What is a digital enterprise? 5 current digital business models

Along with the development of modern technology, the concept of digital business is increasingly popular and has become a trend chosen by many companies. So what is a digital business ? What challenges and opportunities do businesses face when applying digital transformation? Please refer to the article below from 1C Vietnam to answer the above questions!

1. What is a digital enterprise?

Digital Enterprise is a new term that has appeared in the past few years. This term is used to describe businesses that integrate digital technology into all company activities and culture to improve business efficiency, improve productivity and increase competitiveness in the market.

Businesses can use popular technologies including artificial intelligence (AI), Big Data, chain technology (blockchain), Internet of Things (IoT) into the core processes and activities of the business. A number of businesses around the world have successfully applied the digital transformation model and brought many outstanding results such as:

• Netflix, Amazon, Google (applying Big Data to information management client).
• Tesla (applying AI to product research and development).

2. 5 popular digital business models

Currently, there are many new digital business models appearing, these forms are classified based on the business's products, services or business methods. Some popular digital business models in Vietnam and around the world include:

2.1 Electronic commerce (E-commerce)

E-commerce is a form of online business in which buying, selling and exchange activities are carried out through mobile applications and e-commerce channels. Outstanding digital businesses with e-commerce business models such as Amazon, Shopee, Tiktok,... have built giant online shopping platforms with global coverage.

2.2 Software technology startups (Tech startups)

New businesses starting a business will focus on building and developing new technology solutions called Tech startups. They will apply technologies such as artificial intelligence, IoT and blockchain to solve consumer problems.

For example, companies providing transportation methods such as Grab and Gojek have applied big data and AI to calculate the shortest distance with optimal costs for users. From there, they successfully built a technology product that attracted millions of users.

2.3 Financial technology (Fintech)

Fintech is a business model that applies technology to create financial products and services for online payment activities, electronic money, online lending... Some "big players" in this field are in Vietnam. Vietnam can mention MoMo, ZaloPay, GrabPay.

2.4 Educational technology (Edtech)

Edtech is a digital business specializing in providing online education services for all ages, helping learners flexibly access a variety of knowledge and skills and improve learning performance. Popular Edtech businesses today include Khan Academy and Udemy, providing materials for science, finance, and history subjects to millions of users worldwide.

2.5 Medical technology (Healthtech)

Healthcare is a field that always requires continuous improvement to create the best health care products for patients. Therefore, health technology (Healthtech) businesses need to keep up with the latest technology to ensure service quality for users. Some smart medical devices and software on the market include Vina Doctor, Zalo Health, Medlink,...

3. Characteristics of the digital business model

Besides the concept of what a digital business is , businesses need to understand the characteristics of this type to easily apply it in practice:

• Application of digital technology: The most characteristic feature of digital businesses is the application of technological achievements to automate and digitize business processes and operations. Some commonly used platforms today include Internet of things (IoT), Artificial Intelligence (AI), Blockchain, Machine Automation, Cloud Computing.
• Focus on customers: To be able to operate a digital business effectively, businesses need quality data. Based on the results of input data analysis, businesses will understand the habits, preferences, and shopping behavior of target customers, thereby adjusting services and products as well as creating good experiences. more for customers.
• Creativity and flexibility: Thanks to the process of rapid transformation and adaptation to trends, digital businesses often have flexibility and creativity in marketing strategies, meeting market needs well.
• Process optimization: Applying technology to business operations and management helps save time, improve efficiency and limit errors during the work process.
• Developing diverse products and services: With the support of technology, businesses can create many different products and services to best meet customers' desires. Besides, technology also helps digital businesses bring products closer to the right customer base.
• Ability to collect and analyze data: Digital businesses have the ability to collect and analyze data thoroughly to discover valuable information. From there, businesses will better understand customer needs, desires, market trends and increase competitive advantage.

4. Benefits when converting into a digital business

After understanding what a digital business is , surely businesses and administrators can see the great benefits that this model brings.

4.1 Cost savings

Converting to a digital business model will help businesses automate operating processes. From there, businesses can increase work efficiency and reduce costs related to human resources.

4.2 Enhance customer experience

The digital business model is based on detailed analysis of customer data to devise effective business strategies, while adjusting products and services to best suit the purchasing habits and needs of consumers. use. For example, CRM technology - Customer relationship management system helps businesses track customer information to provide appropriate solutions as well as build long-term relationships between buyers and sellers.

4.3 Improve work efficiency

Applying advanced technology to management, production and communication processes between departments in the business helps increase productivity, eliminate manual work and optimize performance. For example, some businesses use artificial intelligence in the production process to help minimize errors and increase product accuracy and uniformity.

4.4 Increase competition

Digital transformation in businesses helps enhance competitiveness in the market. Technological achievements such as Big Data, Blockchain and artificial intelligence help businesses collect valuable information about customers and the market. From there, businesses can come up with more effective business strategies to maintain their position and respond to rapid changes in the industry.

4.5 Recommend sound business decisions

Applying technology helps businesses limit decision-making based on emotions as well as minimize business risks. Businesses can also use this data to shorten decision-making time.

4.6 Market expansion

Applying advanced technologies in production and business helps businesses create new products to meet the constantly changing needs of customers. Launching new products quickly helps increase the ability to expand market share and increase competitive power for businesses.

4.7 Quick recovery

Thanks to technical and technological achievements, businesses have the ability to flexibly adapt to changes in the market. From there, limit negative impacts from the outside and quickly recover from risks and problems during operation.

5. Some challenges when digitally transforming business models

Although comprehensive digital transformation brings many benefits to businesses, this process is not simple, requiring a relatively large effort and investment from the business side. To accomplish this, businesses need to overcome challenges such as:

• High initial investment costs

Digital transformation in businesses requires new systems, technology and equipment. Businesses need to have an information security system as well as a team of operating human resources. The above initial investments can put pressure on the finances of small and medium-sized enterprises.

• Information security issue

The use of digital technology leads to security risks. Businesses need to ensure that internal and customer data is protected in the safest way, avoiding loss and disclosure of information.

• Infrastructure limitations

Businesses that have long-standing infrastructure systems face many difficulties in the process of integrating new technologies. Legacy systems are difficult to localize and lack flexibility in expansion.

• Lack of digital culture and mindset

To complete business digital transformation, businesses need to change culture, train employees to actively keep an eye on and absorb new technology. Fostering a culture that encourages experimentation, flexibility to change, and risk-taking is essential.

6. 1C:Company Management - Effective digital business transformation solution today

One of the outstanding features of digital businesses is the application of modern technology and software products into the business management and operation process. 1C:Company Management is a solution that automates business administration with the ability to connect all departments such as CRM - Warehouse - Finance - Human Resources and Payroll - Purchasing - Production.

1C:Company Management allows customization of features to ensure convenience during use as well as meet the needs of businesses in many different fields. 1C Vietnam is always ready to support customers in building professional and personalized systems. With the above advantages, 1C:Company Management is definitely a "powerful assistant" for the digital transformation process of businesses.

Hopefully through the above article, your business has understood what a digital business is , the benefits and importance of this process. Businesses can start the digitalization process by applying smart management software such as 1C:Company Management. If you have any questions about the product, please contact 1C Vietnam for support.