In comparison to many of our ASEAN neighbors, Malaysia ranks highly in the growth of digital economies. In fact, recent reports suggest that the Nation is on course to have digital economies contribute upwards of 20% towards the Nation’s GDP by 2021. In fact, The Asia Pacific region is also set to record digital growth that is 60% higher than the global average.
This basically means that the Asian region is poised to become the global superpower in the digital economy. An area of much delight and potential for some but understandably an area of concern for others.
The unfortunate risk of this growth is that organisations that are slow to digitalize their offerings and operations (i.e., to adopt a digital-native operating model) over the next three years will find themselves competing for only a minority — and a progressively shrinking minority — of their market segments' opportunities. Scary, isn’t it?...
...Actually, not really - Being in a region that is at the forefront of global tech and digital business growth, there are many ways that Malaysian SMEs can help themselves grow and realise their business potential, especially in the context of digital capabilities
Digitalizing Your Business is a Journey not a Destination
Organizations ranging from large to small, and everything in between are now being locked in an ongoing arms race to improve their performance and offerings through new forms of digital technology. The growing push to digitalise all aspects of the business is a major area of concern for Business Owners, C-suites and investors alike.
Despite being one of the leaders in digital adoption in the region. There is a small majority of Malaysian businesses that are still traditional in nature - using tried and tested ‘old-school’ methods that have worked for generations but are starting to show cracks. The idea here isn’t that these methods are irrelevant but local businesses are missing out on larger market segments and are at risk of being irrelevant should they fail to digitalise effectively - and this should not be new information to you.
“Today, we are entering into a brand new phase where many organizations have recognized the full benefits of DX(Digital Transformation) and are investing in digital innovations with the intention to disrupt the marketplace,” said Sudev Bangah, managing director of IDC ASEAN.
What exactly is digitalisation for Malaysian businesses (and where can you buy it at a discount) you may ask - Digitalisation refers to the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business It could mean a shift from ‘paper + pen’ to computerisation or using high end software and applications to create efficiencies or solve complex problems to your business.
If you’re more interested in getting in touch with us and seeing how we can custom-make a solution based on your needs .
Digitalisation Benefits for Malaysian SMEs
As a whole, local SMEs face many challenges such as price wars, high turnovers and keeping up with new regulations in the sector to name just a few. Digitalization would help solve some if not most of those problems. If you’re a business owner who is on the fence about the benefits or ROI of your efforts, The following is meant to give you a better scope of understanding of the deep benefits of digitalization.
Online Presence for your business
New & wider contact/leads/sales channel
Better decision making through trends and data analysis
Improves Efficiency and productivity
1. Online Presence for Your Business
For traditional businesses, this is probably the most visible advantage. The presence on the Internet, through tools such as online stores, social media platforms, blogs, corporate pages, etc., multiplies the visibility of the company and provides round the clock access to potential consumers.
For some companies, this presence is the focus of their digital strategy, and they have even shifted their business from traditional forms to online commerce,(click & mortar).
Having a well-designed, contextual and optimised website can potentially be the growth catalyst businesses strive for as it could potentially create sales channels that were previously non-existent.
2. New and Wider Contact, Leads and Sales Channels
Most regional SMEs subscribe to funnel-based marketing strategies, as such, existing contact lists and leads are quintessential to the business growth. Having a website with a lead capturing tools is a great way to create further engagement with site visitors.
Apart from that, traditional leads-based (spreadsheets) methods can be further developed, streamlined and optimised by using Customer Relationship Management (CRM) tools. Being able to manage and define your contact lists, identifying and nurturing new leads as well as identifying patterns and potential new marketing angles through CRM data would create efficiencies in the operations and management of the business.
3. Builds Customer-Centricity
Customer-Centricity is a way of doing business with your customers in a way that provides a positive customer experience before and after the sale in order to drive repeat business, customer loyalty and profits. Giant companies like Amazon.com thrive because of their key focus on their customer needs and wants - if the big guys are doing it why shouldn’t the budding minnows follow-suit?
Local SMEs face competition at every turn, it is the competitiveness that drives innovation and growth however, this competition simply means that there is an ever-growing list of options to the consumer. Price positioning (cheaper amongst the competition wins) does work to a certain extent but the overall purchasing process before, during and after the sale is made is ever-increasing in it’s importance.
Having mechanisms in place to communicate, collect data on customer behavior and having accessible online platforms for customers to voice their concerns and desires are a great way to show customers that your business cares for more than just the sale.
4. Better Decision Making Through Trends & Data Analysis
Gone are the days of using hunches to make decisions. In order for the modern business to thrive in the market, informed decisions through data and trend analysis is vital. Digitalization goes hand in hand with data management, data is knowledge, and knowledge leads to better decisions.
The digitalization of business makes it possible, as we have seen in the previous paragraphs, to have continuous contact with the customer, and this allows us to get to know him/her better. But that is not the whole point. Some companies go further and apply Big Data when making all kinds of decisions that affect almost the entire business (marketing, production process, etc.).
5. Improves Efficiency and Productivity
This is probably the thing that concerns local businesses the most. Think about this - You have more information, which allows you to make better decisions, and technological tools to make your work easier.
When used intelligently, the digitalization of business can lead to a significant increase in productivity and can reduce some costs. Be it allowing your sales team to perform less menial administrative tasks, or easing the entire customer order or inventory management - technology has helped companies to improve in these areas throughout the years.Digitalization can also do this
From the above, you can come to the conclusion the digitalization of business is not always a simple process, but it can bring great benefits. In addition, current market trends and needs forces a more robust use of technologies in businesses and companies which fail to cope with these market demands and not incorporate technology and digital tools in the management and operations of their business will have problems in maintaining its competitiveness.
Now that we’ve seen some of the key benefits of companies adopting digitalisation of operations and overall management , how about taking a few minutes to learn about BoostOrder and our mission to bring digital capabilities to Malaysian Businesses