Businesses prepare for digital transformation

After obtaining a doctorate in financial investment & logistics in the UK, Duy returned to Vietnam in early 2017 and engaged in the management of his family-run business, comprising two yarn spinning mills. 

The first six months were the most difficult time.

“I found that the data of the company was in a mess. I spent six months to find what was behind this and tried a solution to restructure the data,” Duy said, adding that this might be the common problem of SMEs.

After ‘cleaning’ and restructuring the data, the company now can easily create reports, which according to Duy, are fast and transparent for the company and its partners.

Later, the company established a new enterprise. Duy persuaded the management board of the enterprise to set up a system which connects all machines via internet. 

Not only collecting information on machines’ performance, speed and quality, he also installed sensors to watch the vibration and temperature of every machine.

It once happened with his company that a small part of the production line caught fire, but it was impossible to find because the production line was too large. That is why Duy was very cautious with the new enterprise.

The Thanh Cong Textile & Garment Company, after five years of utilizing ERP (Enterprise resource planning), has decided to set up a team in charge of exploiting data.

“The task of our team is exploiting & analyzing data to get significant information that helps CEO make reasonable decisions, and striving for new dying factories utilizing AI,” a representative of Thanh Cong said. “However, we still wonder what we need to learn and what we need to develop to reach that goal.”

More and more SMEs want to modernize their factories with digital transformation, but they don’t know what to do.

Automation is just a part of the factory modernization process. More importantly, it is necessary to connect all the systems to collect and analyze data.

“4.0 Revolution was invented by Germans and not everyone agreed with the name. However, digital transformation in enterprises is recognized by everyone,” an expert said.

The digital transformation consists of five components: cloud computing, big data, IoT, AI and data science.

According to Vu Kim Hanh, chair of the Vietnam High Quality Product Business Association, there are three problems enterprises think about when carrying out  digital transformation. First, they fear the process will cost a lot of money. Second, they worry about information security. And third, they are afraid they don’t have qualified workers.

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