ANALYSIS OF TELKOM GROUP BUSINESS LINE PRIORITY DETERMINATION FOR SYNERGY WITH MDI PORTCO USING THE ANALYTICAL HIERARCHY PROCESS (AHP)

• Main Author: Rahmanto, Yanuar
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/70722
• Institution: Institut Teknologi Bandung

MDI Ventures is a multi-stage Venture Capital company supported by Telkom Indonesia with offices in Indonesia, Singapore and the United States with office expansion in Europe and South Korea. In CVCs such as MDI Ventures, VCs have an advantage in increasing the value of startups funded through potential synergies that can be carried out with parent companies, especially the Telkom Group. MDI Ventures facilitates its portfolio to gain synergies or partnership opportunities with companies under the Telkom Group and all SOEs. MDI Ventures facilitates its portfolio to gain synergies or partnership opportunities with companies under the Telkom Group and all SOEs. During 2021, there were 83 synergy projects between the MDI portfolio and several Telkom Groups and SOEs. Every year, the synergy value target between Startup and Telkom Group is increasing. In 2022, MDI Ventures' synergy target value will reach 2.4 trillion. However, at the end of the year it only reached less than 80%. This may be caused by the lack of proper cooperation priorities, so that the Telkom Group's business lines that have the potential for large synergy values are not prioritized. This final project determines Telkom's business line priorities for synergy with MDI Portco using a quantitative method, namely the Analytical Hierarchy Process (AHP) with Super Decisions software. This research has determined 14 Telkom Group business lines, namely data, digital service, digital & IT services, digital adjacent services, data center & cloud, home fixed, enterprise connectivity, network, satellite, traffic, legacy, BPO, home legacy, and device. AHP can also show which criteria are most influential in the priority setting process. In determining the criteria and sub-criteria that affect the prioritization process, this study uses concepts based on theories related to synergies and interviews conducted with synergy management. The results of the interviews show that there are five main criteria that influence the synergy prioritization process, namely conformity with the directives of the CEO of Telkom, product compatibility, economic, connection, and initiatives that support the government. And the sub-criteria include net revenue, growth target, closeness, track record of synergy, track record of synergy value, and compatibility with MDI Portco. The results showed that the most important criteria were conformity with the directives of the CEO of Telkom 0.52442 (52.44%), product compatibility 0.27248 (27.25%), economic 0.09797 (9.80%), connection 0.06306 (6.31%), and initiatives that supports the government 0.04207 (4.21%). Based on the results of analysis with AHP, group results from 5 respondents, global priority values for Telkom's business line are data 0.1945 (19.45%), digital services 0.1650 (16.5%), digital & IT services 0.1189 (11.89%), digital adjacent services 0.1114 ( 11.14%), data center & cloud 0.1012 (10.12%), home fixed 0.0801 (8.01%), enterprise connectivity 0.0552 (5.52%), network 0.0383 (3.83%), satellite 0.0351 (3.51%), traffic 0.0306 (3.06%) , legacy 0.0237 (2.37%), BPO 0.0204 (2.04%), home legacy 0.0133 (1.33%), and devices 0.0123 (1.23%). So, the group results of 5 respondents concluded that MDI Portco needs to prioritize data and digital services. After getting the priority of the best Telkom business line, then make preparations to make an approach to the Telkom business line. MDI Ventures and MDI Portco need to prepare proposals, pitch decks and other things properly. By doing so, it is hoped that the synergy value obtained will be optimal.