Examples of successful digital transformation in business

Perhaps, all of us have heard a lot about “Digital Transformation” recently. Digital transformation is not just a single action but a whole journey that businesses need to undertake and overcome. In this article, let’s take a general look and consider examples of digital transformation in specific sectors.

I. What is Digital Transformation?

Digital transformation (Digital transformation) is the process of applying digital technology to all areas of society in general and businesses in particular. By applying technology to digitize information and documents, businesses are encouraged to experiment with new business models. In addition, when implementing digital transformation, the stages in an organization’s operational process will help the company enhance the experience of customers, employees, partners, etc.

As a leading trend adopted by businesses into their operating systems, digital transformation is one of the most anticipated topics for managers and leaders of organizations. In the next section, we will explore the current state of digital transformation and some examples of digital transformation by large corporations in the Vietnamese market.

II. The Current State of Business Digital Transformation in Vietnam

1. The current state of the digital transformation process in Vietnam

The Vietnam Chamber of Commerce and Industry (VCCI) and the Vietnam Posts and Telecommunications Group (VNPT) conducted a survey on the state of digital transformation in businesses during the COVID-19 pandemic. According to the survey results: 25.7% of businesses have started to take an interest in and apply technology to their operations.

17.3% of the surveyed companies, although not yet applying digital technology, have become interested in adopting it since the Covid-19 outbreak.

To date, many Vietnamese businesses have caught up with global trends. We can consider some typical examples of business digital transformation:

• Finance sector: With the goal of enhancing customer experience when using products/services, BIDV has digitized its transaction data. The bank has implemented an online payment gateway for level 4 public services on the national public service portal and successfully deployed the BIDV Smart Banking online registration system…
• Communications sector: An example of digital transformation in the communications industry that must be mentioned is Viettel. The group’s digital transformation efforts are carried out across all its business areas, such as: Information Technology, Logistics, etc.
• Food industry sector: Vinamilk is a business that applies the Agile model with software development to bring products to customers. Digital transformation is applied by Vinamilk in most of its operations, such as: administration, finance, human resources, supply chain, etc.

In addition, before the Covid pandemic forced employees to work from home, the group had implemented: Digital signatures, E-office, internal corporate communication applications, etc.

2. Challenges in Implementing Digital Transformation and Automation in Vietnam

Digitally transforming an operational model is not a short-term activity; it requires a long journey to implement. Therefore, let’s examine the challenges that most businesses in Vietnam face when implementing digital transformation:

High implementation costs:

This issue often occurs in small and medium-sized enterprises due to limited financial resources. Applying tools and techniques to the organization’s digital transformation process will incur a relatively large cost for the business, especially when purchasing new machinery or modern automation technology lines.

Risk of personal data leakage:

Besides the benefits that businesses gain from implementing digital transformation in their operating models, they also face the issue of personal information exposure. Technology still has many vulnerabilities that create opportunities for cybercriminals to exploit, sell confidential information, etc.

Lack of personnel with deep technological knowledge:

To comprehensively transition to business automation, an organization needs personnel with in-depth knowledge of machinery, techniques, etc. You should master the technology, not let the technology master you. Therefore, a lack of human resources knowledgeable about digital transformation can cause a business to struggle during its transition and adoption of new technology.

III. Examples of Digital Transformation in Various Sectors

1. Digital Transformation in Marketing

Characteristics:

This involves activities that help businesses find customers and bring their products/services closer to them through various methods. By applying digital transformation to marketing activities, organizations can achieve positive impacts such as:

Advantages of Digital Transformation in Marketing

Shifting from traditional marketing to digital marketing allows marketers to reach customers simultaneously across various internet platforms like social media, Google, etc., at a much lower cost than traditional marketing.

Businesses can use tools and software to measure customer experience and needs, thereby enhancing the experience tailored to specific customer segments.

Examples of Digital Transformation in Marketing:

• Using Customer Relationship Management (CRM) software: helps employees manage customer information, track their purchasing journey, etc., thereby collecting customer data to create products that accurately target consumer insights.
• Running advertising campaigns on digital platforms: By using various forms of digital advertising such as Email marketing, Facebook Ads, Google Ads, etc., businesses’ marketing activities can reach a broader target audience and increase the personalization of consumer needs.

2. Example of Digital Transformation in the Service Industry

Digital transformation is essentially about creating more online services to provide customers with enhanced experiences and 24/7 support for their issues.

As one of the leading companies in providing entertainment services, Netflix began the digital transformation of its products in the early 2010s.

The company signed contracts with numerous film studios such as Sony, Paramount, Lionsgate, and Disney to implement digital media distribution.

Additionally, some of the world’s leading entertainment service brands like Netflix, Spotify, Dropbox, etc., have utilized SaaS – Cloud Computing. SaaS can be understood as a model where a provider creates and maintains web-based software, and customers can access it remotely via the internet after paying a recurring subscription fee (monthly, quarterly, annually).

3. Example of Digital Transformation in the Retail Industry

Let’s consider a classic example of digital transformation from McDonald’s: “Bridging the gap between customer needs and perceptions.”

As consumer demands grow, businesses must improve service quality to meet these needs and maintain a strong market position.

Recognizing the increasing customer demands, McDonald’s implemented digital transformation in its customer experience by improving the service consumption journey.

The brand analyzed and identified the key factors that would affect the consumer’s purchasing journey and product experience. Some key factors include:

• Improving in-store facilities and equipment
• Employee attitude
• Applying machinery and technology to shorten service time
• Home delivery, fast delivery

Some examples of digital transformation in customer experience implemented by McDonald’s include:

• Improving the in-store ordering process: Implementing Self-Order Kiosk (SOK) technology
• Using Drive-thru (purchasing directly from the car)

4. Example of Digital Transformation in Logistics

In the logistics market, the most typical example of digital transformation to meet the ever-increasing demands of customers is UPS – the American supply chain management and shipping company.

To enhance the consumer experience when using their services, the company faced two major challenges:

• Express delivery
• Real-time package tracking

UPS developed a tool to manage its fleet called ORION (On-Road Integrated Optimization and Navigation) to help drivers create optimal routes using data from the field. Not only that, but the application of ORION has also helped UPS save about 100 million miles and 10 million gallons of fuel each year.

5. Examples of digital transformation in other industries

Electronic medical records: Patients’ examination results and medical histories are uploaded to the system. Doctors can track medical records online without needing to store them in books or on paper.

Example of digital transformation in education: Online learning platforms like Zoom, Google Meet, etc., are some of the digital transformation applications trusted by businesses during and after the Covid pandemic.

IV. 5 latest business digital transformation trends

After exploring examples of business digital transformation in various sectors, in this section, let’s explore the 5 latest digital transformation trends trusted by businesses both domestically and internationally:

1. Cloud technology

It is a platform for storing and accessing data anytime, anywhere. This allows employees to work more efficiently and collaborate on projects without needing to travel or spend money on physical infrastructure. Cloud computing also makes it easy to securely store large amounts of data and access it remotely when needed. Arguably, this is the most prominent digital transformation trend for data storage in the world today.

2. Hybrid work – The 4.0 work model

This is a combined work model, where during the same work period, employees spend some time working at the office and some time working from home online. 

It can be seen that this model was only recently applied in Vietnam when the COVID-19 pandemic occurred. Only large enterprises with a stable, high-quality workforce can apply this working model. 

For example:

• FPT can be mentioned, as many of the corporation’s subsidiaries have adopted hybrid working, such as: FPT Education (67%), FPT Telecom (64%), FPT Software (62%), etc.
• In early February 2022, Microsoft Vietnam’s office in Hanoi was recognized as one of the most modern office environments in the world, applying a hybrid work style.

3. Focusing on investment in AI and machine learning technology

AI-powered marketing automation software is becoming one of the main trends in business digital transformation. By using AI to support marketing and sales tools, more and more marketers are adopting these technologies as part of their digital transformation strategy. According to the results of a 2021 survey, 76% of organizations consider AI a more significant priority than other IT solutions.

4. Enhancing security policies

One of the main issues in implementing digital transformation for businesses is the provision of personal information. Customers and employees will have to provide the following information to the organization’s data repository: Home address, email, bank card details, and behavioral patterns. For this reason, privacy and its protection have become a growing concern for digital consumers.

5. Applying Blockchain in business digital transformation

Considering the practical application of Blockchain in several stages of a business’s operating model:

• For manufacturing: Applying it to the product quality management process helps managers and consumers easily trace product information
• For the financial sector: Many banks and financial institutions have researched and applied Blockchain technology to their operations. In the Asian market, OCB is the first bank to use Blockchain technology for domestic and international money transfer services. This has increased efficiency, transparency, reduced costs, and improved the customer experience.
• For the retail industry: Walmart – the American retailer is one of the pioneering businesses using Blockchain. Currently, the brand uses Blockchain to track the source of pork imported from China.

V. Digital Transformation with 1Office – All-in-one Business Management Software

To meet the essential digital transformation needs of Vietnamese businesses, 1Office was created to solve 04 fundamental business management problems: Workplace Management (WorkPlace), Human Resource Management (HRM), Customer Relationship Management (CRM), and Overall Management Automation.

Notably, everything is integrated into a single business management software, 1OFFICE, with no intermediary apps and no lengthy manual procedures, making management easier and saving on operational costs.



The article above has provided readers with an overview of the current state of digital transformation in businesses. After exploring and clearly analyzing digital transformation examples for each industry and specific business aspect, we hope the information we’ve provided will be helpful to you. 

For more details, please visit:

• Website: https://1office.vn/
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