Latest technology is playing a pivotal role in creating a new economy with greater efficiency

Companies in Guiyang, Guizhou province are taking advantage of the city's push to integrate big data with the real economy by using the technology to increase efficiency, while the entire city rallies to turn itself into China's "digital valley".

The provincial capital announced on April 20 that it expects its "digital valley" goal, a term inspired by Silicon Valley in the United States, to be achieved by 2020 through the establishment of a comprehensive big data industrial system in the city.

Big data is playing a pivotal role in transforming the way that businesses operate as well as acting as a major driving force in the upgrading of traditional industries.

The benefits of big data can be seen most apparently in traditional enterprises that are now using the technology.

Laoganma, a China's bestselling chili sauce, is produced in Guiyang by Laoganma Special Flavor Foodstuffs. Its founder Tao Huabi established the company in 1997 and until recently, the company has operated using a traditional food production business model.

From humble beginnings selling her chili sauce at the roadside, Tao's spicy condiment is now on the market in more than 72 countries and regions around the world.

In recent years, Laoganma has seized upon the latest technologies and implemented the use of big data throughout the entire production, distribution and sales chain of its business.

The company has established a big data operation center to manage the purchase of raw materials, production, digital quality control and production efficiency.

Laoganma also uses big data to monitor and analyze market sales for all of its products so that it can ensure new stock is being produced and that shelves in sales outlets are never empty.

According to the company, the use of big data technology contributed to a jump in annual output value from 4 billion yuan ($626.50 million) in 2015, to 5 billion yuan in 2017.

Laoganma is just one of the successful examples of enterprises in Guizhou that have benefited from the adoption of big data for precise analysis and meticulous management, said Li Zaiyong, executive vice-governor of Guizhou.

In recent years, Guizhou has built up a broader and more diverse economic system by promoting the integration of big data with the real economy, Li added.

"Last year, we helped a total of 4,738 companies to achieve industrial upgrades with the support of big data technology, which has boosted the development of a group of companies operating in traditional industries," Li said.

The Guizhou government is promoting its big data strategy in its high-tech zone by establishing big data technology innovation test areas, which support small, medium and micro-sized enterprises in their research, protect their intellectual property and promote the commercialization of high-tech products.

Guiyang has set a goal to attract more than 10,000 big data enterprises, establish five national pilot demonstration projects and cultivate more than 10 big data brands by 2020.

At present, the added value of the digital economy accounts for 33 percent of the province's GDP. Through these projects, the city hopes to increase its big data revenue to 100 billion yuan by 2020 and create 70,000 jobs.

"We should continue to promote the integration of big data technology with all walks of industry, and then to promote the upgrade of traditional and real economy," said Sun Zhigang, Party secretary of Guizhou.

In order to attract international attention to Guizhou's efforts in big data development, the province has established the Guiyang International Big Data Expo, which has been held for three straight years in the city.

The event has grown to become a weather vane for the world's big data industry and a platform for influential industrial leaders. In 2017 it was upgraded to a national-level expo.

The 2018 expo, to be held from Saturday to Tuesday, will focus on the digital economy and the development of big data. The number of participants is expected to exceed 50,000 with 388 corporate exhibitors.

To date, Facebook, Google, Intel, Dell, Alibaba, JD, Huawei as well as China's three major telecoms operators - China Telecom, China Mobile and China Unicom - have announced their participation in the event.

Zhang Xiaohang, deputy inspector of the internet bureau at the State Council Information Office's information development office, said that this year's expo will be bigger and better than ever.

The event will gather the necessary resources for the development of Guizhou's industrial and big data systems which is of great significance to the development of China's big data industry, Zhang said.

liyou@chinadaily.com.cn

(China Daily 05/25/2018 page24)