A new service system has been put into use to optimize the process of digital transformation for small and medium-sized enterprises (SMEs).

The system was co-launched by the School of Management of Zhejiang University and Inclution, a digital transformation service provider based in Hangzhou, capital of east China's Zhejiang Province.

As the country's industrial enterprises proceed with intelligent transformation, SMEs are confronted with a series of challenges, such as the lack of funds, talent and methods.

"Some enterprises may lose confidence in digital transformation because mistakes are costly," said Wang Kefei, CEO of Inclution.

The system can help enterprises quantify and score the digitalization level, dynamically evaluate the management status, before generating management upgrade reports, according to Wu Xiaobo, a professor with Zhejiang University.

The reports of the previous day will be automatically sent to enterprises via the system, giving suggestions for enterprise management upgrade and improvement, added Wu.

With the help of the system, the overall cost of running businesses will be reduced, said Wang.

Founded in 2018, Inclution has grown into one of the largest professional MES (Manufacturing Execution System) service providers for SMEs in the manufacturing sector in China.

China is speeding up digitalization in the manufacturing sector. As outlined in the 14th Five-Year Plan for National Economic and Social Development and the Long-Range Objectives through the Year 2035, China will promote the deep integration of digital technology and the real economy, and empower the transformation and upgrading of traditional industries, so as to spur economic growth.

The company will introduce industrial software to manufacturing enterprises in poor mountainous areas, and invest in more digital resources and technological services there, according to Wang.

"SMEs' demand for digital transformation is very urgent," Wang said. "We're working with these companies to search for areas that can be optimized, especially to tackle common problems in production, procurement, inventory and error-prone piecework."