The fourth industrial revolution is making great strides. New ecosystems and business models are bringing great challenges and opportunities for individuals, businesses, and Vietnam. FPT IS’s Chief Technology Officer Phan Thanh Son gave a positive view on the digital transformation of the country and businesses in the talk at the beginning of 2018.
Vietnam in 2018 under the impact of the fourth industrial revolution
Commenting on the impact of the fourth industrial revolution on Vietnam in 2018, Phan Thanh Son said that the fourth industrial revolution is shaping a new order in the world, creating challenges as well as great opportunities for individuals, businesses and the economy of Vietnam.
In 2018, the domestic business environment is expected to be more favorable with new support policies; strategies will be adjusted, implemented by specific actions to support businesses, industries, and individuals in Vietnam, accessibility will be enhanced in the fourth industrial revolution.
At present, there are three major digital transformations in Vietnam: the transformation from Government to digital Government from the central to local levels; the transformation from cities to smart cities and the transformation from businesses/industry to businesses/industry 4.0.
Influence of automation and robotization
Automation is not new, it has existed since the industrial revolution (the first time and the second time) with mechanical and electrical technology. In the industrial revolution 3.0, the development of electronic technology has enabled automation to grow to a new level with more sophisticated automation control systems.
Robots were also studied and applied during this period. Industrial Revolution 4.0 is a revolutionary, fast, systematic change made by new technologies such as AI, IoT, robotics, Big Data/Analytics, new materials, biology, printing. 3D, self-steering, blockchain… It blurred the boundaries of the digital world, the biological world, and the physical world.
“Digital copies” were created in visualization (research, development, design), realization (production) and manipulation (operation, use) in which new forms of different robots and automation have been created.
As a result, components, concepts, and relationships in the whole value chain will change from supply chains, factories to logistics, ecosystems, supply, and demand. New models such as the shared economy, circular economy, platform economy, etc will replace traditional models.
Technology companies will replace traditional companies not only in finance, taxi/logistics (Uber, Grab), hospitality (AirBnB) but also in the medical sector (MedTech), insurance (Insutech), agriculture (Agritech), etc.
Many countries will no longer have the advantage of cheap labor as well as the opportunity to build “the factory of the world” but instead, the advantage will belong to the new workforce including “new collar” workers (rather than “blue collar” workers in the 2.0 revolutionary industry and “white collar” workers in the 3.0 industrial revolution) working together (probably telecommuting) or teaching robots (visible or invisible) in the “digital factories” (operate 24/24 without light),…
It is certain that this trend will have a big impact on Vietnamese businesses because of the re-arrangement of the value chain. If they fail to catch up and change, their businesses will go down to the bottom of the value chain or be eliminated at any time as new laws can be programmed, analyzed and decided in a snap.
Vietnamese enterprises welcome challenges
According to Phan Thanh Son, the mission of FPT IS is “Pioneering in the digital transformation to create a digital power for our customers.” This is reflected in the long-term strategy from 2018 to 2020, focusing on developing solutions for digital transformation for both the government, the state, and enterprises. This will help businesses to successfully transform to contribute to the country.
He also emphasized the importance of raising awareness, clearly stating that, in the industrial revolution 4.0, entrepreneurs need to have right strategies and decisions for their business. Entrepreneurs should read “The Fourth Industrial Revolution,” published in early 2016 by Professor Klaus Shwab, WEB’s president, and his publication “Shaping the Fourth Industrial Revolution,” published in early 2018.
To apply to Vietnam, read the book “Vietnam with the Fourth Industrial Revolution” published by National Economic Publishing House in late 2017 by TSKH. Prof. Nguyen Van Binh, Head of the Central Steering Committee with the participation of nearly 20 PhDs, masters, leading experts in many central agencies, research institutes and fields.
“I often say in talks about the industrial revolution 4.0 with business leaders that formerly concepts, books on the industrial revolution were often written after these industrial revolutions happened or are identified clearly. This time, the concept was introduced early when the new 4.0 revolution was just formed so it was impossible to avoid subjective doubts,” Son said.
Changes of the 4.0 revolution happen at an unprecedented speed, so when we see things slowly, it means we’re too slow. President Abraham Lincon said, “The best way to predict the future is to create it.”
There are generations whose mission is to follow an ongoing industrial revolution. The current generation has a mission to embark on a new industrial revolution. Let’s take action by raising awareness, do not be too greedy, and hurry to act to create a good future for your business.
Truong Gia Binh said at the launching ceremony of “FPT 30 years of pioneering” at FPT IS: “FPT IS is the place where FPT is the pioneer of pioneering”. That is “opportunity“.
“The right moment” is the time when the fourth industrial revolution took place globally. It was welcomed by Vietnam with a high determination; when the country is transforming itself into a “second innovation” under the leadership of the government with the motto of creating and acting.
The “human factor” is also more advantageous than ever when people, businesses, countries, and even FPT itself, FPT IS are having strategic relationships, pioneering cooperation in the digital transformation to create a brighter future.
Digital technology creates the premise and the inspiration for FPT IS to have an advantage.
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