How have Vietnamese and global businesses undergone digital transformation?

Digital transformation is the process of integrating digital technology into an organization's business, production, and management activities, aiming to enhance efficiency, and competitiveness, and create new value for customers. Digital transformation is not only about using digital tools, but also about changing the culture, mindset, and ways of working within the organization.

In this article, we will introduce some real-life examples of successful digital transformation in Vietnam and around the world, so that you can learn from them and apply them to your work.

1. 1. Vinamilk: From Traditional Dairy Business to Digital Dairy Business

Vinamilk is one of the leading dairy companies in Vietnam, with nearly 50 years of experience in this field. However, to maintain its position and achieve sustainable development, Vinamilk has continuously innovated and undergone digital transformation across its value chain.

One of Vinamilk's important steps is the establishment of an intelligent supply chain management system (SCM), combining technologies such as IoT, AI, Big Data, etc., to monitor and coordinate all activities from raw materials to the final product. As a result, Vinamilk can optimize costs, enhance quality, and strengthen its ability to respond to market fluctuations.

In addition, Vinamilk has also applied digital technology to other activities such as developing online sales channels, creating smart milk products with integrated electronic chips to monitor and manage the condition of dairy cows, and using robots to automate the production and packaging processes...

Thanks to digital transformation, Vinamilk has increased its revenue from 52,629 billion Vietnamese dongs in 2018 to 59,723 billion Vietnamese dongs in 2020, leading the dairy industry in Vietnam with a 45% market share.

2. 2. VNG Corporation: From Online Gaming Company to Leading Representative of the Digital Economy

VNG Corporation is one of the top technology companies in Vietnam, operating in various fields such as online gaming, digital media, electronic payments, online education, and digital healthcare. VNG was established in 2004 under the name VinaGame, specializing in the development and distribution of popular online games such as ZingPlay, ZingSpeed, Kiếm Thế, Võ Lâm Truyền Kỳ, etc.

Later, VNG expanded its operations to other areas such as Zalo (a messaging and free calling application), Zing MP3 (an online music streaming service), Zing News (an electronic news website), ZaloPay (an electronic payment application), Zalo Business (a platform connecting businesses and customers),...

VNG currently has around 5,000 employees, serving millions of users nationwide and in several other countries. VNG is also the first Vietnamese technology company to receive investment from Tencent, one of the technology giants in China.

VNG is a typical example of successful digital transformation in Vietnam because:

• - VNG has understood market trends and demands, continuously innovating and creating products and services that cater to users' needs.

• - VNG has built a diverse and interconnected technological ecosystem, enhancing value for both the company and its customers.

• - VNG has developed a startup culture, flexible and adaptable to changes, nurturing talent and promoting collaboration.

3. 3. Netflix: From DVD Rental Service to the King of Online Content

Netflix is a prime example of successful digital transformation worldwide. Founded in 1997, Netflix initially started as a DVD rental service through mail delivery. However, Netflix recognized that digital technology would be the future trend in the entertainment industry and proactively shifted to an online streaming service in 2007.

Netflix fully leveraged the advantages of digital technology by using big data and artificial intelligence to analyze user behavior and preferences, thereby providing personalized movie recommendations and enhancing the viewing experience. Netflix also invested heavily in producing exclusive and high-quality content to attract and retain customers.

Through digital transformation, Netflix has become the king of online content, with over 154 million users worldwide and a revenue of $29.7 billion in 2021. Netflix has also created many popular movies and TV shows such as House of Cards, Stranger Things, The Crown, and more.

4. 4. Grab: From Ride-Hailing App to Super App Platform

Grab is a ride-hailing application that was launched in 2012 in Singapore with the aim of improving safety in taxi transportation in the Southeast Asia region. However, Grab doesn't just stop at providing transportation services but has also expanded into other areas such as delivery, online shopping, e-wallet, and financial services.

Grab has established itself as a super app platform, meaning an application that can meet various needs of users in their daily lives. Grab has utilized digital technology to connect various stakeholders such as drivers, merchants, consumers, financial partners, and more, to create a sustainable and thriving digital economy ecosystem.

Thanks to digital transformation, Grab has become one of the most valuable startups in the world, with 214 million users and operations in over 400 cities. Grab has also contributed to addressing social issues in the Southeast Asia region, such as creating income opportunities for millions of workers and reducing air pollution.

5. 5. Amazon: From Online Bookstore to E-commerce Giant

Another example of successful digital transformation in the world is Amazon. Amazon is one of the largest and most influential companies in the e-commerce and digital technology field. Amazon started as an online bookstore in 1994 but later expanded into various other areas.

Amazon has used digital technology to improve customer experience, optimize operations, develop new services, and differentiate its brand. Some notable products and services of Amazon include Kindle (e-book reader), Prime (fast and free delivery service), AWS (cloud computing service), and Alexa (smart virtual assistant). Thanks to digital transformation, Amazon has become one of the most valuable companies in the world, with a revenue of over $513.98 billion in 2022.

Thus, we have seen some real-life examples of successful digital transformation by businesses both domestically and internationally. Digital transformation is not just a mandatory trend but also an opportunity for companies to leverage digital technology to create differentiation and bring value to customers. We hope this article provides you with useful information and insights for your digital transformation journey.