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5 Steps to plan your digital transformation

Five key areas decision makers should consider while planning for a digital transformation. Inspired by Sun Tzu’s Art of War, the concepts and examples are based on my views and lengthy experiences in the IT industry.

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By Yeo Siang Tiong
General Manager for Southeast Asia at Kaspersky

Being in the IT industry for the last 28 years, I had the chance to observe the many advancements and upheavals in the field – advancements in technology, changes in standards and protocols, mergers and acquisitions, layoffs and re-organizations. But I have never seen Southeast Asia (SEA) transforming at a breakneck speed until this pandemic. 

This transition boils down to one segment – digital. In fact, the region has reached more than the forecasted 310 million online consumers for 2025 in 2020, five years in advance. Thanks to the 40 million first-time internet users last year from Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

As a result, there is now an urgent need for businesses to reconsider their infrastructure, their business model, and their ways of doing transactions. The stakes are higher for firms to wade through this digital wave, with this global crisis in the background.

So today, I want to share five key areas decision makers should consider while planning for a digital transformation. Inspired by Sun Tzu’s Art of War, the concepts and examples are based on my views and lengthy experiences in the IT industry. These 5 areas are – 五事:道、天、地、将、法。

  1. Alignment – Alignment from the board level or CEO to the last men in the front-line like the customer support and sales is important. If aligned, the men will fight the toughest war. The “Shared Values” and “Strategy” in the McKinsey 7-S Model are probably the closest elements to this concept. 

Unfortunately, the modern management theory sees the shareholders as the ultimate people to please, with employees as mere digits akin to the factory workers of the Industrial Age. Coupled with disproportional use of debt-based leveraged buyouts, owners are no longer owners and alas, the employees who staked their well-being on the company, their voices are hijacked. 

Fortunately, this is probably true only for the larger corporations where the gains are meaty. Nonetheless, for all corporations of various sizes, the spirit of the company is the thread that weaves all together. Without a clear sense of direction and purpose that is well communicated, the individual parts can be difficult to summon and align.

Applying this logic to digital transformation, the whole company from the C-suite to the groundwork staff should be structured correctly, aligned, fully aware and on board.

A good example is how companies pivot into digital retail. It is important that the company is well aligned to execute this. The company needs to understand that digital retail is another channel to reach the same customer. So for companies who does not have a consistent strategy for omni-channel, they end up setting up a new department to target this without rallying the other conventional channel to join the race, causing fault lines to divide the company.

  1. Natural elements – Natural elements refer to climate and timing. In this era of digital transformation, timing is the more appropriate element. Interestingly, the concept of timing is also reflected in many ancient Chinese classical philosophical studies, like Lao Tzu’s Tao De Jing, who advocated in flowing with “Tao”. 人法地,地法天,天法道,道法自然. For those who observed the masters in executing the TaiChi movement, counteracting the enemy’s strokes involves the timing of absorbing their strikes by moving along the force, not against. 

Not going so far, we are well aware that the current pandemic has been causing major disruptions across all industries and entities in Southeast Asia. Based on “Tao”, businesses, no matter what shape or size, should move along with the on-and-off lockdowns and restrictions. How? There is no other way but to harness the power of technology. 

With transactions online predicted to hit $1.2 trillion in SEA by 2025, it is timely to start shifting your physical records and dealings online, from forms to be filled, payment, and other in-between affairs. If you have not started or considered it yet, you should do so now.

  1. Physical elements – You may ask how physical elements are related to a non-physical environment such as the internet. During the ancient time, this will be about the soldiers’ marching distance and the war’s type of terrain. Currently, and in digital transformation, it is about your market that you operate in (terrain).

Identifying the right market is critical. This is not just a geographical market identification, it is also identifying the approach to the market, and targeting the correct audience type that fits into the company strategy. For example, a clothing line manufacturer may choose to directly market to the consumers. The manufacturer may choose to go for un-addressed country to avoid conflicting with the existing ecosystem of business partners, or may choose a new target audience (youngsters), reaching them through social media influencers, and selling it purely online.

  1. Managers – One cannot execute a plan without the management’s approval. This pandemic showed that innovation is needed to thrive and our recent survey revealed that managers play a crucial role to enable it. 

A great majority (96%) of surveyed companies confirmed that their board plays a direct role in business innovation. This means that if innovation has more weight behind it, there will be more drive and this not only changes the way businesses operate, but their deep-rooted culture and corporate DNA. 

These are welcome findings and a reminder to loop in your C-suite about your digital transformation plan.

Aligning this across the structure is also important. Execution needs to be aligned all the way to the last person in the hierarchy. That means, the many layers of managers are key to its success, and not just lip service from the top. At times, we see the drive from the top, but the effort is thwarted by managers, especially line managers who are used to addressing old markets, using old tools, or are simply not convinced. 

Qualities we need to look for in good managers are : wise, trustworthy, benevolent, courageous, strict ( 将者,智、信、仁、勇、严也。)

  1. Structure and Protocols/Process – Technological advancements freed us of the need to maintain roads for military supplies, to marshal armies in proper subdivisions, and to control military expenditure. However, this was changed to the need to plan our steps, consider our assets, redefine our protocols, and train our employees regularly. 

For instance, the same survey revealed that 95% of innovations in a company fail before the launch and the culprit is lack of planning. Reverting back to digital transformation, it is important to have defined protocols, comprehensive security measures and tools at hand, and a clear road map and division of tasks to make it possible. 

It is important to equip your company before diving into an irreversible transformation. Be sure that you have the updated and secured tools, revisited and adapted your process flows to a digital-first approach, and trained all your employees about securing and managing your evolving IT environment.

What part then, does cybersecurity play in this transformation? One thing that companies mistakenly think is that cybersecurity stifles innovation. In our recent survey, 54% of our respondents shared this thought. But news about data breaches and ransomware attacks should be considered a clear warning about this thinking. Any such breaches will set the company back in terms of digital transformation as it shakes the transformation at the foundation layer. This is akin to old times when you move the front troops too fast, stretching the supplies line and risking the hijacking of your food supplies, and starving the front troops before they reach the destination.

So yes, it is essential that your digital transformation plan include a comprehensive look into cybersecurity at the earliest.

Tech & Innovation

Store-specific planogram: AI-driven trend that changes retail space planning

Through advanced tech, retail space planning driven by artificial intelligence is now possible. This is in the form of store-specific planograms. RELEX Solutions, a leading supply chain and retail solutions provider, shares its insights on this emerging trend.

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In the retail industry, customer expectations are straightforward: they want to easily find the products they need and enjoy a hassle-free shopping experience. If a store falls short in these aspects, it risks losing its place as a preferred shopping destination for customers. That is precisely why the foundation of a great customer experience lies in effective space planning.

Commonly referred to as a planogram, space planning involves optimizing a store’s layout and product placement to enhance customer experiences and increase sales. Effective strategies include positioning high-demand and seasonal items near the entrance, ensuring accessibility and visibility in key areas, and adapting layouts based on sales data and customer feedback.

In the Philippines, planogram preparation is mainly a manual process, although retailers use digital tools for sales data analysis. However, for larger retailers dealing with extensive data and numerous products, manual adjustments can become overwhelming. 

Through advanced tech, retail space planning driven by artificial intelligence is now possible. This is in the form of store-specific planograms. RELEX Solutions, a leading supply chain and retail solutions provider, shares its insights on this emerging trend.

“A store-specific or local planogram is one designed for a particular store or location.  Unlike a standardized planogram that may be used for multiple stores, a local planogram takes into account the unique characteristics of a specific store, such as its layout, customer demographics, and sales data,” said Donald “DJ” Felbaum, Head of Sales for the Philippines at RELEX Solutions. “It is tailored to the individual needs and conditions of that particular location to optimize product placement and merchandising to drive sales and improve customer service.”

However, it is often seen as challenging and time-consuming due to the anticipation of lengthy, costly, and uncertain implementation projects. For instance, imagine a retailer with 1,000 stores, each needing weekly updates to five planograms. If one planner creates ten planograms daily, it would require an impractical workforce of 100 planners, along with ongoing training. But the integration of AI and machine learning automation can address these challenges. AI-powered automation can help users configure parameters and apply them across thousands of planograms, saving costs and avoiding additional expenses related to inventory adjustments for layout and local consumer preferences.

The benefits of AI-generated local planogram optimization also include precise store shelf configuration and a one-touch replenishment model. This approach, which enables immediate stacking of incoming stock onto display units, facilitates one-way inventory that results in cost reduction by eliminating the need for staff to transport excess stock to back rooms, enhancing the efficient use of available storage space, and reducing restock frequency of fast-selling products. 

Furthermore, AI and machine learning automation usher in interactive, standardized merchandising reports. These insights unveil concealed issues and provide both macro and micro data perspectives, empowering retailers to proactively optimize product placement, fine-tune pricing, and enhance inventory management. 

Store-specific planograms epitomize the future of space retail planning, optimizing product placement, and enhancing customer satisfaction. Harnessing advanced technology in retail, this tailored approach allows retailers to adapt swiftly to market changes, leading to elevated customer experience, improved profitability, and fostering brand loyalty.

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Tech & Innovation

Concrete tips for effective SEO strategy

SEO is now more important than ever. More consumers are using the internet to research and purchase the products and services they require.

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The digital marketing industry is often clouded by myths and misconceptions, particularly when it comes to Search Engine Optimization (SEO). Geek Certified CEO Scott Wilson, SEO presenter with two decades of experience, is here to set the record straight with valuable insights and actionable tips for businesses looking to improve their online presence.

SEO is now more important than ever. More consumers are using the internet to research and purchase the products and services they require. At this very moment in time, someone is searching online, for the products you sell and the services you offer. Will they find you in the jungle we call the internet or connect with one of your many rivals?

Debunking Common SEO Misconceptions

In an industry rife with “snake oil salespeople” and misleading promises, Wilson emphasizes that despite the daily barrage of emails promising to elevate websites to the coveted number one spot for a fee, SEO is not an arcane art shrouded in mystery. Contrary to popular belief, search algorithms from Google and other search engines are not re-written on a daily or even monthly basis. Instead, updates are methodical improvements to refine the process of organizing global information.

Wilson states, “Search rankings among websites are quite stable. We track our customers’ results and their competitors’ monthly, and while there are fluctuations, the overall landscape remains consistent.” Scott’s team’s monitoring of search results over the past 20 years affirms the stability of search rankings when businesses provide an exceptional customer experience.

Truths About SEO: Stability and Quality Over Gimmicks

The core of Wilson’s message is that the quality of the user experience is paramount. Google and other search engines aim to guide users to the most relevant and valuable web pages for their queries. “If you prove to Google by providing an outstanding customer experience, your ranking results will be stable without the need for constant page reinvention,” Wilson advises.

He outlines three pillars essential for maintaining a robust SEO strategy:

1. Substantial Content

Wilson recommends having at least 1500 words of quality content to ensure depth and engagement on your web page.

2. Receiving Links

Just as social media teams request “likes”, Wilson suggests businesses should ask for links from related web pages within their business networks. Search engines treat each link as a vote of confidence.

3. User Interaction

By examining Google Analytics, businesses can ensure that their web pages facilitate interaction. Providing valuable downloadable content, creating smooth e-commerce experiences, and engaging visitors with videos are all strategies to keep users on your page longer.

Real Tips for Real Results

By following these tactics, Wilson promises businesses can achieve higher search engine rankings and attract more qualified leads. “It’s about building a digital space where users can find value and have their needs met effectively,” he explains.

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BizWiz

Micro-entrepreneur ‘hybrid-sells’ with the help of fiber broadband connection

Rogelia Dasco, a Cebu-based homemaker who buys and sells imported goods from the US, does her trade mostly online.

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The post-pandemic environment demands flexibility and adaptability from everyone but most especially entrepreneurs who are slowly recovering from the pandemic slump. One online Facebook seller is employing her business acumen not just in the virtual marketplace but in real life, as she does “hybrid selling” of her consumer goods.

Rogelia Dasco, a Cebu-based homemaker who buys and sells imported goods from the US, does her trade mostly online.

“The items, like lotions and perfumes, are from the US. My sister sends them, I take a picture of them, and I post them on Facebook Marketplace,” she shares.

However, unlike most online sellers, she doesn’t stop in the virtual world; When she gets to her buyer’s address, she then goes house to house in the community. The strategy pays off – she is able to sell out her goods in one afternoon instead of waiting for online sellers to finish off her inventory.

“When someone buys from me, for example, I go to their house but I bring my other items too. After I deliver to the buyer, I go to the neighbors and offer my other goods. Right now, I’m all sold out. The next shipment will come at the end of the month,” Dasco proudly says.

Supporting this diligent hybrid approach is BIDA fiber, the new mass market offering of Converge targeting the lower C and D income classes.

BIDA fiber is the most affordable postpaid broadband plan in the market today, and the cost savings makes a difference for smaller entrepreneurs.

“It’s so affordable and I’m able to save too. My old plan was priced at P 1,299 with an additional P 200 every month so that’s P 1,499. With BIDA, I’m able to save more than P 500,” said Rogelia Dasco.

The reliable connection – that can go up to 35 Mbps – also makes sure Rogelia keeps her ties with her supplier sister strong as every night they call each other through video. Even with a 3-hour video call, her husband watching YouTube videos, and her son playing Mobile Legends with friends at home, Rogelia’s connection never falters.

“I’ve really maximized my connection. It’s really good, even if we all use the internet at the same time,” she added. BIDA fiber is now available in more than 300 cities and municipalities in the Philippines and has more than 40 partner distributors selling the postpaid plan.

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