Digital transformation trends are constantly being updated, requiring every organization to quickly adapt to new situations and take advantage of opportunities. Digital transformation in businesses is one of the solutions that helps businesses make great strides in optimizing business processes and increasing profits. However, the current state of digital transformation in business of Vietnamese enterprises is still lagging behind compared to many other countries. Besides, some others are still having difficulty finding suitable digital transformation solutions for their businesses. So what is the most powerful enterprise digital transformation solution? Join Viindoo to find out through the article below.
What is digital transformation?
Digital transformation can be understood as the application of advances in digital technology such as cloud computing, Big data,... to the operations of organizations and businesses to bring about efficiency. high, promoting revenue growth and brand awareness.
Digital transformation is not simply changing the way of working from manual to applying technology to reduce labor. Digital transformation plays a role in changing business thinking and the way businesses and organizations operate.
What is digital transformation?
The role of digital transformation in business
A business can implement digital transformation for many reasons, but the ultimate purpose of digital transformation in a business is a matter of survival and future strength. The importance of digital transformation on business models includes:
Increase customer experience
Research shows that 35% of business executives say digital transformation helps them better meet customer expectations and improve operational efficiency (40%). Of these, 38% of them plan to invest more in technology to turn it into a competitive advantage over competitors in the market. Thus, by building a strong digital transformation strategy, businesses can also enhance customer experience, motivating them to be loyal to the brand.
Digital technology helps automate manual, time-consuming and costly processes. For example, CRM systems automate sales and customer care processes, ERP systems automate accounting and finance processes,...
Long-term employee engagement
Digital transformation contributes to promoting sustainable relationships between businesses and employees. Digital transformation opens up many opportunities for employees to choose more flexible ways of working. They can work in the office or remotely from home, or even combine both methods. Furthermore, implementing digital transformation in your business improves your employees' work experience by providing them with new tools and technology to do. As a result, employees have stronger motivation to maintain long-term commitment.
Product digitization is the process of using digital technology to create new products or improve existing products to better meet customer needs and compete strongly in the global market. This is an important stage in digital transformation for businesses, helping to enhance operational performance. By applying digital applications, businesses can pioneer in applying technology and create a powerful infrastructure to quickly adapt to changes in social needs.
The role of digital transformation in business
See Details: Benefits of digital transformation in businesses
Current status of digital transformation in Vietnamese businesses
Currently, digital transformation is a strong development trend in Vietnam and an urgent issue of special concern to the Government and state. This process is covering all areas of life. From small businesses to large corporations, everyone is paying attention and investing in information technology to improve production and business processes, improve product and service quality as well as increase reliability. Customer trust in your brand.
Industries, especially the manufacturing industry, are shifting from traditional manufacturing to more modern manufacturing technologies such as automation, robotization and IoT (Internet of Things). Many businesses are also shifting from traditional business models to online business models by building websites, applications and other e-commerce channels to reach more customers.
In addition, according to 2022 statistics of the Ministry of Planning and Investment in collaboration with the USAID Link SME Project, the program "Supporting businesses in digital transformation in the period 2021-2025" has been implemented. The survey on digital transformation needs and technology solutions based on the evaluation results of 1,300 businesses specifically pointed out the following:
- New group of businesses participating in digital transformation: 57% looking for online marketing solutions; 53.7% have a need for internal working solutions, 43% look for electronic transaction solutions and 39.6% need solutions for network and data infrastructure.
- Group of businesses in the process of digital transformation: Businesses have needs for data analysis and smart reporting (63.5%), Customer system management and Sales channel management (60.7% ) along with the need for solutions on Enterprise Resource Planning System (57.8%) and Data Security (50.2%).
In addition, small and medium-sized enterprises are still not fully aware of the role of digital transformation. Besides, barriers such as lack of human resources, information technology platform... make the digital transformation of small and medium enterprises still difficult.
Opportunities & challenges when digitally transforming businesses
According to a survey by the Vietnam Confederation of Commerce and Industry (VCCI), up to 90% of businesses participating in the survey expressed that they have not been successful in implementing the digital transformation process. This shows that digital transformation still faces many difficulties and challenges for businesses. Many businesses have fallen into the "digital transformation trap" by applying a piece of technology and mistakenly thinking that the transformation process has been completed. Only a few businesses have reached true stage 3 of digital transformation, which is the stage of business model transformation.
Furthermore, the impact of digital transformation on each business, industry, and field is very different. For example, a business operating in the real estate sector may be less affected by digital transformation than a business in the manufacturing industry. Digital transformation in businesses is also gradually re-establishing the concept of "big fish eating small fish" to "fast fish eating slow fish". In digital transformation, businesses that move quickly will have more opportunities and competitive advantages.
Opportunities & challenges in digital transformation
- Enhance competitiveness: Digital transformation allows businesses to increase competition. By applying digital technology, businesses can easily create new products/services, improve customer experience, improve existing business processes, and increase competitive advantage.
- Create more value: Allows businesses to create better value products/services by analyzing customer data, collecting information quickly through technologies such as artificial intelligence, Internet of Things (IoT), blockchain.
- Increase efficiency: Digital transformation in business contributes to the application of modern digital technologies in production and work, automating processes, improving work efficiency for employees and saving maximum time.
- Investment costs: Digital transformation requires businesses to make huge financial investments to build technical infrastructure and deploy new technologies. Not to mention, the cost of training employees for digital transformation or the cost of purchasing equipment and software are also a big challenge for small and medium-sized businesses.
- Cultural change in businesses: Changing the organizational model from traditional to digital technology can cause a lot of turmoil. Therefore, leaders and employees will have to face a change in corporate culture after digital transformation.
- Security and risk management: Applying digital technology to business activities poses challenges in information security and risk management for businesses. Organizations need to ensure data systems are secure and comply with regulations related to customer information security policies.
- Lack of human resources: Digitally transforming businesses requires a team of experts and employees with skills and knowledge of new technology. This can cause certain challenges in selecting and retaining talent.
See More: Where does digital transformation start?
Digital transformation solutions businesses need to implement
To carry out digital transformation successfully, businesses need to find solutions to carry out digital transformation in the most comprehensive and effective way.
Applying technology to digital transformation in businesses
Digital transformation is the use of technology in businesses' business activities. To do this, businesses need in-depth knowledge of technology. Here are the top 6 digital transformation applications businesses should apply:
The digital transformation trend with 5G technology allows business users to experience high-speed and low-latency internet connection. There are a number of areas that should prioritize immediate application of 5G technology such as manufacturing, agriculture, health care, public transportation, self-driving cars, utilities and energy, smart cities and buildings, multimedia communications,…
Now, instead of having to use traditional physical connection methods, businesses can apply 5G in all stages of their management and operations. For example, businesses can experience enhanced mobile bandwidth that allows them to send and receive high-definition content or video in real time. In addition, 5G technology also allows users to have more vivid, quality entertainment experiences such as virtual reality (VR) and cloud gaming.
Cloud Computing has the features of storing, maintaining, managing, analyzing, and securing data by exploiting servers via the Internet. With Cloud computing, businesses can test and develop applications, websites, operate big data, and easily share data through platforms such as Google Drive, Dropbox... Thereby, businesses can Streamline business and operational processes, optimize costs and improve customer experience.
In addition, one of the most interesting digital transformation trends in recent years is distributed cloud platforms. Experts say that distributed cloud is a new generation of "cloud computing" innovation. This is an innovation that will bring more benefits to businesses. Typically: Expanded and flexible public cloud applications, improved cloud management capabilities, easier compliance with localization regulations,...
Smart search with AI
AI smart search is built on state-of-the-art AI technology, allowing for accurate search results to be displayed and a personalized experience for users. This technology allows users to extract information from any potential data source.
Besides, smart search with AI also helps employees save a large amount of working time while still providing high search efficiency in both structured and unstructured data formats.
Use artificial intelligence and Machine Learning
Artificial Intelligence and Machine Learning are considered one of the most important digital transformation trends in the current period. With artificial intelligence, this technology helps businesses analyze and make more effective business decisions by providing information about customer behavior, desires and demographic characteristics. With Machine Learning, from collected data, businesses will easily create personalized experiences for all customers.
Robotic process automation - RPA
Currently, many businesses have applied robotic process automation (RPA), machine learning and other superior technologies. This is one of the major technologies contributing to the digital transformation of businesses in 2021. The benefit of robot applications is to help improve productivity as well as increase business efficiency in organizations and businesses.
Many large businesses in Vietnam have applied Robots in fields such as logistics, medicine, engineering,...
Internet of Things (IOT)
IoT is a famous digital transformation application with the purpose of connecting and exchanging data between physical objects through the Internet network. With IoT, the process of collecting, analyzing, and processing data is made more efficient. In addition, thanks to IoT, business operational efficiency increases and customer experience is enhanced. From there, businesses have more competitive advantages in the market.
Application of digital transformation in businesses
Building human resources for digital transformation
Human resources are considered a core factor in the digital transformation process of businesses. Therefore, the strategy of developing human resources with sufficient knowledge and skills to use new technology is a priority for long-term development. First of all, businesses need to build training programs to improve the quality of available human resources, while attaching importance to recruiting, attracting and retaining future talent.
In addition, a new digital transformation trend that has recently emerged is data democratization. Data democratization not only benefits individuals and businesses but also benefits partners and society. The solution allows proactive search and analysis of data, giving all administrators and employees access to data. This helps businesses make good decisions early and improves cooperation between departments.
Recruiting personnel with knowledge and skills about digital transformation
Deploying financial solutions during the digital transformation process
Implementing digital transformation in businesses is a powerful transformation process, with great challenges and not easy for leaders. Digital transformation requires changes from thinking, awareness, human resources, infrastructure, strategy to technology solutions... Therefore, the amount of investment capital is not small. However, the reality is that digital transformation is not always guaranteed to be effective, and even creates difficulties for businesses. Therefore, leaders need to deploy more financial investment solutions during the digital transformation process for businesses.
In addition, building strong connections and close cooperation with foreign direct investment (FDI) enterprises and developing enterprises in advanced countries is extremely necessary. This is to update new standards and techniques, calling for investment. Furthermore, Vietnamese businesses can also access the latest technologies and methods.
Digital transformation solutions increase the overall experience
This trend refers to all activities aimed at enhancing customer experience, user experience, employee experience and multi-touch experience across multiple touchpoints. Customer experience will be unified and consistent thanks to the combination of all channels such as:
- Digital channels (Apps and websites)
- Physical channels (Retail stores and customer care centers)
The goal of this solution is to increase customer satisfaction, loyalty and advocacy as well as employee confidence through comprehensive management of the experience of all parties involved in the sales process.
To do this, businesses need to exploit and deeply research customer needs. Businesses should also use new technologies such as AI and AR virtual reality interactive technology to personalize products and services.
The solution increases the overall experience
Build a customer data platform
CDP (or customer data platform) is a term used to refer to software used to create a centralized customer database. CDP is applied by many businesses and has many advantages. Specifically, CDP not only has the function of providing businesses with a close-up view of customers, but also helps make customer data management more scientific, private and secure.
Today, businesses increasingly focus all resources on operations and income management as well as activating customer data storage. This will mean that CDP will continue to play a very important role in the digital transformation process at many businesses.
Everything as a Service (XaaS)
XaaS is a digital transformation trend that allows effective combinations of service, hardware and software solutions. The reason why XaaS is predicted to be a strong digital transformation trend in the near future is because this model brings superior advantages in terms of flexibility and high scalability.
XaaS allows businesses to diversify remote access and cloud computing services such as:
- Platform as a Service (PaaS)
- Software as a Service (SaaS)
- Infrastructure as a Service (IaaS)
- Network as a Service (NaaS)
- Communication as a Service (CaaS)
Everything as a Service (XaaS)
Top three best digital transformation solutions for businesses
Viindoo digital transformation solution
Viindoo digital transformation solutions provide a full range of platforms, software, digital transformation tools, and digital transformation consulting services. Viindoo digital transformation software is optimized to suit the business situation and unique needs of businesses in Vietnam. Viindoo comprehensive business digital transformation application helps your organization quickly digitalize work and at the same time increase performance in all aspects of business operations.
Viindoo's highlight is the ability to connect parts of the business into a complete system, bringing outstanding benefits. Specifically, the advantages of Viindoo's enterprise digital transformation solution:
- Comprehensive combination and expansion: The software supports businesses to expand and install more utilities to support work management. Not only does it support integration with other software in the same system, Viindoo can also combine with other software to create the most complete ecosystem.
- Minimize operating manpower: Viindoo provides consulting services on digital transformation solutions, guides implementation plans, and if businesses need, can secure information and use it permanently.
- Reasonable cost: All businesses from small to large scale can try and buy the software at an affordable price. Viindoo will be charged monthly based on the actual number of users.
- Support for multi-platform management: Cloud computing is an integrated form that helps managers easily grasp the situation of the business, allowing remote use of software.
Viindoo smart and comprehensive digital transformation solution
WEONE automation software solution
WEONE is an enterprise automation system originating from the company FSI. This system was built with the goal of providing comprehensive digital transformation solutions for businesses. WEONE helps businesses optimize management and improve collective performance, while solving difficulties in organizational operations.
Outstanding advantages of the software include:
- Integrating management and operations on a single system, helps create unity in operations.
- Automate processes and procedures for each specific department.
- Build a separate digital library for businesses, helping to manage information effectively and securely according to security standards.
- The main interface of the software is scientifically designed, easy to use even for new users.
WEONE helps businesses automate work processes
DocEye process digitalization solution
Like WEONE, DOCEYE is a technology solution that FSI has researched and developed. This solution was honored with Vietnam's Digital Transformation award in 2019, DOCEYE has served more than 1000 customers. DocEye's partners are many big names such as Honda, MB Bank, Viettel...
Advantages of DOCEYE enterprise digital transformation solution:
- Using leading technology from FSI - a pioneering digital transformation solution provider.
- Flexibility with customization to suit businesses of all budgets.
- Change flexibly to meet managers' needs.
- Has been honored through many quality awards in the field of digital transformation and met ISO standards.
- Providing optimal comprehensive solutions for businesses
Smart process digitalization solution - DocEye
How much does digital transformation in businesses cost?
The average cost for a comprehensive digital transformation solution for businesses accounts for 2 - 3% of total revenue or budget. However, this fee may vary depending on the country and industry. To determine the appropriate funding level for digital transformation, businesses need to consider many factors such as: Scale and stage of digital transformation, security and cybersecurity needs, strategies and priorities. of business…
In particular, determining the appropriate funding level for digital transformation needs to be based on the specific situation of the organization, finances and transformation goals. This will ensure a balance between financial viability and the long-term benefits of digital transformation.
Mistakes to avoid when digitally transforming businesses
Inability to execute
When you come up with ideas about digital transformation in business but cannot execute them, failure will be very high. Even if you have prepared carefully, but cannot apply it to the real market and cannot find customers, in the end, the business will return to the traditional way of doing things as before.
Employees disagree & protest
When company employees do not clearly understand why we need to carry out digital transformation and the benefits it brings, they will begin to object. To avoid this, businesses need to ensure that all employees understand the motivations behind driving digital transformation and how they can help both the business and our customers.
Estimated lack of costs
To carry out the digital transformation process, businesses need to spend a large amount of investment because this is recreating the entire business structure. Therefore, businesses need to ensure that they have enough financial resources to meet the goals and expectations they have set.
Delay is often seen in businesses that are just starting to transform digitally because they still cling to old thinking. They perceive digital transformation as a simplified process and just the use of new technology, while it has long been practiced by other businesses.
To change the above situation, managers need to adjust their way of thinking and perceiving problems. From there, businesses need to gradually change the way they operate, manage and produce through the use of digital technologies.
The process of business digital transformation requires time and prolonged commitment. Therefore, to ensure success, businesses need to carefully prepare and make long-term plans to guide and communicate the transition process and time to staff.
Skills not met
If the personnel in the business lack the necessary knowledge and skills for digital transformation, the possibility of failure is very high. Therefore, training and guidance have a great influence on improving employee skills, including specific areas that the company needs to develop during the digital transformation process.
Above, Viindoo has compiled complete information about the current status, trends and applications of digital transformation in businesses. Viindoo believes that digital transformation is a long journey that businesses must learn to adapt to compete well in today's volatile technology world. If you are interested in digital transformation solutions for businesses, please contact Viindoo immediately via hotline 0225 730 9838 for answers.