‘Be careful’ with tech investments, advises EY Vietnam executive

Vietnamese businesses must consider cost, security and sustainable development potential before making advanced technology investments, said Shashi Jagadiswaran, deputy general director of Technology Consulting Services at EY Vietnam Consulting JSC.

Jagadiswaran was speaking Wednesday at the International Innovative Business Forum (IIBF) 2024 held in Ho Chi Minh City. The forum focused in particular on application of real-world technology to strengthen internal resources and create breakthroughs for Vietnamese businesses.

Jagadiswaran said there were many technology options at present and these keep changing.

For example, in the retail and consumer fields, before Covid-19, direct-to-consumer sales model was mainstream, but now, this has been replaced by online sales and fast delivery. Besides, online product research and offline purchases have become emerging trends.

“Should businesses imitate and follow these trends? My answer is: “Be careful.”

If a business is "engrossed in chasing trends" without being careful, it can ignore potential risks, leading to unsatisfactory investment results and putting the business at risk of becoming outdated compared to its competitors.

Therefore, correctly choosing the right technology solutions was very important and would be key to future success, he said.

Jagadiswaran noted there were five fundamental factors that businesses should clearly identify before deciding to invest in technology.

Firstly, they should assess whether technology would help increase revenue.

Secondly, they should consider how technology can simplify operational processes, reduce costs by automating tasks and optimize resource use.

Thirdly, they should see if technology will improve information security. Businesses should assess the ability of technology to improve information security, protect confidential information and intellectual property rights, and consider the potential security threat.

Fourthly, they should see if technology will enable agile innovation. Vietnamese businesses need to consider whether technology would help them adapt quickly to market changes and encourage a culture of innovation.

Fifthly, businesses should consider if technology will promote sustainable development, he added.

“Innovation must always be accompanied by a commitment to sustainability, which is something Vietnamese businesses must pay attention to. Vietnamese businesses still have a gap compared to more developed countries in the region but possess impressive growth potential compared to other developing economies," he added.