Digital transformation key to development for enterprises

The Covid-19 pandemic has accelerated the digital transformation of businesses in Vietnam but there are still many challenges to address in the process, experts told a Grant Thornton Vietnam online discussion entitled “Technology - The key to recovery and development” on October 28.

All business models, including traditional models, have been affected by the pandemic. It has changed consumption habits, working habits, and connections and communications. “Digital technology and enterprise information management systems play an important role in the recovery and development of each business in this period and in the future,” said Mr. Le Minh Thang, Deputy General Director of Grant Thornton Vietnam.

There have been many businesses rapidly promoting digital technology and applying the benefits it brings, he added, taking advantage of opportunities to overcome the difficulties and develop.

In banking and finance, digital transformation will help banks reduce waiting times at branches with online payment applications, thereby increasing efficiency and bolstering risk management. In manufacturing, digital transformation and the application of technology in production will make distributing goods more efficient. And in retail, it will help boost sales performance and diversify sales via online channels while offering a better customer experience.

Many businesses are still grappling with issues in digital transformation, however. Resources for the process remain limited at many domestic enterprises. Organizing and managing businesses has relied on traditional processes, so the move to digital can be problematic. When enterprises apply digital transformation, those operating processes will change and this will have some level of impact on the business.

Investment costs are also considered an obstacle for those wishing to proceed with digital transformation. “Through our surveys, when it comes to investment costs for the process, companies are quite hesitant because they don’t know whether their digital transformation will be successful or not,” said Mr. Le Minh Tien, Director of Consulting & Technology Solutions at Grant Thornton Vietnam.

Digital transformation is an extensive process and enterprises will not be able to finish it in just a short period of time. Each business therefore needs to focus on its industry and on digital transformation in prioritized fields. Mr. Tien suggested that businesses focus on customer care first. Manufacturing businesses, meanwhile, must know how to apply digital transformation in production to increase profits.

To prepare for digital transformation, businesses should start with small projects in the early stages. It is also essential for them to encourage participation within the business. Digital transformation can start anywhere, but the response of the company as a whole is particularly important.

“Digital transformation can be complex and confusing, so enterprises need to establish a system so that everybody is using the same data,” said Mr. Claude Spiese, Senior Advisor for Digital Advisory at Grant Thornton Vietnam.