If businesses want to keep pace with the current rate of digital change, they must work to improve technological efficiency in every aspect. In other words, this is like inheriting agile principles through business operations. So, what is the current state of digital transformation adoption in Vietnamese businesses? Let’s explore this with 1Office in the following article!
Digital transformation is the process of applying advanced technologies to solve societal or everyday problems, based on the digitization of data and information across various industries.
Digital transformation is the golden key to solving business challenges
For businesses, digital transformation is not simply about “moving” records, documents, and a few individual tasks to an internet-based application platform as some might think – that is merely “digitization.”
Digital transformation is a challenging yet promising process of “reinvention,” because the benefits it brings to a business upon successful implementation are immense.
II. Why do businesses need digital transformation?
Howard King once said that businesses do not transform by choice because it is extremely costly and fraught with risk. When a business fails to “evolve,” it is forced to undergo transformation.
A key factor for business growth is implementing the digital transformation revolution
And that is one of the key factors helping businesses survive and thrive in the digital age. Here are the reasons that answer the question of why managers need to implement digital transformation.
Save time and reduce costs for the overall management activities of the business.
Enhance the ability to reach potential customers and customer segments that match the business’s search needs.
The process of summarizing and reporting to superiors will be faster, more detailed, and more in-depth. No more cumbersome, “off-topic,” or unnecessarily deficient or redundant reports. From these changes, both work efficiency and the company’s competitive ability to “attack and defend” are enhanced. The speed of market dominance will no longer be out of reach.
The comprehensive approach to customer outreach, care, and service upgrades is improved and more flexible. This is clearly demonstrated through online food ordering applications like Baemin, Now, etc.
Online customer care is indispensable in the digital age
Instead of having to go to a physical location as before, customers can now buy their favorite items with just a few taps on an application installed on their mobile phones.
III. The Current State of Digital Transformation in Vietnamese Businesses
Currently, although the government is encouraging and creating conditions to promote digital transformation among businesses, especially in sectors like services, healthcare, transportation, tourism, etc., it has not yet achieved the expected breakthroughs.
Over 90% of businesses in Vietnam are still being steered in a “precarious” and slow manner. Not to mention, there are small and medium-sized enterprises that are still very vague about the concept of “digital transformation.”
The reality of insufficient knowledge and lack of experience in digital transformation
Besides the core reason of inexperience in management, there is also the issue of lacking specialized knowledge and thorough investment in the transformation.
In addition, the necessary strategies outlined for the digital transformation journey still have many shortcomings, are not yet complete, and cannot be implemented.
Although there are still many difficulties and challenges, Vietnamese businesses are gradually embracing, learning to ‘survive,’ and striving to implement digital transformation by applying tools such as cloud computing, chatbots, blockchain, or virtual interaction technology (AR) and business management software).
Among these, comprehensive enterprise management software is a crucial factor leading to success in the digital transformation revolution.
Cloud Computing – A Digital Transformation Trend
Given the situations above, from the position of a leader or a manager, selecting, screening, and applying the appropriate tools for this process is extremely important and urgent.
IV. 12 Mandatory Steps for Applying Digital Transformation in a Business
Step 1. Customer-centricity
Customer-centricity is a business method.
This method focuses on creating a positive customer experience by maximizing services, offering attractive product proposals, and building customer relationships.
Customers are the ones who decide whether a business can survive. Therefore, technology decisions should aim to make customers’ lives more convenient and easier.
Customer-centricity is a business method
Step 2. Leaders Must Be the First to Digitally Transform in the Business
Le Minh Huan, Director of the Institute for Enterprise Development at VCCI, believes that one of the biggest barriers to digital transformation in businesses is the change in mindset and awareness of the company’s leader regarding the importance of digital transformation.
“‘Digital transformation is another way of saying business strategy, so leaders are the most suitable people to talk about digital transformation,’ said Mr. Huan. ‘Leaders must be digital leaders; they must know how to use the latest technologies of the 4.0 Industrial Revolution to support their intellectual activities’.”(according to thoibaonganhang.vn)
Leaders must be the first to digitally transform in the business
Changing the mindset and awareness of business leaders about the importance of digital transformation plays a crucial role in the company’s digital transformation process. A change in leadership’s mindset will motivate employees to work towards the company’s common vision.
Step 3. Businesses Should Adopt a More Suitable New Management Approach
Lack of employee cooperation is one of the common reasons for unsuccessful digital transformation in many businesses. This may be because the technology is too complex, or they are not yet familiar with this new way of working.
“Cloud computing” is a phrase that has been mentioned quite a lot in recent years, as it is perhaps the most significant milestone of the Industry 4.0 era.
This platform is also easy to use with a user-friendly interface and brings many benefits to businesses.
Step 4. Organizational Structure
Companies need to break down old, unsuitable structures to create a cohesive organization that adapts well to change.
Faced with fluctuations in the business environment and the global economic recession, businesses have encountered many difficulties in their operations.
Organizational structure in a business
This has created pressure for businesses to restructure their organizations to improve operational efficiency, adapt to new environmental circumstances, and ensure sustainable development in the future.
The data system needs to be integrated into the company’s internal processes and connected to work together.
At this point, Cloud Drive clearly demonstrates its superior advantages by enabling perfect sharing, backup, synchronization of information, connection, and data between departments, and between the business and its customers.
Step 6. Technology Decision
Digital transformation impacts the entire organization. Therefore, experts encourage companies to use cloud computing services, promail, work management software, etc.
By using technology, businesses can save time and effort, as well as improve work efficiency. These are advanced technologies that help increase the efficiency of business management and operations.
When searching for and applying digital solutions for customers, businesses should also pay attention to their internal customers.
Enhance the internal customer experience
These are the employees within the company. They will be the first to experience the business’s services.
Get employee feedback and provide the best technology solutions for employees to enhance their experience.
Step 8. Development of Products, Services, and Processes
At the beginning of the digital transformation process, businesses also need a shift in thinking about how they organize and deliver their products and services. Have a strategy for improving and developing products and services to enhance the customer experience.
Invest in the development of products, services, and processes
Consumer product usage trends are constantly evolving and changing. This means that products must also constantly change to suit customer tastes and preferences.
Therefore, companies must always strive to find the most effective and innovative solutions.
Businesses need to note that when applying digital solutions, they must also enhance data security.
The advice for businesses is to use comprehensive enterprise management solutions such as work management software, human resource management software, and business management software to ensure safety, data security, and privacy.
Businesses should switch from storing data on personal computers to storing it on the cloud, such as Cloud Drive.
Step 10. Logistics and Supply Chain Management
With a perfect supply chain, businesses will gain many competitive advantages, including cost advantages, price per product unit, and the ability to fulfill customer orders.
With a perfect supply chain, businesses will gain many competitive advantages
To fully drive the transformation, businesses need to improve and digitize their supply chains. Online ordering and home delivery services are being promoted, and accordingly, Cloud Drive is becoming more popular to help store and process information smoothly and quickly.
Digitization is the process of modernizing and converting conventional systems into digital systems. For example, digitizing paper documents of various sizes and exporting them into different file formats such as tif, jpg, pdf, bmp.
Simply put: Digitization is the process of entering data into software for easy management, evaluation, and tracking.
Digitizing documents offers many benefits for businesses. These benefits include significantly reducing storage area and space; preserving and extending the lifespan of traditional documents; saving time on searching, sharing information easily, saving management costs, and allowing for flexible document editing,…
Step 12. Personalize the customer experience
Customers are not loyal to the company; they are loyal to the experience the company provides. In the Vietnamese market, few companies fully understand and implement customer experience management.
Therefore, successfully implementing a customer experience management program creates a superior competitive advantage.
Personalize the customer experience
Personalization is one of the necessary strategies that significantly impacts a company’s growth rate. A real statistic shows that 75% of businesses have experienced some form of personalization, and 90% of them are aware of its importance.
Digital transformation creates an excellent opportunity to provide personalized services to customers, to understand and offer them recommendations.
As you can see, digital transformation is a continuous process that needs to be implemented through these 12 steps. This is the time for businesses to change their working methods to adapt to the digital age, quickly applying technological solutions like cloud platforms, Cloud Drive, and ProMail to overcome challenges and grow faster.
V. Vietnamese businesses that have successfully undergone digital transformation
In Vietnam, many businesses have successfully undergone digital transformation, such as: MB Bank, Cong Ca Phe, F88, Phong Vu, ToCoToCo,… Let’s listen to the successful digital transformation stories of these Vietnamese businesses!
1. MB Bank: Digital transformation is not just a goal
“Digital transformation has left a strong impression on me and on MB over the past period. Digital transformation is not just a goal but also a tool. Therefore, MB creates new products, new experiences – more perfect ones, which is not easy in Vietnam’s conditions” – Mr. Luu Trung Thai replied when asked about MB’s digitization progress.
MB Bank has successfully undergone digital transformation
Nothing illustrates this better than the numbers. In 2019, the total number of financial transactions on the digital banking channel increased approximately 11 times compared to 2017; increased 5.6 times compared to the same period in 2018; the total financial transaction volume on the digital banking channel increased 4.5 times compared to 2017; and increased nearly 2 times compared to 2018.
To be able to offer such highly digitized services, the internal system must be even more digitized. Therefore, in addition to the mandatory core banking system T24, MB also uses 1Office to optimize its work processes. 1Office provides a solution for banking digitization and easily connects MB’s branches.
2. Cong Ca Phe – The nostalgic coffee chain elevates its brand to the international stage
Cong Ca Phe is successful in business in general and in brand franchising in particular. Despite the constant challenges in the F&B industry, Cong always ensures quality, as well as the design style of each store.
Cộng Cà Phê – The “subsidy-era” coffee chain goes international
Not only does Cộng Cà Phê demonstrate consistency in store design, product menus, and raw material sourcing, but it also synchronizes operations across its entire system, including human resources management, project management, and back-office departments.
The 1Office solution has helped the Cộng chain manage all related tasks, making them simpler, more automated, and saving costs as well as manpower. It provides comprehensive management of these tasks, replacing the multiple fragmented solutions they used previously.
3. F88’s digital transformation journey, changing the perception of pawnshops
In the pawnshop service market, the image of a pawnshop often appears dark and poorly lit, which reduces customer trust. F88 did the opposite; its combination of green and yellow brings peace of mind to customers. F88 always operates based on three principles: Reliable, Fast, and Friendly.
F88’s digital transformation journey, changing the perception of pawnshops
F88 currently owns a system of 141 stores. Due to its unique characteristics, F88 requires all stores to maintain seamless information flow at all times. This task requires intermediary software between the stores. F88 chose 1Office as its companion.
“1Office helps me control timekeeping for the office block as well as 80 stores. 1Office also solves the problem of shift scheduling, shift swapping, overtime, and leave request approvals. In addition, the software also supports building and calculating payroll very conveniently.” – Mr. Phung Anh Tuan (CEO of F88) on the solution that helped him achieve successful digital transformation.
Conclusion
With many outstanding features that surpass other management software, the 1Office all-in-one business management platform has become the golden key that opens the door for businesses to undergo a smoother, more seamless digital transformation.
1Office provides an internal management network, allowing for easy access to and storage of company data and information. It also improves interaction and discussion among employees, departments, and divisions within the company.
1Office – The All-in-One Business Management Solution
This software is not just a place for work-related exchanges; it can also become a space for sharing and comfortably discussing topics from daily life.
In addition, the work management, customer management, and human resource management features bring significant changes to the management process. Superiors no longer need to monitor projects directly on bulky devices like desktops or laptops but can still oversee project progress, understand each step, and promptly resolve any issues that arise during implementation.
Furthermore, the data security feature is enhanced, minimizing the risk of information leaks and preventing malicious actors from exploiting it to harm the business.
1Office helps businesses achieve successful digital transformation
Additionally, 1Office has been selected by the Ministry of Information and Communications as a pioneering platform in the national digital transformation program, providing a solution that brings sustainable efficiency to businesses.
1Office hopes this article has helped you better understand the topic of digital transformation in business and provided you with more information to apply to your work in the future!
Additionally, if you are facing difficulties in the digital transformation process for your business, sign up for a trial to receive a consultation at 1office.vn. 1Office will support you in transforming digitally quickly and effectively!
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