Bbe A2.1
Bbe A2.1
Bbe A2.1
I. Pestel Analysis....................................................................................................................................1
II. SWOT Analysis..............................................................................................................................8
III. TOWS Analysis............................................................................................................................11
IV. Critical evaluation & recommendations....................................................................................11
References List:.......................................................................................................................................12
I. Pestel Analysis
1. Political & Legal
The political stability rating for domestic business activity in Vietnam is high.
Vietnam's political stability index ranged between 0.26 and -0.08 from 2013 to 2020,
which is within the stable range. The range of stability for the political stability index
is -2.5 to 2.5. Vietnam is seen as a suitable market for AIONtech to compete in and
expand owing to the country's stable politics, which will foster the growth of the
economy, society, and technology, particularly the banking business, in which
AIONtech is concentrating on the development of technological innovation.
Therefore, AIONtech also benefits from Vietnam's growth and political stability.
The State is also responsible for managing the growth of information technology.
The government handles the unified administration of information technology on
behalf of the state. The Ministry of Post and Telematics is accountable before the
Government for presiding over and coordinating with appropriate ministries and
ministerial-level agencies in the execution of state administration of information
technology. Ministries and ministerial-level agencies should, within the scope of their
responsibilities and authorities, bear primary responsibility for and collaborate with
the Ministry of Post and Telematics in carrying out the government-assigned state
administration of information technology. The People's Committees of provinces and
cities governed centrally must, within the scope of their responsibilities and authority,
handle information technology in their respective locations. Government regulations
must govern the structure and execution of information technology applications in the
operations of state agencies.
2. Economic
Due to the impact of the Covid-19 epidemic, the production cost of machines
running AIONtech's software skyrocketed for a high-tech company like AIONtech.
AIONtech also incurred increased transportation costs because it does not
manufacture the hardware components that run its software, but rather partners with
third-party hardware manufacturers. As global freight costs rise, they buy more
hardware from China's GRGBanking, causing imports of hardware to cost more.
In the digital transformation process, high equipment investment costs and quality
assurance difficulties are prevalent. Digital transformation in the financial - banking
sector is seen as an inevitable trend; yet, this process needs a significant amount of
time, effort, and expense and is a worry for the whole banking sector. In addition,
there is a dearth of qualified personnel in specialist disciplines related to finance and
technology. Human capital is required to understand the emerging technologies of
Industry 4.0, such as artificial intelligence (AI), big data (Big Data), data analytics
(Data Analytics), and blockchain. (Beatty & Liao, 2013)
The need for technology on the market has altered the development of technology.
AIONtech specializes on software-related banking sector company. In addition,
owing to the effect of the Covid pandemic, AIONtech has changed its operating
technique during the outbreak from direct office work to working from home.
3. Social
Vietnam is now a nation with a youthful population, and its capacity to learn and
integrate with global development is quite strong. Therefore, the study and use of
science and technology are essential to existence. The practice of using IT, software
technology, ... as vital items (needs) is quite prevalent, particularly among young
people. This is an excellent chance for AIONtech to grow in order to fulfill society's
expanding and demanding needs.
The Covid-19 epidemic has altered individuals' paying practices. This has
bolstered the motivation for Vietnam's financial and banking sector to engage in
digital transformation, online operations, digital apps, and electronic payments. Due
to travel constraints, clients must use cashless and online payment options throughout
the period of social separation. Although travel has grown more easy in the post-
Covid-19 era, individuals have developed the habit of purchasing and performing
transactions online. Consequently, accelerated applications and technologies in the
financial - banking industry is a current trend. Digital transformation in the financial -
banking sector (Digital Banking) is the application of a digital technology platform to
all levels of industry operations, products, and services. This is the trend of the digital
age and the next objective of the whole banking business in Vietnam. However,
digital transformation is not an easy task; on the contrary, it offers several obstacles to
the whole financial and banking sector. From then, the study, appraisal, and
identification of potential and obstacles of digital transformation in the financial-
banking business in Vietnam, based on the experiences of a number of nations across
the globe, will be conducted. In the post-Covid-19 era, it is crucial and vital to provide
comprehensive advice on this topic.
4. Technology
With the fast expansion of the information technology sector, the relatively short
product life cycle necessitates AIONtech's ongoing research and development in order
to satisfy the expectations of customers with higher-quality goods. This is the reason
for the launch of new items to replace ones that no longer satisfy the needs of
customers. Currently, all important processes at AIONtech are automated to guarantee
comprehensive, precise, and accurate data. AIONtech chose in February 2006 to
spend over $2 million in its enterprise resource planning (ERP) system to
accommodate future growth. With the group's general orientation to grow toward
digital convergence, the company's technological development center focuses on
analyzing the company's development direction and identifying chances to increase
goods, services, and solutions. Customers benefit more from innovative technological
solutions. (GarimaKaneria, 2022)
The number of industrial parks in Vietnam exceeds 183. More than sixty percent
of industrial parks lack a central wastewater treatment infrastructure. Only 60 to 70
percent of urban solid waste is collected. Infrastructure for drainage, wastewater, and
waste treatment cannot meet environmental protection requirements. The majority of
wastewater is contaminated with grease, cleaning chemicals, and dyeing chemicals,
and is dumped directly into rivers and lakes without treatment. The direct release of
untreated gases into the environment. (Cordell & Thompson, 2019)
The solutions created by AIONtech are intended to enable industrial and production
zones - where a large number of workers and people are concentrated - stabilize
output.
With technologies that can track both temperature and time attendance using facial
recognition, it is simpler and more precise to supervise workers during this epidemic
season, and any anomalous instances are reported to the public. management or
protection for timely processing.
With a centralized management system - one of the most notable characteristics of the
AIONGate solution package developed by AIONtech - managers may sit in their
workshop or any other location. Any region may still get quick HR system
deployment and management signals.
2. Weaknesses
AIONtech's failure in producing software for the banking business also stems from
Vietnam's inadequate technological production capacity, since the firm concentrates
on the banking industry despite Vietnam's inadequate technological production
capability. The ability to sell AIONtech's goods depends in part on the importation of
foreign hardware. This prevents AIONtech from being proactive in the manufacture
and use of software it provides on the platforms. In addition, the testing procedure has
not fulfilled international standards, which disturbs AIONtech's proactive capacity to
introduce its software to banks.
3. Opportunity
The requirement for banks to collaborate with technology solution providers and
sales and service providers6 is digital transformation. Specifically, digital
transformation will serve as the foundation for fostering competition and luring firms
that provide technological solutions or sales enterprises that sell products and services
to collaborate with banks. To conduct transactions via e-wallets or credit cards in
order to fulfill the rising need for convenient goods for clients, while optimizing
revenues, as stated in the preceding paragraph.
AIONtech plans to temporarily shift its focus from the banking industry to the
retail industry by the end of 2022. This will be a great opportunity for AIONtech, as
Vietnam has many retail businesses but none have yet been implemented. The use of
AI technology to retail business procedures. Meanwhile, AI is AIONtech's greatest
asset. They have a lengthy history of development in AI technology and an existing
AI technology potential. (GÜREL, 2017)
4. Threats
The difficulty for AIONtech stems from the fact that banks continue to struggle
with digital transformation of banking procedures. The legal framework for digital
banking is lagging behind the rate of technological advancement. The financial and
banking sector is seen as an industry that plays a crucial role in the economy by
controlling and operating cash flow. Therefore, all active banks must adhere strictly to
the law. In fact, however, the promulgation of legal laws involves a great deal of time,
the promulgation process and processes are complex, and the implementation period
is lengthy, in contrast to the fast growth of science and technology.
SO Strategy
WO Strategy
AIONtech's aim here will be to use the chance to eliminate the flaw. AIONtech
capitalizes on the digital transformation trend of the whole banking sector to
encourage development prospects and produce bank-specific software solutions.
Combining with GRGBanking to import hardware also relieves AIONtech of
hardware-related concerns, since GRGBanking supplies the majority of the banking
industry's technological hardware. (GONTARCZYK et al., 2015)
References List:
Beatty, A. and Liao, S. (2013) “Financial accounting in the Banking Industry: A
review of the empirical literature,” SSRN Electronic Journal [Preprint]. Available at:
https://doi.org/10.2139/ssrn.2346752.
Coyne, J.C. and Downey, G. (1991) “Social Factors and psychopathology: Stress,
social support, and Coping Processes,” Annual Review of Psychology, 42(1), pp.
401–425. Available at: https://doi.org/10.1146/annurev.ps.42.020191.002153.
Feng, Y., Wang, X. and Liang, Z. (2021) “How does environmental information
disclosure affect economic development and haze pollution in Chinese cities? the
mediating role of Green Technology Innovation,” Science of The Total Environment,
775, p. 145811. Available at: https://doi.org/10.1016/j.scitotenv.2021.145811.
GarimaKaneria (2022) “Artificial Intelligence in banking industry,” Impact of
Artificial Intelligence on Organizational Transformation, pp. 327–348. Available at:
https://doi.org/10.1002/9781119710301.ch19.
Giải Pháp Chuyển đổi số ứng Dụng Trí Tuệ Nhân Tạo (2022) AIONtech.
Available at: https://aiontech.vn/ (Accessed: December 5, 2022).
Rani, S., Gupta, M. and Gupta, D. (2020) “Artificial Intelligence and personalized
banking,” Transforming Management Using Artificial Intelligence Techniques, pp.
105–128. Available at: https://doi.org/10.1201/9781003032410-8.