Digital Transformation Services In Vietnam in 2020
Driven by the introduction of disruptive and emerging technologies, as well as changes in the ever-evolving consumer demand and expectations, many companies are pouring significant investment in digitizing their processes and innovating their businesses to stay ahead and relevant in the new digital era.
Like the rest of the world, the growing economy of Vietnam is undergoing a digital transformation, increasing keeping up with other nations in the South-East Asia region - capturing the attention of foreign companies wishing to expand.
However, the term digital transformation can be new and misunderstood sometimes, which causes challenges for business organizations to carry out digital transformation successfully.
At a minimum, in terms of technology, any digital transformation should consider the following aspects:
- Strategy — taking into consideration customer experience, processes, and technology, in a long-term vision.
- Agility and Speed.
- Interoperability between Softwares products, Systems and Environment - through implementation and integrations
- Advanced Analytics and Insights, Machine Learning
- Customer-centric product design and personalizations;
In this article, let’s take a look at Digital Transformation in Vietnam in detail. In order to understand more about what digital transformation really involves as well as its potential benefits for business organizations in the Vietnamese context.
Why is Digital transformation Essential to Businesses?
Digital transformation is essential to all businesses, regardless of size and industry. Digital transformation describes the practice of business organizations using technology to optimize their current processes, and enhancing customer experience - in order to stay competitive and relevant in the new customer-centric economy.
Yet, digital transformation is more than just simply installing new software or moving to the cloud - digital transformation, at its core, is all about business, and requires business expertise and involvement from business users.
Even though digital transformation is driven by ever-changing customer expectations in a new business landscape that is highly connected and digital savvy, simply executing transformation with just technology alone is inadequate. Digital transformation requires the right mix of business and digital expertise to make the whole endeavor a success.
Digital transformation should be an implementation of a long-term strategy to achieve transformation goals, by leveraging technologies including SMAC (social, Mobile, Analytics, and Cloud), as well as AI, Machine Learning, RPA, Big Data, Advanced Analytics, and other digital tools. Before starting digital transformation, it’s important to think about the key business problems which can be solved by using advanced technologies, to achieve business goals.
Modernizing and optimizing existing systems
By modernizing the legacy application systems so that the entire software systems portfolio can work together, interoperability, rather in silos, enable business organizations to have one single source of data truth in one place, avoiding the costly mistakes of making decisions based on incorrect and incomplete data information.
Digital transformation is expensive and can be risky sometimes. However, its benefits significantly outweigh the risks, due to the followings:
- Automation on a range of menial tasks such as sales order processing, invoice generating, HR payroll, and new employees on-boarding, etc. can help free up a large chunk of time for employees to focus on their important tasks.
- Leverage vast amounts of business data to execute advanced analytics to help businesses to accurately forecast customers expectations and business demands, for better and more effective operations.
- Improve mobility and remote works as well as collaboration between departments, through integrated software systems.
- Optimize various business processes by applying disruptive and emerging technologies.
And many more.
More importantly, in the new digital economy where customer-centric is of utmost importance, digital transformation allows and helps businesses to accomplish the ultimate goal of consistently providing a positive customer experience, which can make or break business. Additionally, digital initiatives also help to improve agility and speed for organizations to stay ahead of the competition.
Current State of Digital transformation services in Vietnam
Going along with the trends of the global market, the Vietnamese government, as well as other large corporates and SMEs (small-medium enterprises) are playing the active roles of adopting and implementing digital transformation initiatives across their organizations, moving towards a new digital economy in the near future.
When it comes to digital transformation, similar to any other international business organization, one of the biggest problems businesses organizations in Vietnam encounter is not having the right strategy in place, in order to successfully implement the technologies in an effective way. On the upside, the Vietnamese government also commits to provide the best conditions, foundations and environment for enterprises to develop in the digitalization era.
Why choose Vietnam for Digital Transformation Services?
According to Vietnamnet.vn, Vietnam’s rapid digital transformation has been attracting huge interests in foreign Tech powerhouse, including Ericsson, and Qualcomm, which are targeting the Vietnamese market.
In addition, according to another press release by the Ministry of Information and Communication, the digital transformation process in Vietnam is less risky and simpler compared to other countries.
Vietnam also has great advantages with a large, young professionals workforce who are well-trained in IT at university, providing a high-quality source of the labor force in a range of technologies and data science required for digital transformation.
Digital transformation is taking place in Vietnam across many industries, from banking and insurance to manufacturing, finance, retails, healthcare, and education, and many more.
Here are some of the key areas for digital transformation in Vietnam
Manufacturing is a critical business sector in Vietnam and represents 16% of the country's GDP (Year 2018 data, according to Worldbank). It is one key industry that is ready and prime for transformation. In particular, businesses in manufacturing can achieve many benefits with enterprise ERP solutions streamlining its processes, for better production planning, and management of inventory, as well as logistics route optimization and many more.
Banking and insurance
There is an increasing acceptance of the new culture of digital banking and fintech in Vietnam, especially among the young, tech-savvy people. A large percentage of Vietnam's population frequently open their account and transact with online banking through their mobile apps, and thus, making banking and insurance in Vietnam prime for digital transformation.
Many banking and insurance manual processes can now be optimized and automated by leveraging technologies, including:
- Acquire new customers and opening of banking and insurance products through the mobile market.
- Automate a wide variety of tasks such as KYC checks, AML, and ID verifications by using advanced technologies such as RPA and Artificial Intelligence.
- Gain hidden insights through advanced data analytics
- Improve frauds checking with machine learning.
All the above benefits can translate into an overall increase in productivity, ultimately free up employees time to focus on their core competencies.
How to kick-start the digital transformation of your company?
For many business organizations, digital transformation is the key to compete and stay alive in the new digital economy. Yet, digital transformations are challenging and often fail, due to lack of proper planning and understanding.
Here are some of the key aspects which businesses should pay attention to, in order to increase the likelihood of success for digital transformation:
Buy-in from the management team
Digital transformation is a large scale enterprise project which will be applied across businesses. Thus, digital transformations require buy-in from various stakeholders, including the CTO (Chief Technology Officer) who is in charge of the technology aspect, and other C-suites executives that directly manage and oversee all the business processes and operations.
Adapt to the change and Re-define or Create new Roles
Digital transformation does not mean to digitize all business processes and eliminate physical papers in its entirety. The hard-copy document, after all, is still necessary and plays an important role in daily business operations. Overly digital transforming can lead to operational issues that can be unmanageable.
Furthermore, since digital transformation affects operations across the organization, changes will definitely happen. Specifically, existing tasks and roles will change, and thus, companies will have to change along with it, by re-defining roles what their employees will do, in order to effectively and efficiently in the new market.
Well-understood planning and objectives
Again, as digital transformation being a brand new practice and introducing new initiatives affecting the entire businesses, many organizations are still not able to grasp the understanding of digital transformation, especially about what technology is here to do, and thus they aren’t planning strategically, resulting in their goals not met and abandonment of projects.
Even though digital transformation is a business project on the whole, it’s still heavily involved technology and therefore, requires an understanding from everyone involved. Every employee needs to understand what they’re doing and align it with the overall digital transformation goal.
The important part of the process is to develop a firm digital transformation strategy that can guide your team intelligently throughout the process.
TP&P Technology offers IT Consulting Services with a focus on Digital Transformation helping businesses develop a tech-driven digital strategy, and enhance operations by optimizing your applications portfolio.
With over 16 years of accumulated experience, TP&P Technology has been assisting companies of different sizes and industries to improve and modernize their IT infrastructure and application systems. We provide an effective approach that delivers maximum benefits to business in a reasonable amount of time.
Our team of specialists can assist you at any stage of your digital transformation journey, with thorough planning and effective execution of the outlined roadmap. Get in touch today!