Digitalisation – A Journey from Typewriter to Personal Computers

The age of technology and the internet redefines limitations and helps us transcend time and geography. 

As businesses and industries are the key contributors to a nation's economic well-being, their progress and ability to adopt new technology is crucial. In encouraging businesses and industries to embrace Industry 4.0, we must be mindful that adopting any kind of change requires careful consideration and a high degree of commitment. 

There is no one right way to adopt Industry 4.0; however, the following are some simple steps that organisations should consider. For our current purpose, we shall discuss the process of digital transformation or digitalisation. There are five (5) core enabling technologies; i) Internet of Things (IoT), ii) Cloud computing, iii) Big Data, iv) Artificial Intelligence (AI), and v) Blockchain Technology, and they are applicable and appropriate depending on the size and maturity of each business. No one solution fits all. Therefore, each business must select appropriate technology depending on their current and future needs.  

The first step is the most important but often overlooked or taken lightly by many organisations. Most organisations start their digitalisation effort by immediately appointing an IT consultant to recommend the appropriate “system architecture” that they may require. This is done mainly due to the notion that implementing digitalisation is an IT upgrading exercise. While this may be true for the project implementation phase, it is only good if the business objectives and work processes have been properly defined initially. 

Organisations should have a clear objective on what they want the digitalisation process to deliver and how the new processes will improve the organisation's productivity. In other words, the “business architecture” should be crystalised first before proceeding to design the IT “system architecture”. Organisations should invest time and effort to understand their current business processes and how they could improve them by implementing Industry 4.0 technologies. Only with a clear purpose and objective can we assess which of the five core technologies would be relevant and should be adopted. Regardless of whether we are still in Industry 1.0, 2.0, or 3.0, paying attention to our business process alone can improve our efficiency. Once we have defined our objective, then we are ready to go into the second step of implementing the desired system upgrade. 

If a company changes from using a typewriter to a PC but treats the PC just as an improved typewriter, then none of the improvements can be realised.

To demonstrate the upgrade process, let’s take an example. In the early days when businesses are conducted with physical letters, the typewriter is the common tool. A simple business process involving a typewriter could be; i) a decision made by management to procure something, led to ii) a letter drafted (using a typewriter) by a procurement executive, and iii) the letter physically mailed. The receiving vendor reviewed the request then, iv) replied with the quotation to the procurement executive (via physical letter), and v) the procurement executive updates the management. 

Imagine this process again but now replacing the typewriter with a Personal Computer (PC) connected to the Internet. You can have the manager decides, send/receive an email to/from the vendor, and the whole process could be completed without middle procurement executives or a mail delivery person involved. What took a week to complete could now be done in a day. However, if a company changes from using a typewriter to a PC but treats the PC just as an improved typewriter, then none of the improvements can be realised. 

What has been improved, however, has a significant other work process consideration. Without a physical letter, we now need a proper electronic filing system for all our communications. The improved communication time could be used to reduce stock holding. It is important for management to identify all the benefits and improvements associated with adopting a new system. These benefits would justify the investment of getting a new PC replacing the typewriter if they are truly realised. Furthermore, that little extra connection to the Internet has vast implications; from improving the efficiency of the business process to opening up new opportunities.

Now imagine when all things are connected to the Internet or what we call the Internet of Things (IoT). Moving from a single PC with Internet connections to a networked computer system with backend database servers and cloud presence (Cloud Computing) opens up a huge possibility to do things that we were not able to do before. A networked system connected to a virtual marketplace would give us the capability to collect lots of transaction data (Big Data). It will allow us to understand business trends using Artificial Intelligence (AI), and even secure all the processes using Blockchain technology. These potentials, however, are meaningless if the people are not ready. Adopting new technology such as Industry 4.0 requires a work culture and attitude change as well, beyond the installation of new systems and hardware. The key to success is in the human component, i.e. for them to be involved in designing the new system and understanding how they will be impacted in the new work processes. 

“As we embrace Industry 4.0, we must be open to discovering new ways to improve our business processes and continuously developing our talents to suit a higher-skilled environment.”

Once you have implemented a new system, the third and final step is to monitor the performance and to continue improving the new way of doing business. The benefits gained by upgrading to Industry 4.0 technologies are not limited to just improving efficiency. While we reduced our dependency on lower-skilled labour, the Internet also allows us to be connected to the global marketplace. Technology has certainly enabled smaller businesses to reach out to foreign markets and consumers that was not possible before. Businesses in the era of a globalised economy can no longer depend entirely on brick-and-mortar existence. The virtual marketplace is cheaper, more efficient, and without boundaries. As we embrace Industry 4.0, we must be open to discovering new ways to improve our business processes and continuously developing our talents to suit a higher-skilled environment.   

While the first step addressed the immediate things we need to do before adopting a new system, the second steps are the medium-term efforts required in implementing a new system; the third step is all about continuous improvements. New businesses in the globalised economy must have a Sustainable Development Goals (SDG) policy as promoted by the United Nations. In a globalised economy where our goods and services are accessible to consumers worldwide, businesses have to accept a new normal and new practices. Adapting to this new reality is not about appearance but rather about survival in a new world we lived in. 

About the Author

Ir. Dr Mohd Shahreen Madros has over 30 years of working experience in various capacities. He was a lecturer in Universiti Kebangsaan Malaysia (UKM), with over 20 years of experience in the Oil & Gas industry. He was also the appointed CEO of MATRADE from early 2017 until Feb 2019 during which he represented Malaysia in many international trade missions. Dr Shahreen is currently an independent advisor to industries, a board member of a public listed company, a certified coach, and an Adjunct Professor at the Graduate School of Business, UKM.