how to deal with disruptor (from telco prespectives)

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HOW TO DEAL WITH

DISRUPTORS ?Think Ecosystems, Act Coherence

Saiful Hidayat

Head of Innovation & Design Center

PT. Telekomunikasi Indonesia, Tbk

Saiful Hidayat is Head of Innovation & Design Center of PT. Telekomunikasi Indonesia, Tbk since Feb

2015.

He holds Bachelor Degree from Brawijaya University (1992) and Master Degree on Multimedia from

Bandung Institute of Technology (2001)

Holding more than 20 years working experience in TELKOM, a number of strategic positions

have been led by him before, which are:

Vice President Innovation Strategy and Synergy TELKOM

Project Director of Indonesia Incorporated Project TELKOM

Project Director of eHealth Business Project TELKOM

Business Development Director ADMEDIKA (subsidiary)

Assistant Vice President IT Service Strategy TELKOM

General Manager Operations FINNET (subsidiary)

Things that May Change Us Things that May Save Us Things that We Believe

TECHNOLOGY: IT ENABLES EVERYTHING AND WILL CHANGE THE WORLD

The world is very dynamic, however.

How the world is changing is

different from time to time. The

situation will function differently 10

to 15 years from now

Source: Gartner's 2014 Hype Cycle for Emerging Technologies

Maps the Journey to Digital Business

SO WHAT ARE TECHNOLOGY MATTERS ALL ABOUT?

We have to understand technology in larger perspective.

Technology is not only digital communications technology, it is the tools

and ideas that have brought us forward the last hundred thousand years.

The nature of technology is that it enables people to do new stuff.

It changes our behavior and habits and in turn, value chain

The role of any company is to offer a technology in order to

accommodate a certain behavior so that customers are able to reach

their outcome

It is stuff that may change our

behavior, habits and in turn, value

chain

Source : Helge Tenn, Technology Will Disrupt, Slideshare,net

WHATS DIFFERENT NOW?

Barrier entry has melted away makes Dico disrupt almost all existing value chain

Information and media

is online

Cloud computing puts a

supercomputer in your

pocket

Mobile devices mean

anyone can reach anyone,

anywhere, anytime Its now transforming to digital,

making Digital Players disrupting

almost all existing value chain

Source : Compiled from How Google works and Orange SV

BATTLE FOR CUSTOMER: TELCO IS ATTACKED FROM ANY DIRECTIONS!!

It is not only OTT players who

attack Telco, but also other

industries: movie industry, device

industry, consumer goods

industry, etc

WHATS THE SITUATION NOW: TELECOM INDUSTRY IS IN TRANSITION

Telecoms is today at a crossroad due to

maturity of traditional access business

and the advent of the digital revolution

that requires more advanced

infrastructure and, at the same time, has

incentivized new competitors

GLOBAL TRENDS VALUE SHIFT TO DIGITAL

The market is shifting towards

digital and digital will grow 8X

faster than the traditional telco

market

Source : Ovum, eMarketer, Bloomberg, Gartner, imsresearch,

gsma, Delta Partner., 2015

UNDERSTANDING THE DISRUPTION:CONUNDRUM FOR NETWORKS: COSTS AT LOW SCALE

WhatsApp messaging cost 1/10K of Telcos sms

2014: SERVICES

2019: NETWORKS ?

DICO attacks :

Global DICO cost scale points are

way beyond reach of a single

country-network

Source : Giles Corbett @GiCorb, Head of Libon Orange

UNDERSTANDING THE DISRUPTORS

Dico competes in new ways-a low

cost platform approach

and Free + Ecosystem Business

Model

Source: STL Partners Telco 2.0

IS TELCO GOING TO LOSE?

However, the winner will be those

that can deliver superb customer

experience with the right value

and pricing to the end of customers.

Source:

CHALLENGES AND OPPORTUNITY TO ADDRESS

Telco needs to address both the

dumb pipe challenges as well as

grab the opportunity in the growing

digital space through empowering

unique capabilities

Source : Delta Partner Group, 2015

UNDERSTANDING CURRENT TELCO POSITION IN DIGITAL MASTER QUADRANT

We are trying to be digital master, are

we ready?

Source: Leading Digital, 2014

LEARNING FROM DIGITAL MASTERS (1/2)

Some considered great companies

use their digital masteries to keep

winning the competition

Source: Leading Digital, 2014, companys website, web search

LEARNING FROM DIGITAL MASTERS (2/2)

even the best in their category is

continuing to extend its digital

mastery to gain growth


COHERENCE: THE DIGITAL MASTERS WAY TO WIN

Great companies truly understand

their capabilities and their core

and theyre coherent

ESSENTIAL ADVANTAGE: THINK

ECOSYSTEM, ACT COHERENCE


THE CHALLENGES - #1

Services is more complex and many

options of Business Model.

Telco as Telco 2.0 service provider has to

focus in product, platform and

infrastructure with two sided business

model

Source : STL Partner Telco 2.0

THE CHALLENGES - #2

Telco has to develop new skills and

relationships in product innovation

platform and business infrastructure

to deliver superb customer

experience


KEY SUCCESS FACTORS - #1

always started with the users experience

COHERENCE:

Start from what we have

Define way to play

Focus on unique capabilities

Ensure product fit

Be aligned

The Equilibrium -

Make it balanced

all the way you go


What is Desirable

to user/customer ?

What is

Possible With

Technology ?

What is

Viable in

Marketplace ?

KEY SUCCESS FACTORS - #2

To be the winner in the

competition of the digital

world, we see that mindset

transformation is the key

success factor to drive

changes

TELKOM TO GO FORWARD DIGITAL BIZ: PUT THE DICO-NESS TO TELCO

We are strengthening Device, Network

as well as Application for both physical

and digital ecosystems to going forward

Digital Biz

TELKOM ADOPTING & IMPLEMENTING COHERENCE STRATEGY

The top 25 % of

companies measured by

financial performance ,

Concentrate more on

COHERENCE list of

Innovation rather than

be Good at everything

Aligning the innovation portfolio with

customers/users needs & wants

Developing & retaining people with the right technical knowledge

Ensuring that Innovation leaders & business leaders

are aligned

Understanding new product & service-related

technologies & trends

Pursuing Lean product development

Innovation, Technology &

Business must be aligned

Be focus, be aligned

We believe COHERENCE

STRATEGY will make us

succeed and in which,

alignment and equilibrium is

the heart to this success.

Going COHERENCE is now on

the way

TELKOM FOCUSING ON COHERENCE INNOVATION

Coherence Innovation in Digital Biz is a

must in order to stay ahead the

Disruptors and exist within the TIMES

industry.

We implement 5 pillars of Coherence

Innovation: Invent, Invest, Partner,

Venture and Acquisition

TELKOM NURTURING DIGITAL INNOVATION ECOSYSTEM 3P

Our strategy on growing up digital

business is by nurturing on 3P: People,

Planet and Participation

TELKOM MOVING ON FROM INDUSTRY TO ARENA

Now, we are going to move on from

Industry mindset to Arena mindset.

By going to Arena, not only a specific

ecosystem will be involved, but also

group of ecosystems that form a

biosphere, so that together we can grow

digital business

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