Celebrating Success: Pos Malaysia Redefining Business with Digital Strategies and Partnerships

Mar 25, 2021
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“The rapid adoption of technology has brought about new challenges to our business. Pos Malaysia knew it must adapt to digitalisation to remain relevant in the industry and to support the changing trend in customer behaviour, from physically going to retail stores to buying goods online,” said Group Chief Executive Officer, Syed Md Najib.

Pos Malaysia Group (“the Group”) started as a traditional postal service and has since expanded to provide financial services and supply chain solutions.  As reinvention became necessary, Pos Malaysia embarked on a digital transformation plan to redefine its business model.

“The rapid adoption of technology has brought about new challenges to our business. Pos Malaysia knew it must adapt to digitalisation to remain relevant in the industry and to support the changing trend in customer behaviour, from physically going to retail stores to buying goods online,” said Group Chief Executive Officer, Syed Md Najib.

Pos Malaysia GCEO, Syed Md Najib.

When faced with digital disruption, Pos Malaysia encountered difficulties due to its outdated systems, traditional business model, and a weakening outlook for selected business segments. Legacy systems posed a challenge for the Group when competing with digital-native entrants. Amidst this environment, the company has engaged in notable initiatives to provide consumers with fast and secure delivery, as well as a seamless customer experience. This transformation is crucial for the company to build a sustainable business, one that is relevant in the digital era.

Simplifying the customer journey through digitalisation

In 2019, Pos Malaysia committed to a new mission – to build a truly customer-centric organisation. The Group set out a three-year modernisation and transformation plan to remain relevant, competitive and profitable.

A major transformation area was in the digitalisation of customer-facing functions. Recognising the growth of the digitally-driven consumer, Pos Malaysia revamped its website and enhanced its mobile application to improve customer experience. With over 1.3 million downloads of the mobile app, there was an average of 200,000 monthly users with app-related transactions from January to July 2020.

Handwritten consignment notes have been replaced by the e-consignment note which can be generated via the website or the mobile app. Customers can print the e-consignment note at Pos Laju outlets, kiosks and selected Pos Laju EziDrive-Thru. As of September 2020, there have been 1.5 million e-consignment notes generated – thus reducing errors and enhancing efficiency.

Pos Laju EziDriveThru

Pos Malaysia’s customers can track their parcel via the Track and Trace system that is available on Pos Malaysia’s website and mobile app. The system allows customers to monitor their parcels via the tracking number or by scanning the bar code. 

Pos Laju SendParcel, an online shipping platform, is also integrated into the mobile app and allows customers to post their parcels without having to leave their home or office. Customers only need to schedule for pick-up at their own convenience and Pos Laju will come to collect the parcels.  The platform has expanded its service by offering international deliveries to over 200 countries, connecting local SMEs and e-commerce businesses to the overseas market. As at the end of January 2021, over 7 million parcels have been shipped via SendParcel.

Additionally, the implementation of the AskPos chatbot and live chat channels gives customers a self-service option to resolve simple issues. Customers are met through real-time conversations and can obtain personalised help online. Since its inception, over 2.9 million conversations were initiated on AskPos, or about 40,000 to 60,000 customer conversations per week – reducing contact centre operation costs.

E-insurance service is Pos Malaysia’s most recent initiative in providing its customers a better service experience. With e-insurance, motor vehicle insurance renewal is made easy, convenient, and available at any time. Pos Malaysia is planning to add more insurance providers and more insurance products soon, to offer its customers multiple options to suit their requirements.

Moving forward, customers can look forward to more services in Pos Malaysia mobile app which include financing, wasiat, will, remittance and others.

Streamlining and securing processes with digitalisation

While the implementation of e-consignment notes has improved customer experience by reducing over-the-counter wait times and human errors, the self-service parcel lockers (i.e Pos Laju EziBox) has been added to give convenience for customers to collect and drop-off Pos Laju items at their own time.

Pos Malaysia’s customers also have an option to pay their utility bills via the Pos Automated Machines that is available at selected post office. Launched last year, customers can pay their utility bills via cashless methods, at their own convenience and reduces over-the-counter congestion.

Pos Malaysia is also giving solutions to their business customers through Pos Digicert, a subsidiary which is responsible for the creation of digital identities through the use of digital certificates. The Pos Digicert Digital Signing feature is another solution that incorporates digital signatures for the company’s BizClient Ivest server and digital certification services. The option safeguards organisations from data fraud, data tempering, and authenticates documents simultaneously, thus enhancing the trustworthiness of the documents in hand. Organisations can now move from a physical certification environment to one that is digital, validated and secure.

As part of Pos Malaysia’s transition into entering Industrial Revolution 4.0 (IR4.0), the company integrated Robotic Process Automation (RPA) into existing Standard Operating Procedures (SOP) for both front-end and back-end processes of our cargo operations at the Kuala Lumpur International Airport (KLIA).

Pos Aviation, a subsidiary of Pos Malaysia that handles in-flight catering and cargo has implemented Robotic Process Automation (RPA) to assist the cargo handling operations team. These robots act as a digital workforce to streamline operations and expedite key business activities thus ensuring efficiency. The human workforce can focus on more valuable work as the system automates repetitive mundane task and increase productivity that are compounded across thousands of transactions.

pos-aviation-Inflight-catering

Pos Malaysia is also improving its procurement process efficiency as it switches from manual processing to an online procurement system. The end-to-end procurement system, from purchase requests, orders to payments, have benefited from the upgrade. Advantages include an overview of the entire process, reduced leakages, improved documentation storage and better budget monitoring.

Promising speed and digital trust with cloud CDN technology

The benchmark for successful digital transformation lies in the ability to provide swift and reliable service. Digital native entrants, in particular, could press on these attributes with its integrated and flexible platforms compared to larger organisations with multiple, siloed systems. As such, Pos Malaysia had a daunting task in hand – to transform its IT infrastructure and mitigate the disadvantages.

Pos Malaysia integrated cloud CDNs (Content Delivery Networks) to provide swifter service delivery for its websites and applications. These technologies reduce information travel distance and server workloads, resulting in lower latency and faster content delivery. The existing Wide Area Network (WAN) services also support cloud CDNs, providing added protection in the information transformation process.

Moreover, to ensure stability and scalability of its software solutions, the Group has introduced Performance Testing Services in 2019. This step helps Pos Malaysia evaluate its system’s performance under normal and anticipated peak conditions. Consequently, it ensures that end-users do not encounter any performance issues when using the applications. Pos Malaysia customers can now enjoy fast, stable, and secure experiences on digital platforms.

Creating a secure infrastructure enforces digital trust in customers, especially when it concerns sensitive personal customer information. A malware attack in 2019 made the Group take a proactive stance in cybersecurity defence. Pos Malaysia has complemented its cloud adoption with intelligent threat detection systems. These systems safeguard end-users and networks from malware and confidential data breach attacks. The digital transformation plan remains secure due to this vital step, and the company now boasts zero complaints from data breaches.

Hitting ideal processing capacity with automation

Pos Malaysia continues to ensure that it is capable to handle the surge in demand driven by e-commerce growth. As such, the Group continues its pursuit in optimising operational efficiency. With parcel volume reaching 800,000 a day during peak seasons, Pos Malaysia commits to leverage on automation for its distribution and fulfilment centres.

To date, Pos Malaysia has equipped 35 distribution centres with semi-automated sorting systems. These upgrades were crucial in easing the strain on manpower, resulting in greater capabilities and lowered costs. The improved sorting systems were especially beneficial during peak seasons, where deliveries can go up to over 8 million parcels per month, as experienced in the 11.11 online mega-sale. As such, the Group plans to continue this initiative by deploying semi-automated systems across 20 distribution centres this year.

To further supplement the vision of an ideal processing capacity, the Group is also investing in fully-automated and integrated fulfilment centres. Pos Malaysia aims to launch its first regional Mini-Integrated Parcel Centre (IPC) in Senai, Johor, to cater for volume growth, with a target to process a total of 1 million parcels daily.

Driving growth by forging strategic partnerships

To remain competitive in the industry, Pos Malaysia forged strategic partnerships to diversify its revenue stream. The Group’s most recent partnership with Allianz Life Insurance aims to improve life insurance accessibility for all Malaysians. Together, they have launched PosLifeCare, an affordable life insurance plan with a premium from as low as RM0.14 a day.

The Group formed a partnership with CollectCo, a leading parcel delivery and collection network. Through this collaboration, Pos Malaysia secured an additional 1,255 partner outlets. The Group was able to expand its customer reach while achieving financial sustainability through agent and partner-operated outlets.

The main focus for Pos Malaysia at this juncture is to win market share in the fast-growing e-commerce driven courier delivery segment. The investments made by the Group in technology augurs well for the future. Pos Malaysia is well-placed to address the shift in consumer demand for digital services.  

The Future for Enterprises is Undeniably Digital

Apr 07, 2021
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TM ONE CEO Ahmad Taufek said, “Our role as the enabler Digital Malaysia, we have the capabilities to fully support the enterprise sector. From an infrastructure standpoint, a one-stop centre with our network, software and platform and most importantly full data sovereignty."

As enterprises race to digitalise, new, cutting-edge technologies are becoming more viable than ever, with increased speed and power and decreased costs

In partnership with Going Places by Malaysia Airlines

The pandemic has forced Malaysia and the whole world into an accelerated migration to digital technologies. Businesses are witnessing the deployment of remote work and digital access to services across every domain. To fully participate in this evolution, companies need to incorporate digital transformation at each step of the customer journey and adapt business processes to the new normal.

All eyes on the enterprise sector

Charged with servicing vast numbers of consumers with speed and accuracy – and often, in person – Malaysia’s enterprises know all too well both the urgent pressures and the structural difficulties of adapting to disruptive changes. After all, most organisations today are handling huge volumes of data, and many are using aging legacy IT systems that may be difficult to upgrade.

It remains to be seen whether Malaysia’s enterprise sector can become sufficiently agile quickly enough to thrive in the digital age. The market is also observing large enterprises struggling to keep up with startups that are increasingly disrupting traditional forms of business and meeting customer needs more rapidly via digital platforms.

A company that successfully transforms into a digital enterprise uses technology as a competitive advantage in its internal and external operations, from how it operates, develops products and services to how it generates revenue and engages with customers. Companies that do this successfully also can become economically efficient and more flexible in adapting to future market changes.

Moreover, digitalisation is opening up new markets and creating ecosystems that often extend across multiple sectors. Connected and autonomous vehicles, e-medicine, fintech, e-tailing and smart cities are all enabled by connectivity, growth in storage and bandwidth, advances in cognitive technologies and increasingly sophisticated data analytics.

Three key technologies

Smaller enterprises now have access to sophisticated capabilities once only available to huge multinationals, increasing demand and creating a virtuous cycle for more products and services. Three digital technologies have risen to the fore as the key foundational enablers.

First is smart services, which promise to transform enterprises by embedding intelligence into critical infrastructure and everyday objects from any device, anytime and anywhere.

Secondly, cloud-based platforms have proliferated in response to a rising need for allowing multiple stakeholders to access corporate data, customer information and projects from different locations and devices in real-time.

Digital innovations also bring new risks to businesses, such as cyberattacks, data breaches and other online threats. Enterprises need to convince their customers that data collected by the smart services, processed and stored in the cloud, is secure. This necessitates the third technology – cybersecurity. Enterprises must invest in advanced cybersecurity measures to accompany all the newly incorporated technologies and build digital trust. While implementing these and other new technologies, enterprises will have to adapt their IT and business models as well, ones that are agile enough to place technology at the core of the company strategy.

TM ONE, your partner in digital transformation

The enterprise and public sector business solutions arm of Telekom Malaysia Berhad (TM), TM ONE is committed to offering workable, customisable digital solutions to the enterprise sector. In addition to cost-effective networks, TM ONE also helps digital enterprises remain resilient through smart services, cloud platforms and cybersecurity solutions.

More than just technology, TM ONE has the human touch. Its experts are well-versed in industry best practice and compliance standards. Through professional and managed services, TM ONE’s team assesses a company’s needs and develop an action plan, whether that’s data migration or more complex Artificial Intelligence (AI) solutions.

Another key concern around digital transformation is complexity, with many enterprise leaders worried that they will not be able to maintain their systems after the migration. TM ONE’s team of smart services, cloud and cybersecurity experts guide clients through the entire process, from planning to implementation, and remain on call 24/7 for any challenges.

TM ONE CEO Ahmad Taufek
TM ONE CEO Ahmad Taufek

Speaking on the diversity of customer needs, TM ONE CEO Ahmad Taufek said, “As part of the TM Group, and our role as the enabler Digital Malaysia, we have the capabilities to fully support the enterprise sector. From an infrastructure standpoint, TM ONE is a one-stop centre with our network, software and platform and most importantly full data sovereignty. Moreover, from an advisory perspective, we have the expertise of top solution consultants.”

He went on to say that the announcement of MyDIGITAL – the Digital Economy Blueprint presented “the perfect time for enterprises to kick start their digital transformation journey” and that “TM ONE is ready to serve with our comprehensive suite of digital solutions.

A call to action

2021 comes with its own set of challenges for Malaysia and its economy. But the previous year has abundantly underscored the importance of digital leadership and transformation. TM ONE stands at the ready to support the enterprise sector in this trial by fire – a trial that will lay the groundwork for great things ahead.

For more information about TM ONE and Cloud α, please visit the official website.

Trends & Digital Strategy: Changing Gears – From Caution to Jumpstart

Mar 26, 2021
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At the heart of digital transformation are the technologies and technology platforms that serve as catalysts for change. It is on this foundation that the pillars of Digital Malaysia will find their footing. TM ONE understands and realises the power, significance, and impact that these technologies have in enabling digital change.
  • Ahmad Taufek Omar, Executive Vice President/Chief Executive Officer, TM ONE

Decades from now, when historians look back on today and write our history, how will they describe this epoch? What grand, sweeping theme will they say is the characteristic of our age? The polarisation of our beliefs? The rise of narrative economics and capitalist power? Or will we be remembered as the generation that squandered a chance to course-correct environmental imbalance?

History will define us as the age of transformation. They will say that we live in the greatest bout of compressed, complex, life-altering transformation humankind has ever experienced. If you take a closer look at the themes that characterise our age; the root causes of our best moments, our achievements, our learned traits and behaviours, and our greatest excesses and ailments–the stuff that makes us, us–and it can be traced back to transformation. A transformation of a very specific kind.

This transformation has helped the world’s best pharmaceutical companies to bring out a vaccine in record time. It has enabled us to make swift advances in diverse areas such as electric mobility to food technology and astronomy.  Companies and governments have come together to collaborate to help solve the biggest challenge faced by our generation. All of these are defining characteristics of our time and they are tied together with a single invisible string: Digital transformation.

Digital Transformation in Malaysia

digital transformation digital business future business

Before the pandemic, Malaysia has had a slower pivot to digital transformation. The country was ranked 38 out of 141 countries in Cisco’s Global digital readiness index. According to IDC, 55% of Malaysian organisations do not have an integrated enterprise-wide digital transformation strategy, and 91% of Malaysian enterprises are either on stage one or two, of a five-stage IDC maturity curve. The results are not surprising due to the complexity and risk associated with every digital transformation initiative. It is a multi-year, multi-stakeholder, enterprise-wide effort that requires vision, and changes to people, process and technology. It requires multi-domain expertise spanning business and technology, which is hard for enterprises to acquire. The positive news however is the rapid digital adoption of digital services across the board during Covid-19. SME businesses also moved to online and adopted social media and e-commerce platforms to gradually build digital led revenue streams.   Many companies have begun shifting their business approach, from traditional lead to more digital lead.    

MyDigital – Jumpstarting a new future

After the very challenging 2020, the global business and political environment is now getting ready for a renewed growth agenda. Companies and leaders need to prepare for this next decade of growth by leveraging all the positives that digital transformation has helped us achieve. This calls for a new growth mindset amongst all stakeholders including the government. Leading ahead, the Malaysian Government has been quick to respond with a very ambitious MyDIGITAL – Malaysian Digital Economy Blueprint, an action plan with initiatives to be implemented till 2030. With six (6) different thrust areas, it is a  comprehensive plan with milestones for success across the three (3) dimensions of citizens, businesses and government. It aspires to create 500,000 new jobs, 5000 new start-ups and a rapid migration to digital for government and citizen services. The government’s adoption of digital will be a catalyst for the entire nation in the journey to building an inclusive society for all Malaysians.

TM ONE: Taking Transformation Forward towards empowering Digital Malaysia

At the heart of digital transformation are the technologies and technology platforms that serve as catalysts for change. It is on this foundation that the pillars of Digital Malaysia will find their footing. TM ONE understands and realises the power, significance, and impact that these technologies have in enabling digital change.

To facilitate and accelerate digital adoption, TM ONE has built its offerings along four (4) technology pillars that underpin digital transformation – Cloud Computing, Cybersecurity, Connectivity and Smart Services. While each of these pillars are individually very important, the convergence between them enables the curation of new customer and business experiences. 

While technology is important, the effective implementation can only happen through collaboration with stakeholders across the entire ecosystem. As the enterprise and public sector business solutions arm of Telekom Malaysia Berhad (TM), TM ONE is well positioned as the ENABLER for businesses to realise their full potential of their digital opportunities. We are privileged to have this opportunity to play a role in bringing the ecosystem together.

This monthly insight platform is our attempt to connect and collaborate with you on “Taking Transformation Forward”. Every month, we hope to bring you insights into business strategy, demystifying technology as well as sharing of best practices on companies, government agencies and even individuals leading the way for us as a nation. We welcome your feedback, ideas and innovation stories. Let’s connect, collaborate and build a better future for all Malaysians. 

Headline: What Businesses in Malaysia can Learn from Covid-19?

Mar 08, 2021
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Covid-19 has been a once-in-a-generation disruption to lives and businesses. But it has prompted innovation, preparedness and digital transformation across all sectors. In Malaysia, it has kick started a new digital revolution that will ensure better resiliency in the years and generations to come.

In partnership with Going Places by Malaysia Airlines

At the LEAP Summit in November last year, TM ONE Chief Executive Officer (CEO), Ahmad Taufek Omar said: “Every disruption pivots on creativity – a new vision, a new insight of how technology can uplift people and their goals onto a more agile, faster path.” 

His words could not have been more prescient for the disruption that followed just a couple of months later, when the Covid-19 pandemic swept the globe, sending industries scrambling to regain their footing. 

Nearly a year since the summit, though the dust remains unsettled, the vision, insight and technology he alluded to are on clear display in the business world. Quite simply, there is a cultural shift underway, and there is already a lot that businesses can do – culturally and technologically – to become more resilient in a changing world. 

1. Have a business continuity plan 

Analyst firms such as Omdia (formerly Ovum) expects Malaysian businesses will view the pandemic as a catalyst to sharpen their business continuity measures and change the way they do business. Ideally, enterprises should have a specific pandemic-focused business continuity plan (BCP) already prepared, says the Omdia report, but – as an alternative – repurposing an existing one that covers “civic emergencies” should suffice. 

“The plan should incorporate a tiered response, clearly identifying the actions to be taken at each level and the circumstances that would trigger implementation of the next level,” notes the report. 

Professional services network EY elaborated on the requirements of a strong BCP in a March 2020 report, highlighting the need for employee health and safety, short-term liquidity, knowledge of government support measures and many other operational details. 

2. Embrace digital transformation 

The ability to work effectively and safely away from the office is a key aspect of business continuity and stability, as it is the ability to meet fluctuations in customer demand resulting from any disruption.  

There have been a few reports of organisations experiencing big jumps in traffic during Malaysia’s Movement Control Order (MCO) period earlier this year, putting strain to their network and resources, and necessitating an overnight infrastructure upgrade.  

Rather than waiting for another disruption, companies can be better prepared by moving data centres and other operations to the cloud and introducing remote meeting and file-sharing applications into their daily operations. 

3. Ensure your company culture adapts 

While there is a need for digital transformation, it must go hand-in-hand with a shift in company culture. A recent survey by productivity software company Wrike found that 49% of workers have never worked from home. Not only is there a generational difference around attitudes towards working remotely, there is a lack of consensus around manager expectations, best team practices, efficient software and suitable IT infrastructure. 

But the new paradigm of working remotely will become mainstream and attitudes must catch up. Ahmad Taufek also commented on the cultural changes required for digitalisation during an interview last year, “Culture is a critical factor underlying a successful transformation. Companies, whether they are big or small, must be ready to change their mindsets to stay relevant and to adapt to the new order of the economy.” 

All the appropriate technologies, and cloud infrastructure services are already on hand to ensure companies can operate from both home and the office. It is now a matter of implementation well ahead of the next disruption. 

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4. Practise strong stakeholder communications 

As part of its 2019 Global Crisis Survey, consulting firm Pricewaterhouse Coopers (PwC) found that companies are able to not only survive in times of crisis, but also emerge even stronger in the aftermath, as a result of being prepared and having effective stakeholder communications. 

This communication must be regular, transparent and far-reaching, relaying not just evolving company policies but also relevant government guidelines. Furthermore, it must extend beyond immediate employees, and include customers, suppliers, creditors and investors, just to name a few. 

5. Look at adjacent industries and prepare 

According to American customer service software company Zendesk’s  BenchmarkSnapshot, of the 23,000 companies that use their services, the three biggest industries that have seen spikes in support requests since late February are restaurants, grocery brands and remote work & learning. 

Companies in the same or adjacent industries can glean a great deal of useful information from successes in these three areas, particularly in terms of the digital transformations implemented this year. 

6. Implement data-driven decisions 

Disruptions are times for quick-thinking and fast decisions, but that doesn’t mean company leadership should shoot form the hip. The PwC survey also found that companies become stronger when supported by data-driven decision making.  

Having a big data initiative in place ensures that businesses can respond effectively and swiftly, based on dynamically evolving set of data. The ability to make fast and well-informed business decisions is yet another reason why digital transformations – and the resulting collection of relevant data – can yield benefits well into the next disruption. 

As Malaysia’s digital enabler for enterprises and public sector, TM ONE has played its role in helping customers to weather challenges whenever and wherever required, and this has been especially true during the Covid-19 pandemic. 

Through its Cloud Alpha service, TM ONE supports infrastructure, platform and software needs. That means companies can implement everything from remote servers and collaboration and file-sharing platforms, as well as big data gathering, expanding as their needs grow, and with 24/7 IT support.  

Covid-19 has been a once-in-a-generation disruption to lives and businesses. But it has prompted innovation, preparedness and digital transformation across all sectors. In Malaysia, it has kick started a new digital revolution that will ensure better resiliency in the years and generations to come. 

For more information on how to begin a digital transformation for your company, please visit TM ONE’s Cloud Alpha service website

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3 Reasons Why Cyber Resiliency and Digital Trust is Key in Today’s Digital Economy

Mar 31, 2021
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The accelerated speed of business digital transformation comes with its accompanying cybersecurity risk and vulnerabilities. It is the responsibility of organisations to protect and safeguard their business, customer data and brand reputation from cyberthreats and cybercriminals.

This infographics takes a closer look at the growing cybersecurity risk that businesses are exposed to while accelerating their digital transformation efforts. Here we share how a managed security services provider like TM ONE plays the role of a trusted partner to unlock the potential of the digital business.

3 Reasons Why Cyber Resiliency and Digital Trust is Key in Today’s Digital Economy 2
3 Reasons Why Cyber Resiliency and Digital Trust is Key in Today’s Digital Economy

A priority now on cyber resilience with proactive cyber defence is more than ever. Building digital trust, as defined by IDC, is enabling decisions to be made between two or more entities that reflect their level of confidence in each other. This digital trust, between an organization and its customers, underpins much of today’s economic activity in an increasingly digital-first world.

TM ONE CYDEC Managed Services can simplify how your company adopts and strengthens cybersecurity, and continues to protect itself.

This infographics was published in The Edge weekly on 29 March 2021.

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