Most Malaysian Companies Lack Integrated Digital Transformation Strategy

The latest IDC and Dynatrace report The Digital Transformation Blueprint: Software-Defined Enterprises in Asia Pacific, shows that 55 percent of Malaysian organisations surveyed do not have an integrated enterprise-wide digital transformation strategy.

IDC believes that becoming a digital native enterprise “is the way to sustainable competitive advantage in the digital economy, where disruption is a constant, and self disruption is embedded into the very fabric of organisations.”

A digital native enterprise can scale its operations and innovate at a greater magnitude. It is driven by a customer-centric and empowered workforce that embraces risk-taking as it seeks to continuously innovate.

Organisations must overcome the five digital deadlocks – outdated KPIs, silos of transformation and innovation, having limited expertise and poor tactical plans – to lead in the digital economy.

According to Mr Rafi Katanasho, Chief Technology Officer at Dynatrace Asia Pacific, there is a growing digital divide occurring within every country in the Asia Pacific region between organisations that are digitally progressing (38 percent) and those that are digitally distraught (62 percent) and struggling with these deadlocks.

Key findings

  • From the 100 enterprise-level organisations surveyed in Malaysia, a majority of them are prioritising customer (69 percent) and operational excellence (62 percent) in products and services
    • Organisations are investing into programs such as logistic automation in digital supply chain, resilient lean in smart manufacturing and engagements through digital channels
  • About 29 percent of Malaysian organisations have developed an external facing digital platform –below the average of 34 percent in APJ
    • These organisations are now expanding their platforms mainly through multiservice cloud platforms (72 percent), customer service (CX) applications (69 percent) and API management (66 percent)
    • This expansion is part of the effort to drive real-time visibility in order to support sustainable lean principles in supply chain activities
  • However, Malaysian organisations must be ready to extend Application Performance Management (APM) into their ecosystem in order to extend real-time supply chain visibility
    • This is due to the fact that 29 percent of Malaysian organisations are still running silos of innovation

“Many organisations are not yet fully committed to digital transformation and therefore make short-term investment decisions. These organisations face a long road ahead as the digital divide grows, regardless of where they are based in the region. Those who are ahead in this journey approach transformation from an outside-in perspective to become a leader in their ecosystem and industry. They continually monitor and adapt to new information, opportunities and threats whilst leveraging their ecosystem of stakeholders to dynamically evolve products and services, business models and strategies.” Rafi Katanasho

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