FORMULATING DIGITAL BUSINESS STRATEGY FOR DATA CENTER ECOSYSTEM SUSTAINABLE GROWTH: A CASE STUDY AT PT INDONESIA NETWORK (PERSERO), TBK

• Main Author: Widowati, Wieke
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72078
• Institution: Institut Teknologi Bandung

Digitization is used by almost all nations, including Indonesia, to speed up economic growth. Nowadays, the increase of 21 million digital users since the COVID-19 pandemic started to lead the acceleration of the country's digital economy. In 2021, the number of Indonesia's internet users reached significantly, and it was USD 70 billion, or an increase of 49% since 2020. Digital economy growth trends, data center access, and broad international bandwidth are supporting tools for computing, data storage, data security, and network, which enterprises in industrial business need. Indonesia Network (Innet) provides data center products to more than one subsidiary. The three subsidiaries running this portfolio are Beta Sadaya (BTS), Debian, and Mobile Cell. Beta Sadaya (BTS), with the new brand name Digital Ecosystem (DE) has the responsibility to manage all Indonesia Network’s data center, namely Neutral Cloud and Internet Exchange (Neucloud), DE’s owned data center at Serpong, Sentul, and Surabaya (3S) and Hyperscale Data center (HDC) at Cikarang. Besides, Debian maintains data center in Singapore, Hongkong and Timor Leste, while Mobile Cell manages its owned data center to fulfil internal usage data center for supporting mobile infrastructure. By having the same business portfolio, Debian and DE did not meet the optimum revenue which is already targeted. The unaligned business strategy at Innet Group followed this condition. Other reasons which contributed to this result are the Account Manager's lack of experience on how to market DC in a great way to customers, and the issue Go To Market (GTM) strategy between Enterprise and Wholesale, and the long bureaucracy to entering the DC area also contributes the underperformed of revenue target. Considering Indonesia has a great potential to be developed Indonesian industrial data center, therefore Digital Ecosystem (DE) as a Innet’s consolidated company needs to focus on how to create a great digital strategy as the fundamental of digitized solution. DE needs to have a unique value proposition that relates to digital technologies as a part of the strategy to be a distinguished company from the competitors. This study uses in-depth interviews as a qualitative research methodology to get comprehensive information. After the information had been collected, the Author analyzed through PESTEL for macro-environment analysis, and SWOT for micro-environment analysis, and based those analysis TOWS, a new proposed of digital strategies based on QSPM and Business Model Canvas have been created. There are four proposed digital strategies, namely Highlight data center value proposition as a digital ecosystem, Collaborate with strategic partners to enhance the capability, capacity, and customer attractiveness, Build-up seamless data center ecosystem connectivity, and Improve global talent competitiveness. Among those strategies, Digital Ecosystem has to prioritize to get optimum results in increasing revenue. Also, to have Capital Expenditure (Capex) effectiveness, Digital Ecosystem has to emphasize the implementation of a Hyperscale data center to get more customer attractiveness. In addition, considering that connectivity is the strongest variable for Digital Ecosystem, therefore it is needed to have solid collaboration at Innet Group. By having a background business legacy in voice and connectivity, data center will be the new key business stream to unlocking the asset's potential for high performance for valuation and multiple EBITDA.