{"id":5165,"date":"2022-06-23T13:42:30","date_gmt":"2022-06-23T06:42:30","guid":{"rendered":"https:\/\/vuletech.com\/?p=5165"},"modified":"2022-06-23T13:42:30","modified_gmt":"2022-06-23T06:42:30","slug":"how-to-understand-digital-transformation","status":"publish","type":"post","link":"https:\/\/vuletech.com\/en\/how-to-understand-digital-transformation\/","title":{"rendered":"How to understand digital transformation"},"content":{"rendered":"

Digital transformation is currently the top concern of Vietnamese businesses. Even the Government of Vietnam pays special attention to this topic in today’s industrial 4.0 era. It is difficult to have a clear and specific definition of digital transformation, because the application process at each business will be different in each different field.<\/p>\n

1. What is digital conversion?<\/h2>\n

Digital Transformation is the process of total and comprehensive change of individuals and organizations in the way of living, working and production methods based on digital technologies.<\/p>\n

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But to put it more accurately and easier to understand, this is the integration of digital technologies into all areas of a business, taking advantage of technologies to fundamentally change the way it operates, modeled and operated. business model and deliver new value to its customers and accelerate business operations. On the other hand, this also promotes a change in the culture of businesses, which requires businesses to constantly change, try new things and freely accept failures.<\/p>\n

Not only is it applied to businesses and manufacturing facilities and factories, today digital transformation also plays an extremely important role in other fields such as government, science, health, etc.<\/p>\n

2. Difference between Digital Transformation and Digitization:<\/h2>\n

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In Vietnam, the concept of “Digital Transformation” is often understood as the process of changing from a traditional business model to a digital one by applying new technologies such as Big Data, the Internet of Things, and the Internet of Things. (IoT), cloud computing (Cloud)… to change the way of operating, leading, working process, company culture. Therefore, it is easily confused with Digitization in itself.<\/p>\n

It can be understood that, digitization is the process of modernization, converting conventional systems to digital systems (such as converting paper documents to soft files on computers) while, converting Digitalization is about exploiting the data derived from the digitization process, and then applying technologies to analyze, transform that data and create new values. \u201cDigitalization\u201d can be viewed as part of the \u201cDigital Transformation\u201d process.<\/p>\n

Take for example Grab in building a ride-hailing application. What users see on the phone screen is simply a cycle of booking and completing a trip for guests and drivers, but hidden deep is a complex system. The company has to analyze large volumes of data related to drivers’ driving habits, user needs, route creation, real-time navigation… From a ride-hailing service, the company has expanded to add many other products such as delivery, food…<\/p>\n

3. What benefits does digital transformation bring to businesses?<\/h2>\n

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There are many reports showing that digital transformation brings many benefits to businesses: from executive management to research, business, etc.<\/p>\n

The most recognizable benefits are reduced operating costs, reaching more potential customers in the longer term, thanks to a timely reporting system that allows management to make quick and accurate decisions. and optimize employee productivity. These things help businesses operate more efficiently, increasing their competitiveness in the market.<\/p>\n

4. Objectives of enterprises when applying digital transformation:<\/h2>\n

According to experts and market research, the goals businesses want to aim for are:<\/p>\n