Ebusiness and ecommerce

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<b><small>3.2.How businesses automate existing processes...3</small></b>

<b><small>3.2.1.Vinfast – A chain of automobile manufacturing plants synchronized withindustrial robots...3</small></b>

<b><small>3.2.2.Vinamilk – upgrading production with automation technology...5</small></b>

<b><small>3.3.Example of emerging business models that have allowed ICT to transform variousprocesses in business...6</small></b>

<b><small>3.3.1.SOJO Hotels: Different experience through technology...6</small></b>

<b><small>3.3.2.TP bank- Pioneering the Open Banking trend...7</small></b>

<b><small>3.4.The impact of ICT-led transformation of business processes on their competitiveadvantage...9</small></b>

<b><small>3.4.1.Vinfast 93.4.2.Vinamilk...10</small></b>

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In today’s modern society, ICT is one of the important parts of contemporary commerce. “E-businesses often benefit from network effects, especially in online marketplaces and social media platforms. The more users a platform attracts, the more valuable it becomes to both buyers and sellers.” (Mark Granovetter, 1985). E-business has become an essential aspect of modern business operations. Businesses could experience considerable benefits in efficiency, cost-effectiveness, and market reach by effectively taking

advantage of technology.

<b>1.Literature Review1.1.E-Business and ICT</b>

E-business refers to the conduct of business processes on the Internet. This involves utilising the internet and web-based technologies to transact

businesses, manage supply chain, and service customers (Kalakota &

Robinson, 2001). E-business models have enabled new ways of creating and capturing value (Timmers, 1998; Amit & Zott, 2001). It allows disintermediationby removing unnecessary intermediaries and creating direct relationships between producers and customers (Rayport & Jaworski, 2004). E-business models promote opportunities such as global reach, flexible payment options, and on-demand information access which traditional offline models lack

(Ghosh, 1998).

Information and Communication Technologies (ICT) refer broadly to

technologies that provide access to information through telecommunications. It is commonly used to refer to computer hardware and software, the internet, digital mobile technology, audiovisual systems, etc.

Business - ICT improves organisational efficiency, enables e-commerce platforms and digital transformation of supply chains. Technologies like AI andIoT are disrupting business models across sectors (Iansiti & Lakhani, 2014).

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Automation refers to the use of machines and computer systems to perform tasks that were traditionally done by humans. It involves using control systemsand information technologies to reduce the need for human work in the

production of goods and services (ILO, 2018). Automation has been advancing rapidly with technological developments in robotics, machine learning and artificial intelligence.

<b>1.3.Business process automation</b>

Business process automation (BPA) refers to the application of technology to manage and execute repetitive business tasks and processes. It aims to improve efficiency, reduce costs and free up human workers for more value-added tasks.

Intelligent process automation (IPA) - Leverages technologies like artificial intelligence, and machine learning to enable automation of more complex judgement-based tasks (Gartner, 2019).

Research highlights benefits like improved process efficiency, productivity gains, reduced errors and rework, improved compliance and data security. It frees human workers for tasks requiring skills like critical thinking, and

complex problem-solving.

<b>2.1.The meaning of “E-business involves much more than just the automation of existing processes; it also involves the use of ICT to change processes</b>

E-business involves conducting business processes using Internet and web technologies enabled by ICT like computers, internet, digital technologies.ICT provides the infrastructure and tools to transform business processes digitally for e-business models.

Automation uses machines/computers to perform tasks traditionally done by humans to improve efficiency.

Business process automation specifically refers to using technology to

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E-business goes beyond simply automating existing manual processes using technology. It leverages the capabilities of ICT tools and infrastructure to fundamentally re-engineer and optimize business processes in innovative ways. ICT allows e-business models to transform traditional value chains, create new direct customer relationships and offer opportunities offline modelslack through digital platforms. E-business utilizes ICT to disrupt and innovate business processes rather than focus only on automating existing workflows using technologies.

The statement emphasizes that e-business drives digital transformation of processes by leveraging the power of ICT, not limiting itself to automating legacy operations through technologies.

<b>2.2.How businesses automate existing processes</b>

<b>2.2.1.Vinfast – A chain of automobile manufacturing plants synchronized with industrial robots</b>

About Vinfast, the association is invariable with automobiles originating from Vietnam. Through strategic investment in ABB's industrial robotic arms, Vinfast integrates and employs Industry 4.0 technology within its

manufacturing processes. The cohesive integration of automated machinery and robotic systems, alongside human operators, facilitates remote monitoringand control. This integration serves to mitigate unwarranted disruptions,

ultimately enhancing both product quality and production efficiency.

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Figure 1: Electric Motor Workshop (Vinfast, 2023)

The car factory's capacity is 250,000 automobiles per year in phase 1, with thecapacity planned to expand to 950,000 vehicles per year in phase 2. The levelof automation here is very high, with 1,200 robots, 98% automatic body

workshop, 90% automatic engine workshop.

Car companies use ICT to dynamically adapt to market trends, regulatory changes, and consumer preferences (Teece, D. J. et al., 1997).

VinFast takes pride in being the inaugural Vietnamese automotive company tospearhead the integration of automation technology in its vehicles. VinFast's car lines are all equipped with vehicle operating systems based on smart and innovative digital technology, keeping up with global technology trends. The role of vehicle operating devices such as global positioning system, adaptive lane control system, cruise control system, multi-point collision warning and mitigation system. A new development that helps VinFast change the auto industry scenario for Vietnam is the launch of the first electric car line VF e34: applying artificial intelligence (AI) and machine learning (Deep Learning) technology. ), mirror recognition, virtual multi-language support, etc.

Figure 2: VinFast VF e34 electric car sales in April 2023

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VinFast VF e34 sales in April 2023 increased by 397% compared to March 2023 (469 vehicles). VinFast VF e34 April 2023 sales represent more than half of the whole year 2022 sales of 4,023 units sold. This demonstrates VinFast's leadership in the Vietnamese electric vehicle sector.

<b>2.2.2.Vinamilk – upgrading production with automation technology</b>

Being an early adopter of automation technology in production, Vinamilk has been actively incorporating automated systems since 2013. The

implementation involves the use of AGV (Automated Guided Vehicle) propelled robots and automated production lines. This strategic embrace of automation has contributed to the growth of production, enabling the

self-renowned Vietnamese dairy brand, Vinamilk, to extend its reach on a global scale.

Figure 3: Revenue’s Vinamilk (Vinamilk, 2021)

In this setting, robots independently manage the entire production cycle, encompassing tasks from handling raw materials and processing to the final stages of product packaging, all without human intervention. With a

comprehensive automated production process, VNM (Vietnamese Dairy Company) effectively safeguards food hygiene and safety.

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<b>2.3.Example of emerging business models that have allowed ICT to transform various processes in business</b>

<b>2.3.1.SOJO Hotels: Different experience through technology</b>

Sojo Hotels targets the generation of tourists, business travellers and

businessmen. They want to enjoy convenience on their journey to explore newlands or on long-term business trips. Sojo Hotels has welcomed millions of customers with unique and colourful experiences after three years of

operation with nine hotels and almost 2,500 rooms.

Through phone system activation, patrons bypass the conventional reception desk protocol and proceed directly to the elevator. The elevator is equipped with a FaceID identification system, facilitating seamless access to the assigned room without additional intermediaries.

Intelligence is first demonstrated in a simple experience process through mobile applications. Accordingly, guests can book rooms and open the door with a digital key; Draw curtains, send clothes, use laundry service, gym... witha few taps on the smartphone screen.

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Figure 4: Control room mode through the Sojo Hotels app (Sojo Hotels, 2023)The OCR optical character recognition feature helps customers conveniently provide personal information when booking a room with just a scan of their identification documents. The integration of IoT technology featuring automaticsensors plays a pivotal role in energy conservation by effectively managing lights, curtains, air conditioners, and televisions. This intelligent system ensures energy efficiency by automatically adjusting or turning off these devices when not in use.

With unique experiences at Sojo Hotels, it help attract many new customers who are curious not only about technology but also about local culture. Moreover, the incorporation of technology has resulted in a reduction in customer service costs and processing time. The elimination of lengthy

queues at the front desk enables customers to experience expedited service, ultimately streamlining the ordering process and reducing overall cycle time.

<b>2.3.2.TP bank- Pioneering the Open Banking trend</b>

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TPBank was established in 2008 and operates mainly in the field of providing financial products and services. Facing the changing world and the pandemic crisis, TPBank decided to implement the digital transformation strategy it pursued early on. TPBank has changed its fate - from a unit with several tens of thousands of customers and being classified as having to be restructured, to a bank that nearly reached the 8,000 billion VND profit mark last year with more than 10 million customers - thanks to a different digital transformation philosophy.

Figure 5: The rate of transaction at TP bank (TP bank, 2023)

Robotic process automation (RPA) in the banking industry is to support repetitive banking tasks, helping banks and financial institutions increase productivity. By engaging customers in real-time and taking advantage of the great benefits of robots such as working continuously 24/7.

Furthermore, operational activities at TPBank are always given priority to digitization, with the paperless target being applied at 90% to ensure faster and more secure document processing. A key feature of TPBank's digital transformation in customer service is exemplified by the introduction of Vietnam's inaugural automated transaction chain, TPBank LiveBank. This innovative system leverages biometrics, enabling customers to conduct transactions seamlessly around the clock. Through the integration of AI technology, LiveBank achieves rapid and secure identification of millions of customers within a mere 3 seconds, facilitating card issuance within 5 minutesof registration. This eliminates the necessity for customers to carry

identification documents, bank cards, or remember passwords during transactions.

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TPBank won the Better Choice Award 2023 in the Innovative Choice Awards category, a convincing demonstration of the bank's commitment to innovation and promoting digital transformation.

Figure 6: TPBank won the Better Choice Award 2023 (TP bank, 2023)

<b>2.4.The impact of ICT-led transformation of business processes on their competitive advantage</b>

The Vietnamese car manufacturer VinFast is engaging in ICT-led

transformation to gain a competitive edge in the dynamic vehicles industry. VinFast is creating good public opinion so that product and brand information can quickly reach customers. VinFast will be the first electric car company in Southeast Asia to use advanced generative AI technology. A "Vietnamese version of ChatGPT" integrated into the vehicle can provide more accurate information related to specific fields or information indigenous to Vietnam.Smart manufacturing is a subset of Industry 4.0, focusing on the intelligent, connected use of ICT in manufacturing (Schwab, K., 2017).

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<b>Enhanced production and efficiency:</b>

Smart factories: Implementing automation and robotics in production lines optimizes resource allocation, reduces waste, and increases output, enhancing cost-effectiveness and product quality.

Supply chain optimization: Real-time data visibility throughout the supply chainallows for improved logistics planning, inventory management, and

collaboration with suppliers, leading to faster delivery times and reduced costs.

<b>Differentiated customer experience:</b>

Personalised car configurations: "When sitting in a VinFast car, instead of just driving, drivers can control the car with support from technology" (VinFast, 2023). Creating a unique ownership experience and fostering brand loyalty.Connected car technology: Applying artificial intelligence to identify dangerousdriver behaviours such as drowsiness, drunkenness, smoking or using phonesin traffic, thereby providing timely warnings. (VinFast, 2023).

<b>Strategic advantages in the vehicle industry:</b>

First-mover advantage: VinFast's early adoption of ICT positions them as a leader in innovation within the Vietnamese electric car market, attracting tech-savvy customers and investors.

Cost leadership: Optimized processes and reduced waste through ICT lead to cost savings, allowing VinFast to offer competitive pricing and potentially disrupt the market.

VinFast's strategic adoption of advanced ICT capabilities to transform its core business processes helps gain competitive differentiation.

Vinamilk, a leading dairy company in Vietnam, has embraced ICT-led transformation to gain a competitive edge in the dynamic dairy product industry. It has taken advantage of ICT to change a variety of processes.Dairy companies in the industry adopt and diffuse ICT innovations,

considering factors influencing adoption rates, stages of adoption (Rogers, E. M., 2003).

<i>Smart farming: IoT sensors monitor cows' health/behaviour. Vinamilk provides</i>

customized feed/medicine using AI to improve the yields of quality milk.

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Figure 7: The farm is equipped with modern machinery (Vinamilk, 2021)

<i>Automated processing: Robotic arms and RFID track milk during processing </i>

for traceability/food safety. Computer vision checks for defects online. This ensures high productivity and product quality.

<i>Digital supply chain: Blockchain and ERP integrate upstream farmers and </i>

downstream distribution channels. Real-time inventory visibility optimizes logistics and minimizes losses.

<i>E-commerce and omnichannel presence: Strong online presence through </i>

e-commerce platforms and seamless integration with physical stores provide convenient access to products and build brand trust. Enhancing customer satisfaction and loyalty.

<i>Product differentiation: Data-driven insights enable Vinamilk to develop new </i>

and innovative dairy products tailored to specific consumer needs and preferences, setting them apart from competitors.

By continuously innovating and addressing challenges, Vinamilk can leverage its ICT-driven approach to solidify its position as a leader in the Vietnamese dairy market. They have the potential to expand their offerings, enter new markets, and collaborate with technology giants to further disrupt the industry.

<b>2.4.3.SOJO Hotels</b>

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