Scope of Work - Business Management Digital Transformation Consultant
Program: USA ID Linkages for Small and Medium Enterprises (LinkSME) Project Expected Duration: August to October 2020
Location: Hanoi, Vietnam
IESC – the International Executive Service Corps – is a U.S.-based nonprofit that seeks private enterprise solutions to problems of poverty in developing countries and around the world. IESC is the implementing organization of Linkages for Small and Medium Enterprises Project funded by the United States Agency for International Development (USAID). USAID LinkSME aims to strengthen the capabilities of the intermediary organizations in Vietnam, such as business associations, export development centers, and SME promotion agencies, in order to facilitate the supplier-buyer relationships between Vietnamese small and medium enterprises (SMEs) and lead firms located in Vietnam and expand Vietnamese SMEs’ capacity to participate in manufacturing supply chains. USAID LinkSME will enhance the business enabling environment by institutionalizing key reforms and strengthening the legal and regulatory framework for SME growth across the nation. One of the four project components is “Improving SMEs’ supply capacity and strengthening business linkages between SMEs and global value chains,” which is Component 3 with the Agency for Enterprise Development (AED), the Ministry of Planning and Investment (MPI), as the key Government of Vietnam counterpart.
During consultations in April and May, AED informed the LinkSME project that its key priority for programming Post COVID-19 funding was to support for SMEs in digitalization and digital transformation. The priority for this support was then reinforced in early June in decision No. 749/QD-TTg, ‘Program for National Digital Transformation by 2025 with Orientations Towards 2030’ which envisioned MPI collaborating with the Ministry of Information and Communications (MIC) and other relevant ministries to perform the tasks of supporting small and medium enterprises in digital transformation and incorporating digital transformation into support programs and schemes for small and medium enterprises for 2021 – 2025.
Based on AED’s requirements, we recommend that AED start by developing a multi-year SME Digital Transformation Framework which focuses on scope definition, prioritization over the timeframe. Then we would supplement the strategy with ‘implementation plans’ on an annual or other periodic basis to implement the framework. The value of having a framework, and developing the framework first, is that it gives a more precise idea of the goals, more effectiveness in planning, and then monitoring and adapting those plans, to make sure that the programming is accomplishing what was set out to achieve.
The approach for this work will be in three phases:
- Assist AED to develop a 5-Year SME Digital Transformation framework (Sep 2020)
- Assist AED to socialize the Framework; Develop the Year 1 Implementation Plan (Sep 2020)
- Assist AED to implement the new SME Digital Transformation Framework (FY 2021-23)
- Support Digital Transformation consultant in defining the scope of Vietnam SMEs digital transformation.
- Analyze the characteristics of Vietnamese SMEs and support digital transformation expert in defining the concept of Vietnam SMEs digital transformation; the level of digital maturity, objectives and benefit for SMEs in terms of customers, business and operating model (Noted that the definition of SMEs in scope will be guided by AED).
- Facilitate the discussion with relevant stakeholders (USAID, AED, etc.) to agree upon the concepts/definition for Vietnam SMEs digital transformation.
- Prepare report on current Vietnam SMEs customer, business and management model (including challenges and opportunities) for digital transformation at different level (“going to being digital”). The report will include but not limited to the following information:
- Analyze the management level of Vietnam SMEs (by categories) in terms of their standardized operation & management model for digitalization, provide the overview picture (challenges and opportunities) on current SMEs applying digital solutions in business management areas.
- Study and analyze the various customers, business models (by categories), giving the current status of what and the level of current SMEs in terms of applying digital technologies, defining the challenges and opportunities for SMEs in terms of applying/or transform the mode by using digital technologies.
- Organize stakeholder workshop (01) to get feedback, especially from SMEs.
- Work closely with the Digital Transformation Consultant to develop a report on SMEs Digital Readiness framework and recommend strategy/road map for SMEs and policy/institutional support from the Government
- Collect the information to analyze the pros and cons of digital technology, solutions for each category of customer, business and operating models of Vietnam SMEs.
- Prepare the checklist of technologies and vendors in the market for SMEs reference.
- Support the development of recommendations on transformation solutions and strategy/plan for SMEs;
- Analyze and draft the high-level strategy and policy/institutional support from government for the next 05 years (2021 – 2025)
- Develop the templates/forms of business case to support SMEs in manufacturing build up the business case analysis to define cost/benefit when they plan to apply digital solutions.
- Report 1: Report on current SME digital transformation around the world, Vietnam SMEs’ business and management model (including challenges and opportunities) for digital transformation at different level (“going to being digital”). Executive summary in English is required.
- Appendix 2 to Report 2: Business case template support SMEs in defining cost/ benefit of digital solution and user guide. Executive summary in English is required.
- Vietnamese national;
- Master degree in Economics (IT is a plus);
- At least 10 years working in business management area in Vietnam (experience in IT sector is a plus);
- Experience to work with digital transformation activities for businesses in Vietnam (oversea is a plus) such as study the digital transformation trend, propose the digital transformation strategy for enterprises, etc.;
- Experience to work with donors to develop the development project is a plus;
- Experience in review and development of policy and institutional framework is a plus;
- Experience to work in key sectors such as metal, electronic, automotive, agri-processing, manufacturing, textile and apparel, etc.;
- Good understanding of SMEs in Vietnam;
- Maturity, professionalism, positive attitude and displays acceptable behavior; and
- Fluency in Vietnamese and English.
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