A Study on the Optimisation of Cost Management in TCL Group’s Value Chain

Abstract

Against the backdrop of the digital economy empowering the real economy, manufacturing enterprises can leverage digital transformation to break through the limitations of traditional cost control and achieve cost reduction and efficiency gains across the entire value chain. Taking TCL Group—a company undergoing digital transformation—as a case study, this paper draws upon value chain cost management theory to analyse the implementation models and existing shortcomings of cost control during the enterprise’s digitalisation process, and proposes corresponding optimisation strategies.The research reveals that through measures such as the implementation of its ‘AI×IoT’ strategy and the construction of an industrial internet platform, TCL Group has largely completed the digital transformation and system upgrades of its cost control mechanisms. This applies to both internal value activities—including R&D and design, procurement, manufacturing and marketing—and the external value network linking upstream and downstream suppliers with end customers.However, during this process, the company has encountered practical bottlenecks, including a continuous decline in the marginal returns on digital resource investment, insufficient data interoperability across business processes, and a severe shortage of multi-skilled professionals possessing both digital technical capabilities and cost management expertise.In light of this, this paper outlines a systematic improvement pathway and response strategy across three dimensions: top-level strategic coordination, digital technology-driven initiatives, and organisational mechanism support. It aims to provide TCL Group and similar manufacturing enterprises with actionable practical guidance and a basis for decision-making to further drive in-depth digital transformation and effectively enhance cost control across the entire value chain.