Digital transformation strategies are generating considerable buzz. Which elements are most critical to the achievement of Neo Floor’s transformation?
|COO Le Quang
The three main factors that directly impact success or failure in digital transformation are people, institutions, and technology. Delivering excellence in these three areas of the organisation provides an excellent foundation for the success of any such transformation.
First off, people are the most important factor determining the success of digital transformation. Each position in the enterprise, from the board of directors to each employee, needs to realise their role and responsibility in this transformation. Everyone needs to proactively access new technology and improve their qualifications and professional expertise to meet the new work and operating methods of the enterprise.
Furthermore, corporate culture is an important factor that connects each individual’s efforts. Each business member needs to connect with each other and with change. An open culture enables employees to participate, lead, and propose changes or improvements to the company’s transformation activities.
Neo Floor has carried out this task well. A youthful, dynamic, and creative corporate culture has been built since the early days of establishment. Therefore, each member has proactive awareness and adapts to creative innovations in the company’s production and business operations. In particular, digital transformation brings significant advantages to business operations as well as convenient connections in the daily work of workers.
In terms of institutions, most of the regulations and institutions existed before the digital environment. As the digital environment changes, there must be institutional change. This transformation is about changing thinking, redesigning business processes, and internal regulations; these designs always put people at the centre.
Finally, technology is an important tool for businesses to carry out digital transformation. Neo Floor has the advantage of having an advanced technological foundation. All production machinery and equipment boast modern tech that integrates with new management applications. We have also deployed an enterprise resource planning system, connecting all production, operation, and business activities to ensure synchronisation and effective and quick management.
In what ways have the deteriorating market environment, elevated interest rates, and inflation affected the change management strategies of organisations?
The current market economic situation is still difficult. Commodity trade is declining and prices are escalating, causing the business activities of enterprises in general to decline. In this context, businesses need to quickly adapt to the market, introduce policies to promote sales, improve business competitiveness, and effectively manage costs.
In the rigid core vinyl flooring manufacturing sector, when the UFLPA Act was promulgated with a policy of not using materials from the Xinjiang-Uyghur region, it led to a wave of large buyers fleeing China. The challenge for rigid core vinyl flooring manufacturers is to quickly adapt to the market, complete the supply chain, and ensure transparency of the origin of raw materials.
Supply chain management is an urgent requirement for rigid core vinyl flooring manufacturing enterprises when selling into the US market. The digitalisation of operational processes and services for customers is what can help solve the very real problem of the supply chain while still keeping costs low.
|Neo Floor is prepared to adapt to markets in order to make progress
|Neo Floor’s use of modern tech offers up sublime products
What are the most significant change management challenges associated with the digital transformation of Neo Floor?
On the people side, the main challenge is the realisation that digital transformation requires leadership in change management. It’s not a question of investing in some software, and it’s done. It means incremental and permanent changes to the way people work.
The biggest technical challenges tend to be some combination of adopting new technologies, using data science as a driver for business improvement, and problems with legacy systems. Legacy systems that do not communicate and share information and often contain corrupted data can create real roadblocks. Problems with legacy systems can slow operations down rather than speed them up.
Neo Floor has built a detailed roadmap for each activity and operation, and the digital transformation project board will closely follow the implementation progress of each department and encourage all employees to participate. It is necessary to motivate implementation and ensure the set roadmap.
Those in charge of this function will inspire other members to carry out tasks and understand the regulations and operating procedures of the enterprise. This is a decisive factor for success.
How can an internal communications strategy at Neo Floor promote and ease the process of end-user adoption?
Good communication has been a key success factor in traditional change efforts, and it is just as important in a digital transformation. In a digital context, companies must get more creative in the channels they are using to enable the new, quicker ways of working and the speedier mindset and behaviour changes that this requires.
Internal communication is a necessary element for this activity, especially since digital transformation is an activity that covers the entire enterprise. Internal communication activities start from the project launch phase and convey awareness to members throughout the process to promote the spirit of cooperation and improve the productivity of all employees.
Could you provide a concise explanation of the significance of change management in digital transformation as a means to approach global value chains?
Good governance is the foundation for a breakthrough. Neo Floor has passed the quiet period of the market, but it is also an opportunity for businesses to look deeply into corporate governance activities and plan for the next stage. The world is expecting an economic recovery in 2024, and enterprises need to quickly seize new opportunities from the market to develop and breakthrough.
Understanding this, Neo Floor has made careful preparations in all aspects, including production and business management capacity and quick adaptation to the market.