According to IDC’s 2018 survey, digital transformation is gradually becoming a strategy in businesses and organizations in the fourth industrial revolution. Nearly 90% of businesses have started digital transformation with different steps from understanding, research, to starting implementation and implementation. More than 30% of business leaders surveyed consider digital transformation to be a vital issue, confirming effectiveness in many aspects such as understanding customers, increasing labor productivity, speeding up creativity… Here are 6 tips important point when applying digital transformation in enterprises.
1. Digital transformation is not just a playground for the big guys
We are no stranger to the familiar names of successful digital conversion applications. If Uber and Grab dominate the transportation market. Airbnb challenges the concept of hotels and accommodations. Netflix and Spotify are the leading names in the entertainment industry. But are these names misleading: Are only big businesses able to access digital transformation?
The answer is no. Digital transformation is a level playing field for all businesses where anyone who is quick enough can find their own piece of the pie. Typically, stores have applied online sales software, logistics management software. Enterprises use human resource management software to manage employees. Not only the big guys, all businesses, if they are not flexible to catch up with strategic changes, businesses will quickly be eliminated, like the way that the prestigious toy brand Toys R Us has gone. at the beginning of this year.
2. Digital transformation is not just a technology
According to research from Microsoft in 2017 in the Asia-Pacific region, the impact of digital transformation on GDP in 2017 is about 6%, in 2019 it is predicted to be 25% and by 2021 it is 60%. . Digital transformation also increases labor productivity by 15% in 2017, is expected to be 21% in 2020; 85% of jobs in the region will be transformed in the next three years. Therefore, with such a remarkable growth rate, the application of digital transformation in businesses will obviously become much more popular.
However, digital transformation is not just about finding the right technology and putting it into your business. It’s also the process used to create and modify existing business processes, culture, and customer experiences. Because each business is different, it will have different characteristics. That is the difference in the type of business, the target market, to the organizational culture. From there, respond to business requirements and market changes.
3. Digital transformation must start and end with the customer
Just like the growth of a business, the growth of digital transformation must begin and end with the customer. Before the 4.0 era, taking notes, storing paper records, to excel files became extremely popular and popular. So where does the motivation for digital transformation come from? Among them are customers.
A business with a large number of customers and transactions, manual control will become difficult and cause many obstacles. Therefore, just one wrong information will greatly affect the overall customer information system, taking time to check and correct. Customers want to hold less cash and transact outside office hours. That’s why digital banking thrives. Customers want fresher and cleaner food. That’s why the food industry applies logistics and production management software.
A business cannot exist without customers. Therefore, customers are always the ultimate goal that businesses aim for and strive to meet. Customers are the driving force to build successful digital transformation in businesses. However, they do not always know what they really want. Let’s temporarily forget the concept of “Customer is God” and fulfill all their requests. Make them your friend to optimize the customer experience. This is the basis for building and developing a successful digital transformation process.
4. Technology is still just a tool
After all, technology is inherently the result of human brains. A perfect technology application can never guarantee 100% of the success of a business, nor can it guarantee the success of the end result that the business is aiming for.
Not all businesses are excited about “digital transformation”. Especially digital transformation within the enterprise. Those are issues related to the organization, to employees. Applying digital transformation means having to change the entire process, way of working, even personnel. A business where employees do not have a digital mindset, refuse to change, and a culture that does not foster innovation, no technology can save a business.
Technology becomes a useful tool when built on the foundation of corporate culture. Technology will optimize the workflow, increase productivity, create the ultimate profit in business.
5. Application, not just application
Application and application are two completely different concepts, but often cause confusion. Adoption is the use of existing templates and putting them into practice in the business. Application is a collection of two concepts: apply and transform.
For digital conversion, it’s not enough to just apply. Each different business has its own characteristics and characteristics. These can be said to be the criteria to create their own value and to distinguish one business from another. 2 businesses with the same business type does not mean the same digital transformation application.
Technology application is to determine that the technology is really suitable for the development of the business or not? Choose a suitable technology, apply the transformation so that the technology really brings out its potential. The right digital transformation strategy must correctly utilize the potentials and opportunities of technology to do things faster, better and more creatively. The success of digital transformation must lie in the thinking and approach to problem solving. Answer the question: “What is this technology really capable of, and how can we tailor our processes and workflow to get the most out of our technology investments ?”
6. Doing it fast, doing a lot doesn’t mean working effectively
The era of “digitization” does not mean that everything of a business needs to be digitized. Digitize as needed. If applying many technology trends at the same time and not rationally, it will only make businesses become confused, waste time and resources and fail quickly.
In the world of technology 4.0 is rotating like a storm with digital transformation trends changing and constantly updating. Enterprises need a cool head to be able to calmly find out the company’s difficulties, understand the business model, competitive landscape as well as consumer psychology before considering the application of technology.