Digital transformation (DX) is one of the hottest keywords sought by the business community since the 4.0 industrial revolution spread to Vietnam.
More and more businesses are realizing that digital transformation is a tough race that will make it difficult for them to keep up with the growth of businesses in the same industry.
According to a Vanguard group survey, in just over a decade, the life cycle of a company on the S&P 500 list has been shortened from 61 years to 18 years.
Four out of 10 Fortune 500 companies will leave the list within the next 10 years, leaving young companies quick to embrace technology to make a breakthrough.
The change of the S&P 500 list in a decade
Why is digital transformation so powerful? Let's see how DX benefits for businesses:
1. Enhancing the ability to coordinate work among departments
In businesses that haven't gone DX, departments often work independently, with less interaction preventing the flow of work.
When applying the digital transformation, the departments will work on a single platform. These platforms both support each department to perform well in its expertise and increase interactivity and coordination.
Digital platform helps connect departments and divisions in the company
2. Increase transparency in the governance system
Digital transformation helps report data to be automatically collected and ready for retrieval, thus ensuring transparency and objectivity.
For example, to calculate fuel costs, transport businesses must aggregate information about the fuel consumption of the entire fleet. If there is the dishonesty of a driver or a petrol station, the data will not reflect the actual cost.
But with a digital transformation tool like Dibee solution, the data is automatically updated in real-time. Thanks to that, management always has an accurate report on the situation of the fleet.
Digital transformation helps increase the automation of businesses
3. Improve productivity
According to a 2017 study of Microsoft in the Asia-Pacific region, digital transformation is expected to increase labor productivity by 21% by 2020, 85% of jobs in the region will be transformed in the next three years. follow.
Specifically, digital transformation tools help automate repetitive tasks, increasing employee productivity, and morale. At the same time, businesses also can optimize human resources.
For example, the time to check debts with suppliers and customers is often a stressful time for the accounting department. They have to be reconciled manually, which takes a long time and makes mistakes.
With digital solutions like Dibee, every invoice is automatically collected and stored on the system to help accountants do their jobs more quickly and easily.
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4. Enhance customer experience
In the era of 4.0, customers' behavior and needs are changing day by day. Without digital transformation, businesses will be hard to meet.
Customer Experience will be improved significantly with Digital Transformation
A prime example is the case of Nike. In order to improve customer experience, the company has issued electronic membership cards to collect customer information in the form of digital data.
This data is then analyzed by an algorithm to provide more reasonable promotions for each member.
As a result, despite being a footwear maker, Nike increased its sales by 36% in the first quarter of 2019 compared to the same period last year thanks to a wise digital transformation strategy.
Digital transformation is no longer an option but has become an indispensable development trend for businesses to stand firm and develop in a new context.
This can be a breakthrough opportunity for small businesses, it can also be a survival challenge for large businesses. It all depends on their thinking and behavior before the current wave.