Nov. 23, 2016
Image (CIO) - Digital transformation
According to a global study measuring the business impact of digital transformation (DX), Malaysia is higher than the global average.
The survey - Keeping Score: Why Digital Transformation Matters - noted that business benefits such as improved customer experience and digital reach ranked among the top benefits for companies in Malaysia that are undergoing digital transformation.
"The application economy has increased consumer expectations. It is promising to note that Malaysian enterprises are placing greater focus on digital initiatives," said Nick Lim, vice president, ASEAN and Greater China, of CA Technologies, which commissioned the study.
Lim said the study found "a strong connection between business performance and the technologies and practices that underpin digital transformation."
He said the survey introduced the Digital Transformation Business Impact Scorecard (BIS), which assessed the success of enterprises' digital transformation initiatives. The BIS ranked countries and industries globally on a 100-point scale based on 14 key performance indicators (KPIs listed in an appendix below), across the categories of business agility, business growth, customer focus and operational efficiency.
With a score of 64, the impact driven from digital initiatives in Malaysia was higher than the Asia Pacific & Japan (APJ) score of 56 and global score of 53, said Lim.
In terms of ranking in Southeast Asia, Malaysia came in third, just behind Indonesia (2nd) and Thailand (1st). This ability to transform digitally was reflected in 83 percent of businesses in Malaysia, which saw themselves as "significantly ahead of competitors due to digital investments. In addition, 48 percent of them see themselves as disrupting their industry, because of the advanced digital initiatives they have adopted."
Malaysia's enterprises were also responding to the pressures to meet their customers' increasing expectations, noted the study, which reported that digital transformation efforts were having a positive effect on customer engagements: 78 percent of enterprises in Malaysia have reported moderate to significant improvements in customer experience due to digital transformation, five percentage points higher than the APJ average of 73 percent. Customer satisfaction and customer retention have also improved by 46 percent and 45 percent respectively.
Three-quarters (75 percent) of the respondents have also seen improvements in digital reach. "In addition, the payoffs are greater in the categories of business growth and operational efficiency, where Malaysia enterprises' improvement pre and post-digital transformation were above the APJ average," continued the key findings summary.
Respondents in Malaysia also reported the following benefits as a result of digital transformation:
- 42 percentage growth in new business revenue
- 47 percentage improvement in employee productivity
- 45 percentage improvement in quality of development process/applications (number of defects)
- 43 percentage improvement in operation or process efficiency
- 39 percentage improvement in tightening up IT-related costs