Manager Zhao, the head of the digital transformation team, stood up excitedly and pointed to the plan map and said, "Mr. Mu, we have preliminarily formulated an overall transformation plan. The goal is to digitize business processes, build a digital marketing system, and establish a data-driven decision-making mechanism within the next two years. In terms of phase division, we divide it into three phases. The first phase is the infrastructure construction phase, which mainly involves cooperating with information technology suppliers to purchase appropriate software systems and hardware equipment to build a digital infrastructure. This phase is expected to require an investment of [X] million yuan, mainly for the purchase of advanced servers, storage devices and various professional software, such as enterprise resource planning (ERP) systems, customer relationship management (CRM) systems, etc. The second phase is the application promotion phase, which will promote the practical application of digital technology in various business departments. We will formulate personalized plans based on the business characteristics of different departments. Application solutions ensure the true implementation of digital technologies and improve work efficiency. The third phase is optimization and improvement, which involves continuous optimization of digital processes and in-depth data mining and application. Big data analysis provides strong support for the company's strategic decision-making. However, the high cost of digital transformation is a major issue. Preliminary estimates suggest that technology procurement and personnel training alone will require an investment of [X] million yuan, which will have a certain impact on the company's short-term profits. Furthermore, when communicating with information technology suppliers, there are some disputes over product quality, after-sales service, and price. For example, we hope to purchase big data analysis software that can meet our complex business needs and provide long-term and stable after-sales service, but the supplier is unwilling to compromise on price. They believe that their software has unique technical advantages and the price is already reasonable in the market, resulting in a stalemate between the two parties.

Mu Yang pondered for a moment and said, "Manager Zhao, you're doing a solid job. Regarding investment, we need to take a long-term view. Although digital transformation may be costly in the short term, it can enhance a company's core competitiveness and lay a solid foundation for future development. When negotiating with suppliers, we must adhere to principles, ensuring both product quality and after-sales service while striving for reasonable prices. We can contact several suppliers, conduct comparisons and negotiations, and leverage market competition to reduce costs. At the same time, we should establish a cost monitoring mechanism to strictly control every expense. We can set up a dedicated cost monitoring team to conduct a detailed review of every procurement and training expense to ensure that funds are spent effectively."

Leaving the Digital Transformation Office, Mu Yang headed to the information technology supplier. Located in a bustling commercial center, the company's modern office building towered into the sky, its glass curtain walls gleaming in the sunlight. The company's showroom showcased a variety of advanced software systems and hardware devices, with flashing lights and dynamic demonstrations captivating the audience. A giant screen played demonstration videos of software functions, with various data charts and operational interfaces constantly switching, showcasing the charm of technology.

"Mr. Zhang, it's a pleasure to see you again. Our family business attaches great importance to digital transformation and hopes to achieve good cooperation with your company. We are well aware of your company's technical strength in the industry, and we look forward to leveraging your strength to achieve the digital transformation of our family business." Mu Yang said to Mr. Zhang of the information technology supplier with a smile, his tone full of sincerity.

Mr. Zhang responded enthusiastically, "Mr. Mu, we also look forward to working with your family-owned business. Our company boasts advanced technology and extensive experience, and we can certainly provide strong support for your digital transformation. However, we still need to discuss the details of our collaboration. For example, the intelligent manufacturing system we provide is very powerful, but relatively expensive. This system integrates advanced technologies such as artificial intelligence and the Internet of Things, enabling fully automated monitoring and optimization of the production process. However, the R&D costs are also high, making it difficult to lower the price. We are also concerned that during implementation, competition among different business departments over the allocation of digital resources will hinder project progress. For example, both the sales and production departments want priority access to technical support and resources, which could impact project progress."

After some thought, Mu Yang said, "Mr. Zhang, regarding the price issue, we hope your company can consider our long-term cooperation intention and give us some discounts. We can sign a long-term cooperation agreement. Not only will we purchase the systems we need now, but we will also continue to cooperate with your company in the future according to the needs of corporate development. Can we relax the price a little? In terms of resource allocation, we will establish a fair and reasonable allocation mechanism, and allocate resources according to the actual needs of each business department and the importance of the project. At the same time, we will strengthen internal communication and coordination to ensure close cooperation between departments and jointly promote digital transformation projects. We can hold regular cross-departmental coordination meetings to allow each department to fully express their needs and difficulties and jointly discuss solutions."

To promote the practical application of digital technology across various business departments, Mu Yang visited the sales office. Employees were bustling about, phones ringing non-stop as salespeople engaged in business discussions with clients. Neatly arranged desks and chairs filled filing cabinets, and sales performance rankings and customer follow-up charts were posted on the walls.

"Manager Li, how is the current progress of our sales department in digital transformation?" Mu Yang asked Manager Li of the sales department, scanning the office and observing the employees' work status.

Manager Li said somewhat helplessly, "Mr. Mu, we've started using a customer relationship management system (CRM), but we've encountered some issues. Some employees aren't familiar with the system yet, and it's difficult to operate, resulting in low work efficiency. Some employees, accustomed to traditional customer follow-up methods, are resistant to the new system's functions and operational procedures. Furthermore, while everyone was initially unfamiliar and apprehensive about digital transformation, and has gradually accepted it, the learning curve is still slow. Furthermore, different business departments are competing for the allocation of digital resources, and our sales department hopes to allocate more technical support personnel to resolve system issues. We currently receive a large number of customer inquiries and follow-up work every day, and any problems with the CRM system will affect customer service quality and sales progress."

Mu Yang responded, "Manager Li, we will arrange for professional trainers to conduct specialized training on the CRM system for sales department employees as soon as possible to improve their operational proficiency. This training can be conducted through a combination of online and offline methods. Online, we will provide operation video tutorials so that employees can learn at any time; offline, we will organize centralized training to provide on-site Q&A and practical guidance. In terms of resource allocation, we will comprehensively consider the needs of each department and try our best to meet the sales department's demand for technical support personnel. At the same time, we will encourage employees to actively share their experience, learn from each other, and improve together. We can establish an internal reward mechanism to reward employees who perform well in using the CRM system and can help other colleagues solve problems, thereby stimulating everyone's enthusiasm."

Mu Yang then went to the production office. Here, machines roared, and workers busily operated equipment on the production line. The workshop was filled with the smell of engine oil. Huge machines churned in an orderly fashion, and products moved swiftly on the conveyor belts. Manager Wang, the head of the production department, was reviewing production data reports, which were densely packed with various production indicators and data.

"Manager Wang, what achievements and difficulties has the production department encountered in digital transformation?" Mu Yang asked, his voice rising a few degrees in the noisy workshop.

Manager Wang excitedly said, "Mr. Mu, after introducing the intelligent manufacturing system, our production processes have been optimized and costs have been significantly reduced. By monitoring production data in real time, we can promptly identify problems and adjust production parameters, reducing the defective rate by [X]%. Previously, we relied on manual experience to determine whether the production process was normal, which was prone to errors. Now, with the intelligent system, we can accurately monitor every production link. However, some problems have arisen in our collaboration with the information technology supplier. The supplier's system occasionally malfunctions, affecting production progress. Last time, the system suddenly crashed, causing the production line to stop for [X] hours, resulting in considerable losses. Furthermore, there are differences and conflicts between the traditional management culture of the family business and the culture of digital innovation in terms of thinking and work processes. For example, traditional production management focuses more on experience, while digital production requires more precise data-driven decision-making, which makes it difficult for some veteran employees to adapt. They are accustomed to relying on years of experience to adjust equipment and schedule production, and they don't understand the new digital operating methods and find it difficult to learn."

Mu Yang said, "Manager Wang, for system failures, we must communicate promptly with suppliers, requiring them to resolve them as quickly as possible and provide backup plans to ensure uninterrupted production. We can sign a service-level agreement (SLA) with suppliers to clearly define the response and resolution timeframe for system failures, as well as compensation measures in the event of failures. Regarding cultural integration, we must strengthen employee training and guidance to help everyone gradually understand and embrace the culture of digital innovation. We can organize exchanges and sharing sessions between experienced employees and young digital talent to learn from each other's strengths and overcome their weaknesses. At the same time, we can provide specialized digital training courses for veteran employees, using a simpler and more accessible approach to help them master new working methods."

In the process of advancing digital transformation, the varying impacts of corporate culture among different IT vendors on the progress of collaborative projects have gradually become apparent. One vendor prioritizes technological innovation, resulting in rapid product updates, but relatively weak after-sales service. Another prioritizes customer service, offering a fast response time, but somewhat limited technological innovation. The R&D team of the innovation-focused vendor continuously releases new features and upgrades, but when system issues arise, the after-sales staff's response speed and problem-solving capabilities are limited. The customer-focused vendor, while responsive to customer needs, is slower to update its technology to meet the ever-changing digital needs of businesses.

In response to this situation, Mu Yang discussed with his team members and decided, "For suppliers who focus on technological innovation, we should strengthen cooperation and fully utilize their new technologies, but at the same time require them to improve their after-sales service systems. We can sign supplementary agreements with them to clarify the standards and processes for after-sales service and require them to increase the number of after-sales personnel and improve service quality. For suppliers who focus on customer service, we should affirm their service advantages while encouraging them to increase their investment in technological research and development. We can discuss with them the future direction of the company's digital development, put forward our needs and expectations, and encourage them to accelerate the pace of technological innovation. We must develop personalized cooperation strategies based on the characteristics of different suppliers to ensure the smooth progress of digital transformation projects."

Over time, the family business's digital transformation has yielded significant results. The sales department, using a CRM system to accurately track customer needs, has seen a [X]% increase in customer satisfaction and a significant improvement in sales performance. The production department's intelligent manufacturing system has been continuously optimized, further reducing production costs and increasing productivity by [X]%. Employees have gradually adapted to digital work styles, significantly improving their work efficiency and teamwork.

"Seeing that the company is gradually regaining vitality in the process of digital transformation, I am full of confidence in the future of the family business. We must continue to work hard and constantly improve the digital transformation strategy to enable the family business to achieve sustainable development in the digital age. In the future, we must further explore the application of digital technology in corporate management, market expansion and other aspects, and continuously enhance the competitiveness of the company." Mu Yang said with emotion at the family business digital transformation results report meeting. His words were like a warm current, flowing in the hearts of every employee, inspiring everyone to work hard for the bright future of the family business.

In the days to come, Mu Yang will continue to lead the family business and continue to explore and move forward on the road of digital transformation, allowing traditional business culture and digital technology culture to be deeply integrated, opening a new chapter for the development of the family business.