Vietnam Academy Of Social Sciences

Innovation in the Digital Ageand the Role of Enterprises

20/10/2019

On October 11st, 2019, at the International Convention Center, 35 Hung Vuong, Ba Dinh District, Hanoi took place a seminar “Innovation in the Digital Age and the Role of Enterprises”.

The seminar was organized by the Vietnam Institute of Economics under the Vietnam Academy of Social Sciences (VASS) with the participation of nearly 200 representatives of enterprises, associations, commercial organizations and research agencies in Hanoi. Assoc.Prof.Dr. Bui Quang Tuan - Director of the Vietnam Institute of Economics; Assoc.Prof.Dr. Tran Dinh Thien - Former Director of the Vietnam Institute of Economics; and Prof. Ho Tu Bao - Scientific Director of John von Neumann Institute of Vietnam National University, Ho Chi Minh City, Director of Data Science Lab of Vietnam Institute for Advanced Study in Mathematics co-chaired the seminar.

Assoc.Prof.Dr. Bui Quang Tuan gave a speech at the seminar

In the opening speech at the seminar, Assoc.Prof.Dr. Bui Quang Tuan warmly welcomed the attendance of all delegates, emphasized the importance of digital data for the development of enterprises. He suggested that the Industrial Revolution 4.0 was taking place on a global scale and has a direct impact on the Vietnamese economy, in which enterprises are directly affected.If enterprises keep up with technology trends, they will grow extremely rapidly. Conversely, if “outdated” in terms of technology, enterprises will have to downsize, or even be eliminated from the market. In this context, the seminar once again affirmed the entrepreneur's role. Assoc. Prof stressed the role of enterprise leaders in the “digital age” and argued that entrepreneurs must have the vision of technology, understand the current new technology as well as the nature of it; Since then, it has been applied successfully in the culture and operating procedures. Thus, the term “information technology” is not only for people working in the IT field but also for any leader who needs to learn to apply in their company.

The presentations on issues: Innovation in a digital age and problems; Opportunities and challenges for Vietnam in developing a digital economy; A managerial perspective on innovation in the digital age; Innovation and enterprises; New business models in the digital age; The innovation challenges facing startups… Scientists have clarified the overall picture of the impact of the IR. 4.0 on the joint development of enterprises on many scales.

Prof. Ho Bao Tu presented at the seminar

According to GS. Ho Bao Tu, to meet the requirements of digital development, businesses need to use technology in data analysis and statistics based on algorithmic models to have a good “understanding” of the business situation and can make better decisions based on real events. 6 basic challenges that enterprises are facing: (1). Is the company offering the right products and services to customers?; (2). Are customers satisfied when buying products and services of the enterprise?; (3). To what degree do your customer satisfaction, and what is the most satisfying factor?; If not, what is the cause?; (4). What is customer segmentation of enterprise?; (5). What is the role of leaders in digital transformation?; (6). What is the enterprise culture in digital transformation time?Get great answers for these 6 questions, enterprises have come up with feasible solutions to satisfy the following statements:Innovating business models play an essential role in business activities of enterprises in the digital time; Business analytics (bringing data science into business activities) is the basic path and method of business model innovation; The three core components for digital transformation success are people, institutions, and technology; Digital transformation is fundamentally changing the company. Change the company’s operations with new technologies, not just using these technologies.

Discussing the development of digital economy, opportunities and challenges for Vietnam, Assoc.Prof.Dr. Tran Dinh Thien said: “To correctly identify the challenges and opportunities posed for the current development of the digital economy in Vietnam, two issues that need to be addressed: First, clarify the nature of the 4.0 era with the core axis being the digital economy; Second, precise locating Vietnam’s position at the “starting-point” (or actual situation) of the transition into the digital economy.” He also emphasized: “Besides the strengths and benefits of the digital age, enterprises need to raise awareness and prepare to deal with the more serious and unpredictable of outstanding “traditional” risks; Digital economy - systematic, highly contagious and potentially damaging technological risks.”­The main battlefield changes from “real space” to “virtual space”; nature, transmission mechanism, implementation tools, solutions to attack and prevent the rapid change of the “digital” war, enormous challenges for economic operating systems - from global to national, enterprise, individual…

Assoc.Prof.Dr. Tran Dinh Thienpresented the presentation at the seminar

According to Dr. Nguyen Thi Tue Anh (Central Institute for Economic Management), a new business model in IR 4.0 must include the following fundamental characteristics: Based on digital technology platforms; Reach a large number of customers at the same time; Diversified methods to bring value to customers; Payment and profit conversion quickly. Overall assessment for the new business model, Dr. affirmed: this is an indispensable part of the digital economy; New business models are the result of innovative applications to increase the productivity of industries and enterprises, create and increase economic efficiency base on the scale. New business methods are restructuring many economic sectors, especially services with many advantages: Increasing efficiency of resource-use; High flexibility, creating more opportunities for users; High transparency, strengthening competitiveness in the markets. However, the sharing economy also creates several challenges.Hence, it is necessary to change the thinking and approach in policy formulation and implementation (collaboration, coordination, inter-industry, inter-level, data connection…) to suit the development trend.

According to Mr. Kieu Cong Thuoc - Chairman of the Board of the 4.0 Viet Nam Industrial Development Consulting Joint Stock Company, the challenges in entrepreneurial innovation are the lack of priority policies forinnovative startups,the inconsistency of the procedures for changing the characteristics of innovative startups, many limitations in the ecosystem of innovative startups.Therefore, Vietnam needs to strongly motivate the enterprise environment associated with international economic integration, develop practical support programs to encourage the development of innovative startups, actively increase the startup ecosystem to advance startup movement and enterprise development. On the other hand, accelerate communication and propaganda to enhance the capacity of international economic integration, globalization; boosting the market development services to raise the competitiveness of each enterprise to participate in production networks and global value chains.

Panorama of the seminar

Delighted with the achieved results, the organizing committee warmly praised the exchanged opinions and also urgently synthesized the discussionsto formulate into an additional report on reasoning system, policy implications for development strategies of Vietnam as well as opening new approaches for further studies of Vietnam Institute of Economics in the coming period.

Pham Vinh Ha

 

 



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