The manufacturing industry is the backbone of China's industrial sector. According to recent statistics, the added value generated by the manufacturing industry accounts for 78% of the entire industrial sector, employing 82% of the workforce, contributing about 40% to GDP, 50% of fiscal revenue, and 80% of foreign trade exports. This highlights the critical role of manufacturing in driving economic growth. Therefore, it is essential to accelerate the informatization of the manufacturing industry, using information technology to drive industrial modernization and enhance the overall quality and global competitiveness of China’s manufacturing sector. At the recent National Conference on Manufacturing Informatization for Science and Technology, the goals for China's manufacturing informatization during the "Eleventh Five-Year Plan" were officially confirmed. The focus was on promoting "green manufacturing" through the application of information technology. To support this initiative, the Ministry of Science and Technology issued "Guiding Opinions on Promoting the 'Eleventh Five-Year Plan' Manufacturing Informatization Science and Technology Engineering Work." Under these guidelines, a large-scale "Industrialization Information Technology Project" will be launched, with a total investment of 5 billion yuan, combining national, local, and corporate resources. Nearly 800 million yuan will be allocated from the 863 Plan and other supporting programs. The project aims to develop integrated systems and industry-specific software applications, while implementing a "hundreds of millions" plan to demonstrate informatization at different levels across enterprises. Over 10 major industry groups have already conducted digital integration and application demonstrations, achieving seamless design and manufacturing processes, paperless operations, and integrated business management. These efforts have helped over 1,000 enterprises improve their informatization levels. Additionally, around 10 public service platforms for manufacturing informatization have been established, providing online collaborative services and shared technical resources to 10,000 SMEs, significantly boosting their digital capabilities. During the "Tenth Five-Year Plan" period, China's manufacturing informatization made significant progress. A four-tier work system was established, ranging from national to local cities and pilot enterprises. Nearly 2,000 enterprises started pilot informatization projects, with total investments reaching 7.63 billion yuan and an informatization index of 18%. This laid the foundation for a promising development trend in manufacturing informatization. However, challenges remain. Despite progress, many companies still lag behind in adopting information technology. Academician Sun Jiaguang, a leading expert in advanced manufacturing and automation under the National 863 Program, pointed out that although China is the world's fourth-largest manufacturer, it is not yet a true manufacturing power. Labor productivity remains far below that of developed countries. He emphasized that by 2020, China must achieve two key goals: 10% of global added value and 10% of global finished product exports. Green manufacturing plays a crucial role in achieving this vision. In practice, many manufacturing firms have not fully recognized the urgency of informatization. For example, in Yueqing City, Zhejiang Province, only 50 out of 500 electrical enterprises with annual production values exceeding 10 million yuan have implemented informatization. Similarly, in Beijing, among 114 home appliance companies, only nine are urgently in need of digital transformation. This indicates that less than 10% of enterprises truly prioritize informatization. With over 30 million enterprises in China, the number of pilot informatization projects—over 4,000—is still small. The profit margins in manufacturing are low, with logistics costs alone accounting for more than one-third of total expenses. Without profitability, how can China become a true manufacturing power? The journey toward full informatization is long, but it also presents great opportunities for IT and software companies. However, experts warn that some IT firms focus too much on concepts and expansion, failing to meet real user needs. Some enterprises treat informatization as an "image project" rather than a strategic necessity. To address these issues, Sun Jiaguang proposed the "three integrations," "three closenesses," and "three profits" framework. These principles emphasize resource integration, close alignment with actual enterprise needs, and mutual benefits for all stakeholders. He also highlighted that China's ERP industry still lags behind its international counterparts. While it may take time to close the gap, developing a new generation of ERP systems could help avoid unnecessary detours. Successful foreign software solutions are closely tied to the integration of manufacturing processes. The current ERP market is highly competitive, with low entry barriers leading to many players, similar to the CAD market in 1996. Only a few companies will survive in the long run, driven by market forces. Experts also suggest that China's manufacturing industry can learn from multinational companies' joint-win models in informatization. Research from Harvard Business School shows that Fortune 500 companies actively engage in joint R&D and form thousands of strategic alliances. In contrast, while some Chinese companies participate in ERP and CAD alliances, cooperation remains superficial. True progress requires deeper collaboration and shared innovation.

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