The State of Malaysia's Digital Transformation by Dynatrace

Date : 19-Aug-2019
Location: Asia Pacific

Key Takeaways:
  • According to findings of a new IDC and Dynatrace report – The Digital Transformation Blueprint: Software-Defined Enterprises in Asia Pacific, Malaysian organisations are ahead in the race to digital transformation.
  • 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.
  • To lead in the digital economy, organisations must become a digital native enterprise by overcoming five digital deadlocksoutdated KPIs, silos of transformation and innovation, having limited expertise and poor tactical plans.
  • There is a growing digital divide occurring within every country in the Asia Pacific region between organisations that are digitally progressing (38%) and those that are digitally distraught (62%) and struggling with these deadlocks.
Key findings
  • From the 100 enterprise-level organisations surveyed in Malaysia, a majority of them are prioritizing customer (69%) and operational excellence (62%) 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% of Malaysian organisations have developed an external facing digital platform –below the average of 34% in APJ
    • These organisations are now expanding their platforms mainly through multiservice cloud platforms (72%), customer service (CX) applications (69%) and API management (66%)
    • 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% of Malaysian organisations are still running silos of innovation
  • Close to half (45%) of Malaysian organisations surveyed had an integrated enterprise-wide digital transformation strategy compared to 27% in APJ, despite having 56% of Malaysian organisations introduce digital KPIs (compared to only 54% in APJ).

  • Rafi Katanasho, Chief Technology Officer at Dynatrace Asia Pacific quoted:
    “Many organizations are not yet fully committed to digital transformation and therefore make short-term investment decisions. These organizations 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.”

Editor's comments:
  • It is encouraging to see that organizations are adopting the trend of internal-facing automation in this era of A.I which will contribute to employees' work-balance lifestyle; notwithstanding that efforts put onto external-facing digital transformation initiatives of customer service and sales engagement are expected - as always.
  • Perhaps it is made possible by the reinvestment of the money as a result of costs saving from previous digital transformation initiatives.
  • Organizations are also more receptive to adopt cloud based best practice solutions that come with integration points than to custom build solutions from the scratch.
  • Interesting to take note of two new trends of digitally progressing and digitally distraught.