In the course of transition from plan ned economy to market economy,state-owned enterprises will en-counter the challenges brought by re volution in network.In Internet age,industrial construction of state -owned enterprises will have to meet the rad ical reforms and big changes in market environment.Production system wi ll suffer substantial influence.In th is process,state -owned enterprise s will go through a new competition.S tate -owned enterprises need to realize th is tide,renovate continuously and f ind their own positions in this new en vi-ronment.