Businesses are required to participate in the inevitable "game" of digital transformation

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Illustration: Internet

On May 27, in Hanoi, the Vietnam Confederation of Commerce and Industry (VCCI) in collaboration with SAP Company and Amazon Web Services held an online seminar: "Effective change management - An important factor in digital transformation at enterprises”.

This event was one of a series of programs that VCCI has been organizing to support the Vietnamese business community in comprehensive digital transformation, contributing to promoting the development of Vietnam's digital transformation.

According to Hoang Quang Phong, Vice Chairman of VCCI, to maintain business and compete in the 4.0 revolution, enterprises must adjust according to the needs of the market by digitizing their production and business processes and models, and are required to participate in the inevitable game called "digital transformation". Along with that, they need to closely connect with partners, improve innovation capacity and competitiveness in domestic and foreign markets.

A survey by Base.vn in collaboration with FPT showed that more than 60% of Vietnamese enterprises would continue to combine teleworking and working in the office and more than 77% of businesses had chosen to deploy a combination model of online and on-site business after the pandemic. Covid-19 has brought opportunities for businesses to accelerate digital transformation, such as participating in sales on e-commerce platforms, developing online channels, and making non-cash payments.

Le Van Khuong, Director of the Northern Small and Medium Enterprise Support Center, Ministry of Planning and Investment, pointed out several benefits of digital transformation: reducing operating costs, increasing customer access, and optimizing labor productivity.

Different sized businesses have different difficulties. Source: Ministry of Planning and Investment

However, Khuong also acknowledged the major difficulties and barriers of enterprises when implementing digital transformation such as: technology investment costs; change business habits and practices; manpower shortage; and lack of infrastructure. In particular, enterprises of different sizes have different challenges and difficulties, especially small and medium units.

According to a survey conducted by the United States Agency for International Development (USAID) and the Ministry of Planning and Investment in 2022, more than 60% of enterprises participating in the survey said that barriers of enterprises when applying digital technology were investment and application costs. This is also the biggest barrier slowing down businesses’ digital transformation process.

Therefore, Tran Cong Son, representative of solution consulting department, SAP Southeast Asia in Vietnam, introduced digital transformation solutions for small and medium enterprises, which focus on the application of enterprise resource planning (ERP) tools. An Amazon Web Services representative proposed a change management solution when applying cloud computing in digital transformation at businesses and business support programs from the company.

Besides, according to experts, businesses need to develop strategies and invest resources to build a methodical digital transformation roadmap; and improve the digital knowledge and skills of business leaders as well as employees.

Additionally, businesses suggested that management agencies need to step up investment in information technology infrastructure, as well as training programs to serve a wide range of people in society, to give working people the opportunity to learn and hone skills. Moreover, Vietnam needs to improve the legal framework on the digital economy, build a cyber-insurance market to help businesses receive financial support when problems arise.