Asianfin--“We’re not just competing with the big four brands anymore; it’s the countless smaller companies that are biting away at our market,” said Yang Senlin, CIO of C&S Paper, at the 2024 ITValue Summit. “These smaller players, with their flexibility, have left big brands scrambling,” he added.

Yang acknowledged the immense changes in the competitive landscape faced by traditional businesses like C&S Paper, noting that the rise of e-commerce and mobile payments has left many brick-and-mortar companies struggling.

Founded in 1999 and listed on the A-share market in 2010, C&S Paper is one of China’s leading tissue paper companies.

To stay competitive, C&S Paper has leveraged digital systems to develop data insight and supply chain delivery strategy models, reducing supply chain costs by 5%.

Yang believes digitalization is a mirror reflecting true business processes and data issues, rather than focusing solely on the digital tools themselves. He outlined four key metrics to evaluate digital transformation: increased sales and profits, reduced costs, fewer employees, and risk avoidance. If these goals aren’t met, digital initiatives risk becoming cost centers.

Yang pointed out that AI is merely a tool—real change comes from the people who wield it. “AI alone won’t transform the era. The people who know how to harness AI will.”

He further noted that true digital transformation is a management revolution. According to Yang, companies too often chase digitalization without considering its practical business outcomes.

As an example of their success, Yang described C&S Paper’s use of AI-driven data insights in managing its distribution. By analyzing factors such as local demographics and business types, C&S Paper identified high-potential stores from among thousands, leading to significant sales growth. With these insights, the company is expanding into 10 new cities.

In the logistics space, C&S Paper implemented an AI-based dynamic supply chain model, cutting delivery costs by 5%.

“This was the first time in four years we reduced supply chain costs, and it should be attributed to our AI strategy,” Yang added.

“Without a focus on business growth, digital transformation risks becoming isolated,” he said, urging businesses to prioritize strategic goals over technological hype.