Digital transformation: Vision along with step-by-step action

09:54 | 16/08/2019 Science - Technology

(VEN) - The Fourth Industrial Revolution or Industry 4.0 and digital transformation are providing the economy and business world both with opportunities and challenges. Vietnam Economic News’ Hoa Quynh spoke with Professor Ho Tu Bao from the Vietnam Institute for Advanced Studies in Mathematics (VIASM) about this issue.

vision along with step by step action

Industry 4.0 and digital transformation are influencing the whole economy. Could you tell us about that transformation and related challenges facing Vietnamese enterprises?

Digital transformation is the process of using digital data and technology to change overall and comprehensively the mode of development and the way of performance to improve business efficiency. In this regard, digital transformation covers information and organization transformation and comprehensive business transformation.

A digital economy is based on digital technology, especially internet-based transactions, while digital transformation is considered the core of Industry 4.0. Six challenges lie ahead of Vietnamese enterprises, including advanced awareness and thinking; strategies and operational roadmap; digital capacity building including human resources, infrastructure and culture; identifying key technologies in business operations; business model renovation; and enlarging the size of an organization.

How ready are Vietnamese enterprises to take advantage of the opportunities provided by digital transformation and confront its challenges?

Digital transformation is an inevitable development stage of production and life. It is a long process with countless challenges associated with different smaller stages of development. Therefore, businesses cannot avoid digital transformation and should undertake it as soon as possible. Although they have been informed about digital transformation, many firms have not considered it crucial for their development and success.

In general, Vietnamese enterprises are not ready for digital transformation and most of them are still very confused, not knowing how and where to start. While it is not too difficult for strong enterprises, that transformation is hard for small and medium enterprises. However, there are many ways for businesses to do it according to their capabilities and conditions. For example, they can transform step-by-step by collecting data and analyzing market effects to better understand the status of their operations and reach their targets in the digital age.

What do Vietnamese enterprises need to do for successful digital transformation and what should the government do to help them succeed?

Thorough understanding and strong will are the first things enterprises must have to succeed in digital transformation. They need to begin the transformation by changing their awareness and building a strategy, and technology should only follow these two steps. It is crucial to perform transformation at all levels. Enterprises need to have a long-term vision but should begin with small projects in appropriate periods. Businesses with successful transformation are those whose leaders understand their targets and know how technology can help them reach those targets. Only then can they prepare the necessary human resources and technology.

Actually, digital transformation is a new development method and a major economic operating method. Therefore, Vietnam must carry out this transformation if it is to integrate into international economic communities. The government is building a national project for digital transformation, which will include mechanisms to help business adopt new digital models.

In the short run, the project is designed to build national digital infrastructure and procure equipment and technology to operate databases, including databases of ministries and sectors, which are also very useful for enterprises. The project is expected to prepare human resources and new policies suitable to the digital economy.

Hoa Quynh