WHAT IS DIGITAL TRANSFORMATION? THE URGENCY OF DIGITAL TRANSFORMATION IN BUSINESS

Many people often wonder: What is digital transformation in our increasingly industrialized world? Today, businesses frequently refer to their digital transformation roadmap. However, with an overwhelming amount of expert advice, training programs, and scattered information, the concept can sometimes appear unnecessarily complex.

Establishing a successful digital transformation process that meets critical business optimization needs means understanding what fits your organization and creating a tailored plan to transform it. In fact, building and implementing a digital transformation roadmap can be quite straightforward with the right steps and simple tips. To better understand what digital transformation really is and how it differs from other concepts, let’s explore the following article from MP BPO.

What is Digital Transformation?

There are many perspectives on digital transformation, but in general, it is seen as a breakthrough in the process of business transformation through modern technologies such as Artificial Intelligence (AI), Internet of Things (IoT), cloud computing, big data, and more. These cutting-edge advancements provide organizations and businesses with the opportunity to evolve, enabling them to grow more efficiently and rapidly.

Digital Transformation Reflects the Power of Comprehensive Connectivity

Digital transformation is not merely about shifting from traditional methods (such as handwritten notes or in-person meetings) to the use of modern technologies to reduce manual effort and resource consumption. More importantly, it drives a positive shift in business mindset, organizational culture, and management approach across the entire enterprise.

FOR BUSINESSES TO DIGITAL TRANSFORMATION, FIRST THING IS NEED TO DIGITALIZE DATA

Examples of Digital Transformation

Today, with the increasingly modern development trend, it is not difficult to encounter examples of digital transformation. To better visualize this concept, the two examples below will help clarify:

Example 1: Each time we go for a medical examination, electronic medical records are indispensable. Test results and previous medical history are all stored digitally. Doctors only need to search this system to access all relevant details and necessary information.

Example 2: As we know, the VNPT E-learning platform allows teachers and students to conduct online learning without attending physical classes. This is also considered a typical example of digital transformation.

What is the Difference Between Digitization and Digital Transformation?

There are many misunderstandings about the concepts of digitization and digital transformation. To clarify these viewpoints, we can distinguish them as follows:

• Digitization: This is the process of converting information from physical formats such as paper documents, CDs, hard drives, etc., into online storage systems. As a result, storing information becomes much easier and more convenient.

• Digital Transformation: This refers to the shift in business mindset and scale from traditional models to digital models through the application of information technology. It is considered a breakthrough improvement that helps businesses operate efficiently and gain higher profits.

>> See more: DIGITAL TRANSFORMATION FOR BUSINESSES

Why Undertake Digital Transformation and When Is the Right Time?

With the rapidly accelerating development of the world, adapting and evolving have become both essential and inevitable. This is not only true for the global landscape but also for each individual, who must always be in a state of readiness for change. Digital transformation technology marks the beginning of the potential advancement of human civilization. Therefore, the earlier one understands and adapts to this process, the more opportunities and new successes can be created.

What is the purpose of digital transformation? Digital transformation enhances productivity and efficiency for businesses

There are many different ways to undergo transformation, but first and foremost, we must begin by changing our mindset and perception. From there, we can apply digital technology to our lifestyles, work methods, and production processes.

Digital transformation in government agencies

Some examples of digital transformation in the public sector include the development of e-Government and digital government. These efforts help authorities manage tasks more easily while reducing citizens’ waiting time for administrative procedures.

Digital transformation in businesses

Digital transformation is also widely applied in businesses. For example, using cloud storage for data management, or applying tools like Google Planner to manage projects and human resources without the need for direct supervision.

>> For more information, please refer to: DIGITAL TRANSFORMATION FOR BUSINESSES

The Benefits of Digital Transformation in Enterprises and Government Agencies

It is clear that digital transformation has brought significant benefits to enterprises and government agencies. This is seen as a breakthrough step and an opportunity to unlock great potential for rapid and sustainable development. So what are the benefits of digital transformation? Below are some prominent advantages that digital transformation offers:

Providing detailed information from data

Digital transformation allows employees in an enterprise to access data. From there, they can track various metrics such as the effectiveness of standards, channel conversion rates, customer lifetime value, and satisfaction levels.

In addition, not only does this method allow businesses to organize and access data quickly, but it also helps make decisions based on data. This enables managers to make more accurate and reasonable decisions.

Maintaining business competitiveness

Competition is inevitable in any field. With the explosive development of today’s 4.0 technologies, competition is becoming even fiercer.

Deborah Ancona, a management professor at the Massachusetts Institute of Technology (MIT) and founder of the Center for Leadership, stated: “Driving digital transformation is happening in a world where businesses are increasingly competitive.”

Up to 93% of businesses agree that digital technology is essential to achieve set goals. Moreover, it is evident that businesses need to choose appropriate technologies to meet their targets and satisfy customers. From that, 4.0 digital transformation tools have been created to meet the modern demands of customers. At the same time, businesses also need to find solutions that make customers most satisfied.

Enhancing customer experience

According to Accenture – a management consulting company providing services, strategy, and digital solutions – up to 91% of customers tend to shop based on preferences and how they are approached. Therefore, using digital technology is essential to better understand customers.

Digital technology can provide businesses with quick customer information including preferences, purchase history, etc., ensuring businesses thoroughly understand their customers and deliver great experiences.

Strengthening inter-departmental connections

In addition to the advantages mentioned above, digital transformation technology also increases communication and connections between staff and departments in the company. Thanks to the use of automated business management platforms, information sharing becomes easier and more convenient, thereby increasing collaboration among individuals in the business.

Improving operational efficiency and reducing costs

It can be said that digital transformation has helped businesses enhance operational efficiency and reduce costs. One example is that virtual reality allows employees to test new products without having to physically create them, as everything is digitally visualized.

Through this, we can see that applying digital technology in digital transformation has brought many benefits and accelerated the journey toward brilliant development.

Steps in the Digital Transformation Process

Implementation is considered a foundational step to achieve outstanding success. Accordingly, in digital transformation, to achieve the best breakthrough, the process must be thoroughly invested. So what are the steps in digital transformation? Below are five basic steps in the digital transformation process:

• Step 1: Perform assessment and capability analysis.
• Step 2: Obtain approval from senior management authorities.
• Step 3: Set clear, specific, and practical goals.
• Step 4: Always be ready to change organizational culture when necessary
• Step 5: Allocate investment for prompt project management.

The Current State of Digital Transformation in Vietnam

Digital transformation is a diverse process and there is no common model for all; therefore, each organization, business, or individual must define their own suitable roadmap. Below are frequently asked questions by organizations and businesses:

• Digital transformation in government agencies involves central government development along with the development of digital government, aiming to improve local government operations and support infrastructure development.

• Digital transformation in businesses means integrating digital technologies into business operations, aiming to increase efficiency, improve customer experience, and gain competitive advantage in the market.

• Digital transformation in logistics is gradually making breakthroughs and becoming more common. To overcome stagnation and enhance competitiveness and growth, digital transformation in logistics helps businesses gain more customers and maximize profit.

• Digital transformation in manufacturing is the change in working methods by integrating digital technologies into operations to improve efficiency and profits.

• Digital transformation in agriculture involves using digital technology in agricultural production from farming and cultivation to consumers. These technologies provide tools and information to support correct decisions, improve productivity, and ensure effective management.

• Digital transformation in healthcare is the comprehensive and integrated application of information technology, especially modern digital technologies, to positively transform the entire healthcare system.

• Digital transformation in construction involves implementing digital tools and technologies to harness data, increase productivity, and ensure more efficient and safer operations.

• Digital transformation in retail is the shift from a supply chain-focused business model to a customer-focused digital value chain based on data.

• Digital transformation in education is the application of technology and techniques according to the goals and structure of educational enterprises to enhance and accelerate development.

• Digital transformation in tourism is the development of smart tourism with the support of digital technologies to serve and satisfy tourists.

Comprehensive Digital Transformation Solutions at MP BPO

Digital transformation is a long journey that requires well-planned, specialized investment and development to achieve expectations. However, in Vietnam, 53% of small and medium-sized enterprises are still in the early stages of learning about digital transformation, and 31% are facing difficulties due to a lack of resources and direction.

What is Digital Transformation? What is National Digital Transformation? Digital Transformation – Innovation for Development

With extensive experience and practical implementation of digital technology projects to thoroughly understand the challenges that businesses are facing, MP BPO has developed and proposed solutions tailored to the scale and needs of Vietnamese enterprises.

Along with that is a professional implementation process applying advanced digital technologies such as: Optical Character Recognition (OCR), speech recognition technology, object digitization technology, machine learning, etc. These solutions can partly help Vietnamese enterprises limit certain issues and thereby enhance opportunities for production and development.

In addition, MP BPO also offers you efficient and fast data storage and processing solutions. These solutions, which have been recognized and applied in many large systems, are receiving increasing attention, including: Smart document storage and management systems, and the comprehensive big data storage and processing platform VLAKE.

Although these methods are not exhaustive, they partly address different aspects of the digital transformation process, thereby contributing to enhancing competitiveness and supporting Vietnamese enterprises to achieve successful digital transformation as expected.

DIGITIZING PROCESSES – BOOSTING BUSINESS EFFICIENCY BY 200%

In recent years, we have clearly seen the significant impact of digital transformation on companies. However, to achieve the goals of enhancing competitiveness, improving efficiency, and reducing operational costs, businesses need to prepare both human and material resources and make planned investments. The information compiled by MP BPO will help readers gain an objective understanding of what digital transformation is and its significance, while also outlining a reasonable roadmap for business development.

The digital transformation journey may seem long and complex. But by consistently guiding and supporting everyone from the beginning, you can ensure both your destination and the path you take. Therefore, if you still have any questions about what digital transformation is, contact MP BPO today for detailed consultation and the implementation of a suitable digital transformation solution for your organization or agency.