IoT GUIDE

This article was originally posted in the Gongkong news center and is part of a new series aimed at raising awareness of China's Industry 4.0 Initiative.

Notice by the General Office of the Ministry of Industry and Information Technology regarding the application details for demonstration projects for the development of service-oriented manufacturing

To MIIT departments in all provinces, autonomous regions, municipalities and cities, Xinjiang Production and Construction Corps:

In implementing the Made in China 2025 strategic plan to develop service-oriented manufacturing according to objectives and requirements in the Special Guidelines on the Development of Service-oriented Manufacturing, the application details for demonstration projects is as follows:

1) Overview

The Special Guidelines on the Development of Service-oriented Manufacturing shall guide the implemention of projects by batches in an orderly fashion. Initial demonstration projects will be selected based on their extent of providing supply chain management, product lifecycle management, overall integration as well as information value-add services.

2) Principle for selection

(A) Great emphasis on results

- Projects are to aim towards promoting increase in revenues of service enterprises through the transformation from production manufacturing to service-oriented manufacturing.

- Enterprises should shift its focus from production and operation towards manufacturing and related service activities

- Profit generation should extend beyond manufacturing towards services, in order to guide transformation of key departments around core strengths.

(B) Focus on innovation

- To discover ways of model innovation, management innovation, and service innovation to boost economic and social benefits,  in turn encouraging other enterprises to transform and innovate in their businesses.

(C) Integration is encouraged

- Encourage manufacturing enterprises to intergrate with downstream industries in the value chain and other Internet and information technology services create synergies and win-win cooperations.

- Through an optimised industry ecosystem, collaboration can improve use of resources to reduce costs and risks as well as enhance service capabilities.

3) Application requirements

(A) Pre-conditions

1. Registering entities should operate within the People's Republic of China, hold proper legal standing and have good operational and financial standing.

2. The entity should have service-oriented manufacturing features, and meet the Preconditions for Service-oriented Manufacturing Business Models (see Annex 1).

3. Declare that major quality, environmental or safety incidents did not occur within the last two years, and no violations or suspected violations of the law is currently under review by relevant departments.

(B) Specific conditions

1. Registering entities should possess distinct characteristics of manufacturing enterprises, and its technology and production processes, and service capabilities must have some advantage within the industry. Business model innovation can form part of the entity's core competitiveness. The company must achieve tangible results through strategic planning, operations management, platform establishment, talent training, and service excellence.

2. Registering service transformation demonstration projects should have been implemented after January 1, 2015. Project must be in operation, and help to reduce production costs, improve operational efficiency  increase market share and achieve other goals. The project should improve the service-orientation of manufacturing operations, make service capabilities more prominent, and strengthen the entity's market position.

3. The demonstration should provide professional public services or market-oriented producer services by businesses, universities, research institutes, industry organizations and other third-party service providers. It can be either a platform for the professional services industry or other integrated service. The platform should have been established and operational for at least a year (since January 1, 2016) and achieved significant achievements in improving the service system, content, and mode. Services provided by the platform should effectively reduce costs and risks of cooperation between enterprises to achieve efficiency gains and value-add to services.

4) Selection process and requirements

(A) Registering entities should operate within the People's Republic of China, hold proper legal standing and have good operational and financial standing.

(B) All MIIT departments should follow government guidance and submit initial assessments along with recommendations of projects. Each department can recommend no more than 2 companies, 5 projects and 2 platforms. Declaration documents in Annex 2 are to be filled and submitted with accompanying materials.

(C) Each local department is in charge of the organising and reviewing application materials, and fill out the Service-oriented Manufacturing Demonstration List of Recommendations (see Annex 3). to be submitted before March 8, 2017 to the Ministry (Department of Industrial Policy).

(D) MIIT will assess submitted materials and conduct third-party reviews of organization combined with the necessary field research and other procedures to approve the list of projects by the service-oriented manufacturing enterprises. Thereafter, a summary of all projects will be generated and available for promotion nationwide to help boost the national development of the service-oriented manufacturing industry.

(E) After the first selection process, follow-up efforts will be arranged according to relevant circumstances and given notice of accordingly.

Contact: Cui Wei

Tel: 010-68205182

Contact E-mail: cuiwei@miit.gov.cn

Annex:

1. Basic conditions of service-oriented manufacturing business model (projects, platforms)

2. Service-oriented manufacturing business model (projects, platforms) notification form

3. Service-oriented manufacturing demonstration recommended summary table (Annex Downloads: Annex regarding the development of a service-oriented demonstration to inform the selection process manufacturing)

General Office of the Ministry of Industry and Information Technology

December 30, 2016