1. Digital Transformation Defined
The concept of Digital Transformation is understood in many contexts and there are many definitions surrounding this concept. According to Garner, “Digital Transformation is the application of advances in science and technology to improve business models, helping businesses increase sales and growth.”
Meanwhile, Microsoft explains that Digital Transformation is about “bringing together people, data, and processes disrupting technology to transform your company and create value for your customers.”
Digital transformation is an inevitable trend of the 4.0 tech era
1.1 Benefits of Digital Transformation
Digital Transformation promises to completely change the landscape, bringing many benefits to businesses such as cutting costs, stabilizing organizations & operations, and innovating ways of approaching consumers to market their products or services.
More importantly, decision-making processes are optimized, strategies and plans are built on top of stored and updated data to create more value for businesses and customers.
Thereby, enterprises can increase business efficiency and strengthen their competitive position in the market.
1.2 Challenges of Digital Transformation in Vietnam
The Digital Transformation program in Vietnam to be launched in 2020 is based on three main aspects:
- Digital government
- Digital economy
- Digital society
Based on data from the Vietnam Chamber of Commerce and Industry (VCCI), as of December 31, 2019, Vietnam has 758,610 operating enterprises, of which small and medium-sized enterprises (SMEs) account for more than 95%.
According to Cisco Systems, Inc. (an American multinational technology corporation), the digitalization of small and medium-sized enterprises (SMEs) in Vietnam is expected to contribute $24-30 billion to the country's GDP by the end of the year 2024.
However, over 80% of machinery imported by Vietnamese businesses is old technology from the 1980s and 1990s, and most SMEs still face many barriers to Digital Transformation.
In addition, most companies lack Digital Transformation consulting and technology adoption strategies and are slow to react to market changes. This makes Vietnam's SMEs lag behind some Southeast Asian countries such as Singapore, the Philippines, and Indonesia in this area.
2. Digital Transformation Direction for Enterprises
To effectively implement Digital Transformation in Vietnam, businesses need to better manage their resources, including human resources, facilities, technology, and improve work processes.
In the 4.0 technology era, businesses must always update new tech trends, of which the most important is the trend of building a Customer Data Management Platform. These customer-centric and innovative solutions market products and services to target audiences.
Building a tech foundation for customer data management in the Digital Transformation era
By leveraging cutting-edge data management technology platforms, such as the Digital Experience Platform (previously CRM or ERP), your business can collect omnichannel customer data (websites, surveys, apps, etc.) and connect it all in one place.
A continuous stream of data that’s stored, recorded, responded to, and updated ensures your business runs smoothly. Efficiency is dramatically improved and your customers get a better experience. You’ll strengthen your advantage and compete on a high-tech platform while saving costs and increasing revenue.
3. Summing-up
As this Digital Transformation surge takes hold in Vietnam, the businesses that will beat the competition and prosper will be the ones who are timely, can access & analyze more information, possess advanced technology to increase operational efficiency, improve products/services & make breakthroughs in the approach, capturing the hearts of customers.
If you’re adjusting your business strategy, looking for a Digital Transformation Consultant to build a sustainable competitive advantage to stay ahead of your competitors, we’d love to team up with your business.
We work with businesses in Vietnam to ensure they are up to date with the latest technology trends. We analyze websites and other platforms, assess areas for improvement, and decide on optimal solutions.
Become a market leader, contact redWEB now for a free website analysis.
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