BUSINESS STRATEGY FOR TECH COMPANY TO MARKET DIGITAL SOLUTIONS OF AGTECH IN INDONESIA

• Main Author: Abi Hatim Amin, Ibnu
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/70602
• Institution: Institut Teknologi Bandung

AgTech is the innovations used throughout the agricultural value chains to improve efficiency, profitability, and also sustainability. It can be hardware or software, new technologies, business models, and digital innovations. It is believed that AgTech can tack on US$500 billion as additional value to the global GDP by 2030, promotes food security and boost productivity improvement for the industry. Over the years, as multinational technology company TDG has built deep competences in cutting-edge technologies including in AgTech through artificial intelligence, big data, blockchain, cloud, Internet of Things (IoT), and robotics as digital solutions for agricultural industry. Following the successful business in original country, TDG aims to leverage portfolio business of AgTech solutions to other Southeast Asia countries, including Indonesia. As a major agricultural player in global, Indonesia is a big potential market to leverage and expand digital solutions of AgTech. This final project is aiming to help TDG in defining business strategy to market digital solutions of AgTech in Indonesia. As entering new market, several market analyses need to be conducted to prepare strategical plans. Through PESTEL, Porter Five Forces, and VRIO frameworks to analyze both external and internal factors, a SWOT analysis can be formed. By transforming factors in SWOT to TOWS matrix, the strategic options have mapped out. To refine the business strategy, the TOWS matrix is further developed through the Strategy Diamond framework by integrating TOWS strategy with the company’s core competencies, goals, and values. There is no doubt that TDG has great potential to market digital solutions of AgTech in Indonesia. The basic strategy is targeting with sectors that has some characteristic of business situation and process as same as original country or previous successful use case. Start with customers that have importance and high urgency to implement it. Internal development and enhancement of necessary resources, as well as appointment of local partner/channels/agent also needed to support the strategy, in order to deliver value proposition and documenting economic impact of AgTech to customers. Offer opex instead of capex, or charge service with combined solutions. It will help customer to see the technology as an operation cost than investment, subject to be more affordable.