Digital transformation has a failure rate of 70% but without digital transformation, failure is 100%.
Performing digital transformation has probably been the most difficult decision for Mr. Nguyen Doan Thang, 77, and CEO of Rang Dong, a large joint stock company. Thang said if Rang Dong maintains the old model, its annual growth rate will be about 5-10% per year. Only with digital transformation can the company obtain a two-digit growth rate. In fact, Rang Dong has recorded a high growth rate thanks to digital transformation, with over 40% in the first quarter of 2021.
Nguyen Hoang Ngan, Vice Chairman and General Director of Binh Minh Plastic Joint Stock Company, said that the Covid-19 pandemic has negatively affected Vietnamese enterprises in general but it has helped accelerate digital transformation.
In his company, all activities related to customers have been conducted online and managed by software. Remote working is also popular among the company employees. Thanks to digital transformation, Binh Minh Plastics’ revenue increased by 8%, profit by 24%, and market share by 2% last year.
According to the United Nations Development Program (UNDP)’s survey of nearly 2,700 businesses related to digital transformation, up to 82% of them have taken their first steps in this field. Meanwhile, a survey by the Hanoi Association of Small and Medium Enterprises shows that about one-third of businesses are slow in digital transformation.
Digital transformation is not a road paved with roses. General Director of Rang Dong Nguyen Doan Thang said that the difficulty with digital transformation is incalculable. Meanwhile, the models of digital transformation are also very diverse so businesses have to struggle to find the right thing for them. If they choose the wrong one, the consequences will be dire.
"The first you need to overcome is the fear of failure," Thang said. Another difficulty is choosing between partial or full transformation. It is a decision that requires great determination, according to Thang.
Vu Anh Tu, FPT Technology Director, said that the priority of digital transformation of businesses during the pandemic is to ensure that employees are safe and business activities are not interrupted. To implement digital transformation, it takes great effort and determination from business leaders.
New digital race
Along with the trend of digital transformation among local businesses, the market for services in this field is thriving. There are many platforms for businesses to deploy applications within a month. The most important issue is the determination of businesses to find the right solutions.
Recently, the FPT Group announced its investment in Base.vn, synergizing the power to accelerate digital transformation for 800,000 businesses. FPT IS (FPS) has implemented a VND0 support package to assist businesses to operate digital transactions with solutions including e-invoices, e-contracts, data extraction, input invoice management and digital signatures.
Another local company, FastWork, has launched a digital transformation application, which focuses on in-depth technology solutions, solving specific problems for each business with the "all in one" model that will provide the comprehensive digital transformation. Meanwhile, NextPay of NextTech Group has introduced the Next360 digital transformation ecosystem for small, medium and micro enterprises.
From the perspective of a technology company, Nguyen Van Khoa, General Director of FPT, said that digital transformation applications would help businesses manage cash flow, and maintain communication with customers in the context of the Covid-19 epidemic.
Ms. Lam Thi Kieu Oanh, founder of TBC, said: "For small and medium-sized enterprises like us, the first thing we need to do is clarify the goals of the business. What is the management problem that we want to solve? The next is the human factor when using these platforms because they have to know what benefits the applications will bring to the employees."
During the Covid-19 pandemic, digital transformation is an effective way to help businesses increase their resistance to overcome immediate difficulties and develop sustainably and effectively. This is no longer an option but the only way for businesses to overcome difficulties in the current period.
The digital economy in Vietnam accounts for about 8.2% of GDP. The development potential of the Internet and digital economy components is still quite large.