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Xinhua Silk Road
Economy

Feature: China's SMEs accelerate digital transformation

April 30, 2021


Abstract : At a workshop in Haibo Group, the team leader's first task each morning was to assign job duties, which could often take an hour or more. Now with a few clicks, assigning the workload can be done within two minutes.

HANGZHOU, April 29 (Xinhua) -- At a workshop in Haibo Group, the team leader's first task each morning was to assign job duties, which could often take an hour or more. Now with a few clicks, assigning the workload can be done within two minutes.

Haibo Group, in Ningbo City, east China's Zhejiang Province, has been using Alibaba's communication app DingTalk since 2018. The new tool has significantly improved work efficiency and lowered costs, according to Lin Yaozuan, general manager of Haibo Group.

"More and more Chinese traditional small and medium-sized enterprises (SMEs) like us are beginning to feel the crunch of low efficiency in production and enterprise management," said Lin, stressing the urgency of implementing digital transformation.

"The most important step is to digitize our experiences," said He Shaojie, president of the group.

Now workers can browse their work arrangements, salary and performance via the digital tool, freeing themselves from the tedious work of the past.

"Being able to see performance on the phone in real time is not only helpful to our daily work, but can also impassion us," said Chen Bo, a worker in Haibo.

Inclution is a digital transformation service provider founded in Hangzhou, Zhejiang's capital, in 2018. Over the past three years, it has grown into one of the largest professional MES (Manufacturing Execution System) service provider for SMEs in the manufacturing sector in China.

"I was so excited when our users reached 100 because it demonstrated the increasing recognition of our product," said Wang Kefei, CEO of Inclution. Now that their registered users have exceeded 500, the excitement has become "more of a sense of responsibility."

At a valve manufacturing company in Zhejiang, such technology helped lower the value of warehouse inventory dramatically.

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.

"SMEs' demand for digital transformation is very urgent," said Wang. "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." Enditem

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Keyword: SMEs digital transformation

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