ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH PHAM TIEN HUNG DEVELOPING A DIGITAL TRANSFORMATION STRATEGY FOR THAI VIETJET AIR PERIOD 2025 — 2030 CHO THAI VIETJET AIR GIAI DOAN 2025 - 2030 LUAN VAN THAC Si QUAN TRI KINH DOANH Hà Nội - 2024 PHAM TIEN HUNG DEVELOPING A DIGITAL TRANSFORMATION STRATEGY FOR THAI VIETJET AIR PERIOD 2025 — 2030 XÂY DUNG CHIEN LƯỢC CHUYEN DOI SO CHO THAI VIETJET AIR GIAI DOAN 2025 - 2030 Chuyén nganh: Quan tri kinh doanh Mã số: 8340101.01 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DAN KHOA HỌC: PGS. TRAN NGỌC CA Hà Nội - 2024 DECLARATION I therefore certify that the aforementioned research findings are the result of my personal research and study, and have never been published in another scientific work or paper. The materials and data given in the thesis have obvious provenance and are validated. I am responsible in front of the Thesis Assessment Committee, Hanoi School of Business, and the laws for above-mentioned declaration.
ACKNOWLEDGEMENT I would like to begin by expressing my appreciation to the lecturers at the Hanoi School of Business and Management (HSB) - Vietnam National University for their assistance during my two years of education there. I'd also want to thank Associate Professor, PhD student, and Professor. a for personally guiding, commenting, and editing my thesis. Author il TABLE OF CONTENT DECLARATION 0212 .-- Gà SH HH HH TH TH TH ng nà il IV.
11 TABLES LIST ooo.- --- --«- s+ x kh TH HH HH HH Hà 1 I0 1.3 Research aim(s) and OJ€CfIV€S. - -- G1 HH ng HH nề 5 1.- óc HH HH TH TH HH TH HH 6 1. << 4xx vn TH TH HH nh 6 ly 1o.- G2118 88331118910 1199111 HH re 7 CHAPTER 2: LITEATURE REVIEÔW. LH TH TH HH ng ng 8 2.1 Digital transÍOrTmatIOT.
-- -- << + +1 E1 EE1 1 11 93 1111 TH HH nh 8 2. c1 TH HH HH 8 2.2 Role of digital transfOrmafIONI.2 Key technologies driving digital transformatIon.1 Big data and anaÌyfICS.-- -- ch TH TH ng 14 2. Artificial intelligence and machine learning. Internet of Things (LOT) 1n aV1AfIOT.
Blockchain technology in airline ODerafIOIS.-- - cv TH TH HH ng 19 2.3 Customer experience enhancement through digital channels.4 Chapter SUMMALY ng ốc. 23 CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY.1 Secondary TeS€arCH.- - -- < 1119111111 vn ng ng 24 3.- ---- 4 11k Tnhh TH HH nh 25 3.4 Data collection procedure .2 Stage 2 occcececccscesceseesecesecsscesecseceeceeeesecesececeseeeceseceeeeaeeeeeseceeeeeeeeeeeenees 31 Km na .5 Data analysis DfOC€(UTC.- G1911 TH nh TH nh ng ng 33 3.3 FOCUS øfoup CISCUSSION. 36 CHAPTER 4: RESEARCH RESUL/TTS.-- G5 1E ng ng ngư 37 4.1 Results of demographic information .1 Structure of customer paTLICIDATES.2 Structure of employee DarfICIDATIS.- 2s + 11g nh HH TH nh 44 4.1 Current state, challenges, and aspirations of Thai Vietjet Air.2 Solutions for elevating Thai Vietjet Air’s customer experience.- SG SH HH HH re 71 4.- 7G G0113 13011 90191 re 73 1V CHAPTER 5: CONCLUSION AND SUGGESTIONS.- (cà ccc sec74 5. Develop the digital transformation strategy for Thai Vietjet Air in the period 2025-2030 .5 Recommendation for further studies .- HH HH HH HH HH HH HH HH HH ng 81 F33») 0511777.
87 TABLES LIST Table 3.1 Names of secondary sources (self-structured) .2 The employees’ participants’ profile information (survey data) .3 The customer participants’ profile information (survey data).4 Mean score of Agreement level (Mohammed, 2016).1 Thai Vietjet Air’s SWOT analysis (Annual report of Vietjet, 2023).2 Vietnam Airlines’ SWOT analysis (Unilever, 2024).3 SWOT analysis of Air Asia (Strategy Story) .4 Themes of customers’ opinions on digital service of Thai Vietjet Air.5 Descriptive statistics of current state of Thai Vietjet Air (SPSS analysis) 61 Table 4.6 Descriptive statistics of challenges of Thai Vietjet Air (SPSS analysis).7 Descriptive statistics of future expectations (SPSS analysIs).8 Themes of interviewees’ responses on current state, challenges and aspirations of Thai Vietjet air (SPSS analyS1S).9 Summary of the findings (Self-structured) .--- 55+ +-s<++ss+<ss2 66 Table 4.10 Themes of solutions for elevating Thai Vietjet Air’s customer experience and developing operational efficiency (self-structured]). -- -‹- «cs«cscsesee 67 Table 4.11 Themes of suggestions for improving Thai Vietjet Air’s digital transformation efforts (S€lf-SfUCfUT€C|). HH ng ngư 68 Table 4.12 Themes of suggestions for improving Thai Vietjet Air’s digital transformation efforts (self-structured) .13 Solutions for elevating Thai Vietjet Air’s customer experience (self- S114 0111777 a7.- --- 74 Vi CHARTS LIST Figure 2.1 Bibliometric map of digital transformation (Kraus et al.1 Three stages of data collection procedure (self-structured).-- --- se sesersrrsree 36 Figure 4.0 Road map of the research results (self-structured|).1 Demographic information of gender (SPSS analys1s).2 Demographic information of age (SPSS analysis) .3 Frequency of flying with Thai Vietjet Air (SPSS analys1$).4 Purpose of travel (SPSS anaÏyS1S).5 Method of booking (SPSS analyS1S).6 Demographic information of gender (SPSS analys1s).7 Demographic information of department (SPSS analys1S).-- Án kg ng ry43 Figure 4.9 Years of working at Thai Vietjet (SPSS analysis).10 Overall satisfaction with Thai Vietjet Air’s service (SPSS analysis) .11 The ease of booking the flight through digital platforms (website/mobile app) (SPSS analysis) .- HH TH HH HH HH ng 49 Figure 4.12 The check in process using digital kiosks or online check in (SPSS bu 0 9m.13 the digital communication (emails, SMS, app notifications) received from Thai Vietjet Air (SPSS anallyS1S). - c3 1v TH HT Hy HH riệp 51 Figure 4.14 The user-friendliness of Thai Vietjet Air’s website (SPSS analysis) .15 The user-friendliness of Thai Vietjet’s mobile app (SPSS analysis) .16 The information provided on Thai Vietjet Air’s digital platforms (website/mobile app) (SPSS anaÏyS1S).
- SG HH HH ng ng Hy 53 Figure 4.17 The in-flight entertainment system (SPSS analysis) .18 The in-flight entertainment system (SPSS analysis) .19 Thai Vietjet Air’s customer service through digital channels (chat, email, social media) (SPSS anaÏyS1S).-- -- G1 ng ng ng ng gưy 56 Vil Figure 4.20 The importance of continuously improving Thai Vietjet Air’s digital Services (SPSS analysis). - -- cv HT HH HH ky 57 Figure 4.21 The interest of using more personalized digital services (e. personalized travel recommendations, loyalty program updates) (SPSS analysis) .22 Recommendation of Thai Vietjet Air to others based on the experience with its digital services (SPSS anaÌyS1S). - sgk, 59 Vili CHAPTER 1: INTRODUCTION 1.
Background Rapidly evolving digital technology has transformed business models as well as daily life around the world. In recent years, the development of digital technology has promoted businesses to keep up with this process. The developments of digital technologies such as big data, AI (artificial intelligence), virtual reality, cloud technology, and other innovative platforms show that it is extremely necessary to realize the digital transformation in the entire economy and businesses of the world. The availability of internet has rapidly changed the world, human’s lives and business habits; at the same time, it has brought the concept of digitalization into human lives.
The changes in business habits, human lives, and the world continues because internet and digital technologies constantly develop afterward. Therefore, Matt, Hess, and Benlian (2015) stated that business organizations need to realize digital transformation and adapt to the processes in the era of digital technology. Digital transformation directly influences the mechanism of decision making, the processes of production and design, and the provision of services to customers, cost structures, finance, and organizational structures. Mitroulis and Kitsios (2019) emphasized that intense competition in a market and increasing globalization make businesses to give radical decision makings and transitions.
Keeping up with the digital transformation trend of the world, the digital transformation of aviation industry is growing rapidly, driven by a wave of technological innovation and the need for improved customer experience. Airlines, airports and related services are increasingly realizing the advantages of digital application to compete in the global market. Digital transformation brings changes to increase business operations, customer experience and the formation of new business. As well as other sectors, if aviation industry wants to achieve long term success in today’s age, it critically needs to have an effective digital transformation strategy.
Thanks to digital technology, aviation companies can stay ahead of their competitors and innovate to improve their existing business models. Mizrak and Akkartal (2023) asserted that digitalization transforms customers’ expectations over the world. According to Richards, Seidakhmetov, and Zhunussova (2020), the companies have to reevaluate and transform customers’ expectations by using and adapting to new products, tools and applications to improve customer interaction with digitalization. Competition in the airline industry is inherently fierce.
The development of digital technology makes the competition among different airlines and airline related service companies become fiercer. Henriette et al., (2016) stated that innovations in technologies can transform the behaviors and use of organizations. During these years, the aviation industry has invested a huge amount of money and efforts for new digital technologies, including websites, mobile communications, self-serve equipment, software and other (Philip & George, 2003; Milkau & Bott, 2015). Such improvement promotes the rethinking of the organization that how to improve its performance.
As a result, high-tech helps airlines to provide better services to satisfy their customer and achieve greater value. Many airlines in the world today have partially implemented digital transformation. Philippine Airlines is one of the pioneer airlines in digital transformation has used artificial intelligence (AI) to collect and analyze passenger data to come up with more effective marketing strategies. As a result, customer attention to Philippine Airlines has increased by more than 20% each year.
Meanwhile, Air Canada uses machine learning and AT to train its virtual assistant to automatically answer questions about fares or flight status. The airline's efforts have been praised for creating a convenient connection between the airline and its passengers. Air New Zealand is testing a range of initiatives, including giving flight attendants wireless headsets that can translate customer requests in real time from 40 different languages. Also applying AI technology on its website, Vietjet, has used the robot Amy to answer passengers’ questions about booking tickets, checking in, payment instructions, changing flight schedules, refunding tickets, etc.
Not only serving passengers, Vietjet has also completely digitized the transportation of goods using the Swift247 express delivery service combined with Grab technology cars for same-day express speed. Businesses in general and aviation businesses in particular that are in the process of digital transformation and that have achieved a certain amount of digitalization are faced with great risks if they cannot adapt their processes to the rapidly developing technology and cannot achieve continuity. Digital transformation can create both new opportunities and threats if the process of digital transformation is not managed well. Chanias, Myers and Hess (2019) stated that new companies that can embrace the essence of the business in their digital transformation journey can quickly outgrow their traditional competitors by applying right strategies.
Thus, the process of digital transformation requires good planning and strategic management. Digital transformation requires comprehensive analysis and strategic vision. Both technology development and customer behavior are changing rapidly. So, aviation companies need to adopt a vision of an innovative and flexible approach so that they can survive, progress and grow in the market (Matt, Hess, & Benlian, 2015).
In today’s world where globalization has reached its peak, businesses that can determine the needs of consumers who are hesitant about their needs and desires and the stack of information obtained in every channel and that can offer the right solutions to these needs will be preferred in the competition (Chanias, Myers & Hess, 2019). Thai VietJet Air is a low-cost airline headquartered at Bangkok Suvarnabhumi Airport. It is a subsidiary of VietJet Air and was established as a joint venture with Kan Air Chairman Somphong Sooksanguan. VietJet Air reduced its ownership in the airline to 9%, with Thai VietJet Aviation Company Limited (52%) and International Investment Company Limited (39%) owning the majority of shares in Thai VietJet Air.