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Improved customer experience and digital reach rank among top benefits for companies in Malaysia that are undergoing digital transformation
MALAYSIA, November 10, 2016 – CA Technologies (NASDAQ: CA) today announced findings of a new global study detailing the significant impact digital transformation is having on enterprises in Malaysia. The survey - Keeping Score: Why Digital Transformation Matters – demonstrates the strong connection between business performance and the technologies and practices that underpin digital transformation.
The survey introduced the Digital Transformation Business Impact Scorecard (BIS), which assessed the success of enterprises’ digital transformation initiatives. The BIS ranked countries and industries globally on a 100-point scale based on 14 key performance indicators (KPIs), across the categories of business agility, business growth, customer focus and operational efficiency.
With a score of 64, the impact driven from digital initiatives in Malaysia is higher than the Asia Pacific & Japan (APJ) score of 56 and global score of 53. In terms of ranking in Southeast Asia, Malaysia comes in third, just behind Indonesia (2nd) and Thailand (1st). This ability to transform digitally is reflected in 83 percent of businesses in Malaysia perceiving themselves as significantly ahead of competitors due to digital investments. In addition, 48 percent of them see themselves as disrupting their industry, because of the advanced digital initiatives they have adopted.
The research also suggests that Malaysia’s enterprises are responding to the pressures to meet their customers’ increasing expectations, and that their digital transformation efforts are having a positive effect on customer engagements. 78 percent of enterprises in Malaysia have reported moderate to significant improvements in customer experience due to digital transformation, five percentage points higher than the APJ average of 73 percent. Customer satisfaction and customer retention have also improved by 46 percent and 45 percent respectively.
Three-quarters (75 percent) of the respondents have also seen improvements in digital reach. In addition, the payoffs are greater in the categories of business growth and operational efficiency, where Malaysia enterprises’ improvement pre and post-digital transformation were above the APJ average.
Respondents in Malaysia also reported the following benefits as a result of digital transformation:
• 42 percentage growth in new business revenue
• 47 percentage improvement in employee productivity
• 45 percentage improvement in quality of development process/applications (number of defects)
• 43 percentage improvement in operation or process efficiency
• 39 percentage improvement in tightening up IT-related costs
“The application economy has increased consumer expectations. It is promising to note that Malaysian enterprises are placing greater focus on digital initiatives,” said Nick Lim, vice president, ASEAN and Greater China, CA Technologies. “Companies must incorporate technology – specifically software, into their operations and embrace digital transformation. The sustained delivery of superior user experiences via software will ensure that their businesses continue to remain at the forefront of their respective industries in this digital era.”
From a sector perspective in the APJ region, the three top-performing sectors on the BIS are telecoms (45), public sector (45), and banking & financial services (41) – out of a total possible score of 100. Tied in first place, the performance of the public sector reaffirms the strong emphasis governments in the region are placing on digital transformation to provide more jobs and deliver better services to citizens. The performance of the telecoms sector stands to reason as it is a digital industry, and faces huge challenges to its core businesses from a new breed of pure digital competitors. The banking & financial services industry is a sector that has always been a technologically advanced business, which explains the high ranking.
About the Research
Conducted by Coleman Parkes in May-June, 2016, the survey included 1,770 senior business and IT executives from large enterprises, across 21 markets and 10 industry sectors. A total of 799 respondents were from APJ; this covered Australia, China, Hong Kong, India, Japan, Korea, Indonesia, Malaysia, Singapore and Thailand.
About Coleman Parkes Research
Coleman Parkes Research Ltd, formed in 2000, provides action-focused marketing research on a global scale. The company offers a full research and consultancy service across all markets, while specializing in business-to-business research with a focus on IT, technology and communications research. For more information, please visit www.coleman-parkes.co.uk.