FINANCING STRATEGY FOR REJUVENATION OF A SOFTWARE COMPANY ENGAGED IN HEALTHCARE INDUSTRY: (CASE STUDY OF PT STU, WEST JAVA, INDONESIA)

• Main Author: Ariawan Wicaksono, Gilang
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/46031
• Institution: Institut Teknologi Bandung

The introduction of Jaminan Kesehatan Nasional (JKN) Program in 2014 has changed Indonesian healthcare landscape. By making healthcare affordable for citizen of Indonesia, the amount of patient able to afford medical care has skyrocketed compared to before JKN. This brought several issues for healthcare providers such as patient demand exceeding service capacities, inadequate compensation for medical service by Badan Pelaksana Jaminan Sosial Kesehatan (BPJS-Kesehatan), and long queue in healthcare facilities. PT STU comes to provide solution through promise of integrated healthcare ecosystem and data-driven decision-making capabilities for healthcare providers. However, due to mismanagement, the company currently is looking for a turnaround strategy to become profitable, attractive business for investor. The author proposed two phases of business for PT STU: market acquisition phase and monetization phase. In the first phase, the author proposed pricing level to achieve operational break-even point, and in the second phase, the author explored three monetization options to leverage the information gathered in the first phase of the business. The author begins by exploring the business of healthcare information system and software development. After reviewing the literature, the author develops Grand Strategy Matrix and SWOT analysis from analysis of external factors using Porter’s 5 Forces and PEST and internal factors using RBV and VRIO framework. Based on the analysis, the author then proposed four business model canvas for four of the company’s potential products: online reservation & provider’s subscription, membership, advertising, and referral service. The analysis of chapter 3 will be divided into two sections based on the phases of the strategy previously mentioned. In the first section, the goal is to obtain operational break-even point which will be achieved through combination of two revenue streams: annual subscription for healthcare provider and per transaction online reservation for patients. The proposed price will be Rp250,000 for healthcare provider with annual subscription contract and Rp3,000 per online reservation made through PT STU’s system. The author projects requirement of 21,437 transactions per month to cover operational cost of the company. In the second section, the goal is to explore the three potential revenue streams available after the company build its customer base and gather enough data. The three proposed revenue streams are membership program for companies, targeted advertising services, and commission from patient referrals. Based on the 5-years projection, the author compares the financial feasibility parameters of NPV, IRR, Payback Period, and ROE. Membership service provide the best result, followed by advertising while referral service is not financially feasible. To implement the business plan, the author proposed 3 years strategy of market acquisition in year 1, development of derivative product in year 2, and monetization and profitable derivative product in year 3. In the first year, PT STU should focus on acquiring partner providers to create pool of data asset. In the second year, PT STU should focus on leveraging the data asset gathered in the first year, and in the third year PT STU should focus on monetization of the data asset. The author also suggest that PT STU develop both membership and advertising project. To answer the constraint of development manpower, the company may develop the required software through partnership with other entities with suitable capabilities for the business.