Malaysian companies are in the early stages of digital transformation, with many not realizing financial benefits from digital strategies. While the Malaysian government aims to grow the digital economy to 20% of GDP by 2020, an index of major Malaysian firms found they perform best in planning digitally but lack digital integration across key business areas like manufacturing, selling, and management. To fully harness digital's potential, companies must make it central to their business strategy, drive fast innovation, create relevant customer experiences, establish flexible structures, and leverage partnerships.

1. MALAYSIA’S
DIGITAL
PERFORMANCE

2. However, most Malaysian companies remain in the
early stages of their digital transformation journeys.
Many have yet to realise improved financial performance
through the execution of digital strategies.
DIGITAL
OPPORTUNITIES
ABOUND
Digital is accelerating growth in the
region - ASEAN’s digital economy
projected to add an estimated USD1 trillion
to the region’s GDP over the next 10 years.
Malaysian government has set a goal
of growing its digital economy to
20 per cent of national GDP by 2020.
As part of ASEAN – the world’s third largest market
by population – Malaysian companies can benefit
from looking beyond national borders for new growth
opportunities made possible by digital innovation.

3. MEASURING
THEDIGITAL
PERFORMANCE
OFMALAYSIAN
COMPANIESTo gauge the current level of digital transformation
across corporate Malaysia, Accenture conducted
an evaluation of top Malaysian companies across
multiple industries, using Accenture’s
Digital Performance Index (DPI).
This index measures a company’s digital performance
across four key business dimensions:
PLANNING
MANUFACTURING
SELLING
MANAGEMENT

4. ACCENTURE’S DIGITAL
PERFORMANCE INDEX
Insights into Malaysian companies gathered
from analysing 42 business activities,
117 behavioural metrics, covering 4 key
business dimensions, each broken down
into 3 action points.
PLAN
SEE
PLAN
ACT
MAKE
DESIGN
BUILD
RUN
SELL
ENGAGE
SELL
SERVE
DIGITAL
STRATEGY
DIGITAL PRODUCTION
AND DELIVERY
DIGITAL CUSTOMER
EXPERIENCE
DIGITAL
CORPORATE
CULTURE AND
OPERATIONS
MANAGE
ASSESS
IMPROVE
RENEW

5. SCOPE
OF THE
MALAYSIA
DIGITAL
PERFORMANCE
INDEX
28 leading
companies
in more than
8 industries
INSURANCE
UTILITIESNATURAL
RESOURCES
MEDIACOMMUNICATIONS
ENERGY
PUBLIC
TRANSPORT
BANKING
OTHERS

6. Make
Plan
Sell
Manage
Average DPI Score of Malaysian firms (Scores between: 1-4)
See
Avg
1.9Plan
Act
Design
Build
Run
Engage
Sell
Serve
Assess
Improve
Renew
Malaysia 1.7 United States 2.5
Avg
1.7
Avg
1.7
Avg
1.4
KEY
FINDINGSThough Malaysian companies
understand importance of Digital
for their growth (‘see’), it is yet to
be translated into actions across
the four core business areas

7. HIGHLIGHTS
OF THE
MALAYSIA
DIGITAL
PERFORMANCE
INDEX
44%
include digital in their
growth strategy
52%
have launched new
digital products
37%
sell via configured
mobile channels
57%
use analytics for
internal performance
44%
have appointed digital
leadership
52%
collect information
via social media
30%
provide digital
skills training
4%
Just use M2M in their
supply chain
26%
haveinitiated
digitalpartnerships
11%
usedigitalintheir
manufacturingprocesses
11%
Onlyreviewdigital
effectiveness
15%
onlyprovide
deliveryservices
viadigitalchannels
And 44% have digitalized
current products
But only 26% offer mobile
payment options
But only 11% use analytics to
evaluate employee competence
19% use digital for
real time inventory
management
But none have gone
beyond the pilot phase
But only 19% have a CDO
whose role is not combined
with CTO/CIO etc.
And only 11% use
analytics to manage
their supply network
But only 37% provide
real-time digital
communication
But only 15% break silos
with initiatives to adapt
to the digital agenda
Digital Production
and Delivery
Digital Customer
Experience
Digital Corporate
Culture and Operations
Digital Strategy
MAKEPLAN SELL MANAGE
But only 7% have a
dedicated budget for
digital programmes

8. HARNESSING
THE FULL
POTENTIAL
OF DIGITAL
Companies that achieve
high scores across all four
business dimensions are
considered Digital Leaders.
Based on the World Economic Forum’s
Digital Transformation of Industries research,
thosethat understand the value and importance
of digital transformation are potentially
26 per cent more profitable, contingent
on their ability to successfully transform
the existing organisation.
What can Malaysian companies do to become Digital Leaders -
ensure their investments in digital technologies enable them
to expand and increase financial returns?

9. FIVE IMPERATIVES
FOR MALAYSIAN
COMPANIES
Accenture has identified
five imperatives to accelerate
the journey towards becoming
A Digital Leader
Put digital at the core
of your business strategy
Digital Leaders understand that their digital and
company strategies are one and the same.
Digital Leaders leverage digital channels to create
unique interactive experiences designed
to grab and retain their customers’ attention.
Digital Leaders ensure that digital transformations
are treated just like any other business-driven
transformation – with the right structure, skills and
performance measures in place.
Drive fast,
iterative innovation
Create hyper-relevant
experiences (for the customer)
Create flexible structures
that cut across silos
Leverage the ecosystem
What differentiates Digital Leaders is not that they
drive innovation, but rather the way in which they
do so: intelligently, quickly, and with permission to fail.
Digital Leaders enter into new and often
unconventional partnerships to enhance
their digital capabilities when buildingin-house
capabilities may not be feasible.
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2
3
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5

10. THE NEED TO
MOVE FASTER
THAN EVER