Digital transformation in an enterprise is defined as the integration and application of digital technology to improve business efficiency, and management effectiveness, enhance the capacity and competitiveness of enterprises and create new values. Digital transformation activities range from digitizing business and management data of enterprises to applying digital technology to automate and optimize business and management processes.

Everyone knows that digital transformation is necessary, even vital to the development of businesses, but many business owners, especially small and medium enterprises, are still afraid to face this puzzle of change. This may stem from the fear of innovation, unanswered concerns, or because businesses have misconceptions about digital transformation. In this article, GroBanc will help readers answer some popular concerns that have prevented SMEs from getting closer to digital transformation.

1. Does digital transformation take place only in the IT department?

Considered a technology-related issue, many businesses believe that digital transformation investment is an investment in the information technology (IT) department, with modern equipment and software. However, it is a wrong perception. Digital transformation requires the participation of the entire enterprise, from management levels to relevant departments, "digitizing" the activities of the departments.

Collaboration between business and technology is the key to digital transformation. To make the digital transformation process add value to an organization, the executive team needs to work with the heads of the departments to develop strategies, and then deploy and apply them to the entire organization with employees. Thus, for all organizations, digital transformation cannot be a one-way operation from only the IT department.

2. Investment technology application costs are very high, so it is not suitable for small and medium enterprises?

Thinking that digital transformation requires abundant capital is what hinders businesses, especially small and medium enterprises (SMEs/SMEs) from approaching digital transformation solutions. According to a survey, many businesses responded that they have thought about and understood the importance of digital transformation, but they do not have the money and resources for this. They believe that in the future when they have a strong financial background, as there is a financial surplus, they will pay attention to this issue later. For businesses, the cost of investing in digital technology solutions and the cost of deploying and maintaining technology is relatively high compared to other costs that businesses are incurring, while the efficiency of technology applications is not visible in the short term.

However, the digital transformation process can completely take place gradually, based on the needs and capabilities of enterprises. Some solutions cost only $ 10 / user - a number that is too small compared to the efficiency that technology can bring to businesses. This is no longer a cost problem, a concern when businesses do not have surplus capital, but a problem of proper analysis and planning for the company. In the market race, all businesses can become obsolete, not keeping up with market trends and other businesses without digital technology. Investing a small amount in digital transformation can be an expense that makes management afraid of not bringing immediate results in the short term, but if it does not change, then the business will certainly be left behind in the near future.

3. Businesses are afraid to be alone on the digital transformation journey

Digital transformation, although not a new concept, still seems to be unfamiliar to businesses. Like when starting something you have never done, businesses do not know where to start and are afraid to be alone on this journey. Understanding the difficulties of businesses, governments and related organizations are always willing to help if needed. One of the typical support programs is the USAID LinkSME project, a program to support businesses in digital transformation for the period 2021-2025 implemented by the Ministry of Planning and Investment. In addition, when learning about solutions, implementing organizations also have a team of consultants, business support, and case studies from businesses that have successfully transformed digitally before. As a provider of productivity software and digital solutions, GroBanc is pleased to accompany businesses on this journey.

4. Incompetent human resources, lack of resources for important periods

Incompetent human resources to receive technology transfer is considered one of the points that make businesses afraid when it comes to digital transformation. The fear and indifference from the employees themselves are the biggest barriers to digitalizing operations of the whole enterprise. In addition, the lack of experts, internal human resources knowledgeable about digital technology, and insufficient resources when deploying the implementation are barriers for businesses, reducing the ability to achieve success in digital transformation.

However, these problems are completely solvable. Based on resources and strategies, enterprises can make decisions about human resources in three directions: Hiring, self-implementing or combining. Businesses can hire experts or hire businesses to support them. At a small and medium scale, businesses can hire a consultant and then train employees or hire employees in charge and do it themselves. If the time is strained, businesses should hire consultants to deploy in parallel, and at the same time recruit resources to take over. At least 02 people (one is a leader and one is a full-time specialist) to start the digital transformation planning. When implementing projects, businesses can take more resources from specialized departments and recruit additionally to a limited extent full-time personnel to avoid redundancy after completing the project. If there is a big difference and it is necessary to specialize in carrying out operations later, businesses can also set up new departments and teams to implement and operate projects, but this usually applies to large enterprises.

5. Risk of excess human resources – fear for employees and challenges for managers

Contrary to the fear of a shortage of human resources, businesses and employees are afraid of risks when human resources are not responsive or redundant afterwards when the digital transformation process has been completed. This fear is reasonable, but it is an unnecessary concern.

In fact, during the industrial revolutions, the replacement of simple labour by machines not only increased production efficiency but also promoted the development of the labour market. Many positions disappeared, but also many new roles were born. Business modernization will become a driving force for employees to learn and transfer to other positions. In order not to be completely replaced, employees certainly need to learn and change, but instead of fearing being fired, they can think about new career paths. As the organization becomes more streamlined, business owners can allocate new jobs to redundant resources, thereby creating new roles, supporting business operations, and even creating a new profit-making area, helping businesses maximize profits with available.

Through this article, GroBanc hopes to assist readers in answering business concerns when it comes to digital transformation. It can be seen that businesses' concerns can be explained, and can also be completely solved. GroBanc hopes that businesses will be more confident when approaching digital solutions for their businesses. With the most important goal of being a strategic partner to help businesses, especially small and medium-sized businesses grow, GroBanc brings digital transformation solutions, and productivity software designed based on SMEs' needs that help businesses operate efficiently, save costs, and increase profits. In addition, GroBanc also provides a business networking platform, where businesses can find customers and suppliers to explore new business opportunities.

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