Bridging investment-efficiency gap in enterprise digital transformation

The ultimate gap lies between translating tech into productivity, cost cuts, and operational shifts versus simply buying software and partial digitization.

Heavy investment yet disproportionate returns

Digital transformation has become an urgent requirement for enterprises. However, a paradox has emerged: heavy corporate investments in technology have yet to yield proportional returns.

A nationwide survey conducted in 2025 by the Vietnam Association of Small and Medium Enterprises in coordination with the Ministry of Science and Technology showed that 69% of enterprises remain at the basic application level, such as email and accounting software; 16% have entered the stage of integrating ERP, CRM, and IoT systems; and only 10% of surveyed enterprises have achieved comprehensive digitization and integrated artificial intelligence into operations.

These figures indicate that the issue no longer merely concerns whether enterprises use technology. The more critical question is whether technology targets the correct operational bottlenecks.

If an enterprise purchases additional software while departments still manage data separately, processes stay manual, and workers fail to alter work methods, that investment is unlikely to generate a productivity leap. Conversely, if technology shortens order processing times, reduces inventory, forecasts demand, curbs production errors, or cuts administrative costs, the impact becomes measurable.

This reality explains why the Government approved the project on digital transformation for small and medium-sized enterprises for the 2026-2030 period. The project aims to support at least 500,000 small and medium-sized enterprises by 2030, with a minimum of 300,000 enterprises supported in applying digital products, digital technology solutions, digital platforms, and artificial intelligence. This target is coupled with requirements to improve productivity, operational efficiency, and capacity to participate deeper in value chains.

This indicates that digital transformation is viewed more substantively, measured not by the volume of software utilized, but by the changes generated within business operations.

Data and governance approaches behind the gap

Speaking at the seminar "Manufacturing Enterprise Digital Transformation: Smart Factory Model," Lam Quang Nam, Vice Chairman of the Vietnam Software and IT Services Association (VINASA), notes that digital transformation serves as an "equalizing tool," helping narrow scale gaps among enterprises.

However, enterprises must accurately identify operational bottlenecks before applying technology, avoiding diffuse investments or chasing trends disconnected from practical needs.

This marks the core boundary between "technology investment" and "digital transformation." An investment holds true meaning only when an enterprise identifies the specific problem to solve prior to selecting technology.

This marks the core boundary between "technology investment" and "digital transformation." An investment holds true meaning only when an enterprise identifies the specific problem to solve prior to selecting technology.

In manufacturing, for instance, enterprises can invest in sensor systems, real-time data, and artificial intelligence to forecast equipment failures. Yet if equipment data is fragmented, stored disparately, and unstandardized, artificial intelligence struggles to generate genuine value.

Truong Van Hai, a digital transformation expert at Luvina Software, said that many Vietnamese enterprises continue to face scattered maintenance data, outdated equipment, and disconnection between operational and management systems. Hai recommended that enterprises standardize data, upgrade sensors, train personnel, and build synchronized management systems before advancing toward more complex artificial intelligence applications.

Sharing this view, Le Quang Minh, Deputy Director of the Institute of Information Technology at Vietnam National University, Hanoi, emphasized that digital transformation is not a discrete technology project but a long-term development strategy. A lack of genuine understanding and leadership from top executives can turn this process into "fragmented pieces," resulting in software acquisition without effective utilization.

Thus, the gap between investment and efficiency cannot be bridged solely through capital injections. Often, the issue lies in how enterprises define objectives and organize implementation.

One viable approach is breaking down digital transformation into measurable problems. Enterprises can start from a stage causing high costs or operational delays, establish clear metrics before and after technology application, and then expand. This methodology helps limit large investments that fail to quantify generated value.

Particularly for small and medium-sized enterprises, chasing the latest technologies can generate additional financial pressure when data foundations and human resources are unready. Conversely, a simple solution addressing the correct bottleneck yields more tangible results than an expensive system that sees little exploitation.

The measure of digital transformation no longer lies in the number of software licenses purchased, capital invested in technology, or artificial intelligence utilization. The more critical metric is the additional value technology generates for the enterprise.

The gap between investment and efficiency narrows only when enterprises shift from a mindset of "possessing technology" to determining "what problem technology solves." Only then does digital transformation truly become an instrument to boost productivity, cut costs, and enhance competitiveness.

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