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WHAT IS DIGITAL TRANSFORMATION? THE ROLE OF DIGITAL TRANSFORMATION IN VIETNAM

We’ve all heard about the concept of “digital transformation” in today’s business world. That is a global trend and Vietnam is no exception, also the top target of our country’s technology enterprises. In addition, the Vietnamese Government also paid special attention to digital transformation in the industrial revolution 4.0 and assigned the Ministry of Information and Communications to develop the National Digital Transformation Project and submit it to the Prime Minister. right in 2019. So what is digital transformation, how important is its role, this article of Tech Town will help your business clarify.

What is digital transformation?

Digital transformation is the application of digital technology to business activities such as business, human resource management, production, etc. to make those jobs more efficient and bring better results. much better value for the business. Above all, this is a common global trend in the 4.0 era, it helps businesses adapt and keep up with the strong development of technology as well as survive in the market.

 

Specifically, according to Microsoft, digital transformation is a business innovation driven by the explosion of cloud technology (Cloud), artificial intelligence (AI) and the Internet of Things (IoT), providing ways to new to understand, manage and transform their business operations.

 

In Vietnam, digital transformation is often understood as the process of changing the traditional business model to a digital business model, applying new technologies to change the mode of operation, leadership, working process, etc. company culture.

 

Enterprise digital transformation is not only a successful application of a method or model, but a process of strategic change, with clear plans and goals.

The important role of digital transformation

Digital transformation will contribute to boosting labor productivity. Evidence from Microsoft’s research shows that, in 2017, the impact of digital transformation on labor productivity growth was about 15%, by 2020, this figure will be 21%.

 

More specifically, we will analyze all aspects:

For the government

Turning the argument of using data and digital technology systems to optimize the user experience for public services provided by the State. Digital transformation also changes operations, models and modes of operation of state agencies.

 

Digital transformation of state agencies focuses on developing digital infrastructure to serve state agencies in a centralized and smooth manner. To build an open data system that is easy to access and use, to increase publicity, transparency, and to prevent corruption. Along with that is to provide public services in the form of online to help people experience quickly, accurately, without paper, thereby cutting costs effectively.

For Businesses

According to reports of reputable market research companies such as Gartner, IDC, digital transformation really brings many benefits to all activities of enterprises, from internal management, business management to research activities. , strategic planning, etc. But the most obvious benefit of digital transformation for businesses is reducing costs through optimizing operations, reaching more customers and making faster and more accurate decisions. . Not only that, these things also help businesses increase their competitiveness in the market.

 

Taking advantage of digital platforms will help businesses improve many aspects and reach the final 5 goals of digital transformation, which are:

  •     Increase the speed of bringing products to market.
  •     Enhance competitive advantage.
  •     Drive revenue growth.
  •     Increase employee productivity.
  •     Expand your ability to attract and retain customers.

For consumers

Digital transformation is gradually affecting consumers’ lives as they experience the services provided by the State and businesses. Everything is done conveniently and quickly, such as banking transactions, shopping, … can be done online without having to move.

 

The two outbreaks of the Covid-19 pandemic also helped Vietnamese consumers realize the importance of digital transformation, because during the time of social isolation, consumers are forced to limit going out, all transactions, Learning, meetings and work are all done online. It also requires users to have internet access tools to be able to meet their work needs.

The situation of digital transformation in the world and in Vietnam

Digital transformation is increasingly changing the perception of leaders – who determine the direction and ability to successfully transform an organization. The government apparatus of many countries, after realizing the importance of digital transformation in increasing operational efficiency and ensuring national security, immediately entered a new “race” in the application of digital transformation. number conversion.

 

In the past, old-fashioned technologies were only used by large companies with a lot of financial potential to have access to the technology. Therefore they are always leading the market, at least by a few steps. But in the present time, startups or small and medium-sized companies can access digital technology, which is not inferior to large companies.

 

According to Microsoft’s 2017 research in the Asia Pacific region, in 2017, the impact of digital transformation on GDP is about 6%, in 2019 it is 25% and in 2021 it will be 60%. According to McKinsey’s research results, in 2025, the impact of digital transformation on GDP of the US is about 25%, with Brazil it is 35%, and in European countries it is about 36%.

 

As we can see, the speed of digital transformation in regions and countries is different, depending on the level of technology development and the speed of business model transformation. In which, Europe is considered the region with the fastest digital conversion speed, followed by the US and Asian countries.

 

In Vietnam, digital transformation models are also creating useful services for the people and effectively utilizing the idle resources of the society. However, they also create contradictions and fundamental changes with the traditional business model. New technology strengths are helping startups gain an edge over traditional industry sectors. This trend creates important changes in industry value chains as well as global supply chains. The context of the current digital economy requires traditional organizations, businesses and models to make drastic changes in order to continue to exist and develop.

 

With a population of 96 million people and the second fastest growing economy in the region, a dynamic young population and the ability to quickly access high technology, experts assess that Vietnam has great potential. big in digital transformation. These are powerful opportunities for Vietnamese businesses to make a breakthrough in the market thanks to digital transformation.

 

Hopefully the information Tech Town brings above will be useful for businesses. If you are planning to implement digital transformation but don’t know where to start, Tech Town is here to help.

 

Tech Town is a technology company from Vietnam, with representative offices in the United States, Japan, Canada, the Netherlands,… As a reputable digital transformation consultant, specializing in implementing projects develop custom software with the application of the most modern technology techniques such as AI, Machine Learning, Blockchain… For more than 4 years of operation, Tech Town has become a trusted digital transformation consulting partner. by startups and enterprises from many countries around the world such as the US, Canada, the Netherlands, Japan, the UK and other developed countries.

 

Contact us if your business has any technological challenges!

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