INTRODUCTION TO

DIGITAL
ENTREPRENEUSHIP
The Major Concepts of the 4th Industrial
Revolution (IR4.0)

“A basis of digital transformation,

particularly the so called foundational
transformational technologies: Artificial
Intelligence (AI), Blockchain, Finance
Technology (FinTech) and Internet of
Things (IoT)”
IR4.0 in Definition
Kagerman,
• The concept of Industry 4.0 in the production sector implies the use to the
Helbig, maximum capacity of the power of communications technology and
innovative inventions to stimulate the development of production
Hellinger & technologies.
Wahlster, 2013

• Stated that Industry 4.0 could ensure the real development of companies
Qin, Lui & by generating a reliable production environment.
• An important role is played by the intelligent data collection and
Grosvenor, interpretation, the correct decision making, and their timely
2016 implementation as a result of using the most advanced technologies,
which allows faster data collection and interpretation procedures.

• Emphasized the network of advanced technologies in the value chain.

Schumacher, • Services, automation, robotics, artificial intelligence, the Internet of
Things (IoT), and additive manufacturing are the elements that will
Erol & Sihn reshape businesses in different industries.
IR4.0 Entrepreneurial Culture
1. Transformed, more demanding, and conscious customer
expectations.
2. Products routinely and quickly enhanced by data, which
improves asset productivity.
3. New partnerships being as companies learn the importance
of new forms of collaborative innovation and the values of
the circular economy.
4. Novel operating models and organizational forms which are
on one hand more automated, on the other flatter and more
peer to peer.
Advantages of the IR4.0
• Increasing economic efficiency
1
• Increasing labor productivity
2
• Flexibility and intelligence
3
• Reducing manufacturing cost
4
• Increasing returns on investment (ROI)
5
• the latest technologies will lead to the creation of new jobs, and
6 there will be new production areas.
Disadvantages of the IR4.0
The reduction of creativity can
occur due to the automation
of machines and the
disappearance of human
capital from the production
technology.
The time frame for
Increasing the unemployment
implementing Industry 4.0 is
rate, at least in some areas,
relatively large and requires
can be another negative
efforts throughout industry.
effect.
Initial costs are high.

Training with employees is required The complexity of the tasks

for new technologies. Apart from
the maintenance provided to the
production technologies of Industry
4.0, human capital must be trained
in order to implement, operate, and
maintain the automated systems
properly and to ensure their
continuous operation.
reduces its abilities. Although
the production technologies
of Industry 4.0 lead to an
increase in product quality,
they have not yet been able to
solve the problem of
sophisticated production.
Specific technologies and
equipment that are
incorporated in the production
facilities of
Industry 4.0 have a substantial
effect on the environment.

The automation of
manufacturing
technologies, and job
computerization have
dislocated much of the human
capital, causing a new
reconfiguration of it.
Digital Era in Malaysia
 The digital era is a growing development in technological change and has a direct impact on the
economic landscape in Malaysia. This digital-based economy involves the rapid use of information
technology due to the urgent needs of today's internet usage.

 The Internet is a very powerful communication tool in business (Bernama, 2013).

 This is because, an entrepreneur can save business time, promote or advertise products and reduce
operating costs and be able to expand strategic alliances faster and more efficiently through online
business.

 Statistics show that in 2018 internet users in Malaysia are 25.08 million people with a population of
31.83 million people compared to 2012 which is only 18 million people (Astro Awani, 2018). This
shows the positive development of the Malaysian population on the need for internet in daily
activities is becoming more important such as business affairs, public services, facilities, education,
industry, and so on. For example, the need for the use of public vehicles such as the use of the Grab
application online, where using smartphone-based technology and able to facilitate users (Sinar
Harian, 2019)
Digital Era in Malaysia (Continued)
 This development, is a phenomenon called the Industrial Revolution 4.0. The Industrial Revolution
4.0 or IR 4.0 according to the founder and Executive Chairman of the WEF (World Economic Forum),
Klaus Schwab, through his book The Fourth Industrial Revolution explains, Industry 4.0 is changing
the way we work and live.

 These changes are driven by three key technology domains namely physical, digital and biological
across the nine pillars of Industry 4.0 (refer to Figure 1), including simulation and virtual reality,
vertical and horizontal system integration, Internet of Things (IoT) industry, cyber security, cloud
computing, manufacturing of additives, supply chains, data analysis and robot automation. (Daily
News, 2017).

 The digital era is a growing development in technological change and has a direct impact on the
economic landscape in Malaysia. This digital-based economy involves the rapid use of information
technology due to the urgent needs of today's internet usage.
Figure 1: Nine Pillars of Industry 4.0
Sources: Berita Harian, 2017
Digital Era in Malaysia (Continued)
 Statistik pada tahun 2018 menunjukan 24 juta orang penduduk Malaysia yang menggunakan internet
aktif menggunakan Media Sosial dan memperuntukan purata tiga jam sehari di laman media sosial
(Astro Awani, 2018).

Figure 2: Digital Report 2018, Statistics of

Internet and Social Media Users in Malaysia

Sources: Astro Awani, 2019

Digital Era in Malaysia (Continued)
 According to Hootsuite in the 2019 Digital Report, Malaysia has ranked fifth in the world and the top
spot in Southeast Asia in mobile social media penetration with 80% spending an average of 8 hours 5
minutes a day online (Utusan Online, 2019). Among the social media that is widely used in Malaysia
are Facebook, Youtube and Instagram.

 Based on Hootsuite in Digital Report 2019 has also stated that Facebook still remains the most
popular social media network in the world and can now reach 2.121 billion Facebook users through
Facebook ads. Instagram, on the other hand, has a lower number of active users than Facebook,
which is one billion users. Online business marketing is seen as an appropriate tool to continue to
grow the business especially globally. This shows that people prefer to buy and sell a product online.

 The rapid development in the digital economy has led to widespread electronic use in various areas
of business. As an entrepreneur and would-be entrepreneurs today need to be prepared to face the
technological changes of the digital era. This is because, today's business is more global and requires
wider and borderless access.
Digital Entrepreneurship : Market Trends
1. Mobile Universe;
• Mobile technology is an area with
endless possibilities for creativity and
innovation. Data usage for smartphones
and tablets impress even the most
optimistic proponents of technology. By
2015 there were 3.2 billion people
connected to the internet around the
world – a promising market to be
explored.
• Opportunities are concentrated mainly
in the mass market, called Business to
Customer (B2C), with a trend of
exponential growth in the coming years.
2. Augmented Reality;
• Augmented reality is the intersection
between the virtual and the real world.
Through smartphone and tablet
applications or specific devices, it is
possible to design virtual objects in the
real physical world.
• Through augmented reality, a consumer
anywhere on the planet can visualize an
object in three dimensions and even test
it without any physical contact.
Applications today are still expanding,
and this is an area of great opportunity
to be explored.
Digital Entrepreneurship : Market Trends
(Continued)
3. Big Data; 4. Social Media;
• Big Data is a term used in Information • The advent of technology has also
Technology to designate a large amount increased the socialization of people
and complexity of stored data that through networks of information
conventional applications can not sharing people.
transform into concrete decision making. • Social media has a wealth of highly
• The big opportunity for Big Data will be strategic information for any
to provide rich analytics for decision business and is increasingly being used.
makers. For example, “How does climate • Opportunities focus on the increasingly
influence retail purchasing decision common customer relationship and
making?” Or “how much time a person customer service.
stays in a store can impact the average
ticket of your purchase?”
Digital Entrepreneurship : Market Trends
(Continued)
5. Multichannel Retail;
• Also known as omnichannel,
multichannel retailing provides customer
relationship opportunities through
physical and virtual channels, sometimes
even simultaneously.
• Providing new ways to integrate physical
and digital channels to provide new Resource :
shopping experiences is a timely trend https://www.ilhasoft.com.br/e
that has been gaining strength mainly n/digital-entrepreneurship-
with the advent of e-commerce in know-the-top-5-market-trends/
Malaysia
Digital Marketing - Definition

“Using digital channels to

promote, or market,
products and services to
consumers and
businesses.”
Digital Marketing Institute, 2016
Traditional versus Digital Marketing
• Traditional marketing now integrates
with digital, greatly enhancing the
communications mix.
• The digital medium liberates from
publishing or broadcasting schedules,
from budgetary or calendar schedules,
and from geographic limitations.
• Recognise that the marketing medium
(TV, Radio or Print) constrains
marketing content: to fit in with
programming schedules, print
schedules and geographic boundaries.
• Digital marketing anticipates an open
engaged approach with the consumer
• with unique levels of targeting and
accountability.
• Digital marketing is characterised as
“consumer driven” through
personalisation, with new expectations
around content in tune with consumer
interests – it is also an interactive form
of communication, consisting of
listening, engaging, and sharing.
Channels
o The primary digital marketing
channels are: Search Marketing
(SEO),Search Marketing (PPC),
Email Marketing, Digital Display,
Social Media Marketing and Mobile
Marketing.
o Analytics and Strategy and Planning
help us to bring our throughout all of
these channels together in a
cohesive way.
Market Research versus Market Reality Copyright MDEC

▪ The primary challenge for any business, no matter how

large or small, is quite simple—how to get its product or
service into the hands of the customer.
▪ How the company will achieve this is informed by
Market Research, gut instinct, polls, surveys, and
research about existing habits and activities.
▪ However, when conducting market research, especially
surveys, we need to take one key factor into account—
people lie!
▪ The Internet enables us to learn from Market Reality by
looking at what people actually do online. We can use
social listening tools to research customers' activities
and preferences based on their online habits and to
complement our market research, as shown in Figure.
▪ By accessing this market reality, our product is better
targeted and our chances of a successful go-to-market
strategy are greater.
▪ However we must always remember that digital
marketing relies on ‘market reality’ and not just ‘market
research’.
Advantages of Internet Business Copyright MDEC

 Potential Access to a Global Market;

The internet is an excellent tool for increasing the visibility of your business. The
internet overlooks physical borders, thereby giving your products and services
heightened exposure to a global audience. This can lead to increased sales, as your
business offer reaches new markets that would otherwise be beyond your physical
reach, especially if you are a small business owner.

 Reduce Marketing Cost;

With the rise of the internet, there has been a huge increase in various social media
platforms. These platforms that are designed to connect people with one another
become powerful, relatively low-cost marketing channels that can be utilized by both
large and small enterprises. The internet means that you can put your products and
services right in front of your target market without using the help of a formal
marketing agency to do it for you, but at a much greater cost.
Advantages of Internet Business Copyright MDEC

(Continued)
 Reduced Building Overhead;
Many jobs and business functions can be performed online. This means that
incorporating the internet into your business functions could open up an opportunity
to have remote staff who can work from home, thereby reducing the cost of having
an office building.
 Automated Systems and Resource Sharing;
The internet has enabled a million and one ways you can make your life easier as a
business owner. You can do your bookkeeping and customer service care online, and
get bespoke solutions that automate how customers purchase your goods and
services. In short, it can streamline processes while saving valuable work hours from
performing tedious tasks. In addition, the internet enables you to share knowledge
and information quickly and easily. Whether you are sharing documents or best
business practices, emails, apps, webinars and everything in between, sharing
resources has become easy and efficient.
 Copyright MDEC

Disadvantages of Internet Business

Potentially Lower Profit Margins;
The internet has upped the market for many different types of businesses. Although
this has made it easier for customers to access your products and services, the
internet has also made it easy for customers to access the products and services of
your competitors, as well. To be at the forefront of customers' minds, businesses
have resorted to slashing prices drastically, which has also drastically reduced profit
margins. If you conduct your business on the internet, prepare to lose sales if
customers can find the same product on the market at a lower cost.
Reduced Physical Interactions;
Some of the most creative ideas are borne out of the face-to-face interactions that
people have with one another. While the internet has succeeded in connecting
people to one another in a superficial way, it cannot adequately replicate the human
interactions of interacting face-to-face with colleagues and customers.
Disadvantages of Internet Business Copyright MDEC

(Continued)
Negative Reviews;
People now take to social media to voice their concerns and their viewpoints about a
business. People are more likely to complain than they are to compliment a business,
and this can damage the reputation of a company. Plenty of examples can be found
of complaints that have gone ‘viral’ and that have forced businesses to change their
strategies or change their products, resulting in a loss of revenue.

Resources : https://smallbusiness.chron.com/advantages-internet-business-
317.html