Frost & Sullivan releases 'Research Report on the Market of Digital and Intelligent Transformation of Chinese Enterprises in 2023
Original Frost & Sullivan' Frost & Sullivan March 12, 2024, 10:18 shanghai
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Contact Email|PR@frostchina.com
The digital economy is becoming a new engine driving economic growth globally. As the Chinese economy shifts gears and upgrades, the digital economy, with its innovation-driven and efficient features, has become a key force in economic transformation and upgrading. To promote the development of the digital economy, governments continue to increase investment in digital infrastructure, such asThe construction of 5G networks, big data centers, and cloud computing platforms has provided solid technical support for the digital economy. By implementing a series of incentive industrial policies, it supports the deep integration of digital and intelligent technologies with the real economy, promoting industrial digitization and digital industrialization.
The digital and intelligent transformation of Chinese enterprises is crucial for enhancing their overall competitiveness. Digital and intelligent transformation can not only help enterprises improve production efficiency and reduce operating costs, but also optimize decision-making processes through data analysis, thereby enhancing the market adaptability and innovation capabilities of enterprises. Against the backdrop of increasingly fierce global competition, digital and intelligent transformation has become an inevitable path for high-quality growth of enterprises.
On March 12, Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan') officially released the '2023 China Enterprise Digital Transformation Market Research Report' (hereinafter referred to as 'the Report'). The report analyzes the current market situation of digital transformation in Chinese enterprises, providing a comprehensive exposition from dimensions such as industrial background, market size, cross-border comparison, technological development, application fields, driving factors, development trends, and competitive landscape. It tracks the development context of industries and technologies, explores the huge potential for industry development, and analyzes market development trends, aiming to provide comprehensive industry insights for participants and observers in the Chinese enterprise digital transformation market.
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Enterprise-level management applicationSaaS market
Cloud services are a frontier and core foundation for industrial and enterprise digital transformation, leading the way at the underlying level.IT architecture and the transformation of business models in the digital intelligence industry; mature markets are continuously increasing their spending on cloud services, with China's cloud service market approaching global market levels within the next five years. The SaaS market is the main direction of development in the cloud service market; the U.S. market leads China's market more significantly in markets closer to application scenarios, but China's cloud service market is expected to grow at a faster rate than the U.S. market, showing a trend of catching up with the U.S. market.
Enterprise management applications are a key part of the digital and intelligent transformation process of enterprises. Enterprise management applicationsSaaS has become the core factor driving the growth of the overall enterprise management application market in China, with a CAGR of 26.3% over the next five years. By 2027, the enterprise management application SaaS market will reach 856 billion yuan.
In the first three quarters of 2023, comprehensive software vendors such as UFIDA and Kingdee continued to hold the leading positions in the SaaS market for enterprise management applications in China. UFIDA ranked first in the SaaS market for enterprise management applications with a market share of 10.4%.
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Digital and Intelligent Transformation Market for Small and Micro Enterprises
China has a vast number of small and micro enterprises, which are an important part of the national economy and one of the main drivers of growth. As an important component of the market, small and micro enterprises demonstrate strong growth vitality. The number of small and micro enterprises in our country has decreased fromThe number of enterprises increased from 34.57 million in 2018 to 52.56 million in 2022. At the same time, the government has issued relevant favorable policies to provide more opportunities and support for the development of small and micro enterprises, promoting the emergence of a large number of new ones.
Growth, profitability, and compliance are the three most critical issues faced by small and micro enterprises for sustained development; digital intelligence can effectively meet these needs in multiple aspects.
At present, the overall usage rate of management software for small and micro enterprises has reached a relatively high level, with only a few(12%) of the surveyed small and micro enterprises do not use any management software, but when looking at different types of software, the penetration rate of single software products is still relatively low.
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Small and Micro Enterprises' Business, Finance and Taxation ApplicationsSaaS market
Small and Micro Enterprises' Business, Finance and Taxation Applications"SaaS" refers to application software that provides support for core business processes, financial management, and tax management to small and micro enterprises in the form of cloud service delivery. It is the most essential area for the digital and intelligent transformation of small and micro enterprises.
Small and Micro Enterprises' Business, Finance and Taxation ApplicationsThe value of 'SaaS' is not only reflected in providing ready-to-use, standardized digital and intelligent products that improve quality and efficiency, but also in the ability of vendors to meet the differentiated needs of different industries such as manufacturing, retail, and commerce through flexible configurations and personalized solutions based on standardized products and a deep understanding of vertical industry demands. This enhances the efficiency of refined management across the entire process for small and micro enterprises.
Small and Micro Enterprises' Business-Finance-Tax ApplicationThe driving factors for the SaaS market include:
1) Macroeconomic side:As the scale of China's digital economy continues to rise, it has become a new engine driving high-quality development of the Chinese economy. Various new business forms emerging from the digital economy have become new important growth points for the Chinese economy;
2) Business Side:Online businesses of digital-native small and micro enterprises continue to develop; digital and intelligent transformation of traditional businesses, online and offline."Complement each other";
3) Regulatory side:Tax supervision is gradually shifting fromEntering the era of 'tax management by numbers', the digitization of invoices places higher demands on the fiscal and tax standardization and system intelligence of small and micro enterprises, thereby driving the rapid development of the 'SaaS for business, finance, taxation applications' market for these enterprises.
Currently, the 'Business Tax and Finance Application' for small and micro enterprises in ChinaMarket participants in the 'SaaS' market mainly include comprehensive SaaS vendors (such as Changjie Tong and Kingdee), innovative vertical SaaS vendors (such as Guanzhuangpo), and mid-to-long tail SaaS vendors. Among them, comprehensive SaaS vendors possess strong R&D and delivery capabilities, providing products that span multiple business areas of small and micro enterprises, meeting the vast majority of their needs, including financial management, tax management, inventory management, supply chain management, production management, marketing management, etc., and offering full lifecycle services for small and micro enterprises; in addition, comprehensive SaaS vendors can provide complete customer service support to help enterprises better use SaaS products.
In the first three quarters of 2023, Changjie Tong ranked first in both market share of SaaS for small and micro enterprises' fiscal and tax applications in China, as well as the number of cumulative paying users, with a market share of 9.4%. Among the more than 400 surveyed small and micro enterprises, Changjie Tong's customers had the highest satisfaction with all dimensions of its brand and products; at the same time, Changjie Tong's products had the highest net recommendation value, reaching 49%.
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Small and Micro Enterprises' Business, Finance and Taxation ApplicationsMarket Outlook of SaaS
Industry-Finance-Tax Application for Small and Micro Enterprises in ChinaThe main development trends of the SaaS market include:
1) Through technological innovation, the SaaS for business finance and tax applications of small and micro enterprises will be further deeply integrated and coordinated. By closing the loop of business finance and tax management functions, it will help small and micro enterprises transform into data-driven enterprises;
2) As the market for small and micro enterprises matures and diversifies, manufacturers will pay more attention to constructing a comprehensive product matrix to meet the differentiated needs of tens of millions of small and micro enterprises across various industries, thereby deeply tapping into market potential;
3) Small and micro enterprises can establish their own data assets centered on business data by using industry finance and taxation SaaS products. This type of data asset will bring value to the mining and application of credit information for small and micro enterprises, promoting them to explore the monetization of data assets;
4) With the further development of generative AI and large models, as well as the continuous deep integration of industry finance and tax SaaS products with advanced technologies, industry finance and tax SaaS systems will become more intelligent, open, and interconnected.
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Frost & Sullivan
Global growth consulting firm, Frost & SullivanFrost & Sullivan, abbreviated as 'Frost & Sullivan', integrates 64 years of global consulting experience. Over the past 27 years, it has dedicated itself to serving the booming Chinese market with a global perspective, helping clients accelerate their business growth and achieve benchmark positions in growth, innovation, and leadership within the industry.
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Contact email:PR@frostchina.com
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Global growth consulting firm, Frost & SullivanFrost & Sullivan, abbreviated as 'Frost & Sullivan', integrates 63 years of global consulting experience and has been serving the booming Chinese market with dedication for 26 years. With a global perspective, it helps over 10,000 clients accelerate their business growth, assist them in achieving benchmark positions in growth, innovation, and leadership within the industry, and realize capital operation goals such as financing and listing.
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