Recently, at a forum hosted by the China Electronics Corporation, Zhang Feng, the Deputy General Manager of the Enterprise Digital Architecture Consulting Department, delivered a thought-provoking keynote presentation entitled “Empowering New Quality Productivity with Digital Technology to Inject Fresh Momentum into High-Quality Development in Finance.” During his speech, Zhang emphasized that mere reliance on digital technologies is insufficient for the financial sector to leverage new qualitative productivity effectivelyInstead, he advocated for the establishment of a productivity mindset that recognizes the transformational potential of these emerging technologies in leading enterprises through their digital transformation efforts.

Zhang articulated a critical evolution in the concept of production factors that is reflective of ongoing economic transformationsTraditionally centered around land, labor, capital, and technology, production factors are now increasingly pivoting towards data—widely regarded as the new production factor in the digital economy

Data not only embodies the capabilities of intelligence, digitization, and networking but also serves as the innovative configuration carrier for new qualitative productivityZhang asserted that the core of future productive forces will revolve around a digital economy, driven primarily by data.

During his address, he underscored the profound integration between the digital economy and the real economyThis fusion is accelerating the transformation and upgrading of traditional industries and has emerged as a vital lever for facilitating high-quality economic developmentZhang highlighted two essential aspects of this integrationFirst, there should be a seamless alignment between digital technology and business operations—not just within the realm of financial business but also as financial institutions empower the real economySecond, the drive and enablement through digital technologies are paramount

• Rate Cuts Mark Major Shift by the Fed
• US Stocks Face Headwinds in H2 Next Year
• Bank of Japan Holds Steady on Interest Rate Hikes
• Global Currency War Escalates as RMB Surges 500 Points
• Why the Russian Ruble Sharply Devalued

He stated, “We need revolutionary breakthroughs in technology, alongside improvements in the innovative configuration of production factors, as well as the upgrading of industriesAll these should work synergistically to drive and empower the construction of Digital China.”

Shifting the focus to the core of the digital economy—data—Zhang elaborated on the current developmental trends associated with data as a production factorHe observed that the volume of data being generated is consistently on the rise, with both structured and unstructured multimodal data demonstrating substantial growthThis leads to a qualitative shift wherein industries increasingly demand high-quality data and enhanced data-sharing practicesZhang articulated a progression within the value enhancement process of data—from aggregation to resource allocation, followed by assetization, and ultimately capitalization (value realization). In the initial stages, value is derived primarily from the data itself, but the latter stages hinge on the collaborative efficacy of computing power and algorithms to maximize the data’s potential worth.

Zhang went on to assert that data, computing power, and algorithms are interdependent components in this ecosystem

He emphasized that as enterprises evolve their approach to data, optimizing algorithms and enhancing computing capacity are critical to fostering an innovative productive force rooted in technological advancementHe remarked, “Currently, most financial enterprises are at the stage of data assetization, which involves careful governance, assessment, and utilization of dataSpecifically, this translates to how effectively we can organize and manage our current datasets, utilize these datasets meaningfully, and appraise them to create a robust closed-loop system that supports our data asset operations.”

In conclusion, Zhang distilled his insights into a pivotal takeaway: “Digital technologies and digital science, at their core, do not inherently provoke disruptive transformationsEnterprises undergoing digital transformation must cultivate a productivity mindsetOnly with this mentality solidified can we accurately guide the digital transformation of businesses, thus adeptly leveraging the advantages of our digital technology.” This perspective resonates strongly in an era where organizations are grappling with the challenges of integrating advanced digital technologies into their operational models to foster resilience and adaptability.

Zhang Feng’s insights shed light on the broader context of digital transformation in the financial sector and beyond

With unprecedented advancements in AI, big data, and digital networking, the imperative for organizations to not only adopt these technologies but to fundamentally rethink their operational strategies to leverage them effectively has never been strongerThe journey towards digital transformation is not merely about technological adoption but is fundamentally about reshaping organizational mindsets and processes to thrive in a data-driven economy.

As companies look to the future, the question persists: how can they adapt to the rapidly changing landscape of the digital economy without losing sight of their core values and operational integrity? Zhang Feng’s elucidation on the necessity of aligning productivity thinking with digital capabilities may serve as a blueprint for organizational leaders facing these complex challengesThe potential for data to redefine industries, create competitive advantages, and drive sustainable growth is immense, but it necessitates a shift in both strategy and culture—an evolution that every forward-thinking enterprise must be prepared to embrace.