DIGITAL TRANSFORMATION 

In this digital age, companies that deliver an engaging and satisfying customer experience fitting into their lifestyle will gain competitive advantage. To get into a deeper understanding of digital transformation we must look into what it is, why it needs to be at or near the top of our strategic imperatives but also how to begin the journey of transformation.

Business leaders must be thinking about disruption. Businesses have always disrupted and replaced other businesses. In the early 1800s in England, factories with mechanical looms threatened to replace traditional shops making hand woven cloth, which led to riots among weavers fighting to save a way of life. These weavers were literally at war against mechanization and progress.

Disruption isn’t new. What’s new is the pace of disruption. What may have taken decades in the past seems now to happen overnight.

Uber burst on to the scene just a few years ago and already is taking down the taxi industry in New York City and here in Malaysia, erasing the value to this long-established business. Like the weavers, taxi drivers are fighting back too, suing and blaming Uber for ruining their livelihood.

Transform or die, that’s the theme of this article and the mantra of many a forward-thinking business leader.

Digital technology (or, as some refer to it, “infotech”) has disrupted large part of the economy, from taxi drivers to travel agents, from book sellers to movie vendors, and it will continue to disrupt and overturn seemingly entrenched businesses that are slow to recognize and respond to the digital tsunami.

To avoid being swept away by the digital era, businesses must embrace digital transformation.

Digital transformation is how business becomes a digital enterprise, and transforming the organization into a digital enterprise is necessary to compete for digital customers.

Technology enables this transformation, but digital business is not about IT transformation. Nor is it about using IT to improve operational efficiency. Digital business is about finding new marketing, engaging new customers, and generating new sources of revenue.

The goal is to find innovative ways to engage the new breed of customers and ultimately capture a greater share of their digital market and growing purchasing power. Digital transformation is the means by which companies will create those new business models and revenue streams.

What is meant by digital enterprise, as well as related concepts such as digital economy and digital platform. What is in it in customer experience and changing customer expectations and how does digital customers accelerate the need for digital transformation.

What are the examples of business and industries undergoing transformation and what that looks like - What is the concept of a digital platform, its characteristics and components. What is the model which can be used to assess our own digital maturity and readiness for transformation.

What does the digital customer want?

They want more choice and customization.

They require instant access to product information wherever they are.

They expect to receive products quickly and with zero defects.

Ordering, billing, and payment transactions must be simple, streamlined, and accurate.

Supply chain excellence is key to a superior customer experience, but has become incredibly challenging in today’s business environment.

The digital supply chain must accommodate a rapid cycle of product introductions and personalized offers, cope with exploding volumes of cross-border transactions, and operate seamlessly and efficiently within a fragmented, global ecosystem of partners and suppliers - all while maintaining profitability and service levels.

To excel in this new environment, businesses need to radically change or, in many cases, completely overhaul their supply chain processes.

There is a need to digitize core business processes and adopt emerging technologies for increased flexibility, productivity, cost savings, and streamlined transactions with supply chain partners.

A Digital Ecosystem

During the transition to a digital business, organizations need to re-envision their business not as a standalone entity in which activities flow in an orderly, predictable way, but as part of an extended digital ecosystem from which they, their customers, or any member of the ecosystem can gain information on products and services according to their needs and easily pivot their operations to meet demand.

Embracing digital transformation in Malaysia                                                       After a rather poor start a few years ago, Malaysian enterprises - across most verticals - are finally starting to embrace digital transformation in a more serious way. This is a significant progress -- as it means that Malaysian companies are now more aware of the importance of digital transformation and that the questions asked by companies have moved from 'What is digital transformation? Why do I need it?' to 'How do I transform digitally? How do I embark on this journey?'

According to Oracle Corp's country manager for its Malaysian operations Fitri Abdullah, one of the reasons the conversation is changing is that IT and digital transformation are no longer merely issues and concerns of the IT departments.
Increasingly, the organisation is having conversations on digital transformation with the CEOs, the human resources team, the finance team. It is no longer just us and the IT department. CA Technologies APJ vice president Richard Gerdis agreed and he believed that another reason why digital transformation agenda is gaining steam is because they know that - from various case studies and reports - it will positively impact the company's bottom-line.
According to CA Technologies' recent global study, it showed that companies and enterprises embarked on the digital transformation journey are seeing a positive impact to its business performance.
The global study - which compiles feedback from 1,770 senior business and IT executives, including those in Malaysia - revealed that respondents saw an average increase of 37% in terms of revenue from new business sources.

The study also showed that those who embarked on digital transformation saw customer satisfaction increased by 40%, and speed-to-market jumped by 33%. About three quarters of the respondents saw an improvement in customer experience, and increase in digital reach.