impact of artificial intelligence on individuals in organizations

The benefits and challenges of AI im Tiki”s operafi0Ws...--- sec sec 15 3.2 Some harmful effects can occur when employees apply AI in their work process 15 3.3 Challenges Tiki businesses

VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

DAI HOC TON ĐỨC THẮNG

TON DUC THANG UNIVERSITY

HCMC, 14'" January, 2024

EVALUATION OF WORK PERFORMANCE LEVELS

No Full name Student ID Evaluation

2.2 0n on 8

CHAPTER 2: ANALYZING THE IMPACT OF Al ON INDIVIDUALS IN THE 9) 6010/2290 NÁ.: 11

1.1 Tiki 962 i92r i5 11

E5 130 › m“ ềẦẦ 11

2.2 Other supporf rObOfS cctt TH 1111111112111 0 111111.111111EEEErke 13

3 The benefits and challenges of AI im Tiki”s operafi0Ws - sec sec 15

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

J9 CO , 16 CHAPTER 3: SOLUTIONS AND PROSPECTS IN THE FUTURE 18 › 0 5 18

CHAPTER 4: CONCLUSION HH HH HH ve 20 REFERENCES HH HH HH HH Tp 21

LIST OF FIGURE

Figure 1.Tiki's market share lags behind other e-commerce platforms 12 Figure 2.Tiki applies robots to logistics acfivifies coi sà 14

ACKNOWLEDGEMENT

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

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

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

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

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

Sincerely thanks!

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

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

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

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

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

CHAPTER 1: INTRODUCTION

1 Definition of artificial intelligence

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

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

e The system acts like a person

e The system can think like a person

e The system can think rationally

e Rational action system

2 Development history of Al and main fields

2.1 Key milestones of Al

e 1950 - The beginning: McCarthy makes the first hints about Al

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

e 1980 - The year of Al's prosperity: expanded investment in algorithms and thanks to deep learning techniques, it reached and learned from user experiences

e 2000's - Reaching the finish line: technology was successfully established and is increasingly approaching and conquering new successes in many fields

2.2 Main areas of Al

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

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

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

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

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

on more complex customer problems

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

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

3 The recent development of Al in Vietnam

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

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

se Investment is not yet feasible

e The national data development, storage and sharing strategy is still limited

se Application in key industries in Vietnam (industry, agriculture, healthcare) is not large

e Facilities and information for Al technology development are still weak

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

« Economy 4.0 is blooming in our country

e The number of internationally published works on Al is increasing

e Gradually receiving attention from leaders at all levels recently

e Development of startups, research projects and training programs

4 The necessity of Al for current bussiness

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

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

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

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

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

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

satisfaction, thereby creating long-term relationships and also increasing the business's reach and marketability

Therefore, current Al systems are effective enough to reduce the presence of humans in labor in many different fields With this technological workforce, work is completed quickly and with high precision In addition, Al also provides opportunities

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

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

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

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

10

CHAPTER 2: ANALYZING THE IMPACT OF Al ON INDIVIDUALS

The company's name is derived from combining the initial syllables of the Vietnamese words "Tim kiém" (Search) and "Tiét kigm" (Save), reflecting its

commitment to providing the best experience for customers

1.2 Formation and Development Journey

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

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

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

1.3 Business Model

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

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

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

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

11

1.4 Operating Philosophy

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

1.5 Tiki's Position in the Industry

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

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

Thị phần doanh thư các sản TMĐT Trong Quý 1/2023 Doanh thu (đồng) Sản lượng CS eee a

Sendo 55 tỷ 290 nghìn sắn phẩm 10,646 Đoanh thụ trên các sàn TMĐT trong Quý 1/2023

Bshopee Blazada Btki Bsendo mtiktok shop

1n Copyright © 2023 Metric, All rights reserved TONG QUAN QUY 1/2023

Figure 1.Tiki's market share lags behind other e-commerce platforms

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

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

12

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

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

2 The application of Al to Tiki's operations

2.1 Automated robot applications

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

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

in the near future

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

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

to that, their employees can focus on more complex tasks

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

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

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

Warehouse management robots are used to optimize the storage and arrangement

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

13