Prof. Richardus Eko Indrajit IASA Indonesia President indrajit@post.harvard.edu

Profit = Revenue - Cost

Increase Decrease

§  The time to challenge values of information technology for business is over §  Number of undeniable facts/statistics §  Generation shifts (customers, suppliers, owners, stakeholders) §  Nature of products and services §  Characteristics of technology as business tools/infrastructure

§  Now it is the time to use creativity in changing the way business is conducted §  Values to shareholders (financial) §  Values to customers (source of revenue) §  Values to internal operation (products/services creation) §  Value to organization (human resource quality)

1.  Shift Cost to Customers

2.  Utilise/Share Extra Capacity

3.  Create New Products/Services

4.  Alternate Business Models

5.  Piggy Back on Other Initiatives

§  Budget airlines shift the internal production and organization cost to customers (buy ticket, check-in passengers, print boarding pass, etc.) – and the customers are happy on such arrangements (profit from process elimination)

§  Taxi drivers consume less gasoline as the company equips them with automatic reservation system that can be used by travelers as active users (profit from expanding market and reducing back-office cost)

§  Padang restaurant is offering their customers with 24/7 delivery services by implementing simple smart reservation and resource management system (profit from expanding transaction time while reducing fix cost for services)

§  Bookstore or/and publishers sells book in two different format at the same time (hard copy and digital) with the same price – putting the dilemma to the customers to decide (profit from 100% of margin from digital version)

§  Hospital shares their data to the related healthcare institutions as being asked by the patients/customers (profit from transaction-based activity)

§  University offers their digital based classrooms or laboratories to be used by other organization entities such as corporations/enterprises, government, task forces, etc. (profit from renting the technology facility)

§  Manufacturing and/or distribution company which has arms in all provinces support other un-related companies with just-in-time logistics facilities and scenarios as they have enough related system and data to help them in delivering their products in a very effective and efficient manner (profit from revenue sharing or service cost)

§  Bank provides its strategic partner with secure environment and tools in conducting financial-based transaction (profit from transaction cost or revenue sharing)

§  Transportation Company integrate their services with insurance industry (profit from sharing revenue)

§  Electronic Retail Center works together with multi-finance company in offering rent-to-buy devices (profit from monthly rental and cost-of-money)

§  Satellite Telco Company partners with the local government to assist public services in various circumstances such as: force majeur, national disaster, landscape mapping, epidemic survey, etc. (profit from annual budget)

§  Television Company build strategic partnerships with social media owners to introduce new products such as: streaming television, SMS polling, public survey, push sponsors, (profit from revenue sharing or/and third-party)

§  Books Writers shift their income from writing a book into conducting professional trainings or workshops (profit from event business or instructor fees)

§  Musicians rely their income from selling the albums or songs to offering ring back tone (profit from transaction or memberships)

§  Training Centers change their focus from conducting knowledge/competency transfer events into producing contents and certifications process (profit from intellectual property, process, and prestigious white-list database)

§  Newspapers Business alternates their business model from subscription or memberships into value-added news services (profit from personalization, references, pictures repository, etc.)

§  Government embeds the taxation process into company’s salary management system (profit from saving costs of reporting management)

§  Oil and Gas enterprise joins the smart card project introduced by other company to ease the customers in purchasing gasoline (profit from revenue sharing or transaction)

§  Airports provide technology infrastructure that can be used by travel agencies, shops, hotel management, taxi providers, and travelers to conduct their business (profit from revenue sharing, transaction cost, manual subscription, or memberships)

§  Printing Companies rely their market on multimedia users who are willing to print their masterpieces for various of purposes (profit from enlarging market and alternative revenue)

Prof. Richardus Eko Indrajit IASA Indonesia President indrajit@post.harvard.edu