The Largest Gold And Jewellery Integrated Manufacturers

Published Date: 02 Nov 2017

Tomei is one of the largest Gold and Jewellery integrated manufacturers and retailers in Malaysia, which has 75 branches across Malaysia, five branches and one factory in Vietnam and 12 branches and two factories in China, with 850 employees within the group. The company consists of three businesses, which are Gold and Silver Bullions, Certified Diamonds, Jewellery and Built Yours Own Jewellery where it offers its customer with the broadest range of products and services. Tomei operates with many different Business Units, which are each responsible of a variety of products, of use marketing tactics, and sales order fulfilment and on-time delivery.

The nature of current market has seen increased levels of competition. The company objectives are; increasing its market share and online shopping experience, create new products, reduce costs, and develop a very efficient team that will meet the business goals. Tomei top management has identified some strategies and business initiatives; develop a marketing awareness program through aggressive interactive marketing, engaging customer and potential customers in creation of new goods and services, streamlining the business processes, and adopt an e-business approach in all its business units that enabled to gain a competitive edge.

It is worth noting that with the advent of the Internet technologies and the innovations in the mobile technology, as many organizations are changing the way, they are doing business locally and globally. The biggest challenge is the adaption and integration of the IT capabilities and the business demands. Tomei also has to integrate its back-end Enterprise Resources Planning (ERP) information systems with the business processes, which may require having some program modification and customisation. This involved additional IT budget for the technical consultancy costs, infrastructure costs, and hire or train skilled (IT) labour. The company has decided that each business unit shall fund this ambitious process.

Research Objectives

The core objectives of this study are listed as follows;

To identify how Tomei will increase its marketing awareness on an online platform,

To examine the impacts in Tomei balance sheet will have when it adapts e-business,

To identify how Tomei will increase its consumers engagement on an online environment,

To identify how Tomei will convert potential consumers into regular customers,

To identify how Tomei will increase its online shopping presence,

To establish how Tomei will lower its running costs and,

To identify out how Tomei will increase its market share.

Literature Review

E-Commerce Technology Resource

E-Commerce has two facades, the business side and the electronic side. From the business perspective Halim, Musa, Embat, Amin, Muda, & Noor, (2012) say e-commerce is doing paperless business and receives support by computer systems that have very dynamic technology, which comprises of messaging system, check, payment and product delivery. Turban (2008) as cited by Halim et al. (2012) says that businesses will search customers and suppliers, do business negotiations and contracts online, as well as signing of agreements and payments through a secure channel over the internet.

Halim et al. (2012) while quoting Keen, (1991); Niederman, Brancheau and Wetherbe, (1991); and Weill (1993) say that Technological Infrastructure in an organization can be implemented to achieve a competitive advantage, and our competitors cannot imitate because the technology and skills, and information technology infrastructure is seen as a strategic resource and as a potential source of sustained competitive advantage. On the other hand, Hayes & Wheelwright (1984), Barney (1986) and Points et al., (1995) as cited by Halim et al. (2012) contrast that Information technology does not give a business a competitive advantage as infrastructural technology and technical skills can be replicate or acquired anytime. While not completely agreeing nor disagreeing Bharadwaj (2000), argues that for a competitive advantage infrastructure technology has to coordinate with other components of a business as cited by Halim et al. (2012).

Halim et al. while quoting Weil and Broadbent (1998) say that the process of developing integration infrastructure takes a lot of time, effort, learning experience and financial risk. Halim et al.(2012) concludes that competitors should expect varying results, when they invest in information technology. Therefore, when a business process is integrated it allows the user to interact with the system with the following devices; personal computer, mobile devices like smart phones and internet infrastructure to provide connectivity.

E-Payment in Malaysia

E-Commerce and E-Payment in Malaysia have seen a change in the way businesses, and customers pay for their goods and services. The online transactions can be done 24 hours a day, all week, throughout the year, and globally without boundaries or geographical restrictions, unlike physical payment channels (Danial & Sadeeq, 2012).

According to Danial and Saddeq (2012), with the significant growth of internet users and connectivity in Malaysia, this has offered more Malaysians an opportunity to transact online than before, thus the need for electronic payment. Franklin, James, and Philip (2002) say that the ability of financial services and markets to use electronic communication to offer online credit payment underpin the success of online business transactions. An e-commerce website should allow a visitor to purchase and pay without being physically present at the shop. Locally, in Malaysia, many banks and other financial institution are offering the solutions to their customers to fully transact online without their physical presence. Institutions like Maybank, OCBC Bank, GHL Systems, PayDirect or Financial Link payment gateway to MEPS (Malaysia Electronic Payment System), offer this payment services (Danial & Sadeeq, 2012).

Danial and Saddeq (2012) say that in addition to online credit cards, Malaysian can use direct Internet Banking like Maybank2u, premium SMS or their mobile devices like Mobile Money Weblink. PayPal an internationally renowned payment firms that have set a foot in Malaysia, and has allowed transaction in Malaysian currency, making it easier for Malaysian to transact online reduce the use of dollars. WorldPay and iPay88.com (a local firm) also offer online payment services and are firms with a reputation. This has seen a growth in the economy, and increase in the number of online shoppers in Malaysia and across the globe. Although e-payment comes with security threats, it has led to the significant growth of e-commerce by offering a payment platform.

PayPal study in 2011 shows that Malaysian’s spend more on local e-commerce websites than foreign ones, standing at RM825 million and RM627 million respectively (HO, 2011, as cited in Danial and Sadeeq, 2012). See APPENDIX-5 Top 7 Things Malaysian Pay Online.

Interactive Marketing

John Deighton (as cited in Lee Ferry, 2007. p.2) Interactive Marketing (IM) as marketing that is more ‘chat-like’ than transaction based and is done via the internet. Lee (2007) suggests a number of ways that can be used to enhance e-commerce readiness, they are briefly discussed. Affiliate marketing is where an affiliate is rewarded for every visitor they recommend to the website. Contextual advertising is where the user sees content that relates to what they are viewing on the web. Email marketing, uses electronic mail to send customized promotional messages to current and potential customers. Pay per click, is an IM model use comely by search engines, where the business pay only for the number of click their adverts get.

Lee (2012) further explores the use of Search Engine Optimization options like the Search Engine Marketing where a business pays for search listing. A viral marketing is also explored, and it’s voluntary where users exchange funny video clips, images, games among others to market a product. The other two IM approaches are blogs and banner Ads.

With the use of these techniques businesses have seen an increase in customer loyalty, customer satisfaction, and customer base. Some of the techniques suggested are very costly for a Small Medium Enterprise (SME).

Streamline Business Processes

Jansen (2010) addresses and provides the principles on the redesign of business process and e-commerce reintroduction. The author further adds that existing business process must be integrated with the e-commerce website to enhance timely interaction with the suppliers and the customers. Krzwonosas cited in Jansen (2010), observes that 85-90% of e-commerce websites have no integration with the back-office processes, which makes technology benefits unrealized. In the study, it comes out clear that business process reengineering should allow an e-commerce and business process to co-exist and excel at the same time supporting each other.

Business processes should be transparent to the customers and suppliers, especially on the e-payment say Lummus and Vorkurka as cited in Jansen (2010). It is further noted that a business process should increase customer loyalty, which forms the bedrock of a successful e-commerce. However, e-commerce firms should be cautioned as customers are only a mouse click away from the competitors. Jansen (2010) observes that business processes should encourage time independence to their customers, and as much as they allow unlimited ‘opening hours’, they should also facilitate around-the-clock attendance. Hall as quoted in Jansen 2010 says business process should be very efficient to the customers when interacting with the e-commerce website.

Reijers cited in Jansen (2010) identifies business process reengineering best practices as, task rules, routine rules, resource allocation rules and rules of external parties. These rules allows outsourcing, contact reduction, buffering through subscription of information and allowing the trusted parties to verify information. Business process reengineering can have a positive impact to the business when applied concludes Jansen.

Malaysia’s Government Initiative

The government of Malaysia has taken a lead role in the development of e-commerce. It has set up concrete realistic measures like creating a favorable policy environment for e-commerce; it is a leading-edge user of e-commerce, and provides for its citizens the required infrastructure for the widespread e-commerce use (Yew, Ang, & Ramasamy, 2010).

In the Third Outline Perspective plan (2001-2010) government recognized Information Technology and Communication (ICT) as a key driver for the economy says Yew, Ang, and Ramasamy (2010). As government recognizes that ICT is among the 12 National Key Economic Areas (NKEA) that will make Malaysia be a high-income economy. The report recommends government investment in ICT infrastructure, a key element for the growth of e-commerce.

The paper by Yew, Ang, and Ramasamy (2010) notes that since the conception of the information-age phenomena, the government through the Malaysian Ministry of Science, Technology and Innovation (MOSTI) finally came up with a policy under the guidance of e-commerce development throughout the country. It's the vision of the government of Malaysia to have a fully-developed economy by 2020 subsequently the growth and access of the Internet in the country.

Yew, Ang, and Ramasamy (2010) say the government has created a favorable environment for the growth of e-commerce by enacting a number of laws. The Personal Data Protection Act 2010; It comes in handy for online and realtime transactions. This act ensures the data or information privacy is protected. Such laws have boosted consumer confidence, thus an increase in the number of online users. The introduction of cyber laws prohibits fraudulent practices, enhance customer online privacy, and provide a provision for a refund and return of goods, and services shopped online, thus an increase to the number of online users. However, despite the enactment of these laws does not eliminate the online hazards (Yew, Ang, & Ramasamy, 2010). See APPENDIX-4 for Cyber laws in Malaysia.

Information Security in E-Business

Rashad, Foong, Mohammad, and Seyed (2001), say that customer privacy is the most sensitive part in the process of e-commerce. Company's successes are now days measured on how they protect the confidential information of their online clients. Infarction risk and personal security threat have dejected many customers from embracing e-commerce. From the study the companies have to work on how to gain online consumer trust that is said to be incremental and built up experimentally over time.

Hackers, crackers, disgruntled employees, corporate adversaries, phising and harming frauds are some of the threats both the client and business face when they engage in an online transaction says Rashad, Foong, Mohammad, and Seyed (2010). Business should come up with ways to reassure their customers of maximum security. They can use some of the following means to reassure their customer’s testimonies from pervious customers, photographs of people enjoying their product, expert witness statements and celebrity endorsement among others. To have a strong customer base, the business can also use trusted third-party companies to handle online money payment, work in unison with other government agencies and send occasional messages assuring their customers of their privacy. Rashad, Foong, Mohammad, and Seyed (2010) concludes that an e-commerce system must be secure, and guarantees the customer’s data to remain confidential, and never misused.

Organizational Factors

According to Senaratha and Wickramasuriya (2011) study, organizational factors affect the adoption of the E-Commerce in an organization. They cite culture type, computer per employee, availability of technical officers, resistance to change, top management and organizational culture as some of the factors that have a direct impact on the readiness of business and IT integration. The organizational culture Assessment Instrument (OCAI) by Cameron and Quinn (as cited in to Senaratha and Wickramasuriya p.206) was used to measure the organizational from the participating businesses. There research showed that top managers when they support an initiative it would succeed.

The study shows empirical evidence that there is a positive relationship between adhocracy cultural characteristics among the SME and the level of e-commerce readiness. Adhocratic organizations value flexibility, dynamic adaptability, high entrepreneurship, and a creative place to work. Employees and leaders embrace innovation and risk-taking. Hierarchical culture shows a loose relationship in the level of e-commerce adoption in SMEs. It’s a highly structured and formal place and to maintain coexistence is most critical. The management in this culture wants security and predictability. They further noted that effective measures / checks must be put in place to enhance the usage and adoption of E-commerce.

Methodology

This research will follow a deductive reasoning as suggested by Adams et al. (2009) because it will be an attempt to derive conclusions from something that is known to be true, and an explanatory approach where qualitative and quantitative research methods will be used. An explanatory design approach will ensure the variables involved in the research, business and technological elements are related. This research will rely on both primary and secondary data collection techniques.

The qualitative method will be used to overlook the outcomes of the research hypothesis and develop further study to test and support the research. In regard to the quantitative approach, face-to-face interview will be the primary tool of research. Face-to-face interview is preferred due to their validity and reliability. The face-to-face interview will be simple and both open and closed-ended to enhance high response rate and get more information from the users. Qualitative interviews will be used to verify and clarify the data collected (Adams et al., 2009).

Primary data will be available from through the face-to-face interviews; the study sample size will be 30 persons and a minimum of 20 will be sampled, drawn from various heads of business units and key operation's users, who has been involved in company’s e-business or e-commerce-related project or day-to-day business operations. Whereas secondary data shall be collected from the Internet, journals, data already collected, publications such as company reports, textbooks, newspaper articles, and information from the government sources.

Proposed Analysis

The data analysis process will be captured on a scale that ranges from ‘Disagree’ and ‘Agree’. With the help of the appropriate software like Microsoft Excel will be used to present the quantitative data. Some common statistical approaches used will be mean and standard deviation. To analyse organizational culture and technological resources on an e-business adoption, a cluster analysis will be used to group organizational traits.

However, the tool that would be used to analyse the qualitative data is yet to finalize at this moment. There are several tools, which are available as the choice to analyse the qualitative data which mainly divided into two ways either using computer software as an aid or the manual method without computer aid. This decision may be clearer in the later stage of the research.

Problems or opportunities / limitations that might arise:

Some of the challenges are discussed are, firstly; lack of scientific training in the method of research turned out to be one of the greatest impediments to the process of research. Secondly, there was constrained of time as research time was limited, consequently, insufficient interaction with the interviewees during the interview and ultimately getting less information. Thirdly, unavailability of published data from government and other agencies relating to the topic of study was observed. Finally, it was also observed that there was a significance variance in the little data published from the agencies.

The research process showed there are more research areas that have not been explored in the field, thus room for improvement on works already done.