What is Enterprise Digital Transformation?
Digital transformation brings great change, disrupting entire industries and at the same time, creating destructive creativity that helps some businesses grow and develop at record levels. Many large, long-standing corporations struggle while businesses are new, small and more flexible by adopting new business models. But the opportunity is still for all.
Summary
What is destructive creativity?
Is ERP implementation a digital transformation?
Which direction will small and medium enterprises transform in?
What is digital economy?
Enterprise digital transformation can be achieved through business rethinking, value chain reassessment, customer reconnection and corporate restructuring.
What is destructive creativity?
The spiral of creation continually forms new discoveries and crushes old ones along its way. The automobile industry was born, which led to destruction of the world once dominated by horse-drawn. The advent of personal computers was the bell that rang the end of the bulky, giant, and coarse computers. The advent of digital cameras brought the once-reigning film cameras at the top of the world in the 20th century into the history museum of mankind's great inventions. The innovation of new music technology with phones and iPods being the center has sent giant Walkman of Sony and CD technology to the past. Those are destructive creativity.
Is ERP implementation a digital transformation?
ERP is the computerization of business processes in order to make business operations smooth and euphonious. ERP can be envisioned as the vegetative nervous system, controlling the organs in the body automatically, reacting to external changes according to pre-programmed and unconditional responses.
Digital transformation is focusing on overall innovation, enhancing adaptability, focusing more on collecting, processing, integrating data, useful knowledge to all levels of decision-making based on the data. Digital transformation can be envisioned as the central nervous system, helping businesses become smart, being able to create, quickly and effectively adapt to changes.
It can be said that digital transformation is a higher level of development. Large enterprises, especially in developed countries, have been implementing ERP for a long time, will focus more on data integration and business analytics. Most of Vietnamese enterprises have not had ERP yet, so the digital transformation process includes process automation using ERP.
It should be noted that digital transformation involves changing business models and processes, so the ERP application should not be done mechanically. Many very complete, expensive ERP solutions in the past are unlikely to be relevant in the digital future. With the advantages of late-comers, Vietnamese businesses can move straight to smarter ERP solutions, better integrated with digital transformation, or born for process of digital transformation.
Which direction will small and medium enterprises transform in?
Agricultural cooperatives that have been harvesting cocoa and selling cocoa for many years have always faced difficulties, challenges and market fluctuations. Then one day, 2 young men made another story with same ingredients. They carefully selected the best cocoa ingredients to make the finest chocolate bars. But they did not sell chocolate; they sold a luxury gift. Chocolate bar wrapping paper was selected from traditional Vietnamese silk. Hand embroidery motifs on silks were designed with modern digital technology. They did not sell products in Vietnam first, but chose European and American markets first. Their business was only about 10 people but revenue was millions of dollars. It is a small and medium business called Marou Chocolate located in Thu Duc, Ho Chi Minh City, Vietnam.
Digital transformation is transforming thought and perception. Similar to the above, a wood working shop may ask itself whether they still build and sell furniture as many years ago, or will they sell the furniture design as the needs of customers, allowing the customers to give comments on their furniture by the way they want, to be visually seen the 3D digital version before making decision? Small and medium enterprises only need to innovate awareness and pose problems. Digital technology will help to solve.
Small and medium businesses can transform faster, more economically and more efficiently by using platforms. For example, 1Office, a general corporate governance platform in Vietnam allows another enterprise to use all services from human resource management, accounting to sales, quick tax declaration with no investment required, no technical manpower required to operate, with per capita cost of only about 30,000 VND / person / month. A small and medium-sized enterprise with 10 people only has to pay 300,000 VND / month. If it works, continue using, if it doesn't work, then stop.
What is digital economy?
Digital economy includes the ICT industry, the telecommunications industry, the ICT-based goods sales industry that we still call e-commerce, the ICT-based service industry that we still call digital business such as transport booking services, restaurant and hotel reservation services.
Next part: How has business thinking changed?