Accesstrade CEO Do Huu Hung: Digital transformation is a story about strategy and new thinking

Reporter of Industry and Trade Newspaper had an interview with CEO of Accesstrade Do Huu Hung to better understand this issue.

Sir, how do you evaluate the digital transformation process of the Industry and Trade sector in general and of enterprises in particular today?

Over the past 20 years, the story of digital transformation has been mentioned a lot. However, many people still wonder about the destination of digital transformation and what is its journey like?

CEO Accesstrade Do Huu Hung

In my opinion, the story of digital transformation is not only for the industry and trade sector in general but also for businesses in particular.

Because, looking back to the year 2000, the world's number 1 companies were mostly energy companies, retail companies... or corporations specializing in manufacturing lighting equipment like the one founded by Thomas Edition. However, after about 10 years, the companies that are gradually dominating are named Facebook, Apple, Alphabet...

Today, not only the above mentioned large enterprises, but almost 80% of the Top 40 leading enterprises in the world are technology companies. Meanwhile, energy companies, retail companies are gradually falling behind.

The reason why technology corporations and companies are gradually dominating today is that all of the above businesses are characterized by Digital DNA (digital structure). We will see that all businesses with Digital DNA have extremely strong development. On the contrary, businesses without Digital DNA are facing many difficulties, not only now but also in the future.

Could you elaborate on the characteristics that Digital DNA brings to digital transformation businesses today, sir?

A digital enterprise, also known as Digital Enderprise - a term defined and affirmed by the world - is the destination of the digital transformation process. In addition, we can see that the characteristic of a digital enterprise is to apply technology to digitize the entire enterprise and transform core competitiveness from both inside and outside.

These businesses have three very interesting characteristics. First, they expand without borders. For example, the story of Amazon, Facebook, and Tiktok. They can grow without being limited by borders. Second, they operate extremely intelligently. Through smart business management tools, many business owners can operate a large system without having to look at reports, or through a consulting department, a communications department, etc. Third, they are extremely efficient. Businesses such as Facebook, Google, etc. have annual revenue of several hundred billion dollars, but profits account for about 40%. In contrast, traditional sales companies can have revenue of several thousand billion dollars, but profits are sometimes very low, only a few percent.

Nowadays, the advantage of companies that utilize digital technology is that they often connect with customers via the Internet and video. From there, customers themselves will play the role of promoting and communicating products for those businesses instead of using TV advertising like traditional businesses. All digital businesses today recognize the important role of customers. They compete by building a complete digital ecosystem.

In your opinion, what is the difference between a traditional business and a digital business, and can you point out the values ​​that digital transformation brings to businesses?

There are some clear differences between traditional businesses and digital businesses. Firstly, the customers of traditional businesses are mostly simple, while digital businesses are very diverse.

Digital transformation is not about technology, it is about strategy and new thinking.

Second , traditional business models in the past focused mainly on a few areas. Digital businesses have many different business models.

Third, resources in the past were entirely dependent on internal capacity, internal personnel, and internal capital. Digital companies, on the other hand, use external resources.

Fourth, management in the past was often very emotional, depending on a few leaders and the emotions of the leaders. In today's businesses, management depends on data, systems and documents.

Fifth, the old culture was very closed and difficult to open up, while today's businesses are very creative and continuous.

Finally, to build a complete digital business, I think that, besides the strategic story, a digital business needs two very important parts. First of all, it is the online sales channel system from Facebook, from Google, then the conversion system from App, Web... to make it automatic, the system can sell millions of orders.

In addition to the above factors, it is important to have a technology platform. Without that technology, we cannot grasp information and make decisions.

In addition, an important factor that most Vietnamese businesses currently lack is called Coordination innovation (flexible and centralized management). The most difficult thing is that we need to build a digital workforce and a digital culture.

In general, digital transformation is not a matter of technology but a matter of strategy and new thinking. Furthermore, digital transformation of enterprises is not about investing in information technology and not only improving infrastructure issues but also about strategic awareness. The last thing is the competitiveness and self-motivation to grow of each enterprise.

Thank you!

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