Exclusive Interview With Bao Zhuolan, CEO Of IBM Greater China: Digital Transformation Has Become A Top Priority For Enterprises; It Industry Will Become "The World Of Quantum Computing" In 5 Years

2020 is destined to be a year written in history. The global outbreak of new crown pneumonia has triggered the U.S. stock market failure, the birth of "negative oil price", and the "bankruptcy wave" of enterprises. Various crises are staged in turn How to survive the crisis safely has become an important proposition that many enterprises have to think about.

"This epidemic is a" Darwinian moment "and a test of" survival of the fittest ". Some enterprises failed and disappeared. Others have been able to withstand the crisis and become more powerful. " IBM Greater China CEO Bao zhuolan said in an exclusive interview with 21st century economic reporter.

Bao zhuolan believes that "through this crisis, governments of various countries and regions have reached a consensus that the realization of enterprise digitization has become a top priority."

In addition, Bao zhuolan had a dialogue with the 21st century economic reporter on how Chinese enterprises should transform crisis into safety through digital transformation, IBM China's investment strategy, and the future development trend of IT industry.

Digital transformation is imperative

The 21st century: the impact on the business environment. How does this affect IBM and its customers?

Bao zhuolan: it is. For the world, the epidemic is like an earthquake. In fact, in China, IBM is one of the first enterprises to take anti epidemic action. We have taken many unprecedented measures, including the purchase of masks, alcohol disinfection, body temperature screening and so on.

Of course, our top priority is to focus on the health of our employees and customers, which has always been our top priority. We must respond creatively. There were no guidelines at first. Later, the government promulgated the anti epidemic guidelines, which we strictly abide by. Moreover, we are well prepared. Facts have proved that the anti epidemic achievements of the Chinese people are amazing. At the end of the day, we believe that the epidemic has a profound impact on global business and the economy. In my opinion, this epidemic is a "Darwinian moment" - a test of "survival of the fittest". Some enterprises failed and disappeared. Others, on the other hand, have been able to withstand the crisis and become more powerful.

I believe that after this crisis, governments of various countries and regions have reached a consensus that it is urgent to realize the digitalization of enterprises. This is no longer a dispensable option, but an essential element. If enterprises want to become more powerful after the epidemic, they must be digital.

It is well known that in the 21st century, it plays an important role in the global supply chain. How can IBM improve agility and supply chain management?

We provide a key solution for this. In summary, we are currently focusing on five solutions. One of them is agile supply chain.

We believe that supply chain agility is very important. When there are problems in the supply chain, the enterprise can adjust flexibly in time. Everyone has seen the impact of the epidemic on the supply chain. Enterprises were even shut down because of the epidemic. So, how can we adjust the supply chain without affecting the normal operation of enterprises? Not only do we already have technical solutions. Moreover, we also integrate artificial intelligence into all aspects of the solution, so "agile" is not just a matter of paper, but a real ability.

Obviously, we need to take advantage of the advantages of artificial intelligence and cloud technology to help customers continue to operate and improve their agility. Once customers adapt to this approach, they will also use it as an important asset after the outbreak. During the outbreak, people adopt the new normal way. The key is that we hope to help our customers survive the "Darwinian moment" - the test of "survival of the fittest", resist the storm of the epidemic, become more powerful, and meet the "new normal" with confidence.

The Chinese market still has a bright future

21st century: IBM seems to be practicing its ideas by building a digital sales center. What is the reason behind this? What is the progress?

Bao zhuolan: we are very excited to share the news about the establishment of IBM digital sales center. Obviously, compared with face-to-face communication, more customers can be contacted in the digital sales center, especially during the epidemic period. We have been unable to communicate with customers face to face for a long time. Now that China's work and life have returned to normal, we can travel again. But for about three months, it was completely illiquid. Therefore, the digital sales center is indeed an effective way to keep in touch with our customers, so that we can continuously provide solutions for customers.

This is also a way for us to cultivate talents, because there are many very young talents in the digital sales center, belonging to "generation Y" and "generation Z". They approach customers in a completely different way. This is a great opportunity for us and our customers.

21st century: China has a vast territory and numerous enterprises. How do you work with local partners to expand IBM's reach and influence?

Bao zhuolan: as we all know, in order to develop hybrid cloud business, IBM acquired red hat (red hat). Today, we are a system, as a company, to help customers move from one cloud to another. Thanks to the openshift platform. We call it "the fourth platform.".

At present, we need to make sure that it is not only an IBM solution, but also a solution for China. The only way to do this is for some ecosystem partners to use this technology to build their own solutions, which is the most important thing for us. For example, alicloud joins the list of "IBM certified public clouds". This is a good example.

Recently, digital China has officially become an important business partner of red hat. We will provide solutions based on red hat openshift to a wider area of China. We will continue to strengthen and optimize this solution. We have also established a Inspur Commercial Machinery Co., Ltd. with Inspur to provide power products and services to the Chinese market. The joint venture has made great progress in the public sector, rural areas, remote areas and the broad industry market. Let our solutions benefit more Chinese enterprises.

21st century: according to the latest data, China's GDP growth rate in the second quarter was 3.2%, becoming the first major economy in the world to recover positive growth under the epidemic situation. How about the recovery of IBM's China business?

Bao zhuolan: we hope to fully comply with the opportunities brought about by China's rapid economic recovery. Moreover, IBM also attaches great importance to China's domestic market. We want to focus not only on China's domestic market, but also on helping Chinese companies go global because they need the world market.

In this regard, IBM has a unique advantage because we have operations in more than 170 countries and regions. Which other enterprise is more capable of helping Chinese enterprises expand their international market? However, there is still much to be done in the local market.

I mentioned earlier that companies need AI capabilities. Only 18% to 20% of enterprises actually use AI in their daily operations. We can help businesses in this area. In addition, IBM has an advantage in supporting China's technology infrastructure while focusing on China's rapidly recovering economy. In fact, our first platform, the mainframe. We have a close working relationship with Chinese enterprises and have won their respect.

There is one thing I want to share. When I worked in IBM France, I found that French companies liked IBM very much, but after I came to China, I found that Chinese enterprises recognized IBM more. We call this indicator the "net recommended value.". IBM's "net recommendation value" in the Chinese market, that is, customer satisfaction, is the highest in the world.

IBM's localization strategy remains unchanged

21st century: Recently, we often talk about the "new normal". What is the "new normal" in your eyes?

Bao zhuolan: as I said just now, the new normal is to make full use of the hybrid cloud to truly carry out business transformation and create a hybrid IT environment. Second, the new normal is "information technology everywhere". You can feel the existence of consumer technology when you walk on the street now. For example, in China, I see many people use mobile phones to order meals and pay for meals. China is far ahead of other countries and regions. It's really advanced and convenient for consumers. But it must be reminded that do not confuse "enterprise it" with "consumer it".

Now, we want to let enterprises also enjoy this kind of technological progress. As I said just now, only 18% to 20% of enterprises use AI technology in their business process. In order to adjust the supply chain, to have a digital workforce, and to establish an "immune system" to ensure network security, enterprises need AI. Under the new normal, we hope not only to let consumers enjoy the new technology, but also to make great progress in enterprise information technology. Companies can take action in these areas.

There are significant differences between "enterprise it" and "consumer it". Why? Because enterprise it is regulated and restricted by many laws and regulations. For example, the cloud service that banks use is different from the cloud that our consumers use. This is not only in China, each country / region has a series of regulatory measures and requirements for building industry cloud.

We can provide enterprises with a hybrid cloud architecture that meets the regulatory needs and help them quickly adapt to the "new normal". So we have a lot of work to do. According to the data, the market is worth as much as $2 trillion.

21st century: due to the impact of the epidemic, there is a so-called "de globalization" trend in the world. What do you think of "de globalization"?

Bao zhuolan: in my opinion, whether it is "decoupling" or "de globalization", these are the categories of political practitioners.

As I said just now. At present, IBM has more than 170 business systems, IBM brands and more than 170 countries in the world. So IBM is a real multinational. We hope to continue to operate as a group through multinational companies. But as I said, we are also very focused on the home market. Therefore, although IBM is a multinational company, we do want to be rooted in China and do business in China in the form of localization. No matter which country or region we operate in, we will abide by the local laws. We are committed to using advanced technology and talented people to meet the needs of our customers, which is very important to us and my only (first) idea.

Secondly, I think we should take a long-term view. IBM is 109 years old - very long. We have experienced four remodelling and four platforms. IBM has experienced many transformations after remolding. At present, we are still going through this transformation; at the same time, we are going through an extraordinary period such as the epidemic. Therefore, I believe that in the long run, our development prospects in China are very bright.

21st century: will some international "de globalization" thoughts affect IBM's long-term strategy in China?

Bao zhuolan: I don't think it has any effect. We are looking at the situation. We abide by laws, administrative orders and other regulations. Of course, frankly speaking, our business will also be affected. We believe that countries can first strengthen regulation in terms of law and international trade, and urge all parties to abide by it.

In line with the company's business objectives, we expect to protect it intellectual property rights at the same time. This is very important, it's no secret, because it ultimately concerns the vital interests of thousands of Chinese employees working at IBM.

I think IBM China is a Chinese enterprise. IBM France is a French company. Therefore, what we need to do now and in the future is to focus on serving our customers and respond to their needs at any time.

21st century: how does IBM localize in China?

Bao zhuolan: it is very important to provide products suitable for the local market. Our R & D center in China will create localized solutions for the Chinese market, and we will rely on ecosystem partners to achieve this goal.

When technologies such as openshift need to be integrated into very large-scale solutions, digital China or Alibaba cloud can create solutions based on openshift. So as to better serve Chinese customers.

21st century: you mentioned Alibaba cloud just now. Can you tell us what competitive advantages IBM has compared with Alibaba cloud?

Bao zhuolan: This is a new world. We compete with many companies and cooperate with many companies, which is called "competition and cooperation". This is the "new normal.". Every enterprise must adapt to this new normal. There is not only competition but also cooperation between enterprises.

According to a recent Forrester report, IBM is the leader in hybrid cloud strategy. Alibaba cloud is also among them, but IBM ranks first. Therefore, I think Alibaba cloud can also take advantage of IBM's advantages in the fourth platform to integrate openshift into the hybrid cloud strategy. It's not competition. We know how to set business boundaries, but we will also work together.

IT industry will be the world of quantum computing

In the 21st century: it's slowing down. If we still want to carry out some cooperation at the international level, what areas or industries do you think have more opportunities?

Bao zhuolan: of course, there are many opportunities in China. The financial services industry is one of the industries with great opportunities. Technology that meets the needs of the industry is also important, and we can use it to bring significant value to the industry.

Because 5g is becoming more and more popular, we can help telecom companies such as China Telecom, China Unicom and China Mobile to save a lot of costs with the help of hybrid cloud and virtual network technology. Therefore, this is also an area in which we look forward to cooperation. This is also an opportunity for us.

So our primary focus is financial services, followed by telecommunications. In third place is the automotive industry. China has made a lot of new technological progress in electric vehicles and automatic driving. We not only cooperate with Chinese enterprises, but also cooperate with multinational companies such as BMW and Volkswagen.

There are more than three huge business opportunities in these industries. However, the opportunities for the retail industry should not be ignored, because I used to be the head of IBM's global retail industry. The retail industry is undergoing self-renewal, such as e-commerce.

21st century: can you look forward to the future of IT industry?

Bao zhuolan: we will focus on the hybrid cloud. I just explained what platform 4 is. We also have the courage to try new things. Every attempt is based on great courage.

IBM once created the word "e-commerce". Later, e-commerce became popular. For example, the e-commerce stories created by IBM were carried forward by Alibaba, Tencent and Baidu in China.

We can imagine that in the future, quantum computer will write a new legend in the industry. Within five years from now, quantum computing may emerge. By then, the problems that cannot be solved by microprocessor will be solved, so people need to innovate technology. This will bring new breakthroughs. Therefore, I predict that the IT industry in five years' time will be the "world" of quantum computing.