Digital transformation and data investment: the future trend

Wednesday, Oct 25, 2023 15:20

Việt Nam has set a target to achieve a contribution of 20 per cent to the GDP from the digital economy by 2025. — VNA/VNS Photo Minh Sơn

Three out of top ten Vietnamese domestic brands have demonstrated commendable business performance in 2022, closely linked to their extensive digital transformation activities, according to the Vietnam Customers Experience Excellence (CEE) report by KPMG for the year 2022.

Specifically, Viettel Group, for example, has announced that the total revenue reached VNĐ163 trillion, with pre-tax profit exceeding VNĐ43 trillion. These numbers represent a growth of six per cent and three per cent respectively compared to the previous year, marking the highest profit level for the group in the past five years.

Phú Nhuận Jewelry Joint Stock Company (PNJ) achieved a net revenue of VNĐ33,876 billion in 2022, a substantial increase of 73 per cent compared to the same period. Sacombank also reported a pre-tax profit of over VNĐ6.3 trillion, showing a significant increase of 142 per cent.

Businesses in Việt Nam and around the world in general are making strong investments in technology, including automation on data platforms, analytics, and artificial intelligence. These investments have two main objectives - to increase operational efficiency while reducing costs, and to enhance values and customers’ experiences.

Việt Nam has set a target to achieve a contribution of 20 per cent to the GDP from the digital economy by 2025, and 30 per cent by 2030.

Hạnh Nguyễn, co-founder of Syllog. — Photo courtesy of Syllog

However, during the process of digital transformation, businesses are facing barriers such as the leadership's awareness and mindset towards digital transformation; negative attitudes of employees, group interests, fear of multitasking; or concerns about data loss and security, among others.

Such obstacles are evident in the cases of clients that are consulted by Syllog, a Singapore-based company that provides consulting services in digital transformation and technology implementation, from 2021 to 2023.

"The most important aspect of digital transformation for a company, in addition to creating a culture of utilising data and automating processes on a data platform, is to establish a foundation and save resources for the company to transition to the data analysis and artificial intelligence phase, enabled by a standardised data system" said Hạnh Nguyễn, co-founder of Syllog.

“When properly advised and implemented, digital transformation enables businesses to unlock their potential, optimise resources, and achieve sustainable development,” she added. — VNS

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