free essays
Free essays

Digital Entrepreneurship in Malaysia


DigitalEntrepreneurship in Malaysia

Digitalprocesses in e-commerce are intricate and complex in. A simpletransition may involve trading partners spread all over the world.These complex processes may trigger action in other businessprocesses. These complex processes and interdependencies of businessare often handled in business systems that knit different companiestogether as long as they embrace an electronic environment ofcarrying out transactions. Digital commerce appreciates a businesscycle that incorporates electronic transactions in all facets. Theapplication of digital solutions in e-commerce occurs in coreprocesses that constitute the entire production cycle. There arevarious processes that can be affected through digital applicationsin business. They include managing multi-channel businesses such asB2B, B2C, and B2E businesses where the business uses digitaltechnology to effect all business transactions, digital marketing,forming collaborations with other market players, mobility ofbusiness, communication and enhancing customer experience throughbusiness products.

Multi-channelingand digital business

Applicationof digital business for B2B, B2C, and B2E businesses

Businessesadopt digital solutions to reduce the costs of doing business. B2Bbusinesses have a smaller market that B2C and B2E businesses. Digitalapplications do not differ too much apart from the target audience.It is, however, expected that B2C businesses are more aggressivebecause they deal with final consumers in the market. Digitalsolutions involve processes such as internet marketing, data storageand processing software, branding and information communicationstechnology. For example, online advertising is an example of digitalsolution that replaces complements and later replaces traditionaladvertising methods. B2B businesses are continuously fining it easierto foster their brands through digital solutions. Some of the onlineadvertising modes are banner ads, paid search advertising, andcookie-based.


Digitalmarketing has emerged through e-marketing techniques. In e-marketing,all the traditional marketing principles are followed, but throughelectronic media. Specifically, the internet is a platform forexecuting digital marketing (Pride, Hughes &amp Kapoor 2005, p.40).It involves direct response and indirect response marketing featuresthat apply different technological applications to connect a businessto another and to its customers. It has been enhanced by thedevelopments in information communications, technology throughinnovations in personal computers, smart phones, Ipads, and manyother gadgets that have improved access to the internet. Digitalmarketing techniques have high returns on investments thantraditional marketing methods. It enables businesses to reachmillions of people in a short span of time. It redefines theinteraction of business entities and customers.


Digitalcommunications networks have access points that enable businessprocesses to be moved. Each business access point has a particulararea of reach that a device must enter to connect to the network inthe area of coverage. Digital commerce has transformed marketmobility form physical movement of merchandise to movement ofproducts and services through access points in particular coveragearea. Mobility reduces the cost constraints associated withtraditional commerce. Digital mobility is facilitated by multipledistinct communication networks with varied access point densities.

Thesocial media has become one of the greatest used digital marketingtools in Malaysia. Most businesses rely on the social media inmarketing. Since most people are now utilizing the social media,most businesses are capable of reaching a vast number of peoplethrough the social media. From youths to the adults, it has nowbecome exceedingly easy to use the social media. For instance, whenit comes to the use of Twitter and Facebook, most people are now in aposition to use them due to the modern technology. In fact, it hasnow become easy to use the social media since the sites are nowaccessible through mobile phones. Businesses such as the AstroMalaysia Holdings are now using the social media in reaching outinformation to their customers. Through using the social media, AstroMalaysia Holdings has been in a position to sell its services to avast number of Malaysians. Most individuals have now adopted the useof the social media in getting information about this company. Thecompany used to publish magazines that provided new information orupdates concerning the company however, through the social media,the company has been capable of providing updates to mostindividuals, who have adopted the use of the social media. Due to theuse of the social media, the company has been capable of creatingvarious opportunities. The following paragraphs present opportunitiesthat the company has been capable of creating in the market.



Becauseof using the social media, Astro Malaysia Holdings has been capableof creating an opportunity for more revenues. The use of the socialmedia has made the company save marketing costs, which is critical inprofit maximization. The mitigated cost of operation makes thiscompany to increase its revenues. On the other hand, the company hasbeen capable of reaching a vast number of customers through thesocial media, which increases an opportunity for the company toincrease its revenues. Therefore, the social media has increased thecompany’s capacity to increase its revenues. In case the companyextends its services to other countries, it will have an opportunityof enhancing its revenues.


InMalaysia, the number of individuals using the social media hasincreased dramatically. This is because of the availability ofdigital devices that aid them in logging into the social mediawebsites. For instance, mobile phones that can be used in easilyaccessing the social media sites can be easily acquired due to theiraffordable cost. Since most individuals in Malaysia are capable ofaccessing the social media sites, the company has an opportunity ofincreasing its customer base.


Becauseof using the social media in doing its marketing, the company has anopportunity of realizing enhanced growth in the market. This isbecause of the increase in customer base and realization of highrevenues accompanied by the reduced cost of marketing. As the companygrows, there is an opportunity of increasing its market share.


Digitalsolutions in business facilitate collaboration of business brands tobuild successful brands. This is done through technology, leveragingand innovations. Different devices and software have developed, andthe mobility of these technologies has facilitated real timecommunication between business entities. Collaboration is donethrough processes such as video conferencing, Telepresence,messaging, telephony, mobility, and document sharing among firms.Collaboration creates business models that connect people to work atany place through technological devices that have made communicationeasy. For this reason, business enterprises are redesigning theirmodels that facilitate tools of collaboration and software in moreeffective ways that make it possible for them to share businessprocesses for mutual benefits. Therefore, Astro Malaysia Holdingswill have an opportunity to collaborate with other entities in themarket through using the social media.


Digitalcommunication applies information communications technology inaccessing, collecting and dissemination of information. Theresponsibilities of business managers and should be appropriate toachieve the benefits of ICT in business. Today, enterprises have toplan the ICT infrastructure for the maximum anticipated load and theincremental increases and reductions in capacity. Others areoutsourcing ICT services from more experienced and large providers.This is because of the cost of acquiring and adopting ICT models ishigher than buying the services from specialized firms. The cost ofadopting and installing ICT infrastructure from an external provideris added to another non-ICT cost of the product. Astro MalaysiaHoldings will have an opportunity of fostering communication withinand beyond the company through the social media. For instance, thecompany can utilize the social media in encouraging feedbacks fromcustomers.

Digitalcommerce has resulted in improved collaboration across the entiresupply chain of organizations with a positive impact on a variety ofbusiness processes in the same supply chain. Costs reduce, and theprofitability of the organization goes up when it adopts digitalmeans of completing business transactions (Barratt &amp Davis 2009,p. 130). Cross-enterprise collaboration has implications in thefollowing product and business process applications. On the otherhand, collaboration facilitates the integration of suppliers into anew product design process that significantly reduces the length of aproduct`s design cycle. It increases the quality of a new productwhile reducing the manufacturing cost of the product. It has enabledcollaborating business to meet customer preferences.

Sharingforecast information and other supportive data between businesspartners help in building a more accurate forecast of the businessenvironment. Digital processes have made this a lot easier thanbefore (Colby 2004, p. 6). Information from both collaboratingparties will facilitate comparisons and reconciliations to get a morerealistic forecast of the environment. For example, a retailer whohas a better understanding of consumer trends, shares the informationwith manufacturers before any planned sales promotion is initiated.The manufacturer, on the other hand, share information about theproduct about aggregate demand obtained from other retailers to acollaborating retailer hence enabling them to detect changes inconsumption patterns. The internet has facilitated thesecollaborative processes to happen in good time between businesspartners through emails, teleconferencing, and Telepresence(Desharnais&ampRadhakrishnan 2002, p. 280). Reactions are,therefore, real time hence, reducing the cost of arbitrage.

Collaborationprovides a linkage between manufacturers and their supply chainpartners. Digital processes have widened the scope of makingproduction processes more efficient and more profitable. In shortperiod partners can provide feedback on the errors they notice onproducts and manufacturers correct immediately. Losses resulting fromproduction inefficiencies have drastically reduced. Digital businessavails timely information to manufacturers and their partners acrossthe supply chain. Resources are managed more efficiently to avoid theaccumulation of idle resources. Firms in this digital age havedesigned collaborative management systems that have made businessenterprises more related and linked than ever before.

Enterprisescan effectively and on a timely basis share sales, inventoryinformation, demand forecast, and procurement schedules with theirsuppliers (Chaffey 2009, p.67). Suppliers have increased theirability to plan for operations better to meet future demand.Manufacturers also get their materials in good time. Managers ofdigitally-compliant organization benefit more on the collaborationsthan those who have less digital investments. Information sharing onprocurement issues should be real time, so that effective measurescan be put in place before any damage is done.

Problemsin interface activities between collaborating organizations hasbecome a significant part of every business. Collaboration hasprompted organizations to look beyond their internal performancemeasurement systems to identify interface activities. Interfaceactivities are those activities that are cut across multiplecompanies. Interface activities may not be visible in organizationsinternal performance measurement systems hence concealing vitalinformation that may be needed in strategic management.

Impactand implications of digital trends in marketing

Socialmedia have gradually taken over as the main e-marketing tool inbusiness. Even mainstream marketing tools such as television andprint media have made their interactions with the public morepersonalized in the dynamic digital environment. Facebook pages,twitter accounts and email accounts are advertising sites (Martin2000 April 1, p. 8). This is happening due to three key reasons: Theneed to transmit information faster to the target population, theneed to reach a wide geographical area, and the need to participatein data analysis about the effectiveness of marketing tools.

Digitalmarketing has had a great impact on the role of social media inadvertising. Marketing is becoming personalized where people can getinformation about different products through social mediainteractions with firms. Some organizations are engaging in directmail advertising where they send information about product featuredirectly to prospective customers or simply feature them on thesearch engines such as Google ad Yahoo. Firms are required tocustomize their digital technologies. Firms are increasinglydifferentiating their customers based on the online channels they useto visit the firm`s website while considering their online browsingbehavior (Rajput 2000, p. 89). Some customers use smart phones, otheruse PCs, MacBooks, and tablets. Organizations collected data aboutconsumer browsing behavior and use the predictive analytics tounderstand customer preferences. Once they ascertain that theycustomize their services and products in such a manner that isdesirable for their customers. Technology based on predictiveanalytics helps organizations to design offers such as discounts forfirst time users of the product.

Organizationaland managerial implications of competing in a global networkedeconomy

Rapiddevelopment of information technology is capable of providing withthe tools to manage their affairs efficiently and compete on thenational stage. Organizations are linked through a network ofbusiness processes that affects all cross-border investors Al-Ani2009, p. 46). Firms should be involved in designing a globalinformation system that can enable firms to gather, manipulate anduse information to make decisions that can improve their competencein the global economy (Hsieh &amp Tseng 2004, p. 163). Organizationshave a huge challenge of globalizing their operations. They can dothis by first identifying critical issues in information technology,consolidating them, and resolving them to support the organizationtowards globalization (Cohan 2000, p. 5). The implication now is todevelop a framework that can help the organization meet challengesthat come with globalization.

Strategiesof Exploiting Opportunities

Identifyand acquire global information Technology infrastructure

Theseare the system hardware needed to connect the entity to the rest ofthe globe. These are equipment and facilities that support globalinformation systems. An organization operating in the digital agewhere organizations and people are widely interconnected through anetwork of information systems needs to elevate its long terminvestments to acquire these global infrastructures (Gupta 2006,p.81). Global IT infrastructure is classified into four categoriesthat any globally competing firm must adopt:

Computerhardware- Organizations that want to compete globally in this digitalage must acquire this basic computer hardware. Computer hardwareincludes workstations with desktop computers, mainframes, servers,digital cameras, printers, and scanners. Network facilities- networkfacilities includes materials such as gateways, modems, cables,routers, hubs, bridges, converters, adaptors, concentrators,repeaters, switches, transceivers, and multiplexers.

Backup equipment- these are storage facilities such as tapes, discs, anduninterrupted power supply (UPS) devices.

MobileEquipment- These are notebooks, computers, personal digitalassistants, mobile phones, and wireless facilities.

Identifyand adopt global business applications

Theseare the systems software needed to connect the business to the restof the world. Global business applications are the instruments thatfacilitate business operations. They are business functions andsoftware applications in the global business environment. Themanagement of organizations has to ensure that the management andutilization of these applications are applied in the construction andoperation of global information systems. The organization has tocarry out system integration, maintain software applicationavailability, and apply the standards to manage and implement globalinformation systems.

Identifythe global telecommunications network

Itrefers to digital communication networks that will make it possiblefor an organization to collect data and use it to make criticaldecisions (E Commerce 2000, p. 45).

Improvingthe information systems to be more secure

Thisdeal with data and information of a global nature in terms ofsecurity. As more information gets into a globally connected networkand organization through cyberspace, the organization has to face anincreased number of security threats (Glover, Liddle&ampPrawitt2001, p.56). This means that management has to come up with asecurity strategy, especially in the transition process. A securitystrategy has important elements that the management should notoverlook. The elements are connection with the organization`ssecurity, business strategy, and authentication, privacy policy,authorization, recovery,administration

Connectionwith business strategy- the organization must come up with afiltering strategy that ensures that all the communication passesthrough its structures and business model. Organizations with aglobal organization structure should have a security plan thatincorporates all foreign business units and subsidiaries.

Aprivacy policy- security and privacy policies must be codified,shared and updated regularly. The policy should be specific withoutambiguities. Important items that may be included in theorganization`s security are data access, application access, networkaccess, software access, software, privacy, business resumptionplanning, systems design and development, and risk assessment (Mauro2000, p. 40).

Authentication- password systems should be used in a globally networked system.They should be efficiently developed and controlled to ensure thatapplications or systems owned by the organizations from been easilyaccessed by unauthorized persons (HYE 2009 December 27, p. 12). Afirewall is an important aspect any globally connected organizationshould consider when planning an authentication strategy for itsinformation systems.

Authorization-after users has been authenticated to access the information systemthey need to be monitored according to a predetermined authorizationpolicy. Access to networks, applications, and databases need to beprescribed (Laudon&ampTraver 2002, p.112). The user should be awareof the steps to take once they get into each site of the informationsystem.

Administration-This is the management of all security and privacy policies. Themanagement needs to ensure that the methods, tools, techniques, andprocesses follow the administrative procedures of the organization.

Theneed to install systems standards

Organizationsin a globally interconnected business environment must initiatesystems standards at three levels: at the project level,organizational level, and the industrial level.

Projectlevel standards- It mainly deals with the examination, design, anddevelopment of the new international information systems (Boone &ampKurtz 2011, p.51). In the design and analysis stage, businessfunctions are presented in models. The models should be standardizedto provide a convenient communication between development teams,users, and managers. The modeling technique should be unique andaccepted by most developers, businesses, and industrial users. Forinstance, the UML (Uniform Modeling Language) is an example of amodeling technique that meets the requirement of a globally networkedbusiness environment.

Organizationallevel- At this level the organization should align its standardsystems to reflect the needs of global information systems.

Industriallevel- The organization has to develop a standard system that allowsfor industry adjustments.

ProposedBusiness and Revenue Model

Illustrationof a business model

Oneof the models commonly involved in digital commerce is the Low-costBusiness model. The objective of adopting a low-cost business modelis to drive many customers at a low cost (Barratt &amp Davis 2009,p. 260). Revenue is hence earned through other auxiliary servicessuch as charges on bank cards, advertisements on stickers attached tothe seats, running a lottery, flight insurance services, sellingtravel tickets, extorting charges from those with excess luggage. Themodel configures business`s processes that drive costs to theirminimum. An example of organizations with low cost business models isthose who deal with buying oil futures.

Evaluatinga business model

Thereare five aspects that every business model must possess for it to beeffective: The gross margin model, the revenue model, the operatingmodel, the financing model and the working capital model.


Themodel involves laying down strategies that will maximize revenue.Product promotion techniques must utilize e-commerce toolseffectively (E-marketing masterclass by TV dragon 2008, p.67). Lowcost business models have high revenue models because they seek tokeep costs as low as possible. An organization`s business model musthave propositions about the value of the products, its positioning interms of marketability, effective message conveyance and market toproduct fit. If a business does not a clear revenue model as well asarticulate it to its prospective customers, it may not maximize ondigital marketing.


Lowpricing models keep low gross margins. They, therefore, do notallocate a high mark-up and keep the same pricing strategy. A firmmust have its own gross margin model that will determine its pricingstrategy. Low cost models such organizations dealing in oil futures


Operating models are unique for each business. Some cuts on costswhile others focusing on reducing revenues. All decisions in businessare based on the unique business model the business has.

Workingcapital model

Businessesthat run huge stocks of inventory have a high working capital. Thismeans that they must have much money in cash from to fill up theirstores with inventory. Every business has to bear in mind its workingcapital model.


Adam,N., &amp Yesha, Y. (2006). Strategic directions in electroniccommerce and digital libraries: towards a digital agora. ACMComputing Surveys,28(4),818-835.

Al-Ani,M. S. (2009). Next Generation Digital CommerceTechnologies.InternationalJournal of Interactive Mobile Technologies (iJIM),3(2),45-53.

Altinkemer,K., &amp Yilmaz, S. (2008). Diffusion Models for the DigitalWireless Industry in the U.S. and the World∗.Journalof Organizational Computing and Electronic Commerce,18(2),131-149.

Barratt,S., &amp Davis, S. (2009). Connected Commerce: The intersection ofe-commerce and e-communication.Journalof Direct, Data and Digital Marketing Practice,10(3),249-261.

Boone,L. E., &amp Kurtz, D. L. (2011).Contemporarybusiness(14th ed.). United Kingdom: John Wiley &amp Sons.

Burr,T. G. (2002, October 1). E-commerce: auditing the rage auditors atMorgan Stanley share a unique control framework developed during thedot-com craze..InternalAuditor,67,4-5.

Chaffey,D. (2009). E-businessand e-commerce management: strategy, implementation and practice(4th ed.). Harlow, England: FT Prentice Hall.

Cohan,P. S. (2000). E-profithigh payoff strategies for capturing the e-commerce edge.New York: AMACOM.

Colby,K. L. (2004, March 1). E-commerce: make your presence known: it`sexpensive to have a Web site, but today`s business shouldn`t bewithout one..AlaskaBusiness Monthly ,451,5-7.

Desharnais,P., Lu, J., &amp Radhakrishnan, T. (2002).Exploring agent support atthe user interface in e-commerce applications.InternationalJournal on Digital Libraries,3(4),284-290.

ECommerce.(2000). St. Paul, MN: Minnesota Continuing Legal Education.

E-COMMERCECRYSTALBALL.COM.(Brief Article). (2000, October 1). AgriMarketing,45,22-25.

E-marketingmasterclass by TV dragon.(Business). (2008, April 8). TheBirmingham Post ,pp. 56-58.

Glover,S. M., Liddle, S. W., &amp Prawitt, D. F. (2001).ebusiness: principles &amp strategies for accountants.Upper Saddle River, N.J.: Prentice Hall.

Gupta,V. P. (2006). E-Business.New Delhi: Researchco Book Center.

HYE,J. (2009, December 27). E-COMMERCE PUSHES FASHION TOWARDTECHNOLOGY.(e-commerce fashion sites). DailyNews Record,78,11-13.

Hsieh,M., &amp Tseng, D. (2004).Perceptual Digital Watermarking for ImageAuthentication in Electronic Commerce.ElectronicCommerce Research,4(1/2),157-170.

Laudon,K. C., &amp Traver, C. G. (2002).E-commerce:business, technology, society.Boston: Addison Wesley.

Martin,J. (2000, April 1). E-Commerce Arrives. TheMiddle East,212,7-9.

Mauro,G. (2000). E-commercetax policy and planning: domestic and international issues.New York: Conference Board.

McKie,S. (2001).E-businessbest practices leveraging technology for business advantage.New York: Wiley.

MontanaOffice of Tourism Awards E-Marketing Grants to Eight TourismOrganizations. (2014, February 13). StatesNews Service,pp. 11-12.

Pride,W. M., Hughes, R. J., &amp Kapoor, J. R. (2005).Business(8th ed.). Boston: Houghton Mifflin Co..

Rajput,W. E. (2000). E-Commercesystems architecture and applications.Boston, Mass.: Artech House.

Shaw,M. (2003).E-businessmanagement integration of Web technologies with business models.Boston: Kluwer Academic.

Walter,C. (2008, May 11). E-Commerce Waits for Customers..MultiChannelNews,36,19-20.