Final projectimplementing digital transformation solutions fornewa group

As of December 2021, the consumer goodsindustry alone has reached the milestone of 3,000,000 customers.To be precise, NEWA scaled up into an Investment Group, owning 7subsidiaries, distr

FINAL PROJECT Implementing Digital Transformation solutions for

NEWA Group

Class: Digital transformation and artificial intelligence

Lecturer: Nguyen The Dai Nghia

Class code: 222MI5216

Group members:

1 Tran Pham Anh Duy K214020172 Leader

2 Nguyen Quang Dat K214020174 Member

3 Nguyen Ngoc Thao Nguyen K214020180 Member

4 Nguyen Quang Phat K214020181 Member

TABLE OF CONTENTS

Ho Chi Minh city, April 29, 2023

I Overview of Enterprise 3

1 The history of formation and development 3

2 Vision and Mission 4

3 Business model and Revenue model 5

4 Business operation 7

II Analysis 9

1 SWOT 9

2 Porter’s Five Forces 10

3 Competitors 11

III Recommendations 12

IV Implementation 13

1 Planning 13

2 Implementing 14

3 Risk forecasting 16

V Conclusion 17

VI Group member assessment 18

VII Proof of teamwork using Trello 19

IMPLEMENTING DIGITAL TRANSFORMATION SOLUTIONS

FOR NEWA GROUP

I Overview of Enterprise

NEWA Group can be considered as one of the most influential multi-industryinvestment units in the Vietnamese market today and is continuingly on the rise.Formerly known as Wean Company (established in March 2012), a companyspecializing in the production of bedroom furniture and utilities After certainsuccesses, the founder has gradually expanded the business field with the desire toprovide consumers with a new experience, “Elevating life - Launching the future”- healways says this slogan with utmost confidence

1 The history of formation and development

NEWA group's starting point is the mattress industry, in particular Wean - acompany that manufactures bedroom furniture and gadgets in March 2012, laid thefoundation for the start-up process, its main business products include popularmattress lines such as pressed cotton mattresses, spring mattresses, natural latexmattresses The company was strict with themselves, demanding for each productmade to build trust in consumers The beginning of 2014, marked a big step in thecompany's material revolution NEWA is proud to be the leader in bringing mattressproducts made from artificial rubber to the market The company learned andimproved production techniques from European rubber factories, creating a softmattress with high durability but the price is 20% cheaper than natural rubber Whenjust launched, Wean natural latex mattress has resonated and gained many positiveresponses from consumers This leading innovation in product design and function hashelped the brand gain the trust of consumers In 2015, from a small supplier, Weanpromoted to a main distributor, with 2 high-end showrooms located in the most primelocations in Ho Chi Minh City

In addition to the soft mattress and warm blanket, the founder decided toelevate Wean into the NEWA group and continued his life-making journey with theSupplements Business Product sources are mainly imported directly from Europe andKorea Along with that is the development of the bird's nest industry The policy ofbuilding a modern "swallow-making" line; creating products of superior quality,bringing a new breeze to the market The next industry was bird's nest - a fertile land

in the food market Vietnam possesses a climate and many favorable conditions forraising oats, creating an abundant supply From that premise, NEWA built our ownbird's nest factory in parallel with outsourcing for like-minded business partners

Today's achievements are the result of many years of unremitting efforts.NEWA Group sets itself the mission of "Creating the future, giving people a new andhappy life experience", with 3 groups of activities: Technology – Industry, Trade, andService.

On this journey, NEWA Group also faced many difficulties from findinginvestors, industry competition, economic crisis, etc But with the solidarity anddetermination combined helped the company to overcome its challenges and reapmany sweet fruits

Having accumulated many years of experience in the import and exportindustry, NEWA Group International Investment Group was officially established in

2020 with seven affiliated companies Strengths are in consumer goods such asnutritious food, furniture, and household appliances By the end of 2021, NEWAGroup has built 7 branches in Ho Chi Minh City Ho Chi Minh City and associatedwith more than 20 agents nationwide As of December 2021, the consumer goodsindustry alone has reached the milestone of 3,000,000 customers

To be precise, NEWA scaled up into an Investment Group, owning 7subsidiaries, distributing the scope of activities to the following categories: Productionand Trade, Import-Export, Real Estate, etc has greatly influenced the Vietnamesemarket The two most typical brands are Wean - Providing sleep care products andVinnest - Premium bird's nest; welcomed by millions of customers

2 Vision and Mission

2.1 Vision

NEWA – NEWA (New Age – New Area) aspires to open a new era, a newspace; towards a more modern lifestyle The only way to keep up with the times is tokeep moving forward, constantly improving With available strengths, NEWA Groupalways strives to bring breakthrough products to serve consumers' lives in the bestway

A in NEWA is also the leading character - Representing the aspiration tobecome a leading company in quality and expand its scale to many other fields Thefounders want to build NEWA group into a business

Steadfast in the various industries, NEWA continues to expand its businessscope and realizes its ambition of elevating the Vietnamese brand name in thedomestic and international markets

2.2 Mission

If the orientation is too high, is it called far-fetched? This problem is always abig concern, when any company wants to scale bigger Many businessmen still havethe mindset of following the old-fashioned way or imposing rigid theories that forgetthe "compromise" law in the marketplace NEWA always encourages employers tothink bigger- while managing their dreams within reach.

NEWA Group's staff is always actively learning new things and saying no to theway of thinking The main goal is to improve the quality of products and services tobring satisfaction to customers For example, the real estate market is sure to attractmany investors, and the latecomers will use the experience of their predecessors as abasis for competition So, the only key to standing in the market is this: Continuousimprovement Good orientation will help us have the motivation to strive and discovermore new potentials

Additionally, as the human factor plays a huge role in the developmentfoundation of the company, NEWA’s motto is "Make the company a second home foremployees" with a professional working environment, freedom to express individualabilities and views as well as promote solidarity and mutual support Besides, NEWAalso organizes many training programs to improve professional qualifications andopen up many promotion opportunities

In addition to business goals, NEWA Group also focuses on building highersocial values through charity or relief activities In 2021, the company was also one ofthe frontline units to support local soldiers in their fight against the COVID-19epidemic with more than 500 gifts sent to each household

3 Business model and Revenue model

3.1 Business model

NEWA Group is a multi-industry investment enterprise with a diversifiedbusiness portfolio The company operates in various sectors including nutritious food,furniture, household appliances, and most recently, real estate The business model ofNEWA Group is primarily based on investment, development, and management ofvarious businesses The company invests in different sectors and develops businessesthat are profitable and sustainable in the long run NEWA group aims to create valueand grow its businesses while maintaining its reputation and brand image

In the nutrition culinary sector, NEWA has their own factory Self-reliance inproduction will help businesses control input and output quality easily, as well as beflexible in improving quality and design The factory owns modern production lines,

applying European technology, for high productivity and synchronous product quality.

In addition, the preliminary processing and distillation process are closely monitoredand manually managed to ensure that the nutritional composition of the bird's nest ispreserved However, this direction also brings many challenges because of highoperating costs and the need for continuous upgrading of expertise to keep up with thetimes In the mattress and warm blanket sector, all machines and equipment usedapply modern technology, meet international standards and the raw materials are100% produced in Vietnam This is to replace previously imported products, helpingcustomers save costs and easily check quality or apply warranty policy NEWA is one

of the leading companies in manufacturing, processing and supplying furniture,bedroom gadgets and nutritious food In the real estate sector, the company invests inland and property development projects, and provides property management services.The company has developed and owns several residential and commercial properties

in Vietnam Not only that, the Group is still on track to expand its business scale andencroach into industries such as Commercial Services and others

Overall, the business model of NEWA Group is focused on identifying anddeveloping opportunities in various sectors, investing wisely, and creating value forstakeholders and customers

3.2 Revenue model

NEWA Group's revenue comes mainly from Modern trade sources:supermarkets and small retailers, online platform retailers and commissioners(although admittingly, NEWA only partnered with one big online sales channel-Shopee)

With mattress revenue stream, NEWA group’s most common ones are: + Direct to consumer: The company earns revenue by charging a markup onthe cost of manufacturing the mattress and selling mattresses directly to consumersthrough a website or physical store

+ Wholesale: This model involves selling mattresses to retailers at adiscounted price The retailer then sells the mattress to the end consumer at a markup,and the mattress company earns revenue from the wholesale price

+ Subscription: NEWA offers a subscription service where customers pay amonthly fee for access to a new mattress every few years The company earns revenue

by charging a monthly fee and manufacturing and delivering new mattresses asneeded

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The revenue model of the bird nest final product typically similar mattressincome stream, however with processed/raw materials revenue model typicallyinvolves the following as extras:

+ Value-added products: NEWA manufactures their own value-addedproducts, such as bird's nest soup or bird's nest skincare products These products canhelp the company generate additional revenue streams and may be sold directly toconsumers or through retailers

+ Membership programs: NEWA does offer membership programs thatprovide access to exclusive products or discounts on purchases for other businesses orthe franchisers This can be a way to generate recurring revenue and build customerloyalty

The revenue model of NEWA real estate sector typically involves thefollowing:

+ Sales commission: This is the primary source of revenue for NEWA’s realestate sector - the sales commission earned from buying and selling properties NEWAearns a percentage of the sale price as a commission for facilitating the transaction + Property management fees: NEWA also charges property management feesfor managing properties on behalf of property owners This can include services such

as tenant screening, rent collection, and property maintenance

+ Property development: The company seldom generates revenue throughproperty development too This can involve purchasing land, building properties, andthen selling or leasing them

Overall, the revenue model of NEWA group relies heavily on human resources,with great room and potential for incorporating AI technology into its operationsystems at any levels

4 Business operation

As NEWA group has many industries and different kinds of products, these arethe overall business operation system of the all 7 company in NEWA system:

4.1 Business operation of mattress sectors

This department is responsible for designing, testing,and manufacturing new mattress models They also work on improving existingproducts by incorporating customer feedback and new materials

This department is responsible for promoting NEWA'sproducts and generating sales through various channels, such as e-commerce

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platforms, retail stores, and social media They also work on developing marketingcampaigns and strategies to reach new customers

This department is responsible for ensuring that customersare satisfied with their purchases and resolving any issues that may arise They handlecustomer inquiries, complaints, and returns

This department is responsible for managing theflow of materials and products throughout the company's supply chain They work onsourcing materials, managing inventory, and coordinating transportation andshipping

This department is responsible for managing thecompany's finances, accounting, and reporting, as well as ensuring smooth operationthroughout the company They work on improving operational efficiency byautomating processes, reducing waste, and improving customer service

This department is responsible for generating leads,promoting properties, and closing deals with potential buyers, sellers, or tenants Theywork with a variety of marketing channels including digital advertising, social media,

or events

4.2 Business operation of real estate sectors

This department takes care of the day-to-day operations

of rental properties, such as collecting rent, managing repairs and maintenance, andhandling tenant requests They also perform tenant screening and leaseadministration

This department is responsible for identifying anddeveloping properties that have potential for investment, such as land acquisition,zoning, and construction They also work on improving the value of the company'scurrent real estate assets

This department is responsible for managing thecompany's finances, accounting, and reporting, as well as ensuring smooth operationthroughout the company They also work on improving operational efficiency byautomating processes, reducing waste, and improving customer service

This department ensures that the company is compliantwith all relevant laws and regulations, such as real estate laws, tax laws, and dataprivacy regulations They also handle disputes and legal matters that arise from thecompany's operations

4.3 Business operation of bird nest sectors

This department is responsible for harvesting bird'snests from natural and man-made structures and processing them into various formssuch as dried nests or ready-to-use bird's nest products

This department is responsible for ensuring thequality and safety of the bird's nest products before they are released for consumption.They also work on developing and improving existing quality control standards aswell as procedures

This department is responsible for promoting and sellingbird's nest products to various markets such as restaurants, traditional Chinesemedicine shops, and direct-to-consumer channels They also work on developingeffective marketing campaigns to reach new customers

This department is responsible for conductingresearch to develop new bird's nest products and improve existing ones They alsowork on identifying potential markets for bird's nest products and developing newways to enjoy them

This department is responsible for managing theflow of materials and products throughout the company's supply chain They work onsourcing high-quality bird's nests, managing inventory, and coordinatingtransportation and shipping

NEWA Mattress has a range of high-quality and affordable products that cater

to the growing demand for comfortable bedding solutions

NEWA Bird Nest has a reputation for producing high-quality bird's nestproducts that are popular in Asia due to their health benefits

Experienced management team with a deep understanding of the local marketand consumer preferences

1.2 Weaknesses

Dependence on the Vietnamese market, which can be affected by economic,political, and regulatory risks

Limited international presence and brand recognition compared to establishedcompetitors in the industry

Limited product diversification compared to other companies in the industry

2 Porter’s Five Forces

The threat of new entrants in the mattress, real estate,and bird's nest industries in Vietnam can be considered relatively low These industriesrequire high initial investments and substantial knowledge and expertise,which can act

as barriers to entry However, there are still some smaller players that could potentiallyenter the market and compete with NEWA Group in the future

The bargaining power of suppliers is low forNEWA Group, as it has established relationships with its suppliers and has a strongreputation in the market However, the availability and cost of raw materials,such aslatex for mattresses and bird's nest for the bird's nest industry, can have an impact onthe company's profitability