Where Should Small and Medium-Sized Enterprises (SMEs) Begin Their Digital Transformation Journey?

This is a fundamental question that most small and medium-sized enterprises (SMEs) raise at the outset of their digital transformation (DX) process.
This paper presents a practical and cost-efficient roadmap that minimizes risks and aligns with the operational context of Vietnamese enterprises. The roadmap consists of the following key stages:

1. Starting from Practical Needs Rather than Technology

Enterprises should begin by identifying the specific problems they are facing, such as:

• Fragmented data and difficulty in generating comprehensive reports;
• Excessive manual processes that reduce productivity;
• Inconsistent information among departments;
• Challenges in tracking revenue, inventory, and receivables.

The objective is to address existing operational issues through appropriate technological solutions, rather than adopting technology for its own sake.

This stage is often overlooked, leading to implementation failures later on.
Enterprises should:

• Reconstruct current workflows of each department (sales, warehouse, accounting, production, etc.);
• Eliminate redundant steps and standardize data definitions (e.g., product codes, customer IDs);
• Clearly define roles and responsibilities at each stage of the process.

Standardizing processes and data enables enterprises to reduce operational errors and duplication, enhance productivity and efficiency, and ensure the accuracy and consistency of data — forming a reliable basis for reporting and decision-making.

3. Digitizing in Incremental Steps

Enterprises should avoid deploying a large-scale ERP system at the initial stage. Instead, they are encouraged to begin with one or two core operational areas, such as:

• Customer Relationship Management (CRM);
• Accounting – Sales – Inventory Management;
• Human Resources – Attendance – Payroll Management.

This incremental approach allows enterprises to mitigate risks, control initial costs, evaluate performance outcomes more effectively, and facilitate gradual adaptation among employees, thereby establishing a solid foundation for comprehensive digital transformation in subsequent phases.

4. System Integration and Expansion

Once the core systems operate effectively, enterprises may proceed to:

• Integrate their ERP with websites, sales platforms, or accounting systems;
• Develop real-time dashboards for monitoring revenue, costs, and inventory levels;
• Apply Internet of Things (IoT) technologies (particularly in manufacturing or aquaculture) and Artificial Intelligence (AI) for customer analysis and sales forecasting.

5. Building a Digital Culture and Human Resource Capacity

Successful digital transformation requires the simultaneous evolution of people and technology.
Enterprises should therefore:

• Provide training to employees on the effective use of digital tools;
• Implement internal communication programs to raise awareness of the importance of transformation;
• Appoint a Digital Transformation Leader (Digital Champion) to oversee, monitor, and coordinate the implementation process.

Conclusion

Digital transformation should commence with small, measurable, and manageable initiatives, which can later be expanded across the organization.
The transformation journey should start with people, followed by process standardization, appropriate technology selection, continuous training, and sustainability management.

Implementation Support by ENGMA

At present, ENGMA Joint Stock Company offers enterprises a free trial of the ERP Engma software, enabling them to experience a comprehensive suite of enterprise management functionalities. This represents a cost-effective and scalable solution, well-suited to the development needs of small and medium-sized enterprises seeking to advance their digital transformation initiatives.

For further information, please contact ENGMA Company.