LEAN STARTUP METHODOLOGY IMPLEMENTATION FOR RATIONAL INNOVATION INVESTMENT: CASE STUDY BANK PHOBOS

• Main Author: Danu Wicaksono, Nurindro
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/56027
• Institution: Institut Teknologi Bandung

Bank PHOBOS is one of Indonesia's most aggressive banks in terms of innovation and investing in technology. The bank has executed many business transformations that heavily relied on digitalization to increase process efficiency and business effectiveness. Bank successfully launched a digital banking product on 2016 that became the pioneer and still became one of the best digital banking solutions in the Indonesian market today. The importance of technology for the bank reflected by making technology the primary strategy to achieve the bank's goals as depicted in the bank's vision and mission. Bank PHOBOS's technology investment not only tells a success story but also shows the bank's need to improve its technology investment process since it is still a hit-miss scenario for the bank. Several failures in technology investment experienced by the bank have significant investment value. Innovation that involves technology investment has a higher degree of uncertainty. Several failures in technology investment experienced by the bank have significant investment value. Bank PHOBOS currently has a mechanism to classify and prioritize IT investment based on the objective that it wants to be achieved. However, the decision often relies heavily on the assumption due to data or information unavailability. This poor decision-making happens mainly on transformation / strategic initiative. Transformation / strategic initiative tend to have higher uncertainty since the investment aim to develop a new product/service for a new market segment or a new business modelLean startup methodology developed recently provides guidance and ways for a startup to deal with uncertainty with an iterative process and emphasize an experimental approach. Build-measure-learn framework help startup to fail fast and take corrective action at the early stage of investment. With the lean startup approach, it is hoped that banks can balance the need to continuously innovate and be rational in investing time and money. In this research, the author will use the Kepner-tegroe approach to do situation analysis and problem analysis in the investment process for the bank's highly uncertain initiative. The author also does potential problem/opportunity analysis to implement lean startup methodology in the bank—analysis in the interview results with key IT stakeholders related to the technology investment with high uncertainty. The output of situation analysis using the Kepner-tegroe method is used by the author to answer whether Lean startup can answer the investment problem in the bank and how the implementation model of lean startup methodology fits with Bank’s organizational context.