However, to help digital transformation in businesses be more effective and successful, it is crucial to a new way of thinking and new capabilities in the operation towards combining people and machines on the basis of digital technologies and digital data.
Changing mindsets and perceptions
The Government's National Digital Transformation Programme to 2025, with orientation until 2030, has set out the goals of developing a digital government toimprove operational efficiency and effectiveness; developing a digital economy to improve the competitiveness of the economy; and developing digital infrastructure to narrowing the digital gap. In particular, digital transformation is the main means and an appropriate, pioneering, and revolutionary policy.
The actual implementation in some enterprises and localities shows that the digital transformation process has been only considered as a non-professional work, in addition to the political and economic goals being carried out. The awareness and selection of technology, ecosystem, people, and financial capacity have not been synchronised nor given due attention in some instancesand in some places. This mindset is currently a barrier and a challenge that makes the transformation difficult to reach success.
Recalling the intention to apply digital transformation in her business 5-7 years ago, General Director of Hong Duc Education Equipment Joint Stock Company Vu Thi Ngoc Anh said when starting to apply digital transformation, many employees and even managers of the company have not kept up with new technology, so they objected strongly because they thought it was complicated and they were afraid to do it all over again. In addition, some individuals have not been clearly aware of the benefits of digital transformation in businesses, so they have refused to do.
When starting to apply digital transformation, many employees and even managers of the company have not kept up with new technology, so they objected strongly because they thought it was complicated and they were afraid to do it all over again. In addition, some individuals have not been clearly aware of the benefits of digital transformation in businesses, so they have refused to do.
General Director of Hong Duc Education Equipment Joint Stock Company Vu Thi Ngoc Anh
Due to the lack of experience, some units have applied many software and technologies at the same time, causing a lack of linkage and synchronousness in data and systems and leading to many errors. The challenges mentioned above have caused the digital transformation process at the companies to fall into a "stalemate" because they do not know where to start and how to do it right. Therefore, digital transformation is a big problem for the whole businesses.
To solve that problem, business leaders need to takeaction with a digital mindset. Then the digitisation and innovation from the normal system to the digital system will be taken into account, in which digitised results converted to building a management reporting system linked to the database. Finally, the businesses should make a full transformation. Currently, most Vietnamese enterprises have failed in digital transformation or confused data digitisation with digital transformation, due to financial problems and a lack of technology knowledge among business leaders.
Human resources - the decisive factor
According to a recent survey by the Vietnam Confederation of Trade and Industry (VCCI), 23.8% of surveyed businesses knew about digital transformation but they lack financial and human resources for the implementation and 90% of surveyed businesses announced their digital transformation has not been successful.
Only 11% of businesses succeeded in digital transformation, the remaining 89% were "lost" in the digital transformation process with four main reasons, including misperception and benefits of digital transformation unconnected with businesses’ goals, and alack of necessary resources or favourable digital ecosystem. In addition, most small and micro enterprises believe that digital transformation is the "playground" of the big businesses.
VCCI Vice President Bui Trung Nghia assessed that, along with the rapid development of technology, the application of digital initiatives and digital technology solutions will help businesses add socio-economic values towards sustainable development. However, it has been said that the digital transformation process in Vietnam isfacing many barriers due to the uneven business quality foundation, relatively low management level, inadequate digital technology supply, etc. Therefore, digital transformation requires drastic and innovative thinking and actions from management agencies as well as from businesses, organisations, and local authorities. Digital transformation is not only the investment in technology, but also transformation in terms of management, approach, and human resources.
Digital transformation requires drastic and innovative thinking and actions from management agencies as well as from businesses, organisations, and local authorities. Digital transformation is not only the investment in technology, but also transformation in terms of management, approach, and human resources.
VCCI Vice President Bui Trung Nghia
According to the annual report on digital transformation in enterprises in 2022, up to 48.8% of businesses have undergone digital transformation but no longer continue because the solution is not suitable or is no longer appropriate in the current context of the businesses. There are many reasons leading to the above situation, but,according to experts, the first it is due to the incorrect perception and thinking of business leaders about digital transformation. Many businesses have just used digital technology solutions for a short time, but because they found it ineffective or had to spend a lot of money on initial technology investment, they stopped deploying it.
According to calculations, the actual cost of technology in digital transformation in enterprises only accounts for about 20% of the total cost of digital transformation. The purchase of application software for business is not difficult, but the problem is to exploit its value. Thinking and understanding about digital transformation is a decisive factor for the success of the digital transformation process in businesses. Therefore, business owners must master their internal problems and the implementation method should be based on the capacity and reality of each business to find and apply suitable, correct, and sufficient technology for enterprises.
After having a clear implementation process, businesses can work with partners on digital transformation, then they will also understand the problems of the businesses to come up with a plan for implementation in an appropriate and effective manner.
