topic digital transformation in retail

INTRODUCTION TO DIGITAL TRANSFORMATION...4SUMMARY OF KEY RETAIL INDUSTRY TRENDS...4SOME CHALLENGES OF THE RETAIL INDUSTRY...4DIGITAL TRANSFORMATION OF THE RETAIL INDUSTRY AND PRACTICAL B

HO CHI MINH CITY UNIVERSITY OF ECONOMICS AND FINANCE

DIGITAL TRANSFORMATION

Topic:

DIGITAL TRANSFORMATION IN RETAIL

Võ Minh Long Đinh Nguyễn Yên Hồ Trần Tuấn Anh

Ho Chi Minh, month 12 year 2023

During the process of completing this final report, in addition to their own efforts,the author group received a lot of attention and valuable help from teachers and friends

First of all, the authors would like to send their gratitude to their teacher guide, Mr

Dr Nguyen Duy Anh, thank you for providing these instructions during the past time,ensuring a very useful tool in the process of researching and implementing this report topic

I would like to thank the School Board of Directors and all the teachers of Ho ChiMinh City University of Economics and Finance for helping the author group gain essentialknowledge during the past 3 years Finally, the authors would like to thank the family andfriends who have helped and supported the member a lot in recent times

However, due to limitations in time, cost as well as limited experience and knowledge, the topic will inevitably have some errors Therefore, the authors look forward

self-to receiving advice from teachers and friends self-to make this report more complete

Topic: 1

ACKNOWLEDGEMENT 2

INTRODUCTION TO DIGITAL TRANSFORMATION 4

SUMMARY OF KEY RETAIL INDUSTRY TRENDS 4

SOME CHALLENGES OF THE RETAIL INDUSTRY 4

DIGITAL TRANSFORMATION OF THE RETAIL INDUSTRY AND PRACTICAL BENEFITS 5

INTRODUCE ABOUT THE COMPANY 6

TAKE ADVANTAGE OF OPPORTUNITIES TO APPLY TECHNOLOGY FOR BUSINESS DEVELOPMENT 7

ASSESSMENT OF DIGITAL READINESS OF THEGIOIDIDONG'S WORKFORCE 9

CONSIDER FACTORS SUCH AS DIGITAL SKILLS, TECHNOLOGY ADOPTION AND CULTURAL ALIGNMENT WITH THE MOBILE WORLD COMPANY'S DIGITAL TRANSFORMATION 11

EVALUATE THE EXISTING TECHNOLOGY INFRASTRUCTURE, INCLUDING THEGIOIDIDONG'S HARDWARE AND SOFTWARE CAPABILITIES 13

ASSESSING THE POTENTIAL FOR DIGITAL TRANSFORMATION AT THEGIOIDIDONG COMPANY 14

DETERMINE IF THEGIOIDIDONG IS A SUITABLE CANDIDATE FOR DIGITAL TRANSFORMATION 16

PROVIDES A PRELIMINARY ANALYSIS OF THE BENEFITS AND RISKS ASSOCIATED WITH THEGIOIDIDONG'S DIGITAL TRANSFORMATION 17

SECTORS WITHIN THE GIOI DI DONG JOINT STOCK COMPANY (MWG) THAT CAN BENEFIT FROM DIGITAL TRANSFORMATION: 18

A COMPREHENSIVE SET OF DIGITAL TRANSFORMATION STRATEGIES TAILORED TO THE NEEDS OF THE GIOI DI DONG JOINT STOCK COMPANY (MWG) 20

INTRODUCTION TO DIGITAL

TRANSFORMATIONDigital transformation is the process of using digital technologies to transform existing

traditional and non-digital business processes and services, or creating new ones, to meetwith the evolving market and customer expectations, thus completely altering the waybusinesses are managed and operated, and how value is delivered to customers

Digital transformation is about evolving your business by experimenting with new tech andrethinking your current approach to common issues Because it’s an evolution, atransformation doesn’t necessarily have a clear end point The MIT Sloan ManagementReview, a publication that focuses on how management transforms in the digital age, says,

“Digital transformation is better thought of as continual adaptation to a constantly changingenvironment.”

SUMMARY OF KEY RETAIL INDUSTRY TRENDS.

- Converting from traditional sales channels to modern sales channels: fromstores and essential oil sales, businesses switched to focusing on building onlinesales channels on social network platforms

- The business operation process has close collaboration with digitalization servicessuch as digitizing documents, records, customer information, invoices anddocuments, allowing electronic payments, and using door-to-door delivery services.place, allowing users to accumulate points, receive discount codes, refunds, etc tocomplete the product

- Automated customer care and management: thanks to data stored on cloudcomputing, support software, and chatbots, the management and care process takesplace automatically

 : integrating commodity management software, financialmanagement,

SOME CHALLENGES OF THE RETAIL INDUSTRY

- The market is fiercely competitive between domestic and foreign competitors

- Lack of close coordination between parties in the supply chain

- Not yet working professionally

- Lack of appropriate technology

- Difficulty in understanding customer needs

DIGITAL TRANSFORMATION OF THE RETAIL

INDUSTRY AND PRACTICAL BENEFITS.

Enhance customer experience

- Technology helps make payments quickly

- Virtual reality (AR) technology – product visualization

- Easily check products with QR codes

Automate workflows and operational systems

- Retail management: through providing electronic payment solutions, creating

electronic invoices, managing products well and connecting with customers

- Accounting management: support businesses in controlling invoices, forecasting future costs, tracking revenue, costs, contracts, and preparing detailed financial reports

- CRM management (customer relationship management): easy scientific

management of customer information, decentralization of care staff to each customercategory, opportunity management and detailed reporting of care activities

Automated customer care

- Human resource management: support recruitment planning, scientific management

of candidate and employee information, track internal training programs and supportaccurate salary calculation

- Management of records, documents, and vouchers: software helps store and

scientifically classify invoices, records, and documents

INTRODUCE ABOUT THE COMPANY

Mobile World Investment Joint Stock Company (Mobile World Group - MWG) is the

No 1 retailer in Vietnam in terms of revenue and profit, with a network of more than2,200 stores nationwide MWG operates retail chains thegioididong.com, Dien MayXanh, and Bach Hoa Xanh In addition, MWG also expanded into foreign marketswith the Bigphone mobile device retail chain in Cambodia

Thegioididong.com was established in 2004 and is the mobile device retail chain withthe No 1 market share in Vietnam with more than 1,000 supermarkets present in 63provinces and cities across Vietnam

MWG focuses on building differentiated customer service with outstanding quality,consistent with the culture of putting customers at the center of all the company'sthoughts and actions

TAKE ADVANTAGE OF OPPORTUNITIES TO APPLY TECHNOLOGY FOR BUSINESS DEVELOPMENT

ERP system

In price management and targeted promotions, this system can make prices and promotionsfor each supermarket or specific phone Each phone has an email, the mechanism willoperate according to nearly 20 different types of promotions, everything is controlled fromthe center to change prices, circulated to supermarkets via the internet

Sales Manager

In sales management, previously, all operations were concentrated in the central area Therewere peak hours when customers waited a long time to enter the system How to keepcustomers from having to wait? The model will automatically work on orders, displayingprices

Inventory management

Regarding warehouse management, including importing goods according to orders,according to transfer orders, with the function of printing price lists, configuration, re-arranging shelves

Financial report

Regarding financial reporting, combine with banks to create an automatic system The salessystem has a mechanism to declare accounts and how to transfer With direct sales andcollection, the system will automatically transfer at night

Electronic bill

Mobile World is also a pioneer in using electronic invoices instead of paper On an averageday, there are 130,000 invoices If it's very difficult to store, managing it for 10 years isterrible, not to mention what if it's lost?

Calculate employee compensation

Currently, calculating salaries and bonuses for 31,000 people is done using the system,requiring only 2 employees The challenge is to make the supermarket process culture in CaMau similar to that in the city HCM, how to operate quickly and transparently information

in 1,000 supermarkets across Vietnam with 31 thousand employees Human resources arenot the ones managing all the data, greatly reducing records management

Thoroughly apply technology in the recruitment, attraction and interview process of candidates

Smart interviewing is also a math problem A few dozen supermarkets open each monthand must use information technology to recruit How can candidates interact with me tofind suitable candidates like a filter funnel? Through online human resource managementtools and smart interview recruitment, any worker across the country can visit this onlinesite and register to apply for each position

ASSESSMENT OF DIGITAL READINESS OF

THEGIOIDIDONG'S WORKFORCEStrengths:

• High Internet and Technology Penetration: Thegioididong's workforce has a high level of internet and technology penetration, with nearly all employees having access to smartphones, laptops, and tablets This indicates a strong foundation for digital adoption

• Younger Workforce: A significant portion of Thegioididong's workforce is

composed of younger employees who are typically more comfortable with digital technologies and more likely to embrace new digital tools and applications

• Existing Digital Initiatives: Thegioididong has already implemented some digital initiatives, such as digitizing records, using video conferencing, and implementing

cloud-based applications This demonstrates a commitment to digital transformation and a willingness to invest in digital infrastructure.

Weaknesses:

• Lack of Digital Literacy: While the workforce has access to technology, there are concerns about their digital literacy skills Some employees may lack the necessary skills to effectively use digital tools and navigate the digital landscape

• Limited Digital Training: Thegioididong has not provided comprehensive digital literacy training to its employees This gap in training may hinder the effective adoption and utilization of digital tools

• Insufficient Digital Infrastructure: Thegioididong's digital infrastructure may not be adequate to support a fully digitized workforce This includes issues such as networkconnectivity, bandwidth limitations, and lack of appropriate hardware

• Resistance to Change: Some employees may be resistant to change and may be reluctant to adopt new digital tools and processes This resistance can slow down digital transformation efforts

Recommendations:

• Invest in Digital Literacy Training: Thegioididong should prioritize digital literacy training for its employees This training should cover essential skills such as basic computer usage, digital collaboration tools, data privacy and security, and digital problem-solving

• Upgrade Digital Infrastructure: Thegioididong should assess and upgrade its digital infrastructure to ensure that it can support a fully digitized workforce This includes providing reliable network connectivity, adequate bandwidth, and appropriate hardware

• Foster a Culture of Digital Adoption: Thegioididong should promote a culture of digital adoption by encouraging employees to actively use digital tools and

applications in their daily work This can be achieved through clear communication, leadership support, and recognition of employees who embrace digital

transformation

• Address Resistance to Change: Thegioididong should address resistance to change

by providing employees with clear explanations of the benefits of digital

transformation and by involving them in the planning and implementation of digital initiatives

• Monitor and Evaluate Digital Readiness: Thegioididong should continuously

monitor and evaluate

CONSIDER FACTORS SUCH AS DIGITAL SKILLS, TECHNOLOGY ADOPTION AND CULTURAL

ALIGNMENT WITH THE MOBILE WORLD

COMPANY'S DIGITAL TRANSFORMATION

Digital Skills:

• Assess the current digital skills and literacy of the workforce

• Identify gaps in digital skills and provide training programs to upskill employees

• Foster a culture of continuous learning and encourage employees to embrace new technologies

• Encourage employees to share their digital knowledge and expertise with others

Technology Adoption:

• Evaluate the current technology infrastructure and identify areas for improvement

• Invest in modern and innovative technologies that align with the company's digital transformation goals

• Implement a structured technology adoption plan that outlines the steps for

deploying new technologies

• Provide ongoing support and training to employees to ensure they can effectively use new technologies

Cultural Alignment with MWG company:

• Create a culture that embraces mobility and flexibility

• Encourage employees to use mobile devices and apps for work-related tasks

• Promote a culture of collaboration and communication through mobile platforms.

• Implement policies that support remote work and flexible work arrangements

Data Analysis and Insights:

• Invest in data analytics tools and capabilities to gather insights from customer interactions, market trends, and operational data

• Create a data-driven culture where decisions are made based on evidence and insights

• Use data to identify opportunities for improvement and innovation

Cybersecurity and Data Protection:

• Implement robust cybersecurity measures to protect data and ensure privacy

• Educate employees about cybersecurity risks and best practices

• Regularly review and update cybersecurity policies and procedures

Customer Engagement and Experience:

• Leverage mobile technologies to enhance customer engagement and improve customer experience

• Develop mobile apps and websites that provide seamless and personalized

experiences

• Use mobile platforms to collect customer feedback and respond to customer inquiries

Innovation and Continuous Improvement:

• Foster a culture of innovation and encourage employees to think creatively and come up with new ideas

• Allocate resources for research and development to explore new technologies and solutions

• Regularly review and improve digital transformation initiatives based on feedback and data analysis

EVALUATE THE EXISTING TECHNOLOGY

INFRASTRUCTURE, INCLUDING THEGIOIDIDONG'S HARDWARE AND SOFTWARE

CAPABILITIES.

Hardware Capabilities

• Mobile Device Support: Mobile World's hardware infrastructure supports a wide range of mobile devices, including smartphones, tablets, and laptops This allows thecompany to offer its services to a large customer base

• Data Center Capacity: The company has invested heavily in data center capacity, which allows it to handle the large volumes of data that it collects and processes

• Network Infrastructure: Mobile World has a robust network infrastructure that allows it to provide high-speed internet access to its customers

Software Capabilities

• Mobile Operating Systems: Thegioididong supports the major mobile operating systems, including iOS, Android, and Windows This allows the company to offer its services to a wide range of customers

• Applications: The company has developed a suite of applications that allow its customers to access its services These applications are available for download on the major app stores

• Data Analytics: Thegioididong has a strong data analytics platform that allows it to collect and analyze data from its customers This data can be used to improve the company's services and develop new products

Recommendations

• Upgrade Hardware Infrastructure: Thegioididong should continue to invest in

upgrading its hardware infrastructure to keep up with the latest advances in

technology This will allow the company to maintain a competitive advantage in the market