Not all SMEs on right track digitally

Digital transformation is the key to competitive advantage in the age of technology-driven business, but few small- and medium-sized enterprises (SMEs) are doing it the right way.
Not all SMEs on right track digitally ảnh 1An employee using Base software to manage human resources. (Photo base.vn)
Hanoi (VNS/VNA) - Digital transformation is the key tocompetitive advantage in the age of technology-driven business, but few small-and medium-sized enterprises (SMEs) are doing it the right way.

Nguyen Duc Minh, Digital Transformation Manager at the FPT Digital, assertedthat some SMEs had not found the solutions to their core digital problems, yetthey still spent a lot on development and research. Such decisions wouldpour resources down the drain and lead them nowhere.

The manager suggested that SMEs seek solutions to three key problems, therebyimproving their financial situation and resource efficiency: customerexperience, operational improvement, and data gathering.

"Customer experience should be put on top of SMEs' agendas as bettercustomer experience means more profits and fewer resources wasted," hesaid.

The manager also underscored that SMEs are less financially able than largefirms, so they would instead focus on "quick win" ideas, whichhave immediate benefits and can be delivered quickly, to gain ground.

"SMEs are more flexible management-wise and more adaptive to changes.That's their advantage over large firms," he added.

Nguyen Dang Hanh, Chairman of the Vietnam France Exchange and the VietnamArteco Trade and Construction Consultants JSC., remarked that hisenterprise expects three goals when seeking solutions to their digitalproblems.

First, the solutions should allow managers to stay well-informedabout works in progress and develop good ideas to accelerate the work.

At the same time, they should help employees know what works to focus on andhow to do the work effectively and efficiently.

Second, the solutions should enable across-the-board business analysis, wherebySMEs could discover their strengths, weaknesses, opportunities and threats, andpotential market niches for themselves.

Lastly, the solutions should allow efficient management of the customer base,which is the key to competitiveness, reputation and growth in the long term.

Trinh Ngoc Bao, CEO and founder of Base. vn, revealed that his enterprise hadtried to find a universal solution to all SMEs' digital problems. What theenterprise had created was helpful to some but not universal.

"In every 10 customers, only three to four found the solution useful.The rest said it was impractical," he said.

One lesson he has learned from the failed attempt is that there is no suchthing as a "universal solution to all digital problems". Everydigital problem is enterprise-specific and solvable only by strict compliancewith scientific methodology.

"Buying new software does not mean embracing digitaltransformation. Without scientific methodology in management, software onlycreates misleading reports and data," he said.

According to the Vietnam Software Association, about 15% of Vietnameseenterprises have been implementing digital transformation. Of which, 99%face financial difficulties following the trend and think that digitaltransformation is affordable only to big names.

A report of the Vietnam Chamber of Industry and Commerce shared this view,showing that costs related to high technology were a significant obstaclein the way of SMEs./.
VNA

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