ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH --------------------- NGUYỄN HOÀNG AN THANH ANALYSIS OF DIGITAL TRANSFORMATION ON BUSINESS EFFICIENCY OF RETAIL FIRMS IN VIETNAM: THE CASE STUDY OF THE SIMPLE NUTRITION VIETNAM ENTERPRISE PHÂN TÍCH CHUYỂN ĐỔI SỐ VÀ HIỆU QUẢ KINH DOANH CỦA MỘT SỐ DOANH NGHIỆP BÁN LẺ TẠI VIỆT NAM. NGHIÊN CỨU TRƯỜNG HỢP VỀ CHUYỂN ĐỔI SỐ HOẠT ĐỘNG KINH DOANH CỦA CÔNG TY SIMPLE NUTRITION VIETNAM LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH Hà Nội - 20243 ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH --------------------- NGUYỄN HOÀNG AN THANH ANALYSIS OF DIGITAL TRANSFORMATION ON BUSINESS EFFICIENCY OF RETAIL FIRMS IN VIETNAM: THE CASE STUDY OF THE SIMPLE NUTRITION VIETNAM ENTERPRISE PHÂN TÍCH CHUYỂN ĐỔI SỐ VÀ HIỆU QUẢ KINH DOANH CỦA MỘT SỐ DOANH NGHIỆP BÁN LẺ TẠI VIỆT NAM. NGHIÊN CỨU TRƯỜNG HỢP VỀ CHUYỂN ĐỔI SỐ HOẠT ĐỘNG KINH DOANH CỦA CÔNG TY SIMPLE NUTRITION VIETNAM Chuyên ngành: Quản trị kinh doanh Mã số: 8340101.01 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS. ĐÀO ĐÌNH KHẢ Hà Nội - 20243 DECLARATION Formatted: Font color: Text 1 I hereby declare the “The analysis of digital transformation on business efficiency of retail firms in Vietnam: The case study of Simple Nutrition Vietnam enterprise” is my original work and has not been previously published or submitted for publication elsewhere.
I have read and understood the university's plagiarism policy and have ensured that all sources have been properly cited. Nguyen Hoang An Thanh i ACKNOWLEDGEMENT Formatted: Font color: Text 1 To complete this thesis, I would like to thank the teachers and staff of Vietnam National University, Hanoi/Hanoi School of Business and Management (HSB), who have created opportunities for me to study, practice, accumulate knowledge and skills to write my thesis. I would like to thank Instructor Dr. Dao Dinh Kha, who enthusiastically guided, monitored and gave useful advice to help me solve problems encountered during the research process.
I would like to express my gratitude to Instructor Dr. Nguyen QuynhDinh Huy, who helped and guided me a lot when I needed to edit my thesis and make it more complete. professional knowledge and lack of practical experience, the content of the thesis cannot avoid shortcomings. I look forward to receiving further comments and advice from teachers and employees from enterprises to make this thesis more complete.
Nguyen Hoang An Thanh ii TABLE OF CONTENTS Formatted: Font color: Text 1 DECLARATION. iii Field Code Changed Formatted: Font color: Text 1 ACKNOWLEDGEMENT .iiiiii TABLE OF CONTENTS. vivivi LIST OF FIGURES. 777 CHAPTER 1: THE THEORETICAL FRAMEWORK OF THE RESEARCH 1.
Concepts of digital transformation. Definitions of digital transformation. Components of digital transformation strategy. Characteristics of the retailing industry.
Concepts of business efficiency. Definition of retail SMEs in Vietnam. 131313 CHAPTER 2: IMPACTS OF DIGITAL TRANSFORMATION ON BUSINESS EFFICIENCY OF SIMPLE NUTRITION VIETNAM. The Overview of Simple Nutrition Company.
SWOT analysis of Simple Nutrition Vietnam. Digital transformation in Simple Nutrition Vietnam. Marketing & sales in Simple Nutrition Vietnam. Human resource management in Simple Nutrition Vietnam 181718 2.
Customer relationship management in Simple Nutrition Vietnam. Logistics management in Simple Nutrition Vietnam. The benefit of digital transformation in Simple Nutrition Vietnam in terms of business efficiency. Challenges of Simple Nutrition Vietnam.
Lack of resources. Changing customer needs. Vietnamese people prefer imported goods. Solutions for Simple Nutrition Vietnam.
Evaluate the role of digital transformation in a number of retail firms based on Simple Nutrition Vietnam. Overview of survey results. Improvement of human resource management. Improvement of marketing & sales.
Improvement of logistics management. Challenges in digital transformation. 404040 CHAPTER 3: SUGGESTION FOR OTHER RETAIL SMES IN VIETNAM 3. Suggestion for retail small and medium enterprises .2 Sales & marketing solutions .3 Human resource management solutions.
585858 v ABBREVIATIONS CRM Customer relationship management ERP Enterprise resource planning HRM Human resource management SCM Supply chain management SMEs Small and medium enterprises SWOT Strengths, weaknesses, opportunities, threatens vi LIST OF FIGURES Formatted: Font color: Text 1 Figure 2.1: Operating time of businesses surveyed. 323232 Field Code Changed Formatted: Font color: Text 1 Figure 2.2: Software that the group of business surveyed are using .3: Benefits that the group of businesses surveyed gain from digital transformation .4: Positive effects on the group of businesses when applying digital transformation .5: Obstacles when the group of businesses surveyed implement digital transformation. 404040 Field Code Changed vii INTRODUCTION Formatted: Font color: Text 1 1. Research rationale Digital transformation is the process of using digital technologies to improve business operations and create new value propositions for customers.
It is a critical trend for businesses of all sizes, and it is especially important for retail SMEs in Vietnam, which is one of the fastest-growing economies in the world, and its retail sector is expanding rapidly. However, retail SMEs in Vietnam face a number of challenges, including competition from larger businesses, both domestic and international. Digital transformation can help retail SMEs in Vietnam to overcome these challenges and to achieve their business goals. Digital technologies have positive effects on retailers.
such as increased sales, increased productivity, better availability, and innovation in products and the way business is conducted (Lehdonvirta, 2013; Matt et al. The study on the impact of digital transformation on the business efficiency of Retail SMEs in Vietnam is crucial for several reasons. First, digital transformation has become a global phenomenon, and understanding its implications on small and medium-sized enterprises is essential. Vietnam is experiencing a significant growth in its SME sector, and digitalization can offer opportunities for increased efficiency, market expansion, and competitiveness.
(Nga Phan et al. This study aims to shed light on how Retail SMEs in Vietnam can harness digital technologies to improve their business efficiency, particularly focusing on factors that enable or hinder this transformation. Second, the SME landscape in Vietnam plays a pivotal role in the country's economic development. SMEs constitute a substantial portion of the business sector and contribute significantly to employment and economic growth.
(Phuong Anh Nguyen et al. Understanding how digital transformation influences the innovation capability and efficiency of these 1 enterprises is vital. By exploring factors related to digital transformation within SMEs, this research aims to provide insights that can inform policies and strategies for enhancing SMEs' role in Vietnam's economic development. Third, digital transformation process is considered a revolution that changes the operating and business model.
(Ha Le Viet et al. Therefore, the research will provide valuable insights into the unique challenges and opportunities faced by Retail SMEs in Vietnam during their digital transformation journey, potentially guiding business owners in making informed decisions. This study will analyze the situation of a small-scale retail company in Vietnam, Simple Nutrition Vietnam. The research will focus on analyzing how the company digitizes management and business activities, including marketing & sales, human resource management, and logistics management.
With success in applying digital transformation early, the business has improved business efficiency. In addition, the study also surveyed businesses in the same industry and segment. From there, we offer a number of digital transformation solutions for other small and medium-sized retail businesses in Vietnam. Literature review i) The context of digital transformation landscape of retail SMEs in Vietnam The report “ASEAN SMEs: Small Business, Big Opportunity for Tech Providers” also indicates that 3/4 (75%) of SMEs in Vietnam are only beginning their digitalization journey or have only digitalized in a few aspects or departments of their businesses.
This rate is slightly higher than the ASEAN average (reaching 70%). Vietnam's SMEs have recognized the necessity of digitalization and are making efforts to bridge the gap. The study found that the top priorities for these businesses in the next 2 years are enhancing data analytics capabilities and innovation capacity. To drive digital transformation, 2 Vietnamese SMEs are seeking technology solution providers with technical skills (82%), industry knowledge (67%), and quick response times (45%).
(TDCX Holdings Pte. In particular, 85% of small and medium-sized enterprises (SMEs) in Vietnam have plans to innovate their products and services by leveraging digital tools such as data analytics over the next two years. (TDCX Holdings Pte. In addition to enhancing data analytics and innovation capabilities, over the next 2 years, Vietnamese SMEs will focus on transitioning from traditional business models to digital models, enabling operations in e-commerce activities (75%) as well as digitizing functions such as sales, marketing, or customer relationship management (63%).
(TDCX Holdings Pte. The landscape of digital transformation in Vietnamese small and medium-sized enterprises (SMEs) is marked by a dynamic interplay of challenges and opportunities. As of 2021, a staggering 57.5% of Vietnamese SMEs were grappling with the complexities of digital transformation, signifying the substantial hurdles that many businesses were facing in adopting digital technologies. Interestingly, despite the obstacles, a report on digital transformation revealed that 96.9% of SMEs in Vietnam recognized the importance of digital transformation.
This paradox underscores the awareness among SMEs regarding the critical role that digitalization plays in their sustainability and growth. The Vietnamese Government has firmly acknowledged the significance of digital transformation for the country's overall development and prosperity. It is considered a crucial aspect of Vietnam's economic growth strategy. The government's support and recognition of digital transformation are essential factors driving SMEs to embrace technological innovations.
3 Currently, business-to-consumer (B2C) e-commerce exports in Vietnam are valued at VND80. However, our analysis reveals that if MSMEs accelerate their adoption of e-commerce for exporting products and services, Vietnam could witness a substantial surge in e-commerce export revenues, reaching VND296. Moreover, the proportion of revenues earned by MSMEs could rise from 24% in 2022 to 67% in 2027. Furthermore, the trajectory of Vietnam's digital economy is poised for a remarkable expansion.
The country is expected to experience a remarkable 31% growth in gross merchandise value (GMV) from $23 billion in 2022 to $49 billion in 2025. This projection underscores the urgency for SMEs to engage in digital transformation to harness the opportunities presented by the burgeoning digital economy. ii) Digital transformation in the retailing industry The digital revolution is changing how companies create value for customers, fulfilling hidden desires and simplifying lives in groundbreaking ways. Five key technologies like automation, personalization, seamless technology, interactive platforms empower co-creation, and transparency and control build trust are the tools in this toolbox, offering convenience, tailored experiences, and deeper engagement.
(Reinartz et al. Automation refers to all activities and processes that operate automatically, without active human input or control (Vámos, 2009). At the customer interface, automation affects value creation in two ways. First, automation of marketing processes such as automated offers customers real- time information and responses.
Second, automation of consumer processes such as (re-)purchasing simplifies or eliminates routine processes for consumers. (Reinartz et al. 4 The benefits extend beyond buying, with personalized recommendations and easy sharing enriching how we use and enjoy products. Customers gravitate towards companies that best understand their needs and deliver value through these dimensions, not just at the time of purchase.
The dynamic growth of internet-based retailing includes more and better information availability about a product, larger assortments, greater transparency across vendors from the consumer's perspective, and potentially lower prices because of lower fixed- cost operations. (Reinartz et al. As more and more customers prefer the convenience of digital shopping and mail-order delivery, many physical retailers are seeing foot traffic plunge (Kapner, 2016). For example, Walmart is a good example of a retailer that has successfully implemented digital transformation strategies.
Walmart has invested heavily in e-commerce, and it now has one of the largest online retail platforms in the world. Walmart has also used digital technologies to improve its in-store shopping experience. For example, Walmart uses mobile self- checkout kiosks to allow customers to check out their purchases quickly and easily.