CRAFTING STRATEGY TO GROW AND SUSTAIN FOR TECHNOLOGY-BASED FIRM (CASE STUDY: SENSYNC)

• Main Author: Resfiandhi, Ruly
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/70592
• Institution: Institut Teknologi Bandung

Today's global situation has faced uncertainty after more than two years of experiencing the COVID-19 pandemic, disruption threat, and the macroeconomic foreshadowing unforeseeable future. One of the disruptions is the technology which is indicated by digitalization. Digitalization significantly impacts the world and has become essential in almost all aspects. PT Sensor Teknologi Indonesia, known as Sensync, is an integrated system/digital IoT platform technology firm engaged in sustainability. Unfortunately, since 2020, Sensync's annual income has been decreasing. This is not following the predetermined targets, especially short-term financial objectives. Sensync has two primary market segments. First, the government (national/local), and the second is industries that are required to install and operate SPARING results regulation intervention. We use a cause map and fishbone diagram to identify and organize the known or possible causes of the problem. The results are that the business issues for Sensync's declining growth potentially come from people with low transaction rates and the government as a market target. In addition, the decrease in customer and government intervention factors are possible as causative; however, it is something uncontrollable. This research aims to reinvent Sensync's business, craft a strategy for growth and sustainability, and build good strategy execution. The conceptual framework employed for reinventing Sensync's business. This framework consists of four key components: reimagining the business, reevaluating the value chain, reconnecting with customers, and rebuilding the organization. The analysis evaluates Sensync's external and internal environment to diagnose the competitive conditions. We conducted a qualitative and single-case study using semi-structured interviews and longitudinal and cross-sectional approaches. The tools used in this study include PESTEL, the Five forces, SWOT, and VRIO. The proposed business solutions consist of business and corporate strategies. We are crafting of business strategy using two dimensions: the TOWS matrix and business model innovation, while corporate strategy is along three dimensions: vertical integration, diversification, and geographic scope. The research findings show that Sensync should create and raise values that support the strengths and opportunities presented and reduce and eliminate the costs that represent the weaknesses and threats that exist. Targeting the ESG segment, "getting the job done" value proposition, "automated services" customer relationships, and adding distributor channels and platforms are expected to create and enhance Sensync's value innovation while simultaneously reducing costs by eliminating fewer valuable factors such as customer relationship factors "selfservices" and personal assistance, industry segment sparing, convenience/usability value proposition, R&D activities, and product sales as revenue streams. In corporate strategy, Sensync emphasizes backward vertical integration, which focuses on design activities, final assembly, and system integration. Added engaged with forward vertical integration with sales and marketing activities and after sales service support. Furthermore, Sensync can implement a related-constrained diversification strategy that transforms from an environmental monitoring equipment system to an environmental management company and/or diversifies into other sustainability or digital/IoT sectors. In addition, Sensync should consider borrowing resources through integrated strategic alliances (alliance with equity). For geographic scope, Sensync still competes in the national market. In addition, to make up the strategy execution process is divided into three main parts, building organizational capability, managing internal options, and corporate culture and leadership. Finally, the proposed implementation plans will enable Sensync's stakeholders to understand that issues and actions are needed at each part of the strategic process.