analysis of digital transformation on business efficiency of retail firms in vietnam the case study of the simple nutrition vietnam enterprise

Research scope Main content: The thesis analyzes the process of applying digital transformation and its impact on the business efficiency of retail enterprise Simple Nutrition Vietnam..

Research rationale

Digital transformation is the process of using digital technologies to improve business operations and create new value propositions for customers It is a critical trend for businesses of all sizes, and it is especially important for retail

SMEs in Vietnam, which is one of the fastest-growing economies in the world, and its retail sector is expanding rapidly However, retail SMEs in Vietnam face a number of challenges, including competition from larger businesses, both domestic and international Digital transformation can help retail SMEs in

Vietnam to overcome these challenges and to achieve their business goals Digital technologies have positive effects on retailers such as increased sales, increased productivity, better availability, and innovation in products and the way business is conducted (Lehdonvirta, 2013; Matt et al., 2015)

The study on the impact of digital transformation on the business efficiency of Retail SMEs in Vietnam is crucial for several reasons First, digital transformation has become a global phenomenon, and understanding its implications on small and medium-sized enterprises is essential Vietnam is experiencing a significant growth in its SME sector, and digitalization can offer opportunities for increased efficiency, market expansion, and competitiveness

(Nga Phan et al 2023) This study aims to shed light on how Retail SMEs in

Vietnam can harness digital technologies to improve their business efficiency, particularly focusing on factors that enable or hinder this transformation

Second, the SME landscape in Vietnam plays a pivotal role in the country's economic development SMEs constitute a substantial portion of the business sector and contribute significantly to employment and economic growth (Phuong Anh Nguyen et al 2020) Understanding how digital transformation influences the innovation capability and efficiency of these

Formatted: Font color: Text 1 enterprises is vital By exploring factors related to digital transformation within SMEs, this research aims to provide insights that can inform policies and strategies for enhancing SMEs' role in Vietnam's economic development Third, digital transformation process is considered a revolution that changes the operating and business model (Ha Le Viet et al 2023) Therefore, the research will provide valuable insights into the unique challenges and opportunities faced by Retail SMEs in Vietnam during their digital transformation journey, potentially guiding business owners in making informed decisions

This study will analyze the situation of a small-scale retail company in Vietnam, Simple Nutrition Vietnam The research will focus on analyzing how the company digitizes management and business activities, including marketing

& sales, human resource management, and logistics management With success in applying digital transformation early, the business has improved business efficiency In addition, the study also surveyed businesses in the same industry and segment From there, we offer a number of digital transformation solutions for other small and medium-sized retail businesses in Vietnam.

Literature review

i) The context of digital transformation landscape of retail SMEs in Vietnam

The report “ASEAN SMEs: Small Business, Big Opportunity for Tech Providers” also indicates that 3/4 (75%) of SMEs in Vietnam are only beginning their digitalization journey or have only digitalized in a few aspects or departments of their businesses This rate is slightly higher than the ASEAN average (reaching 70%) Vietnam's SMEs have recognized the necessity of digitalization and are making efforts to bridge the gap The study found that the top priorities for these businesses in the next 2 years are enhancing data analytics capabilities and innovation capacity To drive digital transformation,

Vietnamese SMEs are seeking technology solution providers with technical skills (82%), industry knowledge (67%), and quick response times (45%) (TDCX Holdings Pte Ltd., 2023)

In particular, 85% of small and medium-sized enterprises (SMEs) in Vietnam have plans to innovate their products and services by leveraging digital tools such as data analytics over the next two years (TDCX Holdings Pte Ltd., 2023) In addition to enhancing data analytics and innovation capabilities, over the next 2 years, Vietnamese SMEs will focus on transitioning from traditional business models to digital models, enabling operations in e-commerce activities (75%) as well as digitizing functions such as sales, marketing, or customer relationship management (63%) (TDCX Holdings Pte Ltd., 2023)

The landscape of digital transformation in Vietnamese small and medium-sized enterprises (SMEs) is marked by a dynamic interplay of challenges and opportunities As of 2021, a staggering 57.5% of Vietnamese SMEs were grappling with the complexities of digital transformation, signifying the substantial hurdles that many businesses were facing in adopting digital technologies (Ministry of Planning and Investment, 2021) Interestingly, despite the obstacles, a report on digital transformation revealed that 96.9% of SMEs in Vietnam recognized the importance of digital transformation This paradox underscores the awareness among SMEs regarding the critical role that digitalization plays in their sustainability and growth (Ministry of Planning and Investment, 2021)

The Vietnamese Government has firmly acknowledged the significance of digital transformation for the country's overall development and prosperity

It is considered a crucial aspect of Vietnam's economic growth strategy The government's support and recognition of digital transformation are essential factors driving SMEs to embrace technological innovations

Currently, business-to-consumer (B2C) e-commerce exports in Vietnam are valued at VND80.7 trillion (USD3.5 billion) However, our analysis reveals that if MSMEs accelerate their adoption of e-commerce for exporting products and services, Vietnam could witness a substantial surge in e-commerce export revenues, reaching VND296.3 trillion (USD13 billion) by 2027 Moreover, the proportion of revenues earned by MSMEs could rise from 24% in 2022 to 67% in 2027 (Access Partnership, 2023) Furthermore, the trajectory of Vietnam's digital economy is poised for a remarkable expansion The country is expected to experience a remarkable 31% growth in gross merchandise value (GMV) from $23 billion in 2022 to $49 billion in 2025 This projection underscores the urgency for SMEs to engage in digital transformation to harness the opportunities presented by the burgeoning digital economy (e- Conomy SEA 2022) ii) Digital transformation in the retailing industry

The digital revolution is changing how companies create value for customers, fulfilling hidden desires and simplifying lives in groundbreaking ways Five key technologies like automation, personalization, seamless technology, interactive platforms empower co-creation, and transparency and control build trust are the tools in this toolbox, offering convenience, tailored experiences, and deeper engagement (Reinartz et al 2018)

Automation refers to all activities and processes that operate automatically, without active human input or control (Vámos, 2009) At the customer interface, automation affects value creation in two ways First, automation of marketing processes such as automated offers customers real- time information and responses Second, automation of consumer processes such as (re-)purchasing simplifies or eliminates routine processes for consumers (Reinartz et al 2018)

The benefits extend beyond buying, with personalized recommendations and easy sharing enriching how we use and enjoy products Customers gravitate towards companies that best understand their needs and deliver value through these dimensions, not just at the time of purchase The dynamic growth of internet-based retailing includes more and better information availability about a product, larger assortments, greater transparency across vendors from the consumer's perspective, and potentially lower prices because of lower fixed- cost operations (Reinartz et al 2018) As more and more customers prefer the convenience of digital shopping and mail-order delivery, many physical retailers are seeing foot traffic plunge (Kapner, 2016)

For example, Walmart is a good example of a retailer that has successfully implemented digital transformation strategies Walmart has invested heavily in e-commerce, and it now has one of the largest online retail platforms in the world Walmart has also used digital technologies to improve its in-store shopping experience For example, Walmart uses mobile self- checkout kiosks to allow customers to check out their purchases quickly and easily As a result of its digital transformation efforts, Walmart has been able to improve its customer experience, increase sales and revenue, reduce costs, and improve employee productivity In 2022, Walmart's revenue was $572.7 billion, up 6.7% from the previous year Walmart's net income was $22.5 billion, up 3.3% from the previous year Retailers can influence shopper adoption of technologies by educating shoppers about the benefits of new technologies, making it easy for shoppers to use new technologies, and offering incentives for using new technologies (Venkatesh Shankar; et al, 2021) iii) Challenges and opportunities of retailers

When entering the digital transformation phase, retail businesses face challenges such as investment costs in technology, conservatism when it comes to change, and data and information security One of the primary challenges faced by traditional retailers is the substantial cost associated with adopting and integrating new technologies (Berman & Thelen, 2004) Some costs that retail businesses must invest include purchasing software, employee training, and maintenance fees Resistance to change from both management and frontline staff can impede the seamless integration of digital technologies into existing operational work flows (Hannan & Freeman, 1984) Changing work processes related to employee qualifications and corporate culture requires an effective innovation strategy Traditional retailers, often handling sensitive customer data, face the challenge ensuring robust cybersecurity measures to protect against data breaches and safeguard customer trust (Doherty & Fulford, 2007) Besides the challenges, the digital transformation landscape presents many opportunities for retailers to enhance customer engagement, operational efficiency, and market reach Digital transformation allows retailers to leverage customer data to create personalized and targeted experiences By analyzing purchasing history, preferences, and behaviors, retailers can tailor marketing efforts, offer personalized promotions, and enhance the overall customer journey (Berger & Nasr, 1998)

Digital technologies streamline various operational aspects, leading to enhanced efficiency Inventory management systems utilizing real-time data analytics minimize stockouts and overstock situations, optimizing supply chain logistics (Kumar & Sandhu, 2018) Digital transformation opens avenues for retailers to expand their market reach beyond geographical boundaries E- commerce platforms, digital marketing, and online presence enable retailers to reach a global audience (Chaffey et al., 2016).

Research objectives

This research aims at investigating the impact of digital transformation on business efficiency by using a case study of the Simple Nutrition Vietnam Specifically:

- The first research objective is analyzing the digital transformation case of retail business Simple Nutrition Vietnam and a number of other retail businesses in Vietnam to point out the benefits brought to businesses from digital transformation

- The second objective is to suggest some solutions for retail SMEs in Vietnam to leverage digital transformation for improving their business efficiency.

Research scope

Main content: The thesis analyzes the process of applying digital transformation and its impact on the business efficiency of retail enterprise Simple Nutrition Vietnam

The thesis focuses on three main activities: marketing & sales, human resource management, and logistics management

The scope of research is in Hanoi Survey implementation time: Quarter III/2023

Research methodologies

The research method of this thesis is qualitative The author developed a questionnaire for in-depth interviews with Simple Nutrition business owners The survey was designed with 10 questions (addendum 3 and 4) The author also collected secondary data from market reports and internal reports of businesses to make comments and analysis

In addition, the author also developed a set of questions to survey 100 other retail businesses in Vietnam to find out the role of digital transformation for those businesses and have a more general perspective The survey was designed with 19 questions (addendum 1 and 2).

Research structure

Thesis has the following structure: In addition to the introduction, conclusion, liist of figures, tables, list of acronyms, the content of the thesis is presented in the following3 chapters:

Chapter 1 provides an overview and key concepts of digital transformation, retail, business efficiency and SMEs in Vietnam

Chapter 2 presents the results of surveys, discussions, and viewpoints on how digital transformation has impacted on the business efficiency of Simple Nutrition Vietnam company and surveyed firms

Chapter 3 proposes some digital transformation solutions in logistics management, marketing & sales, and human resources management for other small and medium-sized retail businesses in Vietnam.

THE THEORETICAL FRAMEWORK OF THE RESEARCH 1.1 Concepts of digital transformation

Definitions of digital transformation

Digital transformation involves the application of technology to build new business models, processes, software, and systems that lead to increased revenue, greater competitiveness, and higher efficiency (Schwertner, 2017)

Digital transformation primarily pertains to the imperative of adopting fresh technologies in order to remain competitive in the digital era, where goods and services are provided across both online and offline channels The transformation of online services is perceived as an avenue for enhancing customization and automation through the establishment of standardized processes (Andal-Ancion, Cartwright, & Yip, 2003) Alternatively, some define digital transformation as a strategy for revamping business models to align with customer demands through the integration of innovative technologies (Berman 2012)

Although technology is closely associated with digital transformation, digital transformation is not just about applying technology to businesses

Digital transformation is about updating and upgrading edge capabilities in the digital economy In more detail, when the behavior and expectations of customers or employees develop and change to accommodate the use of new technology, businesses then need to have a digital impact on the market and people (Brian Solis, 2016)

At Monsanto, Swanson touched upon the concept of digital transformation with a focus on putting the customer at the center He mentioned discussions about streamlining operations, considering people, and exploring fresh business approaches Within these areas, he emphasized the role of data

Formatted: Font color: Text 1 analytics, various technologies, and software as facilitators rather than primary drivers

Digital transformation is the process of using digital technologies to create new or modify existing business processes, culture, and customer experiences to meet changing business and market requirements It is a re- imagining of business in the digital age Digital transformation is not just about technology It is also about changing the way businesses think and operate It is about using technology to create new value for customers, employees, and other stakeholders

As a matter of fact, terms like digitization, digitalization, or digital transformation are used interchangeably in the literature According to the definition of Salesforce - an American cloud-based software company, “Digital transformation is the process of using digital technologies to create new — or modify existing business processes, culture, and customer experiences to meet changing business and market requirements This re-imagining of business in the digital age is digital transformation It transcends traditional roles like sales, marketing, and customer service Instead, digital transformation begins and ends with how you think about, and engage with, customers As we move from paper to spreadsheets to smart applications for managing our business, we have the chance to reimagine how we do business — how we engage our customers

— with digital technology on our side.”

Components of digital transformation strategy

According to Kudzai Mapingire et al (2022), digital transformation strategy must incorporate the following components, digitization of the customer experience, digitization of products and services, digitization employee ways of working and digitization of business processes From synthesizing and reviewing research documents, João Reis et al (2018) have classified digital transformation into 3 separate elements (1) Technological –

Formatted: Font color: Text 1 digital transformation is based on the use of new digital technologies such as social media, mobile, analytics or embedded devices; (2) Organizational – digital transformation requires a change of organizational processes or the creation of new business models; (3) Social – digital transformation is a phenomenon that is influencing all aspects of human life by e.g., enhancing customers experience (João Reis et al, 2018)

Based on the above theories of digital transformation and business scale as a SME, this thesis focuses on analyzing and evaluating the digital transformation of 3 main activities of Simple Nutrition business: (1) marketing

& sales, (2) human resource management, and (3) logistics management.

Characteristics of the retailing industry

Retailing encompasses the business activities involved in selling goods and services to consumers for their personal, family, or household use

Retailing can be defined as including every sale to the final consumer (ranging from cars to apparel to meals at restaurants) Retailing does not have to involve a store Mail and phone orders, direct selling to consumers in their homes and offices, Web transactions, and vending machine sales all fall within the scope of retailing Retailing does not even have to include a “retailer.” Manufacturers, importers, nonprofit firms, and wholesalers act as retailers when they sell to final consumers (Bankim 2015)

Retail improving inventory management through systems – faster turnover, better profitability, fast changing customer preferences for assortment of goods and services (Bankim, 2015) There are some specific requirements for the retail industry:

- The retailer must keep a record of all the products coming into the store

- The range of products available at the store must be divided into small groups comprising of similar products Such groups are called categories

- A unique SKU code must be assigned to each and every product for easy tracking

- Don’t keep the customers waiting.

Concepts of business efficiency

Increasing business efficiency does not only mean cost reduction and profit increase for investors or owners of the company Business efficiency means the overall increase in the performance of business operations, including those elements that do not have direct connection with company’s profit Besides costs reduction and profits increase, increasing business efficiency includes the increase in the utilization of company resources, improvement of working conditions and customer satisfaction, as well as reduction of the negative impact of company’s business on the environment (Kasim et al 2018)

While old-fashioned companies equate constant activity with efficiency, they often build the wrong thing, resulting in failure Modern companies, in contrast, prioritize understanding customer needs Their efficiency lies in figuring out the right thing to do and using any tool or strategy to navigate towards fulfilling those needs, even if it means embracing detours (Eric Ries,

2017) Efficiency is one of the central terms in assessing business performance

Business performance is a critical measure of an organization's success and effectiveness in achieving its goals It encompasses various aspects, including financial performance, customer satisfaction, employee engagement, and operational efficiency Financial performance, often assessed through metrics like revenue growth and profitability, is a fundamental indicator of a company's health and sustainability Customer satisfaction plays a pivotal role in maintaining a loyal customer base and driving growth, as satisfied customers are more likely to make repeat purchases and recommend the business to others

Employee satisfaction and engagement are equally important, as motivated and

Formatted: Font color: Text 1 content employees tend to be more productive and innovative Moreover, operational efficiency, which involves optimizing processes and reducing costs, enhances the overall effectiveness of an organization Evaluating business performance through a combination of these factors helps companies make informed decisions, adapt to changing market conditions, and continuously improve their operations Key performance indicators (KPIs) and benchmarking are common tools used to assess and track these various aspects of business performance (Anderson et al 1994) Based on the theoretical foundations of business efficiency and performance, the thesis chooses 4 criteria for evaluation: (1) reduce costs, (2) increase revenue and profit, (3) improve working processes, and (4) improve customer service.

Definition of retail SMEs in Vietnam

Based on the regulations in Article 5 of Decree No 80/2021/ND-CP specifying criteria for determining specific small and medium-sized enterprises as follows:

For Business Activities in the Trade and Service Sector:

- Micro Enterprises: Having a number of employees participating in social insurance not exceeding 10 persons in a year; total revenue or capital sources in a year not exceeding 3 billion VND

- Small Enterprises: Having a number of employees participating in social insurance not exceeding 50 persons in a year; total revenue or capital sources in a year not exceeding 50 billion VND

- Medium Enterprises: Having a number of employees participating in social insurance not exceeding 100 persons in a year; total revenue or capital sources in a year not exceeding 100 billion VND

IMPACTS OF DIGITAL TRANSFORMATION ON

The Overview of Simple Nutrition Company

Simple Nutrition Vietnam is a retail nutritional supplement business that was founded in 2020 The company sells a wide range of nutritional supplements Simple Nutrition Vietnam is committed to providing its customers with high-quality products and excellent customer service To find out how business apply technology and digital transformation to human resource management, marketing & sales operations, and logistics management, we have designed a set of in-depth interview questions From there, determine the effectiveness that business has achieved when digitally transforming, as well as the difficulties that business is facing

The set of questions includes 10 questions, including content about business model, SWOT analysis, human resource management, marketing & sales operations and logistics management The question is a form of qualitative research representative who is also the co-founder of Simple Nutrition company

Therefore, the representative has an accurate and general perspective on the business situation, as well as how the business operates The interview will focus on the aspects outlined in the purpose of the study

Internal reports: The study will use internal reports of Simple Nutrition company to collect information about products, services, income statement, customer reviews by quarter and year

2.1.2 SWOT analysis of Simple Nutrition Vietnam

The results of SWOT analysis of Simple Nutrition Vietnam were surveyed based on the set of questions in addendum 3 and 4.

Simple Nutrition Vietnam is committed to providing customers with high quality products, manufactured from the best ingredients

Simple Nutrition Vietnam provides excellent customer service, with a team of professionally trained and dedicated staff

Simple Nutrition Vietnam targets young adult customers, office workers and sports players in

- New brand: Simple Nutrition Vietnam is a new business, so the company's brand is not yet known to many people

- High shipping costs: Simple Nutrition Vietnam only sells products online, so shipping costs can be an obstacle for customers

- Lack of diverse distribution channels: Simple Nutrition Vietnam only sells products online, so the company cannot reach many potential customers

- The growing nutritional supplement market: The nutritional supplement market is growing rapidly in Vietnam, as more and more people are interested in health and fitness

- The rise of e-commerce: E- commerce is increasingly popular in

- Competition from competitors: There are many competitors in the nutritional supplements market in Vietnam, especially imported goods from abroad and long-standing brands

- Competition from foreign businesses: Foreign businesses may have many advantages over Simple for Simple Nutrition Vietnam to reach more customers

- The development of social networks: Social networks are an effective tool to reach target customers, and Simple Nutrition

Vietnam can take advantage of social networks to promote its products and services

Nutrition Vietnam, such as abundant financial resources, experience and a large distribution network

The nutritional supplements market in Vietnam is experiencing many fraudulent activities and counterfeit goods This may affect Simple Nutrition Vietnam's reputation and make customers concerned about the quality of the company's products

- Government regulation: The government may issue new regulations for the nutritional supplement market.

Digital transformation in Simple Nutrition Vietnam

The results describe how Simple Nutrition Vietnam applies digital transformation surveyed based on the set of questions in addendum 3 and 4

2.2.1 Marketing & sales in Simple Nutrition Vietnam

Simple Nutrition Vietnam uses digital marketing to reach potential customers and promote its products The company uses social media platforms such as Facebook, Instagram, to create and share content about its products and services Simple Nutrition Vietnam also uses search engine optimization (SEO) to improve the visibility of its website in search engine results pages (SERPs)

- Website: Simple Nutrition Vietnam has a user-friendly website where customers can browse and purchase its products The website provides detailed

Formatted: Font color: Text 1 information about each product, including ingredients, nutritional value, and customer reviews Customers can also easily add products to their cart and checkout using a variety of payment methods

- Online marketplaces: Simple Nutrition Vietnam also sells its products on online marketplaces such as Shopee and Lazada This helps the company to reach a wider audience and to generate more sales

- Search engine optimization (SEO): Simple Nutrition Vietnam's website is optimized for relevant keywords, such as "protein powder Vietnam" and

"vitamin supplements Vietnam." This helps the company's website to rank higher in search engine results pages (SERPs), making it more visible to potential customers

- Pay-per-click (PPC) advertising: Simple Nutrition Vietnam uses PPC advertising to target potential customers who are already interested in the products or services that the company offers For example, Simple Nutrition

Vietnam may create PPC ads that target keywords such as "buy protein powder online Vietnam" or "best vitamin supplements for athletes Vietnam."

- Social media marketing: Simple Nutrition Vietnam is active on social media platforms such as Facebook, Instagram, and TikTok The company uses these platforms to share content about its products, run social media contests and giveaways, and engage with potential customers in real-time

- Email marketing: Simple Nutrition Vietnam collects email addresses from potential customers through its website and social media channels The company then sends out regular email newsletters with exclusive discounts, new product announcements, and other valuable content

2.2.2 Human resource management in Simple Nutrition Vietnam

Before applying digital transformation using HRM software, Simple

Nutrition Vietnam's human resource management process still encountered some limitations:

- Manual and time-consuming: Human resource management activities such as recruitment, training, performance appraisal, and compensation are all performed manually, leading to time consumption and errors

- Inconsistency: HR data is stored in many different places, leading to difficulty in accessing and analyzing

- Difficult to monitor: Human resource management activities are not closely monitored, leading to difficulty in evaluating effectiveness

To solve the above problems, Simple Nutrition Vietnam uses a human resource management system to manage its sales team The HRM system helps the company to track sales performance, manage commissions, and provide training and support to its sales team

- Track sales performance: HRM software helped Simple Nutrition Vietnam to track sales performance by tracking metrics such as sales volume, conversion rates, and average deal size This information can be used to identify top performers and areas for improvement

- Manage commissions: HRM software helped Simple Nutrition Vietnam to manage commissions by automating the calculation and payment of commissions This can save time and reduce errors HRM software was also used to create commission plans that are aligned with the company's sales goals For example, Simple Nutrition Vietnam could create a commission plan that rewards sales representatives for selling new products or for opening new accounts

- Training: HRM software helped Simple Nutrition Vietnam to provide training and support to its sales team by providing access to online training courses, employee manuals, and other resources HRM software was used to track employee training progress and identify areas where additional training is needed For example, Simple Nutrition Vietnam could use HRM software to track how many sales representatives have completed the company's product training course This information could be used to identify sales representatives who need additional training on specific products

- Payroll: HRM software with a payroll feature can automate the entire payroll process, from calculating employee pay to issuing paychecks This can save time and reduce errors Moreover, HRM software with a payroll feature can generate payroll reports that can be used to comply with tax laws and to track employee payroll costs

After applying digital transformation using HRM software, Simple

Nutrition Vietnam has achieved significant improvements in human resource management efficiency, specifically as follows:

- Average hiring time reduced from 30 days to 15 days

- The recruitment success rate increased from 80% to 90%

- Training costs are reduced by 20%

- The proportion of employees participating in training programs increased from 50% to 70%

- Performance assessment results are more accurate

- The percentage of employees satisfied with the performance appraisal system increased from 70% to 80%

- The remuneration system is more transparent and fairer

- The percentage of employees attached to the business increased from

2.2.3 Customer relationship management in Simple Nutrition Vietnam Formatted: Font color: Text 1

Before applying digital transformation using CRM software, Simple Nutrition Vietnam's customer relationship management process still encountered some limitations such as:

- Manual and time-consuming: Customer relationship management activities such as marketing, sales, and customer care are all performed manually, leading to time-consuming and error-prone processes

- Inconsistency: Customer data is stored in many different places, leading to difficulty in accessing and analyzing

- Difficult to monitor: Customer relationship management activities are not closely monitored, leading to difficulty in evaluating effectiveness Simple Nutrition Vietnam uses the CRM system to manage its customer relationships The company uses a customer relationship management system to track customer interactions and remind customers about upcoming promotions and events The CRM system also helps the company to personalize the customer experience and provide customers with the information and support they need

- Track customer interactions: CRM software tracks all of Simple Nutrition Vietnam's customer interactions, including email, phone calls, social media interactions, and in-store visits This data can be used to identify customer needs and preferences, and to provide more personalized customer service For example, if a customer has recently purchased a protein shake, CRM software can be used to send the customer an email with a reminder about upcoming promotions on protein shakes Or, if a customer has contacted customer service with a question about a product, CRM software can be used to track the customer's question and ensure that it is answered promptly and accurately

- Remind customers about upcoming promotions and events: CRM software was used to segment customers and send them targeted emails about upcoming promotions and events For example, Simple Nutrition Vietnam could segment customers based on their purchase history and send them emails about upcoming promotions on the products that they are most likely to be interested in

- Personalize the customer experience: CRM software was used to personalize the customer experience by providing customers with recommendations for products and services on the website based on their purchase history and interests For example, if a customer has recently purchased a protein shake, CRM software could recommend other products that are complementary to protein shakes, such as creatine or pre-workout supplements CRM software was also used to personalize the customer experience by providing customers with access to exclusive content and offers, such as exclusive recipes, training plans, or discounts on products

The benefit of digital transformation in Simple Nutrition Vietnam in

To evaluate the company's business performance, the results were collected data from the company's quarterly internal reports from Q1 2020 to

Q3 2023 Simple Nutrition Vietnam has achieved significant success through digital transformation The company has used digital technology to streamline its business processes, improve the customer experience, and increase sales

- Increased orders and revenue: Simple Nutrition Vietnam's sales have increased significantly since the company implemented its digital transformation initiatives Simple Nutrition Vietnam's revenue has grown by

50% year-over-year since the company implemented its digital transformation

Formatted: Font color: Text 1 initiatives The company's e-commerce platform has played a key role in this growth

- Reduced costs: Simple Nutrition Vietnam has been able to reduce costs by using digital technology to automate tasks and streamline its business processes Simple Nutrition Vietnam's profit margin has improved from 10% to 15% since the company implemented its digital transformation initiatives

- Improved operational efficiency: Simple Nutrition Vietnam has reduced its order processing time since the company implemented its digital transformation initiatives The company is now able to deliver its products to customers more quickly and efficiently

- Enhanced customer experience: Simple Nutrition Vietnam's customer satisfaction rating has increased from 85% to 95% since the company implemented its digital transformation initiatives The company's e-commerce platform and CRM system make it easy for customers to shop and to get the information and support they need

- Employee engagement: Employees have worked more productively, communicated effectively internally, and interacted well with customers The working environment has also become more positive (in-depth interview with business owner)

- Development of new products and services: Simple Nutrition Vietnam has been able to develop new products and services by using digital technology to gather customer feedback and to conduct market research

- Competitive advantage: Simple Nutrition Vietnam's use of digital technology has given the company a competitive advantage By effectively applying digital transformation, Simple Nutrition Vietnam has improved customer experience, competitive prices, quality products and a nationwide distribution network Within just 6 months of launching the product, the business has expanded its market to many provinces and cities across the country, and revenue increased 3 times more than expected

These numbers demonstrate how Simple Nutrition Vietnam has used digital transformation to improve its business efficiency across all key areas

By increasing sales, reducing costs, improving operational efficiency, enhancing the customer experience, developing new products and services, and gaining a competitive advantage, Simple Nutrition Vietnam has become a leading local brand in the retail nutritional supplement industry in Vietnam

Simple Nutrition Vietnam's success is a testament to the power of digital transformation By embracing digital technology, businesses can improve their efficiency and achieve their goals.

Challenges of Simple Nutrition Vietnam

Simple Nutrition Vietnam faces a number of challenges when applying digital transformation into business operations, including:

Digital transformation is so expensive and time-consuming, especially for small businesses like Simple Nutrition Vietnam The company haven’t the resources to invest in the latest digital technologies and to implement them effectively

To deploy Ecommerce, Simple Nutrition Vietnam needs to invest in the following items: Website design and construction: This cost includes the cost of interface design, programming, and website hosting Online advertising:

This cost includes the cost of running ads on online channels such as Google

Ads, Facebook Ads, and TikTok Ads

Besides, to implement digital transformation, Simple Nutrition Vietnam needs to purchase software such as HRM software, CRM software, logistics management software The cost of purchasing software can be very high,

Formatted: Font color: Text 1 especially for small and medium-sized businesses Simple Nutrition Vietnam has had difficulty finding software solutions that fit the business's budget

Digital transformation requires a team of skilled and experienced professionals Simple Nutrition Vietnam may not have the staff with the necessary expertise to implement and manage digital technologies Skills in using CRM, SCM, HRM software: When working at an enterprise, personnel must learn how to use these softwares from the beginning Data analysis skills:

The advantage of digital transformation is a rich data warehouse However, employees do not have good data analysis skills to come up with initiatives and work effectively

Digital transformation can require a significant cultural shift within a company Employees may need to learn new skills and adapt to new ways of working Simple Nutrition Vietnam may need to invest in training and development programs to help its employees adjust to the digital transformation process Simple Nutrition Vietnam is a young business, newly established not long ago Businesses are small in scale and have limited resources, so they have difficulty shifting corporate culture to digital transformation

Difficulty with objections from employees

Many employees may feel anxious or scared about changing the way they work They may worry that they won't be able to keep up with these changes, or that they will lose their jobs Simple Nutrition Vietnam has had difficulty alleviating these employee concerns The business has organized training sessions and seminars to help employees better understand digital transformation and its benefits

Difficulties in opposition from departments

Departments within a business may have different goals and interests

This can lead to opposition from departments when businesses deploy digital transformation solutions Simple Nutrition Vietnam had difficulty resolving conflicts between departments The business has established a digital transformation team to coordinate across departments and ensure that all digital transformation solutions are consistent with the overall goals of the business

Difficulty of lack of understanding about digital transformation

Many employees may not have a clear understanding of digital transformation and its benefits This can lead to resistance to changes Simple

Nutrition Vietnam has had difficulty raising employee awareness about digital transformation The business has organized training sessions and seminars to help employees better understand digital transformation and its benefits

Customer needs and expectations are constantly changing Simple

Nutrition Vietnam needs to be able to adapt its digital transformation initiatives to meet the changing needs of its customers Customers always change over time, in terms of needs, preferences and shopping behavior Customers have more and more choices of products and services They not only care about quality and price, but also other factors such as sustainability, social responsibility and customer experience Customers increasingly want convenience in shopping and using products They want to be able to shop anytime, anywhere and receive products quickly Customers increasingly want a good customer experience They want to be treated with respect and given good support when needed Simple Nutrition Vietnam needs to clearly understand customer needs to be able to meet those needs and maintain customer satisfaction

2.4.5 Vietnamese people prefer imported goods

Simple Nutrition Vietnam competes with both domestic and imported brands Vietnamese consumers often prefer imported goods, which can be a challenge for domestic companies like Simple Nutrition Vietnam Imported goods from Europe and the US often have higher prices than domestically produced goods This makes it difficult for Vietnamese businesses to compete on price Imported goods from Europe and the US are often of higher quality than domestically produced goods This makes it difficult for Vietnamese businesses to ensure product quality to meet customer needs In addition to these challenges, Simple Nutrition Vietnam also faces some specific challenges related to its industry:

- The retail nutritional supplement industry is highly regulated Simple

Nutrition Vietnam needs to ensure that its digital transformation initiatives comply with all applicable regulations

- The retail nutritional supplement industry is competitive Simple

Nutrition Vietnam needs to use digital transformation to differentiate itself from its competitors

Despite these challenges, Simple Nutrition Vietnam is committed to digital transformation The company is investing in digital technologies and hiring experienced professionals to implement and manage its digital transformation initiatives Simple Nutrition Vietnam is also working to develop a cybersecurity strategy to protect its business from cyberattacks

By addressing these challenges, Simple Nutrition Vietnam can successfully implement digital transformation and achieve its business goals.

Solutions for Simple Nutrition Vietnam

Here are some specific solutions for Simple Nutrition Vietnam to tackle the challenges it faces when applying digital transformation into business operations:

- Partner with other businesses or organizations to share resources and costs For example, Simple Nutrition Vietnam could partner with a marketing agency to help it implement digital marketing campaigns, or it could partner with a cloud computing provider to help it store and manage its data

- Partnering with a tech solutions provider can be a great way for Simple Nutrition Vietnam to tackle the lack of resources challenge A tech solutions provider can provide Simple Nutrition Vietnam with the resources and expertise it needs to implement and manage its digital transformation initiatives

- Invest in training and development programs to help employees develop the skills they need for digital transformation Simple Nutrition Vietnam can offer in-house training programs or send employees to external training courses The company can also partner with universities and colleges to offer training programs to its employees

- Hire experienced professionals to help implement and manage digital transformation initiatives Simple Nutrition Vietnam can hire experienced digital marketers, data analysts, and software engineers to help it implement and manage its digital transformation initiatives

- Communicate the importance of digital transformation to employees and provide them with support during the transition process Simple Nutrition Vietnam can hold regular meetings and workshops to communicate the importance of digital transformation to its employees The company can also provide employees with access to resources and training to help them learn new skills and adapt to new ways of working

- Create a culture of innovation and experimentation Simple Nutrition Vietnam can encourage employees to try new things and learn from their mistakes This can be done by providing employees with opportunities to experiment with new technologies and by rewarding innovative ideas

- Use data analytic to understand the changing needs of customers and to develop digital transformation initiatives that meet those needs Simple Nutrition Vietnam can collect data about customer behavior and preferences through its website, social media channels, and customer surveys This data can be used to identify trends and opportunities for improvement

- Create a feedback loop to gather feedback from customers and to use that feedback to improve digital transformation initiatives Simple Nutrition Vietnam can create a feedback loop by asking customers for feedback through surveys, email, and social media This feedback can be used to improve the customer experience and to make digital transformation initiatives more effective

Vietnamese people prefer imported goods:

- Focus on building brand reputation and quality to convince Vietnamese consumers that products are as good as imported goods Simple Nutrition Vietnam can invest in marketing and advertising to build its brand reputation The company can also focus on producing high-quality products that meet the needs of Vietnamese consumers

- Partner with imported brands to offer a wider range of products to customers Simple Nutrition Vietnam can partner with imported brands to offer a wider range of products to its customers This can help the company to attract customers who prefer imported goods

Work with regulatory authorities to understand the latest regulations and to ensure that digital transformation initiatives comply with all applicable regulations Simple Nutrition Vietnam can meet with regulatory authorities to discuss its digital transformation plans and to ensure that they comply with all applicable regulations The company can also subscribe to industry newsletters and publications to stay up-to-date on the latest regulations

Use digital transformation to differentiate from competitors Simple

Nutrition Vietnam can use digital technology to offer innovative products and services, or to improve the customer experience For example, the company could develop a mobile app that allows customers to order products and track their shipments The company could also use social media to create a community for its customers and to provide them with exclusive offers and discounts

By addressing these challenges, Simple Nutrition Vietnam can successfully implement digital transformation and achieve its business goals.

Evaluate the role of digital transformation in a number of retail firms

based on Simple Nutrition Vietnam

The research author tried to reach about 150 businesses, but received 100 survey results, conducted through the internet An in-depth interview was conducted with business owners of 100 retail businesses, 100% of small and medium-sized businesses The interview will focus on the aspects outlined in the purpose of the study The operating time of most businesses is 1 year or more, reaching 96% Therefore, businesses have begun to operate stably and have a development orientation

Figure 2.1: Operating time of businesses surveyed

The survey subjects of this thesis are business owners of small and medium-sized retail businesses The age of business owners ranges from 18 -

50 years old The geography of the businesses was randomly selected across the country

Below are the survey results based on a set of questions designed by the researcher This set of questions includes 19 questions (details of the questionnaire are in the addendum 1 and addendum 2 These questions are designed to collect information about how businesses have applied digital transformation to business management, thereby achieving improved business performance The set of questions explores the technology applications the company has applied, positive and negative changes before and after their application The number of businesses surveyed was 100 businesses The survey results are shown in figures 2.1, 2.2, 2.3, 2.4 and 2.5

Figure 2.2: Software that the group of business surveyed are using

After conducting a survey of 100 businesses, only 24% of retail businesses use HR management software The above information shows that the rate of using human resource management software (HRMS) in SME retail businesses is still relatively low Small and medium-sized enterprises (SMEs) often have fewer employees, typically ranging from a few dozen to a hundred

Therefore, these businesses may manage HR manually using methods like notebooks and spreadsheets, leading them to perceive no need to invest in HR management software

According to survey results displayed figure 2.2, retail businesses focused on implementing ways to promote sales through e-commerce, digital marketing, leveraging and managing customer data

Websites and e-commerce platforms: 60% of retail businesses use websites and e-commerce platforms to reach customers and increase revenue

Digital advertising: 28% of retail businesses have used digital advertising to improve brand recognition and sales

Customer relationship management (CRM) software: 36% of retail businesses have used CRM software

Mobile apps: Only 20% of a group of retail businesses have adopted mobile apps The development and maintenance costs of mobile apps can be significant for SMEs, ranging from several million to several billion dong, depending on the app's scale and features Additionally, SMEs also need to budget for app maintenance, upgrades, and promotion These expenses can create financial pressure for SMEs Large e-commerce platforms like Shopee, Lazada, Tiki, etc., dominate a significant portion of the online retail market These platforms benefit from their scale, resources, and technology, allowing them to offer diverse and appealing products, services, and shopping experiences to customers Consequently, many SMEs leverage existing mobile apps to optimize their business operations rather than building a new mobile app, which can be costly and time-consuming

Enterprise resource planning (ERP) systems: Only 8% of a group of retail businesses have adopted ERP systems ERP systems are integrated business management systems that automate processes and efficiently manage resources

About logistics management, there were 40% of retail businesses surveyed using logistics management software It is a positive sign It shows that retailers are increasingly recognizing the importance of effective logistics management (Figure 2.2)

2.6.2 Improvement of human resource management

Figure 2.3: Benefits that the group of businesses surveyed gain from digital transformation

According to the survey result in figure 2.3, among businesses applying digital human resource management, 32% of businesses have optimization in management processes This is not a small number, enough to realize that applying digital human resource management will be useful for small and medium-sized retail businesses

During in-depth interviews, business owners revealed that before using

HRM software, business owners had to manually manage human resources, which consumed a significant amount of their time for monitoring and tracking, making it challenging to assess personnel accurately From the employees' perspective, they had to invest a lot of time in generating daily, monthly, and quarterly productivity reports, reducing their efficiency in their core work

Specifically in the following activities (surveyed by addendum 3):

- Recruitment and selection: HR professionals would typically source candidates through job postings, employee referrals, and networking They would then conduct interviews and make hiring decisions based on their judgment and experience

- On-boarding: New employees would typically be onboarded by their manager or by another experienced employee This would involve training on company policies and procedures, as well as specific job duties

- Payroll: HR professionals would typically calculate employee paychecks by hand or using a spreadsheet They would then withhold taxes and other deductions manually

- Performance management: Managers would typically set goals for their employees and track their progress informally Feedback would also be provided informally, typically during one-on-one meetings

Overall, manually managing HR in retail SMEs can be a challenging and time-consuming task Digital transformation can help to automate many of these tasks, freeing up HR professionals to focus on more strategic initiatives

When applying technology to the human resource management process, managers can easily control the number of employees from many different sources, including employee records, timekeeping, performance evaluation, and many systems other Secondly, digital transformation allows for the automation of human resource management processes, such as time management and attendance This helps reduce the time and effort needed for administrative work, helping employees focus on their main work

Additionally, data intelligence provides accurate information for decisions about hiring, training, and promotion This helps businesses make correct and effective decisions, optimize resource use and improve productivity

2.6.3 Improvement of marketing & sales Formatted: Font color: Text 1

For retail businesses, using online sales platforms such as websites and e-commerce platforms helps retail businesses reach more customers, including remote customers Website is an effective online marketing channel that helps businesses introduce their products and services to potential customers Digital advertising helps businesses target customers likely to be interested in their products and services

Effectively reaching customers, expanding markets, and improving customer experience are the basis for a business to grow its sales and profits

This is also shared by the group of small and medium-sized retail businesses

Figure 2.4: Positive effects on the group of businesses when applying digital transformation

According to survey results, 40% of retail businesses saw an increase in repeat purchase rates; 36% saw an increase in the number of new customers;

28% of retail businesses saw an increase in closing rates after implementing digital transformation in their Sales & Marketing processes This proves that applying digital technology to the sales & marketing process brings significant benefits in terms of business performance for businesses through improving customer experience, understanding customer needs better, expanding market reach, and reaching customer more effectively (Figure 2.4)

Since then, revenue and profits have grown rapidly Of these, 24% of businesses reported a revenue increase of over 20%, and 12% of businesses reported a profit growth of over 10% (Figure 2.4) 52% of small and medium- sized retail businesses are able to easily expand their market reach, 52% of small and medium-sized retail businesses are increasing their revenue and profits (Figure 2.3)

Businesses owners shared the opinions, with the retail model, deploying sales through e-commerce channels, digital advertising is almost an inevitable strategy in the digital era, when customers tend to use the internet more

Therefore, applying technology and digitally transforming sales & marketing processes is to increase opportunities for businesses

This is quite clear evidence that digital transformation in sales & marketing processes has a very positive impact on business efficiency of those businesses

Before applying technology to logistics management, those retail businesses had to operate manually and encountered many difficulties, specifically as follows:

- Lack of control: Inability to control logistics activities effectively This leads to excessive inventory, goods not being shipped on time, and high operating costs

SUGGESTION FOR OTHER RETAIL SMES IN VIETNAM 3.1 Suggestion for retail small and medium enterprises

Logistics solutions

Logistics is one of the important activities of retail businesses Effective logistics management helps businesses ensure a stable supply of goods, meet customer needs and optimize costs To successfully digitally transform supply chain management, retail SMEs need to build a digital transformation strategy appropriate to the scale and needs of the business Businesses also need to choose digital technology solutions that suit their financial capacity and deployment capabilities Below are some notes when implementing digital transformation of logistics management for retail SMEs:

- Start with simple, easy-to-implement activities Businesses should not deploy too many digital technology solutions at the same time, this can cause difficulties in management and deployment

- Focus on specific goals Enterprises need to clearly identify the specific goals they want to achieve when implementing digital transformation of logistics management

- Create a change in corporate culture Digital transformation is not only a matter of technology, but also a matter of changing the thinking and behavior of businesses

- With the development of technology, digital transformation of logistics management is an inevitable trend for SMEs retail businesses By applying appropriate digital transformation solutions, businesses can optimize operations, save costs and enhance competitiveness

Here are some examples of logistics management digital transformation solutions for retail SMEs:

- Use logistics management software Logistics management software helps businesses automate logistics management processes, including purchasing planning, order management, shipping, inventory tracking, and product quality control

- Use data analysis tools Data analytics tools help businesses analyze data from the logistics, thereby making effective business decisions

- Integrate with partners Integrating with partners helps businesses optimize operations and save costs.

Sales & marketing solutions

To effectively deploy sales & marketing digital transformation solutions, businesses need to be carefully prepared in terms of strategy, resources and technology Businesses need to clearly define digital transformation goals, then choose appropriate solutions Businesses also need to invest in resources, including human resources, finance and technology

 Determine digital transformation goals: Enterprises need to clearly define digital transformation goals, including: sales goals, market share goals, customer experience goals

 Choose the right solution: Businesses need to choose solutions that suit the business's actual and digital transformation goals

 Implementation organization: Enterprises need to organize the implementation of solutions effectively This requires coordination between departments within the business

 Evaluate effectiveness: Enterprises need to evaluate the effectiveness of digital transformation solutions after implementation This helps businesses adjust solutions accordingly

This digital transformation brings many benefits to retail businesses, including:

- Efficiency when reaching customers: Digital transformation helps businesses reach customers more effectively, on many different channels, from online to offline This helps businesses reach more potential customers and increase customer conversion

- Increase customer experience: Digital transformation helps businesses provide customers with a seamless and personalized experience across all channels This helps businesses build better relationships with customers and increase customer loyalty

- Market expansion: Digital transformation helps businesses expand their market to new areas and reach more customers

Below are some sales & marketing digital transformation solutions for retail businesses to achieve efficiency in reaching customers, increasing customer experience, and expanding markets:

- Integrate sales channels: SMEs retail businesses need to integrate online and offline sales channels so customers can shop in the most convenient way This helps businesses reach more customers and increase sales

- Sales process automation: Retail SMEs can use sales process automation tools to save time and costs, while increasing the efficiency of sales activities

- Personalize customer experience: Retail SMEs can use data analytics tools to better understand customers, thereby providing customers with more personalized shopping experiences

- Enhance interaction with customers: Retail SMEs can use social networking channels, chatbots, and email marketing to increase interaction with customers This helps businesses build better relationships with customers and increase customer loyalty.

Human resource management solutions

Digital transformation of human resource management is the application of digital technologies to the human resource management activities of an

Formatted: Font color: Text 1 enterprise This digital transformation brings many benefits to businesses, including:

Digital transformation helps businesses reduce costs related to human resource management, such as paperwork costs, printing costs, and storage costs

- Automate manual processes: Modern HRM software automates many manual processes, such as time tracking, payroll, and employee records management This can help save time and costs for HRM staff, allowing them to focus on more strategic tasks

- Reduce paperwork costs: Human resource management software helps businesses convert to storing employee records electronically This can help save on printing costs, storage, and document security

- Enhance efficiency: Digital transformation will help businesses improve the efficiency of human resource management processes This can lead to reduced costs due to reduced errors, increased productivity, and improved decision-making

Digital transformation helps businesses easily monitor and evaluate the effectiveness of human resource management activities

- Increase accuracy: Modern human resource management software can help businesses reduce errors in manual processes This can help improve the accuracy of HR data, thereby helping businesses make more informed decisions

- Increase efficiency: Digital transformation can help businesses improve the efficiency of human resources management processes This can lead to increased productivity, reduced processing time, and improved decision- making

- Enhance transparency: Modern human resource management software can help businesses provide human resource information in a transparent and timely manner This can help managers and employees better understand HR policies and processes, thereby improving collaboration and decision-making Proposing solutions for digital transformation of human resource management for retail SMEs:

- Using human resource management software: Human resource management software is an effective solution that helps businesses automate human resource management processes, including: recruitment, training, evaluation, compensation, and welfare

- Using cloud technology: Cloud technology helps businesses access human resources data from anywhere, at any time This helps businesses save on infrastructure investment and system maintenance costs

- Automate human resource management processes: Businesses can automate simple human resource management processes, such as timekeeping, payroll, and sending human resource notifications This helps businesses save time and costs

- Use data analysis tools: Businesses can use data analysis tools to better understand employees, thereby making more effective human resources management decisions

To effectively deploy digital transformation of human resource management, retail SMEs need to have a specific implementation roadmap The implementation roadmap should include the following steps:

Step 1: Determine goals: Enterprises need to clearly define their goals for digital transformation of human resource management, including:

- The goal of optimizing management processes

Step 2: Survey the current situation: Enterprises need to survey the current state of their human resource management activities to determine the problems that need to be solved

Step 3: Choosing solutions: Businesses need to choose solutions that suit the goals and reality of the business

Step 4: Implementation: Enterprises need to implement solutions effectively Step 5: Evaluate effectiveness: Enterprises need to evaluate the effectiveness of digital transformation solutions after implementation This helps businesses adjust solutions accordingly

Conclusions

The thesis conducted research on digital transformation and business efficiency of a group of small and medium-sized retail enterprises in Vietnam

The research was conducted using a combination of quantitative and qualitative methods, based on survey data from 100 retail businesses in Vietnam and a case study on digital transformation of business activities of Simple Nutrition

Case study of Simple Nutrition Vietnam

Simple Nutrition Vietnam Enterprise is a successful example of a retail

SME that has successfully implemented digital transformation The company has adopted a range of digital technologies, including e-commerce, social media marketing, human resource management, and logistics management

This has helped the company to reach a wider customer base, improve customer satisfaction, increase sales, and improve operational efficiency

A number of retail SMEs in Vietnam

Research results show that digital transformation has a positive impact on the business efficiency of some small and medium-sized retail enterprises in

Vietnam Specifically, digital transformation helps retail businesses improve the following indicators:

- Revenue: Digital transformation helps retail businesses reach more customers, thereby increasing revenue

- Profit: Digital transformation helps retail businesses optimize costs, thereby increasing profits

- Customer satisfaction: Digital transformation helps retail businesses provide better service to customers, thereby increasing customer satisfaction

The study also identified a number of challenges, which these retail

SMEs face in implementing digital transformation These challenges include lack of resources, lack of expertise, and lack of awareness

The study concluded by providing a number of recommendations for retail SMEs to help them overcome the challenges of digital transformation and achieve the benefits These recommendations include:

- Develop a digital transformation strategy: Retail SMEs should develop a digital transformation strategy that is aligned with their overall business goals

- Invest in digital technologies: Retail SMEs should invest in the right digital technologies to meet the needs of their customers and improve their operational efficiency

- Upskill their workforce: Retail SMEs should upskill their workforce to use and manage digital technologies effectively

- Partner with other organizations: Retail SMEs should partner with other organizations, such as technology providers and government agencies, to get the support they need to implement digital transformation.

Implications

- Retail SMEs should develop a digital transformation strategy that is aligned with their overall business goals This strategy should identify the specific digital technologies that the business will invest in and how these technologies will be used to achieve the business's goals

- Retail SMEs should invest in the right digital technologies to meet the needs of their customers and improve their operational efficiency This may involve investing in new technologies, such as e-commerce platforms and social media marketing tools, or upgrading existing technologies

- Retail SMEs should upskill their workforce to use and manage digital technologies effectively This may involve providing training on new software applications or developing new skills in areas such as data analysis and digital marketing

- Retail SMEs should partner with other organizations, such as technology providers to get the support they need to implement digital transformation This could involve partnering with a technology provider to implement a new e-commerce platform or working with a government agency to access financial assistance for digital transformation projects

The case study of Simple Nutrition Vietnam Enterprise shows that digital transformation can be a powerful driver of growth and success for retail SMEs

By implementing a range of digital technologies, Simple Nutrition Vietnam Enterprise has been able to reach a wider customer base, increase sales, and improve operational efficiency

However, it is important to note that digital transformation is not a one- time event It is an ongoing process that requires continuous investment and effort Retail SMEs that are committed to digital transformation should start by developing a clear strategy and roadmap They should also identify the specific digital technologies that are most relevant to their business and customers Once they have identified the right technologies, they should invest in training their employees and developing a culture of digital innovation

- More research is needed to identify the specific factors that influence the success of digital transformation in retail SMEs This research could help to develop better frameworks and tools to help retail SMEs implement digital transformation effectively For example, researchers could investigate the role of factors such as firm size, industry, and management capabilities in digital transformation success

- More research is needed to understand the impact of digital transformation on the different aspects of retail SME efficiency, such as sales, profitability, and customer satisfaction This research could provide valuable insights for policymakers and practitioners For example, researchers could examine the causal relationship between digital transformation and retail SME efficiency, and identify the mechanisms through which digital transformation leads to improved efficiency.

Limitations

- Regarding research method: The study uses qualitative analysis method, based on survey data from 100 small and medium-sized retail enterprises in Vietnam, combined with qualitative analysis and in-depth interviews with businesses and a specific case This leads to a conclusion that may not be general and suitable for the majority of retail businesses in Vietnam

- Regarding the scope of the research: The research only focuses on one case study and a small group of small and medium-sized retail enterprises in

Vietnam Therefore, the conclusions of the study may not be accurate for all businesses in the same industry and larger scale

- About research data: Research data is collected from online surveys, which may lead to bias due to survey participants being dishonest or lacking information

- With limited research time and not really deep knowledge, the thesis still needs further research and development to make it more complete

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APPENDIX ADDENDUM 1: ENGLISH SURVEY QUESTIONAIRES

Questions about digital transformation in retail businesses

B From 3 to 10 billion VND/year

5 Number of employees in the company?

6 Have you known about the concept of digital transformation?

7 Have you ever participated in a seminar/event about digital transformation?

8 Have you used information technology (IT) tools to manage your business? (For example: human resources management software, website, social media, etc.)

C Planning to use in the year

9 If you have used, what are the tools? A Human resources management software (HRM)

B Customer relationship management software (CRM)

F Enterprise resource planning system (ERP)

10 Have you estimated the resources

(time, financial resources, human resources) needed to implement digital transformation?

11 Which of the following obstacles have you encountered when transforming digitally?

B Lack of knowledge and skills of personnel

12 If you have a good understanding, please present your understanding of digital transformation and what needs to be prepared for digital transformation

13 What benefits has digital transformation brought to your business?

A Optimized warehouse management, customer data

F Increased business efficiency (increased revenue, orders, profits)

14 Which of the following are true for your business?

A Reduced operating costs by over 20%

D Optimized employee productivity by over 30%

F The number of new customers increases

G The number of positive reviews and good feedback increases

15 What benefits of digital transformation are you interested in for your business?

A Optimized warehouse management, customer data

G Increased business efficiency (increased revenue or profits)

16 In the near future (1-3 years), do you intend to (continue) digital transformation of the company's operations?

17 When choosing digital transformation solutions, what factors do you consider?

18 If implemented, how much budget are you willing to spend on digital transformation?

A Under 5% of total operating costs

D Over 20% of total operating costs

19 According to you, which function of a retail business needs to be prioritized for digital transformation?

STT Câu hỏi Câu trả lời

3 Thời gian hoạt động A Dưới 1 năm

D Trên 10 năm Câu hỏi về chuyển đổi số trong doanh nghiệp bán lẻ

4 Doanh thu hàng năm A Dưới 3 tỷ/ năm

5 Số lượng nhân sự của công ty A Dưới 10 nhân sự

6 Bạn đã biết về khái niệm chuyển đổi số chưa?

7 Bạn đã từng tham gia hội thảo/ sự kiện về chuyển đổi số chưa?

C Sắp tới có ý định tham gia

8 Bạn đã sử dụng các công cụ công nghệ thông tin (IT) để quản lý doanh nghiệp chưa? (Ví dụ: phần mềm quản lý nhân sự, website, mạng xã hội, v.v.)

C Chuẩn bị sử dụng trong năm nay

9 Nếu có sử dụng thì là những công cụ nào?

A Phần mềm quản lý nhân sự (HRM)

B Phần mềm quản lý quan hệ khách hàng (CRM)

C Phần mềm quản lý kho (WMS)

10 Bạn đã đoán định được nguồn lực (thời gian, nguồn tài chính, nhân lực) cần thiết để thực hiện chuyển đổi số không?

11 Những trở ngại nào dưới đây bạn đã gặp phải khi chuyển đổi số

A Thay đổi văn hóa tổ chức

B Nhân sự thiếu kiến thức và kỹ năng

D Bảo mật và quyền riêng tư

12 Nếu đã nắm rõ, bạn vui lòng trình bày sự hiểu biết của bạn về chuyển đối số và những gì cần phải chuẩn bị để CĐS

13 Chuyển đổi số đã mang lại những lợi ích gì cho doanh nghiệp của bạn?

A Tối ưu hóa quản lý kho, dữ liệu khách hàng

C Phân tích dữ liệu thông minh

D Giảm chi phí vận hành

E Tối ưu hóa quản lý nhân sự

F Tăng hiệu quả kinh doanh (tăng doanh thu, đơn hàng, lợi nhuận)

14 Những điều nào sau đây đúng với doanh nghiệp của bạn

A Giảm trên 20% chi phí vận hành

B Tăng trưởng doanh thu trên 20%

C Tăng trưởng lợi nhuận trên 10%

D Tối ưu năng suất nhân sự trên 30%

E Tỷ lệ lặp lại mua hàng tăng

F Số lượng khách hàng mới tăng

G Số lượng đánh giá tích cực và phản hồi tốt

H Tỷ lệ chốt đơn tăng

15 Bạn quan tâm đến lợi ích gì của chuyển đổi số đem lại cho doanh nghiệp?

A Tối ưu hóa quản lý kho, dữ liệu khách hàng

C Phân tích dữ liệu thông minh

D Giảm chi phí vận hành

F Tối ưu quản lý nhân sự

G Tăng hiệu quả kinh doanh (tăng doanh thu hoặc lợi nhuận)

16 Trong tương lai gần (1 - 3 năm), bạn có ý định (tiếp tục) chuyển đổi số vận hành doanh nghiệp không?

17 Khi lựa chọn các giải pháp chuyển đổi số, bạn xem xét các yếu tố gì?

18 Nếu thực hiện, bạn sẵn sàng chi bao nhiêu ngân sách cho chuyển đổi số

A Dưới 5% tổng chi phí vận hành

B 5 - 10% tổng chi phí vận hành

C 10 - 20% tổng chi phí vận hành

D Trên 20% tổng chi phí vận hành

19 Theo bạn, chức năng nào của doanh nghiệp bán lẻ cần ưu tiên chuyển đổi số?

D Hậu cần & chuỗi cung ứng

ADDENDUM 3: ENGLISH DEPTH INTERVIEWING QUESTIONAIRES

2 SWOT analysis of the business?

3 How is the enterprise's human resource management operating?

4 How to evaluate the productivity of each employee?

5 What do the marketing activities implemented include? Give details about marketing and sales activities?

6 How is the effectiveness of marketing strategies evaluated?

7 What do logistics management activities include? What is the goal of each activity? How effective is each activity?

8 How do you evaluate the business situation of the enterprise in recent times? Before and after applying technology, how are digital transformation applications different?

9 In your opinion, what are the biggest challenges and opportunities businesses are facing?

10 What plans do you have to help businesses overcome challenges and seize these opportunities?