Global management consulting firm McKinsey has opened its Industrial Internet of Things (IIoT) hub in China to help local firms drive digital transformation, the company announced Tuesday.

The biggest challenge for IIoT application is "the last mile," especially the large-scale integration of information technology and operational technology, said Karel Eloot, a senior partner at McKinsey.

At present, many enterprises across the world are launching digital transformation and carrying out IIoT technology pilot programs to enhance innovation and realize mass customization at a lower cost. Most, however, face a lack of resources and long-term digital strategies.

The new IIoT center has selected 120 firms from a pool of 1,000 as its partners and developed 56 digital solutions to help companies integrate into digital transformation.

"China has huge market potential and a strong willingness and drive for innovation," said Wang Ping, a partner at McKinsey.

Wang said China has a world-class manufacturing ecosystem and a great talent pool, which will undergo a digital transformation to bring about greater productivity and creativity.

Digital transformation covers product design, supply chain and inventory management, and even management models, said Wang.