Ng Wan Peng

Chief Operating Officer, MDeC

2 December 2013

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AGENDA

 Introduction of Operational Excellence (OE)

• Definition
• Components
• Characteristics

 MDeC Strategy towards 2020

 MDeC Approach for Operational Excellence
• Adoption of Operational Excellence by MDeC
• Requirement needs to achieve Operational Excellence
• Focus areas and examples
• Measurements

 Conclusion

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AGENDA

 Introduction of Operational Excellence (OE)

• Definition
• Components
• Characteristics

 MDeC Strategy towards 2020

 MDeC Approach for Operational Excellence
• Adoption of Operational Excellence by MDeC
• Requirement need to achieve Operational Excellence
• Focus areas and examples
• Measurements

 Conclusion

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 OPERATIONAL EXCELLENCE (OE)

What is Operational Excellence?

It is a combination of
1) System Improvements
2) Behavioural Change
3) Process

aiming to achieve a state of excellence within operations.

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OPERATIONAL EXCELLENCE (OE)

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 CHARACTERISTICS OF AN
EXCELLENT ORGANIZATION

 Standards of excellence are integrated into their governance,

management and operations

 Systems & procedures designed to foster excellence and promote

accountability

 Well-defined missions that convey the reason of the organization's

existence & inspire others to join the cause

 Understand the connection between individual roles and organization's

vision, mission, values and desired results

 Utilizes cross-functional teams

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 MISCONCEPTION OF
OPERATIONAL EXCELLENCE
What Operational Excellence is NOT:

 A cost cutting exercise

 A quick win

 Something that can be carried out solely by

consultants

 A solution for all problems

 Always successful

 A short exercise

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AGENDA

 Introduction of Operational Excellence (OE)

• Definition
• Components
• Characteristics

 MDeC Strategy towards 2020

 MDeC Approach for Operational Excellence
• Adoption of Operational Excellence by MDeC
• Requirement need to achieve Operational Excellence
• Focus areas and examples
• Measurements

 Conclusion

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 MDEC’s FUNCTION
MDeC’s STRATEGY STATEMENT

Develop, Coordinate and Promote

Digital Economy, Information and
Communication Technology (ICT)
industry as well as pervasive use of
ICT in Malaysia

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 DIGITAL MALAYSIA’S 2020 ASPIRATIONAL
GOALS

2020 GDP
Increased GDP
Digital Economy
13% 17%
contribution to GDP (2010)

WEF Global IT Report (GITR) TOP Enhanced

Rankings 2010-2011 #28 20
(Rank amongst 138 economies Productivity
Competitiveness TOP
Scoreboard 2011 #16 10 Improved
(Rank amongst 59 economies)
Standard of
Living

Source:
1 ICTSA 2012 (Preliminary)
2 EIU 2010
3 IMD 2011

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 GROWING THE DIGITAL ECONOMY
MDEC’S VISION & MISSION

Source:
ICTSA 2012 (Preliminary) by DOSM, Analysis by MDeC

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AGENDA

 Introduction of Operational Excellence (OE)

• Definition
• Components
• Characteristics

 MDeC Strategy towards 2020

 MDeC Approach for Operational Excellence
• Adoption of Operational Excellence by MDeC
• Requirement need to achieve Operational Excellence
• Focus areas and examples
• Measurements

 Conclusion

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 MDEC ADOPTION OF
MDEC ADOPTION OF
OPERATIONAL EXCELLENCE
OPERATIONAL EXCELLENCE
• Clear Vision & Mission • Enhanced workforce
• Strategy & Structure that environment and culture
are aligned to mobilize • Aligned people and
commitment toward resources to deliver
fulfilling the purpose priorities
• Competitive organisational • High engagement and
values and culture Vision & performance culture
Talent
Strategy

Technology Simplify
• Technology as a business • Streamlined processes that
investment to provide minimize errors and
novel solutions to customer maximize speed
issues • Cross functional sharing of
• Effective use of information
information and technology

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 FLEXIBILITY vs COMPLIANCE
FLEXIBILITY VS COMPLIANCE

Business Corporate
 Simple & Fast Objectives Governance
 Value to customers
 Compliance & Good Governance
Compliance
 Value to stakeholders &
Simple &
 Towards achieving organizational Fast Good
goals, balance between simple/ fast Governance
vs compliance / good governance

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 MDEC’s KEY FOCUS AREAS
MDEC’S KEY FOCUS AREAS

Information &
Talent Simplify
Technology
“Stitching People “Seamless End-to-
Together” End Process” “Effectively
Digital”

To achieve Operational Excellence

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 MDEC’s KEY IMPROVEMENT NEEDS
MDEC’S KEY IMPROVEMENT NEEDS
Talent Process
Values and Cultures
 Streamlined process for
 Recognize talent People with different
 Good work-life roles
balance  Flat Organization
 Good skill  Processes in placed to
development address risk and ensure
opportunities compliance
 Performance  Connecting the market:
Management model supply & demand via
Customer Service – 1st
point of resolution
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Tech
 Centralized application
systems for internal use
 Customer centric
approach, single point
of access for MDeC
services to external
customers
 Lean system for process
automation
 Online collaboration
tool & Dashboard for
traceability, tracking
and measurement
CROSS-DIVISIONAL IMPLEMENTATION
1) Each circle make up of cross
division members
2) Non-hierarchical
General - decision making is distributed
OE Circle 3) Each circle has role &
accountability
- at granular levels
Strengthen Workplace
- with clear purpose and
Brand & Culture measurement
Role Accountability
Brand Customer Centric Approach
High
Digital Performing Digital MDeC
Streamline, integrate &
automate internal processes
MDeC Culture Information Establish Information
Management Management Framework
Information Performing Improvement of Performance
Management Culture Management Model
Environment, Values &
Workplace
Communication

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iSHARE: MDEC’s EMPLOYEE PORTAL

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HR AVENUE: HR MANAGEMENT SYSTEM

WIP

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CUSTOMER RELATIONSHIP MANAGEMENT

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CUSTOMER
CUSTOMER RELATIONSHIP
RELATIONSHIP MANAGEMENT
MANAGEMENT

Quarterly Company Financial

Contacts
Reports Name Performance

Internal Compliance Core Client

Notes Report Activities Manager

MSC
Shareholder Interaction
Application Website
Structure History
History

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ePRF: E-PROCUREMENT SYSTEM

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 IMPROVEMENTS
IMPROVEMENTS
SUCCESS STORIES
(PROCESS & TECHNOLOGY)

“Purchase Order (PO)”

Improvements Made:
• Conversion of Approved EPRF to PO
• Manual signature of Procurement HOD on PO
• Collection of PO from Procurement Dept by User
• Conversion of hardcopy PO into digital format

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 KEY MEASUREMENTS

PEOPLE 1) Framework for optimization of resource allocation completed & action

plan implemented
2) # of staff trained in key skills / % training needs met
3) Turn over rate

PROCESS 1) No. of Process converted from manual to automation/flow of information

is being digitalized
2) % of turnaround time reduced
3) Customer satisfaction index (External Customer)

TECHNOLOGY 1) Completion of Enterprise Information Management framework

2) % enterprise data consolidated and accessible according to requirement
3) Uptime for major systems and services

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AGENDA

 Introduction of Operational Excellence (OE)

• Definition
• Components
• Characteristics

 MDeC Strategy towards 2020

 MDeC Approach for Operational Excellence
• Adoption of Operational Excellence by MDeC
• Requirement need to achieve Operational Excellence
• Focus areas and examples
• Measurements

 Conclusion

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CONCLUSION
CONCLUSION

Customer Satisfaction

Talent Development

Productivity Increase

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THANK YOU

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