Digital platforms will be regarded as 'soft infrastructure' of the digital space, enhancing the value of digital transformation.
The areas where digital transformation is prominent in cloud governance are finance and banking, transportation-logistics, and wholesale/retail industries.
The Vietnam Software and IT Services Association (VINASA) announced the priority economic sectors of the National Digital Transformation Program during the Vietnam DX Day 2021 event on May 5, 26. VINASA has announced eight core areas: ① Finance ② Health ③ Education ④ Agriculture ⑤ Transportation and Logistics ⑥ Energy ⑦ Natural Resources-Environment ⑧ Manufacturing. Afterwards, on December 2021, 8, the Ministry of Information and Communication (MIC) went one step further in the 2021 fields selected by VINASA in the National Digital Innovation Program at the National Digital Enterprise Development Forum, which marks its third this year, and digital transformation in 11 groups and 8 fields. platform was announced.
The first of the six fields selected by the Ministry of Information and Communication at the National Digital Enterprise Development Forum is a digital infrastructure platform. According to Microsoft, cloud governance (Enterprise Cloud Governance, ECG) refers to setting expectations that companies want to achieve through the cloud and maximizing business performance. Among these, sectors where digital transformation is prominent in Vietnam's cloud governance are finance and banking, transportation-logistics, and wholesale/retail. In this overseas market news, we will meet local companies that have expanded their businesses compared to the existing ones, with digital transformation prominent in the financial and wholesale/retail industries.
Vietnam Enterprises’ Digital Transformation Success Case 1, Financial Industry, Interview with CEO of SeA Bank Le Thu Thuy
KOTRA Hanoi Trade Office conducted a written interview with Le Thu Thuy, CEO of SeABank, about digital transformation in the financial sector.
Q1. Please give a brief introduction to SeABank.
A1. Established in 1994, Southeast Asia Commercial Equity Bank (SeABank) is one of Vietnam's leading equity commercial banks with approximately 2021 million customers, more than 9 employees, and more than 160 branches as of September 4,000. SeABank has established itself as a leader in the Vietnamese banking industry through a customer-oriented strategy that provides a variety of financial products and services to individuals, small and medium-sized enterprises and large corporations. SeABank is rated B180 by credit rating agency Moody's and meets Switzerland's Basel II standards.
Q2. What do you think of digital transformation?
A2. SeABank believes that digital transformation is a key factor underpinning our dynamic development. We are continuously upgrading our infrastructure for digital transformation, investing in advanced artificial intelligence systems that improve the customer experience and optimize banking operations.
Q3. Please provide a brief introduction to SeABank's path to digital transformation.
A3. Since 2005, we have invested millions of dollars to implement the Temenos system in Switzerland, one of the best banking operating systems in the world. After introducing the T24 Temenos core management software, at the end of 2019, for the first time in Vietnam, the system was upgraded to R18, the latest version of Temenos. This has improved productivity and risk management, as well as system speed and stability in all areas. Temenos is the platform that has enabled SeABank to diversify its portfolio of financial products and services suitable for individual and corporate clients in a broad and rapidly changing financial market. As a leading company in advanced digital transformation financial technology, we are creating a Vietnamese financial environment in the field of artificial intelligence (AI) banking apps. SeABank is analyzing and meeting the needs of more than 160 million customers from various angles based on data center construction based on TIE III international standards and early utilization of core software. In addition, credit and debit card security systems including OTP tokens and two-channel authentication solutions were introduced and successfully operated before other banks, and electronic document exchange and digital signature international standard certification (ISO 2:27001, PCI-DSS) were distributed. are doing
Q4. What is the secret to winning The Best Digital Bank Vietnam 2021 award?
A4. On September 2021, 9, SeABank received the Best Digital Bank Award in Vietnam by World Business Outlook, the leading B16B business magazine in ASEAN. In addition to our long-term commitment to digital transformation described above, the decisive reason for our winning this award is that our bank is one of the first banks to adopt an AI virtual assistant solution from FPT, a local AI robot and system leader in Vietnam. . The AI virtual assistant solution proved to be the optimal solution through SeABank digital innovation with a 2% conversation success rate while simultaneously conducting thousands of conversations with an average conversation time of less than 120 seconds.
Q5. What are the biggest changes before and after digital transformation?
A5. Investing in technology to take the lead in digital transformation in finance resulted in more than 170% year-over-year increase in digital customers, doubling the number of online and mobile banking transactions and 114% in commission revenue.
Q6. Please tell us about your future plans.
A6. SeABank's digital transformation strategy is largely to enable customers to use optimized digital solutions through active introduction of the latest artificial intelligence (AI) technology and integration of eKYC's proprietary system. Through our core AI financial technology, we will be able to dramatically reduce the cost of verification, authentication and supervision operations, banking operations, and effectively manage documents, expenses, transactions, and credit management. We also believe that the basis of digital transformation is the customer. The ultimate goal of SeABank is to increase customer convenience and generate revenue for customers.
Digital Transformation Success Story of Vietnamese Enterprises 2 Retail, Bibomart CEO Trinh Lan Phuong Interview
KOTRA Hanoi Trade Center conducted an interview with Trinh Lan Phuong, CEO of Bibomart, about digital transformation in the retail sector.
Q1. Please describe the background of Bibomart's founding and digital transformation success.
A1. I started my social life while working for a European NGO in Vietnam. After that, I participated in the World Bank's higher education evaluation project, and after moving to Vietnammobile, I was in charge of HR and finance. Based on these diverse experiences, I realized that the potential of retail business in Vietnam was huge and founded Bibomart in 2006. Bibomart, a retail store for infants and children aged 0-6, led the baby products retail market by far ahead of its competitors from 2017 to 2018. As of 2021, it has 22 stores in 144 provinces and cities across the country. However, considering that it is difficult to develop with the existing retail operation method, we scouted two foreign experts of Vietnamese descent, a data science expert from IBM and a logistics expert from Amazon, and also hired a digital transformation chief architect from Walmart. Bibomart, a baby products retailer, succeeded in digital transformation because it constantly talked to experts and pursued a better direction.
Q2. Please tell us about Bibomart's digital transformation.
A2. We believe that digital transformation is a transformation that changes everything in the organization, the way it operates, the way it operates, and the way it operates. Now, the company must break away from the traditional single management method and create a virtuous cycle ecosystem that connects all partners, customers, and manufacturers. Digital transformation is essential to optimize and utilize existing resources. After three years of preparation, Bibomart has achieved a complete digital transformation and did not publicize Bibomart's digital transformation until it has created a system that is as good as we think it is. Where in the past HR operating systems were labor intensive and arduous, everything is now optimized. With simplified personnel management, operations related to the store's product supply chain can always remain optimized during peak daily sales hours, during the COVID-3 pandemic, and during Tet. Thanks to supply chain optimization through digital transformation, there has never been an inventory shortage in the past two years, even while Vietnam has struggled with four strong social distancing measures.
Q3. What are the key things to look out for in your digital transformation?
A3. Technology brings big changes, but at the same time offers opportunities to explore larger and stronger markets. Digital transformation is an important solution for helping small businesses survive the competition, but there is no one-size-fits-all formula. I believe that in digital transformation, managers and executives should be able to answer three questions: ①Why do you want to improve your business performance through digital transformation? ② Are there any benefits that businesses gain from digital transformation? ③ What should companies change for digital transformation?
It is also important to analyze and determine exactly what businesses need to prepare before implementing digital transformation. It is not necessarily implemented just because digital transformation is good, but it is necessary to understand processes and information flows, to import and build a stable database, and to build an own warehouse and operating system. It should also have no impact on customer interests before or after digital transformation.
Q4. What advice would you give to companies considering digital transformation?
A4. Even if a company achieves digital transformation, I think it is important to grow together with important talent. In Bibomart's digital transformation process, it was helpful to listen to their employees so that they could properly control and dissipate their fears of change. By discussing the details with people who understand the digital transformation technology platform and know the big picture, you can better guide your business in the direction you want it to go. Therefore, when considering digital transformation in SMEs, it is important to keep in mind system optimization, human resource management simplification, supply chain optimization, etc., and constantly communicate with employees who can grow the company together before and after digital transformation.
implication
In November 2021, at the 3rd National Forum on Digital Technology Enterprises, Prime Minister Pham Minh Tinh said that digital innovation is people-centered and serving people. In addition, an official from the Ministry of Information and Communication (MIC) said that in 2021, the number of newly established digital technology companies in Vietnam increased to about 5,600, and the cumulative number of digital technology enterprises in Vietnam increased to 6, and digital technology enterprises had more than 4,000 employees. announced that they would hire According to statistics from the Ministry of Information and Communication, Vietnam's digital industry grew more than 10% year-on-year in 2020, which is three times the growth rate of Vietnam's GDP. However, just because digital transformation becomes more common and accelerated does not mean it will be applicable to all businesses. The performance of digital transformation desired by each company may be different, and the system and ratio of digital transformation to be applied for each company's characteristics may also be different. Korean small and medium-sized enterprises (SMEs) wishing to enter through an interview with the heads of two companies that are playing a pioneering role in digital transformation in Vietnam’s financial and retail industries are also seriously considering the suitability of digital transformation and are considering business operation, HR management, supply chain, logistics transportation, and inventory management. I hope that we can build a system that can create synergies that are optimized for each company in all aspects.
Source: Vietnam Ministry of Information and Communication (MIC), ictvietnam, Vietnam Investment Review, SeABank, Bibomart and KOTRA Hanoi Trade Center