DIGITAL TRANSFORMATION IS HELPING BUSINESS SEIZE GREAT OPPORTUNITIES

In the present 4.0 industrial revolution, digital transformation is becoming a global trend for organizations, businesses and nations. In Vietnam, the model of digital transformation has helped the government improve its public services, thus more efficient services are being rendered to the people; and businesses are changing their business models, which creates new opportunities, incomes and values for them. The digital transformation process is now still facing many difficulties and challenges but it has been creating great changes for the businesses, especially those traditionally-run businesses.

What is digital transformation?
Recently, one often heard of the concept of “digital transformation” being repeatedly mentioned in mass media. So what is digital transformation and how important is it?
It is difficult to give a clear and concrete definition of digital transformation because its implementation is different in different fields.
However, it is possible to have a following short and easily understandable definition: Digital Transformation is the change of thought on management styles/models and, therefore, change of these styles/models; and new business models can be digitally created for use in managing and solving problems faced by organizations, business enterprises and in society in order to bring about values.

“Digital transformation” can easily be mistakenly understood as “Digitalization”. So, in order to distinguish these two concepts, one may understand that “Digitalization” is the process of modernization, of converting normal systems to digital systems (such as converting paper documents to soft files on the computer, direct meeting to zoom, webex; and in television, analog to digital transmission); meanwhile “Digital transformation” is the exploitation of data given by the digitalization process, then these data will be analyzed and transformed in such a way as to create newer values. Therefore, “Digitalization” can be considered a part of “Digital transformation” process.

The nature of digital transformation

The benefits of digital transformation for the business

Making use of digital technological foundations, the business can improve in many ways such as reduction of management and operation costs; approaching/ attracting more customers; quicker and better decisions by the leaders thanks to timely and smooth reporting system; and maximizing the staff’s productivity. These benefits will help enhance the effectiveness of the company’s operation and competitiveness on the market.