On the development of China’s Internet industry, first start with Germany, the United States two pioneer. Brief talk about three issues: the virtues of industrial development of the Internet and the direct cause of the expected; Internet industry and consumer Internet are essentially different; China-oriented small and medium enterprises to Pratt & Whitney. Direct cause of virtue with the expected development of the Internet industry by Germany Industry 4.0 is rooted in the German economy faces two major problems: First, the aging population problem is serious, tight labor industry, need to achieve a larger automation, digitization reduce labor dependence; second, because the German auto industry giants such as Volkswagen, Mercedes and other emissions into a fraud scandal after another, the German traditional manufacturing high reliability and rigorous quality reputation of being challenged, need to put it another look to enhance their competitiveness. United States proposed Internet industry, but also from the general direction for the purpose revive the manufacturing sector. US advantage over the German IT is more obvious, the Internet industry pay more attention to the role of large data, software, sensors, America wants wider industry chain. Germany, the United States is the industry’s first Internet starter, but their development has not reached the first thought of the scale and speed of the Internet industry will be the first to commercialize GE for this business segment has been adjusted, the leader of Germany’s Siemens industrial internet platform Predix also failed as the German manufacturing quickly driven up the design. Although the pace of development as expected, the Internet industry is still foreign to enterprises, continue to move forward. Large foreign enterprises has two basic characteristics: First, most of them both civilian enterprises, but also the military industrial enterprises, with the needs of national defense requirements and defense budget support, did not encounter too much pressure on the transformation of funds; the second is the traditional manufacturing industry large companies have realized the digital transition, with very strong IT capabilities, such as Siemens have 17,000 software personnel, GE has a strong software development capabilities. They have a number of both familiar and understand the IT manufacturing industry and technical personnel. Internet and consumer Internet industry are essentially different comparison, China’s situation is entirely different. The most important thing is spotty Chinese enterprises in the digital transformation of the level of respect. Chinese manufacturing enterprises to truly own complete digital transformation CONTROL ENGINEERING China Copyright , we can say little; even on this road in leading companies, IT capability is also limited to the service itselfBusiness, expand capacity remains to be improved. With the lack of integrated solutions and the ability to cover the whole field of leading enterprises, their long-term layout of weak capacity, forward-looking, systematic and urgent need to upgrade technical content, lack of ability to lead the international development. IT has a strong ability of IT companies such as BAT, Huawei, etc., as the Internet is the Internet industry in the second half Control Engineering Copyright , is beginning to actively explore the way. Consumer Internet rapid development of China compared to the threshold of the Internet industry is much higher, mainly in the following areas: consumer Internet terminal varieties simple, low threshold for the use, easy to spread, easy to upgrade, and the Internet industry involves many types of production equipment; Internet business long industrial chain, service model complexity, demand is difficult to do a very clear need for technical solutions for continuous service; Internet industry for rapid response, high reliability and security requirements; large Internet industry demand for capital; Internet industry for both for information technology and business process familiar to people there is an urgent demand; Internet information security industry is more concerned about the integrity of the real economy companies to provide third-party services ICT companies have high demands, fear for their technical know-how and business data It was leaked to competitors. From a business model perspective, consumer Internet often than burn, poly popularity, ring users, making traffic by advertising revenue and fees will be, this model is no way to replicate the Internet industry. IT enterprises lack understanding of the process and vertical industry process , they look at the Internet market is the industry-known, seen, touched, high threshold, and therefore the implementation of the Internet industry body should be vertical industry business, but their downside is the lack of iT talent. So, the Internet industry needs IT enterprises and vertical industries and enterprises to work closely with consumer Internet take-all pattern with different segments of the need to cultivate leading enterprises. China is now the Internet industry has brought depth to the application and effect of business have emerged. For example, CONTROL ENGINEERING China Copyright , extensive cooperation Shanghai Commercial Aircraft Aircraft Equipment Manufacturing Co., Ltd. to carry out information technology companies, Huawei, Alibaba and other Internet companies to provide technology solutions in production processes 22 5G were using technology to enhance the quality and efficiencyThe rate of improvement is very helpful. Shanghai Commercial Aircraft success has its specific conditions, China’s first large aircraft to fly, SAC, XAC and fly into a collaboration, in addition, it can be said that Chinese production of large aircraft is no other business, and no leaked to domestic rival concerns; secondly, there are sufficient funds to fly. For Comac, the industrial use of the Internet, it is important not to save on manpower, although China is also facing the problem of labor, but there is no urgency as Germany, more importantly, how to ensure quality of service, how to make all the processes from the start will be able to completely rely solely on artificial to ensure the quality, how to avoid man-dependent, all production processes are on the record, because in any case the training of workers, or to be pinned on their responsibilities and skills. So for large enterprises, industrial enterprises is the quality of the Internet revolution, an important starting point for change and efficiency of power change. Compared with the mechanical processing and other manufacturing industries scattered, Internet industry progress in the process manufacturing industry in China is facing more challenges, long process, complicated process, continuous production, production safety risk factors, sales links and more difficult to obtain large end-user data, in Baosteel ahead in this regard, but the big difference in different industrial processes, different industries of the Internet business practices in the same industry can not be copied, rely on their own to explore, also need professional Internet solutions for industrial cooperation programs service enterprises . Pratt & Whitney-oriented small and medium enterprises large enterprises have the will, ability and funds to rely on the Internet for industrial restructuring quality and efficiency, the government should strive to support tens of millions of Chinese small and medium enterprises, not corporate restructuring in this round the upgrade process is left behind. In comparison, the Internet industry for many SMEs still on the sidelines, first and foremost is the lack of critical infrastructure hinder the ability to lower the level of most enterprises digital, weak network, intelligence evolution foundation. Now we can see the use of the Internet industry companies are good case has reached a considerable degree of digitization level, plus sensors, data analysis or you can make a decision in favor of production. But without this foundation, the “brain” that can work? It does not work. Not only have a brain, but also well-developed limbs. Another reason for hesitation SMEs, industrial Internet in the end can help them solve the problem? China is now a large number of low technological level Control Engineering Copyright , a lot of double-ups only “brain + computer”, in this case, even if the companies are willing to transition, Even if there is funding available Internet software industry, we do not have the talent and ability to make good use of the software. The characteristics of the Internet industry with highly personalized Internet industry is not able to spend money to buy all the Internet software industry needs and adapted according to the specific conditions of the enterprise, and even equipment needs to be customized according to their own circumstances. The best is to provide a basket of solutions and services to third-party companies, but this means very high service costs, both BAT and other Internet companies, or foreign, are reluctant to focus too much on providing services in this area. In this regard, there is a problem of market failure. For market failure, the government can build an industrial center Internet industry innovation, configuration strong computing power, software-rich tool procurement industrial use, large data analysis software and artificial intelligence decision-making software, collect all kinds of data, including a large open government initiative can open the data, the Center also hired professional and technical service personnel, free and open to SMEs, SME counseling using its software, hardware and data. In this way, it can help SMEs to quickly enhance their own ability, and this is inclusive of support. The center may be government-funded construction and tendering third-party companies operate, you can also build their own third-party companies, the contribution of the government can get a degree and third-party services from small and medium enterprises, to assess third-party companies, and through the purchase of services way to compensate for expenses or third-party companies put into operation. The center can also be a bridge of cooperation with research, where research institutions can find business needs. Fraunhofer operating modes for reference. Fraunhofer has a strong research team and research capabilities, through the “contract research” approach, the project commissioned by the enterprise is 70% funded, government-funded 30% of the needs of enterprises to complete the project proposed. By “contract research” approach, customers enjoy the institutes of the Fraunhofer-Gesellschaft strong R & D technology and high levels of accumulated research team services, through multi-disciplinary research institute cooperation, access to its “tailor-made” solutions and research. Help Regional Innovation Center for SMEs not necessarily have to be a strict definition of the Internet industry. Industrial production has a long chain, the Internet industry can be cut from a part of any industrial Internet start it would not have to wait until the cloud or block chain can only be as long as possible to help enterprises solve practical problems in the process of industrial digitized there is progress. Such asIf this can help most spontaneous act of SMEs, basic industries of the Internet there. Local governments are actively promoting the Internet industry, now we need to transition from stage heat to do some real work inclusive. Government is by establishing a number of demonstration benchmarking methods to promote industrial Internet, choose one or two companies to provide funds from many companies, this is somewhat unfair to other businesses, but also leads to whether many companies rely on government subsidies to decide whether to digital transformation. In addition, tens of millions of Chinese small and medium enterprises, different needs, supporting individual projects is not the answer, it is important to let them produce endogenous motivation. I think the right approach is not to provide funding, but the government create a market environment for development, and enhance the economic development of confidence, encourage enterprises to carry out technological transformation, technological innovation and a support platform provides free services to the enterprise. In this process also can attract institutional investors to come together to support the development of the Internet industry. Digital, networked and intelligent direction of industrial development, promoting quality change, efficiency change and agents of change, the heart is the beginning of the industrial development of the Internet. However, the full realization of the Internet industry innovation always on the road, the Internet industry is a long-term process, need to lay a solid foundation for management innovation and technological innovation both to meet the challenges of development.