Day 1 GNW October 2024 MM FEB UI

Monday, 14 October 2024

GNAM Week Universitas Indonesia 1st Day

Luthfi & Annisa

For the 18th time, MM FEB UI held a 5-day Global Network Week (GNW) from October 14th to 18th, 2024, under the theme “Digital Transformation for Sustainability: Crafting a Digital Strategy to Create a Sustainable Business.” This event took place in two different cities: Jakarta and Yogyakarta.

During this 5-day program, students discussed digital transformation and the evolving understanding of socially responsible, sustainable, and impact-driven businesses with key academics, business leaders, and policymakers. The discussions provided insights into the ethical, economic, and technological factors at the heart of a digital strategy for sustainable businesses.

Participants in the Global Network for Advanced Management (GNAM) Week included student representatives from university members of GNAM. A total of 25 international participants came from five business schools in various locations, including Fudan University, Asian Institute of Management (Philippines), IIM Bangalore (India), UNSW (Australia), and Saïd Business School, University of Oxford. Additionally, 70 domestic students registered, representing MM FEB UI, Universitas Gadjah Mada (Jakarta and Yogyakarta), Universitas Diponegoro, Universitas Tarumanagara, Soegijapranata Catholic University, Universitas Atmajaya, Universitas North Sumatra, Telkom University, and many more.

1st Session

Speaker: Mr. Kartika Wirjoatmojo (Vice Minister of State-Owned Enterprises)

Registration for all participants began at 08:00. The event commenced at 08:30 with welcoming speeches from Dr. Arviansyah and Dr. Jonathan Marpaung, who briefly outlined the agenda. They provided information on:

• A general description of the event
• Assignments to be completed before the end of GNW
• Grading criteria for assignment evaluation
• Appreciation for the best group participants

An ice-breaking session was held at 08:45, led by Liaison Officer Ms. Florean and Mr. Luthfi, where prizes were awarded to the three best participants. The formal opening of the event took place at 09:00, led by MC Ms. Elsa, followed by Indonesia’s national anthem. The Vice Dean of FEB UI delivered an opening remark at 09:05 regarding the event’s theme, “Digital Transformation for Sustainability: Crafting a Digital Strategy to Create a Sustainable Business.”

The first session, titled “Digital Transformation for Sustainability: Crafting a Digital Strategy to Create a Sustainable Business,” started at 09:05 and was led by Mr. Kartika Wirjoatmojo, Vice Minister from the Ministry of State-Owned Enterprises (MSOE). He discussed policies and strategies to foster digital transformation in businesses, emphasizing that digital transformation is one of the key drivers of Indonesia’s economic growth. He highlighted that significant investment is required for infrastructure, such as cables, towers, and satellites, especially considering Indonesia’s geography as an archipelago. Although 4G infrastructure has been developed, there are still some blank spots.

Various digital innovations have been implemented across sectors within state-owned enterprises (SOEs). These include success stories in banking, ticketing systems (like WHOOSH, KAI, and Garuda), and utility payments (electricity tokens, Telkom, Indihome). Digital transformation has also impacted logistics and non-cash fuel payments through apps like My Pertamina.

The transformational journey of Bank Mandiri was highlighted, showcasing modernized distribution channels like Livin and Kopra. The Livin app offers a wide array of services, enabling users to purchase or pay for almost anything. One of its features, called SUKHA, allows customers to buy tickets for events such as concerts, WHOOSH, and Garuda flights. Most of Mandiri’s app development was conducted in-house by millennials using agile development processes like DevOps and Scrum, enabling weekly updates.

The system supports core banking and handles peak transactions of up to 60 transactions per second during high-demand periods, such as Lebaran. Mandiri has also invested in building a cybersecurity team to strengthen defenses, though they continue to improve firewalls and back-end security.

The speaker also discussed Indonesia’s electronic-based government system, an integrated digital platform that connects various governmental services. Launched to the public in March, this system allows citizens to handle government-related processes, such as renewing driving licenses, scheduling hospital appointments, and updating family records.

Implementations of AI have been instrumental in increasing productivity across various sectors within SOEs. Jasamarga uses AI to monitor incidents like traffic accidents, enabling quicker responses, including faster ambulance dispatch. AI and IoT have also been employed by Pertamina to optimize production and minimize costs, while PLN uses AI to improve electricity production and reduce outages. Additionally, AI is utilized in customer interactions, such as BRI’s AI chatbot, which even supports the Javanese language for rural areas.

AI is being piloted in various applications, including runway inspections in Jakarta and Surabaya, enhancing drilling efficiency, and optimizing water injection in oil fields. SOEs also play a crucial role in supporting Indonesia’s digital ecosystem by investing in and scaling local digital startups. Initiatives like BRI Ventures, Telkom Ventura, and Merah Putih Fund exemplify how the government supports the creation of digital unicorns, fostering innovation and growth in the tech sector.

GNAM Week Universitas Indonesia 1st Day, 2^nd session

 

Tazkia & Gadis

Moderator: Dr. Riani Rachmawati

Ms. Noni Sri Ayati Purnomo (CEO of Bluebird)

Mr. Irfan Setiaputra(CEO Garuda)

Bluebird

The second session began at 09:44, featuring Ms. Noni Sri Ayati Purnomo, the CEO of Bluebird. She shared that Bluebird faced significant challenges during the COVID-19 pandemic, experiencing a sharp decline in revenue and profits in 2020. However, the company managed to recover quickly by July 2021. Bluebird was founded in 1972 by Ms. Siti Mutiara, who leveraged her home and two cars to start a transportation service in Jakarta. She instilled the core value of giving, emphasizing that “real happiness is in giving” and that to give, one must have—whether material possessions or knowledge. This principle continues to guide Bluebird today. Currently, Bluebird has 26,000 drivers, a fleet of 23,000 vehicles nationwide, 540 exclusive outlets, and 56 pools spread across 18 cities. Maintaining efficiency and productivity is crucial, as is monitoring the quality of service provided.

In 2012, Bluebird launched the first taxi mobile application in Indonesia, but initially did not prioritize its development, assuming that customers preferred to hail taxis from the street rather than use an app. However, in 1998, in response to political and economic challenges, Bluebird began to focus on technology by implementing an ERP system with limited resources to improve operations while upholding its core value of integrity. With the rise of online ride-hailing services in 2015, Bluebird launched the MyBluebird app. The company then faced another major challenge with the onset of the COVID-19 pandemic. To navigate this crisis, Bluebird adopted an ambidextrous leadership approach, balancing crisis management with long-term strategy. They implemented measures such as pandemic anticipation plans, liquidity stress tests, budget reallocations, organizational restructuring, term renegotiations, and a complete business process review.

Their core strategy centered around safety, encapsulated in the acronym ANDAL (Aman, Nyaman, Mudah, dan Personal). Bluebird offers a variety of services, operates through multiple channels, and supports various payment options, allowing customers to pay with cash or any digital payment method.

Bluebird’s focus has always been on its people, particularly during tough times like the financial crisis and the rise of digital disruption in 2015. An example shared by Ms. Purnomo was Bluebird’s decision to offer free taxi rides for 24 hours in March 2015, not as a PR move, but to boost the morale of drivers who had been wrongly blamed for a large demonstration. Bluebird believes that happy employees lead to happy customers, a principle that aligns with their identity as the “bird of happiness.” In addition to ensuring employee well-being, technology played a key role in managing this initiative. Beyond this, Bluebird supports its employees through scholarships for drivers’ children, benefiting over 37,000 students, with a particular focus on female recipients. They also provide entrepreneurship programs for drivers’ wives, helping them contribute to their family’s economy. Making employees happy is vital for successful transformation, as it promotes collaboration and commitment, especially during challenging times.

Garuda Indonesia Airlines

2^nd Session speaker started on 10.07 by Mr. Irfan Setiaputra as CEO of Garuda. The beauty of Garuda is that it is the only company owned by the government and has been decided directly by Soekarno. He provided insights into Garuda’s history, highlighting that it is the only airline directly established by President Soekarno. During the COVID-19 pandemic, Garuda faced severe challenges, as they were unable to fly, revenue dropped drastically, and costs could not be reduced accordingly.

Several key challenges Garuda faced:

• Streamlining IT business processes
• Focusing on cost leadership
• Adapting to shifting passenger behaviors
• Keeping up with technological advancements

To address these challenges, Garuda implemented three primary strategies:

1. Optimizing IT systems to improve operational efficiency
2. Leveraging efficiency to cut costs and enhance service delivery
3. Enhancing digital channels to improve the customer experience

Mr. Setiaputra shared that renegotiating contracts with vendors saved Garuda $4 million annually and a total of $42 million across its business operations. This effort significantly reduced operational costs while maintaining service quality. The biggest challenge, however, was not just restructuring the debt but improving the company overall. The restructuring process included aspects of human resources, business processes, and, most notably, digital transformation. Mr. Irfan noted that this was a deeply personal matter for him, as his background is in IT (he graduated from ITB), rather than in piloting or economics, which are more traditionally associated with airline leadership. His commitment to addressing Garuda’s IT challenges was driven by a strong sense of responsibility, making digital transformation a priority for the company’s future.

Garuda has made considerable strides in improving its customer experience through digital transformation. Starting in 2015, the airline implemented online sales through its FlyGaruda app and website. By 2019, Garuda developed its in-house mobile application using native programming languages for Android and iOS platforms. In 2021, they solidified their best practices and continued optimizing their digital channels. These efforts led to a significant increase in sales through digital channels. Over the years, the contribution from digital sales channels grew from 16.03% to 36.63%, resulting in a 21% rise in ticket sales. Revenue from these channels reached $593 million. While the FlyGaruda app has been downloaded 373,000 times, it has an average rating of 2.7 out of 5 stars, indicating room for improvement. In contrast, Garuda’s website has 3.5 million users and a higher rating of 4.3 stars, reflecting a more positive customer experience. This underscores the importance of a strong digital presence to engage customers and drive direct sales.

The key takeaway is that digital transformation is a journey, not a destination. Organizations must carefully choose the areas of digitalization that will have the most impact. It is crucial to reconsider the role of technology and digitalization within the broader strategic context, emphasizing the ongoing nature of digital transformation, where continuous adaptation and thoughtful selection of digital initiatives are essential for success.

Question:

1. What do you think was missing when Bluebird first launched and didn’t get the Indonesian people’s attention? Is it the technology or maybe the people were not prepared?
2. What is the plan of competitive advantage compared to other airlines?
3. What are The Bluebird Company’s priorities in family business? Because we know there are many interested people.
4. What do you think about the shift of behavior from the customer? What if all the Gen Z and Gen Alpha don’t want to download more applications? What will be your next move?

GNAM Week Universitas Indonesia 1st Day, 3^nd session

 

Flo – Alya

Moderator: Dr. Triza Mudita

Speakers:

Mr. Teguh Wahyono (Director of information technology and digital PT. Pegadaian (Persero) Tbk)

Mr. Ferdian Timur Satyagraha (CFO of Pegadaian)

The third session of the GNAM Week event took place at the headquarters of PT Pegadaian (Persero) at 12:00 noon. This session was moderated by Dr. Triza Mudita, with Mr. Teguh Wahyono, the Director of Information Technology and Digital at PT Pegadaian (Persero) Tbk, and Mr. Ferdian Timur Satyagraha, the CFO of PT Pegadaian (Persero) Tbk, as speakers. In this session, Mr. Wahyono, as the keynote speaker, discussed how Pegadaian is implementing digital transformation to lead in the gold ecosystem and promote financial inclusion.

Established in 1901, Pegadaian has become a cornerstone of financial services and the pawn industry, supporting economic development and fostering financial inclusion across Indonesia. Originally founded in Sukabumi as the first state-owned pawn institution, Pegadaian evolved into a Limited Liability Company (PT) in 2021. With 12 regional offices, 61 area offices, and more than 4,092 outlets, Pegadaian serves 24.9 million customers throughout Indonesia, supported by 13,220 permanent employees and 21,000 outsourced workers.

As competition from private financial institutions, Islamic banking, and fintech platforms intensifies, Pegadaian faces both external and internal challenges. Externally, Pegadaian is confronted with increasing industry competition. Another challenge is that the majority of Pegadaian’s customers are still predominantly housewives, who have not fully embraced technological innovations. Internally, Pegadaian struggles with uneven distribution, making it difficult to reach rural communities and MSMEs. Furthermore, technological advancements present a challenge, as Pegadaian must carefully select the right technologies to implement. To address these challenges, Pegadaian has focused on digital transformation, adopting agile working methods, expanding its customer base, and digitizing its existing products and services.

Mr. Wahyono emphasized, “Pegadaian is transforming itself to stay relevant and serve all customer segments, from ultra-micro businesses to larger financing markets.”

PT Pegadaian (Persero) Tbk strives to enhance customer experience by digitizing its key products, such as Gadai KUR Syariah, Gadai Emas, and Tabungan Emas. These services are now more accessible through digital platforms, making it easier for customers to interact with the company. Pegadaian is also developing new products as part of its core strategy for revenue diversification. New offerings like Tabungan Emas Plus and Pinjaman Modal Kerja Emas are designed to meet the evolving needs of customers, particularly millennials who are more accustomed to digital technology. Additionally, Pegadaian is strengthening collaborations with various digital platforms, such as LinkAja!, Grab Kios, Blibli, Tokopedia, and Shopee. These partnerships expand Pegadaian’s reach through multi-channel platforms, including e-commerce and banking, making financial products more accessible to customers.

Pegadaian’s digital transformation journey began in 2015, with significant investments in technologies such as Big Data Analytics, Agile Transformation, and cloud computing. In 2023, Pegadaian launched new technologies like Graph Analytics, Low Code/No Code platforms, and Database as a Service to strengthen its digital infrastructure. Looking ahead to 2024-2028, Pegadaian aims to become the leader in the gold ecosystem and an accelerator of financial inclusion. Its ambitious targets include achieving total assets of IDR 157 trillion and a pre-tax profit of IDR 11.8 trillion. Additionally, Pegadaian aims to achieve over 90% financial inclusion within the industry and accumulate 35 tons in gold savings.

Pegadaian places great emphasis on developing top talent. The company strives to recruit and retain high-quality talent through comprehensive training and effective recruitment strategies. Pegadaian’s organization is divided into 16 projected units and 18 squads, utilizing both agile and waterfall approaches to ensure flexibility and efficiency in achieving its strategic goals.

Aligned with the theme of GNAM Week October 2024, “Digital Transformation for Sustainability: Crafting a Digital Strategy to Create a Sustainable Business,” Pegadaian has demonstrated a strong commitment to implementing a digital transformation strategy focused on enhancing operational efficiency, developing innovative products, and expanding financial inclusion. Pegadaian has evolved from a traditional financial institution into a pioneer of financial services digitalization through the adoption of advanced technologies like Big Data Analytics, Machine Learning, and Cloud Computing.

Through its digital transformation initiatives, Pegadaian creates added value for society and the Indonesian economy by focusing on financial inclusion and the empowerment of MSMEs. This strategy not only improves the company’s financial performance but also supports sustainable economic growth. By integrating modern technology, product innovation, and strategic collaboration, Pegadaian has successfully crafted a digital strategy that drives significant growth while ensuring long-term sustainability in the financial industry. This transformation is a testament to how a sustainable digital strategy can strengthen a company’s market position while supporting overall economic progress.

GNAM Week Universitas Indonesia 1st Day, 4^th session

 

Alfik – Rummy

Moderator: Dr. Jonathan Marpaung

Speaker: I Komang Agus Arisudana (CCEP)

 

The fourth session began at 14:45 with Mr. I Komang Agus Arisudana, Sustainability Commercial Manager from Coca-Cola Europacific Partners Indonesia. He shared that as Coca-Cola looks toward sustainable growth, two critical areas come into focus: economic resilience and environmental support. Ensuring that people’s primary needs are met allows them to explore new opportunities for growth once they are no longer burdened by hunger and scarcity. This creates a foundation for broader economic expansion and sets the stage for a more robust future.

Amid the shift toward a low-carbon economy, industries must take responsibility for reducing emissions while maintaining production levels. The balance between economic growth and environmental protection is vital. We aim to innovate across industries, ensuring that sustainability is integral to production and reducing waste. This mindset is fundamental for ensuring future prosperity. Sustainability is imperative, as all countries, including Indonesia, are working toward achieving sustainable development goals (SDGs). Mr. Arisudana stated that the challenges of the 21st century revolve around the environment, society, and the economy. Around 85 million jobs are expected to be replaced by machines in the future. Achieving a balance between prosperity, partnerships, and peace is essential. Sustainability initiatives should not only focus on environmental preservation but also on fostering economic growth and supporting the well-being of people. Our responsibility is to ensure that businesses thrive while meeting the needs of the people and respecting the environment.

There are main trends shaping the future of work including automation and AI, Gig Economy, etc. By 2030, the global youth population will reach nearly 1.3 billion. The green jobs development house helps the transition to a sustainable circular economy. It is part of the green jobs, the key transformations:

• Economic efficiency to ecological economic
• Utilization of nonrenewable resources
• Linear approach
• Impact mitigation
• Sole specialization

CCIP has 6 pillars focusing on sustainability, there are:

• Drinks
• Society
• Supply chain
• Climate: supporting the Indonesia government to achieve the target of the zero-emission
• Packaging: the bottle is recycled, made of 100% recycled PET
• Water

The circular economy offers a global economic potential of $4.5 trillion. It emphasizes reducing waste and regenerating resources, breaking away from traditional linear models. Green jobs, particularly in this sector, will drive future economic growth. As Coca-Cola transitions to renewable resources, the focus will shift to a system that is both preventive and adaptive, mitigating environmental impacts. In Coca-Cola’s case, they are working to eliminate unnecessary packaging and create beverage packaging made from recycled materials. They aim to achieve 100% recyclable packaging by 2025, with 50% of plastic used being rPET by that same year, and by 2030, Coca-Cola plans to stop using plastic as the base material for packaging. To reach these goals, CCEP has a plant and office in Indonesia, specifically located in Jakarta and Cikarang.

Packaging for the water (Ades) is also recycled. CICIP changed the Sprite bottle to a white-colored bottle because the good quality of rPET is typically associated with clear bottles. They have established a sustainable community waste bank to unlock economic potential from waste management while addressing other societal issues. A community waste bank operates similarly to a financial savings bank, but with waste as the currency. Community members bring recyclable waste such as plastic, paper, glass, and metal to the waste bank. In exchange, they receive credit or points, which can be converted into goods, services, or sometimes even cash. This initiative encourages households to segregate waste and reduce environmental pollution while offering tangible economic rewards. Building a sustainable community waste bank helps create a closed-loop system where waste is no longer seen as a burden but as an economic asset. By integrating waste management with financial empowerment and environmental education, these banks offer a holistic solution to societal challenges such as poverty, pollution, and health issues. This model not only helps unlock economic potential from waste but also fosters a more sustainable, inclusive, and environmentally conscious community. Furthermore, Coca-Cola is moving toward 100% regenerative water use to reduce the water use ratio by 10% compared to the 2019 baseline.

As Coca-Cola prepares for the future, education and skills training will be essential. The 21st century brings unique challenges, including the rapid evolution of technology and job markets. It is estimated that 77 million new jobs will emerge, while 65% of students today will work in roles that don’t yet exist. By 2025, 50% of all employees will require reskilling. The future workforce will need to adapt to these changes, particularly in soft skills, remote work, and sustainability. Both hard and soft skills must evolve to keep pace with technological advances. In the next decade, green jobs will dominate industries, emphasizing sustainability and innovation. The circular economy, renewable energy, and efficient resource management are key areas where future job growth will occur. Hard skills such as life cycle assessment and renewable energy technology, as well as soft skills such as systems thinking and collaborative problem-solving, are important for preparing for green jobs in the upcoming years.

Lastly, Mr. Arisudana stated that building green jobs for a sustainable Indonesia is a must, and think about the green job and be a sociopreneur.

Question:

1. What are the effects on the manufacturing industry, regarding digital transformation?
2. We live in an eco-friendly and eco-conscious product, how could CCEP manage the waste efficiently?
3. A circular economy needs quite a huge amount of capital, how do you manage that?
4. What is the percentage of the PET value chain that Coca-Cola acquired?
5. What point does the CCEP try to focus on among several pillars?

GNAM Week Universitas Indonesia 1st Day, 5^th session

 

Alfik – Annisa

Moderator: Dr. Jonathan Marpaung

Speaker: Dr. Ahmad Istamar (Head of Google Indonesia)

Leading the Digital Revolution Corporate Transformation Strategies for the Tech Sector

The session began at 4:37 PM. The speaker started by showcasing how Google products help people, emphasizing that technology is his passion. He highlighted that “the future is here,” particularly with AI at the forefront. The discussion centered around digital transformation (DT), outlining key aspects, challenges, and the critical importance of focusing on business outcomes rather than just technology. The speaker mentioned that 70% of transformation projects fail due to various barriers, including cultural, strategic, and technical obstacles.

Digital transformation is a journey, not a project with a clear start and end date. It involves reshaping existing organizations and using digital tools to streamline previously manual processes. The COVID-19 pandemic accelerated this change, making digital adoption easier and faster. However, the speaker emphasized that a crisis, or “burning platform,” alone is not enough to ensure success, citing Nokia as an example of a company that didn’t survive despite facing urgent challenges.

AI plays a central role in shaping the future, with Google leading efforts to ensure AI is deployed responsibly. The speaker stressed that AI enhances knowledge and creativity and is transforming how people access and interact with information. Google’s mission to “organize the world’s information and make it universally accessible” is amplified through AI, which powers intelligent solutions and helps both businesses and individuals. AI’s ability to learn and improve, particularly through machine learning and deep learning, is already impacting industries like self-driving cars and streamlining operations across various sectors.

Small businesses can also benefit from AI, as it lowers production costs and offers creative tools for tasks like generating podcasts or movies. The speaker noted how Google Assistant and Google Lens provide users with visual inputs to access information and how AI is embedded across Google’s services to empower all users, including businesses.

The culture at Google encourages innovation and agility, allowing employees to “fail fast” and learn quickly from mistakes. This experimental approach drives continuous growth, focusing on users rather than competition. Leadership is essential in fostering this culture, attracting the right talent, and rewarding those who take risks, not just those who succeed. Ultimately, digital transformation is about agility, customer focus, and creating an infrastructure that supports cultural innovation and long-term growth.

Question:

1. When developing AI, how’s Google incoming this challenge?
2. What specific challenge in driving digital innovation in Indonesia in the last decade?
3. How does Google overcome the ethical issues of using AI?