1% Innovations = Trillions Worth of Future of China’s Digitalization | Digital 36 [2021 Innovative Digital Suppliers] Survey
12/10/2021
BY 36Kr
8507
Which word could most appropriately define China’s new economy in 2021?

According to the high-frequency words list compiled by the 36Kr platform, it must be Digitalization. 

This year, we have reported on the digital innovations in almost each industry in China, and witnessed the digitalization of the Pillars of a Great Power, e.g., SBW (Shenyang Blower Works Group Corporation) — “Heart of China’s Industry” Migrates to “Cloud”: 10-Year Digitalization in Marketing of Pillars of Great Power; the digitalization of the apparel & footwear industry, e.g., from competing with manpower to competing with technology, SAINT ANGELO has relied on digitalization to venture into such all-new category as custom-tailored suits; as well as the digitalization of the FMCG (fast-moving consumer goods) industry: Creating a New Mengniu” with digitalization is just the tip of the iceberg during the rapid digitalization of the retail industry...

This year, we have reported on the digital solutions of approx. 2,200 players in all industries, from sales to marketing, from recruitment to enterprise management, and from industry IoT to SaaS in the beauty industry… Almost every day, we are able to see new digital systems, digital platforms and digital solutions, applied to various industries…

The digital innovation in China is in full swing, behind which, we need not only pioneers of reform who are bold and resolute to overcome all difficulties and take drastic actions, but also countless cultivators who mine every tiny data, explore every technical difficulty and build every sub-scenario to escort the digital transformation.

We can say that it is their 1% innovations that have accomplished the trillions worth of digitalized industries in China.

China Internet Development Report (2021) shows that China’s digital industrialization has scaled up to CNY 7.5 trillion; the industry digitalization process continues to speed up, reaching a scale of up to CNY 31.7 trillion; and the digitalization level of each industry is constantly improving.

In the future, the size of the digital industry will further increase, with more innovative industry models expected to emerge. And all these require innovators in China’s digital field, especially the “Industry Think Tank”.

In the last six months, we have carried out the Digital 36 [2021 Innovative Digital Suppliers] survey, which, through interview, case collection and data collation, has deeply investigated more than 200 digital suppliers, to explore the behind-the-spotlight stories, and probe into the behind-the-spotlight empowerment with expertise brought by the “Industry Think Tank”.

We have discovered that they are the digital supplier founders who fearlessly chase the powerful current of the times only to truly address the issues concerning the digital transformation of the industry; the digital engineers who are still willing to devote themselves to this industry, despite that they are keenly aware that the road to the digital transformation is bumpy and it is boring to mine the deep sea of data; they are also the digital believers who hide in the general public, and the digital practitioners who hope to change the status quo of the industry through technology.

We see in them excellent capability for digital product innovation, outstanding capability for digital solution provision, and strong capability for digital technology R&D and application. It is anticipated that in the future, the growth potential of their digital services will be unlimited.

We believe that every effort on and devotion to digital transformation should be recognized, and every dedication to the digital future recorded.

The past half year has seen enthusiastic support and active participation from more than 200 digital suppliers. In more than half a month, a team of nearly 30 analysts who have been dedicated to the digital field and the 2B industry for many years, conducted in-depth analysis and research of all participants one after the other from four dimensions, namely capability for digital product innovation, capability for digital solution provision, potential for digital service growth, and capability for digital technology R&D and application, covering product design, solution promotion, technology R&D, talent input and other aspects, combined with cross analysis and communication, to finally release the 1% innovations in 2021 digital services.

This time, from the survey materials submitted, we have carefully selected 10 digital suppliers that have been deeply cultivating the digital field for many years, and contributing to the digital transformation of multiple industries to help them “set sail” .

We would like to explore the stories behind “0” and “1” with you.

*The following enterprises are listed in no particular order



Digital 36 [2021 Innovative Digital Suppliers]

PATEO CONNECT+

In the 12 years since its establishment in 2009, PATEO CONNECT+ has been providing R&D, manufacturing and subsequent supporting services of intelligent telematics service system for a client base that covers nearly 30 joint venture & self-owned auto brands and nearly 100 vehicle models, with 200-plus vehicle variants iterated, and business extended to more than 30 countries and regions. It has been continuously investing more than 30% of its operating revenue in R&D with a cumulative investment of more than CNY 1 billion, and devoting itself to the development of new technologies in recent years. Up to now, it has applied for a cumulative total of over 5,300 intellectual property rights (IPRs), 82% of which are invention patents.

In addition to its five core technology platforms in operating system (OS), intelligent voice, hardware, high-definition (HD) map and cloud, PATEO provides the user with software application development and operation in the smart cockpit, intelligent driving and vehicle domains on the basis of SOA (Service-Oriented Architecture) and SDV (Software-Defined Vehicle). At the same time, it has established cooperative relationships with mainstream auto groups through investment and mutual equity participation. As of 2021, its strategic investors include DMC (Dongfeng Motor Corporation) and China FAW (China FAW Group Corporation) in the OEM sector, FAWSN (Changchun FAWSN Group Co., Ltd.) in the auto parts sector, Xiaomi Corporation and Haier Capital in the IoT ecosystem, China EV100 in the industry association & authority, as well as Jianyuan Capital (Shanghai Jianyuan Equity Investment Fund Management Co., Ltd.) launched & set up by STEC (Shanghai Tunnel Engineering Co., Ltd.) in the road network / roads & bridges for autonomous vehicles; other important investors include CCB Trust (CCB Trust Co., Ltd.).
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