What is it?
The Inclusive Digital Acceleration Program (IDAP) - Enhancing the Inclusive Digital Transformation Ecosystem for SMEs in Lào Cai and Sơn La focuses on agriculture and tourism. This project, funded by GREAT, is primarily implemented by KisStartup Joint Stock Company from 2024 to 2027.
The "Promoting Gender Equality through Improved Agricultural Productivity and Tourism Development in Lào Cai and Sơn La" (GREAT) project is an initiative funded by the Australian government and managed by Cowater International. Phase one of GREAT was conducted from 2017-22, and phase two (GREAT 2) will be implemented from 2022-27, with a total investment of AUD 67.4 million from the Australian government.
Why?
Digital transformation in Vietnam is rapidly advancing, driven by government initiatives and the increasing technological literacy of the population, positioning the country as a dynamic hub for innovation and digital economic development. In Lào Cai and Sơn La provinces, digital transformation has begun to take shape and develop significantly in recent years, led by public services and e-commerce. However, the ecosystem here also faces challenges, such as a lack of appropriate mindset, knowledge, and skills among micro, small, and medium enterprises (MSMEs), hindering their ability to leverage digital opportunities. Additionally, weak connections among stakeholders in the ecosystem further complicate the necessary collaboration efforts for sustainable development and innovation in these provinces.
To foster the comprehensive development of the digital transformation ecosystem in Lào Cai and Sơn La provinces, the IDAP project, implemented by KisStartup, will emphasize not only the direct benefits for SMEs but also the broader ecosystem. This includes local universities and colleges, technical service providers, human resources providers for digital transformation services, and business support organizations. By applying an inclusive ecosystem and market system approach, GREAT aims to ensure long-term and sustainable outcomes, enabling participants in the ecosystem to continue connecting and driving digital transformation in the two provinces to promote economic growth even after the project ends.
Project Genesis and Approach
From a Small-Scale Pilot Program:
In 2020, when COVID-19 reached its peak, KisStartup piloted a digital business acceleration project to help businesses survive the pandemic by gradually transitioning to digital business. We realized that all digital tools are just tools if the necessary awareness of business model changes and leadership mindset is lacking. Therefore, instead of focusing on guiding channels and platforms, we took a parallel step-by-step approach, innovating business models, supplementing human resources, and changing market perceptions in combination with digital tools. The first businesses that gradually achieved strong results in increased revenue truly encouraged us in our approach.
The project later received seed funding from Frontier Lab Incubator, allowing us to further develop the model and gain new clients like Agriterra (Netherlands). In 2020, when we met with GREAT, they shared with us the challenges in the two provinces regarding the readiness of businesses and the local population. At that time, we committed that as long as there were phones and the internet, we believed the project could be implemented. This commitment came with efforts in training and coaching, network building, and harmonizing business model innovation with digital transformation. The results exceeded expectations, with businesses not only surviving but also increasing their revenue by 3-5 times through online channels.
Towards Developing an Inclusive Digital Transformation Ecosystem:
Following the success of GREAT 1, KisStartup was selected to implement phase 2 of the project, aimed at enhancing the inclusive digital transformation ecosystem. The key concepts and scope of the project are as follows:
Digital Transformation: Digital transformation involves using data and digital technologies to fundamentally and comprehensively change all aspects of a business or organization.
Aspects of Digital Transformation: These include Digital Society, Digital Economy, and Digital Government, with the project's focus on Digital Economy.
Digital Transformation Process in Businesses: This occurs through six steps: 1. New Awareness and Mindset; 2. Strategy and Roadmap; 3. Digital Capability (human resources, infrastructure, culture); 4. Identifying Key Technologies; 5. Business Model, Operations; 6. Transforming Processes from Small to Large.
Digital Business Innovation: This is the phase where businesses go through the first five steps of digital transformation, including new awareness and mindset; strategy and roadmap development; enhancing digital capabilities; identifying key technologies; and building business and operational models mentioned above.
However, the steps do not follow a strict sequence, and there may be differences in order and speed across businesses.
Inclusive Digital Transformation Ecosystem: This refers to the interaction among stakeholders (e.g., universities, service providers, support organizations) within the national and/or local business environment to promote digital transformation activities in enterprises while aiming for gender equality, disability inclusion, and social inclusion goals.
How?
Key Interventions:
- GREAT will support Lào Cai and Sơn La provinces in enhancing the digital transformation capacity of the ecosystem, focusing on MSMEs, including those led by ethnic minority women (EMW). The intervention activities include:
- Building capacity for key stakeholders in the digital transformation ecosystem with a business-centric approach. Local universities and colleges, technical service providers, and human resources providers for digital transformation services will improve their capacity not only in digital transformation but also in integrating knowledge and skills into their operations.
- Promoting inclusive digital transformation and digital business innovation ecosystem through facilitating connections among stakeholders, including local MSMEs, universities and colleges, local technical and human resources providers, and national and international levels.
- Connecting the local and national digital transformation ecosystems by elevating local service providers to the national level and facilitating sustainable investment and business cooperation opportunities after the project ends.
Expected Outcomes:
- Local SMEs, particularly those led by women, enhance their digital transformation capacity, leading to increased revenue through online channels.
- Women entrepreneurs, including ethnic minority women in SMEs, and their members confidently apply digital transformation in production and business, thereby increasing income.
- Local universities and colleges enhance their capacity and integrate digital transformation content into their training and teaching activities, providing basic human resources and technical services related to digital transformation, including digital business innovation for local SMEs.
- Local technical and human resources service providers related to digital transformation increase in both quantity and quality and have better connections with partners inside and outside to serve SMEs.
- Local business support organizations have better connections with other stakeholders in the ecosystem, effectively utilizing resources and better serving local SMEs.
Summary:
- Sub-project Location: Sơn La Province, Vietnam
- Sub-project Location: Lào Cai Province, Vietnam
- Implementing Partner: KisStartup Joint Stock Company
Focus of Intervention:
- Intervention Sectors: Agriculture, Tourism
- Main Beneficiaries:
- Small and Micro Enterprises (SMEs)
- Local Universities and Colleges
- Local Workforce Service Providers
- Local Technical Service Providers
- National Technical Service Providers
- Support Organizations
- Lead Enterprises
