What is digital transformation in business? Benefits for businesses

In the current era of digitalization, digital transformation in businesses has become an inevitable trend to increase competitive advantage and sustainable development. So what is digital transformation? What benefits will businesses gain when implementing digital transformation? Let's find out with 1C Vietnam in the article below.

1. What is digital transformation in business?

Digital transformation in business is the integration of digital technology into all areas of the business such as business, production, accounting,... to increase competitive advantage and improve customer experience. products, expand markets, etc. Thanks to that, businesses can create more value as well as have more opportunities for growth, improve operational efficiency and enhance competitiveness.

2. Benefit opportunities of digital transformation for businesses

As the business environment becomes more challenging, businesses face the problem of optimizing operational efficiency and minimizing costs to increase competitiveness. Then, applying digital transformation in businesses will bring many great benefits to businesses including:

• Increase performance and efficiency: Integrating technology in every aspect helps increase efficiency and minimize errors in business operations. Processes are also improved thanks to digital technology, thereby increasing personnel productivity and higher operational efficiency.
• Connect and manage large volumes of data: Digital transformation will help connect data from departments within the business together. From there, employees will easily access and search data quickly. Besides, business administrators can easily track and measure indicators, conversion rates, etc. and have a clearer and more accurate overview of the data.
• Enhance customer experience: Digital transformation can help businesses provide customers with better experiences such as 24/7 customer service, online payment, online shopping,... Besides, , thanks to data collected through digital transformation, businesses can analyze and understand customer behavior to come up with plans to increase customer experience.
• Optimize costs for businesses: Applying advanced technology platforms in management will help businesses cut down on some tasks such as searching for information, minimizing errors when manufacturing, and testing new products. ,... This helps free up excess employee time and solve the business's waste problem. Applying new technologies will help personnel focus on handling important tasks and cut down on unnecessary tasks. Thanks to that, employees will save working time and increase efficiency. At the same time, businesses can also automate processes, improve communication and online activities between departments.

3. Challenges when implementing digital transformation in businesses

With the above analysis, it is clear that digital transformation plays an important role in helping businesses solve operational and cost problems. However, during the digital transformation journey, businesses may encounter some of the following challenges:

• Large costs and investments: The digital transformation process requires businesses to invest a huge amount of resources such as employee training costs, equipment procurement costs, software costs,... to deploy. new technologies and building technical infrastructure.
• Changing business models and organizational culture: Applying digital transformation means that businesses will have to change their traditional management model to a new management model. This can cause cultural turmoil for the business, making employees unhappy and possibly causing resistance.
• Depends on the will and determination of the board of directors and employees: The digital transformation process will depend greatly on the will of the board of directors and employees. The challenge that businesses may face is that all levels of the human resources apparatus are "afraid" to adapt to digital transformation. Management does not see the benefits of changing the way it operates. Employees may feel uncertain about the new roles and responsibilities that come with digital transformation. If the above issues are not addressed, the company risks losing important growth opportunities.
• Difficulty in finding solutions suitable for resources: With the development of digital platforms, many new technologies have been born, making many businesses do not know how to implement the transformation process to achieve success. be highly effective. This challenges businesses when looking for a suitable solution that has a high likelihood of successful application while resources are limited.
• Information and data security risks: Dependence on digital technology poses challenges in information security and risk management. Organizations need to ensure safety and compliance with relevant regulations for data systems, avoiding problems with theft and leakage of important data on digital platforms.

4. Digital transformation strategies in businesses

4.1 Optimize operating processes

Optimizing operating processes is an important strategy, helping businesses increase performance and reduce costs. To implement this strategy, businesses need to re-evaluate the entire current process, find problems, redundancies, and waste of resources. From there, businesses can offer appropriate process optimization solutions for each department and division.

In internal operations, businesses can design and deploy workflows and administrative procedures with the support of smart digital office applications. This allows for coordination and management of work in the same system, minimizing unnecessary paperwork, documents and processes.

In particular, for businesses in the manufacturing sector, process optimization strategies can also be implemented by applying technology. At this time, robots, AI,... can be used to automate production tasks, helping to increase accuracy, reduce errors and waste operating costs. In addition, production processes will be integrated with information technology systems to synthesize and track data in real time, thereby helping managers make decisions and solve problems promptly. .

4.2 Enhance customer experience

The strategy to improve customer experience focuses on the following 3 main directions:

• Personalize customer experience

To build great, personalized experiences that are highly appreciated by customers, businesses need to build a comprehensive picture of their customers. This is done through data aggregation and the use of digital customer experience platforms that integrate across internal systems such as CRM. This system allows storing, managing and classifying data, allowing businesses to offer customized solutions based on specific customer behavior.

• Increase engagement with customers:

Businesses can invest in smart automated systems to increase engagement and interaction with regular customers. For example, using a chatbot system helps automate answers to customers immediately and continuously. From there, businesses can serve customers better, increase sales and bring in high revenue.

• Ensuring seamless omnichannel experiences:

Customers tend to use multiple channels during their purchasing journey. Therefore, to ensure continuity, it is important to manage and exploit customer data across all different channels and platforms. This can be done by applying supporting digital platforms such as CRM software, marketing automation,...

4.3 Digital transformation of business models

Under the impact of external factors such as the economic environment, politics, and constantly changing customer behavior, many traditional business models become "outdated" and no longer suitable. At that time, businesses can implement a strategy to convert traditional models to new models to increase competitiveness.

Depending on the goals and fields of each business, this process can apply digital technologies in all or part of the business's operations. For example, businesses can perform sales, payment, customer care, etc. activities completely automatically, online in a digital environment instead of following traditional methods as before. This helps businesses keep up with the changing trends of the times, increasing their adaptability and competitiveness.

5. What do businesses need to do to implement digital transformation?

Although the digital transformation process may require time and resources, if implemented successfully, digital transformation can help businesses develop sustainably and succeed in the new era. So what do businesses need to do to implement digital transformation effectively? Let's find out the detailed content below.

5.1 Determine the business situation and clear digital transformation goals

Enterprises need to determine and evaluate their operating situation in all aspects from finance, human resources to technology and corporate culture. Through that, businesses will know what strengths they have to continue to promote in the future. At the same time, businesses also understand their weaknesses and take measures to improve their problems, thereby helping the digital transformation process go smoothly. In addition, re-evaluating this situation will help businesses set goals that are suitable for implementation based on the company's available resources and future development orientation.

5.2 Make a strategy and plan for digital transformation in the enterprise

After determining the goals of digital transformation, business leaders need to come up with a strategy and plan to implement digital transformation in the most detailed way. Important factors that need to be identified in an enterprise's digital transformation plan include activities that need to be performed, time, implementation progress, expected results, budget, and required resources. ,... A more detailed and clear plan will make it easier for businesses to implement and ensure work progress is completed as well as quickly achieving the digital transformation goal.

5.3 Investment Apply appropriate technologies

The digital transformation process in businesses cannot lack new technologies. The important thing when conducting digital transformation is that businesses need to clearly understand each technology and how to apply it to each appropriate field, avoiding unplanned implementation and wasting resources. Some technology directions that businesses can apply when implementing digital transformation activities:

• Apply modern technologies such as Big Data and Internet to support operating methods and work processes. At the same time, these digital technologies will also help minimize errors in the process and optimize the productivity of current human resources in the company.
• Apply digital technologies such as electronic office to manage data, documents and processes. From there, businesses can keep up with trends and save time searching; Material and paperwork costs will also be significantly reduced.

5.4 Developing human resources

Human resources are important assets for businesses. Therefore, the digital transformation process also involves human resource development activities. Enterprises need to develop and implement training plans for personnel in technology knowledge. From there, employees will change their perception, apply advanced technology to improve performance, and optimize work processes to bring better results.

Thus, digital transformation in businesses is an inevitable process that requires great time and effort. Digital transformation helps businesses achieve success and increase competitiveness as well as improve performance, optimize processes and provide better value to customers. To make your business' digital transformation process easy and effective, contact 1C Vietnam today!