A digital transformation framework for SMEs is demanded

DNHN - The current realities and barriers in the digital transformation process, according to Mr Nguyen Xuan Hoang, Vice Chairman of the SME Digital Transformation Committee, VINASA, demonstrate the need for a digital transformation framework for SMEs, assisting SMEs businesses step by step digital transformation, where to start, what to do, how the roadmap, and at the same time suitable to the size and type of each business.

Since 2018, Vietnam has been contemplating digital transformation. Until now, digital transformation has become a popular term, a hot topic raised in everything from high-level agendas to everyday stories of individuals and enterprises. Hundreds of thousands of SMEs, on the other hand, are grappling with digital transformation and are unsure where to begin. Meanwhile, SMEs constitute more than 98 per cent of all firms in Vietnam.

According to Ms Nguyen Ha Giang, Deputy Director of the Business Center, FSI Technology Development and Trade Investment Joint Stock Company, if SMEs want to succeed in digital transformation, they must begin transforming from the top. Business executives must agree on and commit to digital transformation while also developing an overarching plan. 

Following that, it is vital to establish and implement goals and roadmaps for each step. Finally, firms must create an entire data warehouse and employ 4.0 technologies such as AI, Blockchain, and Cloud to develop new products and business models.

Mr Dang Duy Khanh, Director of Digital Transformation for SMEs, VNPT Group, who has assisted hundreds of enterprises around the country with digital transformation, stated: "When it comes to digital transformation, digital leadership is the first component. We think that digital transformation is more about business than it is about technology. Customers, workers, operations, and products are four important pillars that revolve around leadership, which is at the core of the digital transformation process. VNPT also creates a digital transformation framework for SMEs."

The realities and challenges in the digital transformation process, according to Mr Nguyen Xuan Hoang, demonstrate the need for a digital transformation framework for SMEs to aid firms step by step in digital transformation, where to start, and how to accomplish it. what, the plan, and suited for the size and style of each organization Businesses must know how to find the correct solution and supplier in the market after identifying the digital transformation strategy and process.

VINASA has chosen 26 sectors to design a digital transformation framework that is most suited for Vietnam's SMEs by combining experience, present circumstances, growth patterns of each industry, and references to reference models.

Each field's digital transformation framework is made up of five essential components. Part 1 is about the existing status and the path of development. Provide an overview of the present state, models, and types of enterprises in each sector, as well as future development patterns in that industry.

Part 2 is a digital transformation guide, and it is the most significant part, with a set of specialized solutions that are only required by organizations and businesses in the production and commercial domains. This solution set is separated into three tiers. These are the three stages of digital transformation for a business: preparation, development, and breakthrough.

Essential operations such as business/sales, production, and customer support all employ digital platforms and solutions at the readiness level. Development level targeted toward digital transformation for productivity-boosting automation. The breakthrough level analyzes business projections using data, big data, and AI, therefore uncovering new markets and producing new goods and services to assist organizations in developing breakthroughs.

Part three of the digital transformation framework is the package of solutions. This is the distinction in VINASA's guiding documents: for each tool, SMEs require in digital transformation stages, VINASA has established a set of associated solutions.

Part 4 includes training ideas for digital skills. People will determine whether or not digital transformation is successful. As a result, all VINASA guidelines propose that executives and staff be taught digital capabilities. Personnel is categorised based on system needs and qualities that require training.

Part 5 is a collection of evaluation criteria that SMEs may use to self-assess their level of digital transformation.

Mr Nguyen Xuan Hoang highlighted: "We believe that by using this digital transformation framework, SMEs will know where to begin, self-assess their digital transformation condition, and select products, solutions, and providers. level to meet demands, assisting businesses in transforming digitally as quickly as possible ".

Hai Anh