FPT’s Deputy General Director Hoang Viet Anh offers a roadmap of “big thinking, smart start and rapid replication” for businesses to transform into a digital business model.
A 2019 report of Forbes shows that 70% of companies either have a digital transformation strategy in place or are working on one, and 21% of companies think they’ve already completed digital transformation. According to Accenture, a management consulting firm, the digital business model creates new competitive advantages and sustainable growth for businesses in the future.
The question for several businesses is how to successfully transform into a digital model. Hoang Viet Anh, FPT’s Deputy General Director in digital transformation, suggests a wide range of processes and principles to help Vietnamese businesses implement digital transformation effectively.
Research, draft and roadmap
Sharing the viewpoint based on the FPT Digital Kaizen methodology, Viet Anh underscores big thinking as the most fundamental principle. Businesses need to develop a 3 to 5 year roadmap, in which determines their competitive differences, analyzes the recent trends and their rivals, and aims to digital transformation,
Businesses should focus on four aspects.
First, businesses address the core problems in their operations. Second, the digital transformation strategy provides a comprehensive, holistic process instead of single solutions. Third, the digital business model relied on the balance between business strategy, purpose, vision and mission about digital solutions. Finally, the roadmap includes specific guidelines, assessment methodology, KPI and budget.
Hoang Viet Anh cites Air New Zealand as a prominent example. It has transformed from the New Zealand’s biggest corporate failure, with losses of $1.3 billion, to one of the most sustainable airline in the world for more than a decade. Its secret is to build a well-rounded and effective roadmap.
Digital technologies, especially big data analysis, are the key for Air New Zealand to implementing the digital transformation process. In 2016, the airline appointed the former CEO of Google as the chief digital transformation manager, to reduce security risks, optimize customer experiences and increase tech benefits.
“Suitable technologies can bring efficiency to operations, customer care and competitiveness of businesses”, said Mr. Hoang Viet Anh.
As several priority challenges and limited resources are facing businesses, they need to “start smart” from issues that are vital and feasible in no more than 3 months.
When it comes to Air New Zealand, the airline started with customer services, the culprit for their revenue losses. They built an automated baggage drop system using biometric; created digital “security fencing” for unaccompanied juveniles; released safety instructions videos on several channels, including those with up to 15 million views on Youtube. As a result, the airline strives to create new experiences for both loyal and potential customers.
Replication and change management
“Effective digital solutions are those can be deployed on a large scale throughout the business”, said Hoang Viet Anh. This is also one of the most essential principle of the FPT Digital Kaizen methodology – “rapid replication”.
In moving forward with a digital transformation, every step should be closely linked to these principles. In addition, businesses should monitor and analyzes the efficiency constantly, and adjust the deployment to the market and their goals.
“Big thinking, smart start and rapid replication” are the three processes as well as the most basic principles that Vietnamese businesses can learn and apply to their operations. In Vietnam, several businesses have implemented these steps on the basis of cooperation with consulting firms and pushed digital transformation.
Take Home Credit as an example. With more than 11 million customers in Vietnam, on average, Home Credit handles thousands of incoming and outgoing calls, inquiries, questions and payment reminders each day. With the support of FPT, Home Credit rolls out its first virtual agent in Vietnam named FPT.AI Virtual Agent for Call center. After 6 months of operation, the solution allows businesses to handle tens of thousands of automatic conversations a day, equivalent to more than 90% of customer inquiries. Another example is FPT Spro. The solution allows a food and beverage company to achieve a wide range of profound outcomes: 70% reduction in time, 20% reduction in costs and 50% increase in productivity.
“With the FPT Digital Kaizen methodology, product ecosystem and experience in consulting and digital transformation projects, FPT is ready to accompany Vietnamese businesses on the journey of digital transformation, developing a digital economy in Vietnam,” said Hoang Viet Anh.
Source VnExpressRelated posts: