XCMG: Digital business transformation of a manufacturing giant
Case Study

XCMG: Digital business transformation of a manufacturing giant

6 pages
January 2020
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

This case addresses how XCMG, the traditional B2B industry, manufacturing company, successfully embrace digital technology and adopt a platform business model.

It invites participants to discuss and discover the factors enabled the rapid digital business transformation of XCMG, and thus to learn:

  • 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
Settings
China
Xuzhou Construction Machinery Group, Building and Construction
2009-2019
Type
Published Sources
Copyright
© IMD 2020
Language
English
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