A recent survey conducted by KMPG revealed that cloud technology can play a vital role in China's progress in the coming years.
Titled 2014 Global Technology Innovation Survey, the study relied on responses from 768 technology executives from around the world, of which 106 were from China. The study pinned to identify disruptive technologies, growth trends and new ways of making money using modern technology.
Based on the results, one-fifth of the Chinese executives considered cloud technology as a strong driver of innovation in the next three years. Further, automotive technology was a sector highlighted by one in ten respondents; data and analytics (D&A was another sector that could propel innovation.
Of the options given that would show great potential for growth, cloud, mobile platforms and applications were selected as top three by the Chinese respondents. Biotech, 3D printing, internet of things and artificial intelligence were the other featured options.
One-fifth of the Chinese respondents identified the following sectors that would show great transformation: technology (22 percent), manufacturing (21 percent), automotive (11 percent) and consumer market (10 percent).
They also isolated the possible challenges China would face in the next three years. Technological complexity was the top concern, followed by security and then risk management.
As with results from last year's survey, China was still a popular choice for initiating technological breakthroughs, according to 24 percent of the respondents. The United States obtained a higher score of 30 percent, dipping 7 percent from last year.
According to Egidio Zarrella, Clients & Innovation Partner at KPMG China, manufacturers in the country are shifting their perspective from "made in China" to "innovate in China for China."
Zarrella said that "many companies are likely to focus on the Chinese market and design products that are tailored for China."
As many capitalists venture in China to establish their presence, the ecosystem in the country becomes like Silicon Valley, only with Chinese characteristics.
Chinese respondents believed that new technologies will improve their businesses in terms of efficiency and productivity.
According to Zarrella, the Chinese government and the business sector must cooperate to make China a global e-commerce player.
Zarrella pointed out that China is a highly diverse market, so businesses must consider this characteristic in making products based on Chinese market behavior.