Information Technology: Effective Competitive Tools for Businesses

According to Mr Le Van Loi, Director of the Institute of Information Technology for Business of the Vietnam Chamber of Commerce and Industry (VCCI-ITB), the competition in Vietnam’s business environment has been intensifying, urging businesses to figure out their own competitive advantages. The businesses embracing IT in management can say that they have accomplished the mission. Vietnam is among the top ten countries for internet connection in the world, and about 50,000 connections are of businesses. Vietnam’s companies are quick in catching up with the trend of using website as a tool for goods promotion and sales, operating through local network, performing electronic transactions, online data sharing.

 

According to a survey covering 1,000 medium and small businesses conducted by Department of IT Application (Ministry of Information and Communications), more than 70 percent of enterprises asked using computers and the Internet to search information, chat, e-mail, do advertising and marketing, 42 percent use the Internet to receive orders. In the corporation and state corporation sector, IT application rate was even higher when 100 percent have Internet access and 50 percent have their own private Internet line.

 

In addition to the benefit of time and staff saving, the most significant advantage of IT is to help improve and develop products - services through the automated technology. Also thanks to IT, businesses are able to develop new markets, new sales forms at a low cost. Many businesses after some time employing IT have recognised that adopting IT in management helped boost efficiency in using resources. They said that operating an online store was quite manageable, all the work involving invoice, tax reporting and payment can be done online easily. These businesses, therefore, have been able to reduce the cost of human resources while enhancing work efficiency.

 

Mr Huynh Anh Khanh, Director of Ho Chi Minh City New Technology Joint Stock Company said that investing in IT required huge capital, that’s why many companies encountered difficulties in the early stages. However, from his own experience, Mr Khanh noted that with the determination, after persistently trying out different solutions, his company had finally succeeded, growing from a small factory in District 6 with a capital of VND600 million to a large facility with private factory and a capital up to more than VND20 billion. "Our current achievements are thanks to the enormous contribution of IT," affirmed Mr Khanh.

 

Ms Doan Quynh Nhi, Creative Director of “Umbrella” Fashion Co. Ltd., said that "digitalised" activities had been promoted by her company since its first days of establishment through software sales, online tax report programme and online invoices. IT application had been helpful in saving time and resources. In addition to these tangible benefits, IT application had also brought intangible benefits that were unmeasurable, especially in creating a more active and professional lifestyle, through which it helps increase corporate brand and image.

 

Being aware of businesses’ success as a result of applying IT in administration recently, IT companies have been putting more effort in researching and introducing new and advanced software and solutions for development assistance in order to create a breakthrough in business management and operation. Enterprises will have more choices in IT solutions which are suitable for their business purposes and models in order to improve the competitiveness and sustainability in current global environment. However, experts warned that businesses using IT should decide which applications are critical to each stage of development and prepare their infrastructure accordingly. Heads of enterprises need to possess a thorough understanding of their route along with their needs in data management, this will provide a solid basis to proceed to the next step, which is learning about IT solutions and suitable providers.