What is digital conversion?


Digital transformation has become all the rage in Vietnam over the past few months, but do you know exactly what that entails? Considered the key to improving business processes, increasing productivity and generally modernizing operations, this transformation clearly has strengths. Especially in the context of Vietnam as it undergoes profound economic transformations, it is important to consider different ways to strategically prepare for transformation. However, the term is used used in a variety of ways, often promising what this strategy cannot deliver. More disturbingly, this is often seen as a great technology-powered solution that can’t go wrong! Learn more about what digital transformation strategy really does and our reflections on it. the possibility of this strategy in the Vietnamese context.

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Table of contents

Section 1

Digital transformation to enhance your business strategy with IT solutions

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First of all, digital transformation is a business project, with business goals and not an IT-focused project. Digital transformation aims to leverage a company’s digital assets to enable business goals. Therefore, it is essential to think about your business goals before starting a digital transformation project! In addition, digital transformation is not just about modernizing as everyone knows. Often times, digital transformation isn’t even technical! Performing digital transformation as an IT project is a surefire way to waste energy, time and money. More specifically, digital transformation is the implementation of a strategy to achieve transformation business goals, by implementing, integrating or optimizing digital tools. The different projects that make up this strategy can affect several aspects.

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Optimize existing tools

Integrate the IT environment so that all software works in harmony with each other, rather than isolated “islands”, avoiding costly repetitive tasks to transfer information from one software to another. Accelerate your business decisions by getting statistics from all activities, instead of waiting for human reports.

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Use better integrated IT tools to change non-IT operations

Detect redundancies and bottlenecks through KPIs that can be managed with IT tools and optimize processes Enable better efficiency by improving mobility and remote work by providing provides tools optimized for this type of work. Save time by limiting points of contact through online paperwork processes.

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Implement new IT solutions

Automate low value tasks with the help of IT: create invoices, manage orders, digitize paperwork…Deliver an online experience to your target customers, to reduce costs local papers

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More efficiency in existing processes

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Better analysis through tables

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IT environment suitable for business, no need to restrict business to IT limitation

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Lower cost

In the context of strong development of digital transformation, the Government of Vietnam and businesses are increasingly proactively grasping and actively participating in digital transformation activities. However, we are seeing the beginning of this move today. According to data from Enterprises, 76% of Vietnamese enterprises have not yet started digital transformation, 1.5 times larger than the world. The biggest problem for these businesses is not knowing where to start digital transformation and not finding a suitable strategy. The Vietnamese government is promoting the development of the digital economy through a series of regulatory mechanisms. According to Minister Mai Tien Dung, the Government is very drastic to create the best conditions, platform and environment for businesses to develop in the digital era.

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Strong government efforts in promoting digital transformation

The government’s decision to promote digital transformation in Vietnam is particularly well-suited to the country’s challenge and should be welcomed. Indeed, after years of industrialization, with low wages, the country was lifted out of poverty, reaching middle-income status. However, the economy needs to find new ways to thrive that don’t rely solely on competitive wages and increased productivity. These benefits can be achieved by new high-value products and services, but also new ways of producing existing products. All of these goals are at the core of digital transformation strategies. One of the most outstanding results demonstrating the determination of the business community is the establishment of the Vietnam Digital Transformation Alliance on August 8, 2019. The founding members of this alliance include big names in the field of digital transformation. IT in Vietnam such as FPT, Viettel, CMC, VNG and MobiFone. With a mission to inspire the entire society in digital transformation, they will proactively adopt digital transformation and create platforms, infrastructure and services to help businesses and society transform themselves. change number. Digital transformation appears in Vietnam in all fields, from commerce, finance – banking to healthcare, education, tourism and transportation. Here are the key digital transformation areas:

The agricultural sector has known of the great gains in productivity over the past decades in Vietnam but has not yet capitalized on these through innovation. High costs if any process is delayed, agricultural agents can benefit greatly from digital transformation: reduced stocks, better yields from optimized statistics, data collection and combination data (atmospheric, GPS, etc.) to support decisions… Analytics intelligence and business intelligence can also help generate higher revenue crops depending on

Banking and insurance, which previously had complicated processes through multiple local agencies, are key to change through digital transformation. Some benefits can be achieved:

New products through growing mobile marketNew customer experiences through appsSmarter business through big data analytics Paperless processes and automation to boost productivity

For example, VPBank’s Timo is a great example of a successful digital transformation. VP Bank has reached new audiences, providing their traditional services thanks to IT solutions (digital banking, applications).

A rapidly growing industry, smart cities are taking place in large and medium-sized cities in Vietnam. Smart city is a natural digital transformation project, which aims to improve city life and services, mainly supported by digital solutions. Digital transformation can take the shape of an integrated overview of a city, with well-designed statistics. For example, for one project that has already been launched, Smart Dubai, the Dubai government office, has launched more than 130 projects with private and public actors to improve the city such as blockchain-based statistics, Paperless process, direct interface between supplier and government office, digitized ID. The Ho Chi Minh City government has announced in 2019 it will establish a legal framework to include AI solutions in their own smart city project. The Ministry of Science and Technology announced in 2019 that their goal is to include blockchain in its smart city projects, promoting promising blockchain-based startups, through the program “ Support the national innovative startup ecosystem by 2025.

With such a high-level business venture, it’s important to have a good plan in place before undertaking digital transformation. Indeed, more than 80% of digital transformations fail due to lack of planning and understanding on the part of the management team. Here are a few points to keep in mind while preparing for a digital transformation.

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Led by a strong management team

Again, digital transformation is an important business project. This needs to be led by teams of CEOs, CFOs, CMOs, not just CTOs! The CTO is solely responsible for implementing his or her technical components, allowing decisions to be made by the business teams. Don’t be afraid of the techniques as they will be a core part of your future business!

Be creative and not afraid of technology… by limits!

A good digital transformation won’t digitize everything! Such a decision goes against good business sense because it would incur unnecessary costs, delays and complications. Paper, after all, is also an IT tool and can be a very powerful tool used appropriately. Excessive digitization is a mistake made by companies around the world that leads to uncontrollable operational problems. For example, fully automated customer service makes customers more disengaged than older generations in Western markets.

Well-understood plans and goals

Since digital transformation is a new trend and affects the entire company, the stakeholders of the project itself do not clearly understand many of the definitions and goals of digital transformation. This leads to mismatched projects, overlooked goals, and misguided teams. It also takes time to properly prepare the business side of digital transformation, before undertaking IT projects from there. Most stakeholders do not have an IT background and may feel intimidated by the technical aspects. This fear is not necessary as they have the business aspects, the technical department is carried out by the IT teams. However, it’s important to make sure they accept the terms, goals, and planning, and not reject the entire project from the get-go. Here is a typical strategic layout used by Viettonkin to strategically plan digital transformation:

1Define a clear business strategy: existing strategy and target strategy.2Check your current IT environment3Set target IT environment4Concept ideas based on different priorities to achieve goals (gap analysis).5Choose one and detail specific projects to get there6Choose a time period: 2 to 4 years to achieve the goal

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