There is hardly a standard definition of what Digital Transformation is. Here we will give the definitions that are most universal, understandable and comprehensive
In short, “Digital transformation is the process by which people change the way of life, work, and production with digital technologies.” Digital transformation is the integration of digital technologies into all sector of a business/organization, leveraging technologies to fundamentally change the way it operates, its business model, and delivers new value to its Customers, as well as accelerate its operations. business action. Digital transformation is also cultural change of businesses, which requires businesses to constantly change, experiment and accept failures.
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1. Digitization ~ Digitization
Generates digital representations of physical entities/events. This is a concept people often confuse with digital transformation itself. Most Vietnamese enterprises are stopping at this step, ie digitizing their business operations. But this is also the most fundamental step to move on to the next steps.
2. Innovating the operating model ~ Creation
Change or create a new business and operating model
Comprehensive organizational transformation: thinking, leadership, culture… with a new operating model.
For digital transformation, digital infrastructure & digital platforms are needed
Digital infrastructure are the most basic and essential components required to function in the digital age. These 5 infrastructures include:
Digital equipment infrastructureData infrastructureApplication infrastructureLegal infrastructureHuman infrastructure
Digital platform: Simply put, this is the foundation on which everyone can build their solutions. There are two types of digital platforms:
Trading Platform (transaction platform). Those are tools like Amazon, Tiki, AirBnB, Grab…Innovation Platform (innovation platforms) are technological frameworks, common tools with which people can build their applications. For example, it is the platform of Microsoft, Amazon or Google. Summary of digital transformation steps
Step 1: Having the right awareness and thinking about digital transformation. For an organization, the top leadership’s awareness is a prerequisite, from which to transmit awareness, change mindset and aspiration to members.
Step 2: Build a digital transformation strategy and roadmap. Determine the current state and the state needed to define goals, develop a roadmap with reasonable stages and a plan to implement each stage with specific content.
Step 3: Building digital capacity, including equipment and data infrastructure, training digital human resources, building a culture of innovation in the organization with a new operating model…
Step 4: Identify key digital technologies in the industry and the platforms needed to support the transformation.
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Step 5: Identify new operating and business models.
Step 6: Do a full conversion with the results of the previous steps.
An example of digital transformation is the application of large-scale recruitment automation using technology. Instead of using traditional, highly fragmented tools such as Facebook, Google Sheet, Excel, etc., businesses can choose a highly synchronous platform that helps them handle a large volume of candidates, increasing the number of candidates. increase efficiency without sacrificing quality.
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Digital transformation is a long-term story. Some employees will find this process difficult. Regardless of whether they find it difficult to learn, adapt to new technology, or it is resistance to change, businesses need to identify their concerns with a specific, calculated plan. With the right training and coaching from all levels of management and leadership, those difficulties can be overcome. For the digital transformation process to be truly successful, only when it has vertical and horizontal consensus of the apparatus (department and leadership levels as well as employees) and sometimes even the Customer.