This article first appeared in The Edge Malaysia Weekly on October 29, 2018 - November 4, 2018

Small and medium enterprises (SMEs) should take basteps to digitise their businesses instead of being overwhelmed the idea of the Internet of Things, artificial intelligence and machine learning, says Praveen Rajan, chief digital officer at Digi Telecommunications Sdn Bhd.

“It is not only SMEs that should do this. Even big companies such as Digi take basteps and do things through trial and error,” he points out.

Praveen, who spoke on “Digital Transformation: A possibility for everyone”, shared some of the things Digi did in its own digitisation journey based on the market insights it has gained.

For instance, when it found that 39% of its 11.8 million users use WeChat to communicate, it came up with a WeChat support channel to engage its customers for marketing purposes and to provide them with support services.

Its database also showed that more than 70% of Digi subscribers use Android phones, so it enabled agents and vendors to sell the Digi prepaid card in a multitude of venues, including petrol stations and mom-and-pop shops, to allow for greater convenience. This is because the company discovered that Android users buy prepaid cards every three to five days when they shop for groceries or refuel their cars.

“They will buy bread and a prepaid card from our vendors. Alternatively, they will go to a petrol station, fill their tanks and buy a card. We have 15,000 touch points throughout the country,” says Praveen.

Digi also discovered that 77% of its subscribers access the internet and shop on their phones. So, it has been promoting its brands and products through e-commerce platforms such as Lazada and Shopee.

“These are some of the small steps we have taken to digitise our businesses and be more cost efficient. SMEs can do the same.

“For instance, they can engage e-commerce platforms to sell their products online like what we have done. I don’t think they have to pay commission like before to sell things online as the e-commerce market is getting very competitive. It is the perfect time for SMEs to do so. You don’t need to spend RM1 million on it,” says Praveen.

He adds that SMEs should form more partnerships and utilise third-party platforms to speed up their digitisation process. They should also leverage other people’s experience instead of starting from scratch, which could cause them to spend money in the wrong places.

“Don’t over-customise everything. You would hear from other companies that some things work for them and some don’t. Surely, you can learn from them and replicate. doing this, you can save a lot of money,” he points out.

On top of this, Digi, which is part of the Telenor Group, is conducting 5G network trials in Norway and preparing to bring the technology to Malaysia when the time is right, Praveen reveals.

The 5G network technology is known as the next generation of internet speed and is expected to be 30 to 50 times faster than 4G LTE.

“We are learning from them and will replicate it in Malaysia soon,” says Praveen.

However, the implementation of the 5G network depends on various factors, including the necessary infrastructure in a country and the availability of relevant chips and equipment. “It’s not just about telcos rolling out the network. It’s also about whether the infrastructure and devices are ready. All these have to come together,” he stresses.

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