TThehe SSeeccrreett ooff GGrreeaatt SaSaleless

DIGITAL BUSINESS TREND AND IMPACT

FOR INDONESIA
Dr. Ir. Cahyana Ahmadjayadi
Founder & Chairman Citiasia, Inc.

2 Agustus 2017

2017 Citiasia Institute

 Profil Fasilitator

CAHYANA AHMADJAYADI
Expert Facilitator Founder and Chairman Citiasia Inc.

Cahyana Ahmadjayadi telah berpengalaman sebagai praktisi selama lebih dari 20 tahun,
berbagai posisi stratejik di berbagai instansi pemerintahan pernah Ia emban

Areas of Expertise
Strategic Management
Strategic Leadership
IT and Telecommunication
Smartcity and Infrastructure

Working Experiences
Independent Commissioner PT Telkom Indonesia, Tbk
Founder and Chairman Citiasia, Inc
Comissioner PT Bank Mandiri (persero)
Senior Expert to Minister of ICT RI
Chairman of Human Capital, Research & Development, Ministry of ICT RI
Director General for ICT Application, Ministry of ICT RI
Deputy Minister for IT Infrastructure, Ministry of ICT RI
Director General for Regional Development, Ministry of Home Affairs
Deputy Minister for Strategic Industry, Ministry of State Owned Enterprises
President Director PT POS Indonesia
Marketing Division PT Telkom Indonesia, Tbk

2017 Citiasia Institute 2

 2017 Citiasia Institute 3
 Technology Mega Trend

2017 Citiasia Institute 4

 History of industrial revolution
Degree of Innovation

Industry 4.0
Internet of Things,
Industry 3.0 Service and People
Industry 2.0 World economy
Industry 1.0 Mass production
Mechanical production

Cyberisation
Cyber physical system
Automation and interconnections
Electrification computer and automation
electrical power
Mechanization and vehicle
hydro- and mobility concrete abstract
steam power

End of the 18th century End of the 19th century Beginning of the 70's Toda Time
y

29.12.2016 Dr.-Ing. Hendro Wicaksono

2017 Citiasia Institute 5
 Enabling technologies over industrial
revolutions Digital Transformation

IT
Mechanics
IT
CPS
Mechanics
Mechan
ics Mechanics
Electronics
Mechanics
Mechanics Industry 4.0
Electronics

Mechanics Industry 3.0

Mechanics Electrics

Industry 2.0

Industry 1.0
Source: ABB

29.12.2016 Dr.-Ing. Hendro Wicaksono

2017 Citiasia Institute 6
 Coding adalah senjata-potongan lego
untuk bikin karya; fokus ke karya kekayaan
intelektual, karena itu yang bernilai !
(Grahadea-CEO Kuassa.com )

It's always Beta

2017 Citiasia Institute 7

Double-edged Sword of Disruptive
Force

TECHNOLOGY BRINGS DISRUPTION

The Danger

Distorted Human
Values Negative Impact
New Digital
Technologies
Stress and Disease
Hoax
Cloud
Extremism
Social Bad Business
Degraded Moral Horizontal Conflict
Mobile Practice Spamming
Big Data
Online Crime
Internet of Everything
Bankruptcy
Etc.
Life Style and
Behavioural
Disorder
Source: OpenMatters, LLC and Citiasia Analysis.

2017 Citiasia Institute 8

Double-edged Sword of Disruptive
Force

TECHNOLOGY BRINGS DISRUPTION

The Opportunities

New Source of
Value
New Digital
Technologies Improved Economics

Cloud Lower marginal cost

Social New Leadership New Business Higher loyalty
Mobile Style Models Higher profit margin
Big Data Higher revenue growth
Internet of Everything Higher enterprise value

New Types of
Customers &
Employees
Source: OpenMatters, LLC.

2017 Citiasia Institute 9

 DIGITALISATION COMES EARLIER
THAN INITALLY PREDICTED

2017 Citiasia Institute 10

 BECAUSE OF DIGITAL STEROIDS LIKE THESE:

BROADBAND ACCESS INTERNET OPEN SOURCE

APPS SOCIAL MEDIA SMART GADGET

2017 Citiasia Institute 11

OVERVIEW :
INDONESIAS DIGITAL
LANDSCAPE
TOTAL INTERNET ACTIVE SOCIAL
POPULATION USERS MEDIA USERS

262 million 132.7 million 106 million

URBANISATION 55% PENETRATION PENETRATION 40%
51%

TOTAL ACTIVE MOBILE NUMBER OF INTERNET

INTERNET USERS USERS

123.3 million 47% of total population

12
OVERVIEW :
INDONESIAS DIGITAL
LANDSCAPE
MOST ACTIVE SOCIAL MEDIA SHARE OF WEB TRAFFIC BY
PLATFORMS DEVICE
YOUTUBE
49% LAPTOP & MOBILE PHONE
FACEBOOK DESKTOP
48%
INSTAGRAM
39%
TWITTER
38%
WHATSAPP
38% 28% 69%
YEAR-ON-YEAR CHANGE YEAR-ON-YEAR CHANGE
GOOGLE+ +3% -1%
36%
TABLET DEVICES
FB
MESSENGER 31%
LINE
30%
LINKEDI
N 28%
BBM
26% 2%
YEAR-ON-YEAR CHANGE
PINTEREST -7%
22%
SOCIAL NETWORK
WE CHAT
21% MESSENGER/ Source: Global Web Index, GSMA Intelligence, Statista,
CHAT Akamai, StatCounter, Ericsson
APP/VOIP

13
 CHALLENGE: DIGITAL DISRUPTION

Digitalisation create disruptiveness.

Disruption has become a new normal.

2017 Citiasia Institute 14

 Digital for the
Masses

2017 Citiasia Institute 15

 CHALLENGE: DIGITAL DISRUPTION

Even si Bibi di rumah

2017 Citiasia Institute 16

 Indonesians get used to the new Technology
Disruption has become a new normal

2017 Citiasia Institute 17

 The Digital Vortex
Digital Disruption Resembles a Vortex: A
Relentless, Chaotic Force Pulling Industries
Toward a Digital Center
A vortex pulls everything toward the center

Chaotic: objects drawn to the center with

exponentially increasing velocity

Objects may break apart and recombine

The center is the new digital normal,

and its constant change can be a threat or an
opportunity

2015 Global Center for Digital Business Transformation. All rights reserved.

2017 Citiasia Institute 18

 Challenges
In the Digital Vortex, Technology, Media, and Retail
Industries Are Most Vulnerable to Disruption

#7
Hospitality &
Travel #8
CPG &
Manufacturing

#6
Education
#2
Media &
#1 Entertainment
Technology
Products & Services` #9
#3 Healthcare
Retail
#5
Telecommunications
#4
Financial Services

#10
Utilities
#12
Pharmaceuticals

#11
Oil & Gas 2015 Global Center for Digital Business Transformation. All rights reserved.

Source: Global Center for Digital Business Transformation, 2015

2017 Citiasia Institute 19

 They Who Rides the Digital Age

The DiSRUPTORS & INNOVATORS

2017 Citiasia Institute 20

Creativity
Dicoding Academy
Obedience

Diligence
Initiative
Expertise
 60K Developers Onboard from 300 Cities
5,000 products
To spark coders in created
creating successful global 600 through
Startups
products Dicoding
Challenge
Pro
Developers
To build the IT industry 25,000 developers
with the best talent in the studied with
market Dicoding
Rookie Academy
Developers

2017 Citiasia Institute 22

Apps Annie Retrospective I Top Apps and Companies Apps Annie Retrospective I Top Apps and Companies

Worldwide by Downloads Worldwide by Revenue

Top Apps of 2016: Worldwide Top Games of 2016: Worldwide Top Apps of 2016: Worldwide Top Games of 2016: Worldwide
Combined iOs and Google Play Combined iOs and Google Play Combined iOs and Google Play Combined iOs and Google Play
Downloads Downloads Revenue Revenue

Rank App Company Rank App Company Rank App Company Rank App Company

1 Facebook Facebook 1 Pkemoon Go Niantic 1 Spotify Spotify 1 Monster Strike mixi

WhatsApp 2 LINE LINE 2 Clash of Clans Supercell

2 Facebook 2 Piano Tiles 2 Cheet Mobile
Messenger

3 Facebook Facebook 3 Subway Kiloo 3 Netflix Netflix 3 Pokemon GO Niantic

Messenger Surfers

Lowtech InterActive Game of War -

4 Instagram Facebook 4 Slither.io 4 Tinder 4 MZ
Studios Corp (IAC) Fire Age

5 Snapchat Snap 5 Clash Royale Supercell 5 HBO NOW Time Warner 5 Clash Royale Supercell

Pandora
My Talking 6 Radio Pandora 6 Mobile Strike MZ
6 US Browser UCWeb 6 Tom Outfit7
GungHo
Puzzle &
7 imo imo.im 7 Color Switch Fortafy Games 7 iQIYI Baidu 7 Dragons Online
Entertainment
Fantasy
8 Clean Cheetah Mobile 8 Candy Crush Activision 8 LINE Manga LINE 8 Westward NetEase
Master Saga Blizzard Journey

9 SHAREit SHAREit 9 Clas of Clans Supercell 9 Sing! Smule 9 Candy Crush Activision
Karaoke Saga Blizzard

10 YouTube Google 10 Traffic Rider Soner Kara 10 Hulu Hulu 10 Fate/Grand Sony
Order

2017 Citiasia Institute 23

2016
2017Citiasia
CitiasiaInstitute
Institute 24
2016
2017Citiasia
CitiasiaInstitute
Institute 25
20 Million Downloads Globally
 5 Pillars for Digital Transformation

Establish a Digital Mindset - Digital Culture: DQ inside

Define A Digital Destiny

Invest in Digital Technology Capabilities

Adapt Skills and Talent Management - Digi Cap and

Digi L. Millenials = industrial internet Developers

Evolve the Organization

2016 Citiasia Institute 27

 2016 Citiasia Institute 28
 PLATFORM BUSINESS
MODEL

2016 Citiasia Institute 29

 Alert Toward Change
Digital Business Transformed from Pipeline to Platform

2016 Citiasia Institute 30

 2016 Citiasia Institute 31
 o f
l ow
F e s
a l u
V
2016 Citiasia Institute 32
 Business Model Shift
Pipeline
Business Model

Producers Distributors Marketers Consumers

Edited from Accenture France Tech-Vision

Platform
Business Model

SOURCE: MARSHALL W. VAN ALSTYNE, GEOFFREY G. PARKER, AND SNGEET PAUL CHOUDARY
FROM PIPELINES, PLATFORMS, AND THE NEW RULES OF STRATEGY, APRIL 2016 @HBR.ORG

2016 Citiasia Institute 33

 Alert Toward Change
The move from pipeline to platform
From resource
control to
resource
orchestration.
The assets are hard to copy the
community and the resources its
members own and contribute, be
they rooms or cars or ideas and
information.
The network of producers and
consumers is the chief asset.
2016 Citiasia Institute
From internal
optimization to
external
interaction.
Platforms create value by facilita- Platforms value.
ting interactions between external
producers and consumers.
The emphasis shifts from dictating
processes to persuading partici-
pants, and ecosystem governance
becomes an essential skill.
From a focus
on customer
value to a
focus on
ecosystem
seek to maximize the
total value of an expanding ecosys-
tem in a circular, repetition,
feedback-driven process.
Sometimes, it requires subsidizing
one type of consumer in order to
attract another type.
34
 Build Collaboration

Nike and Apple

2016 Citiasia Institute 35

 ID Dignity Digital Destiny:
Identity, Nationality, Sovereignity

2016 Citiasia Institute 36

 TThehe SSeeccrreett ooff GGrreeaatt SaSaleless

Thank You
2017 Citiasia Institute