Digital transformation in businesses is often viewed as a system implementation project at a specific point in time. However, in practice, as the scale and complexity increase, existing systems will gradually reveal their limitations.

At each stage of development, businesses face different management challenges and therefore require different technological approaches. In this article, 1C Vietnam analyzes the digital maturity stages of businesses and how to choose the right solutions for each stage.

1. STAGES OF DIGITAL MATURED BUSINESSES IN VIETNAMESE ENTERPRISES

During the digital transformation process, businesses don't implement systems once and for all, but continuously adjust their operations according to increasing scale and complexity. Each stage has its own characteristics in terms of scale/operation, leading to specific problems and specialized digitalization requirements for that stage. Choosing the right digital transformation solution plays a crucial role in improving management capabilities.

In reality, most businesses go through three typical stages of digital maturity.

a. PHASE 1: Minimal Digitization

This is typically the stage for small or newly established businesses, with limited staff and relatively simple operating models. At this stage, businesses usually only implement digital transformation with accounting software. Prioritizing accounting is understandable, as it is a mandatory function directly linked to compliance and financial reporting requirements.Meanwhile, other activities such as sales, inventory management, or production are still mainly handled using Excel or manual processes. When the scale is small, this way of operating still meets the needs. However, data exists in a fragmented manner, lacks connectivity between departments, and relies heavily on human resources.

When first established, businesses often only implement digital transformation with accounting software to ensure compliance obligations and financial reporting.

At this stage, the main management challenge revolves around recording and controlling finances. Businesses need to ensure accurate data for tax reporting and basic audit requirements. However, as growth begins, limitations gradually emerge. Due to a lack of connection between operational and financial data, businesses struggle to gain a holistic view, leading to decision-making that is often based on intuition. In other words, businesses have "data," but are not yet able to "manage with data."

b. PHASE 2: Expanded but fragmented digitization

As manufacturing businesses enter a growth phase, their workforce and operations expand rapidly. These are typically small and medium-sized enterprises (SMEs).At this stage, management challenges shift from simply having the tools to focusing on controlling actual operations. Businesses need to track orders, manage inventory, control raw materials, and ensure production schedules are met. To meet these needs, businesses often implement multiple separate software programs for each function, such as inventory management, sales, CRM, or production and document management.

Each system helps improve efficiency in a specific area, but is implemented independently across departments. Furthermore, the dispersed data also creates numerous problems:

- Information is inconsistent between departments, making coordination difficult.

- Inaccurate inventory data, leading to shortages or surpluses of raw materials.

- Monitoring production progress still relies heavily on human effort.

- Each order may have different characteristics, making planning and control complex.

At the SME scale, businesses need to manage and measure overall performance, but they often use fragmented software for multiple departments and functions.

Another challenge is that businesses are becoming interested in measuring overall performance, but lack the tools to do so consistently. Reports are often compiled manually, which is time-consuming and doesn't reflect operational status in a timely manner.

At this stage, businesses begin to realize they need a more holistic approach. Instead of just managing individual departments, they need a system that provides a comprehensive view of operations, controls costs, and tracks operational efficiency. This is also when businesses begin to explore concepts like ERP software or ERP systems, but haven't yet determined their suitability.

c. PHASE 3: Complex management and operational needs on a unified platform

This is typically the stage for medium and large-sized businesses, especially those deeply involved in the supply chain as vendors for large corporations, including FDI companies. In this context, management requirements come not only from within but also from partners. For example, businesses are forced to meet stringent requirements regarding processes, quality, and data traceability.

Most businesses at this stage already have experience with ERP. Many have implemented ERP systems before, but as the scale and complexity of operations increase, the limitations of traditional ERP software begin to become apparent:

- The production problem has become more complex.

- The company is expanding by opening more factories and branches.

- The need for system customization and expansion is increasing.

In addition, financial and compliance requirements have also increased. Businesses not only need to meet VAS standards, but also international standards such as IFRS when working with foreign partners.

For medium and large-sized businesses, the challenge is no longer simply having an ERP system to operate, but rather one that is flexible enough to adapt to the actual business and operational model.

Therefore, businesses need not just a system to operate, but a platform that is flexible enough to adapt to their business model and robust enough to meet the increasingly demanding requirements from both internal and external parties. In other words, the question is no longer "do we have ERP or not?", but rather: Is the current ERP system still capable enough for the business to meet the demands of its supply chain and continue to expand?

2. 1C:COMPANY MANAGEMENT: MINI ERP SOLUTION - TOTAL MANAGEMENT FOR MANUFACTURING SMEs

In the second stage of business maturity – when a company reaches the size of a small or medium-sized enterprise (SME) – operating on multiple separate software programs becomes inefficient. Data is scattered, progress and costs are difficult to control, while report generation is time-consuming and human-dependent. Comprehensive management solutions like ERP offer a more practical approach: operating all core business activities on a unified system, with a level of complexity and cost suitable for SMEs.Instead of deploying many separate tools, businesses can use a common platform to operate key functions such as sales, purchasing, inventory, and finance, ensuring data synchronization from the outset and significantly reducing repetitive data entry.

In reality, operational problems don't exist in isolation within each department. For example, inventory management isn't solely the responsibility of the warehouse department; it's a coordinated effort between sales, planning, purchasing, and production. To operate efficiently, businesses need to control the entire process: from order placement to material requirements, production planning, purchasing, and finally inventory management. This is where a comprehensive management system clearly delivers value, rather than continuing to use numerous separate tools.

1C:Company Management - Mini ERP Solution - Comprehensive Management for Manufacturing SMEs

1C Vietnam introduces 1C:Company Management, a mini ERP solution with all the necessary functions to control the daily operations of manufacturing SMEs, helping businesses maintain data consistency while facilitating efficient tracking of individual orders, departments, or overall operations.

- Manage orders throughout the entire process, from quotation and contract to delivery and payment.

- Monitor progress from multiple perspectives: production, delivery, and accounts receivable.

- Standardize quotations and cost calculations based on Bill of Materials (BOM) and purchase price data.

- Proactively calculate material requirements based on orders, inventory, and production plans.

- Control inventory with maximum and minimum thresholds.

- Compare and choose the best ordering option among different suppliers.

- Managing basic production operations: processing, cost allocation, product pricing, etc.

These functions not only facilitate data flow between departments but also enable businesses to effectively track performance by order, department, and overall operation. Besidessupporting daily operations, the system helps businesses standardize their management practices. When data is centralized and processes are clearly established, businesses can reduce reliance on individual experience and create a foundation for scaling without increasing operational complexity.

1C:Company Management provides a comprehensive management system suitable for SMEs new to ERP software: quick implementation, affordable access, while still ensuring control and scalability as the business grows.

3. 1C:ERP - A COMPREHENSIVE RESOURCE MANAGEMENT SOLUTION FOR MEDIUM AND LARGE ENTERPRISES

As businesses enter their final stage of digital maturity, scaling up and becoming more complex, the question shifts from "having a system in place" to "having one," but rather whether the existing system is capable of meeting management requirements. For medium and large-scale manufacturing and trading businesses, especially those involved in supply chains or acting as vendors for large corporations, the system needs to not only manage effectively but also meet stringent operational requirements and standards.

Understanding this need, 1C:ERP is designed as a comprehensive management platform, helping businesses operate on a unified system while addressing complex issues in manufacturing, finance, and supply chain.

1C:ERP - A comprehensive Resource Management solution for medium and large enterprises.

At the system level, 1C:ERP helps businesses build a unified management platform with core competencies:

- Manage all operations on an all-in-one system, seamlessly across companies, branches, and departments.

- Centralized data, real-time updates across departments.

- Standardize management and financial reporting to meet requirements such as VAS and IFRS.

- Plan and analyze costs across multiple scenarios, linking operational plans and budgets.

- Monitor multidimensional operational performance in real time, from production to business.

From a production perspective, 1C:ERP solves problems that other solutions struggle to address:

- Managing overall production capacity and production demand

- Planning, setting standards, and coordinating each stage of the process.

- Monitor progress and optimize production processes in real time.

- Managing equipment, supplies, and maintenance and repair plans.

- Support for specialized operations such as outsourcing and multi-level manufacturing.

Beyond its operational capabilities, the system is built according to management standards such as ISO and IATF, making it suitable for businesses that need to standardize processes or participate in high-standard supply chains. This helps businesses not only control internal operations but also meet the requirements of their partners.

Another important point is its customization and scalability. 1C:ERP is designed with an open architecture, ready to integrate solutions within the 1C ecosystem and third-party hardware and software systems simultaneously, to create a complete IT ecosystem tailored to the specific operational needs of each business.

Specifically, 1C:ERP can seamlessly connect with solutions within the 1C ecosystem such as:

- Office number (1C:Document Management)

- Human Resources Management (1C: HRM & Payroll)

- Financial Management (1C: Finance & Accounting)

- 1C:Analytics - a BI (Business Intelligence) tool for analyzing business data.

Simultaneously, it integrates with existing business systems, for example: sales systems, e-commerce websites, and DMS for distribution businesses; or field data visualization and production management systems for manufacturing businesses. This approach helps businesses build a unified management platform that is flexible and expandable in stages, instead of being dependent on a closed system.

4. CONCLUSION

Digital transformation is not about implementing a single system, but rather a process in which businesses continuously adapt their operations to suit their increasing scale and complexity.

In the initial stages, businesses may operate with individual tools. As they scale, the need for connectivity and control emerges. And as businesses mature, the challenge shifts to holistic management, optimizing operations, and meeting increasingly demanding market requirements. The key is not choosing the "most powerful" system, but rather selecting a solution that fits the current management problem and is flexible enough to expand operational capacity for the future.

Depending on their stage of maturity, businesses can choose different solutions – from solutions for basic operational needs to ERP systems. More importantly, selecting a solution ecosystem capable of supporting multiple levels of governance will help businesses maintain data continuity and consistency during their digital transformation.

With its comprehensive enterprise management solutions ecosystem, 1C can meet the diverse needs of businesses as they grow and develop. Specifically:

- If your business is in the standardization phase and needs a comprehensive management system at a reasonable cost, you can learn more about 1C:Company Management- a mini ERP solution that helps connect operations and control data right from the growth stage.

- For businesses that have grown larger or are facing complex operational challenges, 1C:ERPwill be the suitable platform to build a sophisticated, integrated management system ready for long-term expansion.