7/3/2022

CHAPTER 1:
INTRODUCTION
TO DIGITAL
ENTREPRENEURSHIP
PREPARED BY:
NOR AINI BINTI CHE DIN
COMMERCE DEPARTMENT
[email protected]

DPU30013 DIGITAL ENTREPRENEURSHIP

TABLE OF CONTENTS

Describe entrepreneurship in the Industrial

1.o Revolution 4.0 era (IR4.0)

2.o Explain digital entrepreneurship

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1.o
Entrepreneurship
in the Industrial
Revolution 4.0
Era (IR4.0)
DPU30013 DIGITAL ENTREPRENEURSHIP

IR 4.0 ENTREPRENEURIAL CULTURE

Definition of IR 4.0 :
The concept of Industry 4.0 in the production sector implies the
use to the maximum capacity of the power of communications
technology and innovative inventions to stimulate the
development of productiontechnologies.
(Kagerman, Helbig, Hellinger & Wahlster, 2013)

• Stated that Industry 4.0 could ensure the real

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

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IR 4.0 ENTREPRENEURIAL CULTURE

Definition of IR 4.0 :
• Emphasized the network of advanced technologies in the value
chain.
• Services, automation, robotics, artificial intelligence, the Internet
of Things (IoT), and additive manufacturing are the elements that
will reshape businesses in different industries.
(Schumacher, Erol & Sihn)

IR 4.0 ENTREPRENEURIAL CULTURE

 Transformed, more demanding, and conscious customer

expectations.

 Products routinely and quickly enhanced by data, which

improves asset productivity.

 New partnerships being as companies learn the importance of

new forms of collaborative innovation and the values of the
circular economy.

 Novel operating models and organizational forms which are on

one hand more automated, on the other flatter and more peer to
peer.

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Advantages of the IR4.0

Increasing economic Increasing labor

1 efficiency 2 productivity

Flexibility and Reducing manufacturing

3 intelligence 4 cost

The latest technologies will

Increasing returns
lead to the creation of new
5 on investment (ROI) 6 jobs, and there will be new
production areas.

DPU30013 DIGITAL ENTREPRENEURSHIP

Disadvantages of the IR4.0

The reduction of creativity can
occur due to the automation of
Increasing the unemployment
1 machines and the disappearance of
human capital from the production
2 rate, at least in some areas,
can be another negative
technology.
effect.
The time frame for
Training with employees is required
3 implementing Industry 4.0 is
relatively large and requires 4 for new technologies.
efforts throughout industry.
Initial costs are high.

5 6 Effect on the environment.

The complexity of the tasks
reduces its abilities.

Causing a new
7 reconfiguration of it.
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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
 The Internet is a very powerful communication
tool in business.
 An entrepreneur can save business time
 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).

DPU30013 DIGITAL ENTREPRENEURSHIP

NINE PILLARS OF INDUSTRY 4.0

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2.o
Digital
Entrepreneurship

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MARKET TRENDS

1. Mobile Universe
 Mobile technology is an area with endless possibilities for

creativity and innovation. 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.

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MARKET TRENDS

2. Augmented Reality

 Augmented reality is the intersection between the virtual

and the real world.

 Application today are still expanding, and this is an area of

great opportunity to be explored.

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MARKET TRENDS

3. Big Data
 Big Data is a term used in Information Technology to

designate a large amount and complexity of stored data.

 It helps to plan how they can successfully engage their

customers by using the data from their company’s
database for achieving accuracy in demand forecasting

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MARKET TRENDS

4. Social Media
 Social media has a wealth of highly strategic information

for any business and increasingly being used.

 Opportunities focus on the increasingly common customer

relationship and customer service.

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MARKET TRENDS

5. Multichannel Retail
 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 shopping experiences

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Digital Marketing - Definition

“Using digital channels to

promote, or market,
products and services to
consumers and
businesses.”

Digital Marketing Institute, 2016

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Advantages of Internet Business

 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.

 Reduce Marketing Cost;

With the rise of the internet, there has been a huge increase in
various social media platforms. The internet means that you can
put your products and services right in front of your target
market.

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Advantages of Internet Business

 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 addition, the internet enables you to share
knowledge and information quickly and easily.

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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.

 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.

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Disadvantages of Internet Business

 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.

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

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