Touch and go

Overview of company

Malaysians make advantage of electronic payments via the usage of the contactless smart card

technology Touch 'n Go. Tolls on roads, public transit, parking, and other services are all

accepted via this system, which was first established in 1997. The technology has quickly

become a preferred and widely used method of conducting cashless transactions in Malaysia.

Rangkaian Segar Sdn Bhd, currently known as Touch 'n Go Sdn Bhd, is the owner and operator

of the Touch 'n Go brand and Real Time Gross Settlement which were originally created by

Teras Technology Sdn Bhd. On March 18, 1997, the Touch 'n Go system made its debut at the

Jalan Pahang Toll Plaza. As soon as it opened on 15 April 1997, it was expanded to include the

toll plazas at Jalan Cheras and the East-West Link Expressway. On November 15, 1998, the

whole 848-kilometer-long Northern Route North-South Expressway Southern Route North-

South Expressway was equipped with the Touch 'N Go toll payment system. The expansion of

the service to the northern parts of the roadway between Jelapang and Jitra made this a reality.

One of the world's longest single segments of expressway, the smart card may be used to pay

toll from Kempas in Johor to Jitra in Kedah. The then-chairman of Rangkaian Segar Sdn Bhd,

Datuk Dr. Ramli Mohamad, presided over the ceremony, which took place at the Sungai Dua toll

plaza. Cityliner Sdn Bhd, a Klang Valley stage bus service, adopted the Touch 'n Go technology

in 2000. The card readers were outdated and often broke. A feeder bus service for PUTRA LRT

was also established by City Profile Sdn Bhd, another subsidiary of Park May Berhad, and was

effectively operated until the Rapid KL bus redesign program took place.

Business operation

Touch 'n Go is a complete electronic payment system that is used for a variety of reasons,

including the payment of tolls on roads, parking fees in shopping malls and public spaces, and
fares for public transit, such as buses, trains, and LRT (Light Rail Transit). Touch 'n Go was

designed to serve as a payment solution for a variety of situations, including those involving

public transportation. Users of this system have the ability to conduct transactions quickly and

without the need of actual money. The technology known as radio-frequency identification

(RFID) is what enables contactless transactions to be completed with these cards. Users can

simply reload cash onto their cards at predetermined places or via the mobile app, assuring that

they will never be short of money when it comes time to make a purchase. Mobile App: The

Touch 'n Go mobile app offers consumers extra ease for their usage of the service. They are

able to manage their accounts using the app, including seeing their transaction history and

monitoring their balances, by linking their physical cards to the app. In addition, the app enables

users to recharge their cards and offers real-time information on the availability of parking spots

and toll booths. large Network: Touch 'n Go has created a large network of acceptance sites,

which includes major roads, parking facilities, public transit networks, and even select retail

stores in a number of different locations. prizes and Promotions: To encourage customers to

use their Touch 'n Go cards, the company often organizes promotional campaigns and provides

prizes. These incentives can come in the form of rebates, reductions in the cost of tolls or fees

on public transit, or special discounts at partner retailers.

Organizational structure

The touch-and-go method need to be aligned with the goals. The objectives of the touch and go

strategy must to be reflected in the structure. It needs to be fashioned in such a way as to

provide the organization with efficient assistance in realizing its goal and vision. Ability to adapt,

the structure needs to have enough adaptability so it can accommodate shifting requirements

and situations in the market. touch and go need to be adaptable in order to react to changes in

the industry. Approach that Is Focused on the Customer, take into consideration how the
structure facilitates the supply of value to the consumers. The fulfillment of requirements and

expectations of customers should be at the forefront of the organization's design. Talent

Development, the structure of the company should be such that it encourages and facilitates the

development of talent inside the organization. It is expected to give staff with opportunity to

progress their careers and expand their skill sets. Assessing the structure's capacity to enable

both touch and go expansion and scalability is an important step in determining its sustainability

and scalability. It shouldn't be a barrier to growth, and it should be able to be maintained for the

long run. Accountability and openness: There should be accountability for the outcomes, and

there should be openness in the decision-making processes.It is important for workers to

comprehend how the business benefits from their individual contributions. Compliance with

rules and Regulations: Ensure that the organizational structure complies with any and all

applicable rules and regulations pertaining to the sector in which you operate.

what do you find in this organization in term of their presence from the beginning until

today

Electronic Transactions That Were Ahead Of Their Time TNG is a pioneering joint venture that

was founded in order to offer electronic payments for toll booths on Malaysian roadways. This

was a breakthrough move toward streamlining the process of paying tolls, lowering the amount

of congestion on the roads, and providing a handy alternative to financial transactions involving

cash. Because of how effective it is, the electronic payment method that TNG offers soon

acquired popularity among drivers in Malaysia. This led to the company's rapid expansion.

Users flocked to the TNG card, which eliminated the need for carrying cash and made traveling

on the highway more convenient. TNG increased its footprint in the market by establishing more

acceptance points at a variety of toll booths. In Addition to the Payment of Tolls TNG extended

their services to include payments for public transit after realizing the potential of electronic
payments. Since then, it has become an industry standard. Users would be able to preload

their cards with credit and use them for a variety of purposes, including paying tolls and using

public transit. Because of its multiple uses, this card has become a mainstay in the wallets of

many Malaysians. Integration of Mobile Applications: TNG has responded to the demands of

the modern day by releasing a mobile application. Users were able to use their cellphones to

manage their TNG cards, check their balances, and complete transactions thanks to this

functionality. TNG took a step toward digitization with the release of its mobile app, which also

provided consumers with more convenience. The Ongoing Development of RFID Technology

and SmartTAG: TNG has improved the speed and accuracy of transactions by using Radio-

Frequency Identification (RFID) technology for use in processing toll payments. Electronic

Wallet Touch 'n Go TNG developed the Touch 'n Go eWallet as a means of maintaining its

position as a market leader in the realm of digital payment systems. Diversification of Efforts

and Collaboration: TNG continues to expand its product and service offerings. It established

cooperative relationships with a variety of service providers, parking facilities, and retail

establishments. Using their TNG cards and eWallets, customers are now able to pay for

parking, make purchases at retail locations, and have access to services provided by public

transit. Dominance of the Market and Expansion Across the Region: TNG has reached the point

where it dominates the market in the electronic payment business in Malaysia.

Success factor or strategic planning

Since its inception, touch 'n Go has been in the forefront of incorporating cutting-edge

technologies, such as mobile app integration and RFID technology. Because of the company's

dedication to innovation, it has been able to maintain its position as a leader in the development

of electronic payment systems. TNG has expanded the scope of its services beyond only toll

payments. This diversity extends to areas such as public transit, parking, payments made in

retail stores, and even identity cards. Its position in the market has been reinforced as a result of
its capacity to provide a diverse variety of services. TNG has established strategic alliances with

a wide variety of stakeholders, such as those who operate toll booths, those who supply public

transit, those who run parking facilities, and those who run retail stores. A network effect was

produced as a result of TNG's early market debut and extensive adoption. As more people

started using TNG, it became the default option for making electronic payments, thus solidifying

its position as the dominant product in the market. TNG has been a consumer favorite as a

result of its user-friendly mobile applications, its quick and safe transactions, and its cashback

programs. TNG has shown that it is able to adjust to the constantly shifting circumstances of the

market. This adaptability has been essential in enabling a response to the ever-changing tastes

of customers and the development of new technology. TNG has increased its market presence

and diversified its sources of income by extending the availability of its services outside the

borders of Malaysia. This multifunctional electronic wallet enabled users to make a variety of

payments, which is in line with the rising trend of using mobile devices to make payments. TNG

has ensured that its toll collecting and payment processing systems continue to function

effectively and efficiently. As a result of these efficiencies, waiting times at toll booths have

decreased, and customers' overall experiences have improved. TNG has continuously

encouraged customers to use their cards by running marketing campaigns and offering various

types of discounts. Users have been encouraged to embrace and maintain their TNG cards and

eWallets via the provision of cashback benefits, discounts, and special promotions. The

business strategy used by TNG is one that is built with longevity and scalability in mind. The

infrastructure of the organization is equipped to manage growing transaction volumes, and its

services are flexible enough to accommodate future expansion. In Malaysia, TNG has

successfully developed a powerful brand that is widely associated with ease of use and

productiveness .
old practices and share their new practices

Staff member 1 TNG was a revolutionary concept when it was first introduced in the late 1990s

since it offered an electronic payment alternative for toll booths. In those days, users were

required to physically reload their actual TNG cards, which was the usual at the time. Because

cash transactions were so common, users were required to visit brick-and-mortar locations. Toll

booths and some transit services were the only places that accepted the card as valid payment.

The administration of accounts required a fair amount of physical labor.

Staff Member 2 The launch of the Touch 'n Go eWallet has been the most important shift that

has taken place recently. This represented an important transition toward the use of digital

payment methods. It is no longer necessary for users to carry physical cards since they may

now conduct transactions straight from their mobile devices. We are encouraging consumers to

conduct more cashless transactions by making it simpler for them to replenish their electronic

wallets using internet banking and credit cards. Our services now include paying bills for utilities,

buying online, and completing a variety of other retail operations. This expansion represents a

significant growth in our business. The mobile app has completely changed the way that

account management is done by presenting information in real time and increasing ease.

Staff Member 3 The overall experience for users has been significantly enhanced. Users have

more control over their accounts as well as access to them in real time thanks to the eWallet

and mobile app. They are able to monitor their account balances, see their transaction histories,

and take advantage of digital promotions. Users are really enthusiastic about the cashback

incentives and discount opportunities that we are able to provide for them. This strategy that is

favorable to users has been warmly accepted, which has encouraged more people to start using

digital payment methods.

Staff member 4: The use of new technology has been the driving force behind our

organizational change. Efficiency has increased thanks to the use of RFID technology for the

payment of tolls as well as devices such as SmartTAG. Users no longer need to stop at the toll

booths, which helps to keep traffic moving more smoothly. We are able to provide a wide range

of services thanks to our dedication to innovation and our willingness to embrace the latest

developments in digital technology.

Staff member 5 We have made it a priority to maintain our position at the forefront of the

evolving digital payment industry. Our priority will be on enhancing the customer experience via

ease, creativity, and flexibility. In order to cater to the ever-evolving requirements of our

customers, we will investigate newly developed technologies, broaden our existing network of

collaborations, and improve the quality of our existing offerings. We see a future in which TNG

plays an increasingly more vital role in the activities that Malaysians participate in on a daily

basis and provides complete financial solutions.

Do they use any specific theory in the organization to be competitive in promoting

The constant innovation and responsiveness of TNG to emerging technology are examples that

support the Innovation Theory. They do this in order to fulfill the ever-changing demands of their

customers and to maintain their position as a market leader by introducing innovative products

such as the Touch 'n Go eWallet and RFID technology. A strategy of market penetration, which

is a notion from marketing theory, may be seen reflected in TNG's extensive acceptance and

market domination. They were able to do this by selling pre-existing items (TNG cards) to an

already-established industry (toll payments) while simultaneously penetrating new areas

(eWallet, retail, etc.). Customer-centricity is a core idea in marketing theory, and it is the basis

for TNG's emphasis on enhancing the experience of its users as well as providing cashback

benefits and promotional opportunities. Customers who are happy with the product or service

are more likely to continue to use it and to promote it to their friends and family. A network effect
has been produced as a result of the proliferation of TNG's acceptance points and services.

This idea, which states that the value of a product or service rises as more customers make use

of it, is often discussed in the context of business theory. The role that TNG plays in creating a

cashless society is consistent with the wider notion of a cashless or digital payment system that

exists in both society and the economy.

What are the challenges they have experienced within the period of their presence?

The implementation of brand-new technology, such radio-frequency identification chips (RFID)

and mobile application software, was not without its challenges. These deployments required

substantial expenditures in capital, modifications to operating procedures, and user education.

Meticulous preparation was necessary in order to ensure a smooth transition to these

technologies and reduce the number of interruptions experienced by users. An intensive

instructional effort was required to successfully onboard people for newly released technology

and services. TNG was tasked with educating its user base about the use of RFID tags, mobile

apps, and eWallets, in addition to communicating the benefits of a cashless society. For this

procedure to be successful, appropriate communication tactics were essential to assure that

users would accept the modifications. The implementation of brand-new technology, such radio-

frequency identification chips (RFID) and mobile application software, was not without its

challenges. These deployments required substantial expenditures in capital, modifications to

operating procedures, and user education. Meticulous preparation was necessary in order to

ensure a smooth transition to these technologies and reduce the number of interruptions

experienced by users. .A change management strategy was required in order to accommodate

the transition from physical TNG cards to digital platforms. It required not just changes in

technology practices but also modifications in the behaviors of end users. It was a difficult and

complicated procedure to convince people to accept these new approaches while also
supporting a seamless transition. It was also essential for the company itself to have effective

change management in order to adapt to the new technology and procedures. One of the most

major problems with the Touch 'n Go system is the considerable traffic congestion that occurs

during peak hours at tolls, in particular all along the Duta-Ulu Kelang Expressway (DUKE).

Explain further the actions taken by these organizations when encountering conflicts or

problems within the organizations.

It is anticipated that TNG would make open communication inside the corporation a top priority.

This indicates that workers are encouraged to bring issues or disputes to the attention of their

managers, human resources departments, or management. It's possible that TNG has

developed communication channels for its workers to express their issues; these may include

frequent team meetings or suggestion boxes, for example. It is anticipated that TNG will have

mechanisms for dispute resolution that are clearly outlined. When a disagreement arises,

workers and management are expected to follow these processes, which specify the measures

they should take. These processes may entail official grievance procedures, informal

conversations, the participation of HR specialists or mediators, or a combination of these

approaches. The goal of mediation is to assist parties in a dispute in communicating with one

another and in arriving at a settlement that is agreeable to both sides. This strategy may include

less competition and more cooperation depending on how it's implemented. Training in conflict

resolution and interpersonal skills may be included in these programs for both workers and

managers. This provides them with the tools necessary to successfully avoid and manage

problems in the workplace. Larger organizations, such as TNG, may have teams specifically

committed to managing conflicts or personnel who have received training in conflict resolution.

These specialists are able to provide direction, assistance, and mediation services to assist in

the resolution of conflicts.

Question

1. Explain the concept of TNG cash transactions when it was introduced in the late 1990s?

2. Explain the impact of the transition from Touch 'n Go eWallet to users?

3. Do users have more control over their accounts and access to the eWallet application?

4. Explain the impact of using new technologies such as RFID technology and SmartTAG

devices?

5. What is TNG's strategy to meet customer needs in the future?

References

(N.d.-b). Retrieved from https://theorg.com/org/touch-n-go

(N.d.-c). Retrieved from https://www.touchngo.com.my/about-us/our-story/

Hooi, R. T. S. (2021). Retrieved from

https://www.thestar.com.my/business/business-news/2021/01/30/touch-n-go-sets-strong-

tech-goals

Kee, D. M. (2022). Have you touched? A case study of touch N go E-wallet. International

Journal of Accounting Finance in Asia Pasific, 5(1). doi:10.32535/ijafap.v5i1.1416

Loke, M. Q. (2022). Case study of touch ‘n go in Malaysia: Are you a user of E-Wallet?

International Journal of Accounting Finance in Asia Pasific, 5(3), 97–106.

doi:10.32535/ijafap.v5i3.1932