Quy trình chuyển đổi số: 7 hạng mục công việc giúp chuyển đối số thành công
Digital Transformation Process: 7 Key Steps for Successful Digital Transformation in Vietnamese Businesses

Digital Transformation Process: 7 Key Steps for Successful Digital Transformation in Vietnamese Businesses

There is no one-size-fits-all approach for every business in building a successful digital transformation process. However, to achieve optimal effectiveness, here are seven essential steps that every business should consider.

Section 1: Defining the Meaning of Digital Transformation for Businesses

In the digital transformation process, it’s crucial for businesses to gain a comprehensive perspective and clearly understand why they need digital transformation. Regardless of differences in industry, starting point, or objectives, any business can define the meaning of digital transformation by answering these key questions:

  • Does your business need to respond faster to customer demands? Is there a need to enhance productivity? Are current innovation capabilities lagging behind competitors?
  • What actions should your business take, and where should it begin digital transformation? Given differences across industries, should your business focus more on people (e.g., agile operations at scale) or upgrade technologies and IT infrastructure (transitioning from legacy systems to modern platforms such as cloud computing)?
  • How can your business bring the vision of digital transformation to reality? Which capabilities and expertise must leaders develop to drive successful digital transformation?

By answering these questions, leadership can define the purpose and objectives of digital transformation clearly. However, goals must align with resources and what the business can realistically achieve and improve. Consequently, the next step in the digital transformation process is assessing the current situation and capabilities to develop a more feasible transformation plan.

Section 2: Assessing the Current State and Aspirations of the Business

Đánh giá hiện trạng của doanh nghiệp
At this stage, businesses need to assess their current state across four key factors.

1. External trends and impact analysis:

List detailed external impacts and trends from suppliers, customers, entry barriers for new products, impact of substitute products/services, and competition levels.

2. Digital technology analysis:

Businesses need to assess their existing digital technologies by addressing questions such as:

  • Does the business regularly update technologies and platforms?
  • Which technologies can be optimized or improved? Which technologies need replacement? Which areas are not yet ready for transformation and require improvement?
  • Does the business have a dedicated team for digital technology research and development?

Additionally, the business should explore innovative technologies promising significant impact, choosing them based on identified improvement needs and customer demands.

3. Analyzing current business and operational models:

Evaluate your current operational and business models comprehensively from the perspective of meeting customer needs. A clear understanding of how your resources (processes, technology, organization, people, and funding) interact to create customer value is essential.

4. Assessing people and cultural readiness for change:

While technology facilitates digital transformation, human factors remain essential. Understanding employee capabilities, motivations, reward systems, organizational culture, and potential for adaptation is crucial. To evaluate this, businesses should answer questions such as:

  • Has the organization effectively communicated transformation objectives and individual roles clearly to every employee?
  • Does the company currently have efficient data management and internal communication systems?
  • Is there an open feedback culture oriented toward shared objectives?

With a detailed analysis of the current situation, businesses can confidently develop their digital transformation strategy.

Section 3: Developing a Digital Transformation Strategy

Once you have a clear understanding of the business landscape, the next critical step is to build a digital transformation strategy. Businesses must clearly define a vision, strategic direction, and quantifiable business outcomes. Thus, the digital strategy aligns closely with the overall business strategy, creating sustainable competitive advantages.

To build a successful digital strategy, leaders commonly address three core questions:

  • Where is the industry heading in the future?
  • What role will your business play in this future?
  • How can your business navigate forward while balancing a clear direction with the ability to adapt continuously?

Digital transformation should help the business capitalize on current opportunities and align activities with future directions.

Section 4: Developing a Detailed Implementation Plan

After forming a clear strategy, businesses must create a detailed implementation plan, including these critical tasks:

Identifying digital initiatives aligned with strategic objectives: Initiatives must reflect the business’s current reality. Each initiative should focus on specific goals, avoiding overlap.

  • Prioritizing initiatives: Assign a budget and resources to each initiative, prioritizing based on goal importance and cost-benefit analysis.
  • Creating KPIs and measurement criteria: Clearly define and document KPIs (e.g., data to be used, collection methods, data analysis, and KPI measurement procedures).
  • Project planning: Each digital initiative requires a concise project plan specifying objectives, scope, stakeholders, timelines, and risks. Proper project management skills are essential to adhere to these plans.
  • Assessing success: Continuously evaluate and communicate digital transformation outcomes to all stakeholders. All parties must understand that digital transformation is ongoing, not a finite endpoint.

Section 5: Building Data and Technology Platforms

Rigid technology platforms have previously hindered digital transformation efforts. Therefore, in this stage, your business must focus on investing in modern data and technology platforms designed around business priorities, typically classified into two groups:

Internal platforms: Technologies improving document management, employee productivity, and reducing staffing costs.

Customer and partner-facing platforms: Technologies enhancing data collection from customers, quickly meeting customer demands.

Xây dựng nền tảng công nghệ thông tin

Section 6: Preparing an Appropriate Workforce

Human resources play a critical role in successful digital transformation. Businesses should consider combining these two approaches:

Training internal employees: Provide training focused on user-centric thinking, applying new technologies, and developing a flexible mindset open to change. This approach continuously builds internal expertise.

Recruiting suitable talent: Hire experts skilled in research, evaluation, and practical application of emerging technologies. New employees bring fresh ideas, accelerate adaptability, and foster breakthrough successes in digital transformation.

Mối liên kết giữa chiến lược, con người, công nghệ và sản phẩm
The strong interconnection between strategy, people, technology, and products.

Section 7: Digitizing Information, Processes, and Holistic Digital Transformation

With clear goals, plans, and essential resources in place, businesses can start digital transformation implementation. At this stage, businesses must document data and issues arising from each task to facilitate evaluation.

Digitizing information:

A fundamental step in digital transformation involves converting paper-based documents into electronic formats (e.g., Excel, PDF) stored online or in company systems. Steps include:

  • Collecting and categorizing documents for digitization.
  • Preparing technologies/platforms for data digitization.
  • Performing digitization (e.g., scanning or converting data with OCR).
  • Checking digitized document quality and completeness.

Digitizing processes:

Digitize both internal workflows and customer-facing processes to boost productivity, solve problems faster, reduce personnel costs, and enhance customer satisfaction.

Executing digital transformation:

Digital transformation comprehensively impacts business operations, technology, and people. Successful digital transformation strategies begin with alignment to business strategy and are continuous processes with no definitive endpoint. Businesses must periodically assess and refine transformation processes for continuous improvement.

Although digital transformation may seem challenging and lacks a universal formula, businesses can confidently initiate their journey today by following these seven fundamental steps.

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