Financial Analysis of Developing Chatbot Platform as Growth Strategy for Radya Labs Teknologi

• Main Author: Bagus Firdaus / 29116524, Hari
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/27726
• Institution: Institut Teknologi Bandung

Artificial Intelligence (AI) is currently one of the hottest trend in IT industry. One of AI implementation is chatbot, an autonomous service for user to interact via chat interface. Chatbot is very much on the rise, it is especially important to help business in sales and customer service area. Radya Labs Teknologi has a plan to develop their own chatbot platform for Indonesian language. The company has been experiencing a slowdown and decrease in profitability in recent years, mainly due to loss of competitive advantage. The company considers this chatbot initiative as part of their growth strategy, however they also need to see whether the project can generate better results than existing business as well as the risks involved and capital needed. <br /> <br /> <br /> This paper attempts to study the feasibility of this idea by analysing chatbot industry and market growth from literature research and experts opinion. Based on product roadmap and established assumptions, financial assessment can be compiled such as capital budgeting, discounted cash flow feasibility study, and the impact of the project on the whole company profitability. To complement the calculation, risk analysis and valuation analysis are also performed. <br /> <br /> <br /> The result shows that chatbot initiative is feasible in all optimistic, moderate, and pessimistic revenue growth scenario. From the whole company business perspective, this initiative certainly can be growth strategy since it will improve company profitability in the long run. The project also possesses some high risks such as market risk on adoption of innovation, financial risk that is short of funding, and people risk when key personnel leaves the project before phases completion. Based on the valuation analysis, company should turn their business into only chatbot business after four years since it will give higher firm value to shareholders.