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Case Study

XCMG: Digital business transformation of a manufacturing giant

By Mark J. Greeven and Yunfei Feng

6 pages

January 2020

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Reference: IMD-7-2142

This case was written in 2019, 10 years after Xuzhou Construction Machinery Group Co. Ltd. (XCMG) initiated its SAP ERP project in 2009. The digital transformation of XCMG has been so fast, that within less than 10 years, it developed from this internal IT project to a digital platform that provides services to many external enterprises. This case is to discover the factors that enabled this rapid digital business transformation. The case study shows the digital transformation of XCMG, the leading construction equipment manufacturing company in China. Established in 1943, before the establishment of the People’s Republic of China, for past over 66 years, XCMG was a traditional manufacturing company, and enjoyed the dividends of the China’s economic development. XCMG was so successful in its manufacture b2b business not only domestically, but also internationally, by learning from oversee companies and continuous innovating. Until recently, China’s economic development slowed down, and the China–US trade friction emerged, however, XCMG had already prepared for this situation, and started its digital transformation 10 years ago.

Learning Objective

The six stages of digital transformation of B2B manufacturing companies.
Factors enabled the successful digital business transformation of B2B manufacturing companies.
Challenges of B2B digital business transformation.

Keywords

Digital Transformation, Manufacturing, Internet of Things, China, Strategy

Settings

Asia, China
Xuzhou Construction Machinery Group, Construction and Engineering, Building and Construction
2009-2019

Type

Published Sources

Available Languages

English

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