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Successful Digital Transformation Case In Vietnam: When Coffee Going Digital, What Happened?

There are reasons why Starbucks Is Failing In Vietnam. But how did the local brand like The Coffee House managed to outperform the global coffee chain like Starbucks? The digital transformation movement has more or less contributed to the success of this coffee chain. Vietnam, one of the countries exporting billion tons of coffee annually has been contributed over 40 percent of the world’s Robusta bean production. This small country in the Southeastern region of Asia is famous for its intensely strong and sweet coffee. Although the Vietnamese iced coffee was originally brought to this country by the French during the French colonization back in 18xx, the people ingeniously created the unique flavor using a combination of French roasted coffee bean and condensed milk. Now we’re not going to talk about how stronger the robusta beans are compared to Starbucks’ Arabica beans, the coffee culture in Vietnam, the customer habits, etc, we would like to tackle the case study from the technology perspective. The Coffee House, which was founded in 2014 together with Highlands Coffee and Cộng Cà Phê are the three most popular coffeehouse chains in Vietnam. With more than 160 stores in 14 cities in Vietnam, the brand is serving more than 100,000 customers daily. In 2016, the brand decided to digitalize customers’ experience by launching The Coffee House application instead of using common food ordering apps like GrabFood, Baemin, Now, etc. More than 40 percent of the transactions are made via this platform by 310,000 active users monthly. At the beginning of 2019, the brand’s goal is scaling up the stores’ density to more than 200 stories in 16 cities. Some of the challenges it stumbled upon when scaling up are:
Technology
Software
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IT Consulting Services: How To Know When You Need One

IT consulting services act like advisory services that provide business technological information, help them assess different technology strategies, and implement the solution when needed. They are needed for software development and implementation, IT training, and maintenance. Some companies prefer having an in-house team of their own, but some choose to go with software development outsourcing companies to help them. In fact, the latter option is widely picked out by big companies like Apple, Microsoft, Slack, Skype, etc. Countries like India, China, and Ukraine has long been known for its abundant IT talent pool; however, you can also find other services like mobile app development services, custom mobile app, and web app development services, blockchain software development, DevOps consulting and cloud managed services, Odoo implementation, SAP ERP consultant services in a country like Vietnam. You’ll get more chances to collaborate with experts who can look for alternatives and add-on solutions for your business, leading you to streamline the entire process and operation. Sure, several weeks ago, we gave you some examples of successful digital transformation cases, and why you should outsource, but how do you know exactly when you actually need IT services to help you with your business’s digital transformation? Here are some signs telling you that it’s time for you to hire IT consultants: Flexible staff: One of the first signs screaming that YOU NEED TO OUTSOURCE is when you can’t afford or just simply don’t want to pay for a long-term in-house team to do the maintenance job or to support the product development occasionally. There are situations where companies only need several more staff for a small amount of time, and paying full-time salaried people to do the job and them lay them off is such a waste. Consultants can come and go easily for a short period of time and do the job for you. Problem solved! Outsider perspective: Speaking from personal experience, when we are a part of a company or community, we will normally neglect small mistakes that can be pointed out easily by an outsider. Since IT consultants have been working on multiple similar projects, they can help you identify what would work best for your company.
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3 Industries Can Benefit From Machine Learning

In recent years, Artificial Intelligence (AI) in general and Machine Learning in particular, have emerged as a proof of the fourth industrial revolution (1st - the age of mechanical production, 2nd - science and mass production, 3rd - the digital era). AI is slipping into every life’s aspect without our acknowledging: Facebook’s face recognition system, Apple’s virtual assistant, Amazon’s product suggestion system, Netflix’s film recommendation system, etc. These are just a few out of thousands of AI/Machine Learning applications. So what is Machine Learning actually? According to Wikipedia, “Machine Learning is the subfield of computer science” or AI in more specific, which is capable of self-learning based on data input. Machine learning doesn’t need to be programmed manually. Machine Learning enables systems to learn from data, recognize patterns, and make decisions with negligible human interference. Machine Learning has developed significantly which leads to another field being born: Deep Learning (we will talk about Deep Learning in another blog post). Now let’s look at some specific industry to which Machine Learning is capable to contribute: Education industry Like said, machine learning is used to identify patterns and make decisions like predicting outcomes, teachers can use it to check their students’ learning behaviors and check how much of lessons students can consume, how they are dealing with the lessons taught, and if they think it is too much knowledge to digest, etc via Learning Analytics. S(he) can switch the teaching style and adopt different teaching methods that can positively influence the learning process of students.
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Top 3 Reasons Why You Should Outsource To Vietnam

Software outsourcing is one of the greatest ways to save money. Vietnam recently has registered its name to be one of the most ideal destinations when it comes to software development. The CIO magazine mentioned Vietnam is the budget-friendly offshore IT development in Asia. When compared to India, the world’s notable outsourcing place, Vietnam can help businesses cut down cost up to 1/7 times. Despite the budget-friendly reason, Vietnam can add more value to your business due to the following reasons: Good language skills If you worry about the language and cultural barriers that will be the roadblock and choose to go with other countries whose native language is English then you might be missing out on wonderful opportunities. Wandering on streets in Vietnam, you’ll easily spot out many English centers, even in the rural areas, there are multiple English classes for people at any age. Vietnamese people can learn the language fast thanks to the similarity between their Latin alphabet and the English one. Parents are putting trillions of VND for their kids to acquire the language naturally at a very young age, office workers are taking English classes after work to improve their skills. Economic and social stability Vietnam’s economy is growing fast and steadily over a few decades. According to CEIC, the country grew an average of 7.4 percent annually in six years up to 2005. Vietnam is the second fast-growing GDP in all 48 countries of Asia. This growing rate began in the late 80s and hasn’t shown any signs of decreasing.
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Digital Transformation - Blog post Number 01: The introduction of Digital Transformation in Vietnam

Vietnam has become one promised land of digital transformation outsourcing. Via this blog post series, we would like to show you the current landscape of the digital transformation market in Vietnam. Social media, smartphones, super apps, and the digital economy have drastically transformed the habits and thinking of users, making them rely more and more on digital. In the business aspect, technological breakthroughs in the field of Data, Internet of Things (IoT), Artificial Intelligence (AI), robots, machine learning (Machine Learning) help businesses exploit data, automate jobs, and lead to unprecedented growth. The e-commerce platforms, uber-ing, live-streaming, FinTech, EduTech, etc. just five in Vietnam years ago, were a skeptical concept, now they have become an essential part of life. The digital world is changing at a dizzying speed, so businesses that want to compete and develop in a new age must understand Digital Transformation (digital transformation, abbreviated as DT) by investing drastically into Technology, Data, Platforms to improve productivity and adapt to the ever-changing needs of our users. In the past ten years, we have witnessed plenty of successful technology transformation cases from the digital pioneers such as The Gioi Di Dong, Tiki, Sendo, The Coffee House, Bibomart, Momo, Foody, Zalo, etc. The number of companies "bravely sacrificed" in the transformation journey is more than many. Because to be successful, it is not simply copying models, "burning money" to build markets, buying technology, or getting good people back.
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