Tapping into digitalisation potentials for asnaf Muslimpreneurs in time of Covid-19

By definition, digitalisation is the application of internet technologies to transform a business model to render distinct divisions of customers and profits, where value-added possibilities are brought into play. In the current situation, asnaf Muslimpreneurs should embrace digitalisation through customisation and assimilation for secured business survival sourced from the continuity of demand and profit. We refer to the asnafs who are running businesses as “asnaf Muslimpreneurs”.

The present write-up examines these questions. Q#1 – What are the benefits of the asnaf Muslimpreneurs’ digitalisation? Q#2 – Are there any issues related to the offered products through digitalisation?

Today, the internet is a new shaped of basic need, attending by everyone for improved well-being sourced from availability and accessibility (2As). Of course, asnaf Muslimpreneurs are also without exceptions to deliberate its business potentials.

The benefits earned are many as detailed as follows but are not limited to.

Benefit #1 – Typically, customers are existed as “users” per se and it’s always like that in satisfying their needs through a walk-in approach. Asnaf Muslimpreneurs are wellversed on this thought and believed customers are always right by attitude. During the pandemic, the demand is diminishing out of confined movement control. Digitalisation provides a new doorway for this flaw. Certainly, digitalisation transforms customers into participants. Now, “customers” and “asnaf Muslimpreneurs” are both participants – the former intend to access products available on the online shopping platforms to meet their both needs and wants. The latter sell their offered to bread a good reputation covering profit escalation and customer loyalty.

Benefit #2 – In the brick and mortar world, one may find some unintended unethical practices by a few traders when selling their products to customers. One of the manifestations occurs when the price is deceived for different customers drawn from likeliness and physical appearance that matter for evildoers. In response to this concern, digitalisation allows asnaf Muslimpreneurs to have a harmonised pricing approach practice, where the same pricing system is extended to all customers without any sort of discrimination for recovered price fairness for repeat and new customers.

Benefit #3 – Customers are vast if digitalisation is a business channel. Digitalisation allows asnaf Muslimpreneurs to gain competitive multiple customers with different acquisition motives. Internet leads to the customers’ identification with surprises, a contributing factor in generating multiple sources of income variations from different customers for the different magnitude of purchases. If formal ethical practices are established, customers will become loyal and revolve around the purchase. Words of wisdom if any are shared online to breed a new customer for a new customer base and good public image.

Benefit #4 – Digitalisation in asnafs’ businesses is also a key to leverage on unlimited business hours, where the continuity of Internet connections is materialised. By locating businesses on the Internet either social media platforms or online shopping platforms, customers can communicate with the traders without any sort of time constraint and the purchase if any can be established at any point of time, at any place. It is doable to offer grander convenience to customers and their prospective peers through this channel. On the same note, asnaf Muslimpreneurs can earn a continuous order from their customers – regardless of the geographical origins and time horizons. This also means a continuous profit and hence the business.

Benefit #5 – Play in the big leagues, the digitalisation of business besides offers a low cost of entry for customers over a relatively short time – offering diversification to asnaf Muslimpreneurs via the considered a solo connection that instantaneously transports the full range of Internet services for improved business accessibility, product availability and publicity. With consistency with culture in the offered products, customers attracted are increasing – leading to a growing volume of products sold sourced from new and repeat order.

However, along with the obvious benefits that asnaf Muslimpreneurs can earn from digitalisation, this development is not free from any issues proliferated from its use. These include but are not confined to.

Issue #1 – The transaction may viable when it deals with certain finish products like handcrafted products, cosmetics, cookies etc. Some products like wet foods are typically impossible to be sold online except if the geographical space is confined to certain narrowed vicinity. This is a challenge for asnafs who run a business related to wet foods and for that being innovative is a strategic option that they can think of in the future for better business, at least.

Issue #2 – Digitalisation of businesses can lead to the growing transactional risks related to asnafs as the owner of the business and their customers. As these dealings transverse an open, unsafe public network, the likelihood of security breaches is very real. These include unauthorised access, disclosure of personal information and abandonment of transactions. It might be worthy for asnafs earn the updated knowledge and skill on this thought through sponsored coaching and supervision.

Issue #3 –Asnaf Muslimpreneurs who are using a third party delivery service should mindful about how the orders are stored until they are picked up by a rider to deliver to the right customer. Otherwise, delivery risk occurs that allows a second risk comes namely reputation risk. When the reputation is damaged, trust from a customer is difficult to restore. Thus, the delivery services should be attended with customised wisdom.

Going forward, digitalisation permits an enterprise displayed out by an asnaf to “appear” as enormous and popular as the most comprehensive one through consistency culture. A business that is successful in the brick and mortar world is not necessarily successful on the Internet but asnaf Muslimpreneurs can make a difference through the deployment of the interplay of tasawwur and dedicated efforts in their businesses to breed sustainability and thus success, at least.

*The author is an Associate Professor at the Labuan Faculty of International Finance, Universiti Malaysia Sabah, Labuan International Campus. He has a PhD from the International Islamic University Malaysia (IIUM) in Islamic Banking and Finance (PG310163). He can be contacted at hanudin@ums.edu. my