BUSINESS REVIEW: INFORMATION TECHNOLOGY Challenges The segment operates mission-critical digital platforms and handles sensitive data, exposing it to risks relating to cybersecurity breaches and data privacy incidents, which may affect system integrity and stakeholder confidence. Challenges The segment’s performance depends on effective project execution and service delivery. Delays, cost overruns or quality issues may impact profitability and client relationships. Mitigation The Group implements robust cybersecurity frameworks, continuous monitoring and data protection measures to safeguard systems and ensure compliance with regulatory requirements. Mitigation Project governance and delivery frameworks are strengthened through improved planning, monitoring and resource management to support timely and efficient execution. Cybersecurity and Data Privacy Risk Execution and Delivery Risk STRATEGIC FOCUS GOING FORWARD The segment will strengthen its position as a provider of higher-value digital solutions, with emphasis on expanding recurring revenue streams and scalable service offerings. Priorities include reinforcing core trade facilitation platforms and extending capabilities into areas such as artificial intelligence, cloud computing and integrated digital solutions. Its presence in high-trust environments provides a base for growth in applications requiring secure and reliable digital infrastructure. Operational priorities include improving delivery efficiency, sharpening project execution and maintaining cost discipline to sustain profitability. Key Focus Areas • Strengthening Core Platforms Enhance trade facilitation systems and government-linked digital infrastructure. • Expanding into Higher-value Digital Solutions Build capability in artificial intelligence, cloud and integrated digital platforms. • Increasing Recurring Revenue Contribution Grow long-term service contracts and managed services. • Enhancing Scalability and Delivery Capability Improve project execution and operational efficiency. • Strengthening Cybersecurity and Data Protection Maintain resilience and reliability of digital platforms. Challenges Rapid advancements in digital technologies, including cloud computing and AI, require continuous capability development. Failure to keep pace with technological change may affect competitiveness and limit growth opportunities. Mitigation The Group invests in capability development, strategic partnerships and innovation initiatives to strengthen its technological capabilities and maintain relevance in evolving digital markets. Technology and Capability Risk The IT segment is focusing on higher-value digital solutions by growing recurring revenues and scalable service capabilities. DNeX INTEGRATED REPORT 2025 62 ABOUT THIS REPORT LEADERSHIP VALUE CREATION @DNeX LEADERSHIP INSIGHTS OVERVIEW OF DAGANG NeXCHANGE BERHAD
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