ĐẠI HỌC QUOC GIA HÀ NỘI TRUONG QUAN TRI VÀ KINH DOANH TRINH HA PHUONG DIGITAL TRANSFORMATION SOLUTIONS FOR MANAGEMENT AND OPERATION AT HANOI OFFICE COWORKING DURING 2023-2025 LUẬN VAN THẠC SĨ QUAN TRI KINH DOANH Hà Nội - 2024 ĐẠI HỌC QUOC GIA HÀ NỘI TRUONG QUAN TRI VÀ KINH DOANH TRINH HA PHUONG DIGITAL TRANSFORMATION SOLUTIONS FOR MANAGEMENT AND OPERATION AT HANOI OFFICE COWORKING DURING 2023-2025 Chuyén nganh: Quan tri kinh doanh Mã số: 8340101.01 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS. HOÀNG ĐÌNH PHI Hà Nội - 2024 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article. The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given. The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business, and the laws for above-mentioned declaration.
Author Trinh Ha Phuong ACKNOWLEDGEMENT I would like to express my heartfelt gratitude to the many individuals who have supported me throughout the journey of completing this thesis. First and foremost, I am deeply thankful to my supervisor, Assoc. Hoang Dinh Phi, whose guidance and insightful feedback have been invaluable. I am also especially grateful to my support advisor, Ph.D Dao Dinh Kha, who played a significant role in advising and actively participating in this research.
Your mentorship has not only shaped the research but also enriched my academic experience. My sincere appreciation goes out to my family, your unwavering support have made this academic journey possible. And I want to send extremely grateful to my special friend, whose love, and encouragement have been a constant source of strength. I also appreciate to the faculty and staff at HSB for their dedication to providing a stimulating academic environment.
Finally, I acknowledge the countless researchers and scholars whose work paved the way for this thesis. Their contributions to the field of digital transformation have been instrumental in shaping my own research. This thesis would not have been possible without the contributions and support of these individuals. Thank you all for being a part of this academic journey.
Trinh Ha Phuong. il TABLE OF CONTENTS DECLARATION. SH TH TH HH HH HH ng nh i ACKNOWLEDGEMENITẺ.- -G- Án HH ng ng ng nh rệt ii LIST OF TABLES.- --- Ác SH HH HH TH HH Hung nha V IIJIE®)285)1€10)3s;cttiiiiiiaiiiiiiiađađảÝ4Ả.- - «+ 1E vn ng ngư 1 2. HH TH Tho TH HH TH Thờ 3 2.1 Challenges of COWOrkKING SDAC€.-- s1 TH TH HH ngư 5 2.3 Value CT€AA{IOIA.
- (G11 nh TH nu HH nh nh 6 2. -- -- G11 ng ng ngư 8 KG 000.1 Data collection method.2 Data analysis metlhOS,. - <5 1E 91 910191 ng ng nưy 13 CHAPTER 1. BASIC THEORY OF APPLYING DIGIFAL TRANSFORMATION IN THE MANAGEMENT OF COWORKING SPACE.
HH HT gu TH HT HT HT Hi HH Hư 15 1.1 Overview of digital transfOTrmatION1.1 Definitions of digital transformation.2 Digital transformation Írame€WOTĂK.3 The Tecnology and Platform's Role in Digital Transformation. -- ó- << TT TH HH nh nh 29 lil 1.2 Business model of Coworking SDAC€. SITUATION OF DIGITAL TRANSFORMATION PROCESS AND ACTIVITIES AT HANOI OFFICE COWOKRING OPERATION AND MANAGEMENT during 2020-2023 0.1 Digital transformation framework in Hanoi Office.--- «kh TH TH Tu TH HH nh 37 2. PROPOSAL OF DIGITALIZATION SOLUTIONS FOR MANAGEMENT AND OPERATION AT HANOI OFFICE CO-WORKING DURING 2023-2025.1 Directions of Board Of Management on Digitalization.2 Proposal of digitalization solutions for management and operation at Hanoi Office coworking during 2023-2025 oo.2 Technology and Data ASp€C(.3 Sales and Marketing .---- --- + SH kg kg kg 64 3.
HT TH TH TH TH HH ngư 69 CONCLUSION 0225 55. Research SIPTIÍICAIIC€.- - <1 9119 nh ng 75 REFERENCES 1. 77 iV LIST OF TABLES Table 1. Example of the Results table recorded after the surveys.
Definitions of digital transformation. Stages of Digital Maturity 00. cece eesecceeseeceeeeeseneeeeseeeeseeeesaes 24 Table 1.4 The four pillars of digital transformation. (Furr et al.
Business model layer of Hanoi Office. Stages of Digital Maturity of Hanoi Office. Comment on the impact of community on custOmers. Summary of the Survey r€SuÏ(S.
Summary of BOM’s idea on digital transformation. 57 LIST OF FIGURE Figure 1. The digital transformation framewOrK.-------«++<sss++ssss+ 22 Figure 1.2: Roadmap to the digital transformation of business models. Number of coworking space and members worldwide.
Digital transformation framework for Hanoi Office Coworking. Research rationale Digital transformation (DX) is a term that has been recently concerned by entrepreneurs around the world and put in many business development agendas everywhere. Although the concept of digitizing business processes, products, and services was first introduced in the early 90, the idea just really paced up after the rise of smartphones and social media in the 2010s. In Vietnam, the phrase “digital transformation” is no longer new to people.
Economy trends and customer behaviors prove that DX is an indispensable solution for businesses which want to improve their performance. For a prosperous digital transformation, organizations must wholeheartedly adopt the digital trajectory and enact comprehensive modifications across all sectors of their establishment. This entails more than just incorporating technologies; it involves a profound alteration encompassing culture, structure, interactions, and business frameworks!. After COVID-19 epidemic, businesses have suffered significantly.
Under difficult circumstances, businesses have experienced financial losses, workforce reductions, supply chain disruptions or even worse, business closures. Those that are good enough to survive see a shift in client consumption habits. Since the beginning of 2020, 61 percent of company executives polled have witnessed changes in their customer purchasing behavior and motives, while 22 percent have not seen any changes in their customers' demands, and 16 percent are undecided. From the end of 2022, the possibility of a recession and crisis is anticipated to exist in the world economy.
As a result, there is less liquidity and a shortage of capital flow on the Vietnamese market, which has had an impact on the real estate sector as ! Gabryelczyk, R. (2020), ‘Has COVID-19 Accelerated Digital Transformation? Initial Lessons Learned for Public Administrations’, Information Systems Management. These are significant challenges that any company, not just those in the real estate sector, must overcome. Now, DX plays a critical role in assisting companies to progressively adapt to this situation: the responsibilities of technology will need to develop in order to achieve resiliency, profitability, and sustainability”.
Hanoi Office Hanoi Office, established in 2013, is a Vietnamese firm primarily specializing in shared workspace solutions. Proficient in office leasing, particularly within the coworking space model, Hanoi Office strategically focuses on developing coworking spaces to cater to freelancers, startups, small enterprises, and individual consumers. Its clientele encompasses both business customers (B2B) and a smaller segment of individual consumers (B2C). Presently, Hanoi Office manages 13 office locations in Hanoi, each spanning an average area of 300-1500m2 and accommodating 50 employees, classifying it as a small-scale enterprise.
The company derives its monthly revenue from four service categories: (1) private offices, (2) individual workspaces, (3) business registration location, and (4) meeting/conference rooms. Among these, the primary revenue drivers are private offices, individual workspaces, and meeting/conference rooms, (arranged in descending order of revenue generation). In 2019, the advent of the Covid-19 pandemic necessitated restrictions on large gatherings and the implementation of physical distancing measures. Consequently, there was a sharp decline in entertainment-related consumption, a trend that has yet to fully rebound.
To bolster revenue streams, some areas originally designated for bars and cafes were repurposed as offices or workspaces. Additionally, the company's efforts 2 https://vietnamnews. vn/economy/769758/firms-urged-to-promote-digital-transformation-post-covid19.html in customer care and community development have been limited. Given these circumstances, digital transformation becomes imperative, considering the deployment of foundational technologies such as Customer Relationship Management (CRM).
This thesis utilizes Hanoi Office as a representative case to propose digital transformation strategies for enhancing its management and operations. Literature review Many areas and perspectives have been observed in response to digital transformation for business management and operation in both Vietnam and overseas. Efraim Turban et al. (2001) examined the usage in five major elements of corporate administration: operations, marketing and sales, financial accounting, human resource management, and technology, along with specific instructions to design this digitization system.
The stages of implementing a digital transformation project has also been analyzed in many papers, such as a 3-step approach (Shailesh Kumar Shivakumar, 2018), a 5- phase plan (Daniel R. Schallmo and Christopher A. Williams, 2018) and so on. These papers outline the procedures for business transformation on a broad scale, but not specifically in the field of coworking space.1 Challenges of coworking space The Covid-19 pandemic, caused by the SARS-CoV-2 virus, began in 2019 and has gradually declined since then.
Currently’, almost all countries, including Vietnam, have entered the post-Covid era. However, the pandemic has had a profound impact on people's consumption habits, lifestyles, and work methods worldwide. During lockdowns, working from home and telecommuting became common, leading to the formation of new habits such as online meetings and check-ins. These changes significantly affect the 3 August 2023 operational strategies of coworking spaces, which are considered the third place for people, following home (first place) and office (second place).
The economic situation after the Covid-19 epidemic will present both advantages and disadvantages to coworking spaces. According to a recent report by Deskmag (2023)*, the majority of coworking space brands, 77%, reported that the Covid-19 pandemic did not have a significant economic impact on their operations, while 13% acknowledged some minor effects. However, upon further analysis, several issues have emerged. Firstly, the cost of renting space has increased, posing a potential threat to the financial structure of coworking spaces.
Approximately 25-30% of coworking spaces participating in a global survey expressed concerns about the rising cost of renting space, which is currently one of their primary difficulties. In contrast, the Vietnamese market has seen landowners reducing rents in the short term to retain tenants, especially with the increasing supply of Grade A and Grade B office space by 6% annually (Savills, 2023)°. Secondly, around 15-20% of coworking spaces face challenges in finding customers and recruiting high-quality employees, leading to financial constraints. These issues can impact the overall financial health of coworking spaces (Deskmag).
Nevertheless, the report highlights an increase in demand for certain service segments. Among them, meeting room service/meeting space represents the largest share, accounting for 64% in big cities and 63% in suburban areas. The increased demand for meeting space could be attributed to a newly formed habit after the Covid-19 pandemic, where the trend of combining online and offline work gained prominence. As many companies encounter these problems in the context of global change, 4 2023 Coworking space business trends, Preliminary results of the 2023 global coworking survey, Deskmag: https://www.com/s/kcscosjhlyj93ca/2023 %20Coworking %20S pace%20Business%20Trends%20Simplifed%20 Results.pdf 5 Q1/2023 Commercial Real Estate Report in Hanoi, Savills: https://vn.vn/pdf-folder/HN-Commercial- MRQ12023-VN.pdf several research works have proposed tailored digital transformation remedies for distinct businesses.2 Technology A Deloitte study by Michael Grampp et al.
(2018) emphasized technology's role, alongside other dimensions, in crafting a workplace ecosystem characterized by flexibility, collaboration, and connectivity. The research advocates for technology in workplaces to foster collaboration and to gauge space utilization. Enikố Matyus (2021) underscores the necessity of internal digital platforms, proposing that coworking operators and companies digitize managerial processes for optimal utilization of digital services. Accordingly, the services needing modification include working point/room reservation, subscribing to memberships, entering premises, reception processes, and signing contracts, among others.
The objective is to shift these activities to a contactless format, minimizing interactions between individuals. This also necessitates introducing online approaches to maintain the communal nature of the endeavor, like virtual welcome sessions and scheduled discussions to acquaint new members °. Coworking Resource emphasizes the importance of. selecting technology tools tailored to the unique needs of a coworking business.