BASIC THEORY ON DEVELOPMENT STRATEGY
THE BASIC CONCEPTS
The concept of strategy has been borrowed from the military and adapted for use in business It is a term that comes from the Greek strategist, meaning
"generalship" In wars, strategic terms are frequently mentioned and understood as a way to gain advantage over rivals, it is more artistic than scientific
Since the mid-twentieth century, the concept of strategy has become prevalent in the economic sector In both business and military contexts, strategy serves as a crucial link between policy and tactics, effectively connecting objectives with the resources needed to achieve them.
Strategy According to B H Liddell Hart (3)
In his book "Strategy," Liddell Hart explores the evolution of warfare from ancient Greece to World War II, ultimately defining strategy as "the art of distributing and applying military means to fulfill the ends of policy." By removing the term "military," this definition becomes applicable to the business realm, highlighting the parallels between military strategy and strategic business practices.
Strategy According to George Steiner (4)
George Steiner is recognized as a pivotal figure in the evolution of strategic planning, with his book "Strategic Planning" often regarded as a definitive guide on the topic However, he notably refrains from explicitly defining strategy within the text, only addressing it in the notes at the end In these notes, Steiner explains that strategy emerged in management literature as a concept for countering a competitor's actual or anticipated actions He also highlights the lack of consensus on the definition of strategy within the business community.
Strategy According to Henry Mintzberg (5)
Henry Mintzberg, in his 1994 book, The Rise and Fall of Strategic Planning, points out that people use "strategy" in several different ways, the most common being these five:
- Strategy is a plan, a "how," a means of getting from here to there
- Strategy is a pattern in actions over time; for example, a company that regularly markets very expensive products is using a "high end" strategy
- Strategy is position; that is, it reflects decisions to offer particular products or services in particular markets
- Strategy is perspective, that is, vision and direction
- Strategy is a ploy, a specific "maneuver" intended to outwit an opponent or competitor
Strategy According to Kenneth Andrews (6)
Kenneth Andrews presents this lengthy definition of strategy in his book,
Corporate strategy encompasses the decision-making framework within a company that outlines its objectives, goals, and purposes It establishes key policies and plans to achieve these aims while defining the scope of business activities the company will engage in Additionally, corporate strategy clarifies the type of economic and human organization the company aspires to be, as well as its intended contributions—both economic and non-economic—to shareholders, employees, customers, and communities.
Strategy According to Michael Porter (7)
In a seminal 1996 Harvard Business Review article, Michael Porter emphasizes that competitive strategy revolves around "being different" by intentionally selecting a unique set of activities to create a distinct value proposition He defines strategy as the competitive position that sets a firm apart in the eyes of customers, focusing on delivering value through activities that differ from those of competitors In his earlier work, Porter describes competitive strategy as a blend of the firm's goals and the policies it employs to achieve them, highlighting that strategy encompasses both planning and positioning Notably, Porter's insights specifically address competitive strategy rather than strategy in a broader context.
Strategy can be understood as a multifaceted concept that encompasses various elements, including a plan for achieving desired outcomes, a stance or position adopted, a perspective on challenges, and a consistent pattern in decision-making and actions.
According to Assoc Prof Dr Hoang Dinh Phi, a strategy for an organization or company is a comprehensive document—whether written, printed, or electronic—that outlines the long-term mission, vision, core values, and strategic objectives typically set for a five-year period This document also details the resources to be mobilized and the solutions to be implemented to achieve the established goals.
1.1.2 The necessity of building strategy
In the early development of strategic management theory, many viewed strategy primarily as a long-term plan integral to an organization's planning system, highlighting the importance of strategic planning However, contemporary strategic management is recognized as both a science and an art that involves the planning, implementation, and evaluation of strategies Over time, the concept has evolved significantly, and the strategic management process is now seen as a continuous endeavor that necessitates the involvement of all organizational members.
The importance of strategy in business is well-documented, yet many small and medium enterprises often overlook its significance, with some failing to identify any strategic direction at all This lack of awareness regarding the critical role of strategy can hinder their growth and success It's essential to recognize that both large and small businesses require a clear strategy to thrive The effectiveness of a strategy within an organization is largely influenced by the management's understanding of its importance and their knowledge of strategic principles Consequently, a common inquiry among managers is, "Why do organizations truly need strategies?"
According to Mintzberg, understanding the role of strategy is crucial for both managers and scientists, as it serves four essential purposes for organizations and businesses Firstly, strategy sets a clear direction, helping businesses outmaneuver competitors and navigate challenging environments Secondly, it fosters focused efforts and promotes coordination among activities Thirdly, strategy plays a vital role in defining the organization itself Lastly, it helps reduce uncertainty and ensures consistency within the business framework.
A strong organizational strategy can enable a company to overcome mistakes and succeed, even if it starts from a disadvantaged position Chandler noted that, similar to warfare, a sound grand strategy allows a business to navigate through numerous tactical errors while still achieving success.
Strategy work is deemed a "serious business" (Whittington, 11) and is recognized by Barry and Elmes (12) as "the most prominent, influential, and costly stories told in organizations." This emphasis on strategic management highlights its significance in business education, particularly within MBA programs, where it is regarded as a core subject.
Numerous theories and approaches to business strategy have been developed by researchers in strategic management, focusing on critical questions regarding the achievement and maintenance of competitive advantage Central to this field of study is the inquiry into the sources of competitive advantage, as highlighted by Rumelt, Schendel, and Teece.
Table 1.1: Paradigms Strategy (Teece et al., (14))
Most academics classify strategies into three levels:
Corporate strategy - what business or businesses the firm should be in?
The corporate level strategy outlines the future direction and structure of a company, influencing its rationale and competitive landscape It determines the business areas in which the company will operate and focuses on aligning resource allocation across various related or unrelated sectors Formulating this strategy requires integrating and managing diverse businesses to achieve corporate synergy The responsibility for developing the corporate strategy lies with the top management team, which guides the organization toward realizing its vision.
Competitive or business strategy - how each business attempts to achieve its mission within its chosen area of activity
Strategy involves determining which products or services to develop and offer in specific markets, while ensuring that customer needs are effectively met and organizational objectives are achieved.
THEORETICAL TOOLS
Michael Porter's five forces framework has been a cornerstone of strategic analysis, highlighting the five key factors that influence market competitiveness and attractiveness This model assists in identifying the power dynamics within a business context, enabling organizations to assess their current competitive position and explore potential market opportunities.
Strategic analysts frequently utilize Porter’s Five Forces framework to assess the profitability potential of new products or services This tool helps evaluate the current competitive landscape and identify opportunities for organizational growth By analyzing the distribution of power within the market, businesses can pinpoint their strengths, address weaknesses, and steer clear of potential pitfalls.
The five key competitive forces identified in the model are: the threat of new entrants, the risk of substitute products, the bargaining power of buyers, the bargaining power of suppliers, and the rivalry among existing firms Companies must strategically position themselves within their industry to effectively shield against these competitive pressures, which ultimately influences their ability to gain a competitive advantage or face a disadvantage This framework, introduced by Porter in 1985, remains crucial for understanding market dynamics.
(19) also noted that the fundamental basis of being superior to competitors and achieving long-term outstanding profits is called a sustainable competitive advantage
Figure 1.3: Porter five forces’ framework (business-to-you.com 2016)
Each element of the framework has contributed to the industry and the firm’s profitability
The "Threat of New Entrants" refers to the potential for new companies to enter an industry, increasing competition and market capacity The level of this threat is influenced by the barriers to entry; industries with high entry barriers tend to pose a lower threat to established players, while those with fewer barriers face greater risks from new competitors.
The "Bargaining Power of Buyers" is a crucial force in market dynamics, reflecting how much influence customers have over a company, particularly regarding price sensitivity When customers have numerous alternatives and limited options, their bargaining power increases, enabling them to switch brands easily Conversely, buying power diminishes when purchases are made in small quantities or when products are highly differentiated from competitors With the rise of the Internet, customers are more informed and empowered, allowing them to compare prices and access various suppliers effortlessly To mitigate buyer power, companies can implement loyalty programs and focus on product differentiation.
The "Bargaining Power of Suppliers" is a crucial force that examines how much influence suppliers have over a company, particularly in terms of pricing and quality of goods or services A higher concentration of suppliers can lead to increased power, potentially diminishing an industry's profit margins Conversely, a diverse supplier base enhances a business's negotiating position Key factors that contribute to supplier power include the costs associated with switching suppliers, the strength of distribution channels, the availability of substitutes, and the uniqueness of the products or services offered.
The fourth force, "Threats of Substitution," highlights that the availability of alternative products beyond a company's offerings can lead to increased customer switching To effectively counter these alternatives, businesses must analyze not only competing brands' similar products but also any items that fulfill comparable customer needs.
The intensity of rivalry among existing competitors is a critical force in Porter’s Five Forces model, reflecting the current competition level in a market High competition arises in slowly growing industries with numerous similarly-sized competitors and low switching costs for consumers A lower concentration ratio indicates more intense competition, leading to potential advertising and price wars that can negatively impact profits Additionally, competition intensifies when exit barriers, such as long-term loans and high fixed costs, prevent companies from leaving the market despite declining profit margins.
In conclusion, Porter's Five Forces model provides strategic thinkers with a comprehensive framework to evaluate industry structure and its impact on company profitability By analyzing these forces, businesses can gauge their potential profitability relative to the industry, particularly during market entry, and safeguard their competitive position to achieve sustainable competitive advantage.
Internal Factor Evaluation (IFE) Matrix: is a strategy tool used to evaluate firm’s internal environment and to reveal its strengths as well as weaknesses
Table 1.2: The EFE Matrix (Hoang Dinh Phi 2015)
Key external Factors Weight Rating Score
External Factor Evaluation (EFE) Matrix: is a strategy tool used to examine company’s external environment and to identify the available opportunities and threats
Table 1.3: The IFE Matrix (Hoang Dinh Phi 2015)
The internal and external factor evaluation matrices effectively summarize insights from a company's environmental analyses, serving as a foundation for developing tools like SWOT and TOWS matrices Despite their simplicity, these tools excel at identifying and assessing critical factors that influence business performance.
Key External and Internal Factors
The EFE matrix is a strategic tool used to identify key external opportunities and threats impacting a company By analyzing the external environment through methods such as PEST analysis, Porter’s Five Forces, and the Competitive Profile Matrix, businesses can effectively pinpoint these critical factors.
The IFE Matrix evaluates a company's internal strengths and weaknesses by identifying key factors that distinguish it from competitors This process involves asking critical questions to uncover what the company excels at and possesses that is more valuable than its rivals, as well as pinpointing areas for improvement to enhance competitiveness.
To assess the importance of key factors in a company's success within an industry, each factor should be assigned a weight between 0.0 (low importance) and 1.0 (high importance) This weighting system ensures that factors are not treated as equally important, reflecting the reality that success is influenced by multiple elements The total of all assigned weights must equal 1.0, and it is crucial to avoid overemphasizing individual factors by assigning weights of 0.30 or higher, as industry success typically relies on a combination of factors rather than a single one Consistency in the meaning of weights across different matrices is essential for accurate analysis.
The meaning of ratings is different in each matrix
The EFE Matrix evaluates how well a company's current strategy addresses external opportunities and threats, using a rating scale from 1 to 5 A score of 5 indicates a strong response, while 1 signifies a poor response Ratings and weights for each factor are assigned subjectively, reflecting the effectiveness of the company's strategic approach.
IFE Matrix: The ratings in internal matrix refer to how strong or weak each factor is in a firm The numbers also range from 5 to 1
Weighted Scores & Total Weighted Score
The score is calculated by multiplying the weight by the rating for each key factor, with each factor receiving a score The total weighted score is the sum of all individual scores, allowing a firm to achieve the same total score ranging from 1 to 5 in both evaluations A score of 2.5 represents an average performance In external evaluations, a low total score suggests that the company's strategies are poorly designed to capitalize on opportunities and defend against threats, while in internal evaluations, a low score indicates that the company is at a disadvantage compared to its competitors.
INTERNET OF THINGS (IOT)
The "Internet of Things" (IoT) has garnered significant attention in the tech industry, promising to profoundly influence human life, work, and society in the future.
The concept of the Internet of Things (IoT) has been around for decades, but it was not until 1999 that the term "IoT" was coined by Kevin Ashton, a scientist at MIT Ashton played a pivotal role in founding the Auto-ID Center, which developed global standards for RFID technology and various other sensors, laying the groundwork for the interconnected devices we see today.
The Internet of Things (IoT) is a transformative concept that enables various objects to connect and interact through both wireless and wired networks, facilitating the development of innovative applications and services This paradigm presents significant research and development challenges in the quest to create a smart world, where the convergence of real, digital, and virtual environments enhances the intelligence of energy systems, transportation, urban areas, and more.
Klaus Schwab highlights that the Internet of Things (IoT), often referred to as the "internet of all things," serves as a crucial link between physical and digital applications in the fourth industrial revolution Essentially, IoT represents the connection between various entities—such as products, services, and locations—and individuals, facilitated by advanced connected technologies and diverse platforms.
The Internet of Things (IoT) involves the seamless interconnection of uniquely identifiable embedded computing devices within the current Internet framework It aims to enhance device, system, and service connectivity, extending beyond traditional Machine-to-Machine (M2M) communications This connectivity encompasses various domains, protocols, and applications, as illustrated in research conducted by the Cisco Internet Business Solutions Group (IBSG).
Figure 1.5: IoT viewed as a network of networks (Cisco IBSG 2011)
The Internet of Things (IoT) significantly influences various sectors, including infrastructure management, healthcare, construction, automation, and transportation In healthcare, IoT devices facilitate remote health monitoring and emergency notifications, enhancing patient care These devices range from basic monitors for blood pressure and heart rate to sophisticated equipment like pacemakers and advanced hearing aids Additionally, specialized sensors can be installed in living spaces to monitor the well-being of elderly individuals, ensuring their safety and health.
Siemens predicts that by 2020, 26 billion devices will be connected to the internet, aligning with Gartner's forecasts ABI Research estimates this figure will exceed 30 billion, while the International Data Corporation (IDC) anticipates 32 billion connected objects, generating 10% of global data Additionally, a study by MIT Technology Review forecasts around 28 billion internet-connected devices.
Figure 1.6: Billions of Internet-Connected Devices (MIT Technology
As the number of connected devices and sensors grows—whether it reaches 26, 28, 30, or even 33 billion—the volume of data generated will continue to rise significantly, necessitating robust systems for collection, analysis, and storage.
Figure 1.7: The Digital Universe in 2020 (IDC 2012)
In 2018, organizations in the Asia-Pacific region invested approximately US$291.7 billion in the Internet of Things (IoT), marking a 12.1 percent increase from US$260.1 billion in 2017, as reported by research firm IDC Notably, IDC's predictions exclude Japan from the Asia-Pacific market analysis China dominated the spending, contributing 64.2 percent, followed by Korea at 9.8 percent and India at 8.8 percent This region emerged as the global leader in IoT investment, accounting for over 40 percent of the total worldwide expenditure on IoT in 2018.
From Microsoft's perspective, the Internet of Things (IoT) represents more than just a futuristic trend; it serves as a crucial initial step toward achieving a fully digital business model Implementing an effective IoT strategy can significantly enhance business growth and success.
10 benefits of IoT as defined by Microsoft Corporation below will be used to build the business plan & strategy for new and existing organizations:
1 Start with your things (Line-of-business assets and the data they produce, your
Cloud Services, and your Business intelligence tools)
2 Get more out of your existing assets (Employees and Customers)
3 Make small changes, see a big impact
8 Build the ability to scale
10 Choose an enterprise-proven IoT partner
ANALYSIS AND DESIGN OF IOT SOFTWARE
COMPANY’S CURRENT SITUATION ANALYSIS
VIVAS, previously recognized as the IP Excellence Center of Alcatel Network System Vietnam (ANSV), is a joint venture between VNPT Group and Alcatel-Lucent Group that has been operational since 1993 With 18 years of expertise in telecommunications and information technology, VIVAS was officially established in July.
2011, since then, VIVAS has been providing diverse telecommunications and information technology solutions and services to partners and customers, participating in building a modern society, connecting to the future
Vivas is dedicated to fostering a humane workplace characterized by a corporate culture that promotes teamwork and collaboration across teams This supportive environment encourages individuals to share information and assist one another, laying the groundwork for enhanced creativity in research and technological development.
Vivas boasts a team of highly qualified and enthusiastic staff with strong foreign language skills, backed by professional management practices inherited from its partnership with the leading technology group Alcatel-Lucent This collaboration fosters the core values of the company, enabling Vivas to achieve sustainable development.
The major business areas of VIVAS include:
- Research and develop information and communication technology, telecommunications solutions, develop digital content
- Trading in information and communication technology, telecommunications services, digital content business
- Trading in leasing services for management, operation and maintenance the system
- Providing online payment services and payment by mobile devices
- Trading in advertising and mobile communication services
2.1.2 Major products of the company
A Content Delivery Network (CDN) is a system of interconnected servers distributed across various geographical locations, designed to efficiently deliver content to users with speed, reliability, and security while minimizing costs This technology enables users to automatically connect to the nearest storage server, rather than relying on the original server of the content provider, ensuring a seamless experience.
Wi-Fi Service Management Platform: Wi-fi SMP is a solution including
The solution encompasses Authentication (EAP SIM/AKA and non-EAP SIM), Billing, Fixed Ports, Location Services, User Analysis, Mobile Applications, and Mobile Core Integration, structured into three functional planes: Management Plane, Control Plane, and Data Plane Wi-Fi SMP is designed for high compatibility, enabling telecom operators and smart cities to leverage innovative business models and enhance their value propositions.
OTT Communication Platform: is an OTT platform that helps provide high quality VoIP calls (Including voice and video) and messages (Text messaging, multimedia sharing) via 3G / 4G & Wi-fi
Multimedia Streaming Platform: is the solution that allows businesses to manage, trade and distribute live TV, Video, Radio, Music, Movies content to users in a focused and best quality way
Dealer Management Solution: is a solution that connect products and services with a distribution network including general agents, agents, direct sales to manage, promote and sell products, services
SMS Marketing Solutions provide businesses with a powerful way to engage customers through text messages, displaying the brand name as the sender instead of a standard phone number This innovative solution enables organizations to effectively communicate by sending both customer care and promotional messages, enhancing customer interaction and brand visibility.
A Campaign Management System, based on a Precision Marketing solution, enables businesses and operators to gather and analyze multi-dimensional data related to customer behavior This system ensures that communication messages reach the appropriate customers at the optimal time, maximizing efficiency in marketing efforts.
Mobile Value-Added Services (VAS) encompass a range of non-standard voice call features aimed at enhancing the user experience for mobile phone users These services include popular offerings such as ring-back tones, missed call alerts, and online gaming, all designed to provide practical benefits and enrich mobile communication.
Big data analytics utilizes advanced technologies and techniques to analyze large data sets, enabling organizations to make informed business decisions Powered by specialized analytics software and high-performance computing systems, big data analytics delivers significant advantages for businesses.
Figure 2.1: Vivas turnover bar chart (Author 2019)
Figure 2.2: Vivas profit line graph (Author 2019)
From a financial accounting perspective, the company's performance has shown consistent growth over the past five years, with year-on-year increases in revenue and profitability Although there was a slight decline in 2017 compared to 2016, this drop was within an acceptable range and anticipated by senior management This foresight was validated in 2019 when the company experienced significant growth in both production and business activities.
2.1.4 Vivas IOT Technology Center and SCP Platform
In 2016, Vivas established a new department focused on IoT, Big Data, and System Integration Solutions, aiming to become a market leader in innovative IoT products and services The company is dedicated to delivering high-quality products, ensuring timely delivery, and minimizing costs for its customers.
In the first step, Vivas IOT Center collaborated with VNPT Technology to develop the Smart Connected Platform (SCP) solution (https://thingxyz.net)
SCP is an advanced technology solution designed for the Internet of Things, integrating Cloud computing, Edge/Fog computing, and other cutting-edge technologies It enables developers to seamlessly connect IoT devices and manage them on a unified platform, facilitating the development and distribution of IoT applications By streamlining this process, SCP enhances efficiency, saving both time and money Additionally, SCP caters to various vertical industries, including Smart Agriculture, Connected Transportation, Connected Health, Connected City, Connected Home, Connected Industry, and Connected Energy, among others.
Figure 2.3: SCP Highlights (Source: VNPT Technology 2018)
SCP operates on a Software as a Service (SaaS) model, enabling developers to create IoT applications within a unified platform Additionally, SCP offers customization options through Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) models, as well as an all-in-one On-Premise (OPM) package, providing customers with a comprehensive end-to-end solution to meet various needs.
SCP connects Things via any data transmission technology ranging from short-range communication such as USB, MODBUS, RS232, RS485, RFID,
Bluetooth technology, along with long-range options like FTTx and FTTH, supports various connectivity solutions including 3G and 4G For IoT applications, dedicated technologies such as Sigfox, LoRa (operating in unlicensed bands), and NB-IoT, EC-GSM, and LTE CatM1 (utilizing licensed bands) are available A wide range of options exists for devices equipped with Internet protocols supported by SCP.
Figure 2.4: Overall model of VNPT Technology's Smart Connected
Figure 2.5: SCP main characteristics (Source: VNPT Technology 2018)
Connect: SCP connects Things to the Internet by supporting all popular
Internet protocols like MQTT, HTTPS, CoAP, LWM2M, and OMA-DM facilitate the connectivity of IoT devices and gateways through various field protocols and interfaces Once these devices complete the certification process, they can seamlessly connect to the Service Control Platform (SCP).
STRATEGY ANALYSIS
2.2.1 Porter’s Five forces framework Analysis
In the IoT smart connected products sector, new companies encounter significant barriers, including high fixed costs associated with complex product design, embedded technology, and additional IT infrastructure The expanding definition of products further complicates entry for newcomers Established companies leverage these challenges to enhance their product data collection, thereby improving their offerings and after-sales support Consequently, the author concludes that the threat of new entrants for Vivas remains relatively low.
IoT smart connected products excel in performance, customization, and customer value, significantly reducing competition from traditional products and enhancing profitability and industry growth While these smart products encounter new alternative threats due to the rapid development of features and technologies, which can diminish product ownership and overall demand, the overall risk of replacement remains low Consequently, companies must continually innovate and improve their offerings to stay competitive in the evolving market.
The Bargaining Power of Suppliers
The rise of IoT products is transforming traditional supplier dynamics and shifting bargaining power As the smart and connectivity features of IoT devices gain importance, physical components are becoming commoditized and may eventually be substituted by software solutions This trend not only minimizes the need for physical customization but also reduces the reliance on numerous physical components Consequently, the significance of traditional suppliers in overall product costs is diminishing, leading to a decline in their bargaining power.
Connected smart products necessitate the involvement of new suppliers, such as those providing sensors, software, connectivity, data storage, analytics, and embedded operating systems These suppliers often possess significant bargaining power, enabling them to secure a larger portion of the product's total value, which can ultimately diminish manufacturers' profitability.
The rise of IoT smart connected products diminishes buyers' bargaining power as competition shifts focus from pricing to product differentiation By gaining insights into consumer usage, enterprises can enhance customer segmentation, tailor products, adjust pricing strategies, and offer additional value-added services These smart products foster stronger customer relationships, and the accumulation of historical usage data raises the costs for buyers considering a switch to new suppliers.
The Internet of Things (IoT) empowers companies to lessen their reliance on distribution or service partners, leading to increased profitability and a decrease in buyers' purchasing power Consequently, the author evaluates Vivas's bargaining power as relatively low.
IoT smart connected products are set to transform competition by opening up new avenues for value-based services and product differentiation Companies should focus on designing tailored products for segmented markets, allowing for enhanced personalization and differentiation While this approach may necessitate increased upfront investments in software development and product design, it also positions companies to compete on features and functionality This competitive landscape can lead to rising costs and diminished industry profits However, in Vietnam's current environment, where few enterprises are engaged in IoT, the level of rivalry among existing firms remains relatively low.
2.2.2 Summary of interview and the survey
A study was conducted involving interviews and surveys with 20 participants from Vivas, including managers and employees from the IOT Technology Center, Technical Service Center, and Business Center The questionnaire details are provided in the appendix, and the data analysis of the results is presented based on the findings from these interviews and surveys.
Question 1: Who is in charge of the IoT business strategy for defining mission, vision and core value?
According to survey responses and interviews, over 90% of participants indicated that the business strategy is defined collaboratively by the CEO, the Board of Directors, the business team, and the Technology & IT team.
Question 2: What is the area of application of IoT we should follow to get success?
Based on the survey answers and interviews, more than 50% people chose
Smart Agriculture, then the Connected Industry with 28.8% This shows that many people believe in success when applying IoT to Smart Agriculture in Vietnam
Question 3: What are the key standards, technologies and architecture models to reach your IoT and sustainable development goals?
A recent survey and interviews reveal that over 70% of respondents identify Cloud Computing, Fog Computing, Data Centers, and Big Data technologies, particularly Hadoop, as essential for the development of IoT applications This aligns with the prevailing trend in the tech industry.
Question 4: What is your most pressing reason for your business to adopt
IoT for Smart Agriculture solutions?
Survey responses and interviews indicate that the primary drivers for adopting IoT in smart agriculture solutions include advancements in technology, the expansion of IT infrastructure, and supportive government policies.
Question 5: Which are the most important technologies/developments impacting IoT applications for agriculture?
Based on the survey answers and interviews, 68.8% people chose Sensor is the most important technologies/developments impacting IoT applications for agriculture, then the wireless communication and Data Analysis with 43.8%
Question 6: What is the biggest challenge when Vivas implements IOT in smart agriculture?
A recent survey revealed that human resources pose the greatest challenge in implementing IoT in smart agriculture, with 60% of respondents highlighting this issue Additionally, 53.3% of participants identified a lack of agricultural knowledge as another significant barrier to successful IoT integration in the sector.
Question 7: What is your primary experience with building IoT solutions?
Based on the survey answers and interviews, more than 37.5% people said that they are researching IoT solutions for themselves About 25% people are researching or developing IoT solutions for company
Question 8: How do you foresee the human resources getting utilized in these challenging times for deploying IoT?
A significant challenge faced by Vivas and other companies in the IoT industry is the recruitment and training of skilled talent, as highlighted by survey responses and interviews.
Question 9: What changes in the organization are you experiencing or foresee for governance, processes and policies to support IoT?
Organizations must adapt to the evolving landscape of IoT technologies, as these innovations will significantly impact their mission, vision, core values, goals, workforce, processes, policies, structures, and technical expertise Embracing these changes is essential for successful IoT development and integration.
Question 10: In your opinion, IoT application development strategy is the correct choice of the company?
According to survey responses and interviews, almost all participants—99%—support the company's IoT application development strategy, with only one dissenting opinion This overwhelming consensus indicates strong belief in the company's chosen direction.
Table 2.1: EFE of Vivas company in IOT (Author 2019)
Key external Factors Weight Rating Score
The State has been concentrating on finalizing the policy mechanism for the development of Smart Agriculture 0.1 4 0.4
High-quality IT human resources are increasingly prioritized for investment and development 0.1 3 0.3
The shifting trend from small and medium agriculture to large-scale and focused agriculture 0.1 3 0.3
Not many domestic IT companies have “really” developed
Opportunities to cooperate, develop and outsource IOT
Software products for foreign partners 0.1 3 0.3
1 Harsh climate and climate change in Vietnam 0.1 3 0.3
3 The difficulty in developing hardware capabilities 0.1 3 0.3
Lack of awareness and understandings about IoT solutions for agriculture and their benefits 0.1 4 0.4
O.1 The government will improve the incentive policies and create favorable conditions for investment in hi-tech agricultural areas in all localities nationwide