Digital economy plays an increasingly important role in the national economy, and the basic software supporting the digital transformation of enterprises is facing upgrading.
According to the White Paper on The Development of China’s Digital Economy (2020) released by the China Academy of Information and Communication, the size of China’s digital economy accounted for 36.2% of GDP in 2019, the nominal growth rate of the digital economy was twice that of GDP in the same period, and the penetration rate of the digital economy in the service sector, industry and agriculture reached 37.8%, 19.5% and 8.2% respectively. It can be predicted that no enterprise can avoid the impact of digital economy, but how should enterprises carry out digital transformation?
Recently, Wang Yuan, vice President of netease, Executive Director of Hangzhou Research Institute and General Manager of netease Sufan, was invited to attend the 7th Information Strategy Forum and the 4th China-Asean Information Port Forum of China Information 100, sharing netease’s thinking on the trend of digital transformation and corresponding enterprise digital transformation methodology from different aspects. And the latest practice, ecological construction and typical application of netease Shufan basic software.
Wang Yuan spoke at the fourth China-Asean Information Port Forum
Wang Yuan believes that the biggest difference between the digital model of Internet enterprises and the traditional information model is the personalized software that supports large-scale online and rapid iteration, instead of the traditional packaged software represented by ERP. The core needs of enterprise digital transformation lie in the three aspects of efficient research and development, cost reduction and stable operation. Traditional information technology is not yet available, so the basic software needs to be upgraded to meet the needs of enterprise digital transformation.
As ahead of China’s leading Internet company, netease started covering areas such as media, music, retail, education mode of digital economy, also formed the core of a digital transformation methodology, including the definition of intelligent software defined organization, data and software infrastructure three modules, corresponding to the three digital enterprise core competence. Wang yuan stressed that at present many enterprises have not realized the importance of SOFTWARE definition organization, but in Europe and The United States with a higher degree of digitalization, Apple, Google, Amazon and other companies have verified the success of software definition organization ten years ago, so Chinese enterprises to implement digital transformation must also pay attention to this ability.
Netease number sail is netease company launched under the guidance of the methodology, the basis of the digital transformation for the enterprise to provide comprehensive support technology software platform, the platform mainly includes the netease canoe, netease easy measurement, netease Yi Zhi and netease is number four major product lines, including netease canoe and netease is easy to form the software define the organization’s measurement solution, In July this year, the open source distributed storage system Curve and cloud native operating system constitute the software-defined infrastructure solution.
To help enterprises to achieve real digital transformation, the number of netease sail is also committed to building a more open system of digital ecological capacity, remove the binding of software and hardware, ecological and technical route based on open source, to realize the unified management, mixed and cloudy at the infrastructure layer is compatible with all hardware architectures and all sorts of cloud platform, In the application software layer with different partners to provide a variety of solutions for the industry customers to provide comprehensive services.
Relying on these basic software products, netease has served hundreds of customers in retail, finance, manufacturing, media, e-commerce, education, logistics and other industries in the past three years, including Yum China, Deppon Express, ICBC, Resorts Premium, Nongfu Spring and so on.
The following is the summary of Wang Yuan’s speech:
Digital transformation has become an urgent topic in all walks of life. Statistics show that in recent years, the core driving force of China’s national economic growth has come from the digital economy, which accounted for 36.2 percent of GDP in 2019. Every industry is thinking about how to make digital transformation. Share experience, methods and technical support capacity of netease here.
Netease is one of the earliest and leading Internet companies established in China. We have expanded diversified Internet businesses in the fields of games, music, media, education, ODM e-commerce, and created many new models for the development of China’s digital economy. This series of innovation results, benefits from a technological innovation and talent training twin engines to drive business incubation innovation mode. Based on this mature model, netease has also been developing in the field of enterprise services. In the last three years, it has served hundreds of medium and large enterprise customers for digital transformation. In the process, we have also developed a methodology that focuses on digital transformation.
Digital transformation is in urgent need of three core competencies
Now many enterprises have a good level of information construction, but to turn to digital, there is still a gap to cross. There is a fundamental difference between the traditional informatization mode and the digital mode of Internet enterprises. The former mainly purchases packaged software represented by ERP, while the latter turns to the personalized software research and development similar to that of Internet enterprises. In the digital era, people, equipment, systems, management and services are all online, and the whole business presents a trend of data and intelligence, which leads to a sharp increase in the number of software users, an expansion of application scope, an increase in use frequency and an increase in iteration frequency. Therefore, the core requirement of enterprise digital transformation is to control a series of key technologies of software development and operation, so that software can be developed efficiently, run stably, and reduce the cost of digitalization. Traditional SOA, middleware, private cloud, data warehouse, BI and other technologies are more or less limited in scale, performance, low efficiency and other aspects, so the basic software system needs to be upgraded to meet the needs of enterprise digital transformation.
Based on this core concept, we conclude the core methodology of digital transformation, which requires enterprises to master three core competencies, including software-defined organization, data intelligence and software-defined infrastructure. They were named SDI^2 because their initials were SDI or DI.
Just as in modern society, each of us needs professional knowledge and skills, rich experience and wisdom, and good health and fitness, digital enterprises also need these three abilities to succeed. Software defines organization, which is equivalent to human knowledge and skills; Data intelligence is equivalent to human experience and wisdom; How to carry that knowledge, skills, experience and wisdom requires a strong software-defined infrastructure, which is the equivalent of human health and fitness.
Digital enterprises must attach importance to software-defined organization
At present, many enterprises have not deeply realized the importance of this ability, but as early as ten years ago, in Europe and The United States with a higher degree of digitalization, software definition organization has become a consensus. Bjarne Stroustrup, the father of C++, argued in 2009 that human civilization runs on software. In 2011, Silicon Valley legend Marc Andreessen also put forward the famous assertion that “software is eating the world”. He cited numerous cases such as Apple, Google and Amazon to show that the world’s most successful companies are software companies.
Amazon, for example, spends more on research and development than any other company in the world, creating the world’s leading online retail system and cloud computing system. At the same time, Amazon also made significant innovations in software development technology, including the current popular micro-service architecture and personalized recommendation technology, which were initiated and carried forward by Him.
Netease is also a software-defined enterprise, such as netease Cloud Music. Before cloud music, music software was a player, but we defined music software as a content community. We have made many software innovations, such as playlists, social networking, recommendations and comments, thus building the richest music content community in China, enabling users to discover good music and good creators to find good users. Why netease cloud music is different is because its software is different. The same is true for netease’s games. In 2019, 90% of our game revenue came from self-developed games. Our Fantasy Westward Journey has continuously launched new versions and won a large number of players’ love.
Therefore, if China wants to continue to develop digital economy and implement digital transformation, it must also pay attention to software-defined organization.
The key to data intelligence is to give full play to data productivity
We all agree on the value of data intelligence, the key is how to do it well. We believe that the key to realize data intelligence is to have the right method and give full play to the data productivity of the whole link. Some enterprises do not master good methods and follow the current upsurge in the industry to blindly invest in the construction of the data center. In the end, there is no good output, but a lot of capital cost and time cost are wasted.
Three things need to be done at the same time for the full link data productivity. First, we need to build a data center to achieve unified data management. Secondly, good data products should be built based on data in the data center, so as to support all managers and employees in the organization to make good decisions and actions based on data, and to provide good services for external users. Finally, with the development of the Internet, multimedia data such as voice, text, image and video are becoming richer and richer. We also need multimedia intelligent algorithms for structured processing, so that these data can also be included in the data center.
We believe that ** without data products, there is no data productivity. Good data products are geared to the specific needs of specific users and provide good means to help users solve problems. ** Take two examples, netease Cloud Music and netease Yanxuan, both of which have huge data product matrices, enabling the management, operation, marketing and other positions to make various analyses at any time and then take corresponding actions. With its data products, cloud music can predict the popularity of songs in advance to develop business strategies; Yan Xuan can reach through all channels and increase the conversion rate by 113%.
In the path to data productivity, human ai is the key to understanding multimedia data — text, voice, images, video. ** This data can be transformed into structured data that can be used by the data center through intelligent algorithms such as speech recognition, natural language understanding, image or video recognition.
Using software-defined infrastructure well requires a cloud-native operating system
Many vendors today offer powerful software-defined infrastructure capabilities, but many enterprises do not have a good handle on these flexible infrastructures. Historically, we managed all the resources and infrastructure through the operating system. However, in the current cloud computing environment, the environment is fragmented and there is no good operating system. We suggest that enterprises build a cloud native operating system to manage the infrastructure again.
The architecture of the cloud-native operating system planned by netease Sufan can schedule all the resources of public cloud, private cloud and bare metal through the cloud-native hybrid cloud based on Kubernetes in the bottom layer, and provide a series of cloud-native middleware in the upper layer, such as all kinds of databases, message transmission, big data and machine learning. In this way, all computing can run on a unified hybrid cloud architecture.
There are four main points of value for cloud native operating systems. The first is independent and controllable. We believe that the real “independent and controllable” is when customers can control themselves. The second is the unification of standards, that is, the same set of technology system in various environments of private, public cloud and hybrid cloud. The third is to reduce costs, because the use of staggered peak effect between businesses can improve the utilization of resources; The last is to increase flexibility. Importantly, the resource pool can enjoy the low price of annual and monthly package.
Netease media business is a typical case of cloud native operating system application. By using the cloud native middleware and the mixing of front and background business, media increased the resource deployment density of middleware by 25% and the overall CPU utilization of the cluster to 53.56%. The cost of resources alone is estimated to have been reduced by 37.6%, not including the reduction in operational costs.
Infrastructure-neutral solutions and ecology
Aiming at the three core capabilities of enterprise digital transformation, we launched a whole series of basic software core capabilities through netease Shufan, including four core product lines, to provide a comprehensive and comprehensive solution for enterprise digital transformation. Among them, Netease Qingzhou as a cloud native software productivity platform, netease Etest as a quality and performance management platform, they can jointly help enterprises to provide efficient software definition organization ability, netease Edata and netease Eizhi can help enterprises quickly obtain data intelligence ability. In addition, Netease Sufan also provides a cloud native operating system and high-performance distributed storage, enabling enterprises to control software-defined infrastructure.
From the perspective of enterprise digital transformation, the digital transformation can not only rely on netease a technical ability to achieve, so the number of netease sail is committed to build an open digital ability of ecological system, we need to remove the binding of software and hardware, ecological and technical route based on open source, help enterprises to achieve a neutral, no binding based software, Realize the unified management of hybrid cloud and multi-cloud. Therefore, Shufan only outputs basic software, and these basic software can run on all infrastructure, no matter which public cloud or private cloud, no matter x86, ARM, Shenlong, kunpeng. At present, netease Shufan has reached a wide range of strategic partnerships with Intel, Inspur, Huawei, Ali Cloud, UCloud, Jinshan Cloud and other cloud manufacturers, as well as many application layer software developers, to jointly provide enterprises with more comprehensive technical support for digital transformation.
The above is a set of methodology of netease for enterprise digital transformation and the basic software capability support provided by netease Shufan. Thank you!