CORPORATE DIGITAL TRANSFORMATION
Transformation can be interpreted as a comprehensive change
in strategy, operating model, organization, talent, process,
and technology utilization.
DIGITAL TRANSFORMATION -- DEFINITION

Transformation
A fundamental change in organizational logic or a fundamental change in behavior (Muzyka et al. 1995).
McKeown and Philip (2003) define transformation as a comprehensive concept that encompasses various competitive strategies adopted by
organizations to produce significant improvements in business performance. These strategies include processes in business redesign,
organizational development, overall quality management, and the use of information technology.

IT Empowerment
Dehning et al. (2003) stated that information technology (IT) is transformational when companies change the way they do business traditionally
and fundamentally by redefining capabilities, processes and relationships. Organizations should involve strategic acquisition of technology to
obtain new capabilities or capture new markets.

Digital Transformation
Digital transformation is described as the integration of digital technology and business processes in the digital economy (Liu et al. 2011).
An effort to radically utilize technology to improve company’s performance or scope (Westerman et al. 2014).
Digital transformation is about how to become an organization that utilizes technology to develop all aspects of a business model, on the
products offered, interaction with customers, and business operations.
The goal is to achieve superior, competitive and sustainable performance by changing various business dimensions, including business models,
customer experience (digital products and services), and operations (processes and decision making), which can affect the abilities or talents of
individuals and the entire value system.
DIGITAL TRANSFORMATION – TRANSFORMATION DEGREE
• Core
In this stage, companies will see innovation based on existing
products, involve every employee, because innovation is
executed in the daily activities of the company. The most
influential approach is the collection and analysis of customer
data and customer co-creation.
• Adjacent
New product/service for the current customers which is well
understood by the company. Current product/ service prepared
to acquire new target market. This category is closely related to
the company’s expertise in identifying markets. Innovation can be
said to depend on the moment.
• Transformational
“Transformational” innovation is a form of company’s bet to
achieve future goals. This type of innovation is often long term
and high-risk because it relies on new technology and target
markets. Sources of effective transformational innovation include
R&D centers, innovation laboratories, universities/researchers,
and companies on a broader scale.
DIGITAL TRANSFORMATION -- STAGES
 Corporate Culture
In the digital age, companies are required to adapt very quickly due to changes in consumer behavior and competition. In time of
transformation, leaders usually consider the necessary core components. They utilize deep data analytics, real-time customer
insights, digital solutions, process reengineering, and the latest transformation tactics. Talented leaders, business analysts and data
scientists gather to understand consumer needs and enable change.
 Innovation Journey
This model explores three phases starting from ideation/ initiation (idea generation, exploration, and selection). The second is
implementation/execution (prototyping, development). The third phase is value generation. At this stage, innovation is ready to be
applied. The main purpose of this innovation will not be far from the efficiency of the company or generate new sources of income.
 Product Innovation
People’s behavior is soon to be driven by digital technology, including economic behavior that will influence companies in making
policies. Therefore, today’s companies should have a strong understanding of how to utilize the digital world to maximize their
impact.
DIGITAL TRANSFORMATION – FRAMEWORK TO IDENTIFY THE JOURNEY
CASE STUDY -- BANKING



Corporate Culture

Abdy Salimin (Permata Bank) changed the company’s culture from the original waterfall method to agile, especially in the IT team under his reign.

Indra (BRI) made changes in some of the aspects to minimize the gap within the organization. It includes building core competencies, the mindset of
innovation, to corporate governance.

Jayaprawirya Diah (BCA), revealed that the company finally began to involve internally in the development of new ideas/products /services. This
internal involvement was then realized into a program called the BCA Innovation Awards which runs from 2013.

IT’s technical skill development program has become the Mandatory Skill Development Program. Bank Mandiri provides information technology training
to all levels of positions, from commissioners to executive officers.
Talent Acquisition

Internal training is not enough, because the corporation does not have enough capabilities to develop digital businesses. The digital business model is
new to the corporate world.

Companies have two options to acquire capabilities. First, professional hiring (pro-hire) or to hire talents outside the company. Second, implement a
hackathon to explore qualified talents who can later be recruited to the company.
Strategy & Commitment

The center for innovation development is centered in the Digital, Technology and Operations division under the auspices of Indra Utoyo. The division
was created based on the Hybrid Company Model concept implemented by BRI in the organizational scope.

The development of PermataBank’s technology products or innovations is currently only intended for the Retail Banking business unit. The
development kitchen is centered under the auspices of Abdy Salimin, the Technology and Operations division.

BCA has a decentralized development of ideas and innovations from each business unit or branch office, from the previous method which was
centralized at the head office. Meanwhile, the execution of internal development is in the Strategic IT Group (GSIT) division.

Bank Mandiri also has a vehicle for innovation, Mandiri Capital Indonesia (MCI). MCI has the duty to be a bridge between investors and entrepreneurs
in the rapidly developing fintech industry so as to maintain the sustainability of the banking business and reach a wider target market.
CASE STUDY – BANKING INNOVATION JOURNEY
Mandiri
Permata
BRI
CASE STUDY – BANKING INNOVATION PRODUCT
CASE STUDY – BANKING: FRAMEWORK TRANSFORMATION JOURNEY
Indicator
Objective
Pre-Core
Awareness of
innovation
Permata
Core
Mandiri
Adjacent
BRI - BCA
Transform
Optimizing existing products / services for
existing customer
(BRI-BCA-Mandiri-Permata)
Expanding from existing business
into “new to the company” business.
(new business, optimize, early
stages)
(BRI-BCA-Mandiri-Permata)
Developing breakthrough & inventing
things for markets that don’t exist yet
(new business, pre-market, potential to
disrupt core business)
(BRI-BCA)
Market
Both of existing
market & existing
customer
Both of existing market & existing
customer
(BRI-BCA-Mandiri-Permata)
Enter adjacent market & serve
adjacent customer
(BRI-BCA-Mandiri-Permata)
New markets (products / services); New
customer needs
(BRI-BCA)
Output
Awareness / Efficiency
Annual planning & forecasting and
detailed plan for growth
Decisions to explore, initiate project plan
& milestones
(BRI-BCA-Mandiri-Permata)
Business building strategies;
Investment budget; Detailed
business plan for ventures
(BRI-BCA-Mandiri)
Event & sharing resources
Accelerator, incubator
(BRI-BCA-Mandiri-Permata)
(BRI-BCA-Mandiri-Permata)
Venture client; CV Building; M&A; Venture
capital
(BRI-BCA-Mandiri)
Short-term: fix features / process level
(12 month); Mid-term: Innovate product
level (36 month); Moonshot: disrupt
business middle level (>36 months)
(BCA-Permata)
Short-term: improve (enrich
customer); Mid-term: penetrate
(increase share of wallet); Moonshot:
build (substantial contribution)
(BCA-Mandiri-Permata)
Short-term (new business / growth stages)
Mid-term (explore / early stages)
Transform (business model level)
Internal employee / customer
(BRI-BCA-Mandiri-Permata)
Vendor / Independent innovator
(BRI-BCA-Mandiri-Permata)
Innovation Lab
(BRI-BCA-Mandiri)
Players /
Value
Time / Period
Sources
Board member or
managerial
Tentative
Internal employee /
customer or vendor
(BRI-BCA)
(BRI)
CASE STUDY -- INSURANCE


Commitment & Work Culture

Sequis Life formed an innovation lab in January 2019 and was directly under the auspices of the CEO. Innovation lab as a new initiative directly carried by the CEO
shows a strong commitment to support transformation and innovation at Sequis. The innovation lab that is currently being developed is attached to health insurance
products.

Allianz Life Indonesia’s commitment to conducting digital transformation is demonstrated by showing a special role, Chief Digital Officer. The whole team under the
CDO is dedicated to digital transformation. Allianz itself has digitalized the process within their company.

The transformation process at Zurich Topas Life can be seen with the formation of the innovation team division. The team is tasked with managing the data
warehouse, data analysis, and innovation initiatives. Apart from this Zurich is also connected to the global team, the Center of Excellence which contributes to
innovation.
Innovation & Digitalization

Innovation at Sequis relies on a product and market approach. As previously stated, even though it sticks to the health insurance product, the innovation lab's task is
not merely to change conventional insurance products into digital ones. They do not create pure health insurance products but rather riders or additional insurance
or stick to the parent/principal insurance.

Allianz’s innovation approach starts from within the company. They optimize the roles of agents. Allianz currently provides more than 90% of its agents with tablets.
Through this way Allianz expects their agents will be more productive and customers’ data can be sent directly to the Allianz system.

Zurich Topas Life is preparing an online channel, one of which is through the website. While Zurich Indonesia is exploring more digital streams. Zurich Indonesia,
which focuses on selling general insurance, sells products online at Tokopedia.
CASE STUDY -- INSURANCE
Insurance Company
Support Application
Sequis
Products were still under development: First, products to help sales agents, Second,
the customer-facing app.
Allianz
eAZy Application: A health claim mobile application uses a mobile application from a customer’s mobile
phone (based on iOS and Android).
The eAZy Med service was launched to help order digital drugs for immediate delivery.
EAZy Payment Service: Online life insurance premium payment service, which is easy and safe to use.
Application for Agents: ASIS for iPad makes it easy for Allianz Star Network (ASN) agents in terms of mobility
in the preparation of proposals and product offerings to prospective. ASN Toolbox is a digital sales tool for
agents that simplifies and accelerates the process of making policy illustrations to be offered to prospective
customers. Expert Underwriting System is a system that automates the process of underwriting and decision
making for accepting prospective customer applications.
Collaboration with Bukalapak,
Gojek, Halodoc
insuring Gojek drivers and their
family members
in Bukalapak, Allianz sells
simpler products
with Halodoc, Allianz explores
utilizing telemedicine for
pharmaceutical
shipments
Zurich
Collaboration with Tokopedia
Business Analysis and Warehouse of Our Data: allow management to get business analysis instantly
Sales Portal: A platform that provides all information needed by our sales force.
Zurich Pro Application (Z-PRO): digitizing the sales process.
Automated Varicent Compensation System: This automated compensation system.
Training Application for Marketers (ZEL): Application to simplify the training process.
New Marketers Recruitment Application (EAZI): Application to support the process of recruiting .
Chatbot: Chatbot technology to respond to marketers’ questions through 24-hour self-service. Automatic
Voice Notification System (Kokato): Empowering customer communication using automated call technology
CASE STUDY – INSURANCE: FRAMEWORK TRANSFORMATION JOURNEY
Indicator
Zurich - Sequis
Core
Pre-Core
Awareness of
innovation
Optimizing existing products / services for
existing customer
(Zurich)
(Allianz-Sequis)
Market
Both of existing
market & existing
customer
Output
Objective
Players /
Value
Time / Period
Sources
Allianz
Adjacent
Transform
Expanding from existing business
into “new to the company” business.
(new business, optimize, early
stages)
(Allianz)
Developing breakthrough & inventing
things for markets that don’t exist yet
(new business, pre-market, potential to
disrupt core business)
Both of existing market & existing
customer
(Allianz-Zurich-Sequis)
Enter adjacent market & serve
adjacent customer
New markets (products / services); New
customer needs
Awareness / Efficiency
Annual planning & forecasting and
detailed plan for growth
Decisions to explore, initiate project plan
& milestones
(Sequis)
(Zurich)
Business building strategies;
Investment budget; Detailed
business plan for ventures
(Allianz)
Board member or
managerial
Event & sharing resources
Accelerator, incubator
(Zurich-Sequis))
(Allianz-Sequis)
Venture client; CV Building; M&A; Venture
capital
(Allianz)
Short-term: improve (enrich
customer); Mid-term: penetrate
(increase share of wallet); Moonshot:
build (substantial contribution)
(Allianz)
Short-term (new business / growth stages)
Mid-term (explore / early stages)
Transform (business model level)
(Zurich)
Short-term: fix features / process level
(12 month); Mid-term: Innovate product
level (36 month); Moonshot: disrupt
business middle level (>36 months)
(Sequis)
Internal employee /
customer or vendor
Internal employee / customer
(Zurich-Sequis)
Vendor / Independent innovator
(Allianz-Sequis)
Innovation Lab
(Sequis)
Tentative
CASE STUDY -- PENGADAIAN
 Vision & Leadership
(Corporate Long-Term Plan 2019-2023)
 Innovation Journey
CASE STUDY – PENGADAIAN INNOVATION PRODUCT
 New business model through Pegadaian Digital Service
The company seeks to expand its business reach while encouraging new
business awareness by setting up digital sales channels. Thus, the pawn
process to the purchase of gold investment can be done not only offline
but also online.
 Product innovation through Open API (collaboration with
Tokopedia)
Pegadaian’s collaboration with Tokopedia is considered a successful Open
API. Within two months, Pegadaian made an API integration with
Tokopedia for Online Gold Trading Service.
 Customer experience innovation through outlet transformation
with new concepts.
Transforming outlets so that their services are more relevant to current
market needs. The company’s strategy is to adopt the outlet cafe model to
attract more visitors. A total of 31 new outlets were launched as ofMarch
2019 under the name The Gade Coffee & Gold.
CASE STUDY – PENGADAIAN: ADJACENT
Indicator
Objective
Market
Output
Players /
Value
Time / Period
Sources
Pre-Core
Core
Adjacent
Optimizing existing products / services for
existing customer
()
Expanding from existing business
into “new to the company” business.
(new business, optimize, early
stages)
()
Developing breakthrough & inventing
things for markets that don’t exist yet
(new business, pre-market, potential to
disrupt core business)
()
Both of existing market & existing
customer
Enter adjacent market & serve
adjacent customer
New markets (products / services); New
customer needs
()
()
Annual planning & forecasting and
detailed plan for growth
Decisions to explore, initiate project plan
& milestones
()
Business building strategies;
Investment budget; Detailed
business plan for ventures
()
Event & sharing resources
Accelerator, incubator
Venture client; CV Building; M&A; Venture
capital
()
()
Tentative
Short-term: fix features / process level
(12 month); Mid-term: Innovate product
level (36 month); Moonshot: disrupt
business middle level (>36 months)
Short-term: improve (enrich
customer); Mid-term: penetrate
(increase share of wallet); Moonshot:
build (substantial contribution)
()
Short-term (new business / growth stages)
Mid-term (explore / early stages)
Transform (business model level)
Internal employee /
customer or vendor
Internal employee / customer
Vendor / Independent innovator
Innovation Lab
()
()
Awareness of
innovation
Both of existing
market & existing
customer
Awareness / Efficiency
Board member or
managerial
Transform
CASE STUDY – MANDIRI TUNAS FINANCE
 Vision & Leadership
 Innovation Journey
CASE STUDY – MTF INNOVATION PRODUCT
 Mobile Apps
 Chatbot “Marsha”
Marsha or Mandiri Assistant Virtual Sahabat Anda is a virtual assistant launched in February 2019. It is designed to
simplify customer services.
 Digital Scoring
MTF plans to develop AI-based digital scoring to accelerate the analysis process of potential customers. However,
there is no further details about the development.
CASE STUDY – MTF OPEN INNOVATION STRATEGY
 The firm relies on external resource to collaborate to develop corporate innovation and optimize sales through
digital solutions. This answers every collaboration plan with digital players, especially fintech whom the company
wants to fasten in the future.
 MTF expanded its innovation strategy by becoming an institutional lender in Amartha back in 2017. Then, it
continued later in 2019 as an institutional lender in Akseleran. Both are startups in P2P Lending.
 Other than that, the company also collaborates with Mandiri investment arm’s Mandiri Capital Indonesia (MCI) to
determine investment portfolio.
CASE STUDY – MTF: CORE
Indicator
Objective
Pre-Core
Awareness of
innovation
Core
Adjacent
Transform
Optimizing existing products / services for
existing customer
Expanding from existing business
into “new to the company” business.
(new business, optimize, early
stages)
Developing breakthrough & inventing
things for markets that don’t exist yet
(new business, pre-market, potential to
disrupt core business)
Both of existing market & existing
customer
Enter adjacent market & serve
adjacent customer
New markets (products / services); New
customer needs
()
()
Annual planning & forecasting and
detailed plan for growth
Business building strategies;
Investment budget; Detailed
business plan for ventures
Decisions to explore, initiate project plan
& milestones
Accelerator, incubator
Venture client; CV Building; M&A; Venture
capital
()
Market
Output
Both of existing
market & existing
customer
Awareness / Efficiency
()
Players /
Value
Time / Period
Sources
Board member or
managerial
Event & sharing resources
()
Tentative
Short-term: fix features / process level
(12 month); Mid-term: Innovate product
level (36 month); Moonshot: disrupt
business middle level (>36 months)
()
Short-term: improve (enrich
customer); Mid-term: penetrate
(increase share of wallet); Moonshot:
build (substantial contribution)
Short-term (new business / growth stages)
Mid-term (explore / early stages)
Transform (business model level)
Internal employee /
customer or vendor
Internal employee / customer
Vendor / Independent innovator
Innovation Lab
()
()
CASE STUDY -- TELECOMMUNICATION
 Digital Transformation in Telecommunication
MIT Sloan also recommends a new organizational framework when operators consider to adopt a component-centric business model. This framework
is believed to accelerate digital services to the market. To make it work, operators can no longer use conventional organizational structures, where the
decision-making is made based on hierarchy level.
CASE STUDY -- TELECOMMUNICATION
 Commitment
Telkom sets a vision to become a digital telco (digico) company in 2012 along with three main pillars, DeviceNetwork-Application (DNA). The company will mainly focus on building networks that will be supported by apps
and devices to strengthen the digital ecosystem.
XL Axiata implemented a 3R (Revamp, Rise, and Reinvent) strategy to run the digital transformation that has been
carried out since 2015. Revamp as an attempt to change the business model to increase the number of users in
terms of volume and value, thereby increasing profitability. Rise as a strategy to enhance the XL brand. Reinvent
as a strategy to build and grow business innovation.
CASE STUDY – TELECOMMUNICATION INNOVATION JOURNEY
Telkomsel
Telkom
XL
CASE STUDY – TELECOMMUNICATION INNOVATION PRODUCT
CASE STUDY – TELECOMMUNICATION OPEN INNOVATION STRATEGY
CASE STUDY – TELKOM GROUP BUSINESS DIRECTION
CASE STUDY – TELECOMMUNICATION: FRAMEWORK TRANSFORMATION JOURNEY
Indicator
Pre-Core
Core
XL-Hutchinson 3
Adjacent
TELKOM-TELKOMSEL
Transform
Awareness of
innovation
Optimizing existing products / services for
existing customer
Expanding from existing business
into “new to the company” business.
(new business, optimize, early
stages)
(Telkom-Telkomsel-XL-Hutchinson)
Developing breakthrough & inventing
things for markets that don’t exist yet
(new business, pre-market, potential to
disrupt core business)
(Telkom-Telkomsel-XL-Hutchinson)
Market
Both of existing
market & existing
customer
Both of existing market & existing
customer
Enter adjacent market & serve
adjacent customer
(Telkom-Telkomsel-XL-Hutchinson)
New markets (products / services); New
customer needs
(Telkom-Telkomsel-XL)
Output
Awareness / Efficiency
Annual planning & forecasting and
detailed plan for growth
Business building strategies;
Investment budget; Detailed
business plan for ventures
(Telkom-Telkomsel-XL-Hutchinson)
Decisions to explore, initiate project plan
& milestones
Event & sharing resources
Accelerator, incubator
(Hutchinson)
(Telkom-Telkomsel-XL-Hutchinson)
Venture client; CV Building; M&A; Venture
capital
(Telkom-Telkomsel-XL)
Short-term: fix features / process level
(12 month); Mid-term: Innovate product
level (36 month); Moonshot: disrupt
business middle level (>36 months)
Short-term: improve (enrich
customer); Mid-term: penetrate
(increase share of wallet); Moonshot:
build (substantial contribution)
(Telkom-Telkomsel-XL-Hutchinson)
Short-term (new business / growth stages)
Mid-term (explore / early stages)
Transform (business model level)
Vendor / Independent innovator
(Telkom-Telkomsel-XL-Hutchinson)
Innovation Lab
(Telkom-Telkomsel)
Objective
Players /
Value
Time / Period
Sources
Board member or
managerial
Tentative
Internal employee /
customer or vendor
Internal employee / customer
(Telkom-Telkomsel-XL-Hutchinson)
(Telkom-Telkomsel)
(Telkom-Telkomsel-XL-Hutcshinson)
CASE STUDY -- FMGC
Considering that FMCG produces products ready for consumption, DSResearch recommends the following
framework designed by customer-centric oriented Crowd Companies.
CASE STUDY -- FMGC
 Customer Experience Innovation

The company is also expanding access to sales of its products by collaborating with several e-commerce. Two of them are Lazada
and JD.id.

The expansion of sales channels into e-commerce cannot be fully said to be an internal innovation because FMCG only acts as a
merchant or product supplier

In this case, many large FMCG brands in Indonesia, especially in food and beverage products, have also taken similar strategies.
 Operational Innovation

Transformation was carried out to improve efficiency in the value chain so that the company could be more flexible and precise in
producing customer demand. This is also to achieve top-line growth and efficiency. It is not clear whether this includes the
Indonesian market as well as the global holding has two entities that run different product category businesses.

Transformation in the FMCG sector can have positive results on the operational side. This sector is closely related to the long
production and distribution process. By adopting technological solutions, FMCG can improve efficiency, both in terms of time and
cost.

In a report by CapGemini and Intel Corporation, big data and IoT are the right combination of solutions to be implemented for the
manufacturing or retail sectors.
CASE STUDY – FMGC HM SAMPOERNA
 Commitment

The annual report of PT HM Sampoerna 2019 has also included their commitment to market this new product. Based on an
analysis of the materiality aspect of sustainability in 2019, product innovation is one of the company’s priorities as well as
the only topic of business transformation.
 Business Transformation

PMI’s ambition is that at least 30% of adult consumers who decide to keep smoking switch to this smoke-free product in
2025 compared to 2010, to realize the main goal, namely the smoke-free future.

Sampoerna began to follow in the footsteps at the end of 2016. Along with the priority to market new products while
marking a change in the business model at Sampoerna. As a new business strategy, three transformation divisions in
Sampoerna were formed in the same year.

1. Products

2. The external transformation that will deal with how to interact with stakeholders. Sampoerna realizes that the company is on its own in
introducing new products

3. Internal transformation related to how to build a new work culture and way of operating
 Value Creation

A project-based team as a transformation team framework successfully brings cultural changes that are considered positive by the
company. First, every idea initiated by the team gets help faster, especially in terms of administration and bureaucracy.

Second, everyone involved in the project will focus on a clear mission that automatically leads to a clearer assessment
CASE STUDY – FMGC: FRAMEWORK TRANSFORMATION JOURNEY
Indicator
Other
Pre-Core
Objective
Awareness of innovation
Core
Adjacent
HM Sampoerna
Transform
Optimizing existing products / services
for existing customer
Expanding from existing business
into “new to the company” business.
(new business, optimize, early
stages)
Developing breakthrough & inventing
things for markets that don’t exist yet
(new business, pre-market, potential to
disrupt core business)
(HM Sampoerna)
(Other)
Market
Both of existing market
& existing customer
(Other)
Both of existing market & existing
customer
Enter adjacent market & serve
adjacent customer
New markets (products / services); New
customer needs
(HM Sampoerna)
Output
Awareness / Efficiency
Annual planning & forecasting and
detailed plan for growth
Business building strategies;
Investment budget; Detailed
business plan for ventures
Decisions to explore, initiate project plan
& milestones
(Other)
Players /
Value
Time / Period
Board member or
managerial
(Other)
Event & sharing resources
Accelerator, incubator
Venture client; CV Building; M&A; Venture
capital
(HM Sampoerna)
Tentative
Short-term: fix features / process level
(12 month); Mid-term: Innovate
product level (36 month); Moonshot:
disrupt business middle level (>36
months)
Short-term: improve (enrich
customer); Mid-term: penetrate
(increase share of wallet); Moonshot:
build (substantial contribution)
Short-term (new business / growth stages)
Mid-term (explore / early stages)
Transform (business model level)
Internal employee / customer
Vendor / Independent innovator
(Other)
Sources
(HM Sampoerna)
Internal employee /
customer or vendor
(Other)
(HM Sampoerna)
Innovation Lab
(HM Sampoerna)
CASE STUDY – TRANSPORTATION & TOURISM – BLUE BIRD
MaaS is a solution for urban traffic management. This
model requires the system to integrate various modes of
transportation, simplifying route planning to make it
more efficient, and using customer-friendly service or
access.
CASE STUDY – BLUE BIRD – PRODUCT INNOVATION & COLLABORATION
Year
2017
Product Innovation & Collaboration
•
•
•
•
Collaboration with Gojek so that customers have a wide choice of ordering channels to get Blue Bird services
Launch of Jakarta Airport Connexion (JAC) -Bigbird airport shuttle to and from Soekarno Hatta airport
Easy ride innovation, customers can stop taxis on the road and make non-cash payments using the My Blue Bird
application
Collaboration with Traveloka provides JAC Bigbird and Goldenbird bookings through the Traveloka application
2018
•
Launched a new feature on My Blue Bird, Fixed Price. This feature makes it easy for customers to see the certainty of
prices from the beginning of the trip with a fixed price
2019
•
The acquisition of Cititrans reached Rp115 billion. Businesses in this shuttle segment will optimize vehicles from
Cititrans as many as 130 units of the fleet.
Seed funding in several startups.
Blue Bird launches e-taxi, a taxi service using a fleet of electric cars.
Together with Telkomsel, it applies the Internet of Things (IoT) technology to 10 taxis. By using IoT, the Blue Bird
ecosystem from the center to the fleet will be connected.
•
•
•
2020
•
•
Armed with tens of thousands of experienced fleets and drivers, Blue Bird presents the Chat-Order-Delivery alias
COD feature.
BirdKirim: logistics delivery service program as a continuation of the Blue Bird COD (Chat-Order-Delivery) program
that was previously launched. The BirdKirim ordering service can be accessed via the My Blue Bird app
CASE STUDY – GARUDA & PANORAMA
This chart will be used as a framework
for calculating the digital transformation
process of the two companies. The
value-at-stake analysis aims to assess
the impact of digital transformation
initiatives on the industry, customers,
society, and the environment.
CASE STUDY – GARUDA & PANORAMA
 Innovation

Panorama digital transformation does not only focus on the front-end, but also from the back-end side. The business model uses a
B2B approach. Agents who have worked with Panorama can directly access the inventory. They can see the availability of hotels and
existing tour packages. Because of this business model Panorama also pays attention to the transformation at the back end.

Garuda built the foundation for a continuous innovation system: Blue Ocean Training for Employees; Development Blue Ocean’s
innovation ideas; Implement the best-selected innovation ideas; Garuda Blue Ocean Innovation Center “GENESIS”; Blue Ocean
Accelerator.
 Product

Panorama has a specialized company consisting of programmers, Coders Colony. The company is the focal point for developing
further ideas. Panorama has also begun to empower their data. One of them is used to offer service/package tours based on the
customerpurchase track record.

GIA Mobile or an application that has a voice command feature to order tickets. Kirim Aja (commercial as of May 2020) Applicationbased freight service that covers a number of flight destinations served by the Garuda Indonesia fleet, CItilink Indonesia
(Jabodetabek and other intercity supported by Aerojasa Cargo). Garuda implements Internet of Things (IoT) on gate 12 SoekarnoHatta Airport with a face recognition feature. With this feature, the public does not need to show tickets to pass the gate.
CASE STUDY – GARUDA & PANORAMA
 Value Creation

In the shareholder return section, Panorama utilizes an unused White Horse fleet on weekends as a new source of revenue through
the open trip package as AB Sadewa, this package called explorer. This open trip uses White Horse vehicle units. When there is no
tour, the bus will accommodate open trips on weekends. The Panorama business process in the travel sector is not just a ticket or
reservation provider. They use a hospitality approach by relying on personal roles such as tour guides. Therefore, the process of
shifting to digital is not easy.

Based on the value creation indicator, Garuda is showing progress towards digital transformation. In the shareholder returns
section, Garuda has additional income from the passenger. In the cost sector, Garuda Indonesia focuses on improving employee
capability and capacity. Cross-division turnover is carried out, which aims to provide an overall understanding of the Garuda
business process. Garuda has also adopted office collaboration technology, cloud computing, and artificial intelligence using work
support application systems through Host to Host/API technology. As a member of the SkyTeam alliance, Garuda Indonesia has an ecommerce-based digital transactional service for service users, consisting of Garuda Online Sales (GOS), Online Sales Partnership
(OSP) with online travel agencies, Corporate Online System (COS) based (B2B), to the web and mobile apps for reservation &
ticketing services. Garuda uses IoT at gate 12 using face recognition. Passengers merely show a face to open the gate. In the societal
impact section, Garuda is currently developing a shuttle baggage service and products, Tauberes. A subsidiary that focuses on digital
businesses in logistics: including package delivery and aircraft cargo services. From the current sub-environment, Garuda is also
developing a GIA Box to reduce the use of Styrofoam. Considering the demand for cargo for marine products is still high and often
uses Styrofoam.
CASE STUDY – TRANSPORTATION & TOURISM: FRAMEWORK TRANSFORMATION JOURNEY
Indicator
Pre-Core
Objective
Awareness of innovation
Bluebird - Panorama
Core
Optimizing existing products / services
for existing customer
Garuda
Adjacent
Transform
Expanding from existing business
into “new to the company” business.
(new business, optimize, early
stages)
Developing breakthrough & inventing
things for markets that don’t exist yet
(new business, pre-market, potential to
disrupt core business)
(Garuda)
(Bluebird-Panorama)
Market
Both of existing market
& existing customer
Both of existing market & existing
customer
(Bluebird-Panorama)
Enter adjacent market & serve
adjacent customer
New markets (products / services); New
customer needs
(Garuda)
Output
Awareness / Efficiency
Annual planning & forecasting and
detailed plan for growth
Business building strategies;
Investment budget; Detailed
business plan for ventures
(Garuda)
Decisions to explore, initiate project plan
& milestones
Event & sharing resources
Accelerator, incubator
Venture client; CV Building; M&A; Venture
capital
(Bluebird-Panorama)
(Garuda)
Short-term: fix features / process level
(12 month); Mid-term: Innovate
product level (36 month); Moonshot:
disrupt business middle level (>36
months)
(Bluebird-Panorama)
Short-term: improve (enrich
customer); Mid-term: penetrate
(increase share of wallet); Moonshot:
build (substantial contribution)
Internal employee / customer
(Bluebird-Panorama)
Vendor / Independent innovator
(Bluebird-Garuda)
(Bluebird-Panorama)
Players /
Value
Time / Period
Sources
Board member or
managerial
Tentative
Internal employee /
customer or vendor
Short-term (new business / growth stages)
Mid-term (explore / early stages)
Transform (business model level)
(Garuda)
Innovation Lab
TECHNOLOGY HAS EMPOWERED CONSUMERS TO BECOME MORE MOBILE, SOCIAL, AND
CONNECTED THAN EVER. THIS HAS CHANGED HOW THEY INTERACT WITH EACH OTHER AND
WITH PRODUCTS, SERVICES, AND BUSINESSES. DIGITAL TRANSFORMATION OPENS THE DOOR
TO NEW OPPORTUNITIES FOR INNOVATION IN HOW TO DESIGN, INTEGRATE, AND MANAGE
CUSTOMER (AND EMPLOYEE) EXPERIENCES.
END OF SLIDE
 Sumber: Corporate Digital Transformation Report 2020 (dailysocial, dsresearch, KEMKOMINFO)