Digital transformation is one of the top concerns of technology businesses in Vietnam. The Vietnamese government also pays special attention to digital transformation in the industrial revolution 4.0 and assigned the Ministry of Information and Communications to develop a National Digital Transformation Project and submit it to the Prime Minister right in 2019. .
So what is digital transformation and how important is it in the Industrial Revolution 4.0?
What is digital transformation?
It is difficult to have a clear and specific definition of digital transformation, because the process of applying digital transformation will have differences in each different field.
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Digital transformation plays an important role in the Industrial Revolution 4.0
However, in order to be able to define it briefly and easily, digital transformation (Digital Transformation in English) is the integration of digital technologies into all areas of an enterprise, taking advantage of technology to fundamentally change the way it operates, its business model, and delivers new value to its customers and accelerates business operations. Digital transformation is also a change in the culture of businesses, requiring businesses to constantly change, try new things and freely accept failures.
In Vietnam, the concept of “Digital Transformation” is often understood in the sense that the process of changing from a traditional business model to a digital one by applying new technologies such as big data (Big Data), the Internet for things (IoT), cloud computing (Cloud)… to change the way of operating, leadership, working process, company culture.
Not only does digital transformation play an important role in businesses, but digital transformation also plays an important role in other areas of society such as government, mass media, medicine, science…
“Digital Transformation” can easily be confused with the concept of “Digitalizing”. To distinguish these two concepts, it can be understood that “Digitalization” is the process of modernizing and converting conventional systems to digital systems (such as switching from paper documents to soft files on the Internet). computers, digitizing television to switch from analog broadcasting to digital broadcasting…); whereas, “Digital Transformation” is about exploiting the data obtained from the digitization process, and then applying technologies to analyze, transform that data and create new values. “Digitalization” can be viewed as part of the “Digital Transformation” process.
Why is “Digital Transformation” important and what are the benefits?
Reports of large market research companies such as Gartner, IDC… all show that digital transformation really brings a lot of benefits to all aspects of business activities: from management to research. , business…
The most recognizable benefits of digital transformation for businesses are cutting operating costs, reaching more customers in the longer term, leading faster and more accurate decision making thanks to the system. timely and transparent reporting system, optimizing employee’s productivity… these things help to increase operational efficiency and improve the competitiveness of organizations and businesses.
Leveraging technology platforms will help businesses improve many areas and reach the 5 ultimate goals of digital transformation
Whereas for ordinary people, digital transformation changes the way we live, work and transact with each other. As for the state, digital transformation uses data and digital technology to change the user experience with services provided by the state, change business processes, change the model and mode of operation of the government. state management agency.
Digital transformation also contributes to increasing labor productivity. Microsoft research shows that, in 2017, the impact of digital transformation on labor productivity growth was about 15%, by 2020, this figure will be 21%.
In general, according to market research and analysis experts, the 5 ultimate goals that digital transformation businesses aim for include: Speeding to market; Strengthening competitive position in the market; Drive revenue growth; Increase employee productivity; Expand your ability to attract and retain customers
How is digital transformation happening in the world and in Vietnam?
Digital transformation is increasingly changing the perception of leaders, who have the ability to determine the direction and ability of successful transformation of the organization. The government apparatus of many countries, after realizing the importance of digital transformation in increasing operational efficiency and ensuring national security, immediately entered a new “race” in the application of digital transformation. number conversion.
In the past, old-fashioned technologies were only accessible to large companies with strong economic potential. Therefore they are always leading the market, at least by a few steps. But now, whether small companies or new startups can access technology no less than large companies.
According to Microsoft’s 2017 research in Asia Pacific region, in 2017, the impact of digital transformation on GDP is about 6%, in 2019 it is 25% and in 2021 it will be 60%.
McKensey’s research results show that, in 2025, the impact of digital transformation on the GDP of the US will be about 25%, with Brazil at 35%, and in European countries about 36%. . From here, it can be seen that the impact of digital transformation on GDP growth is very large.
The speed of digital transformation varies by region and country, depending on the level of technology development and the speed of business model transformation. In which, Europe is considered the region with the fastest digital conversion speed, followed by the US and countries in Asia.
Businesses in Vietnam are facing many opportunities and challenges in the race for digital transformation
In Vietnam, digital transformation models are also creating useful services for the people and effectively utilizing the idle resources of the society. However, they also create contradictions and fundamental changes with the traditional business model. New technology strengths are helping startups gain an edge over traditional industrial sectors. This trend creates important changes in industry value chains as well as global supply chains. In the context of the current digital economy, it is imperative that traditional organizations, businesses and models make drastic changes in order to continue to exist and develop.
With a population of 96 million people and the second fastest growing economy in the region, a dynamic young population and the ability to quickly access high technology, experts estimate that Vietnam has great potential. big in digital transformation. These are powerful opportunities for Vietnamese businesses to make a breakthrough in the market thanks to digital transformation.
Digital transformation is gradually becoming a common trend in the 4.0 era of businesses. So what is digital conversion? What’s the benefit? And what is the digital transformation process in the business? Let’s learn this problem with Vntrip TMS right now.
Digital transformation is a trend of the times, but there is no common definition for this concept. Each business and organization has different management models and methods, so the definition of digital transformation will also be different.
However, the essence of digital transformation is the creation of a new mode of production (activity) based on digital data and technology and gradually converting to that mode. And for successful digital transformation, businesses need to build a comprehensive and appropriate digital transformation process.
Purpose and benefits of digital transformation in business
According to market research and analysis experts, the 5 ultimate goals that digital transformation businesses aim for include:
– Speed to market
– Strengthening competitive position in the market
– Drive revenue growth
– Increase employee productivity
– Expand your ability to attract and retain customers
And digital transformation really brings a lot of benefits to all aspects of business activities: from executive management to research, business…
– Helps cut operating costs
– Reach more customers in a longer time
– Leaders make decisions faster and more accurately thanks to a timely and transparent reporting system
– Optimizing employee productivity
– Increase the operational efficiency and competitiveness of the business.
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How does the digital transformation process in the business happen?
The digital transformation process in an enterprise consists of 6 independent steps as follows:
Step 1: Assess the status and determine the business’s digital transformation goals
Recognizing and re-evaluating the business in all aspects: human resources, finance, technology and corporate culture is the first step in the digital transformation process. Surveys, data synthesis and actual observations will show the readiness of enterprises for digital transformation. From there, the goal of digital transformation will be determined.
Step 2. Planning and implementation strategy
After determining the goals to offer specific digital transformation solutions, business leaders and managers need to come up with the most detailed plan including: what to do, resources, real time. currently, expected completion time, etc.
The next step in your business’ digital transformation process is determining the right strategy. Businesses can refer to documents of the Ministry of Information and Communications or learn about businesses that have successfully converted digitally. From there, combine with the unique foundations, goals and characteristics of the business to build an appropriate strategy.
Nike and successful digital transformation strategy
Step 3. Digitize documents and processes
This is the most basic step in the digital transformation process in businesses. Converting paper documents into digital format and storing documents on the Cloud helps businesses increase security, easily manage and search for data when needed.
Digital transformation of business processes will also bring optimal efficiency. This helps to save working time and solve problems, reduce personnel costs and increase work productivity, etc. Along with that, the process of working with customers will be easier, increasing satisfaction. customer satisfaction.
Step 4. Prepare human resources
The human factor in digital transformation is the most important thing. For successful digital transformation, businesses need high-quality human resources: solid professional knowledge, always ready for change and timely response to risks. In fact, human resource training is always focused at successful digital transformation businesses.
In addition, the appropriate and open working environment and culture of the enterprise will improve work efficiency, promote innovation among employees, and facilitate digital transformation.
Step 5. Invest and apply new technology
Up to 80% of small and medium enterprises in Vietnam face difficulties in building technology infrastructure for digital transformation. Therefore, the investment and application of new technology must be carefully and comprehensively prepared and implemented. Although technology platforms for digital transformation are increasingly popular, not all platforms are suitable. Make sure the platform is business-specific and employee-friendly.
Vntrip TMS is a business and travel management software suitable for many business models. With smart and convenient features, Vntrip TMS help businesses reduce worries such as the problem of finding hotel rooms – air tickets, managing business bills and having a detailed reporting system. This is also considered a technology to help businesses convert digitally quickly and conveniently.
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Step 6: Evaluate and improve
After performing the above 5 steps, businesses need to review and re-evaluate the process and results. From there, businesses will outline what to do to improve the quality of digital transformation.
Digital transformation is a long journey that requires businesses to make constant efforts and have a clear and specific digital transformation strategy based on practical analysis as well as steadfastness and determination in the implementation process. . Hopefully your business will soon integrate with this global trend.
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