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What is it?
The Inclusive Digital Acceleration Program (IDAP) - Enhancing the Inclusive Digital Transformation Ecosystem for SMEs in Lào Cai and Sơn La focuses on agriculture and tourism. This project, funded by GREAT, is primarily implemented by KisStartup Joint Stock Company from 2024 to 2027.

The "Promoting Gender Equality through Improved Agricultural Productivity and Tourism Development in Lào Cai and Sơn La" (GREAT) project is an initiative funded by the Australian government and managed by Cowater International. Phase one of GREAT was conducted from 2017-22, and phase two (GREAT 2) will be implemented from 2022-27, with a total investment of AUD 67.4 million from the Australian government.

Why?
Digital transformation in Vietnam is rapidly advancing, driven by government initiatives and the increasing technological literacy of the population, positioning the country as a dynamic hub for innovation and digital economic development. In Lào Cai and Sơn La provinces, digital transformation has begun to take shape and develop significantly in recent years, led by public services and e-commerce. However, the ecosystem here also faces challenges, such as a lack of appropriate mindset, knowledge, and skills among micro, small, and medium enterprises (MSMEs), hindering their ability to leverage digital opportunities. Additionally, weak connections among stakeholders in the ecosystem further complicate the necessary collaboration efforts for sustainable development and innovation in these provinces.

To foster the comprehensive development of the digital transformation ecosystem in Lào Cai and Sơn La provinces, the IDAP project, implemented by KisStartup, will emphasize not only the direct benefits for SMEs but also the broader ecosystem. This includes local universities and colleges, technical service providers, human resources providers for digital transformation services, and business support organizations. By applying an inclusive ecosystem and market system approach, GREAT aims to ensure long-term and sustainable outcomes, enabling participants in the ecosystem to continue connecting and driving digital transformation in the two provinces to promote economic growth even after the project ends.

Project Genesis and Approach

From a Small-Scale Pilot Program:
In 2020, when COVID-19 reached its peak, KisStartup piloted a digital business acceleration project to help businesses survive the pandemic by gradually transitioning to digital business. We realized that all digital tools are just tools if the necessary awareness of business model changes and leadership mindset is lacking. Therefore, instead of focusing on guiding channels and platforms, we took a parallel step-by-step approach, innovating business models, supplementing human resources, and changing market perceptions in combination with digital tools. The first businesses that gradually achieved strong results in increased revenue truly encouraged us in our approach.

The project later received seed funding from Frontier Lab Incubator, allowing us to further develop the model and gain new clients like Agriterra (Netherlands). In 2020, when we met with GREAT, they shared with us the challenges in the two provinces regarding the readiness of businesses and the local population. At that time, we committed that as long as there were phones and the internet, we believed the project could be implemented. This commitment came with efforts in training and coaching, network building, and harmonizing business model innovation with digital transformation. The results exceeded expectations, with businesses not only surviving but also increasing their revenue by 3-5 times through online channels.

Towards Developing an Inclusive Digital Transformation Ecosystem:
Following the success of GREAT 1, KisStartup was selected to implement phase 2 of the project, aimed at enhancing the inclusive digital transformation ecosystem. The key concepts and scope of the project are as follows:

Digital Transformation: Digital transformation involves using data and digital technologies to fundamentally and comprehensively change all aspects of a business or organization.

Aspects of Digital Transformation: These include Digital Society, Digital Economy, and Digital Government, with the project's focus on Digital Economy.

Digital Transformation Process in Businesses: This occurs through six steps: 1. New Awareness and Mindset; 2. Strategy and Roadmap; 3. Digital Capability (human resources, infrastructure, culture); 4. Identifying Key Technologies; 5. Business Model, Operations; 6. Transforming Processes from Small to Large.

Digital Business Innovation: This is the phase where businesses go through the first five steps of digital transformation, including new awareness and mindset; strategy and roadmap development; enhancing digital capabilities; identifying key technologies; and building business and operational models mentioned above.

However, the steps do not follow a strict sequence, and there may be differences in order and speed across businesses.

Inclusive Digital Transformation Ecosystem: This refers to the interaction among stakeholders (e.g., universities, service providers, support organizations) within the national and/or local business environment to promote digital transformation activities in enterprises while aiming for gender equality, disability inclusion, and social inclusion goals.

How?

Key Interventions:

• GREAT will support Lào Cai and Sơn La provinces in enhancing the digital transformation capacity of the ecosystem, focusing on MSMEs, including those led by ethnic minority women (EMW). The intervention activities include:
• Building capacity for key stakeholders in the digital transformation ecosystem with a business-centric approach. Local universities and colleges, technical service providers, and human resources providers for digital transformation services will improve their capacity not only in digital transformation but also in integrating knowledge and skills into their operations.
• Promoting inclusive digital transformation and digital business innovation ecosystem through facilitating connections among stakeholders, including local MSMEs, universities and colleges, local technical and human resources providers, and national and international levels.
• Connecting the local and national digital transformation ecosystems by elevating local service providers to the national level and facilitating sustainable investment and business cooperation opportunities after the project ends.

Expected Outcomes:

• Local SMEs, particularly those led by women, enhance their digital transformation capacity, leading to increased revenue through online channels.
• Women entrepreneurs, including ethnic minority women in SMEs, and their members confidently apply digital transformation in production and business, thereby increasing income.
• Local universities and colleges enhance their capacity and integrate digital transformation content into their training and teaching activities, providing basic human resources and technical services related to digital transformation, including digital business innovation for local SMEs.
• Local technical and human resources service providers related to digital transformation increase in both quantity and quality and have better connections with partners inside and outside to serve SMEs.
• Local business support organizations have better connections with other stakeholders in the ecosystem, effectively utilizing resources and better serving local SMEs.

Summary:

• Sub-project Location: Sơn La Province, Vietnam
• Sub-project Location: Lào Cai Province, Vietnam
• Implementing Partner: KisStartup Joint Stock Company

Focus of Intervention:

• Intervention Sectors: Agriculture, Tourism
• Main Beneficiaries:
• Small and Micro Enterprises (SMEs)
• Local Universities and Colleges
• Local Workforce Service Providers
• Local Technical Service Providers
• National Technical Service Providers
• Support Organizations
• Lead Enterprises

In the previous session, we introduced the DAP and some of the achievements in 2021. In this part, KisStartup introduces how we did it and the lesson-learned to create positive results together.

Applying the theory of Design Thinking and combining it with Lean Startup, KisStartup designed a model of a digital acceleration program which started from the step of empathizing with customers (enterprises/cooperatives) and then identified and stated the problem(s) they were having. Then, we came up with ideas, conducted testing and provided appropriate Training, Coaching, or Mentoring support. And by empathizing with and understanding the problems and pain points of cooperatives and enterprises, KisStartup knew the whole picture of each enterprise/cooperative (their weakness and what resources are needed for external support).

 

 

To achieve the above results, at the event, KisStartup summarised the factors that made up the success of the Digital Acceleration Program after 03 batches in partnership with GREAT in 2021:

1. Business owner's mindset

• Be Open and Committed

• Willing to change with high determination

2. Direct support 

• Close cooperation with the parties

• Training, Intensive Coaching, Supporting and daily Monitoring

• Monitor and Measure change by data

3. Continuous adjustment

• Adjust the program continuously as needed

• Add new contents flexibly: Intellectual property, corporate finance

• Do the Training and Consulting

4. Interaction with leaders of enterprises/cooperatives, Project Management Units (MBs), Sponsors

• Close participation of Management Board & Sponsors, regularly updated

• Commitment and active participation of leaders & middle management
 

​In 2022, the Digital Business Accelerator Program is expected to take place under the following 04 models: 1:1 model between KisStartup and enterprises/cooperatives The sponsor fully pays for enterprises/cooperatives model Model of reciprocal combination of enterprises/cooperatives & sponsors Sponsor & KisStartup reciprocal matching model

 

In all these four models, the program is aimed at 03 personas:

(1) who are enterprises OVER 3 YEARS old

(2) who have products and are in need of innovating business models, finding innovative directions for distribution channels or wishing to take advantage of digital platforms to promote online business

(3)  who HAVE/ ARE AND WILL BE wishing to shift their business model from traditional to a combination of both traditional and online, ORGANISATIONS who are in need of BUSINESS MODEL INNOVATION and intelligently leverage and harness their available data to start diving deeper into the digital transformation and innovation story.

 

After the lessons learned in 2021, in the 2022 program, in addition to the initial goals, KisStartup will integrate lessons related to CYBERSECURITY, increase close cooperation with universities to bring quality resources to enterprises/cooperatives, further integrate lessons on impact measurement factors which help enterprises/cooperatives have a comprehensive view and balance between business story and impact creation.

 

With the hope of knowledge and experience to be shared, KisStartup wishes to accompany businesses, sponsors and supporting organizations to successfully do digital transformation and sustainably innovate for small and medium enterprises, which account for 97% of enterprises in Vietnam.
 

 
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Information about KisStartup and the Program:

KisStartup in partnership with the GREAT Project funded by the Australian government to implement the Digital Acceleration Program - supported 20 businesses and cooperatives in Lao Cai and Son La. The program included online training courses on how to use and manage an online business model, sell on e-commerce, or access capital. Besides training sessions, DAP provided 1on1 coaching sessions. The 3-month program with high pressure promoted businesses and cooperatives to speed up efficiency and see the change in sales from week to week.

The Digital Acceleration Program  - PROMOTING DIGITAL TRANSFORMATION & INNOVATION sums up the journey in 2021 KisStartup implemented the Digital Acceleration Program with the aim of sharing the lessons learned in the context of digital transformation and business model innovation.
 

RECAP EVENT: PROMOTING DIGITAL TRANSFORMATION & BUSINESS MODEL INNOVATION

The event Digital Acceleration Program - PROMOTE DIGITAL TRANSFORMATION & INNOVATION was organized by KisStartup on January 18, 2022, with the participation of:

• Ms. Majdie Hordern - First Secretary at the Australian Embassy in Vietnam
• Ms. Vu Quynh Anh - Deputy Team Leader of GREAT Project
• Mr. Dinh Xuan Huong - Co-founder of VINNO Software Company.
• Ms. Nguyen Dang Tuan Minh - CEO at KisStartup
• Ms. Vu Kim Dung - Middle Manager at VietRap
• Ms. Bui Phuong Thanh - Director of Noong Pieu Cooperative
• Ms. Sung Thi Lan - Director of Muong Hoa Cooperative
• Ms. Ha Thi Khuyen - Owner of Ha Khuyen homestay
• Mr. An Van Tuan - Director of The Tuan Agriculture and Forestry Cooperative

The event is a time for KisStartup to gather lesson-learned, difficulties, and solutions to overcome difficulties with small and medium-sized enterprises to micro-enterprises, business households, as well as cooperatives in business model innovation progress, drive sale-growth, and leverage online resources to take the smallest step in the digital transformation story.

During the event, Ms. Vu Quynh Anh - Deputy Team Leader of GREAT Project
shared:

“Through 3 seasons of implementing the DAP with KisStartup, we have seen the positive aspects and the suitability of the program with enterprises/cooperatives with the participation of ethnic minority women as follows:

• Witness many business models innovation. For example, in Bac Ha, tourism companies have been known to combine agriculture to overcome the period of COVID-19 that has halted tourism, to innovate their products to expand the online market, etc.
• Transformation to digital business is barrier-free, requiring only internet, smartphone, and commitment from participants
• Digital transformation has proved that ethnic minority women have enhanced their entrepreneurial capabilities, increased autonomy and decision-making abilities, and improved their leadership. Since then, they received much support from the family.

Besides, we appreciate the professionalism and dedication of KisStartup's team. This is an intensive program not only in terms of digital transformation but also equipping knowledge about intellectual property, human resources, and personal financial management. In the future, GREAT hopes to continue to cooperate with experienced partners, looking forward to bringing this program to many mountainous women for mutual development.``

During 2021 working with GREAT, DAP contacted and interviewed more than 60 enterprises, cooperatives, and business individuals, of which 20 cooperatives and enterprises continued to be selected to go further into intensive training and coaching programs with 03 objectives: Innovating the business model - Increasing the quantity and quality of personnel - Increasing revenue through online channels (in combination with the traditional model). The Digital Acceleration Program in 2021 took place at two levels: The Basic level (with the participation of 20 enterprises and cooperatives), The Advanced level (with the participation of 04 enterprises and cooperatives).

At the end of the program: 100% of businesses changed their business models, and 100% of businesses increased their revenue - OVER 4.3 BILLION is TOTAL REVENUE THROUGH ONLINE CHANNELs of 20 enterprises and cooperatives participating in DAP  in 10 weeks. It is estimated that each enterprise/cooperative has an increase of 300-500% in revenue compared to before participating in the program. More importantly, at the end of the DAP, 20 businesses and cooperatives are not (or) less dependent on 3rd parties but can completely develop their own strategies, and content and confidently have a stable revenue when selling on online channels. Some enterprises have advanced to internal management with software applications and expanded their global market with exportation.

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In part 2 of the article, we will share about the factors that make up the success of the Digital Acceleration Program 2021.