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Cost-benefit Analysis and Risks in Haier's DigitalTransformation

Ma Wenjing, Jin Weifeng

School of Accounting, Hebei University of Economics and Business

Abstract:

In the era of a global digital revolution, corporate digital transformation has emerged as a pivotal strategy for strengthening competitiveness. This study takes Haier Group as a case to explore the cost–benefit dynamics and inherent risks throughout its digital transformation journey. By elaborating on the background and key initiatives of Haier's transformation, the paper examines the associated cost structure — including expenditures on technology infrastructure and organizational restructuring — and evaluates the resulting economic gains, such as improved production efficiency and expanded market reach. It also identifies major challenges, spanning technological uncertainties, organizational and managerial complexities, and market volatility, and puts forward targeted countermeasures. The findings are intended to offer practical insights for enterprises undertaking digital transformation, enabling them to strike an effective balance between costs and benefits, proactively mitigate risks, and ultimately realize a successful digital transition.


Key Words:

Haier; digital transformation; cost-benefit; risk


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