A panel discussion at a seminar on digital transformation held in HCM City on Friday. — VNS Photo

Vietnamese firms should embrace digital transformation to stay afloat in the Industry 4.0 era, delegates said at a seminar in HCM City on Friday.

Digital transformation is the application of digital technologies to change business models and create new business opportunities, and to increase revenue and value.

It can also change operation and leadership methods, working processes and corporate culture.

Ho Tu Bao, scientific director at the John von Neumann Institute of the Viet Nam National University of HCM City, said that firms that do not transform their business models to suit the digital era would lag behind.

In contrast, those taking initial steps to capitalise on the trend would gain a competitive advantage.

“Digital transformation is inevitable. When we cannot avoid it, it is important to understand it and map out suitable business plans,” he added.

Digital transformation was the core of the Fourth Industrial Revolution, he said.

Pham Huy Hoang, director of VNPT Information Technology Company’s VNPT-IT region 2, said his company had transformed its digital infrastructure and services and was now providing digital solutions for large corporations and enterprises in Viet Nam.

It is also enhancing cooperation with domestic and foreign partners to promote digital technology application.

Phan Thanh Nhon, director of the Business Studies and Assistance Centre, said that enterprises should not wait until they develop more strongly to apply digital technology, particularly in the context of the Fourth Industrial Revolution globally and a highly competitive business environment.

Digital transformation is costly but businesses can choose technologies that are suited to their demands and budgets and build their own database.

“Enterprises should map out investment roadmaps for their digital technology depending on their situation and scale, because if they do not do so, they will find it hard to grow,” he said.

Digital transformation brings many benefits such as cutting operating costs; reaching more customers in a shorter time; and making faster, more accurate decisions thanks to timely reporting systems, thereby enhancing the operational efficiency and competitiveness of organisations and businesses, according to delegates.

Bao said that digital transformation enabled businesses to change the way of interacting with customers, creates new value for customers, and helps businesses exploit customer networks.

Databases are an intangible asset of businesses, and can be used as a basis to create breakthrough innovations that bring new experiences to customers.

Bao also described six steps in digital transformation: awareness and changing mindset about digital transformation; defining the roadmap; building digital capacity (human resources and infrastructure); identifying key technology; changing operation models; and adjusting the organisation from small to large.

Nhon said the seminar was among a number of activities being held to help local businesses raise awareness about digital transformation. — VNS