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The Future of Service Providers
Searching for New Profit Streams
Presented By
Mr Victor Ooi Boon Beng
Founder and Chief Executive Officer
BizAid Technologies Sdn. Bhd.
National Accountants Conference
18 Sep 2002
This proposal is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced
for distribution outside the client organization without prior written approval from BizAid Technologies Sdn.. Bhd.
BizAid Technologies
The Future of Service Providers
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Definition & Scope
 New profit stream v.s new revenue stream
– Revenue generation
– Cost reduction
 Service Providers refers to:
– accounting, tax, auditing,
management consulting,
risk management, internal
auditing, financial reporting,
company secretarial, etc.
BizAid Technologies
The Future of Service Providers
www.mybizaid.net
Presentation Outline
New Economy’s
Main Themes
Key Drivers
of Change
New Economy
Development in M’sia
How to Profit from
the New Economy
BizAid Technologies
The Future of Service Providers
www.mybizaid.net
The Future: New Economy
 Don Tapscott’s 12 Themes:
1. K-economy
2. Globalised Economy
3. Digital Economy
4. Networked Economy
5. Prosumption
6. Innovation
BizAid Technologies
The Future of Service Providers
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The Future: New Economy
 Don Tapscott’s 12 Themes (continued):
7. Discordance
8. Disintermediation
9. Moleculazation
10. Virtualization
11. Immediacy
12. Convergence
BizAid Technologies
The Future of Service Providers
www.mybizaid.net
New Economy
 New Game, New Rules, New Dynamics
 Undeniable serious threats but contains within it
unprecedented opportunities
 Pressure to expand skills and services beyond traditional
roles to broader based and decision making skills
 Need to move up the economic value chain
– info-based products &
services are losing value
in the marketplace and
are rapidly being replaced
with k-based products &
services that command
higher fees
BizAid Technologies
The Future of Service Providers
www.mybizaid.net
Key Drivers of Change
 Globalization of Economic Activity
 Increased Competitive Pressure
 The Growing Importance of Small Businesses
 Social Pressures for Greater Accountability &
Transparency
 The Challenges
of ICT
 Changing Work
Pattern
BizAid Technologies
The Future of Service Providers
www.mybizaid.net
Major New Economy Movements
in Malaysia
 K-economy Emphasis
– MSC, NITA, Strategic Policy Thrusts, e-Commerce Master Plan,
K-economy Blueprint, Eighth Malaysia Plan
 Technology-driven Value Chain
– MSC Flagships
: 1st wave flagship application, cross flagship integration,
2nd wave flagship application
 e-Commerce Development
 Corporate Governance Emphasis
 Financial Planning and Advisory
BizAid Technologies
The Future of Service Providers
www.mybizaid.net
K-economy Emphasis
 Ranking of Overall Competitiveness
 1995 – MSC conceived to leapfrog Malaysia thru creation of
regional multimedia hub
1996 – NITA came into existence to lay the foundation for the
creation of K-based society
- focus on 3 areas of development
1998 – 5 strategic Policy Thrusts were rolled out.
2000 – e-Commerce Master Plan was rolled out
2002 – K-economy Blueprint to move Malaysia from P-economy
to K-economy will be released in August
2001-2005: Eighth Malaysia Plan (EMP)
BizAid Technologies
The Future of Service Providers
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K-economy Emphasis
Eighth Malaysia Plan (2001-2005)
 “Knowledge” was the key word in EMP
 RM 110 b was allocated to finance programs to achieve k-driven
growth with ICT forms the core of economic sectors
 2 key issues
a) VC for early stages
of biz development in ICT
b) ICT infrastructure
 Aim to make e-commerce as
a new way of doing biz AND
sustain growth by spawning
critical mass of ICT based SMEs
for the development of a k-economy
BizAid Technologies
The Future of Service Providers
www.mybizaid.net
K-economy Emphasis
 Incorporate knowledge into your service value
chain
CRM
BizAid Technologies
Request
Service
For
Procurement
Services
Service
WIP
Mgmt.
The Future of Service Providers
Service
Level
Mgmt.
Financial
Settlement
www.mybizaid.net
Technology-driven Value Chain
MSC Flagships
 *Technopreneur Development
 *e-Government
 Multipurpose Card
 E-Business/
Cross Border marketing
 Smart Schools
 Telehealth
 R&D Clusters
BizAid Technologies
The Future of Service Providers
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Technology-driven Value Chain
MSC Flagships
Technology Development Flagship (TDF)
 “The new MSC flagship is of vital importance to the growth &
development of the country’s next wave of economic warriors, ie the
entrepreneurs in the knowledge economy. They will be the ones to
leverage on the power of ICT and its ability for use knowledge to create
value-added benefits to our existing commodity, manufacturing and
service industries, as well as creating a new ICT industry in Malaysia.”
~ Dato Amar Leo Moggie, Energy, Communications and Multimedia Minister during the
launch of The Technopreneur Development Flagship at Kulim High Tech Park.
 The 5 key elements, which are
critical for the development of
technopreneurs, including R&D
grants, venture capital, market
access, incubator centers and
human resource development
are being addressed
BizAid Technologies
The Future of Service Providers
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Technology-driven Value Chain
MSC Flagships
 Rendering professional services in the TDF value chain
Leads
Generation
Assessment
Pools of
entrepreneurs
BizAid Technologies
Calibration
Mentoring
Consulting
services
The Future of Service Providers
Company
Setup
Secretarial
services
Funding
Financial
services +
Financial
planning &
Advisory
www.mybizaid.net
Technology-driven Value Chain
e-Government Flagship
 SSM
–
technology project
–
3 major areas
a) Operational systems for
e-Filing, e-info, CBS,
CRM, FMS
b) ICT Infrastructure
c) Workflow, Messaging
and Knowledge
Management System
 IRB
BizAid Technologies
–
Portal service
–
Collaboration with BCB on e-payment of PCB
–
collaboration with MIMOS on secured e-filing
The Future of Service Providers
www.mybizaid.net
e-Commerce
 e-Commerce & your clients
– It is here to stay
– Must first show the “e” in your practice, clients will then be
prepared to talk about its likely impact on their own businesses
– Website: either informational or transactional
 The Top e-Commerce and Technology Trends
 Example: RosettaNet
– Malaysia companies as suppliers to MNCs by being members of
net’s global supply chains
– Perak, Penang & Kedah will become pioneers when they form the
country’s first Electronic B2B marketplace under RosettaNet
Malaysia project
– Focus on listing the 1st and 2nd tiers suppliers in the electrical &
electronics industry sector
– Put “K” into “P” economy
BizAid Technologies
The Future of Service Providers
www.mybizaid.net
Corporate Governance Emphasis
 Globalization leads to the spread of governance
without government as public interest groups and
professional organizations gain stature in the
international arena
 Social pressure for greater accountability forces
government, businesses to be more responsive to
the needs of the communities and stakeholders
BizAid Technologies
The Future of Service Providers
www.mybizaid.net
Corporate Governance Emphasis
 Malaysian Code on CG: 4 Key areas, 13
principles, 33 best practices & 62 issues
Strategic
Management
(Management accountant)
Compensation
& Benefits
(HR consultant)
CORPORATE
GOVERNANCE
Risk Management
(Management
accountant)
BizAid Technologies
Conformance
& Compliance
(Financial
accountant)
Internal Control
(Internal auditors)
The Future of Service Providers
www.mybizaid.net
Financial Planning and Advisory
1.
General Principles of Financial Planning
(13%)
2.
Insurance Planning & Risk Management
(10%)
3.
Employee Benefits Planning
4.
Investment Planning
(19%)
5. Income Tax Planning
(17%)
6.
Retirement Planning
(18%)
7.
Estate Planning
(15%)
(8%)
______
100%
______
BizAid Technologies
The Future of Service Providers
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How to Tap these Opportunities
In Employment
In Business
Self-employment
Service Seekers
Adapted from Robert Kiyosaki’s Cashflow Quadrant Model
BizAid Technologies
The Future of Service Providers
www.mybizaid.net
How to Tap these Opportunities
at a micro level?
 Those in Employment
 Those who are
Self-employed
 Those in Business
 Those who are
Service Seekers
BizAid Technologies
The Future of Service Providers
www.mybizaid.net
How to Tap these Opportunities
at a macro level?

Collectively ride on your network or professional association’s
influence to interface with relevant authorities/parties for new
opportunities:
a)
Professional services offerings to TDF
b)
e-Community building
using DAGS
c)
Trust and Assurance services
to New Economy entities
d)
ICT adoption using ASP
services infrastructure
e)
New Economy knowledge
acquisition via relevant training
f)
Professional services offering
to VC & Funding Market
g)
Etc.
BizAid Technologies
The Future of Service Providers
www.mybizaid.net
Are you going to
PROFIT in the New Economy?
 The Adoption Model:
Source: Redrawn from Everett M. Rogers, Diffusion of Innovations (New York: Free Press, 1983).
BizAid Technologies
The Future of Service Providers
www.mybizaid.net
BizAid Technologies
The Future of Service Providers
www.mybizaid.net