Corporate Innovation Management

Building Company Competitive Advantages in Digital Era

By: Dinoor Susatijo (dinoor@telkom.co.id / +62-811-204948)

 Telkom Open Innovation Management
 Indigo Creative Nation
1 WHY:
Corporate
Innovation is a
must
Tren revenue telekomunikasi yang menurun
Era DISRUPTION dan Perubahan yang Terjadi

Inovasi disruptif (disruptive innovation) adalah

inovasi yang membantu menciptakan pasar
baru, mengganggu atau merusak pasar yang
sudah ada, dan pada akhirnya menggantikan
teknologi terdahulu tersebut. (Wikipedia)
 Memberikan kemudahan yang lebih tinggi
dan pengalaman baru kepada customer
 Menawarkan model bisnis baru yang lebih
menguntungkan customer
 Memanfaatkan keunggulan teknologi secara
maksimal

Source : Forrester’s latest report 2015 and Internal update, 2016

Mengapa perusahaan perlu berinovasi?

4 alasan mengapa inovasi dibutuhkan:

 First Driver: decreasing product life cycles, driven by
increased competition, customer expectation,
environmental shifts.
 Second Driver: increasing global trade, opening the
door to more competitors from every region.
 Third Driver: The rapid distribution of information and
education.
 Fourth Driver: Reduced cost of entry into markets and
industries
Jeffrey Phillips
 The Game has changed

 The word “innovation” was used to describe things
that are new to the marketplace. Over many
decades, we have learned to use the word “new”
rather liberally.
 Each of those things would qualify as innovation
for many a successful company. “New and
improved!”
 Then came the digital revolution. Everything—
including the definition of the word “innovation”—
changed.
 Technology connected us in ways that were faster
and more meaningful than ever before. Innovation
wasn’t what it used to be. The game had changed.
Big companies were rapidly being left behind.
Source : Michael Docherty in Collective Disruption, 2015

Even big companies can be disrupted if they don’t innovate for their survival and future growth. However, they are
usually left behind. It is a critical element in fuelling business growth and maintaining market share
 Innovation Horizons
Menggambarkan tingkat ketidakpastian (uncertainty
10% level) dalam pengembangan inovasi

Disruptive Innovation
• Problem and Domain are not well defined
• Lots of Experimentation
20% • Change the Market
• Fail and Learn

70%

Sustaining Scaling Scoping

Source: Terwiesh & Ulrich and internal updated

 Innovation Ecosystem Development Approach
Innovation Ecosystem Development approach : People, Planet and Stake Holder Participation (3 P)

1
People
Pengembangan Digitalpreneur GROUP OF Nurturing Talent
REGISTRATION
(TELKOM GROUP)
PRE PITCHING
(UPGRADE)
PITCHING DEVELOPMENT
(3 MONTHS)
INNOVATOR Creativity Scouting Incubation Acceleratíon Commerce
melalui Amoeba & Program Indigo (DDS)

Internal Startup External Startup

Innovation 2
Ecosystem
Development
Planet
Penyediaan fasilitas kreatif di
beberapa kota di Indonesia

3
Participation Academic + Business Community Government
Research institute
Kolaborasi Quad Helix untuk
pengembangan Digitalpreneur

Source: Internal Analysis, 2017 8

 Telkom Digital Innovation Model
Business Units need to be actively involved and support all innovation programs as a part of cross functional team based
organization

Source: ATK & Internal Analysis, 2017 9

2
BUILDING
Innovation
Ecosystem and
Open Innovation
Paradigm
3 Karakteristik Innovation Leader

• Accountability: terdapat seseorang atau

sebuah tim yang bertanggung jawab terhadap
kegiatan inovasi dan hasil-hasilnya
• Strategy: terdapatnya link atau keterkaitan
antara kegiatan inovasi dengan strategi
perusahaan (growth, differentiation, disruption)
• Building an Innovation Ecosystem:
terdapatnya kesatuan unsur dan kegiatan yang
mendukung inovasi, karena inovasi bukanlah
kegiatan yang berdiri sendiri dan tidak
terhubung satu dengan lainnya

• Culture dalam inovasi :
• Agresif & perubahan (vs
defesif, reaktif)
• Eksperimental, tidak takut
gagal berinovasi
• Best practices
• Toleran terhadap
ketidakpastian, resiko
• Terbuka terhadap ide baru
• Berpikir di luar cakupan
• The absence of a “not
invented here” mentality
• Environment mencakup:
• Lingkungan kerja, kondusif
• Potential Partner
• Physical working space
Sumber: Executive Innovation Work
Mat, OVO & Agility Innovation
Innovation Ecosystem
• Kesamaan bahasa tentang terminologi
dan deifnisi terkait inovasi
Strategic Alignment
Culture &
Capability
Language
Environ-
ment
Motivation & Measures
• Motivation mencakup recognition, reward,
kompensasi
• Measures merupakan metrik untuk
mengukur kegiatan dan hasil inovasi
• Bagaimana tujuan strategis didefinisikan,
dikomunikasikan?
• Bagaimana inovasi dapat mendukung
tercapainya tujuan strategis?
Functions &
• Function/ fungsi:
Process
• Definisi tim dan tugas pengelola inovasi
• Struktur tim pengelola inovasi
• Proses:
• Alur kerja yang harus diikuti oleh
inovator dalam
Governance
• Bagaimana inovasi direncanakan,
dilaksanakan, diarahkan, dan dibiayai?
• Durasi pengembangan inovasi yang dapat
diterima dan pengelolaan resiko
• Bagaimana pengembangan inovasi diukur?
• Best practice pengelolaan inovasi
 Open Innovation Model – The Innovation Funnel

Source: TerraForum, Philips Research

Contrasting Principles of Closed and Open Innovation

Source: TerraForum
Four approaches to Open Innovation
Corporate – Startup Collaboration
 Opportunities and Challenges of Digital Business
Race to Rising Young Rising Middle Class
“Unicorns” Demographics
OPPORTUNIT
IES

High profile mega deals such as

Go-Jek, Tokopedia, and Traveloka
has been marked as the beginning Per 2016, 52% of the country’s Indonesia’s income per capita is
of a new “digital era” for the population is below the age of 30 growing rapidly at 8.2% annually
nation’s economy. until 2022

Payments - Low Banking Behavior - Unwillingness to Difficulty in Doing

Penetration pay for content Business
CHALLENGE
S

Data from World Bank stated Based on a recent survey, From World Bank’s data,
that around 70% of 73% of Indonesian people Indonesia is ranked at 91 in the
Indonesia’s adult population aren’t willing to pay for ease of doing business ranking -
is unbanked. digital contents on par with Uruguay & Kenya
Source: KKR, 2017 21
 Digital Business Key Growth Factors
Common Assumptions Recent Development
1
● Companies started to nurture their own
● Lack of (engineering) talent/senior talent through scholarship, hackathon
developer challenge (internal capacity building)
Human ● Lack of experienced local founders ● Matured local founders and fresh
(reliance on expat talents) waves of returning talents from
Resour overseas
ces
2
● Payment mechanism - lack of
● Emerging market specific solutions
scalable e-payment alternatives
provide workaround to infrastructure
● Internet speeds (geographical
problems (sharing economy based
constraints)
Infrastru ● Logistics infrastructure
logistics, alternative payments, low
bandwidth content)
cture
3 ● Low consumer trust - consumers are ● Rapid adoption of social & messaging
wary of making transactions online platforms facilitates trust-building
(orders from ID are 12x more likely ● Remains a challenge, but more
Market to be fraudulent as global average) validation of SaaS monetisation on SME
● Indonesian SMEs aren’t ready to segment due to mobile-centric solutions.
Readin use/pay for digital products (hard to
ess
Source: KKR, 2017
monetize)
22
 Implementasi Konsep LEAN STARTUP

Minimalisir resiko Validasi ide

inovasi dengan cepat

Menggagalkan
Fail fast, succeed faster
asumsi yang salah

Mengukur progress startup Mulai dari asumsi yg

dari pembelajaran yang paling beresiko
dilakukannya
Lean Startup In Product Development : How to?

Minimize Risk of Build

Innovation by
Idea MVP
Validated Learning.
Focus Speed
vs. Premature vs. Running out
Organization Resources

Faster time & Learn Measure

Less Resource Validated Learning Empiric

Data
vs. Chasing the Tail

Focus on Value Creation Activities and eliminates wastes

Lean Startup

It’s starting with (Specific) Consumer’s Problem first….

NOT Ideas.
(Always) •Consumer
•TEST assumptions about •Problem
•MEASURE
•LEARN •Solution
Minimum Viable Product (MVP)

Version of a new product which allows a

team to collect the maximum amount of
validated learning about customers
with the least effort and ammount of
development time

STORY VISUAL PROTOTYPE

5 Key Macro Metrics
3
A Brief of
INDIGO Creative
Nation
Indigo Creative Nation Program

#DIGITALIZINGINDONESIA

Developing potential Growing Indonesia

digital talents Startups to the Next Level
through Nurturing through Incubation &
Creativity Program Acceleration Program
@DILo @Digital Valley
Telkom Indonesia’s End-to-End Initiatives for Startup Engagement

Invest in SE Asia. Invest in Ecosystem

Building
 Digital Startup Ecosystem Development Approach
Supporting Developing 1000 quality
Optimizing synergy between Startups, Government, Corporation, and
Nasional startups by 2020
Investor to strengthen Indonesian Digital Startup Ecosystem Program

2 Planet
1 People Number of Startups incubated
Providing 16
Building strong creative camps and
Digitalpreneur 250 221
5 creative centers
thru Incubation 200 171 and its supporting
Program and facilities for pre-
nurturing 150 121
startup, and
thousands of 81 startup incubation
100
talents 58
program
50 32
15
0
2013 2014 2015 2016 2017 2018 2019

3
Participation
Startup Ecosystem
Academic + Business Community Government Media
Research institute
development thru
Penta Helix
Collaboration
DILo menjadi bagian dari Perjalanan Indigo Creative Nation

 DILo dikembangkan untuk membina digital talent yang berada di masyarakat

 Output DILo berupa startup baru untuk dikembangkan dalam inkubasi Indigo dan professional developer
 Latar belakang: kualitas startup yang terjaring Indigo sangat sedikit dan perlu ditingkatkan kualitasnya
 Indigo Creative Nation Framework
17.077 4.266 98
18 15

Under
construction

Pre-Startup Stage Incubation Stage Acceleration Stage Next Investment

• Digital talent • Validate startup idea •Product is ready to Stage
development • Develop product & biz model, market • Prepare startup for
• Idea exploration & and validate to early adopter •Marketing & fund raising to get
founder match making • Start to integrate into CFU channeling product to a bigger investment
• Startup forming environment acquire market growth
Update 5 December 2017
BENEFIT for Startup thru Indigo Program
Digital Valley
Bandung Digital Valley Jakarta Digital Valley

Jogja Digital Valley

Indigo.id
Lokasi 16 DILo dan 3 Digital Valley

Banda Aceh IT-DEL Toba Medan Pakanbaru Tangerang Depok Bogor Bekasi

Bandung Yogyakarta Solo Surabaya Malang Denpasar Balikpapan Makassar

Mitra Kerjasama
Lokasi DILo
Lokasi DILo Denpasar Lokasi DILo Bandung Lokasi DILo Banda Aceh Lokasi DILo Kemenpora
(on progress)
Beberapa Lokasi DILo

DILO MEDAN DILO BANDUNG DILO SURABAYA DILO DENPASAR

DILO ACEH DILO BALIKPAPAN DILO BOGOR DILO MALANG

 Promoting Indigo Startups
SV Immersion Program Demo Day
Startup Exhibition

Bi-annual events to introduce qualified startups to

investors, corporations, and government agencies
to encourage further startup growth
Give opportunities for startup to
Meet Telkom Market
take part in some strategic
exhibitions and other events
Best Startups form Indigo had an
opportunity to join Silicon Valley
Immersion Program to meet with
Luminary and successfull Entrepreneur in Give business opportunities for startups to
Silicon Valley partner’s office for a week integrate their products into Telkom Group
and “pitch” meeting to Silicon Valley portfolios and supporting systems
investors
Thank You