Business

Saturday July 18, 2009

Pikom: Can’t do without ICT

By DALJIT DHESI


PETALING JAYA: Companies should continue to spend on information and communications technology (ICT) amid the current economic downturn so as not to affect their revenue and customer base.

National ICT Association of Malaysia (Pikom) deputy chairman Wei Chuan Beng says one of the most important enabler of ICT is the acquisition of new customers.

“The lifeline of any business is revenue. By not sourcing new customers, the revenue margin will be impacted and this will prevent the company from carrying out its expansion plans.

“ICT has proven to help companies garner a larger customer base, locally and abroad, at a fraction of a cost,” he adds during an interview with StarBizWeek.

Wei Chuan Beng (left) says ICT has proven to help companies garner a larger customer base, locally and abroad, at a fraction of a cost. On the right is C.J. Ang.

He adds that even in a monopolistic market, selling products online has helped companies penetrate the market and obtain new customers.

According to Wei, AirAsia for instance has, in a relatively short time, managed to carve a name in the global aviation industry, thanks to the Internet.

Through the Internet, he says, the carrier has successfully managed to market its brand, services and get new customers.

He said even Kopitiam outlets, which have been mushrooming of late, are using ICT to expand their businesses. Although ICT has been well received by the various sectors of the economy, unfortunately the small and medium enterprises (SMEs) are still slow in adopting this technology, he notes.

As a backbone of the local economy, constituting about 99% of the total companies operating in the country, he says it is imperative for SMEs to adopt this technology if they wish to be competitive and expand beyond boundaries.

Wei says a recent survey showed that about 52% of SMEs did not even have a single person who had been assigned to be responsible for ICT operations.

He attributes the dilemma to a lack of awareness of the benefits of ICT among SMEs as well as the mindset which he describes as “unseen barrier” to the adoption of this technology.

Late last year, Pikom forecast the ICT growth in 2009 to be at 5% compared with its earlier forecast of 7% in 2008 which is a stark contrast to the double-digit growth achieved in 2007 and earlier.

Wei adds organisations should consider re-evaluating their ICT spending and budgets as ICT will continue to be the key enabler that offers businesses the strategic tools to lower operational costs and improve efficiency and productivity.

Pikom is also anticipating a decline in consumer spending, judging from its first PC Fair 2009 held in April.

Pikom president C.J. Ang said although visitor numbers have gone up by 6%, the buying power among consumers was down by about 10%.

“We believe this downtrend will continue throughout the year in line with the Government’s outlook for gross domestic product growth of negative 4% in 2009,” Ang notes.

To further boost the awareness of ICT in Malaysia, Wei, who is also the organising chairman of Pikom National ICT Month (NIM) 2009, says Pikom will be organising the country’s first NIM, scheduled for July 20 to Aug 20. There will be nine events that will be showcased at the NIM – Leadership Summit, Regional Chapter Seminars, EWaste campaign, ICT Strategic Review, Cxo Charity Golf, Buy Online campaign, Pikom Software and Services Showcase and PC Fair exhibition and MDeC’s great ICT sale.

Wei says one of the highlights will be the launching of the Buy Online campaign –
www.mybeli.com, to encourage Malaysians to shop online.

He adds Pikom will collaborate with several online merchants to provide discounts and incentives for consumers to buy online.

This, he says, will help create awareness of the use of broadband to encourage consumers to move up the value chain.

According to Ang, the association will also launch its first research publication, ICT Strategic Review 2009/10 entitled, Innovation, The Way Forward, at the event.

The objective of the inaugural publication is to share the Malaysian ICT sectoral outlook with members, industry leaders, government agencies and the public, he says, adding it will also provide coverage on grants, policies, market and industry information.

He adds that to date 420 delegates have registered for Pikom’s Leadership Summit scheduled for July 20 and 21, and expects more to do so.

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