Covid-19, a game changer for digital transformation

It enables companies to grow and innovate

COVID-19 has propelled the shift to the

Digital Transformative Age faster than imagined.

Every aspect of our lives is becoming more closely linked with technology, providing companies with ever increasing opportunities to grow and innovate. This requires businesses to create sources of value beyond the bottom line – people value, social value and customer value, that connect to being human-centric, innovating at scale and deploying technology at speed.

Some leading companies have been able to do this – not by trying to outrun technological disruption, but by seeing it as an opportunity to reinvent themselves and by learning to use it as an enabler to unlock new value sources.

Despite the adverse impact to health and the economy, Covid-19 can be viewed as a game changer to accelerate the transformation of Malaysia; both businesses and the public sector can re-strategise to invest in more integrated digital infrastructure to manage current and future disruptions.

Since the commencement of the movement control order (MCO) in March 2020, Malaysian businesses have made rapid adjustments, leveraging online communications, online transactions and work-fromhome flexibilities.

The recent EY Covid-19: Business Impact survey, which involved nearly 700 companies, large and listed as well as small and medium enterprises, received feedback from Corporate Malaysia on how they were coping with current business challenges and areas where they sought assistance.

The online survey found that only 20% of the respondents have adequate technology and systems infrastructure in place to operate in the current crisis; while over a third of the companies are strategising to expand or upgrade their technology capabilities or take on digital transformation.

Clearly, much more effort is needed from businesses to step up and adopt technology-enabled processes and systems in preparation for a more digital-enabled environment in the new normal. In this vein, Covid19 has emerged as a game-changer for digital transformation. Where previous initiatives and programmes to go digital were met with lukewarm response, particularly from the SMES, Covid-19 has spurred Malaysian businesses to accelerate their digital transformation.

In the age of digital transformation, success is not solely reserved for leading companies. Businesses can consider adopting six core digital transformation habits to succeed and thrive in the new normal (see chart).

Focus on customers first and foremost

A key element driving business success is the ability to incorporate good customer service as part of business fundamentals. With rapid technological advancements, customers are presented with wider choices of products and services from various brands and companies, which intensify the already competitive market landscape. Hence, it is imperative for businesses to continuously meet customers’ changing demands and uphold the gold standard in customer service.

Accelerate artificial intelligence (AI) to drive growth

With digital transformation, adoption of new technology is a core consideration among businesses that are constantly looking for ways to create more holistic customer experiences.

Essentially, businesses undergoing transformation will need to invest in technology and implement new systems that can simplify operational processes and increase productivity. The use of new technology such as AI will allow businesses to develop new business models to keep abreast with customers’ current expectations while moving towards predicting the market’s next move.

Drive innovation through ecosystems and partnerships

The ever-changing customer demands are prompting businesses that currently work in silos to re-model their business.

By establishing synergistic partnerships and/or creating a resilient ecosystem, businesses will have the ability to become nimbler and more innovative in bridging existing business boundaries to produce better outputs for customers. To quote Henry Ford, “Coming together is a beginning, keeping together is progress, working together is success.”

Nurture talent with new incentives and strategies

Talent shortages and skill gaps hinder the acceleration of digital transformation efforts. Therefore, it is vital to ensure that everyone within the organisation is aligned and on board the same transformation train.

Businesses should invest in developing platforms to promote continuous learning and foster a culture of self-improvement among employees.

Surveys on training assessments can also help companies to understand their employees and introduce more customised training programmes to better equip them with new skills that will help prepare them for the next wave of digital evolution.

Activate governance plans for emerging technology

In the current business climate, more businesses are considering ethical governance and developing their own frameworks as the success of a company relies heavily on the trust of its customers.

To put it simply, if customers do not trust your business or technology, it is highly unlikely that they will choose to adopt it.

A good framework should outline the principles and best practices of the technology, and this embeds “trust” into the customer’s mindset.

Power innovation by leveraging data and being agile

Data is a vital asset of a company. By leveraging data, businesses can analyse their customers’ preferences and create new growth opportunities to pave ways for the creation of innovative business models. Data analytics can expand a company’s agility to launch new products and services, supported by new technology, and extend customer reach, thereby enhancing the overall customer experience.

Seamless data integration among organisations, customers and suppliers can also increase the business’ ability to expedite business decision-making processes and improve both operational and financial performance, as well as increase efficiency.

Companies that adopt the six core habits of digital transformation are most likely to succeed and thrive in the new normal.

Shankar Kanabiran is the financial services consulting leader in Ernst & Young Advisory Services Sdn Bhd. The views reflected above are the views of the author and do not necessarily reflect the views of the global EY organisation or its member firms.