The Sdn Bhd Digi Telecommunications Information Technology Essay

Digi Telecommunications Sdn Bhd, a mobile communications company, provides wireless telecommunications services. It offers mobile and fixed telephony products and services, including prepaid, post-paid, and international services; and data services to individual and corporate customers. The company was formerly known as Mutiara Telecommunications Sdn Bhd and changed its name to Digi Telecommunications Sdn Bhd in January 1999. Digi Telecommunications Sdn Bhd was founded in 1995 and is based in Shah Alam, Malaysia. Digi Telecommunications Sdn Bhd operates as a subsidiary of DiGi.Co. (DIGI Malaysia, 2010)

Famous Year of happenings in DIGI

Digi was First telecommunication in Malaysia to launch and operate a fully digital cellular network.

1996

First GSM1800 operator to offer international roaming facilities. Besides, it digital cellular network to be operational in Sabah and Sarawak. Later on Digi offered information services, in the form of interactive Digi stock Services with Digi Stock alert (DIGI Malaysia, 2010)

1997

First operator to offer Digi guarantee, an exclusive customer benefits program And first company in Asia to be obtain the international roaming platform (IRP) and to commercially launch the use of the dual ¿½band mobile for use in GSM 900, 1800 and 1900 networks by offering the first global cellular service (GCS)in Malaysia. Moreover, Dig was first Telco to be listed on the Kuala Lumpur store exchange main broad under infrastructure project companies category. (Media Sugar, 2010)

1998

Digi launched the highly popular prepaid mobile phone service in Malaysia, (prepaid).first operator to offer innovative call programs that are designed for customer usage of mobile phones.

1999

Digi was the first GSM operator in Malaysia to provide automatic international roaming service to the United States of America. Besides, became the first prepaid service provider to introduce the new generation prepaid service which include quick mail service, voicemail and international roaming, first Telco to launch an innovative and interactive website in Malaysia as well as Asia. Known @Digi, it is slated to be one of the most interactive website in the telecommunication market. Later on Digi introduced e pay system for convenient airtime reloads for customers as e pay terminals are made availability at venues with easy accessibility.

(Chin Ming, 2010)

2000

The strategic alliance with Telenor international as was formed. Also, the name of dig Swisscom Bhd., the holding company of Digi telecommunication Sdh, Bhd, was changed to Digi .com berthed. Digi telecommunication launched the mobile phone banking service in Malaysia using the STK platform in collaboration with united overseas bank (Malaysia) Bethed. Digi Telco in Malaysia to align itself with MTV Asia, the top music channel in Asia, to bring to consumers an interactive and exciting music program, that marries technology and entertainment.

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Digi telecommunication Sdn. Bhd. (Digi) entered into an agreement with yahoo Asia to jointly create WAP-enabled online service. Few months later launched a revolutionary service in line with full deregulation. Known as Digi mobile one, this latest roll out promises substantial saving for all mobile customers. (Media Sugar, 2010)

An RM 800 million contract was signed with Ericsson (m) Sdn Bhd for the expiration of Digi¿½s existing GSM 1800 network to boost both coverage and quality of service. The contract includes the supply and implementation of GPRS technology. The iDigi, Digi¿½s new internet Dial ¿½up access service in the Klang valley, which ensures faster access speeds and reliability. The unveiling of Digi¿½s unique mobile internet portal with its highly entertaining, informative and useful services for customers who need and want greater mobility.

2001

Early march, Digi reaches its one million mobile subscriber mark due to the combined success of its innovative prepaid and post-paid mobile services. Digi¿½s first- ever MYV licensed SIM Card package and reload coupons was launched nationwide today. The Digi-MTV SIM pack and Digi reload coupons are the first of their kind to be released anywhere in the world.

Introduction of innovative Digi mobile movie booking service, available on Digi ¿½s juice WAP STK and SMS platforms, which enables Digi subscribers to make booking of movie tickets at selected Golden screen Cinemas, anytime and anywhere , using their mobile devices. Digi and GHL systems launch Whoops, a prepaid reload service that allows prepaid customers to reload their mobile airtime without any physical prepaid reload coupons or PIN numbers at terminal located nationwide. (Synovate, 2010)

Besides, Digi signs agreement with convenience Shopping Sdn Bhd, allowing customers to obtain Digi prepaid plus reloads and purchase chats 24 hours a day, at 7-Eleven stores located nationwide.

An alternative reload method using new interactive medium, started codes is launched by Digi to enable prepaid credit reload for its Digi prepaid plus customers. Digi becomes first majority foreign ¿½owned service provider in Malaysia with Telenors¿½s increased shareholdings in digi.com Berhed to 61%. Digi opened an inter-operator short messaging service (SMS) with all Telco in Malaysia. (DIGI Malaysia, 2010)

2002

First Telco in Malaysia to offer Automatic International Roaming and General Packet Radio Services (GPRS) to its prepaid mobile customers nationwide. And simultaneously launch an exclusive Loyalty Programme to reward its prepaid customers. Digi today becomes the first operator in the Asian region to commercially launch General Packet Radio Services (GPRS) on both prepaid and post-paid platforms. Later on DiGi establishes an e-commerce milestone through signing strategic agreement with MOL Access Portal Bhd tenable Malaysia¿½s first automatic online reload service for DiGi Prepaid Plus and the purchase of chatz¿½, it¿½s International Calling Card.

In the same year DiGi prepaid customers the country¿½s first auto reloads service via an alliance with Citibank. The service allows DiGi¿½s prepaid customers to perform automatic reloads using their credit cards (Synovate, 2010)

2003

DiGi signs a strategic agreement with Siemens Malaysia to upgrade its GSM/GPRS mobile network to next-generation wireless technology, introducing Enhanced Data Rates for Global Evolution (EDGE) in the Klang Valley. (DIGI Malaysia, 2010)

Early August, DiGi hits its two millionth mobile customer mark, through increasing customer recognition of its innovative mobile communications products and services. Later on DiGi becomes the first mobile communications service provider to launch Multimedia Messaging Service (MMS) for both its prepaid and post-paid mobile customers in Malaysia.

The launch of Beyond Prepaid, DiGi¿½s new prepaid mobile service with its intelligent automatic adjusting rates feature that automatically reduces call rates as the number of calls increase. Beyond Prepaid comes with a host of innovative features which include automatic international roaming, MMS, faster internet connection via DiGi¿½s GPRS network, call waiting, call divert and multi-party conferencing. (Biz Star, 2010)

At the end of that year, DiGi launches its straightforward and simple Horizon¿½ Postpaid service, offering post-paid customers an attractive choice between its easy-to understand Horizon Optimum¿½ and Horizon Premier¿½ price plans. Horizon Optimum¿½ utilizes DiGi¿½s popular auto adjusting rates feature which allows the rate per minute to be reduced with the amount of calls the user makes, while Horizon Premier¿½ allows customers to enjoy a value-for-money nationwide flat rate. (Biz Star, 2010)

Literature Review

Going Green

DiGi Telecommunications Sdn Bhd will invest up to RM100mil in its Deep Green programme that, among others, targets to reduce its carbon dioxide (CO2) emission by nearly half within four years.

According to Chief Executive Officer, Johan Dennelind, he said that the company released about 130,000 tons of CO2 yearly and it aimed to reduce the amount to 70,000 tons in three to four years. He also said that they are trying to create awareness among employees and community on the climate change.

Dennelind also stated that it was an aggressive ambition by any telco to reduce its CO2 output substantially in such a short time. The company would start by creating higher awareness on climate change among its various stakeholders, including employees, suppliers, customers, business partners and the local communities. Digi telecommunication might spend around RM50 million to RM100 million over the next 3 years according to the Chief Executive Officer, Johan Dennelind.

DiGi head of strategy and new business Albern Murty said the company was taking small steps to address the issue via e-billing its postpaid customers and re-evaluating its tenders with suppliers. He stated that ¿½We are in the process of integrating our suppliers into the Deep Green value chain by incorporating specific environmental requirements into our procurement policies and procedures,¿½.

Head of human resources development Adzhar Ibrahim said DiGi had also introduced a carpooling programme among employees and better energy management of its buildings. As part of the Deep Green initiative, DiGi¿½s first project would be the Deep Green Now (Nurturing Our World) programme which would focus on making the local communities aware of climate change and local environmental issues.

Dennelind also said that DiGi¿½s goal was to slash its carbon emissions by 50% by 2012. Among the company¿½s green initiatives, DiGi recently organized the Challenge for Change competition which saw teams from eight local universities participating in a six-month programme to develop energy solutions. Saturday August 23, 2008 star

DiGi iPhone: ¿½New Super Low Pricing¿½ and Packages

DiGi in MALAYSIA is now offering even more affordable plans for iPhone starting from only RM60 per month. The iDiGi 88, 138 and 238 have been reduced to RM60, RM90 and RM160 monthly respectively. The pricing for iPhone 3GS (32GB and 18GB) and iPhone 3G has also been slashed significantly. Based on figure 1 below, we can see the changes. This is one of the IT plan under the marketing strategy.

DiGi teams up with cineplexes to pamper customers

Malaysia’s most innovative telco, DiGi, scored another first with the recent launch of DiGi-dedicated cinema halls known as the DiGi Movie Halls to pamper customers with privileges that make them the envy of others. This is one of the strategies to offer their customers quality service.

To celebrate this, DiGi customers were treated to a Movie Marathon Carnival in Kuching, Miri, Penang and Johor Baru over three Saturdays, with each hall showing three consecutive blockbuster movies.

Besides free movies, these high-value customers, who are frequent and long-term DiGi users, also enjoyed unlimited free popcorn and soft drinks during the carnivals.

DiGi’s Chief Marketing Officer, Mr Chee Pok Jin, stated that “The DiGi Movie Hall Adoption Programme is part of our marketing strategy to offer our customers quality services beyond mobile communications, with strong elements of fun, entertainment and even educational.” He also stated that this is a way to pay the loyalty by DIGI users.

The DiGi Movie Hall Adoption Programme involves DiGi collaborating with selected cinema operators to dedicate a hall each to DiGi. The cinemas currently in partnership with DiGi are Star Cineplexes in Kuching, Miri and Sibu and Mega Pavilion Cineplexes in Johor Bahru, Penang, and soon to be in Kota Kinabalu and Cineleisure Damansara . DiGi will give the selected halls a strong and yet tasteful presence of DiGi branding designed to give DiGi customers, who are naturally patrons of the cinema partners, a sense of pride and exclusivity as they are treated to a slew of special offers, including six free movie screenings a year. Figure 2 below shows the crowd outside a DiGi Hall at the recent Movie Marathon Carnival held to celebrate the launch of the DiGi-dedicated cinema halls in Penang, Johor Baru, Miri and Kuching.

Digi¿½s Conjuction with Macera¿½s Technology

Macera Technology Sdn Bhd was founded mid of February 2005 with the goal to provide high quality products and services using the best that technology has to offer. Their mission is providing quality entertainment and services to their customers. They have also obtained certification of being a full fledged Multimedia Super Corridor (MSC) status company.

In conjunction with Macera¿½s partnership with DiGi, the Yellow Coverage Fellow (YCF) finally makes its debut appearance in a mobile game!

Play as the ever famous YCF character in completing specific level objectives in Career Mode, flying through the skies of Malaysia, Asia, Africa and Europe while achieving ¿½widest coverage¿½ possible.

Capital Growth

DiGi.Com Bhd posted a 18.72% increase in net profit to RM278.4mil for its second quarter ended June 30 compared with the previous corresponding quarter due to improved earnings before interest, tax, depreciation.

The increase in profit was a result of a flow-through of improved Ebitda, coupled with the absence of accelerated depreciation on certain end-of-life equipment which was recorded in the same quarter last year,¿½ according to the notes accompanying its result filing with Bursa Malaysia yesterday.

Earnings per share for the quarter were 35.8 sen compared with 30.2 sen last year. In terms of revenue, DiGi recorded a 10.8% increase for the quarter to RM1.33bil due to increased usage and a larger customer base of 8.1 million. Chief executive officer Henrik Clausen said DiGi recorded higher traction on postpaid and data revenue driven by handset bundles and attractive data plans.

DiGi declared a second quarterly interim dividend of 35 sen per share, equivalent to a payout ratio of 98% of net profit, for the financial year ending Dec 31, to be paid on Sept 24.

AmResearch said DiGi¿½s latest results were within expectation although subscribers¿½ addition was much slower than the preceding quarter.

DiGi Telecom Unveils New Brand Positioning

RM9 million invested for new brand advertising campaign

DiGi Telecom recently unveiled its RM9 million corporate brand advertising campaign, aimed at positioning DiGi as an innovative, contemporary and world class brand that offers lifestyle-centric, relevant and quality services that fit the needs of our customers.

The new strategic direction is set to create a new brand personality that appeal to the different market segments from the youth to young professionals to corporate figures.

Understanding that people are different in more ways than one, the brand positioning is built around these values:

¿½ Innovative — brand that offers better products and services that will enhance the customers’ mobility

¿½ Contemporary – brand that evolves with time to keep up with customers

¿½ World class – brand that is perceived to have international status

¿½ Lifestyle centric – brand that understands the lifestyle needs of the customers

The main objective of this advertising campaign is :

¿½ To position DiGi as an innovative and contemporary brand among current and potential mobile phone users with strong appeal to the youth and business markets

¿½ To position DiGi as a lifestyle-centric telco that understands the consumers and their needs which summarises DiGi as the only brand that develops its services and products with people in mind

¿½ To improve consumers’ perception of DiGi’s service capabilities and strengthen the brand’s imagery and credibility

¿½ The advertising campaign speaks aloud DiGi’s ability to understand the various wants and needs of individuals. A straightforward and down to earth approach is used to communicate this via its visuals.

The visuals used depict two individuals having different thoughts despite being in the same environment. The images illustrate how today¿½s generation think is and behave and in that it demonstrates independence, self-confidence and individuality, some of the varying characteristics in people. DiGi’s primary objective is to create an emotional bond with consumers by understanding their individuality, which is cleverly positioned by the headline of: We know how different people are and what it takes to keep them connected.

Digi Advertisements

Issues that need to concern when adopt IT for an organization.

Positive issue

Nowadays IT plays a vital role in an organization, and also in Digi telecommunication.

COST REDUCTION

Many studies emphasize the positive implications of IT on cost in organizations, especially in the areas of cost savings in staffing, communication, production and storage. Studies particularly that of Chan (1992), Lee (1993) and Venkatraman (1986), support the argument that IT implementation in organization reduces the cost of operation. However, other authors, for example, Weill (1988) argue that IT adoption in organization does not reduce cost. They view the financial benefits from IT investments as a long-term project that requires time to come about and are really skeptical that IT investments will yield any benefit in financial terms in the short run.

COLLABORATION

Strategic alliances with both competitors and other competitive forces in the value system are now recognized as one of the key strategies adopted by many organizations. The objective of loosening external boundaries is to create not only a more effective organization but to make a stronger interactive group out of organizations that share a value chain (Askenas, Ulrich, Tick and Terr, 1995). There is an enormous need to join forces to drive technology, expand distribution, enter new markets, ensure sources of supply and match end-users’ expectations. The underlying assumption is that sources of competitive advantage lie partly within a given organization and partly in the larger business network. Using IT, suppliers, buyers and competitors are linked together through a strategy of electronic integration

(Venktraman, 1986; Chan, 1992).

FIRM AGGRESSIVENESS

Aggressiveness refers to sacrificing profitability to gain market share, cutting prices to increase market share, seeking market share position at the expense of the cash flow and profitability. Chan (1992) uses aggresivessness as a differentiation technique, which entails creating unique

products or services being offered by the firm to differentiate in the market place. Chan (1992) and Lee (1993) reveal that the use of IT in business organizations is positively related to the

firm’s aggressiveness, and business performance, on a general note, is positively influenced.

Risk Factors

Fear of losing data or electronic files. For an example, if the system is down, employees tent to face problem. Not only that, sometimes other people might tent to steal the information which might give them to know what are the companies plan and maybe the financial statement.

Besides that, decrease in person-to-person contact. This will lose once speaking skill and quality of it. Furthermore we also won¿½t no what are the actual problems faced by the customer. This is because the customer might not know what the real problem is. Moreover less tolerance for errors .in addition, frustrations with co-workers who are not up to date. Not only that, they might also have overload of data and information. This is also a risk for the Digi organization.

IT and Human Resources

In this digital era where people are more into the communication sector, successful management of the human resource has been one of the major hurdles in the path of all telecommunications giants across the world. According to Wikipedia, human resource is described as ¿½a term used to describe the individuals who comprise the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations.¿½

Now traditionally speaking there were no committed pool of individuals who implemented successful strategies to keep the workforce alive and motivated. Now with all the latest advancements the information technology, all process and progress by the entire workforce are directly monitored digitally. Here any local supervisor isn¿½t required to monitor each and every activity of the human resources.

By the increasing advent of the information technology it in has become easier for the human resource department to execute tasks like for example recruitment and employment of the applicants, data analysis based on the qualification and the statistical information as well as the records of the applicant, training and well as administration benefits.

The distinctive value of Information Technology is not at all realized until it really touches the everyday life of people and their businesses. In any kind of organization the IT system tends to make the work and even life easier of the senior managers to the junior staffs. Based on all the needs and requirements DiGi has successfully created an IT based system which is much simpler and less time consuming in the processes implemented by the human resource department.

DIGI telecommunications use following types of ways based on information technology to make their job easier and faster. The different types of IT devices are used in the areas like employee recruitments, staff managements and also keeping an eye on the employees in the organization.

Recruitment and Selection process

DIGI has the policy of distributing questionnaires as well as recruitment forms online for the people wanting to apply for a job at DIGI whether a full- time or a part- time. The application form can be found in DiGi¿½s home website which is www.digi.co.my. There is a simple process in obtaining the form as one just needs to click in the drop down menu and then download it.

Added benefits have been provided to the applicants, as they are given with a choice to both print out the application and then send it by post or they can simply fill the application online and then send to the administration through the web. Choices can be made according to preference and keeping in mind the time factors. After this process the human resource department obtains hundreds of applicants interested for a job at DIGI, then the managers at the HR department carefully checks the forms and short list few of the well deserved applicants.

Then after this process an automatic email is sent to all its applicants for the status as well as the result of their application. Short listed applicants are sent a different email inviting them for an interview so that the best can be selected and then employed in the post after negotiating things. Now the IT system being used here has created a positive impact on DIGI. The web site automated system not only saves time but also saves money and resources required for direct recruitment of the employees.

The online system is more reliable, faster as well as cheap compared to having the traditional ways of recruitment which is based on face to face interviewing of each and every applicants applying for a job at DIGI.

Staff Management

DIGI also uses the automatic staff management system based on the information technology. It has created a digital structure in the system which keeps all the records on the employees currently working or left the company, the absenteeism rate of the employee, employee trainings, statistics of the number of part time as well as the full time employees, list of all the outlets and the person in charge of that area.

With all these information it can directly monitor its workforce and implement any changes or policies they require to.

Customer Service and Queries

DIGI provides its customers with a wide range of after sales services like telephone queries through hotline, face to face interaction and the most used which is the online solution menu. In the online system DIGI has created a separate server for its customers having to face any problem using its products or services. The customers can simply go to the website and to the query section. They can find a list of FAQ¿½s there which generally means ¿½Frequently Asked Question¿½ or they can directly type out their query and send it to the administrators online.

DIGI answers to all the queries in between 24 hrs to all its customers. Due to the effective use of the IT system here all these processes have been easy which directly results in more customer loyalty and a successful brand image in the market.

The technical field of the human resource department using the IT resource in DIGI encompasses the level of management for recruitment process day-today employment practices, job description and termination. All these sectors have been easy to use because of the advent in IT resources. Indeed the role of IT in the workplace has the entire company move forward in creating a systematic order to function.

IT and Finance

Today organization is striving towards having a settled balance sheet and payroll system. All these important tasks have been carefully monitored and implemented by the use of an effective information technology. DIGI aims to provide an unbiased and consequential estimation of the group¿½s financial performance and prediction primarily through the annual report, quarterly financial statement and analyst presentation.

Here following is the official financial statement as well as the overall account of DIGI and its overheads. Before that Digi uses automatic system which records the financial status of the organizations like having automatic entry system which is far more advanced then ledger system. These systems automatically process multiple information and file it in the organization database. This not only saves time but also is safe and secure. The IT based calculations give accurate results which is not possible manually.

Next is the automatic payroll system of Digi, which comprises of information of its employees and their pay. This system figures out the correct pay rate and time of each and every employee working under Digi telecommunications. This has made things easier for the administrative staffs of Digi in handling its employees as well as workers.

So, here is their Financial statement for the year 2009-

Analysis

DIGI usage of IT

Nowadays, every company is trying to offer the best services that would impact customers. However, Digi Company is the most successful telecommunication in Malaysia. Digi is also known as the first Telco to launch and operate a fully digital cellular network in Malaysia. Not only have that, but also the first company to offer GPRS (2.5G) and later EDGE (2.75G) in Malaysia, and using GSM1800brand with the network coded of 50216 recently.

Digi believes that, innovation products and services are the most important reasons for success, would enhance to meet the service assurance demand of its customers, it¿½s very important to make sure that there is strategic support in terms of the operation of innovative information technology solutions for DIG¿½s product growth imitative. One of the key focus areas in this respect is that of Digi billing system, where there is a fast increasing need for more comprehensive and competitive settlement capabilities that will ensure that the billings are punctual and precise from both a subscriber and intersect perspective.

However, the new generation technologies, such as short messaging service (SMS), wireless Applications protocol (WAP) and GPRS, has resulted in growing demand for flexibility in terms of provisioning of personal and differentiated service billing capabilities. Digi has already taken first steps in this direction through its new partnership with SCS Computer Systems Sdn Bhd for the completion of the interconnect Billing and settlement system (IBSS), a high ¿½end key to mange interconnect billing with other Telco and value added service providers, both countrywide and globally.

Among other thing, this viewed project is certain to position Digi favorably as a service provider that ensures the end to end workability of its services and applications towards delivering the highest values of customer satisfaction

Digi main products are telecommunication services and mobile services. However, there are so many sub-products and services which make Digi always the best. Offering a complete variety of affordable, convenient and easy to use wireless services to simplify and improve the lives of its customers. Digi creates value for its customers by selecting the most suitable cutting edge technology so that they get benefits from goods and services that give them alternative, ease and organize.

Moreover, Digi has founded presence as a principal in voice and data prepaid services with a number of firsts that have set industry level for creativity and innovation. These services are offered under the DiGi Prepaid brand name. Digi¿½s postpaid services under its postpaid brand name deliver high quality voice as well as value-added mobile content and data services to both individual and corporate customers. Besides, DiGi Telecommunications gives a lot of mobile communication services. These services include voice under their prepaid plans and postpaid plans, SMS, data plans and services, international roaming, international calling card and WAP services.

Digi is using high technology by offering a lot of online services for its customers such as, customer¿½s online services and online sales. However, online services help customers to pay their bills, to buy products and so on. Using this technology would satisfy customers who do not have time to go a Digi center to make bill payment and also helps customers to be always informed about any new promotions in Digi. Besides, Digi is using internet to market its products and make online sales by using a website like www.digi.com. Thus customers can select their products or other services and pay online.

Digi has recently introduced Synovate Views Cast Customer Satisfaction Measurement (CSM) technology which allows customers respond to recorded voice ¿½prompted questions by pressing a button on their cell phone keypad. When customers finish their interaction with Digi cell center, Synovate View cast invites them to participate in an automated survey. The survey collects their feedback on call centre performance, friendliness, data, capability to resolve matters and overall satisfaction. It also lets customers give voice comments

Moreover, Synovate Views Cast gathers customer feedback precisely and fast and the results are analysed routinely and made available instantly via a dedicated Internet site. This allows DiGi¿½s call centre managers to evaluate overall service performance, call centre functions and individual staff every day. The economies of Synovate Views Cast have made nonstop, real-time tracking of effective performance for DiGi a practical reality, enabling DiGi to continually observe and develop their service. However, this type of technology helps Digi to resolve customer issues and take their opinions at the same time.

DiGi¿½s values, including its commitment to customer satisfaction, make it one of Malaysia¿½s best respected companies and a place where people want to work. Moreover, this system helps management to recognize mistakes quickly and mak