How shall we

Compete and Sustain in the Era of Digital Business?

By. : Satriyo DharmantoPresident Director, PT. Multikom Global Mediatama

Country Sales Director, Conax AS – IndonesiaChairman, IEEE Indonesia section

09 Mei 2015Mata Kulia Strategic Management ,

Fakultas PsikologiUniversitas Indonesia

AGENDA

Digital Business in the Era of Technology ConvegenceGartner’s Strategic Planning AssumptionsThe World’s billionaires 2015 and their organizationIndonesia’s Top richest and their organizationHow billionaires and top leaders led their organizationStrategic Management Implementation In the Digital BusinessStrategic Management for Indonesia ICT DevelopmentWEF Global Competitiveness Index FrameworkGartner’s Top 10 Strategic Technology Trends For 2015

Digital Business

Digital business promises to user in an unprecedented convergence of people, business, and things that disrupts existing business models.

With more than seven billion people and businesses and at least 35 billion devices communicating, transacting, and even negotiating with each other, a new world comes into being — the world of digital business.

Digital business is the creation of new business designs by blurring the digital and physical worlds.

Source: Garthner

Source: http://www.internet-of-things-research.eu/pdf/Converging_Technologies_for_Smart_Environments_and_Integrated_Ecosystems_IERC_Book_Open_Access_2013.pdf

Digital Business - Era of Technology Convergence

Internet Connection - Everywhere

Source:http://www.mobileindustryreview.com/media/Global-Internet-Use.png

2010 2014 20150

25

50

75

100

Global Internet traffic in exabytes per month

One year growth = entire 2010 traffic

How internet is growing

Source: Cisco

Global mobile population coverage

SOURCE: Ericsson

Global Rank

Country Q1 -13 Average

YoY Change

1 S Korea 14.2 Mbs -10 %

2 Japan 11.7 Mbs 6.8 %

3 Hong Kong 10.9 Mbs 16 %

21 Singapore 6.9 Mbs 31 %

41 Australia 4.7 Mbs 31 %

43 New Zealand 4.4 Mbs 14 %

44 Thailand 4.4 Mbs 32 %

47 Taiwan 4.3 Mbs 10 %

70 Malaysia 2.7 Mbs 36 %

98 China 1.7 Mbs 20 %

104 Indonesia 1.5 Mbs 113 %

108 Vietnam 1.5 Mbs -9.1 %

109 Philippines 1.4 Mbs 24 %

114 India 1.3 Mbs 21 %

Global Rank

Country Portion >4Mbs

YoY Change

1 S Korea 87 % 1.5 %

2 Japan 79 % 9.9 %

3 Hong Kong 78 % 8.4 %

21 Singapore 62 % 22 %

41 Thailand 48 % 108 %

43 New Zealand 42 % 22 %

44 Australia 37 % 38 %

47 Taiwan 33 % -8.7 %

70 Malaysia 21 % 103 %

98 China 5.3 % 101 %

104 Indonesia 3.7 % 414 %

108 India 2.4 % 66 %

109 Vietnam 1.9 % -48 %

114 Philippines 1.8 % 46 %

AVERAGE CONNECTION SPEED PORTION OF CONNECTIONS ABOVE 4 MBS

S O U R C E : A k a m a i

Video ready BB connectivity APAC

Changing Daily Life

Source: EricsonConsumer Lab

By 2020, retail businesses that use targeted messaging in combination with internal positioning systems will see a 5% increase in sales.

Gartner’s Strategic Planning Assumptions

By 2015, more than half of traditional consumer products will have native digital extensions.

By the end of 2015, 5% of global organizations will design supermaneuverable processes that provide competitive advantage.

By 2016, nearly 90% of consumer product companies will have appointed a chief customer officer.

By 2016, 30% of corporate wellness programs will capture biometric data about employees

By 2017, nearly 20% of durable goods "e-tailers" will use 3D printing to create personalized product offerings.

By 2018, the total cost of ownership for business operations will be reduced by 30% through smart machines and industrialized services.

By 2018, digital business will require 50% fewer business process workers and 500% more key digital business jobs, compared with traditional models.

By 2020, developed world life expectancy will increase by a half-year, due to the widespread adoption of wireless health monitoring technology.

The most problematic factors for doing business

Source: World Economic Forum (WEF) 2014

Business: Theme restaurant Founded: New York, October 22, 1991 Headquarters: Orlando, Florida Founders - Keith Barish and Robert EarlInvestors - Arnold Schwarzenegger, Bruce Willis, Demi Moore and Sylvester Stallone

1994 - Launched official All Stars Cafe 1996 – IPO, share price reached all-time high of $321997 - Joint partnership w/ AMC Theaters Planet Movies 1998 – Launched Cool Planet (ice cream business)1998 – Launched Marvel Mania, collaboration w/ Universal Studio1999 – went down share price $31 2000 - had financial problems due to expanding too quickly2007 - Launched Planet Hollywood Resort & Casino in LV2007 - partnered with Westgate Resorts on the new PH Towers A Westgate Resort2008 – Acquired Buca, Inc., 2010 – sold the resort and casino to Caesars Entertainment2011 – sold the Towers project2012 - has gone bankrupt twice, nearly 100 locations have closed worldwide, leaving about 8 currently open

Failed Business

Business: Commercial AirlineFounded: 16 December 1968Ceased Operation: 5 June 1998

Sempati Air, was founded in December 1968 by PT.Tri Utama Bhakti (PT.Truba) under the name PT Sempati Air.

In the beginning, the airline is offered transportation for oil company workers.

introduction of regularly scheduled flights to Singapore, Kuala Lumpur and Manila

In the late 1980s, Hutama Mandala Putra (Tommy Soeharto) purchased Sempati and distributed it among three investors: Tri Utama Bhakti, Humpuss and Nusantara Ampera Bhakti (Nusamba).

After the buyout, the airline expanded rapidly in the early 1990s.

The CEO of Sempati, Hasan Soedjono has planned a five-year leap to reach the Sempati main target to become the one of Southeast Asia's largest airlines after Singapore Airlines, Garuda Indonesia, Malaysia Airlines and Thai Airways International.

However, financial difficulties soon plagued the airline Filed for bankruptcy due to the 1997 Asian Monetary Crisis

Failed Business

How to formulation and implementation of the major goals and initiatives.

Make consideration of resources and an assessment of the internal and external environments in which the organization competes.

The determination of the basic long-term goals of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.

Strategies are established to set direction, focus effort, define or clarify the organization, and provide consistency or guidance in response to the environment

strategic planning and strategic thinking

Mission Objectives

ExternalAnalysis

InternalAnalysis

StrategicChoice

StrategyImplementation

CompetitiveAdvantage

The Strategic Management Process

Business LevelStrategy

Corporate LevelStrategy

How to Position our Businessin the Market?

Which Businessesto Enter?

Barney Jay B. Hesterly William S. {2009}. Strategic Management and Competitive Advantage

The World’s Billionaires 2015

The richest person on the planet, 16 out of the last 21 years.

Cofounded of Microsoft in 1975 He's been steadily selling his shares in the

software company for at least 15 years. He unloaded one third of his remaining

stake over the 12 months through February 2015.

Included a gift of shares worth $1.5 billion to The Bill & Melinda Gates Foundation in November 2014,

Brought his lifetime giving up to $29.5 billion.

Spends most of his time focused on philanthropy, Continuing to work on improving U.S. education and global health,

Committed to getting Africa to feed itself and wants to help spread mobile banking so that the poor can transform their lives.

Net Worth

One of the three richest men in the world Own 62% of America Movil’s stake. Took private his listed real estate

company, Innmeubles Carso The largest shareholder of The New York

Times, with a nearly 17% stake, Holds a controlling interest in industrial

conglomerate Grupo Carso, financial venture Grupo Financiero Inbursa and infrastructure development and operating company Ideal.

Warren Buffett is 3rd richest in the world

CEO Berkshire Hathaway with dozens of subsidiaries, including in railroads, insurance and energy

A generous philanthropist, he bested his own giving record in July 2014, giving away Berkshire shares worth $2.8 billion, primarily to the Bill & Melinda Gates Foundation but also to his children's foundations,

His lifetime giving to nearly $23 billion.

Net Worth

Grew up the son of a railway worker and is now the world's richest retailer.

He cofounded Zara in 1975 With lingerie and bathrobes he and his

former wife Rosalia Mera made in their living room.

By the mid-1980s, he had taken Zara all over Spain and was ready to expand overseas.

As his empire grew, Ortega caught the retail establishment by surprise, limiting advertising, expanding aggressively, and controlling much of his own supply chain.

Larry Ellison is arguably the first Silicon Valley tech entrepreneur to live large and fast.

Building databases for the CIA Founded database software firm Oracle

in 1977 In September 2014 step down as CEO Staying on as Oracle's chairman and CTO Ellison has continued to gobble up

properties on the Hawaiian island of Lanai

To own every hotel room on the island.

Salim Group operates food, telecom, retail, property and banking units

First Pacific, Makati medical center, Elshinta, Indocement, Indomaret, BCA, Superindo, Wings Air, Indomobil

Indofood, world's largest manufacturer of instant noodles.

Philippine Long Distance Telephone {PLDT} has invested $445 million for a 10% stake in Germany's Rocket Internet.

His father, Liem Sioe Liong, founded Salim Group.

Eka Tjipta Widjaja is looking around for new opportunities after falling palm oil prices hit his Golden Agri-Resources.

New projects include a $5 billion partnership with Chinese Wuhan Iron & Steel to start a steel business in Indonesia.

Golden Agri is also trying to change, focusing more on downstream production and cleaning up its environmental reputation.

Widjaja came from China at 9 years old, started selling biscuits in Indonesia at 17.

Strategic ManagementImplementation at

PT. Multikom Global MediatamaAnd

Conax AS

Founded in year 2005, the main focus market in the multimedia services, related to Broadcasting, Telecommunication and IT business.

With experienced, skilled and integrated team, Multikom providing an exclusively turn key multimedia services, products and solution to TV Broadcasters, Radio Broadcasters, Telecommunication operators, Vendors, SI and IT providers all around Indonesia territory.

In this condition, Multikom also acting as a representative of some International products in Indonesia market, in the area of ICT business solution.

Multikom’s strategy is maintaining its focus on the diversified services and products base in the competitive ICT business condition.

28

Telecommunication

TV dan Radio Broadcasting Information Technology

Convergence

Business Focus

Multikom growth, was based on the process of learning by doing. Originally the idea was poured in a simple business plan. Capitalize hard work, integrity, honesty and mutual support, to produce a dynamic and continuous collaboration, that leads to the pillars by the company to produce outcomes for the welfare of the company ( from intangible assets into tangible assets).

The flows and the stages until the product is perfectly delivered to customers mapped with a guide called the value chain.

On its way, Multikom continued to upgrade themselves by continuing to learn, fight in the arena of competition both inside and outside the country.

Until now, Multikom is still trusted by customers with a coverage area of Indonesia market and supported by the manufactures / business principals from Asia Pacific, Europe, USA and Australia.

Learning and Growth

Learning and Growth

Telenor Nordic DNA, FinlandRiksTV, NorwayKPN, NetherlandsAVG, Vietnam

DishTV, IndiaClaro, ChileOrion Express, RussiaCanal Digital, Nordics

ComHem, SwedenVolia, UkraineCablevision, ArgentinaCablemas, MexicoTürksat, Turkey

85 countries, 380 operators, 140 million subscribers

Learning and Growth

Cost effective pre-integrated rapid deployed multiscreen solution

Conax

OTT Solutions

Conax Product and SolutionsA Conax Security Core based on

the STB chipset

A range of Conditional Access Modules (CAMs)

The worlds most secure Pay-TV Smart Card

Secure OTT delivery to all clients

Company’s Mission, Compétition, Performance and Change

Company Change Driven Factors

Knowledge Resource*:- 42% from Individual capabilities (Brain Ware), - 26% Hard Copy Document, - 20% Electronic Document - 12% Knowledge Base Electronic

*) Source Delphi group

External Factors Internal Factors Human Resource Competencies

Experiences from the customer, supplier & partners.

Knowledge Sharing between employee

Carrier Development based on Knowledge Management

Degrees of Competition in the Market: Price, Quality, Quantity of Services

Internal Procedure, SOP and company internal structure

Skill and Knowledge development: Training, Seminar, Professional Organization Membership, Factory Visit

Technology Driven Change: GSM to 3G; Analog to Digital TV

Company Business Strategy Case study from Pilot project and common Projects

Intangible asset measurement and development

Continuity employee development program: Business Development Program

Company Business Proposition

34

PT. Multikom Global Mediatama

Market Place

• Cellular communications

• FTA and Pay TV Broadcasting

• IT and Enterprise Infrastructure

Supported byInternational Principals

Exclusively & Turn key Services solution

Product solution

System Consultation

Company’s Business Synergy

35

PT. Multikom Global Mediatama

Marketing, Business Development,Sales,

Installation, Services, Maintenance

And System integration

International Principals

Strategically Business Synergy

Products and System solution

Gigast Ltd UKCobham Survelliance, UK

Conax AS, NorwayTektronix APAC

Market Strategy

Market Competitive base solution

Product differentiation

Cost Leadership

Market Strategy

Market Competitive base solution

Market Strategy

Market Segmentation

Market Competitive base solution

Free To Air (FTA) TV

Pay TV

Telco

Segmenting

With products and solution we would like to focus on: FTA Analog operators (about 12 operators) DTT Customers (about 5 operators) Pay TV DTH operators (about 8 operators) Pay TV Cable operators (about 4 operators) Pay TV Telco and OTT (about 4 operators) Radio Operators (local and Radio network) Government institution (DOD, BIN, BAIS) Military and Police Institution (Army, Navy, Police) Research Institutions (BPPT, LEN, LIPI) Government Own Corporation (Pertamina, PT

Telkom, PLN, KAI) Universities and Polytechnic

3 Segments for FTA, Pay TV and Telco market

STPD, Segmenting, Targeting, Positioning & Differentiation

STPD, Segmenting, Targeting, Positioning & Differentiation

Targeting

We will target about 10% market share of SNG, Wireless and preventive monitoring and measurement equipment in Indonesia marketBroadcast Target Customers:

SCTV, Indosiar, AnTV, TVOne, RCTI, Trans TV, Trans 7, Metro TV TVRI, Global TV, Kompas TV

Telcos Target Customers:

PT. NSN, XL Axiata, PT. Ericsson Indonesia (EID), Telkomsel, Indosat, Three, Innovate (Moratel), Esia

IT Enterprises Target Customers:

PT. Aplikanusa Lintas Arta, PT. Indosat Mega Media, PT. Telkom Tbk, First Media

Positioning

To provide reliable efficient & the best solution for SNG, Wireless Communication and preventive monitoring and measurement in the ICT industries

Direct selling through current networks

Indirect networking approach Government activities

(discussion, technology opinion, advice)

Consultative selling approach

ICT Seminars and workshop through IEEE organization

Sponsorships activities

Differentiation

Strong pre sales support Unique selling preposition Advanced Commercial

strategy i.e. packaged through other vendor’s solution - approach though any Headend vendors like Harmonic, Ericsson, Thomson, Appear TV

Strong and attractive after sales support

How to Sustain Sustainability

Brands and companies are waking up to a new inconvenient truth Understanding today’s consumer landscape Priorities in people’s lives Positioning for the future (and today) The bigger picture: Why the world will change Reshaping the marketplace

Source: http://thefuturescompany.com/free-thinking/how-to-sustain-sustainability/

Regulatory & SocialProcesses

Environment EmploymentCommunity

Operations Management Process

Supply Production Distribution Risk management

Customer Management Processes

Selection Acquisition Retention Growth

InnovationProcesses

Opportunity ID R&D portfolio Design/develop Launch

Financial Perspective

CustomerPerspective

InternalPerspective

Learning & GrowthPerspective

AvailabilityPrice Quality FunctionalitySelection Service Partnership Brand

Product/Service Attributes Relationship Image

Customer Value Propotion

Improve Cost Structure

Increase AssetUtiilization

Long-TermShareholder Value

Expand RevenueOpportunities

Enhance Customer Value

Productivity Strategy Growth Strategy

Human Capital

Information Capital

Organization Capital

TeamworkAlignmentLeadershipCulture

Business Strategy – Strategy Map – Balanced Scorecard

Source: Robert Kaplan & David Norton

43

Current Cellular NetworkCelluler Operators in Indonesia

CDMAGSM (2G) & 3G

Source : From Several Sources

Subscribers (mil)

TE

LK

OM

SE

L143

XL

AX

IATA

IND

OS

AT

TH

RE

E

AX

IS FL

EX

I

ES

IA

CE

RIA

FR

EN

HE

PI

Sm

art

63.2

64.9

1816

13,88

30,5

0.51,9

44

Current Cellular NetworkBroadcast Operators in Indonesia

Source : From Several Sources

No. of Transmission sites

TVRI

RCTI

MN

CTV

GLO

BALT

V

TRAN

STV

IND

OSI

AR

376

ANTV

TVO

NESC

TV

MET

ROTV

49

28 30

4740

3126

30 27

52

TRAN

S7

Others

Group of Media

1.

2.3.

4.

5.

6.

Broadcasting in Indonesia

Digital Dividend

SulawesiKalimantan

о

о

о

оо

Banda Aceh

Sabang

Medan

Palembang

Jakarta

оCirebon

оSemarang

оSurabaya

ооо

Ketapangо о о

Sumbawa

о о

о

о

о

Singkawang

оoSampitBanjarmasin

о

о

о

о

Balikpapan

Samarinda

Tarakan

о

оо

о

о

о

оBatam

о

Toli-toli

оо

o

Sibolga

оо

Meulaboh

Tapaktuan

оNatal

Padang

Bengkulu

Kalianda

оBelitung

o

Kalabahi

o

o

o

o

o

Saumlaki

oo

o

Tobelo

oPalopo

Sumatera

Jawa Nusa Tenggara Maluku - Papua

Pontianak

Atambua

to Thailand

to Perth, Australia

to Asia Pacificto India

о

o

o

o

oo

o

Raba

Waingapu

Ende

Kupang

Makassar

Bulukumba

Kolaka

Kendari

Ambon

ParigiPalu

Gorontalo

Manado

Ternate

Sorong

Fakfak

Manokwari Bia

k Sarmi

Jayapura

Timika

Merauke

Maumere

Mataram

= New Network= Existing Network= Landing Point

1. Sumatra 7402.5 km

2. Jawa 3542 km

3. Kalimantan5345.5 km

4. Sulawesi 5813 km

5. Maluku 2988 km

6. Nusatenggara 3480 km

7. Papua 4958 km

8. Connecting Line 2063 km

Palapa Ring Project

47

Source : Sardjoeni Moedjiono, 2009

56,988 KM Total Palapa Ring Project 35,280 KM Fiber optic submarine; 21,708 KM Fiber optic underground 33 Provinces; 440 Kabupaten / Kotamadya

National Fiber Optic Backbone

E-Business Regulation Establishment (2009-2010)

Basic Instrument and implementation, Data Exchange, E- Payment, E-Commerce M-Commerce

Basic Instrument of E-Business Establishment : Electronic Signature Certification Authority Supervisory Body for CA Data Exchange Interchange Card Payment (APMK) E-Money :

http://blogs.depkominfo.go.id/asem-indonesia/about-indonesia/ict-in-indonesia/

E-Business Regulation

Plan of Action to be achieved by 2015 (The World Summit on the Information Society/WSIS):

The village with ICT and establish community access points; Universalities, colleges, secondary schools with ICTs; Scientific and research centers with ICTs; Public libraries, cultural centers, museums, post offices and

archives with ICTs; Health centers and hospitals with ICTs; Local and central government department and establish websites and email addresses;

To adapt primary and secondary schools curricula to meet the challenges of the Information Society taking into account national circumstances;

To ensure that all world’s population have access to television and radio services; To encourage the development of content and to put in place technical conditions in order

to facilitate the presence and use of all word languages on the internet; To ensure that more than half world’s inhabitants have access to ICTs within their reach.

http://blogs.depkominfo.go.id/asem-indonesia/about-indonesia/ict-in-indonesia/

To connect

Indonesia WSIS Plan

Common Platform e-Business (2012-2014)

Synchronize e-Payment and e-Trading Implementation : Unification of e-Commerce and e-Payment for domestic and Cross-border. Availability of Regulation and guaranteed e-Commerce Implementation. Increased trade through E-Commerce Trading house for Trading sector, Industry and SME

Convergence in E-Business Implementation : National Single Window for e-Trading and e-Commerce Harmonization of domestic and cross-border e-Commerce Follow the evolution of mobile technology with M-Commerce National backbone Network plan

http://blogs.depkominfo.go.id/asem-indonesia/about-indonesia/ict-in-indonesia/

E-Business Regulation

WEF Global Competitiveness Index Framework

Source: World Economic Forum (WEF) 2014

Gartner: Top 10 Strategic Technology Trends For 2015

Mobile Device Diversity and Management Mobile Apps and Applications The Internet of Everything Hybrid Cloud and IT as Service Broker Cloud/Client Architecture The Era of Personal Cloud Software Defined Anything Web-Scale IT Smart Machines 3-D Printing

Source: Gartner 2014

References: Barney Jay B. Hesterly William S. {2009}. Strategic Management and Comp

etitive Advantage: Concepts and Cases, 3rd Edition, 2009 Kaplan, Robert S.; Davod P. Norton. {2004). Strategy Maps: Converting Inta

ngible Assets into Tangible Outcomes. Boston Massachusetts, USA: Harvard Business School Press.

http://www.forbes.com http://www.gartner.com/technology/research/digital-business/ http://www.mobileindustryreview.com/media/Global-Internet-Use.png World Economic Forum, The Global Competitiveness Report, 2014–2015 http

://thefuturescompany.com/free-thinking/how-to-sustain-sustainability/ tp://blogs.depkominfo.go.id/asem-indonesia/about-indonesia/ict-in-

indonesia http://www.ericsson.com/ www.akamai.com www.Kominfo.go.od www.mastel.or.id

Have a Compete and Sustain Business