18

CHAPTER II

ANALYSIS

2.1. MARKET AND INDUSTRY ANALYSIS

2.1.1. Macro Environment in IT Industry

To make analysis about external factors that affect our new

business, we use PESTEL Analysis, which is a framework or tool used

by marketers to analyze and monitor the macro-

environmental(external marketing environment) factors that have an

impact on an organization. This analysis includes P (Political), E

(Economic), S (Social), T (Technological), E (Environmental), and L

(legal). (Academy, 2012). Here is PESTEL Analysis for our new

business ideas.

Political

Indonesia as one of the go to trade country is having a lot of

investor from asia and out of asia, one of the factor that enable this was

the commitment from goverment to build relationship with other

country and maintaining it. With that said, it should be noted that

Indonesia have a relatively low political power with other big

countries, especially with developed country, it could be seen that with

the fast growth of overseas companies in Indonesia, though it wasn`t

18

19

mean a bad things in the future if Indonesia can not stopped them from

entering Indonesia market then there will be a lot of local companies

that is forced out of competition. One of the biggest threat is the

emergence of China as the leading economic force in the world.

Economic

Indonesia as a developing country is having a good year, the proof

for it was the relatively high rate of Indonesia economic growth until

November 2012 is 6.2 %. Although its lower than the beginning of

2012 (6.4.%), but still greater than the other country economic growth

which only 1-2 %(Straitstimes, 2012). It was even projected that

Indonesia economic growth in 2013 to 6.8% (http://www.bbc.co.uk,

2012).

With this good prospect, Indonesia was rewarded with an upgrade

of investment grade rating from Ba1 to Baa3, the first time since Asian

financial crisis.(http://www.moodys.com, 2012)

Because of those factors, it is to be expected a surge of

investments from around the world, and also a fast growth of business

that include all line of industry. Of course the affter effect of that was

the increasing expenditure of consumers in Indonesia. These growth of

course means a big window of opportunity for companies to gain

profit, including the telecommunication businesses. One of the

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company that exploit this growth is mobile phone vendors, such as

Samsung and Apple.

Relating to the usage of NFC system in a lot of smart phones

nowadays, this economic situations means that there will be a

significant number of smartphones in Indonesian market, which will

help our company penetration into the market itself.

Social

With a fast growth of economic, Indonesia socially also adapts the

culture that it brought. One of the most visible changes is in people`s

buying behaviour, where in the past, people used mobile phones only

as a communication tools. But now, People use mobiles phones as a

social tool and becoming more and more of a commodity. The evident

of that was the increasing number of smartphones sold in Indonesia

with an amount of 2,5 million units (In 2012 second quarter),17 %

increase from last year. From those number, 410 thousands

smartphones were sold above 4 million rupiah, which was a relatively

expensive price in Indonesia (http://blog.nielsen.com, 2011).

Based on the Nielsen company graphic reseach below, there is

also a shift of smartphones users, into a younger age which means in

the next 10 years, it is the time for social tools product to prosper, such

as : social media (Facebook), smartphones (Iphone, Samsung), Tablet

(Ipad), and even social telecommunication program (Skype) . With this

21

social situation in Indonesia, it is open opportunities for the new

business that more focused on middle until high class people, but

could help community in a better way, because of faster doing the

transaction that can reduce queuing.

Figure 2.1 Indonesian Smart Phone Users

Source : AC Nielsen

Furthermore, according to Socialnomics, a popular social media

blog, by 2010 Generation Y will outnumber Baby Boomers and 96%

of them will have joined a social network. There are over 200,000,000

blkogs and 54% of bloggers post content or tweet daily. And the most

fascinating fact of all is that it took 38 years for radio to reach 50

22

million users, 13 years for telivision, 4 years for the internet, only 3

years for the iPod and Facebook added 100 million users in less than 9

months and most recently, iPhone applications hit 1 billion in only 9

months. This data shows how technology broke the barrier of social

and geographic limitation and the fast growth of technology, majorly

affecting the face of social. (Chang, 2011)

Technology

Technology was developed very fast in the market, and the

development wasn`t just happened in one or several industry, but in all

industry. These technology development was of course happened

because of demands that came from the market, things such as cost

efficiency, system optimizer, and database managing was always the

demands for every industries and companies to gain competitive

advantage. It was also true though that technology was easily copied

and implemented elsewhere, but that is also the reason that companies

such as Apple to innovate products that was beyond imagination (At

that time) and how Samsung and other vendors saw the opportunity in

the business and modified Apples business models.

The fast technology development could be seen in the

development of mobile phone. Originally used only for

communication and feature such as messaging, now they able to

support infrared, bluetooth, wi-fi, camera, MMS, E-mail, etc. Of

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course with this new technology and the facts that people nowadays

can not leave without their phone, companies start to exploit the usage

of mobile phone, spreading the usage of mobile phone for distributing

contents, mobile banking and payment, tracking and privacy, and

advertising or mass media medium.

Environment

With an increase in technology, if not being handled correctly will

cause major impact to environment. Mobile phone as daily tools for

people was recently confirmed by World Health Organization (WHO)

that mobile phone usage may present a long term health risk, and

classifying mobile phone radiation as a “carcinogenic hazard” and

“Possibly carcinogenic to humans” after a team of scientists reviewed

studies on cell phone safety. Studies even shown that about 40-50% of

the environmental impact occurs during the manufacturing of the

printed wiring boards and integrated circuits, worse was the fact that

the averae of consumers change mobile phone was 11 – 18 months,

this discarded phones then cointribute to electornic waste. To

overcame that, countries make strick regulation about companies waste

management, in Indonesia, it was manifest as goverment regulation

No.18 Year 2008 about waste management (“Undang-undang republik

Indonesia nomor 18 tahun 2008 tentang pengelolaan sampah”). In this

case, with using smart phone with NFC technology, we could help to

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reduce the mobile phone garbages, because NFC could makes people

are depend on it and we optimist that people want to use the NFC

smart phone in more long cycle time.

Legal

As technology was easily copied by other companies, it was

common that they build entry barrier using patent, which was made

and recognized by World Trade Organization (WTO), but the problem

was economic is a free world which consumers have their own

perspectives and interpretation to pantent problems, the best example

was the patent lawsuit : Apple Vs Samsung in America and in South

Korea, with both brands winning at their own home base. But

phenomenon happened when Apple beat Samsung in America,

GalaxyS3 that was produced by Samsung was sold out in America

after they lost the lawsuit !! One of the comment was, “If Samsung

GalaxyS3 and Iphone 4 used the same technology, why the price differ

far ?” (Bedigian, 2012). Though it was a contoversy and opened for

debate, it is better for company to use “Patent” strategy to defend their

position, because it might not be more of a benefit than loss. In this

case, we must create a program of continuous innovation to be the

winner in the market with offer uniqueness for customers who is using

our products and services.

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2.1.2. IT System Provider Industry

After we know about external environment, now we continue

to make industry and competitive analysis, which is should focus on

the competitive dynamics of the industry. The most powerful and

widely used tool for assessing the strength of the industry’s

competitive forces is the Michael Porter’s five forces model of

competition. This model holds that competitive forces affecting

industry attractiveness go beyond rivalry among competing sellers and

include pressures stemming from our coexisting sources. The five

competitive forces affecting industry attractiveness are : (John E.

Gamble, Essentials of Strategic Management, 2011, pp. 41-42)

1. Competitive pressures stemming from buyer bargaining power.

2. Competitive pressures coming from companies in other industries

to win buyers over to substitute products.

3. Competitive pressures stemming from supplier bargaining power.

4. Competitive pressures associated with the threat of new entrants

into the market.

5. Competitive pressures associated with rivalry among competing

sellers to attract customers.

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Porter’s Five Forces Analysis

Figure 2.2. Current versus Future Porter’s Five Forces

Source : (John E. Gamble, 2011) and Focus Group Discussion

Bargaining Power of Buyers

Bargaining power of buyers is High, because people in Indonesia still

not familiar with NFC technology, and connecting NFC technology

with the existing operating system that the corporate customers use is

not easy and need a lot of effort to make Merchants believe that NFC

technology could match with their system, in this case is to persuade

and appeal the benefit of transaction through NFC paying method

(Effecient and fast) vs other paying method. It should be noted that

NFC paying method that we bring doesn`t intend to replaced the

company available paying method. As new company, we will gain

more feedback from Merchants and end customers about the daily use

of NFC technology, so we need to fulfill their requests. The customers

is the potential companies that can implement NFC technology, and

Threats of Subtitute Products

HIGH

Buyers PowerHIGH

Threats ofNew EntrantsMODERATE

SupplierPowerHIGH

Competitive Rivalry

MODERATE

Threats of Subtitute Products

LOW

Buyers PowerLOW

Threats ofNew EntrantsMODERATE

SupplierPowerLOW

Competitive Rivalry

MODERATE

Current Future

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the end customers is the people who will use smart phone with NFC

technology to make transactions.

In The future, the bargaining power of buyers become low, the

assumption for that is the merchants already know about NFC and use

it. As this technology is an integrated system, Merchants will have less

power and use it for longer term, because if they choose to change

their NFC system into other provider, the switching costs is high.

Bargaining Power of Suppliers

The suppliers for NFC technology implementation are NFC tag and

NFC machine suppliers. The bargaining power of supplier in the NFC

is High because NFC technology still new in the market, which mean

there are little to none NFC suppliers or distributor in Indonesia, so the

power of NFC suppliers are high.

In the future, the bargaining power of supplier is low, the assumption

for that is there will be more NFC tag provider/distributor/supplier in

Indonesia, which will also compete in term of price, services and

distribution for their customers.

Threats of New Entrants

The threat of new entrants in our new business model is Moderate,

because this is the new technology in Indonesia now, but in the future

there must be some competitors that offer new technology that could

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attack our NFC technology. We choose moderate because in the

future, we already have big partner in business, so other business will

choose us automatically as their partner than the new companies. It

depends on how we success to build strong brand image in the market.

Threats of Substitute product

The power of substitute product in this case for end customers is High,

because sometimes people still don’t want to learn new thing and

prefer to use traditional way, or use RFID tag from mobile provider

such as Telkom EZY. Also customer can use prepaid card that have

RFID chip inside, but all of that only in the payment process. But for

the whole system itself, the substitute is only the traditional way. The

other substitute product that already existed in the market are credit

card, debit card, and prepaid card, that could reduce the time to do

transaction (for prepaid card it is about 3 minutes to do the

transaction), such as Flazz Card from BCA and e-tol from Bank

Mandiri. This kind of product could be the substitute product because

they are already existed in the market and customers already familiar

and convenience to use the products.

Competitive Rivalry

Competitive Rivalry is Moderate, because although our business is

new and don’t have the apple-to-apple competitor, but the other

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companies that offer the product and services to make faster of doing

business are our competitors, such as provider for prepaid card, credit

card, debit card, and RFID. We state this is Moderate, not high,

because we bring new technology to Indonesia and we are first mover

in this technology now. But, in the future could be a lot of competitors

who want to grab our market share with almost the same product and

services, so we must build strong relationship with corporate

customers and also with end customers with customer retention

program.

2.1.3. Market Profile and Opportunity

As our NFC technology product is targeted for a middle – up

class consumer, we targeted retailer or wholesaler industry which also

targeted a middle – up class consumerand cashless customers. To be

more specific, the end users that we targeted is the consumer who pays

their product using credit cards and prepaid cards. We don't use this

technology to replace the current payment methods, but we want to

add new method to do the transactions with using smartphone. The

people who love doing payment using credit card and prepaid card are

mostly aware about the speed of doing transaction, so we select them

as our targeted customers.

The opportunity in this business is high, as the total number of

credit card totaled 15,8 million cards until November 2012 itself,

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which came from 20 company publishers (Kontan.Co.Id, 2012). The

prepaid card itself is also keep increasing. For the example in BCA,

there are more than 3.3. million Flazz Card already used in the market

until the first quarter of 2012 (About BCA: Hubungan Media, 2012).

Also On the first quarter of 2013, Trans Jakarta already launched e-

ticketing using prepaid card with the prediction of transactions about 1

million transactions/ day (About BCA : Hubungan Media, 2013). It

means many people are aware about technology.

The reason why we choose a middle – up consumer oriented

retailer or wholesaler is because of their relatively expansive products,

which usually make their consumer use credit cards, rather than cash.

And also for people that use prepaid card, because this is the people

who aware of technology and love to be cashless.

As an example, we use Mitra Adi Perkasa group which have

numerous expansive brands, consisting of several business, such as

retail business (Mark & Spencer, Zara, Massimo Dutti, Pull & Bear,

Bershka, etc), department store (Sogo, Lotus, Debenhams, Seibu, and

Alun-alun), and Cafe and restaurant (Chatter box, Starbucks, Pizza

Marzano, Burger King, Cold Stone, Domino Pizaa, etc). On year 2011,

MAP group gain a total net revenue of 5,9 trillion rupiah, which

majorly came from their retail and wholesale sales 5 trillion rupiah

(Annual Reports : MAP Annual Report, 2011)

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Other factor of opportunity related with what we mention in the

background that nowadays, people are aware in technology and love to

follow technology. We could see that Indonesia is the 2nd

Facebook

users in the world with total users about 3, 482, 400 and 22 % of

Indonesian people are using mobile phone to access internet. This

creates opportunities for IT business to develop innovation using smart

phone to enter the market.

With using NFC technology, we could enter the various

industries, such as Consumer Goods, Banking, Other Services

Company, Entertainment, etc to make the business more efficient.

NFC technology also could increase companies profit because can

attract customers to use the technology.

2.2. TOWS ANALYSIS in IT Industry

To analyze deeper, we make TOWS analysis which is analyze from

external to internal. TOWS Analysis is a variant of the classic business tool,

SWOT Analysis. TOWS and SWOT are acronyms for different arrangements

of the words Strengths, Weaknesses, Opportunities and Threats. The TOWS

matrix illustrates how the external opportunities and threats facing a

particular corporation can be matched with the company`s internal strengths

and weaknesses to result in four sets of possible strategic alternatices

(Thomas L.Whellen, 2008).

32

In this case we use TOWS analysis, as it emphasizes the external

environment rather than the internal environment. You can also use them to

think about a process, a marketing campaign, or even your own skills and

experience.(http://www.mindtools.com/pages/article/newSTR_89.htm,

2012).

2.2.1. Threats

- Our project is create new business model using NFC technology,

but as we know that technology is growing so fast and it will

create more competitors that offers the same or better technology

than our company in Indonesia.

2.2.2. Opportunities

- Less competitor

Of course if we implement new business model, we will became

pioneer of NFC technology implemented in Indonesia and still less

competitor in the beginning, but we must make strategies to

sustain in the market.

- Create New Market

With new technology to doing business, we will create new market

segment that people who aware in technology and need efficiency

to doing their business or daily transaction.

- High technology awareness

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We know that people already happy to using new technology and

always wait for innovation, especially young generation. This is

good opportunity to bring this new technology to Indonesia.

2.2.3. Weaknesses

- This is new technology and still have chance to reject by the

market because in the beginning, corporate customers will think

this is an expensive technology to implement and they don’t know

whether market will or will not accept this technology.

- Our system couldn’t be implemented remotely, especially outside

Jakarta. So, we need more team in every location outside Jakarta.

- Budget dependence

Because this is new technology for doing business and Indonesia

still don’t have NFC providers, so we need foreign investor to help

us in terms of investment.

2.2.4. Strengths

- Innovation in IT and business process

With using NFC technology, it can make innovation in IT and

business process which make more efficiency for end customers

and merchants.

- Our system can be implemented in any kind of industries

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NFC technology could be implemented in any kind of industries

because we make our application system general and can be

customized based on corporate customers need.

- Blue Ocean Strategies

This new business model will surely create Blue Ocean Strategies,

because it is new technology and create new market segment.

2.3. IT System Provider Current Business Model Canvass

2.3.1. Overall Business Model

Business Model Canvas is one from many tools that’s

important to get wider view of our IT Innovative company business

process and their system, and to breaking into small pieces the detail

of their business process and their system. With Business Model

Canvas also give us answers, “How Company give added value and

competitive advantage for their Shareholders, and for the ultimate

goal, how the company gain more profit and survive”.

We believe a Business Model Canvas can best be described

through nine basic building blocks that show the logic of how our IT

Innovative Company intends to make money. The nine blocks cover

the four main areas of a business: customers, owner, infrastructure,

and financial viability. The business model is like a blueprint for a

35

strategy to be implemented through organizational structures,

processes, and system. (Osterwalder & Pigneur, 2010, pp. 15-19)

Here are the nine building blocks in Business Model Canvass :

1. Customer Segments

The customer segments building block defines the different

groups of people or organizations an enterprise aims to reach and

serve. (Osterwalder & Pigneur, 2010, p. 20)

2. Value Proposition

The value propositions building block describes the bundle of

products and services that create value for a specific customer

segment.(Osterwalder & Pigneur, 2010, p. 22)

3. Channels

The channels building block describes how a company

communicates with and reaches its customer segments to deliver

a value proposition. (Osterwalder & Pigneur, 2010, p. 26)

4. Customer Relationships

The customer relationships building block describes the types of

relationships a company establishes with specific customer

segments. (Osterwalder & Pigneur, 2010, p. 28)

5. Revenue Streams

The revenue streams building block represents the cash a

company generates from each customer segment (cost must be

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subtracted from revenues create earnings). (Osterwalder &

Pigneur, 2010, p. 30)

6. Key Resources

The key resources building block describes the most important

assets require to make a business model work. (Osterwalder &

Pigneur, 2010, p. 34)

7. Key Activities

The key activities bulding block describes the most important

things a company must do to make its business model work.

(Osterwalder & Pigneur, 2010, p. 36)

8. Key Partnerships

They key partnerships building block describes the network of

suppliers and partners that make the business model work.

(Osterwalder & Pigneur, 2010, p. 38)

9. Cost Structure

The cost structure describes all cost incurred to operate a

business model. (Osterwalder & Pigneur, Business Model

Generation, 2010, p. 40)

2.3.2. IT System Provider Current Business Model Canvass

In IT System Provider business, the goal is to fulfill customers

need with using IT products and services. In this case, we must know

who is our customers, and what are the products and services that they

37

need to increase their business performance, an also end users that will

use our products and services. In this part of this project, we would

like to compare the current business model canvass in IT consultant

industry and our recommendation for implement new technology, such

as NFC technology in Indonesia. This is the current business model

canvass for IT System Provider :

Figure 2.3. IT System ProviderCurrent Business Model Canvas

Source : (Osterwalder, 2010, p. 44) and Focus Group Discussion

Cost

Structure

Revenue

Streams

Key Partnership Key Activities

Key Resources

Value

Propositions

Customer

Relationship

Channels

Customer

Segments

Software and

Hardware

Vendor

Website

Email

Dedicated Personnel

Assistance

Marketing

Service Fee

Maintenance Fee

IT infrastructure and maintenance

Salaries

License

Fulfill Corporate

Customers Need

Fast to handle

complaints

Software

development

Maintenance

Activity

Problem Solving

Corporate

Customers

(Diversified)

Software and

network engineers

IT Infrastructure

(hardware and

software)

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2.4. Idea Generation

As stated in the business idea chapter, there are a lot of possibility

usage using NFC chip and NFC tag technology. NFC is more short range than

RFID, it gives a more security features, because there won`t be no un

authorized communication takes place. Another advantage is the low power

consumption and security concers such as bluetooth, and also works without

power source, using the help of NFC Tag. the figure below will show the

general usage of it.

Figure 2.4. Potential NFC Technology Usage

Source : (Nikhila, 2012)

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We realized though, to gain a bigger market share, we should lower

the technology as there are still a good number of mobile phone users that

doesn`t have NFC technology. In this case, we also implement a limited but

optimal usage of QR code, and other feasible technology.

2.5. Competitive Strategic Movement

To determine the company strategy, we use two types of analysis tools, as

follows:

2.5.1. The Diamond Strategy

The Diamond Strategy provides executives and consultants a concise,

coherent way to analyze, integrate, summarize, and communicate

product, business, and corporate level strategies. This model helps

answer questions about what the strategy is and what it will be in the

future. This model consists of :

1. Arenas

2. Differentiators

3. Vehicles

4. Stagind & Pacing

5. Economic Logic

The Details of each elements could be seen by the figure below.

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Figure 2.5. The Diamond Strategy Model

Source : (Mason A. Carpenter, 2009)

IT System Provider’s Diamond Strategy Analysis

1. Arenas

Our business is an IT services that include in the making of

hardware and software, that based on smartphone or mobile phone

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base technology. As trends go by though, we realize that

technology keep on changing in the eye of consumers. We decide

that currently NFC tech will be the next trend to come in

Indonesia. This new tech of course will be sold through B2B

channel with our end users the “Smartphone user”.

2. Vehicles

To be a good company, we choose to train our resources

internally, with the help of programming experts in this business.

Also marketing will be done through direct product presentation to

corporates.

3. Differentiatiors

The difference in our business is the high customization of our

product (According to consumer needs or wants), good styling

packages to attract end user (Using the help of designer), and the

reliability of the product itself.

4. Staging

As stated above, the “easy to imitate” and “fast development”

nature of technmology, force us to expand our business quiet

rapidly, at least nationally and focusing in big cities, because

succes will always be smelled by follower and the barrier entry in

this business is really low, that`s why big companies with big

horizontal or vertical integration is our main target.

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2. Economic Logic

The good thing of our business model is as a first comer, our

product could be sold at premium prices. The price though isn`t

expensive enough to scared the corporte consumers, because for

some of our systems, we implement a “revenue per transaction”,

which the more end user use our services, the more revenue itself,

and vice versa. Of course for a bigger usage, such as corporate

systems, or mass systems we charged per projects. On the other

hand, contracts is negotiable flexibly.

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Figure 2.6. The Diamond Strategies of NFC Technology

Source : (Mason A. Carpenter, 2009) and Focus Group Discussion

2.5.2 Value Chain

A Company’s value chain identifies the primary activities that create

customer value and related support activities (John E. Gamble, 2011,

ARENAS

VEHICLES

DIFFERENTIATIORS

STAGING ECONOMIC

LOGIC

ARENAS

IT services including hardware and software

(Smartphone / Mobilephone base tech)

Channels using websites, smartphone application, and

emails

Smartphone user segment as an end users, but through

B2B segment

Using mobile/smartphone base tech (Adapting to

trends), now NFC tech

VEHICLES : How will we get there ?

Resources training and Internal Development

Differentiations : How will we win ?

Differentiations in Customization, Product reliability, and

Styling

STAGING : What will be our speed and

sequence of moves ?

Fast speed of expansion

Fast sequence of initiatives

ECONOMIC LOGIC : How will returns be

obtained ?

Premium prices due to proprietary

product features

44

p. 78). According to (Thomas L.Whellen, 2008), value chain analysis

is a linked set of value-creating activities that begin with basic raw

materials coming from suppliers, move on to a series of value-added

activities involved in producing and marketing a product or service,

and end with distributors getting the final goods into the hands of the

ultimate customer.

Figure 2.7. Michael Porter’s Value Chain

Source : (John E. Gamble, 2011, pp. 41-42)

IT System Provider Value Chain Analysis

Main Activities

1. Inbound Logistic

45

The Inbound Logistic process is one of important process,

and in our business Inbound logistic is forecast the market need of

the tag by collaborating with marketing and sales team to know

how big the demand and the will of customer to use the system.

Because it’s very important since all the Tag and machine still

import, so it have to be ready when it needs. Also after do the

forecast, next is Inventory control, because by having the forecast,

but do not know the inventory current condition, the forecast being

useless.

After knowing how much machine and tag that need to

buy, there will be a process to request the tag and machine that will

be need to procurement team, and Quality Control is important, so

every single thing that will be receive and store, it has to pass the

Standard Quality. After it pas from the quality control, all things

will be store in the warehouse.

2. Operations

The operation process in the business is Designing

application, the application design will not change very often, but

the system have to be manage well, and fast response on fixing the

bug that happen, so the transaction it self will not disturb by the

error. Since the merchant that will use the system will be have a

various transaction process, the system modification will be

needed to modify the system for each merchant, also to setting the

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master product, and the payment system. While the system run, the

database has to be monitor, firstly, to keep the database can store

and show the data as fast as possible, since if the database getting

slow, the whole system will getting slow also. The next step is do

the backup, and clearing the log of the database.

System maintenance also important factor to keep the

system runs well, the maintenance will restarting server, clearing

log, and update the new security updates. The last process in the

operation is making report, either it making the system

performance report, or it making the report for the merchant about

their customer.

3. Outbound Logistic

The outbound logistic process, will be implementing the

system in the tenant that will be use the system, also the system

will need some setting before it can go live, such as setting the tag

code, and the NFC reader machine. After the setting process have

been done, the next process is testing the system, to make sure all

have been implementing and setting well.

4. Marketing and Sales

In Marketing and Sales, there will more process in

marketing than sales, since the sales target the merchant that want

to use the system, so the customer just use the system and do the

47

transaction. But the Question is what thing that we will do to

market the system?

Firstly, to market the system, we will introduce it to the

tenant, we will present about the feature, the technology, the

benefit, and also the value that the tenant get when they use the

system. After we got the deal and the tenant want to use the

system, the next will be focus to introduce people to the

application and how to use it by using our marketing plan. In the

very first markting plan, we will open booth in mall to let people

have a direct contact with our team, also we will use social media

to interact and to promote. After that, we also will put the ads in

local media and internet to grab more people to use the system. In

future planning, there will be Television ads, but it wait until our

system reach at least 5 island in Indonesia, which is: Java,

Sumatera, Kalimantan, Sulawesi, and East Indonesia.

5. Services

In our business, the services is design to meet our customer

satisfaction. The services it self for the first and very important is

Customer Care. So the customer know where they have to call or

ask when they have a question or trouble. The way to contact can

be by phone, and by social media or by Messenger. Also by call

the customer care, customer can ask about how to use and what

feature have in the application.

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After the customer service, we also provide the service for

the tenant it self, which is free maintenance for the system which

will be routine check once a month. Also can giving the training to

the employee of the tenant about how to use, how to solve small

Supporting Activities

In terms of the support activity, the support activity has their

own part in the business. For sure, the business can not run without the

support activity also. So, there are som support activity in the business,

which is: Firm Infrastructure, HR Management, Technology, and

Procurement.

1. Firm Infrastruture

The Firm Infrastructure it self, is focusing to the corporate, such

as, managing the Office infrastructure, and designing the

Corporate culture.

2. HR Management

For the HR Management, it more focus to the employee, which the

HR should recruite the people that can work with our value. Also

the HR has to giving the training and manage the employee

development system.

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3. Technology

The Technology support is focus to the tecnology infrastructure it

self, since the technology infrastructure is very important, because

without it, the business can not run. It’s not just provide the

infrastructure, also the technology support has to calculate the

infrastructure performance, is it fulfill the business need yet or still

need more improvement.

4. Procurement

The last support is procurement, which is more focusing to

reducing the cost by manage the price of things that have to buy.

Also the procurement support need to have supplier managment

and do the market reserch about things that have to buy, especially

things that will be use direcrtly to the customer.

2.6. Consideration in IT Business

In the past, there are some consideration regarding entering IT industry, and

that was resist to change, but as time past by Indonesia was starting to accept

new technology. This phenomenon though not just happened in Indonesia, but

happened globally. There are of course some consideration to be made in this

business :

1. Patent : Patent in IT business is common, the main reason for is the

nature of technology itself, and that is easy to imitate, whether the

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business model, software and even hardware. The latest example for that

was the Samsung Vs Apple case, with Apple winning the patent.

Unfortunenately this patent law is not really visible in Indonesia, and

protection to company is minimum.

2. Fast Development : The rapid development of technology in customer

perspective is a blessing to them, but in the perspective of technology

company, it is hell them. The problem is, with fast development, means

that high adaptation is also needed, that`s why company such as Apple

that was famous with their innovation products was number one in this

business (Also Samsung success following or imitating Apple`s Products).

It is also the same with company that advertise or use gadget for their

benefit, if they didn`t react quickly with the trends or demands of

customer, their investment will not be worth it.