Research Proposal Factors Influencing the Successful Implementation of a New Digital Servitization Strategy

Gobaind Naidu
Research Proposal
Factors influencing the successful implementation of a new
digital Servitization strategy.

Research Proposal 1
Abstract
Malaysian Healthcare sector is an increasingly important or one of the booming industry
as it is proved to be a sustainer in global economic climate. As the Malaysian Government is also
trying to promote Malaysia as a healthcare destination and is focusing on developing the health
tourism industry, with the increasing focus of healthcare, it has become more relevant to
introduce new digital technology to improve the level of service and engagement with patients,
hence the buzzword - Servitization strategy in order transform private healthcare. Servitization is
process of transformation. It is a way of bringing differentiation in the competitive era and it’s
goal is to bring intense customer relationship and satisfying customer at all the level. Digital
Servitization is the new technique which each and every company nowadays is trying to
introduce in their organization to offer bundle of services in to achieve delighted customers. But
bringing in new strategy and adding competitive advantage to any organization is always a big
task, as there are many organizational forces which influences the successful implication of the
same. So it is very necessary to understand what the Factors are that influence the successful
implementation of a new digital Servitization strategy for Private Healthcare sector in Malaysia.
Keywords: [Digital Servitization, Private Healthcare, Strategy.]

Research Proposal 2
Table of Contents
Abstract...................................................................................................................... 1
Chapter 1 Introduction & Background of Research....................................................4
1.1Justification and Relevance of the study............................................................5
1.2 Relevance to the Private Health Care Sector....................................................5
1.3 Relevance to the Academicians, Students and others......................................5
1.4 Need & Scope of Study...................................................................................... 6
1.5 Research Objective:.......................................................................................... 6
1.6 Research Question............................................................................................ 6
Chapter 2 Review of Literature...................................................................................7
2.1 Servitization...................................................................................................... 7
2.2 Strategy Implementation................................................................................... 8
2.3 Private health Sector of Malaysia......................................................................9
2.4 Research Gap.................................................................................................. 10
2.5 Objective of the Study..................................................................................... 10
Chapter 3 Research Framework & Design................................................................11
3.1 Research Framework....................................................................................... 11
................................................................................................................................. 11
3.2 Detailed hypothesis of the Study........................................................................12
3.3 Research Design............................................................................................. 14
3.4 Research Methodology:................................................................................... 14
3.5 Sampling design.............................................................................................. 14
3.5.1 Universe........................................................................................................ 14
3.5.2 Sampling Unit................................................................................................. 14
3.5.3 Sampling Frame............................................................................................... 14
3.5.4 Sampling Technique.......................................................................................... 14
3.5.5 Sampling Size................................................................................................. 14
3.6 Data Collection Technique...............................................................................15
3.7 Statistical Techniques for Data Analysis..........................................................15
3.7.1 Descriptive statistics.......................................................................................... 15
3.7.2 Reliability...................................................................................................... 15
3.7.3 Validity......................................................................................................... 15

Research Proposal 3
3.7.4 Normality Test................................................................................................. 15
3.7.5 Hypothesis Testing........................................................................................... 15
3.8 Limitations of the study................................................................................... 15
References............................................................................................................... 17

Research Proposal 4
Chapter 1 Introduction & Background of Research
Malaysian healthcare industry is one of the most booming industry, having contributed
approximately RM 1bn (Malaysian Ringgit one billion) to the national GDP (Gross Domestic
Product) during 2016. In 2017 it’s impact on GDP is expected to increase by 33%. With its
increasing importance in national economy the Malaysian government has chosen to prioritize
the same and have injected RM 23bn (Malaysian Ringgit 23 billion) in 2016 which is
approximately 10% of the National annual budget. (Macleod, 2017)
The government is targeting to focus on private healthcare system as the government
plans to make Malaysia as healthcare destination. With increasing importance of healthcare
industry it is very essential to concentrate on enhancing the level of service provided by the
private healthcare system in order to improve the service level and bring in differentiation
(Macleod, 2017)
Digital Servitization is the new buzz word in the market that has the potential to bring in
the required differentiation in an organization. Servitization is actually the transformation
journey of the organization to bring customer in focus and giving high level of integrated and
bundled package of product and service to the customer. In service industry where the core
offering of industry is not a physical product, there the company tries to bring in digital
Servitization in order to improve the service level.
Introducing new strategy to any industry is always a big task, as there are many factors
which influence the smooth functioning of any strategy. This research proposal sought to study
the factors which influence the successful implementation of the new Servitization strategy in the

Research Proposal 5
private healthcare sector in Malaysia and the impact of those factors on successful
implementation of new digital Servitization strategy in the private healthcare center of Malaysia,
there are total 12 private healthcare centers in Malaysia to get the authentic result survey will be
done on all the managers of the 12 hospitals, data collection will be done through self-made
questionnaire, data analysis will done through Structure Equation Modelling with the help of
SPSS version 22.
Figure 1: Digital Servitization
Source: McKinsey Digtal Patient Survey, 2014
Public sector enterprises have limited budget in regards to new product and processes
development. Faced with budgetary crunch they are more reluctant to adopt new features as
Servitization, as their main endeavor remains focused on catering to broader spectrum of patients
at cost affordable rates. Private sector on the other hand might face more time related constraints
especially in regards to management decisions. Private sector however have more readiness to