Enterprises and Digital Ecosystems

9:04:29 AM | 7/12/2023

The Fourth Industrial Revolution, also known as Industry 4.0, presents opportunities for global connectivity. Digital technology has enabled governments, businesses, and citizens to create new opportunities for economic growth, increase productivity and efficiency, and improve quality of life. Governments have focused on transitioning to digital governance to enhance operational effectiveness. Businesses use digital technology to increase competitiveness and provide better-quality goods and services to customers. As a result, citizens’ lives have become more convenient, particularly when it comes to shopping or traveling.

The effective use of digital technology by businesses is an important driving force for a country in the digital age

The effective use of digital technology by businesses is an important driving force for a country in the digital age. The World Economic Forum (WEF) estimates: “70% of new value created in the global economy over the next decade will be based on digitally enabled business models.”

In the context of deep international market integration and globalized supply chains, the success of businesses increasingly depends on external interactions, both domestically and internationally. A business strategy built on digital transformation will bring real results. Reality shows that it is essential for companies to establish digital ecosystems to improve performance and promote external interactions with suppliers, business partners, and customers. Digital ecosystems allow businesses to focus on core areas to create far greater business value than the traditional B2B (business-to-business) transaction. Digital platforms have created new markets and transformed traditional industries, often resulting in significant economic growth and job creation.

Digital ecosystems are essentially groups of interconnected information technology resources that work together as a unit. They are comprised of companies, people, data, processes, and things that are connected by the shared use of digital platforms. These ecosystems enable collaboration among stakeholders and deliver mutually beneficial outcomes for all of them. The idea is to create a collection of flexible services that can shift around and quickly be adapted to the ever-changing needs of a business.

Departing from traditional closely held business structures and rigid business processes, digital ecosystems are made possible by digital platforms, which are made possible by the ultimate platform: the Internet. Digital platforms and the advancement of technologies are influencing how businesses succeed. The flexibility and speed offered by these platforms provide the infrastructure for modular digital ecosystems, contributing to increasing productivity and determining the competitiveness of businesses and the whole economy in the process of integration. Therefore, digital ecosystems are not simply about building a digital business, but rather a connected and efficient digital society.

The key to business success, however, is not only embracing the technological advantages of a digital environment but also choosing and nurturing the right digital partnerships. Forward-thinking companies shifting from self-reliance to distributed digital ecosystems should have a strategic vision in mind when entering these digital partnerships. Looking at the big picture, businesses are faced with the challenge of determining who will influence the next generation of business services as they build their unique ecosystems.

In recent years, Vietnam has made impressive progress in digital transformation in areas such as e-government, finance, transportation, e-commerce, health and education. The 13th National Party Congress has advocated “focusing on innovation, promoting national digital transformation, developing a digital economy, and creating a digital society”. In the transformation process, it is certain that the application of digital technology in general and the development of digital ecosystems in particular play a vital role in the business community.

Firstly, investing in digital infrastructure, including the fifth generation of mobile networks (5G), broadband Internet, and data centers. Besides, it is necessary to develop consistent digital standards and cooperate with developed digital economies and leading digital companies to build a strong and sustainable digital economy.

Secondly, focusing on developing the digital economy in disruptive economic sectors such as agriculture, energy, logistics, and high technology.

Thirdly, investing in training and developing human resources in information technology; focusing on fostering young talents in information technology and the English language.

Fourthly, building a favorable legal environment to develop digital ecosystems for businesses. An effective digital ecosystem will not only bring benefits to businesses but also serve as a solid basis to create a favorable environment for the development of the country’s digital economy.

Dr. Doan Duy Khuong

Source: Vietnam Business Forum