The year 2020 is filled with challenges, upheaval and uncertainty. Tens of thousands of businesses fall into bankruptcy, but there are still businesses that seize opportunities, optimize their operating systems to increase response speed, agile development and success.
According to research by McKinsey, rigid traditional operating models have been facing challenges: rapidly changing business environments, increasing demand from customers, suppliers and business partners, Investors requires higher profit margins, not having pressure decrease from competitors.
Especially, when Vietnamese businesses they have just sparked a ray of hope after 88 days of COVID-19″cleanliness”, they continue to be affected by the germ of the third pandemic wave on the days close to the 2021 Lunar New Year.
In that context, the business operation model is required to shift and change, meet the exact speed of market demand. The flexible operating model is considered to be an inevitable trend of the future by major consulting firms in the world.
Digital transformation businesses can easily overcome Covid-19 pandemic.
From a positive perspective, the current Covid-19 pandemic is really an opportunity for businesses to realize the superiority of the digital economy and create more urgency in the digital transformation process of businesses. In the context of the whole world social isolation – the undesirable thing of any business has made digital transformation into a dilemma on a global scale.
The economic shock caused by Covid-19 also made the entire Vietnamese enterprise fluctuate. Business groups directly affected such as tourism, airlines, restaurants-hotels … have all fallen into a “frozen” state in the past time. Turnover of enterprises in 2020 dropped sharply, even a loss. A series of trade promotion and investment plans were delayed, significantly affecting business operations of the following quarter and year. Along with the sharp decrease in revenue compared to the proposed plan, businesses still have to incur fixed costs such as salaries and related fees for employees, interest expenses, and renting premises. …
The difficulties in the market, revenue sources, and cash flow have made enterprises use related measures such as labor cuts in nearly 30% of enterprises, over 21% of enterprises for unpaid leave from workers and nearly 19% of businesses have reduced wages.
Digital transformation is an opportunity for businesses to recover and thrive in the coming time
According to experts, in the recovery time after the Covid-19 pandemic, the digital transformation trend will help Vietnamese businesses overcome this difficult situation. Also according to recent records, businesses in almost all sectors and fields have applied technology solutions to the management and operation, digitized production lines, and applied sales automation, to powerfully digitalize business data. Especially since the enactment of the nationwide social isolation, the digital transformation trend has been actively promoted by businesses. This helps businesses reduce operating costs, production costs, thereby the transformation towards digital transformation has solved the efficiency and revolutionary problem. There were a lot of successful digital transformation businesses before the Covid-19 incident. Because most of these businesses have a long-term strategic vision, are proactive in automating business operations, and above all, they have an awareness of the technology impact, of the benefits of digital transformation on productivity and work efficiency.
The epidemic has had a significant impact on most fields and industries. Especially businesses such as tourism, airlines, restaurants-hotels, F&B, … are suffering heavy losses. But that also does not make businesses with innovative thinking and grasping the time of standing still in the battle, many solutions have been given to overcome the situation. In particular, retail businesses actively deploy multi-channel sales, moving from physical shopping to e-commerce platforms and online sales channels. Or, as many businesses have promptly changed to adapt to the regulations of social distance by proactively planning for employees to work from home, digitizing business operation processes, automating job management, automatically assign work to limit employees working in the office. Enterprises have changed their mindset to survive and develop, built a direction to work remotely not only in Covid-19 period but also applicable at any time and in any future circumstances.
The business’s rapid and strong digital transformation efforts are detailed in the steps of digital transformation:
The Prime Minister has approved the national digital transformation program up to 2025 with a vision to 2030, defining a vision for Vietnam to become a digital nation and pioneering the testing of new technologies and models. The national digital transformation program integrated with the national sustainable development and competitiveness program will form the pillars, boosting the country’s economy in the context of the COVID epidemic that is causing the crisis global crisis.
To move towards the future of a strong digital transformation for Vietnamese businesses, businesses need to boldly innovative their thinking, shape their operating strategy and business model. Besides, it is necessary to define the future governance model based on digital technology, towards more innovative, sustainable and inclusive development goals. In particular, businesses need to focus on promoting investment in abundant and skilled human resources in addition to synchronous infrastructure. With innovative thinking direction and clear strategy, together with the help of digital transformation technology solutions and good operating processes, Vietnamese businesses can absolutely have a resilience to create a strong foundation. probably in the future.