Vietnamese Businesses: Three Major “Bottlenecks” in the Digital Transformation Journey

Digital transformation is no longer a new concept. From large corporations to SMEs, everyone talks about applying technology, AI, and data to boost productivity and optimize operations. However, in reality, most Vietnamese businesses are still “transforming” in words but not truly “changing” in practice. Many technology projects remain unfinished, software systems are left unused, employees feel frustrated, and leaders grow impatient — “We’ve invested, but where are the results?” The problem doesn’t lie in technology itself. It lies in people and the approach.

Bottleneck 1: Leadership lacks unity and true direction

In many consulting projects, we’ve found that leaders often “talk about digital transformation” but don’t truly “live with it.” Some CEOs want to move fast, while functional directors are not ready. Some think digital transformation means buying software; others think it’s about doing online marketing. The result: each department moves in a different direction, systems become misaligned, and employees don’t understand why they are changing in the first place.

Practical solutions:

• Unify the digital vision: The leadership team must collectively answer three core questions — “Why are we transforming? Who will it impact? What does success look like?”

• Establish a Digital Transformation Committee with clear roles, regular meetings, and a Transformation Leader to ensure consistent commitment from top to bottom.

Bottleneck 2: Employees lack digital skills and adaptive mindset

Many businesses invest hundreds of millions of VND in CRM, ERP, or LMS platforms — yet employees don’t know how (or don’t want) to use them.

Common causes:

• Fear of technology and reluctance to learn new things.

• Lack of understanding of “how this tool helps me.”

• Old processes remain unchanged, so despite having new systems, employees revert to Excel or Zalo.

Practical solutions:

• Provide basic digital skills training for the entire workforce, including software usage, data security, system-based work, and AI applications.

• Shift from “forced learning” to “motivated learning” through microlearning programs, minigames, and recognition for digital innovation.

• Integrate technology into daily work so employees see immediate benefits — for example, 30% less time spent on reporting, 20% higher productivity.

Bottleneck 3: Investing in technology without changing processes

This is the most common trap. Businesses spend money on new systems, but old processes remain unchanged. The system looks modern on the surface, yet operations underneath are still manual, slow, and redundant. That is not digital transformation — it is wasteful digitization.

Practical solutions:

• Standardize processes before applying technology. Redraw workflows using Lean principles — eliminate unnecessary steps and clarify roles and responsibilities.
• Adopt technology that matches organizational capability. Instead of buying expensive software, start with tools that fit your size — such as Power BI, Notion, ChatGPT, or internal AI systems.
• Measure transformation results through concrete KPIs such as order processing time, automation rate, or employee satisfaction with the system.

Changing the mindset – The true key to breakthrough

Technology is only a tool. A new mindset and a culture of digital learning are the real foundations. When leaders are aligned, employees eager to learn, and processes streamlined, technology will naturally work. Conversely, if people aren’t ready, even billions in investment will only produce “beautiful slides.”

Conclusion
Digital transformation is not a race for technology — it’s a journey to reinvent the business, from mindset and culture to the way of working. And only when every person in the organization understands that “digital transformation is not someone else’s job, but our own,” does the journey truly begin.

Wishing you success!

Lead-UP Academy | Learn to Act – Act to  Lead

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