Multiplying innovation in the DX economy
JOHOR BAHRU — This southernmost city of Peninsular Malaysia has grown rapidly over the past decade. Fondly called JB by the locals, it is the capital of the Malaysian State of Johor and the gateway to the Iskandar special economic zone that the state government is positioning to be the next Singapore.
A 30-minute drive from Singapore’s northernmost town of Woodlands, Johor Bahru is easily accessible via a causeway linking the Lion City with the federal constitutional elective monarchy of Malaysia, which is composed of 13 states and three federal territories.
Two years ago, the state government unveiled a strategic growth plan anchored on the vision of Progressive Johor as Malaysia’s most dynamic economy after Kuala Lumpur. Its goal is to shift to a “digital government” driven by the most advanced technology to develop the region’s human and natural resources, recognizing that innovation must be the catalyst in Progressive Johor’s implementation.
Johor’s digital transformation (DX) strategy hinges on the four pillars of technological innovation: mobility, social, cloud, and analytics. Johor’s state government has formed a Digital Government Steering Committee to harness social media, mobile technology, cloud computing, and big data in carrying out its DX thrust.
This jibes with the IDC FutureScape 2018 predictions for Malaysia which focuses on the six innovation accelerators, namely: cognitive/artificial intelligence system; 3-D printing; next-gen security; augmented and virtual reality; Internet of Things; and robotics. The study predicts that by 2020, 28% of all enterprises in Malaysia will be in the process of implementing a DX strategy as the new core for competing in the digital economy.
Meanwhile, IDC Philippines’ research analysts made the following predictions for the country’s information and communication technology ( ICT) sector that will unfold starting 2018:
- Disruptive chief information officers ( CIOs) who are out- of the- box thinkers will set the tone for Philippine ICT development.
- By 2019, 20% of CIOs will shift their cybersecurity focus toward authentication and trust to better handle business risks.
- The rise of “digital natives” and their influence on enterprises will push novel workspace trends. - As DX shakes up the BPO industry’s market dynamics, those who align their DX plans with changes in the industry will gain competitive advantage.
- In other industries, DX will pave the way for retail and fintech services that integrate seamlessly into the daily lives of local communities through digital empowerment.
- The country will continue to witness creative, Philippine- centric payment and remittance innovations driven by the unbanked sector and remittances from OFWs.
- By 2021, the demands of the new borderless economy will push enterprises to reskill their manpower and upscale jobs through ICT.
- Personalization will be the new standard among Filipino enterprises utilizing digital- driven, customized approaches to customer intimacy and talent acceleration.
- Those who employ analytics-driven marketing will experience a commanding lead over competitors in terms of customer retention and profitability.
- The tipping point of the digital economy will be reached in the next 12 to 36 months when enterprises head to a higher level of DX adoption and the government barrels up its ICT initiatives.
Back here in Johor Bahru, the government believes that a shift in economic development is needed to realize the Progressive Johor vision and democratize the state’s economy in which every district and community would see its economic potential grow based on identified niches. This will be combined with accountable governance to ensure that responsibility becomes part of their culture in measuring performance when enforcing policies.
If more Filipino government officials adopt this concept of leadership performance, we might just be able to compete with Johor’s progressive economy or even surpass it.