Developing IT Strategy for Finance Company - The case of SSI = Xây dựng chiến lược công nghệ thông tin cho Công ty cổ phần chứng khoán SSI
INTRODUCTION
The urgency of the topic
By 2026, 80% of software engineering organizations will establish platform teams as internal providers of reusable services, components, and tools for application delivery
To establish a successful digital business technology platform, financial institutions must ensure their technology investments meet stakeholder needs By developing a strategic roadmap, CIOs can effectively coordinate and communicate plans for bank-specific technologies, addressing both current and future capabilities.
CIOs in financial services must revamp transaction and business processes while implementing advanced technology to drive the essential digital banking transformation that supports both current and emerging business models.
CIOs in financial services must position themselves as digital business leaders by aligning stakeholders across the organization A crucial aspect of this alignment is to avoid wasting budgets and resources on overhyped technologies that fail to support meaningful digital transformation.
According to the Gartner 2021 CEO and Senior Business Executive Survey, over 60% of financial services CEOs intended to significantly enhance their focus on digital products, digital operations, and digital customer services during 2021-2022.
The typical financial institution has a mix of:
Legacy systems that may have been developed in-house
Off-the-shelf and customized vendor solutions
As banks and finance companies transition from legacy systems to digital platforms, they are focusing on key performance indicators such as operating profits, the percentage of customers actively using online and mobile tools, the rate of self-service customer service interactions, and the revenue generated by digital business ecosystems to measure their success.
Ninety percent of CEOs in the financial services industry intend to boost investments in digital capabilities focused on foundational technology to enhance flexibility and drive transformation They rely on CIOs to prioritize key initiatives in digitalization, efficiency, cybersecurity, and data analytics However, there is a noticeable decline in the recognition of the significance of people and culture in reaching the objectives of financial institutions.
By 2024, 70% of work performed by formal IT organizations will adopt a product-centric delivery model Over the past 22 years, the absence of a clear strategy has left SSI reactive to external changes and lacking the necessary resources for project development This ongoing situation significantly impacts SSI's growth and future planning.
Figure 1.1: The urgency of the topic
In light of the practical requirements for SSI, global technology trends, and management expectations, the author has selected the topic "Building an Information Technology Strategy for Financial Companies: The Case at SSI Securities Corporation" for their graduation thesis.
Overview of research situation
The 2022 Board of Directors Survey highlights key organizational priorities from the board's viewpoint in the post-pandemic landscape, revealing new focus areas that executive leaders must comprehend and develop strategic execution plans to tackle effectively.
The 2022 Board of Directors survey offers valuable insights for executive leaders regarding board priorities and perspectives as businesses recover from the pandemic The data presented highlights three crucial questions that will increasingly shape investment strategies for enterprises moving forward.
How will boards address the risk from economic and political volatility and a multipolar world?
How do boards view digital business acceleration through 2022?
How are board strategy and investment approaches impacted by the societal issues that took center stage during the pandemic?
What changes should enterprises make to their strategy processes to deal with a rapidly changing digital world, and how can I, as a CIO, play a leading role in making these changes?
Gartner's 2022 View from the Board of Directors Survey explores how Boards of Directors (BoDs) are navigating risks associated with economic and political volatility in a multipolar world The study highlights BoDs' intentions to transform digital acceleration into sustained digital momentum Additionally, it examines how significant societal issues that emerged during the pandemic are influencing BoDs' strategic decisions and investment strategies.
The survey was conducted online from May through June 2021 among 273 respondents from the U.S., Europe and Asia/Pacific Companies were screened to be midsize, large or global enterprises
Participants in the study were required to hold a position as a board director or be a member of a corporate board of directors In cases where respondents served on multiple boards, they provided responses based on their largest company, determined by annual revenue.
Research objectives
Building an overall IT strategy at SSI by 2025
Figure 1.3.1: Three level of strategy
- Research the theory and systematize the theory of building IT strategy such as strategic management, technology strategy, SWOT model
To develop effective IT strategies for SSI, it is essential to identify and propose appropriate research methods and solutions A thorough analysis and assessment of SSI's current IT status will provide valuable insights Additionally, evaluating the strategic foundations will help in understanding the alignment between IT initiatives and business objectives Finally, analyzing and summarizing the impact of IT activities on SSI's overall business operations will reveal how technology drives success and growth within the organization.
The positive and negative aspects of IT activities to SSI's business development strategy
- Proposing and selecting an overall IT strategy at SSI until 2025 and a roadmap for strategy implementation and implementation.
Research subjects
Traditional strategy methods are inadequate for today's fast-paced environment To address this, leading companies are embracing adaptive strategy approaches that allow them to swiftly seize the right opportunities Chief Information Officers (CIOs) are instrumental in introducing, tailoring, and executing this adaptive strategy throughout their organizations.
To effectively navigate the rapidly evolving digital landscape, enterprises must adapt their strategy processes by embracing agility, fostering innovation, and prioritizing data-driven decision-making As a Chief Information Officer (CIO), I can lead these changes by championing digital transformation initiatives, promoting a culture of collaboration, and leveraging emerging technologies to enhance operational efficiency and responsiveness.
In today's digital landscape, enterprises encounter rapid technological, cultural, and market changes that present both new opportunities and challenges This environment is characterized by increased interconnectivity and ongoing uncertainty, making it essential for businesses to adapt swiftly to the evolving dynamics.
In today's rapidly changing digital landscape, adaptability is crucial for success Organizations that can quickly identify new opportunities and respond faster than their competitors are more likely to thrive Embracing change and agility is essential for enterprises aiming to excel in a dynamic environment.
To thrive as an adaptive enterprise in today's fast-paced digital landscape, a robust strategy is essential Traditional strategic methods fall short in addressing the challenges of rapid change and uncertainty Therefore, the integration of information and technology (I&T) into the business strategy is crucial Success hinges on adopting a flexible approach to the creation, review, and updating of that strategy.
Object and scope of the study
- Research object of the thesis: Building an IT strategy at SSI company until 2025
This research thesis examines the IT operations of SSI Company from 2018 to 2021, analyzing current trends and technological solutions It aims to develop a comprehensive IT strategy that aligns with SSI's production and business objectives for the upcoming three years, 2023 to 2025.
Research method
Primary data was collected using a quantitative method during the research phase, involving technical interviews with employees at SSI Company A detailed questionnaire was developed based on a five-level assessment scale, ensuring comprehensive insights into employee experiences and perspectives.
The survey employs a random probability sampling method, allowing for statistically reliable results that provide a comprehensive overview of employee retention at SSI This analysis will help identify potential solutions to improve retention strategies.
Primary data is mainly collected through two methods: face-to-face interviews with Chief Information Official and IT Managers
To evaluate employee awareness and future IT needs, we will distribute questionnaires to assess the current IT status within the organization This survey will encompass the entire IT Department, focusing on human resources as a crucial component of SSI's IT strategy.
The interviewing method involves engaging with CIOs and leadership representatives from SSI to gather insights and expectations regarding the necessity for an IT strategy that aligns with production and business requirements This strategy aims to support SSI's overarching business orientation and objectives through 2025.
The dissertation utilizes secondary data sourced from internal and project documents, business strategy reports, and global financial service trends from Gartner and PwC It analyzes theoretical frameworks alongside actual data from status reports, internal regulations, and policies of SSI Additional data sources include previous study syntheses, textbooks on technology strategy and management, as well as various publications such as books, newspapers, magazines, and online resources.
Expected thesis structure
In addition to the introduction, conclusions and references, the thesis consists of 5 chapters as follows:
Chapter 4: information technology strategy and SSI strategic analysis
Chapter 5: Proposal and choosing it strategies for SSI company
LITERATURE REVIEW
Literature review
Information technology (IT) is transforming the economic, cultural, and social landscapes globally, including in Vietnam Its widespread application across various sectors, including businesses and organizations, fosters rapid growth and facilitates economic and social restructuring Developing nations, even those facing poverty, have made significant progress in socio-economic development through effective IT strategies, as evidenced by the advancements seen in countries like Korea, India, and Vietnam in recent years.
The rapid advancement of information technology (IT) empowers businesses to leverage technological innovations, enhancing product and service quality while boosting competitiveness However, failure to innovate can result in enterprises falling behind and losing their competitive edge Consequently, IT leaders, such as Chief Information Officers (CIOs), face daily challenges in optimizing IT resource management, investments, and costs They must ensure that IT effectively supports business objectives, including operational activities, management decision-making, strategic development for competitive advantage, and maximizing investment returns.
Research on the development and implementation of IT strategies in Vietnam has led to numerous studies focused on strategy formulation and the deployment of IT applications.
In his 2018 master's thesis, "Building an IT Strategy at PetroVietnam Exploration Production Corporation until 2020," Nguyen Manh Hung systematically explores the theoretical foundations of IT strategy development, including strategic management and the SWOT model The research identifies effective methods and solutions for formulating an IT strategy while assessing the current IT landscape at PVEP It analyzes how IT activities influence PVEP's production and business operations, highlighting both the positive and negative impacts on the company's development strategy Ultimately, the study proposes a comprehensive IT strategy for PVEP through 2020, along with a detailed implementation roadmap.
In her 2018 master's thesis at Hanoi University of Science and Technology, Trinh Minh Ha outlines a comprehensive business strategy for Hoang Mai Power Company aimed at 2025 The study evaluates the company's historical performance and incorporates insights from industry experts to create a SWOT matrix and a quantifiable strategic planning matrix (QSPM) The research identifies key strategies for business development, including investing in modern technology to reduce power loss, forming strategic partnerships with equipment suppliers, pursuing a concentric diversification strategy, and focusing on human resource development.
The Electricity Company's strategic plan for 2025 aims to enhance the operational efficiency of Hoang Mai Power Company With a mission to improve customer service, generate profit, and meet corporate objectives, Hoang Mai Power Company is committed to leveraging all available resources to maximize effectiveness in its operations.
The project "Research, Application, and Development of Information and Communication Technology," designated as code KC.01/11-15 under Decision No 3053/QD-BKHCN dated September 30, 2011, aims to develop strategies and research solutions tailored to Vietnam's needs for smart traffic systems, digital television, and various ICT applications This nationwide initiative focuses on creating innovative and advanced ICT products and services, emphasizing high levels of information safety and security Key areas of research include recognition of writing, images, sounds, and gestures, particularly for the Vietnamese language, as well as distributed and high-performance computing, cloud computing, intelligent traffic systems, global positioning systems integrated with geographic information systems, radio frequency identification, and next-generation web technologies.
The term "4th Industrial Revolution" or Industry 4.0 gained significant attention in global media during 2016 and 2017 In Vietnam, the Ministry of Information and Communications began exploring this trend as early as 2016, collaborating with major technology firms like Microsoft, Cisco, and IBM They conducted numerous seminars to evaluate the current landscape, identifying opportunities and challenges for various professions and sectors in the context of Industry 4.0, emphasizing the critical role of IT applications in enhancing production, business operations, and the management of organizations and government agencies.
Hoang Van Hai's "Textbook of Strategic Management" (2013), published by Hanoi National University Publishing House, explores various aspects of strategic management while emphasizing a harmonious integration of Eastern and Western strategic thinking The textbook not only covers Western strategic management techniques but also incorporates Eastern philosophies and relevant Vietnamese contexts.
- Hoang Dinh Phi (2012), Technology Management Textbook: Hanoi National University Publishing House The course covers many issues related to technology, technology management, business administration, business development and economic development
- Truong Vu Bang Giang (2013), Textbook of International Technology Transfer The document has detailed concepts, tools and techniques on technology transfer activities
The Vietnam Information and Communication Technology White Paper, published by the Ministry of Information and Communication in 2014, provides a comprehensive overview of the country's IT landscape as of 2013 It includes essential insights into the management and direction of IT agencies, the application of IT within state agencies, the development of the IT industry, and aspects of information security and internet telecommunications.
There is currently a lack of research focused on developing IT strategies within business management, particularly for SSI Company This highlights the need to select a thesis research topic that will provide SSI with a clear IT orientation for the future By establishing a foundation for IT resource allocation, SSI can enhance its production and business activities, fostering trust among leaders, employees, and partners.
Theoretical foundations of business strategy and information
Currently, due to the different approaches of researchers and consultants, there are many different concepts of strategy
Alfred Chandler from Harvard Council defines strategy as the identification of an organization's core long-term goals, coupled with the execution of a detailed action plan and the allocation of essential resources to meet those objectives.
Or according to researcher William F Glueck, "Strategy is a unified, comprehensive and coordinated plan designed to ensure that the fundamental
According to Assoc.Prof.Dr Hoang Van Hai, University of Economics - VNU,
"Strategy is a series of decisions aimed at orienting development and creating qualitative changes within an enterprise or organization"
A strategy is defined as a comprehensive action plan aimed at achieving specific objectives, encompassing a blend of long-term goals and the methods required to reach them.
2.2.1.2 The role of business strategy
A well-defined business strategy enables organizations to identify and leverage opportunities and advantages, facilitating the development of effective strategies and policies to achieve their objectives Furthermore, it equips managers with the ability to anticipate potential risks, both in the present and for the future.
By leveraging its potential, businesses can proactively navigate uncertain situations A well-defined business strategy enables managers to optimize the use of existing resources and allocate them effectively Furthermore, it ensures that all organizational functions are coordinated to achieve common goals efficiently.
2.2.2.1 The concept of strategic management
Strategic management encompasses both the science and art of formulating strategies to establish business direction and objectives It involves the deployment and execution of short-term and long-term plans based on available resources, enabling organizations to reach their long-term goals effectively.
Strategic management, as defined by Assoc Dr Hoang Van Hai in the strategic management textbook (National University Publishing House, Hanoi, 2010), encompasses a series of decisions and actions that involve the planning, implementation, and evaluation of strategies aimed at ensuring the long-term success of an organization.
2.2.2.2 The role of strategic management in business
- Helping businesses and organizations keep the direction;
- Develop the trust and will of everyone in the organization;
- Reduce risks and improve the ability to identify and prevent unwanted arisings;
- Control and minimize resistance to changes when implementing strategy;
Thus, strategic management is a set of decisions and actions to bring sustainable and long-term success to a business or organization
The term "technology" is widely used, yet its definition remains varied and unstandardized due to the vast array of available technologies This diversity leads organizations and individuals to adopt specific technologies tailored to their unique conditions and circumstances, resulting in differing interpretations and generalizations of what technology encompasses.
International organizations focused on Science and Technology are striving to establish a comprehensive definition of technology that harmonizes differing perspectives and promotes the development and integration of countries both regionally and globally This definition encompasses four key aspects of technology.
+ The aspect of "technology is a transformer";
+ The aspect of "technology as a tool";
+ The aspect of "technology is knowledge";
+ The aspect of "technology contained in its embodiment"
According to the Economic and Social Commission for Asia and the Pacific (ESCAP), technology is defined as the systematic knowledge encompassing the processes and techniques utilized for processing materials and information This definition encompasses the knowledge, equipment, methods, and systems involved in the production of goods and the delivery of services.
According to ESCAP, technology encompasses not only material production but also extends to various social activities Emerging fields such as information technology, banking technology, tourism technology, office technology, and education technology are becoming increasingly prevalent.
Technology includes: tools, machinery (Tools, Machines) + Knowledge, knowledge (Knowledges) + Skills (Skills) + Methodology (Methodology) - according to the Management of Technology document of Dr Nguyen Dang Minh
2.2.3.2 Technology strategy and Information technology strategy
Technology strategy involves creating a comprehensive roadmap for the application, management, and development of technology to reach specific long-term goals It encompasses the advancement and utilization of scientific achievements across various fields to formulate and execute plans aimed at achieving these objectives.
An effective IT strategy involves researching and applying scientific advancements in information technology while analyzing user trends and needs It focuses on creating a comprehensive framework that aligns IT solutions with the business objectives and production strategies of organizations By developing and implementing these IT strategies, businesses can achieve their long-term goals and enhance their overall operational efficiency.
2.2.4.1 Perspectives on the technology strategy of the enterprise
In 1978, researchers Maidique and Patch introduced the foundational concept of technology strategy, which encompasses the decisions and plans a company employs to address the threats and opportunities present in its operating environment.
Two researchers Burgelman and Rosenblo argue that technology strategy includes company decisions about technology selection, technology capacity, and funding for technology development
- Although there are differences, the two views mentioned above all imply that: Technology strategy is a long-term plan, it guides enterprises to allocate resources for technology and use technology
- Technology strategy covers many technology-related fields
- Implement technology into your product-market strategy to help you gain a technology-based competitive advantage
- Use technology more widely in different activities in the value chain of enterprises
- Allocating resources to different areas of technology
- Design organizational structures for the department responsible for technology and apply management techniques to manage technology
In the research book on technology strategy, volume 13 (Technology and Innovation management), two authors Steven W Floyd and Carola Wolf argue that technology strategies are divided into 07 types: a Leading Strategy
With this strategy, businesses will be the pioneers of new technologies Therefore, it is applicable to the following types of businesses:
Taking the lead in innovation presents businesses with various risks; however, the potential rewards can be substantial A prime example is Apple's development of the iPhone, which has maintained its dominance in the smartphone market since 2007 This highlights the effectiveness of a challenge strategy, also known as a follow-up strategy, in achieving long-term success.
This strategy is often applied to businesses:
- Be the second, third to enter the market
- Product, process is improved based on the first version
To achieve success, businesses must cultivate robust technological capabilities, enabling them to compete with industry leaders The primary objective is to disrupt or closely approach the market dominance of top enterprises A notable example is Samsung, which has launched smartphone and tablet models that directly rival Apple and other tech giants, significantly increasing its market share in recent years Additionally, employing a low-cost or mimicking strategy can further enhance competitiveness in the technology sector.
Process and tasks of strategic information technology management
The IT strategic management process includes the following basic steps:
Step 1: Assessment of competitiveness, assessment of technologies, IT solutions, forecasting, SWOT analysis, IT strategic planning (made by IT Department, CIOs or CEOs)
Step 2: Develop and approve annual information technology plans (made by IT Department, CIOs, CEOs)
Step 3: Decide implementation resources, methods, costs, time, policies, rewards (done by CEOs, CIOs, CFOs )
Step 4: Check, control, support implementation teams (performed by CEOs, CIOs or employees authorized by CEO)
Step 5: Evaluation of performance results, rewards, recommendations for correction, changes in each specific period (done by CEOs, CIOs, CFOs and IT Departments)
2.3.2 Basic tasks of IT strategic management
The task of IT strategic management has the following basic steps and should be maintained continuously as follows:
- Always learn and research about IT development trends in the world and in the country
To optimize your business's information technology capabilities, it is essential to evaluate and analyze potential IT solutions that require investment or development This involves monitoring and assessing current technologies, as well as hiring consultants to evaluate your firm's IT capacity Additionally, collaborating with technology manufacturers can help determine how well their offerings align with your business requirements.
- Propose new IT solutions and strategies or adjust existing IT strategies to match and adapt to the overall business strategy of the enterprise
- Proposing specific plans for each year to submit to the Board of Directors or the Board of Directors for approval
- Organize and implement approved plans
Regular monitoring and evaluation of the technology strategy are essential for its success Timely recommendations regarding rewards and discipline can enhance implementation, while suggesting necessary adjustments will refine the information technology strategy for future iterations.
Tools for analyzing, evaluating and planning information technology
Table 2.1: Strategy analysis based on the SWOT model
Strategies based on the advantages of the business to avoid the threats of market
Strategies based on business advantages to take advantage of market opportunities school
Strategy based on the ability to overcome or minimize the weaknesses of the business to avoid the market risk
Strategies based on the company's ability to overcome weaknesses industry to take advantage of market opportunities
The SWOT analysis model is a very useful tool for understanding and decision making in any situation for any business organization Short for 4 terms
SWOT analysis is a strategic tool that evaluates a company's current position by identifying its Strengths, Weaknesses, Opportunities, and Threats This framework aids in assessing the direction of a business project and informs decision-making processes for future growth.
SWOT is suitable for teamwork and analysis, used in business planning, strategy formulation, competitor assessment, marketing, product and service development
SWOT analysis is a strategic tool that evaluates a company's internal strengths and weaknesses alongside external opportunities and threats, providing insights into its competitiveness Often paired with PEST analysis, which examines political, economic, social, and technological factors, SWOT helps businesses assess their market position Developed in the 1960s and 70s at Stanford Research Institute to address planning failures among major corporations, the SWOT model was pioneered by a team that included Marion Dosher, Dr Otis Benepe, Albert Humphrey, Robert Stewart, and Birger Lie This structured evaluation of data aids in decision-making and enhances understanding of various business dynamics.
In 1949, the Du Pont company introduced the title of corporate planning manager, which became prevalent among the 500 largest companies in the United States by 1960, and subsequently spread to Great Britain However, criticism arose regarding the effectiveness of long-term corporate planning, with many deeming it an expensive and inefficient investment Ultimately, the key challenge lies in aligning the management team to develop a realistic and actionable plan.
In 1960, Robert F Stewart and his research team at SRI in Menlo Park, California, embarked on a comprehensive 9-year study to enhance management practices They conducted interviews with 1,100 companies and surveyed 5,000 management employees using a detailed questionnaire of 250 items The findings revealed that chief executive officers (CEOs) should lead the planning team, with functional department heads reporting directly to them This framework was further refined by Dr Otis Benepe, who introduced the Chain of Logic, forming the foundation of the newly designed management system.
- Monitor and repeat steps 1, 2 and 3 (monitor and repeat steps 1, 2 and 3)
The research team initiates their analysis by evaluating the strengths, weaknesses, opportunities, and threats (SWOT) of current and future activities The model, originally termed SOFT, identifies what is satisfactory as present strengths and future opportunities, while poor performance signifies present faults and future threats Introduced to Urick and Orr in 1964 in Zurich, the model evolved into SWOT, with the 'F' replaced by 'W' for weaknesses The first application of this framework was tested in 1966 at Erie Technological Corp, and by 1973, it was successfully implemented at J W French Ltd., leading to its widespread adoption.
In 2004, the SWOT analysis was finalized, showcasing its ability to articulate and unify organizational goals without relying on costly consultants This subjective assessment organizes data in a clear, logical format, facilitating understanding, discussion, and decision-making across various processes By using SWOT templates, individuals can provoke thoughtful insights rather than defaulting to instinctive responses The SWOT analysis is structured as a 2-row, 2-column matrix, consisting of four key components: Strengths, Weaknesses, Opportunities, and Threats It is essential to define the specific topic of analysis, as SWOT evaluates the prospects of particular issues or subjects effectively.
- Choosing a strategy (entering a new market or launching a new product ),
- Opportunity for merger or acquisition,
Outsourcing or outsourcing a service, activity or resource,
- Moreover, SWOT can be applied to analyze the situation of competitors
A comprehensive understanding of SWOT analysis is essential for effective evaluation and interpretation of its results The SWOT model presents four fundamental strategies: (i) SO (Strengths - Opportunities) focuses on leveraging the company's strengths to capitalize on market opportunities; (ii) WO (Weaknesses - Opportunities) emphasizes overcoming weaknesses to seize potential market advantages; (iii) ST (Strengths - Threats) utilizes the company's strengths to mitigate market threats; and (iv) WT (Weaknesses - Threats) aims to address and minimize weaknesses to evade potential threats in the market.
RESEARCH METHODOLOGY
Research process
The research process is shown in the following steps:
Step 1: Determine the research objective Step 2: Build a theoretical basis Step 3: Build a research model
- Primary data: building surveys, interviews
- Secondary data: status reports, documents from the internet, books, magazines
Step 4: Data processing and analysis
The detailed description of the research process is as follows:
The research process at SSI Company focuses on IT issues, synthesizing information related to production, business activities, human resources, and organizational structure After identifying research objectives, the next step involves determining specific goals through research models, with an emphasis on analyzing the current status and experiences within the system operation management department This includes evaluating SSI's IT infrastructure and applications, as well as processing collected data to provide a thorough assessment of SSI's IT capabilities for the upcoming period.
In 2021, it is crucial to assess the current state of SSI's IT and its support for production and business activities, while evaluating its impact on overall operations To enhance credibility and competitiveness in the oil and gas market, it is essential to identify existing limitations and explore emerging IT trends that align with SSI's strategic development goals By doing so, we can propose effective solutions for crafting IT strategies that integrate seamlessly with SSI's overarching business objectives.
Data collection methods
The article's theoretical framework is built upon a thorough analysis of actual data derived from status reports, internal documents, and SSI regulations and policies, serving as a crucial resource for research activities.
Other sources of data collection are:
- Synthesize the results of previous studies;
- Books, newspapers, magazines, sources from the Internet
Primary data: mainly focus on collecting primary data through two methods: face-to-face interviews and survey forms
To evaluate the current IT status and future needs at SSI, a survey method will be employed, utilizing questionnaires to gauge employee awareness and interest This comprehensive assessment will focus on the entire IT Department, recognizing human resources as a fundamental component of SSI's IT strategy.
The interviewing method involved discussions with the CIO and labor representative of SSI to gather insights and expectations from employees and functional departments regarding the need for an IT strategy This strategy aims to align with SSI's overall business orientation and objectives for 2025, ensuring it effectively supports production and business requirements.
Analyzing and synthesizing data from reports on the current status, costs, and investments over the years provides insights into SSI's IT landscape, serving as a foundation for enhancing IT quality.
Statistical method: through tables and data to draw conclusions and trends for the construction of SSI's IT strategy
Through the detailed statistics, analysis and evaluation in Chapter 3, the author will have comments and synthesis from which to propose strategic solutions and strategic goals for IT in Chapter 4.
INFORMATION TECHNOLOGY STRATEGY AND SSI
Introduction about SSI company
Founded in December 1999, SSI Securities Corporation (SSI – HOSE) is Vietnam's first privately licensed securities firm and initially the smallest in the market With over 21 years of experience, SSI has emerged as a leading financial institution, boasting the fastest growth rate and a remarkable charter capital increase of more than 1640 times The company is recognized for its strong financial capabilities, high standards of corporate governance, and professional workforce, offering clients a comprehensive range of financial products and services that maximize shareholder value SSI operates an extensive network of branches and transaction offices in major cities across Vietnam, including Hanoi, Ho Chi Minh City, Hai Phong, and Nha Trang.
4.1.1 The process of formation and development
30/12/1999: SSI was founded with its head office located in Ho Chi Minh City, operated in two major segments: Brokerage Services & Investment Advisory Initial charter capital was VND 6 billion
11/2006: Successfully implement the first convertible bond issuance on the
Vietnam Stock Exchange for SSI itself, pioneering a new form of issuance for public and listed companies, in addition to ordinary share issuance
07/2001: Charter capital was raised to VND 20 billion The company expanded core business functions to 4 areas including Investment Advisory, Brokerage Services, Principal Investment & Securities Depository;
07/2002: SSI established its first branch in Hanoi, expanding its operations to
12/2006: SSI stock was officially listed on the Hanoi Securities Trading Center
08/2007: SSI Asset Management (SSIAM), SSI’s Limited Company was established;
10/2007: SSI switched its stock listing to Ho Chi Minh City Trading Center (now known as Ho Chi Minh Stock Exchange);
06/2008: Daiwa became the Strategic Shareholder of SSI
7/2009: SSIAM became the first company in the Vietnam securities market to obtain a license to invest overseas;
09/2015: SSI became the first company that completed all required procedures to officially lift its limit of foreign ownership up to 100%;
05/2017: SSI was granted with securities trading license by the State Securities
Commission for trading derivatives and providing clearing services and settlement of derivatives trading; Hanoi Stock Exchange issued the Decision to accept SSI as a member of the Derivatives trading market
12/2018: SSI celebrated its 18th anniversary and officially changed its name to SSI
Securities Corporation, matching the abbreviation of the company’s name and ticker symbol;
06/2019: SSI was officially granted a certificate of offering Covered Warrants;
06/2020: SSI is the first and only Securities Company holding the Annual General
Meeting of Shareholders in 2020 using online platforms, demonstrating its efforts to increase shareholder benefits;
12/2020: SSI is the first private securities company conferred the noble Title ―Hero of Labor‖ by the Communist Party and the Socialist Republic of Vietnam
05/2021: SSI became the first securities company with a market capitalization of over USD 1 billion
11/2021: SSI successfully issued 218.29 million bonus shares with the ratio of 6:2
In September 2021, 109.1 million shares were offered to existing shareholders at a ratio of 6:1 for VND 10,000 per share, resulting in a charter capital increase to VND 9,847,500,220,000 This move solidified SSI's status as the leading securities company in terms of capital scale in the market.
Figure 4.1.2: SSI’s line of business
Our offerings include a comprehensive range of products and services designed to facilitate investment in listed stocks and mutual funds We provide assistance with opening trading accounts, brokerage services, order placement, and advisory support Additionally, we handle cash transactions and securities depository services, while also offering consultancy for over-the-counter (OTC) transactions Our services extend to the distribution of open-ended fund certificates, exchange-traded funds (ETFs), certificates of deposit, and corporate bonds Furthermore, we support Initial Public Offerings (IPOs) and operate an auction house for coverage warrants, along with trading services for covered warrants.
▶ Products and Services for derivatives market including account opening, brokerage, advisory, order placing, cash transactions
▶ Financial services: margin lending, and cooperation with banks to support securities trading;
▶ E-trading services: Web Trading, Pro Trading, Mobile Trading, Smart Trading, Contact Center and SMS;
▶ Research and Investment Advisory: macro reports, investment advisory report, daily call report, industry research report, company reports, stock valuation reports, money market reports, fund flow reports, technical analysis reports;
▶ Corporate access: company visits to listed/unlisted companies, seminars to introduce investment opportunities to Vietnam and international investors TREASURY
▶ Treasury business activities including currency transaction and investment through term-deposits contracts, loan contracts, entrustment, bond repos, fixed income instruments and other structured product transactions;
▶ Bond services including brokerage, auctions and underwriting services;
▶ Providing flexible structured products for different companies and clients’ needs
▶ Investing in equity, bond, fund certificate, derivative;
▶ Corporate financing advisory: business evaluation, corporate financing restructuring, listing and IPO advisory;
▶ Advisory for capital raising in domestic and international capital market: stock, bond and derivatives issuance and underwriting via public offering or private placement
▶ Fund Management: capital mobilization and management for onshore and offshore funds;
▶ Portfolio Management: discretionary and non-discretionary portfolio management for domestic/international institutions as well as individual customers, corporate clients and Private Wealth management;
▶ Investment Advisory: for institutional and individual, domestic and foreign customers; strategy and asset allocation advisory
4.1.4 Vision, mission, goals of SSI
Founded in December 1999, SSI Securities Corporation (SSI - HOSE) was the first privately licensed securities firm in Vietnam and the smallest in the market at that time Over 22 years, SSI has evolved into a leading financial institution, showcasing the fastest growth rate in the sector, with its charter capital increasing by more than 2400 times With robust financial capabilities, exemplary corporate governance, and a professional workforce, SSI offers clients a comprehensive array of financial products and services, aimed at maximizing shareholder value.
Vision: The Business of Success
SSI Securities Corporation (SSI) embodies the vision of "The Business of Success," focusing on facilitating opportunities in financial markets to foster prosperity and growth Our commitment to success drives us to invest all our resources and innovative ideas into benefiting our clients, employees, shareholders, and the communities we serve.
Mission: Connecting Capital to Opportunities
SSI aims to bridge the gap between capital and opportunities, a mission that unifies all businesses under the SSI brand and will steer future endeavors.
1 Solutions-Led: We are focused on the outcome of making our customers successful, and we prioritize their individual needs over existing products or processes
2 Skilled: We are experts in our industry and our markets and will continually enhance our professional skills to provide the highest standards of service to our customers
3 Inventive: We empower and encourage our people to find creative new ways to bring success to SSI and its customers
4.1.5 SSI's business performance in recent years
As of December 31, 2021, SSI's owner’s equity reached VND 14,220 billion, representing 28% of its capital and a 44% increase from the beginning of the year, positioning it among the top securities firms in terms of equity capital To support the surge in margin loan demand during a year of significant growth, SSI effectively utilized financial leverage, with a short-term loan balance of VND 31,121 billion, marking a 133% rise compared to 2020 This included primarily overdraft and short-term loans from reputable commercial banks Additionally, SSI secured substantial capital through affordable unsecured loans from foreign banks, totaling VND 6,172 billion, a remarkable 483% increase year-on-year, underscoring its growing reliability with both domestic and international credit institutions The credit limits established with commercial banks are adequate to accommodate the increased margin balance, while SSI maintains a prudent risk management strategy to balance growth and risks, ensuring that outstanding loans do not rise abruptly Despite the inherent exchange rate risks associated with foreign loans, SSI mitigates potential losses by executing forward exchange contracts, safeguarding its business results.
SSI's robust margin balance growth is attributed to its well-received lending programs that have effectively stimulated investor transactions Despite the rising margin debt, SSI upholds a strict risk management policy, ensuring early forecasting and prompt responses during volatile market conditions that could impact margin borrowers Additionally, there has been an increase in other payables.
The company's principal payables under the deposit management contract surged to VND 4,312 billion, marking a fourfold increase since the beginning of the year This growth is largely attributed to the influx of funds from investors, driven by a significant rise in new securities account openings in 2021.
Figure 4.1.5: SSI equity structure in 2019-2021 priord
In 2021, the Vietnamese stock market demonstrated remarkable growth despite the economic challenges posed by the Covid-19 pandemic On November 25, 2021, the VN-Index achieved a historic high of 1,500.81 points, marking a significant milestone in its 21-year history Additionally, the average trading value surged to approximately VND 26.6 trillion per session, reflecting a 2.5-fold increase compared to 2020, with a peak of VND 56.1 trillion per session in November 2021.
The surge in the market has led to a remarkable rise in new investors, with the Vietnam Securities Depository (VSD) reporting over 1.5 million new accounts opened in 2021—equivalent to the total from the previous four years This substantial increase in newly opened securities trading accounts highlights the attractiveness and potential of Vietnam's stock market, playing a crucial role in sustaining market liquidity.
In a thriving market environment, SSI achieved a remarkable business performance, with total net revenue soaring to VND 7,786 billion, marking a 72% increase from 2020 The company's profit before tax reached VND 3,365 billion, surpassing 60% of the annual target and reflecting a 116% rise compared to 2020, alongside a 26% increase relative to the combined results of 2019 and 2020 This milestone represents SSI's highest profit in over 20 years, driven by contributions from various business segments, including Securities Services, Principal Investment, Treasury, Investment Banking, and Asset Management The achievement is a testament to the dedication of the Board of Management and all employees, who adapted swiftly to maintain operations during the pandemic, enhance products and services, and capitalize on market opportunities, leading to significant growth in equity without incurring risks.
Figure 4.2.6: SSI business performance 2011-2021 period
Analyze and evaluate the current state of information technology of SSI
Current assessment following 5 pilars: Strategy, Structure, Process, People, Technology
1 Strategy: Alignment with business strategy, Organisation engagement in IT strategy development
2 Structure: IT operating model, Sourcing strategy for IT services, (e.g in-house, outsourced, joint ventures, shared services), IT service catalogue, Functions provided by IT, Governance arrangements
3 Process: Service management process, Service delivery processes,
Demand management, Programme and project management, Business support processes (e.g finance, HR, procurement, supplier management, performance management
4 People: Use of skills/ competency frameworks e.g SFIA to support role definition, career planning and workforce planning, Resourcing approaches (e.g use of contractors, consultants)
5 Technology: Existence of agreed standards across information, infrastructure and applications, Applications portfolio (applications for IT and business applications)
Figure 4.2.1: SSI/IT Maturity Level – Current State
Figure 4.2.2: SSI/IT Maturity Level – Desired State
4.2.1.1 Organizational model of IT management apparatus
SSI Company implements an IT system management model that encompasses hardware, software, databases, communication networks, and information security With a dedicated IT department, the company effectively manages, operates, and oversees its IT systems to support its business activities.
The total number of employees of the IT Department in the company is: 134 people
4.2.1.2 Functions and duties of the IT department
Assist the Director in overseeing the management and implementation of information technology initiatives, including the application of the enterprise resource planning (ERP) system, while also fulfilling additional specified responsibilities.
- Develop strategy to develop information technology and quality management system of the Company
- The focal point for management, support and provision of information technology applications and services for the Units
The primary objective is to collaborate with various units to assess the effectiveness of information technology applications in the production and business operations of the company's executive apparatus and its affiliated units.
- Participate in the approval of the annual budget work program of the Units
- Research and develop new technology solutions that can be applied to the Company
- Technical support on IT for users in the company
- Manage applications, data and backup / restore plans for applications and data managed by assigned departments
- Perform other duties as prescribed by the Company or the Director
The company has invested in a robust IT infrastructure, featuring a Datacenter located at its headquarters in Hanoi The network system connects the Datacenter to various Member Units and is designed based on Cisco's standard layered architecture model This configuration ensures high safety, security, and performance, effectively supporting the company's production, business management, and administration applications.
In the IT infrastructure, certain equipment components must be replaced or upgraded due to compatibility issues with other system elements, resulting in imbalances in processing and transmission speeds.
The Company and its member units have aligned on the investment and development of IT infrastructure solutions; however, many implementations remain localized To foster a cohesive system, it is essential to establish a comprehensive and long-term strategy that unifies the technical infrastructure across the entire organization.
To address the growing demand for effective management and administration of production and business activities, our system of applications and services has been developed This evolution necessitates significant upgrades and enhancements to our infrastructure to meet these emerging requirements.
In recent years, the rapid development of IT technologies and products has necessitated significant updates to IT system infrastructure To keep pace with the deployment of advanced solutions and applications such as ERP, virtualization technology, and cloud computing, organizations must continually adapt their IT systems to meet evolving demands.
The current data backup and disaster recovery (DR) system of the company is inadequate, as the volume of data is rapidly increasing and evolving Our DR site is limited to synchronous data storage, which poses challenges for certain services In the event of a significant issue at the SSI Company Datacenter, restoring IT services will be difficult and time-consuming, highlighting the need for an improved and more robust backup and recovery solution.
Below are the IT applications that have been implemented at SSI Company:
The web-based electronic operation management system (Edoc) enables users to effortlessly access and manage their work from anywhere at any time, requiring only an internet connection This system seamlessly integrates with a wide range of existing information technology applications within the company, including Active Directory, Email, Electronic Office, and Unified Communications.
The system offers high flexibility and openness, enabling efficient soft document processing and seamless adaptation to internal changes within the Corporation Additionally, it facilitates low-cost connections and deployments for new member units.
Human resource management software, developed using ASP.NET and powered by a Microsoft SQL Server database, effectively supports the Human Resources and Training Department in managing corporate HR functions.
+ Accounting management software: Built on Microsoft technology platform, SQL server database management system It can be said that this is a very good and stable software
Electronic file management software (E-File) is a robust solution built on Microsoft technology, utilizing ASP.NET and Oracle database management systems This software serves as a centralized repository for economic documents and oil and gas records, effectively consolidating the company's knowledge and enhancing document management efficiency.
The project management software system, developed on the Java platform and utilizing Microsoft SQL Server for database management, effectively oversees investment projects while managing risks and providing timely project alerts.
- Reporting software system: Reporting support system with the goal of automating reporting work to save time and effort; Reduce errors due to excel implementation by expert engineers
The email system is built on the Microsoft Exchange Server technology platform, providing an efficient tool for employees to exchange information daily and facilitate transactions with customers.
- The website system is deployed on strong and stable Microsoft ASP.NET technology platform with beautiful interface
General assessment of the application of IT at SSI Company as a basis
Between 2019 and 2021, SSI Company made significant strides in implementing IT applications, resulting in numerous achievements The company continuously refined its IT policy system, established a modern information technology infrastructure, and ensured high-speed connectivity They deployed various software applications, including input management, enterprise operation management, and marketing and communication solutions The comprehensive ERP application has enhanced efficiency, reduced time, and lowered management costs Additionally, the implementation of information systems for reporting has improved management quality and administration, ultimately boosting the company's competitiveness.
The Company has established numerous documents, policies, programs, and plans that guide the deployment of IT applications, creating a supportive legal framework for the effective implementation of these policies.
The company ensures that all employees are fully equipped with the necessary information technology tools to meet their work requirements With a 100% rate of computers connected to the network and domain, the organization prioritizes investment in both technical and information security infrastructure.
In today's workforce, 100% of employees are proficient in using computers for their tasks Additionally, the proportion of employees responsible for IT roles within the company has been steadily rising each year, highlighting the growing importance of technology in the workplace.
+ About IT application in management: The use of information technology application in management is increasingly interested and is becoming an important support resource in the Company
The information technology system is built on a robust information security model, featuring a comprehensive backup storage system All computers are equipped with antivirus software, achieving a 100% installation rate Additionally, the percentage of employees proficient in using information encryption software continues to grow annually.
The Company has a dedicated IT and systems department overseen by the Board of Directors, which implements various policies to foster and enhance the application of information technology in management.
Between 2019 and 2021, the integration of IT in management yielded significant outcomes; however, these results do not fully align with the Company's existing IT capabilities and highlight several limitations.
Current policies regarding IT management at the Company are either insufficient or have not been timely issued, resulting in limited application of technology in management practices.
The Company currently lacks detailed guidelines for the storage and management of records, electronic documents, and electronic signatures As a result, these electronic documents and signatures do not possess full legal validity for internal use or recognition by external enterprises, posing a significant limitation to their application in management.
The company lacks comprehensive IT policies aligned with its key business development strategies, particularly in areas such as IT budget planning and financial investment, as well as human resource management and training development for IT personnel.
The company has established comprehensive internal policies and regulations for IT applications, focusing on backup, information security, and data management However, there is a need for greater emphasis on monitoring and ensuring the effective implementation of these policies.
The Company's technical infrastructure and information systems are primarily implemented in isolation, resulting in limited large-scale connectivity and infrequent data synchronization This disconnection contributes to low investment efficiency and a lack of coherence between the Company and its affiliated units.
Many employees still exhibit basic IT skills, hindering the adoption of modern IT applications in management A segment of the workforce lacks both the habits and expertise necessary for utilizing specialized IT tools, which has prevented the establishment of a culture of information sharing within the organization.
Local data storage, viewed as personal possessions, is crucial for effective IT application However, a lack of attention from leadership, insufficient decisive actions, and a failure to exemplify best practices in IT hinder progress These factors pose significant barriers to the successful implementation of IT solutions within the company.
The Company has not prioritized the enhancement of its specialized information security team, resulting in a passive approach to information security risks.
The management of input devices is still limited to the part of the price database that has not really reached the real-time level to improve material supply management
- Group of corporate administration applications:
SWOT analysis
The SWOT analysis of SSI Company's IT site reveals key strengths, weaknesses, opportunities, and threats The strengths highlight the robust IT infrastructure, while weaknesses point to areas needing improvement Opportunities for growth include advancements in technology and market expansion, whereas challenges involve increasing competition and cybersecurity risks This comprehensive assessment underscores the critical aspects of SSI's IT applications and strategic direction.
Figure 4.4: SSI/IT SWOT analysis
+ Company leaders are interested and have a desire to apply and develop technology, especially IT in supporting production and business activities of the
+ At SSI Company, there is good IT infrastructure, ensuring the deployment of IT applications and connection between member units and partners
The company prioritizes copyright compliance by acquiring full rights to software, including essential office applications like Microsoft Windows and Microsoft Office, as well as specialized tools for the oil and gas industry such as Petrel, Schlumberger's Geoframe, and Halliburton's Openwork.
+ 100% of the Company's employees know how to use computers and internal IT applications and services
Since 2007, the company has implemented and continuously upgraded internal communication systems, including the Exchange 2013 email system and Unified Communication tools for video conferencing, voice, and chat These systems effectively address the evolving information and communication needs of the organization.
+ The company has a specialized IT department with a team of young, responsible and well-trained IT personnel
Investment in IT development remains inconsistent and lacks a cohesive strategy or clear roadmap Although Company leaders are focused on this area, the level of IT investment does not align with its critical role in supporting the Company's production and business activities.
Due to being fully state-owned, the company faces numerous regulatory constraints that significantly slow down the implementation of IT projects As a result, many technological solutions are often outdated by the time they receive approval and are deployed, typically arriving at the end of their product life cycle.
+ The company has not yet built an IT architecture to have a methodical investment and development roadmap
+ The level of compliance with policies and procedures of employees in the Company is still low, self-discipline is not high
+ The investment and implementation of IT solutions has not been synchronized, throughout from the Corporation to the member units
+ There is no specialized staff for IT jobs, one IT officer takes on many different job positions, leading to overload and not specialized
Facing the current situation and the need to support production and business activities, the Company can seize the following opportunities:
+ Opportunity for IT investment, all employees at the Company have to work on computer systems
+ Have the opportunity to learn from experience from large domestic and foreign companies in planning and building IT strategies to support the Company's business and production strategy
To address the shortcomings in current IT operations, the Company's Board of Directors can develop strategies to enhance workflow efficiency They can also advocate for state agencies to establish regulations that align with the Company's operational model, facilitating the swift deployment of IT solutions following thorough research and selection.
+ Develop an overall IT Strategy, with a roadmap for investment, human development, and IT systems, thereby reducing investment costs, synchronized systems, and ensuring safety
There are potential risks and challenges that the Company may face such as:
The rapid advancement of information technology necessitates that strategic planners, implementation organizers, and users consistently update their knowledge in professional expertise and technology This ongoing requirement creates significant pressure on the implementation process.
Investing in IT involves significant costs, yet the returns on such investments are often intangible and difficult to quantify financially With technology evolving annually, organizations face increasing pressure to maximize the efficiency of their IT investments.
Developing and retaining stable IT personnel presents a significant challenge for companies It is crucial to recognize and provide reasonable remuneration for key positions to retain talented individuals This approach not only helps prevent brain drain but also safeguards the substantial investments made in recruitment and training efforts.
PROPOSAL AND CHOOSING IT STRATEGIES
Choosing Information Technology Strategy for SSI company
Figure 5.1: Choosing IT Strategies for SSI
5.1.1 Proposed view of IT Strategy
SSI Company's IT strategy is built on the following point of view:
- Scope of application: apply to SSI Company
- Duration of the IT Strategy: developed for the period from now to 2025
- The IT strategy is built on the basis of SSI Company's Business Strategy for the period of 2019 - 2021
- The IT strategic goals are built on the basis of analyzing the current IT status of SSI Company, while paying high attention to feasibility in implementation
- Strategic solutions must keep abreast of new technology trends, suitable to the field of operation of SSI Company
- IT strategic objectives closely follow the objectives of production and business strategy
5.1.2 Current and near future IT trends
In recent years, the concept of the "4th Industrial Revolution" or "Industry 4.0" has gained significant attention across media, governments, and businesses, highlighting the growing interest in the application of new technologies Key technology trends emerging during this era warrant consideration for the development of IT strategic solutions at SSI Company.
Cloud computing has revolutionized the computer industry in recent years, transforming resource utilization and operational structures, as well as the storage, distribution, and processing of information Today, many individuals and businesses rely on various cloud computing applications in their daily activities and management processes This computing model enables convenient and rapid access to computing resources over the network based on demand, allowing users to easily free up resources and minimize communication with suppliers.
Artificial Intelligence (AI) refers to the intelligence exhibited by artificial systems and has evolved from a concept in science fiction to a crucial field in informatics AI focuses on enabling machines to exhibit intelligent behavior, learn, and adapt, closely mimicking human cognitive abilities While no AI system has achieved flawless performance, advancements have led to significant applications, including disease diagnosis, customer service inquiries, handwriting and language recognition, and even facial recognition.
Go master, etc are enough to show that the future of perfect AIs is not far away
Machine learning is a crucial element in the development of AI systems, emerging from the need for knowledge acquisition and decision-making in computers For instance, in the fast-paced environment of stock trading, machine learning serves as a dependable tool for making swift decisions It focuses on modeling problems to enable computers to automatically comprehend, process, and learn from data, thereby evaluating and executing tasks with maximum efficiency and optimization.
Big Data is often likened to having everything, as it encompasses the vast array of user behaviors on platforms like Google Search, YouTube, and Facebook This data, which includes interests, clicks, and engagement patterns, is more valuable than gold for tech giants It serves multiple purposes and forms the foundational raw data for big data warehouses Analyzed through machine learning, this data aims to produce reliable insights, ultimately leading to the development of intelligent AIs that surpass human reasoning.
- Internet of Things (IoT): is a network of things connected to the Internet, in which devices and means of transport (referred to as "connected devices" and
Smart devices, including buildings and various equipment, are equipped with electronic components, software, and sensors that allow them to connect to computer networks This connectivity enables these devices to collect, transmit, and exchange data, facilitating seamless communication and information sharing among them.
Virtual Reality (VR) and Augmented Reality (AR) are innovative technologies that transform how individuals perceive their surroundings Developed by major companies like Google, Microsoft, and Facebook, these technologies have become essential across various sectors, including entertainment, science, research, and practical applications.
A strategy that harnesses a company's internal strengths to capitalize on external opportunities is essential for organizational success Business leaders aim to leverage their internal resources to respond effectively to external trends and events Typically, organizations conduct thorough research and evaluation to implement WO, ST, or WT strategies, ultimately positioning themselves to apply SO strategies for optimal growth.
This strategy builds on the strengths of SSI Company to take advantage of opportunities:
- Learn from experience from the outside environment
- Change appropriate regulations and regulations to facilitate deployment and effective investment
- Timely grasping new technologies to be able to apply and deploy to improve the efficiency of production and business activities
A strategy that uses the strengths of the business to avoid or reduce the impact of external risks and threats
Strategy based on SSI Company's strengths to avoid existing risks and challenges:
- Accelerate development and application of IT to improve labor productivity and reduce operating costs
- Having an overall investment solution to have a synchronous and modern system, reducing the risk of technology change or investing in outdated technology
- Attract and retain talent in the IT field
Defensive strategies that reduce internal weaknesses and avoid external threats and challenges
The strategy is based on SSI Company's ability to overcome weaknesses to avoid threats and challenges
+ Improve work efficiency and productivity
+ Minimize the level of investment spread without a roadmap, lack of synchronization
+ Structure to supplement human resources to ensure positions are not overloaded, improve labor efficiency
Based on the analysis of the current IT landscape presented in Chapter 4, the author recommends adopting a Follow-up Strategy for the development and implementation of the IT Strategy at SSI Company This approach is chosen due to its effectiveness in ensuring continuous improvement and alignment with the company's goals.
SSI Company specializes in financial services, focusing on the research and application of technology products to enhance its production and business operations, rather than developing technology products itself.
SSI Company should leverage its existing strengths and infrastructure while staying updated on technological advancements It is crucial to research and understand the architectural frameworks, development models, and strategies of both domestic and international competitors By studying successful companies in the industry, SSI can mitigate risks associated with adopting unsuitable technologies and solutions, ultimately paving the way for future success.
Strategic IT solutions at SSI Company
5.2.1 General principles in the entire solution system
SSI Company must create an IT strategy that aligns with its production and business goals while adhering to established IT guidelines and directions.
Determining the order of priority for implementation of solutions:
Consolidating IT management and service organizations, building IT policy systems, developing IT human resources, raising awareness and awareness issues IT are the leading solutions
5.2.2 Raise awareness and awareness about IT
To remain competitive in today's globalized market, SSI Company must recognize that ineffective IT application poses a significant risk Embracing IT as a vital tool is essential for enhancing core business operations and production activities, ultimately supporting the achievement of the company's strategic development goals.
To enhance the effectiveness of IT applications within the organization, it is essential to propose a comprehensive strategy that combines content for propaganda, introduction, and dissemination alongside administrative sanctions This approach aims to ensure that all employees and officials across various fields recognize the critical role of IT in their professional and management tasks Furthermore, company leadership is committed to supporting and encouraging the IT team to actively drive the deployment of IT applications, thereby maximizing their impact and utility in the workplace.
5.2.3 Improve capacity to deploy applications and invest in IT development
To enhance the IT policy framework within the Company, it is essential to establish targeted investment policies for IT applications Additionally, policies should be implemented to motivate subsidiaries to invest in IT initiatives, while also identifying critical programs that align with these objectives.
IT projects, IT projects/projects invested by the Company, projects/works at subsidiaries to increase the initiative for the units
Identifying foundational and breakthrough IT application investment projects is essential for Unify to concentrate on key initiatives that align with the company's business and production strategy, driving development in the IT sector.
To enhance operational efficiency, it is essential to continually develop and invest in innovative applications like Statistical Management and Smart Business Systems Additionally, focusing on the optimization and upgrading of existing applications, including Human Resource Management and safety, health, and environment management, as well as investment management, will significantly improve overall performance.
Investing in IT is a long-term commitment that should align with the production and business scale of the organization, including revenue, profit, and employee count It is crucial to avoid underinvestment or inefficiencies that prevent full utilization of the IT system's features and capabilities Additionally, deploying applications and investing in IT development should focus on ensuring seamless system and data integration between the corporation's IT infrastructure and the unit's systems.
The subsidiaries of the Company independently define their rights and obligations while engaging in human resource investments, infrastructure projects, data sharing, and IT application initiatives, without the Company acting as the investor or project manager.
5.2.4 Completing mechanisms and policies on IT application
To enhance IT development and application, it is essential to review existing policies and identify any gaps, inadequacies, or outdated regulations This process will facilitate the deployment, supplementation, amendment, and updating of policies, creating a supportive legal framework for promoting IT applications and fostering the growth of e-businesses Special attention should be given to refining and improving these policies to ensure their effectiveness.
The Company should prioritize the swift development, implementation, and organization of electronic signatures Based on a thorough analysis, it is evident that the Corporation possesses a robust and comprehensive IT application platform.
About infrastructure and application deployment This is an advantageous basis for strengthening the application of IT in management
Second, review relevant documents and policies, affecting the application of
IT in management Identify regulations that hinder IT application development It is recommended to shorten and develop appropriate and simple and understandable processes, regulations, and instructions for employees
The lack of clear regulations surrounding the legality of electronic documents and signatures has led to significant limitations in their official recognition Implementing a comprehensive policy will provide both legal clarity and psychological reassurance, encouraging the adoption of electronic documents and signatures.
Reviewing and perfecting the policy is a regular thing to do The company needs to identify and soon complete the policies that are hindering the application of
5.2.5 Development of IT application technical infrastructure
The company currently boasts a robust IT application infrastructure, characterized by a favorable ratio of IT devices to employees and a high percentage of computers fully connected to the network and managed within the domain However, the utilization of these resources for work purposes remains limited To enhance productivity and efficiency, it is essential to implement targeted solutions that maximize the potential of the existing IT infrastructure.
To ensure effective implementation within the company, it is essential to clearly define key application contents and assign specific responsibilities for coordination, particularly emphasizing the manager's role Regulations must be explicit and mandatory, avoiding vague or generic language to enhance clarity and accountability.
To ensure successful application implementation, it is essential to significantly simplify internal work processes and procedures, which is often overlooked Streamlined procedures facilitate the integration of IT solutions, making software development and implementation smoother For instance, business software designed around simplified processes with minimal constraints is easier to build and deploy Conversely, complex processes complicate software development, leading to potential issues during implementation.
To enhance employee engagement with information technology, it is essential to promote communication activities and introduce relevant applications effectively Simplifying the conditions and operations for data entry, along with raising awareness about automatic data entry technology, will facilitate easier access and utilization of these applications by employees.