Bra Asks Liang Ding'an: The Second Spring of Manufacturing Industry Awakened by the Industrial Internet
Tags: webdev, startup, enterpreneurship, interview
Published: 2024-04-10 14:56:12

**Guest: Liang Ding'an**
General Manager of Intelligent Manufacturing at Tencent Cloud. He is primarily responsible for the development of solutions and products related to enterprise digital transformation, intelligent manufacturing, and the industrial internet. He has previously served as the Technical Director and Product Director of the Tencent PCG, a technical operations expert at Tencent, and a core technical operations standard expert at the CAICT (China Academy of Information and Communications Technology). 

**Hosted by Sam Ng (aka: Bra)**
Founder of [ServBay](servbay.com), Secken and DNSPod, former General Manager of the SME Product Center at Tencent Cloud, cybersecurity expert, domain and DNS technology expert, webmaster, China Europe International Business School (CEIBS) EMBA.

---


![Image description](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/gc7w2c3huifwitxwgfl1.jpg)

**Bra:**
From what I understand, you were previously in charge of DevOps team for Tencent's social platforms, with 10 years of experience in operations development, massive DevOps, and architectural planning. You were primarily responsible for the operations development and operations planning of social platform services like Qzone, Photo Albums, and Music, specializing in the architectural design and automated DevOps of mass services. Previously, your focus was more on ToC, which is comparatively lighter compared to your current focus on intelligent manufacturing. How do you think your past experiences have helped you in your current role?

**Liang Ding'an:**
The two business areas are worlds apart. Traditional internet companies rely on IT technological innovations to lead their entire business models forward, especially in the consumer internet sector, which is easier to understand. For instance, consumer internet companies rarely have sales departments; they focus on developing good products that speak for themselves. In contrast, traditional industries, whether ToB or ToC, have sales channels and their own operational models.


Transitioning from internet technology to the industrial sector, we find ourselves relatively distant from the industry applications our customers need. Especially in manufacturing, where profits are generated through products reliant on production tools. Unlike the internet industry, which relies on servers and programs, manufacturing may require machinery like lathes and die-casting machines, involving some software but more often specialized industrial production control systems. For Tencent and myself, understanding customer application scenarios, providing appropriate solutions based on those scenarios, and serving industrial customers throughout the entire lifecycle — from research, production, supply, sale, to service—pose significant challenges.


In terms of business selection, we've moved from areas we excel in to those we are less familiar with. Initially, we worked with general internet customers, such as gaming, short videos, and live streaming, areas Tencent is involved in. Providing solutions for these sectors allowed for easy communication. Our next focus included government and financial customers. For example, our government customers ultimately serve citizens. Leveraging Tencent's natural connectivity advantage, like our work on Digital Guangdong and integrating Tencent WeChat's massive user connectivity with government services, offers citizens more effective and convenient services compared to traditional methods. Relying on technological innovation to reduce costs and increase efficiency, the financial industry experiences the same benefits. Previously, applying for a loan at a bank required submitting numerous documents in person, but now it can be entirely resolved online. The financial industry directly benefits from the empowerment brought by cloud technology and science.


The manufacturing industry, as part of traditional sectors and encompassing various sub-industries, commands our respect. We do not expect to overcome their technological barriers overnight or fully grasp the core of their business within a year or two. Therefore, we have a clear positioning, seeking breakthroughs in these sub-industries, such as information systems, to truly delve into and empower the industry.

**Bra:**
With the national push for enterprise digital transformation, what kind of enterprises do you think need to undergo digitalization, or is it necessary for enterprises to do so? How does Tencent empower enterprises in their digital transformation journey?

**Liang Ding'an:**
In the past two years, the nation has advocated for enterprise digital transformation, but why is digital transformation necessary? In my view, there's an underlying logic. Digital transformation aims to interconnect data from various industries' production and operation processes with upstream and downstream of the industry, ultimately discovering new business models, reducing costs, increasing efficiency, and enhancing the competitiveness of enterprises in their vertical domains.


In the process of enterprise digitalization, despite the diverse attributes of our customers' industries, there are commonalities. At the most basic level, it's whetherm the customer's existing systems can be integrated into the cloud, which represents our fundamental collaboration point with enterprises.


Looking back, manufacturing enterprises are large, and even if their IT scale is limited, they can still be empowered by the cloud. However, for large enterprises with robust capital and mature infrastructure, they have the capability and funds to maintain their infrastructure. So why should they move to the cloud? When their pain point shifts from whether to use the cloud to how to enhance their business growth and competitiveness, our collaboration progresses to the next stage. Beyond basic cloud services, we provide C2B capabilities. C2B is a broad concept, extending to C2B2B and then to 2C. Through digital means, we break down data silos and achieve information integration across the industry chain, enabling enterprises to better understand their end-users' application scenarios, needs, and motivations. This understanding allows enterprises to better plan their products, channels, distribution systems, and services for the upstream and downstream of the industry, thereby genuinely enhancing product competitiveness.

**Bra:**
Two years ago, Pony Ma(Founder of Tencent) proposed that "Tencent will root itself in the consumer internet and embrace the industrial internet" as a development strategy. How do you understand this strategy? The industrial internet and the industrial internet are intertwined to some extent. As a representative of the consumer internet, what role does the industrial internet play in Tencent's comprehensive embrace of the industrial internet?

**Liang Ding'an:**
This is a visionary strategy. In fact, before Pony proposed the industrial internet, the term was not widely known in the industry. One of the earliest terms was "Internet+", proposed by Pony during the Two Sessions (两会) in 2015. The concept of the industrial internet stems from our years of deep cultivation in the internet industry, encompassing "cloud computing, big data, mobile internet, the Internet of Things, and artificial intelligence."


Traditional enterprises are relatively weak in mobile office technology and other areas. Many large enterprises with significant revenue still use traditional paper-based office methods. Internet companies are considered agile because of the efficiency of IT. As mentioned in Tencent's documents, the requirements Pony raised at night could be released the next afternoon. In contrast, the deep-seated reason behind traditional enterprises' meetings, approvals, and visas is the lack of IT infrastructure and facilities to support digital transformation.


By proposing the industrial internet, we are not only solving specific problems but also facing them head-on. Our tactical diligence is merely a cover for strategic laziness. We hope that entrepreneurs and decision-makers across the industry will step back and view the current state of Chinese manufacturing. We are fortunate to cooperate with enterprises under the banner of the industrial internet, leveraging Tencent's platform to serve enterprises with industrial internet capabilities.

**Bra:**
At last year's Tencent Global Digital Ecosystem Summit (2020), Tencent Cloud Intelligent Manufacturing unveiled its three major strategic layouts for the first time and launched the "511" ecological plan. In the future, it will focus on the 5 major links of industrial manufacturing research, production, supply, sales, and service, joining hands with 100 partners to create 1,000 industry solutions. How is the progress of Tencent Cloud Intelligent Manufacturing so far? What new actions will be taken in 2021?

**Liang Ding'an:**
Tencent is clear about its strengths, hence the "511" ecological plan, aiming to play the role of an assistant. In 2010, Pony said that we would entrust half of our lives to our partners, and we have been practicing this principle until today.


Enterprise digital transformation undoubtedly requires computing power. Storage networks collect data, process, and utilize it, and Tencent provides an engine from an IP perspective to identify and solve problems.
In 2021, we will steadfastly implement this strategy, closely related to Tencent's corporate culture. We welcome and look forward to integrating with ecosystem partners, and we are particularly willing to share our years of experience in the consumer internet, such as our technological advantages, understanding of data, and insights into AI algorithms.

**Bra:**
Since Tencent Cloud developed intelligent manufacturing, several public cases have focused on large enterprises like SANY Group. What is the focus of Tencent Cloud Intelligent Manufacturing's development in this field? How do you consider empowering small and medium-sized enterprises (SMEs) in their intelligent manufacturing transformation?

**Liang Ding'an:**
Yes, this is a core topic that the Chinese industrial internet requires Tencent to address. Compared to large enterprises with abundant capital that can seek various suppliers to solve their problems, many small enterprises cannot access the latest information or find suitable solutions. Looking at some developments abroad, cloud-based enterprise SaaS services are prevalent, but domestically, we are still at a very preliminary stage.


For example, we launched Tencent's industrial internet platform in Zhangjiagang, introducing ecological partners based on this platform. We visited local enterprises one by one to understand their operational and production issues. Then, we matched these problems with our suppliers and solution library to introduce the most suitable solutions. So far, we have conducted more than 30 visits and surveys. Different regions have different business models. Some areas have low automation levels, making it challenging to implement large-scale model changes. We recommend mobile office solutions, which are popular. However, solutions suitable for Foxconn may not be cost-effective for them. At this time, Tencent has many ecological partners, such as Weimob, Wecom Manager, and DaoYi, to provide these solutions.

**Bra:**
If two leading enterprises with strong competitive relationships in the industry simultaneously choose Tencent, will there be any concerns?

**Liang Ding'an:**
First and foremost, Tencent is not their competitor; we are a sufficiently neutral third party. We mainly help them improve their business efficiency and reduce costs by facilitating communication between industries.

**Bra:**
As intelligent manufacturing, which deeply integrates digitalization and industrialization, becomes a significant trend in the transformation and upgrading of the global manufacturing industry, major internet giants have entered the field of intelligent manufacturing. With giants leading the way, what kind of development will China's and the world's manufacturing industry face?

**Liang Ding'an:**
In the industrial internet arena, there are several core players. The first category includes traditional companies like Siemens that already operate in this field. They produce equipment and naturally develop software and IoT solutions based on their equipment. The second category comprises software service providers, such as Aerospace Cloud Network and Inspur. The third category includes internet companies like Tencent, Alibaba, and Huawei. These three types of players each bring their unique strengths to intelligent manufacturing.

**Bra:**
Regarding the competition in intelligent manufacturing, what is Tencent's competitive advantage? What role does Tencent's intelligent manufacturing business team play in combining Tencent and the industry?

**Liang Ding'an:**
Tencent's core strength lies in our C2B capabilities, which help us better understand and connect with users by providing intelligent solutions. Additionally, our understanding of big data and the application of AI capabilities are our advantages.


When Pony proposed the industrial internet, he also clarified Tencent's position in the industrial internet as an assistant for enterprise digital transformation. We provide "cloud, big data, IoT, mobile, and AI" technological tools and ecological capabilities to support enterprise digital transformation and upgrading. Tencent has strong technological capabilities, previously confined to laboratories or the consumer internet. Finding scenarios to apply these capabilities in the industrial field is the role our intelligent manufacturing team plays. Therefore, our team includes individuals who understand Tencent, internet technology, industry technology, and business logic, helping more enterprises overcome obstacles on their digital transformation journey.

**Bra:**
With the widespread application of AI in various industries, AI not only significantly improves work efficiency but also greatly reduces labor costs. Facing the hollowing out of factories due to young people's changing job expectations, what is your opinion? As intelligent manufacturing develops to a certain extent, the supply relationship will inevitably change. What suggestions do you have for this structural transformation?

**Liang Ding'an:**
With societal changes, topics like machine replacement of human labor frequently arise in discussions about intelligent manufacturing. However, our research in enterprises shows that this is not the case.


The reason behind machine replacement is not that people are unwilling to work in factories. Nowadays, people believe that working as food delivery drivers, internet celebrities, or couriers can be more lucrative and offer more flexible schedules. So, what we actually see in enterprises is a lot of idle equipment. When I asked the owner if it was due to a lack of orders, he said it was because they couldn't recruit workers. The pandemic has exacerbated this issue. Many enterprises are ready to resume work and production but lack the workforce, presenting a significant problem.


Intelligent manufacturing cannot take huge strides at once; it must progress gradually. Looking at overseas examples, fewer people will be involved in certain jobs, such as agriculture, which is fully automated and mechanized abroad. Human labor is increasingly valuable because humans are the most flexible production tools and sources of productivity. Therefore, we should utilize human labor where it is most needed.


I believe that intelligent manufacturing has demonstrated its ability to bring efficiency improvements to manufacturing enterprises and society, rather than exaggerating its impact on employment. Regardless of intelligent manufacturing, people will continue to evolve in this direction, which is an inevitable trend.

**Bra:**
The industrial internet connects intelligent machines and integrates human-machine connections, software, and big data analysis to reshape the global industry, stimulate productivity, and make the world better, faster, safer, cleaner, and more economical. Can you introduce the advantages of industrial all-in-one machines in practical operation?

**Liang Ding'an:**
Why do we have an all-in-one machine product design? It is tailored to the inherent scenarios of manufacturing enterprises. For both IT and OT domains in groups and factories, the question is, why do we introduce all-in-one machines? Firstly, it lowers the threshold for enterprises to move to the cloud and reduces costs. Flexible models such as outright purchase or leasing also address certain scale requirements for computing power and storage capabilities.

Additionally, it helps us perform specific scenario data desensitization and processing. If allowed, it can quickly form a hybrid cloud, enabling enterprises to build a cloud that includes both large private clouds and public clouds. It offers a more flexible technical architecture, assisting enterprises in gradually establishing their digital foundation. This, I believe, is the core value of the all-in-one machine.

---
Bra Interviews Liang Ding'an: The Second Spring of Manufacturing Industry Awakened by the Industrial Internet

Thanks for reading
If you are interested in more information, follow Bra's [X(Twitter)](https://twitter.com/samwu)