Digital transformation in enterprises is a mandatory requirement for enterprises to soon adapt themselves to opportunities for the sake of production and trade development amidst the burgeoning global international integration. In order for enterprises to effectively conduct digital transformation, above all, they must focus on the human factor, exactly the role of leaders and managerial staff.

Changes in the perception and thinking of the leadership on digital transformation, create favourable conditions to promote sustainable development of local businesses. Digital transformation brings efficiency in the production at the An Thinh Phat Investment JSC based in Da Nang Industrial Park. Photo: CHIEN THANG

The role of a leader is crucial when the organization goes through any change or takes up any new initiative. Leading a digital transformation initiative comes with a whole new set of challenges and leadership challenges.

Change mindset from leadership

In Da Nang, there are many businesses that are bright spots in digital transformation, as a good example for others to follow. Mr. Ha Duc Hung, the General Director of Ha Giang Phuoc Tuong Mechanical JSC based in the Hoa Cam Industrial Park said that his business has been operating for a long time in the field of manufacturing equipment for industry.

Previously, the enterprise mainly managed records, data, customer / employee information via books and input data into applications available on computers such as Microsoft Office that was then saved into computer hard drives or USB, memory cards and floppy disks. This brings many risks and errors if those data are not well preserved as well as the lack of specificity suitable for each job task.

Since accessing new applications and programmes to help manage, backup data, operate the system via cloud data, blockchain and other tech apps, the company has made the purchase of these apps for their application in coporate management and manufacturing tasks. After the implementation period, the apps have proven highly successful in digital transformation as corporate revenue and work completion progress has been better than before.

Mr. Nguyen Hong An, the Director of An Thinh Phat Investment JSC shared that, thanks to effective digital transformation process, this year, the company saw a rise of 17% in the number of orders as compared to 2021.

“In the past, due to the usage of manual tools and outdated IT software, the company could not operate effectively. Since applying applications and data in digital transformation such as Big Data, AI, IOT, cloud computing and blockchain, the company has seen an increase in the processing speed of millions of order data in production and export with just software managed on smartphones and tablets. This helps the business a lot in export and import management, ensuring the security of enterprises through specialied software and applications," said Mr. An.

Leaders take the lead

According to the experience of Mr. Nguyen Tu Quang, the Chairman of BKAV Technology Group, the top leaders of businesses need to know how to help their employees understand the importance of digital transformation and must also be the pioneer in absolutely following the digital transformation process as a bright example.

During a digital transformation, leaders usually face challenges in the form of employee resistance, lack of expertise, limited budget, and more.

Digital transformation requires employees to upskill and be well-versed digitally. Not every employee will be ready to undergo the change or a rigorous training programme. In this case, it becomes challenging for leaders to motivate the employees and push them to adopt new processes and digital technologies.

Another challenge involves the leaders themselves not having the right expertise to lead a team through the transition. Either they lack the requisite communication or the leadership skills to motivate the team.

Or, they do not want to let go of the old practices and come out of their comfort zone.
At times, leaders have to find a way to manage the digital transformation despite minimum budget allocation. They shall make the best use of the resources and achieve the digital transformation aim.

Deputy Director of the Da Nang Department of Information and Communications Tran Ngoc Thach said that digital transformation is, first of all, a change in perception and opinion from the leadership team. The next step is to spread inspiration and determination to the members of the unit. Digital transformation strategy not only depends on technology but also people, thinking, methods, implementation process and corporate culture.

The advantages and benefits from digital transformation are huge, by bringing modern technology into traditional business and operation processes, it can help businesses positively change their operating methods, work practices and internal culture.

With Big Data alone, businesses can optimise time, resources, and geographic coverage to assess potential customers, the risk of customers leaving the system, or the risk of the system not responding customers’ need.

Digital transformation is a process that requires a thorough and long-term investment in both human resource and capital.

Reporting by CHIEN THANG - Translating by A.THU