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Why businesses need digital transformation?

Although appearing for a long time in the world, in Vietnam, the concept of digital transformation has only appeared in the past few years with many different definitions and interpretations.

I. Digital transformation concept:

According to Gartner – the world’s leading information technology research and consulting company, the definition of digital transformation is as follows: “Digital transformation is the use of digital technologies to change business models, create new opportunities, revenue and value”

Microsoft believes that “Digital transformation is about rethinking how organizations bring together people, data, and processes to create new value.”

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In Vietnam, digital transformation is understood as the process of changing from a traditional model to a digital enterprise by applying new technologies such as big data (Big Data), Internet of Things (IoT), computer cloud… changing operating methods, leadership, working processes, company culture.

II. Why businesses need digital transformation:

Not following the world’s lead, but in Vietnam, businesses started to do digital transformation, but digital transformation really brings a lot of benefits to the management and development of the company.

The benefits of digital transformation manifest in many aspects such as: reducing operating costs, reaching more customers in a longer time, thanks to a timely reporting system that helps company leaders make informed decisions. more quickly and accurately. As a result, businesses can improve operational efficiency, help increase competition in the market, and strengthen corporate reputation.

1. Reduce costs and improve operational efficiency:

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Digital technology helps businesses save maximum costs for their operations.

Data storage can be handled by cloud computing and can be managed by external providers. This gives your employees more time to focus on other projects and work that bring more business value and less worry about data storage.

In general, by applying digital transformation, businesses can automate tasks and processes that were previously performed manually and very time-consuming, for example: Customer data collection, financial management, work management, human resources, reporting, …

This will have a positive impact on productivity and improve employee satisfaction, as they will no longer have to perform monotonous tasks and will be able to make better use of their skills.

2. Enhance customer experience:

Today, customers always have a lot of choices outside. Therefore, businesses not only provide products and services, but also provide additional interactions and experiences that help satisfy customers and promote brand loyalty. For example shopping on e-commerce platforms like Lazada or Tiki or Shoppe, studies show that now 91% of customers buy from brands that call their name, know their purchase history and give Make product recommendations based on their preferences. In short – customers demand personalization and it cannot be achieved without going digital.

Digital technology can give you insights into your customers’ historical data, including their interactions, interests, and levels of engagement.

Furthermore, they provide the means to analyze this data rapidly to personalize the customer experience to better meet customer needs and expectations.

3. Maintaining the competitiveness of enterprises:

One thing is for sure, digital transformation is no longer a matter of choice, but businesses need to do digital transformation to continue to survive in the ever-evolving 4.0 era, which is essential to remain competitive. painting.

4.0 technology tools are built to meet the modern needs of customers, and companies need to find the right solutions to enhance the experience and meet the requirements of customers now and in the future. . Businesses must choose the right technology to meet their digital transformation goals and satisfy customers.

4. Data information is provided in detail to all employees.

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Digital transformation helps employees in enterprises have access to huge amounts of data. They can track all kinds of metrics, like process efficiency, channel conversion rates, customer lifetime value, customer satisfaction, and more. Company leaders also do not need to wait for their employees to submit reports, but instead they can access the reporting system and review the data themselves.

This not only allows businesses to organize their data in an intuitive and easily accessible manner, but also enables data-driven decision making, helping managers make accurate, fast decisions. more quickly.

5. Strengthen links between departments

It is a fact that between departments in an enterprise there is always an invisible distance and even no information linkage between departments. It is this that causes the work to be often blocked for unknown reasons, leading to many negative impacts on business operations: slower customer service, less sales, lower revenue, etc.

Not only is it a simple digital transformation concept, but it can also create a platform that connects all internal departments together, allowing personnel between departments in the entire company to communicate. better and more often. Thanks to the use of automated business management platforms, departments can easily share all kinds of information and documents easily anywhere, anytime. This improves collaboration.


Vu Le Technology Company Limited – specializes in industrial automation equipment, factory automation solutions and robotics.

Address: 27 Xuan Quynh, Gia Hoa Residential Area, Phuoc Long B Ward, City. Thu Duc, HCMC

Hotline: (028) 3620 8179 / 3620 8176 / 3620 8177

Fax: (028) 3620 8178

Mail: info@vuletech.com
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