Digital transforming Malaysian businesses to deliver on consumer expectations
Reaping the benefits of digital transformation is the goal for many businesses in Malaysia, and they are optimistic about the future.
The shift to digital presents opportunities for companies to increase efficiency, productivity, and innovation. Digital transformation can help businesses improve efficiencies, reach new markets, and create new revenue streams.
Investment in digital transformation
The Adyen Malaysia Retail Report 2022 has found that Malaysian companies undertaking digital transformation outperform their industry peers, now worth RM334 billion.
One key finding from the report was that over one in four businesses connected payment systems to other parts of the organization, such as inventory management and supply chain, to improve operational processes and break down silos in backend processes.
Specifically, companies that connect payment systems with other business sections grow 18% more than those that do not. As a result, 60% of businesses are now in a better position. This is 11% above the global average and the highest in the Asia Pacific (APAC).
Tech-savvy Malaysian consumers
According to a retail report by Facebook and Bain & Co, Malaysian shoppers are more inclined to conduct their shopping activities online. Out of the five aspects studied – online research, price comparisons, convenience, product quality, and brand loyalty – 72% of Malaysian respondents chose convenience as the main reason why they prefer to shop online.
Malaysia is currently ranked eighth out of 24 countries regarding the percentage of people who shop online. This upward trend is expected to continue as Malaysians become more comfortable transacting digitally.
According to Malaysian Statistics, there were 40.69 million mobile connections in Malaysia, equivalent to 127% of the total population, in 2020. Meanwhile, Malaysia’s overall e-commerce sales will increase by 1.3 times by 2026.
The Adyen study has shown that 67% of shoppers prefer retailers remembering preferences and previous shopping behaviors, creating a more tailored shopping experience, and 66% like personalized adverts or suggestions.
To provide this experience, retailers must employ machine learning algorithms and other technological solutions that can crunch consumer data efficiently in real-time. This will allow businesses to understand better what their customers want and need, and subsequently deliver it to them.
Malaysia to accelerate digital transformation
The Malaysian government has been actively pushing for the country to go digital to boost the economy. Through the Ministry of Science, Technology and Innovation (MOSTI), the Malaysian government is setting up a Centre for the Fourth Industrial Revolution (C4IR).
The new center, to be officially set up in the second half of 2022, aims to champion Industry 4.0 initiatives in the country and will serve to accelerate technology adoption.
C4IR will serve as a one-stop center to provide comprehensive support to all Malaysian businesses – particularly small and medium enterprises (SMEs). This will also facilitate their move towards digitalization and Industry 4.0.
Malaysian businesses need to embrace digital transformation
With the ubiquity of technology, brick-and-mortar businesses in Malaysia have no choice but to offer shoppers a seamless and satisfying experience.
Businesses will need to embrace omnichannel retailing and adopt new technologies that make shopping convenient and fuss-free for customers to stay afloat. This includes leveraging big data, cloud computing and mobility to create an interactive and engaging customer experience.
- Will AI put an end to the gig economy?
- Creating a recipe for sustainable data centers
- New types of malware surge by 70%, and cybercriminals increasingly target governments worldwide
- What could AI and automation look like in 2024?
- From AI-powered chips to chatbot: Here’s what was unveiled at AWS re-Invent 2023