change management impact of artificial intelligence on individuals in organizations

Introduction to TIKI Corporation...11 1.1 Tiki Corporation .... 15 3.2 Some harmful effects can occur when employees apply AI in their work process 15 3.3 Challenges Tiki businesses can

VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

HCMC, 14th January, 2024

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EVALUATION OF WORK PERFORMANCE LEVELS

No Full name Student ID Evaluation

1 Diệp Tuyết Nhi 720H1574 100%

CONTENTS

LIST OF FIGURE 4

ACKNOWLEDGEMENT 6

INTRODUCTION 7

CHAPTER 1: INTRODUCTION 8

1 Definition of artificial intelligence 8

2 Development history of AI and main fields 8

2.1 Key milestones of AI 8

2.2 Main areas of AI 8

3 The recent development of AI in Vietnam 9

4 The necessity of AI for current bussiness 9

CHAPTER 2: ANALYZING THE IMPACT OF AI ON INDIVIDUALS IN THE ORGANIZATION 11

1 Introduction to TIKI Corporation 11

1.1 Tiki Corporation 11

1.2 Formation and Development Journey 11

1.3 Business Model 11

1.4 Operating Philosophy 12

1.5 Tiki's Position in the Industry 12

2 The application of AI to Tiki's operations 13

2.1 Automated robot applications 13

2.2 Other support robots 13

2.3 Great technology assistant 14

3 The benefits and challenges of AI in Tiki’s operations 15

3.1 The benefits of AI in Tiki’s operations 15

3.2 Some harmful effects can occur when employees apply AI in their work process 15 3.3 Challenges Tiki businesses can face when applying AI to their employees' work processes: 16

CHAPTER 3: SOLUTIONS AND PROSPECTS IN THE FUTURE 18

1 Solutions 18

2 Future Prospect: 19

CHAPTER 4: CONCLUSION 20

REFERENCES 21

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LIST OF FIGURE Figure 1.Tiki's market share lags behind other e-commerce platforms 12 Figure 2.Tiki applies robots to logistics activities 14

EVALUATION OF LECTURER

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ACKNOWLEDGEMENT First and foremost, my team would like to send our sincere thanks to Ton Duc Thang University for including the subject Change Management into the curriculum In particular, we would like to express our deep gratitude to the subject lecturer - Mr Hoang Kim Chuong for teaching and imparting valuable knowledge to us during the study period During the time participating in the Change Management class, we gained

a lot of useful knowledge and practical issues in business This will certainly be valuable knowledge and a tool for us to apply in the future

The subject of Change Management is an interesting, extremely useful and highly practical subject Ensure to provide enough knowledge, linked to the practical needs of students However, because knowledge is still limited and the ability to absorb reality

is still confusing Although we have tried our best, it is certainly difficult for this report

to avoid shortcomings and many inaccuracies We hope you will review and give us suggestions to make our report more complete

Sincerely thanks!

INTRODUCTION The world is currently undergoing significant transformations amidst the backdrop of the Fourth Industrial Revolution This entails the emergence of innovations

in technological trends Science and technology have become essential not only in production activities but also in the daily lives of individuals One of the most breakthrough technological trends of the Fourth Industrial Revolution is Artificial Intelligence (AI) Nowadays, AI is widely trusted and utilized in various fields and forms The convenience of artificial intelligence makes it widely applicable, replacing some human tasks in countless industries The retail sector is no exception In the era

of the digital economy, consumers tend to shop on electronic platforms, leading to the continuous growth of the e-commerce sector

In this context, focusing on the impact of AI on a specific market landscape, such

as Tiki, is not only a logical decision but also a leap forward in understanding the power and challenges of this new technology in the industry Choosing Tiki as the research subject is not only because it is one of the popular online shopping destinations in Vietnam, but also because Tiki has demonstrated creativity and adaptability to AI advancements In the increasingly diverse and unpredictable market, Tiki's utilization

of AI to optimize the shopping experience, forecast demand, and provide intelligent customer care services has become a particularly noteworthy highlight

Through the theories and practical insights gained in the Change Management course, we will apply our knowledge and skills to provide analyses directly related to this subject, aiming to deepen our understanding and offer practical perspectives to reinforce the acquired knowledge Through this, we hope to comprehend the topic clearly and apply the knowledge and experiences gained in our future endeavors

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CHAPTER 1: INTRODUCTION

1 Definition of artificial intelligence

First mentioned in 1956 by John McCarthy, artificial intelligence, also known as

AI, is a term used to refer to a field within the broad field of machine science computing and information technology AI is completely programmed by humans by creating simulations of human thinking and learning processes for machines It is capable of completing intelligent tasks such as communication and problem solving, thinking, learning, Therefore, it can imitate behaviors that require real human intelligence Specifically, AI aims to build computer systems with key characteristics such as: The system acts like a person

The system can think like a person

The system can think rationally

Rational action system

2 Development history of AI and main fields

2.1 Key milestones of AI

1950 - The beginning: McCarthy makes the first hints about AI

1974 - Computers began to develop and explode strongly: fast processing speed and natural language processing ability, paving the way for the future development of AI

1980 - The year of AI's prosperity: expanded investment in algorithms and thanks to deep learning techniques, it reached and learned from user experiences 2000's - Reaching the finish line: technology was successfully established and is increasingly approaching and conquering new successes in many fields

2.2 Main areas of AI

Natural Language Processing (NLP): is a difficult branch of AI that includes voice processing and text processing, allowing automation in communication by applying virtual assistants, chatbots,

Conversation Processing: is a system built by combining three separate technologies: artificial intelligence, messaging applications and voice recognition, creating human-like conversations, including chatbots and voicebots

Image and Video Processing (Computer Vision): includes Video Analysis and Low-cost Computer Vision and facial recognition that enables image processing and object recognition

Robotics: this field creates robots that can grasp and move objects and robots that recognize gestures

AI Knowledge Base: is a dynamic information repository integrated with AI, it has the function of uniformly gathering all information, processing large volumes of queries automatically, freeing up the customer service team to focus

on more complex customer problems

Machine Learning (Deep Learning / Predictive Analytic): these 3 small branches play an important role in helping computers learn and analyze what is available

in the data warehouse, thereby gaining insights to contribute to making intelligent and quick determination and prediction

3 The recent development of AI in Vietnam

In recent years, AI has made significant progress in Vietnam, widely entering life and replacing many tasks in life However, AI has not yet reached its full potential

in our country's market and faces many current challenges, including:

Investment is not yet feasible

The national data development, storage and sharing strategy is still limited Application in key industries in Vietnam (industry, agriculture, healthcare) is not large

Facilities and information for AI technology development are still weak

However, Vietnam still has the potential to develop AI in the future:

Economy 4.0 is blooming in our country

The number of internationally published works on AI is increasing

Gradually receiving attention from leaders at all levels recently

Development of startups, research projects and training programs

4 The necessity of AI for current bussiness

In the modern technological society, Artificial Intelligence (AI) has become an important factor in businesses of all industries

First, AI helps businesses increase workflow automation With the ability to process information and learn from data, AI can perform many tasks quickly, helping

to reduce employee errors and save time For example, in manufacturing, AI can automatically control production lines, helping to increase productivity and quality In the field of customer service, AI can analyze, evaluate and process customer requests automatically and effectively

Second, AI provides deep analytical knowledge and strategic information for businesses AI has the ability to process large amounts of data and find hidden patterns and trends This helps businesses find important information about the market, consumer trends and customer behavior Based on this information, businesses can make strategic decisions and adjust operations to take advantage of market opportunities and gain competitive advantage

Third, AI brings personalization and better customer experience With the ability

to process personal information and learn from customer behavior, AI can create personalized experiences and recommend products based on each customer's preferences and needs This helps increase engagement, credit and customer

to create new products and services through integrating artificial intelligence into the research and development process, helping businesses adapt and adapt quickly to new challenges market fluctuations and business environment

In addition, the urgency of AI for businesses lies in competition and survival in

an increasingly fierce business market Businesses cannot ignore the potential and benefits that AI brings If the businesses do not apply AI, that may fall behind their competitors and lose access to the future

In short, AI will continue to develop in the future and become an indispensable tool in businesses This development will bring many opportunities and significant benefits to businesses

CHAPTER 2: ANALYZING THE IMPACT OF AI ON INDIVIDUALS

The company's name is derived from combining the initial syllables of the Vietnamese words "Tìm kiếm" (Search) and "Tiết kiệm" (Save), reflecting its

commitment to providing the best experience for customers

1.2 Formation and Development Journey

Initially, Tiki began as a modest online bookstore with a capital of only $5,000 Facing various challenges and managing all aspects of the business, including administration, marketing, packaging, and shipping, CEO Son played a pivotal role In March 2012, CyberAgent Ventures Inc decided to invest in Tiki, marking a turning point in its evolution into an e-commerce platform In the years 2011-2012, Tiki dominated the book business segment in Vietnam By 2013-2014, Tiki owned over 51,000 book titles nationwide and expanded into various other product categories Recognizing the potential of e-commerce, Tiki transformed by utilizing a warehouse with an area exceeding 3,000m2

From 2015 to 2017, Tiki continued its success, becoming the second-largest ecommerce company in Vietnam and ranking among the top 6 in the region, offering over 300,000 products across 23 different categories Additionally, Tiki was recognized

-as the top-ranked brand for excellent customer experience in Vietnam in 2020, according to YouGov

1.3 Business Model

Initially focusing on the B2C (Business to Customer) model, Tiki conducted business operations and distributed books to users through its online platform In April

2017, the company transitioned to a Marketplace model, allowing various distributors

to collaborate and sell their products on the Tiki website, thereby expanding its range

of products and services Simultaneously, the Tiki Now fast delivery service within 2 hours was introduced in the same year, providing a significant advantage for Tiki over other brands in the industry

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1.4 Operating Philosophy

Operating under the motto "All for the Customer," Tiki is committed to constantly improving the quality of its services and products, aiming to provide an optimal shopping experience for domestic customers by fulfilling two criteria: Quality and Time Tiki's policy of a 111% refund in case of counterfeit, substandard, or fake products is a clear testament to the company's commitment

1.5 Tiki's Position in the Industry

Tiki is one of the major competitors of Shopee, Lazada, and other e-commerce platforms in Vietnam It is renowned for its service quality and commitment to providing genuine products and customer care According to market data from Metric,

in the first quarter of 2023, the total revenue of the top 5 e-commerce platforms, including Shopee, Lazada, Tiki, Sendo, and Tik Tok Shop, amounted to 39 trillion VND The total number of shops generating orders was 413, with 390 million successfully delivered products, representing a 21.8% growth in revenue compared to the same period last year

Figure 1.Tiki's market share lags behind other e-commerce platforms According to the 2023 E-commerce Report published by market research company Momentum Works, the total transaction value of goods on e-commerce platforms in Vietnam in 2022 reached 9 billion USD Shopee dominated with a 63% share of the total GMV (Gross Merchandise Value), reaching around 5.67 billion USD (approximately 113.245 trillion VND) Lazada secured the second position with a GMV

of around 2.7 billion USD (approximately 63.450 trillion VND), which is one-third of

Shopee's achievement However, Tiki contributed only 6% to the total GMV of commerce in Vietnam, equivalent to 540 million USD.

e-Even the Tik Tok Shop platform, introduced just over a year ago, has approached Tiki's performance, achieving a total GMV of approximately 360 million USD."

2 The application of AI to Tiki's operations

2.1 Automated robot applications

TikiNOW Smart Logistics, a logistics company under Tiki, deploys robot application in the logistics process from July 2021

TikiNOW Smart Logistics is one of the pioneers in automation and putting robots into operation Currently, the robot model is applied at TikiNOW Smart Logistics Nha Be Operation Center (HCMC) Tiki said it will expand to all other operating centers

in the near future

The entire process of picking up goods from the warehouse is automated by Tiki using robots These robots are equipped with sensors to avoid collisions and avoid obstacles They are responsible for moving the barcode system on the floor to under the shelves, lifting the shelves and bringing them to the dispatcher's position in a scientific and precise manner A normal robot has a load of up to 800kg When the battery is low, the robot will automatically return to its position to charge itself

Tiki said that putting robots into operation aims to take advantage of the strength, accuracy and agility of robots to take on heavy, dangerous and repetitive jobs Thanks

to that, their employees can focus on more complex tasks

For example, robots search and retrieve goods on shelves instead of employees having to walk many kilometers every day The operator only needs to stand at the control station and press the command button, the robot will assist in lifting heavy objects and transporting them to the operating team

With the speed of picking up goods per hour doubled compared to normal and the error rate is almost 0, collaborative robots are considered a solution to help Tiki optimize labor productivity by speeding up the packaging process and shipping 2.2 Other support robots

Tiki utilizes packaging robots for automatic product packaging They have the ability to recognize and stack products into packaging boxes accurately and quickly This helps save time and effort for employees and ensures that the products are securely and safely packaged

Warehouse management robots are used to optimize the storage and arrangement

of goods They can autonomously move and locate products in the warehouse, enhancing the inventory management process This helps optimize storage space and reduce the time spent searching for products