Changing Mindsets for Digital Transformation
Digital Transformation: More Than a Trend, an Inevitable Shift in the Era of Rapid Technological Advancement
Digital transformation is not just a trend but an inevitable change in the era of continuous technological progress. However, this journey involves more than merely adopting technology or building an online presence.
Teaching Tour on Indigo Dyeing by Mường Hoa Cooperative. Photo: Provided by the Cooperative
For many businesses, particularly small enterprises and household businesses, digital transformation is often narrowly understood as digitizing data, using management software, or selling products online. Yet, these are only initial steps. To achieve true success, digital transformation must be approached strategically, prioritizing business models, customer engagement, and value creation.
Digital Transformation is Not a Trade-Off
Many small businesses and household enterprises are still influenced by traditional mindsets where "selling products" is the primary priority, and technology is seen as "optional" or even a "luxury." This perspective often stems from concerns that digital transformation requires abandoning familiar processes, incurring additional costs, or alienating traditional customers accustomed to old transactional methods.
However, in a market where customer behavior is rapidly evolving, such defensive thinking can cost businesses their competitive edge. Today’s customers are no longer limited by physical spaces; they prefer convenience, multi-channel options, and often begin their shopping journey on digital platforms. This presents a significant challenge for businesses unprepared to adapt.
The shift from a defensive to a proactive mindset is critical in digital transformation. Success requires recognizing that digitization is not a trade-off but an opportunity to create new value and expand markets.
For example, Mường Hoa Cooperative in Lào Cai initially feared that digital transformation might disrupt traditional operations or be unsuitable for their industry. Later, they recognized it as an opportunity to bring local products closer to customers through digitization. They started with simple steps such as photographing products and posting them on social media with authentic and clear descriptions. These relatable images quickly garnered consumer attention, generating their first orders without any advertising costs.
This transformation extended beyond online sales. The use of management software to track revenue and monitor orders enabled Mường Hoa Cooperative to manage cash flow more effectively. Increased revenue and an expanded customer network provided opportunities to participate in trade fairs, accessing larger markets and elevating their local brand.
Similarly, Tân Xuân 269 Cooperative in Sơn La initially declined participation in digital transformation projects, believing it was incompatible with their production model. However, after just one training session and a trial post on Zalo, they achieved unexpected results: selling 1 ton of rice and 200 liters of honey. This initial success completely shifted their perception, from fearing change to proactively seizing opportunities.
These examples demonstrate that when businesses abandon defensive mindsets and embrace new methods, they not only overcome challenges but also unlock significant opportunities. This proactive mindset forms the foundation for sustainable value creation through digital transformation, driving innovation and opening new doors for growth.
Digital Transformation is Not Just About Technology
In digital transformation, technology is merely a tool; the goal is to build trust and connect with customers by understanding core values.
For instance, Tây Bắc Specialties Cooperative initially had a fan page with over 19,000 likes, but more than half were fake or irrelevant, leading to ineffective sales. Without investing in content, strategy, or sustainable customer relationships, their online channel underperformed.
After shifting their mindset and strategy, the cooperative began sharing product stories—from origin and production processes to unique values. Patience in rebuilding the fan page paid off: engagement increased significantly, revenues improved, and a transparent management system fostered long-term customer relationships.
Personalization Over a Universal Formula
Digitization is the first step in digital transformation, replacing traditional processes with digital ones. However, this alone does not make a significant impact unless the core business model evolves. Business model innovation represents a higher level, where businesses leverage technology to create new value or deliver existing value in innovative ways.
Each business has a unique digital transformation journey, with no universal formula. Enterprises must tailor their strategies to align with their core values and specific goals. The examples of Mường Hoa Cooperative and Bản Liền Cooperative highlight the importance of adjusting strategies to internal capacities and needs.
For instance, Mường Hoa started with storytelling about their products before optimizing financial management through technology. Meanwhile, Bản Liền focused on cultural tourism development, storytelling about heritage, and leveraging technology to manage accommodation services.
Flexible Mindsets to Adapt
Digital transformation is not just about having an online presence but also about how businesses respond to future changes—from economic crises to shifts in consumer behavior. Businesses with flexible mindsets and a readiness to change can adapt more easily and remain resilient in a competitive environment.
Technology is merely a means in digital transformation; the mindset is the deciding factor. When businesses recognize that technology not only supports but also serves as a foundation for innovating business models, optimizing processes, and deepening customer connections, they can create sustainable value and enhance competitiveness.
The stories of Cơm Lam Giàng Dự, Mường Hoa Cooperative, Tân Xuân 269 Cooperative, and Bản Liền Cooperative share a common thread: changing the mindset is the first and most critical step in digital transformation. This journey is one that any business, big or small, can embark upon—with proactivity, confidence, and readiness to act, starting with the smallest steps.
(Originally published in Science & Development, Issues 1324+1325 (52/2024+1/2025))