White paper recommends businesses embrace digital transformation to unlock value

Tiếng Việt

White paper recommends businesses embrace digital transformation to unlock value

A newly released white paper by RMIT Vietnam researchers can help businesses to take their first step in digital transformation, by showing them how to plan for the huge opportunities on offer.

The report is based on findings from surveys, interviews and focus groups conducted between 2019-20 with middle- to senior-level managers at state-owned enterprises (SOEs) and small- to medium-sized enterprises (SMEs) operating in Vietnam.

RMIT researcher and Head of the Centre of Digital Excellence Associate Professor Jerry Watkins said that business leaders seem generally confident or positive about digital transformation and the need to move their industry or their company into the digital space. However, the analysis of responses by industry sector (primary, secondary and tertiary) indicates slightly different priorities for digital transformation across each one.

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Digital transformation goals of SOEs and SMEs.

“Our research team found that a significant barrier for some SOEs and SMEs is a lack of leaders who both speak and understand the language of digital,” Associate Professor Watkins said.

The researchers investigated two critical capabilities required for a successful digital transformation by businesses.

“Transformation management capability is based on three concepts: governance, strategy and culture. It describes how effectively the leadership team guides its enterprise – including its staff, suppliers and customers – towards digital transformation,” he said.

“Whereas digital capability describes how the enterprise leverages data-oriented technologies such as AI, cloud computing and internet of things, to scale operations, engage customers and add value.”

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Digital transformation goals by sector.

Companies from the secondary sector – including manufacturing and construction – don’t appear as ready for digital transformation as those from the primary and tertiary sectors.

“In terms of transformation management capability, managers and leaders from the secondary sector reported and inconsistent and/or poorly oriented digital transformation strategy, with a comparatively low level of interaction within the enterprise around digital transformation,” Associate Professor Watkins suggested.

“Businesses within this sector reported a somewhat negative perception of data-oriented technology investment and digital competencies among staff.”

Associate Professor Watkins emphasised that the ambition of digital transformation goes well beyond digitalisation in order to create “entirely new business models that undermine existing ways of delivering services”.

“We are not talking about using digital technology for a one-off improvement to existing processes. Neither should we expect a short-term return on investment,” he said.

“Instead, a genuine digital transformation innovates the business model, using operational and customer data to create new value over an extended period.”

The research team acknowledges that digital transformation is difficult, and every enterprise will take a different approach – so there is no clear roadmap.

Based on the research outcomes, the team suggests three major steps towards planning, building and adapting successful digital transformation which should be taken by those leaders who are genuinely committed to the huge opportunities that digital transformation can offer.

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The RMIT Vietnam research team suggests three key steps towards planning, building and adapting a successful digital transformation journey.

These steps are:

Planning
- Draw the bottom line
- See the big picture
- Valuing data
Building
- Calling your business to action
- Digital pilots for new ideas
- Goals, resources, and funding
- Build both digital and transformation management capability
Adapting
- Motivate, share, and upskill
- Evaluate and adapt your plans
- Keep seeing the big picture

Other research team members from RMIT School of Business & Management include the Lead of the Smart and Sustainable Cities Hub Associate Professor Nguyen Quang Trung, Dean of the School Professor Mathews Nkhoma, doctoral student Nguyen Le Hoang Long, and CODE Research Associate Vo Khanh Thien.

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The white paper was presented at the Smart & Sustainable Cities Forum 2021 organised by RMIT University in Vietnam.

The paper was presented at the Smart & Sustainable Cities Forum 2021 organised by RMIT University in Vietnam which brought together the public and private sectors to discuss critical sustainability issues related to the development of Vietnam’s urban centres.

Download the full paper here.

Story: Ha Hoang

Business and management

07 December 2021