Digital Transformation - Rethink The Business in The Digital Age Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. It's also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure. www.heruwijayanto.com

1. Rethink the business in the digital age
Heru Wijayanto, MM. MBA. M.MT
- www.heruwijayanto.com

2. Heru Wijayanto Aripradono
Co-Founder and Operations Manager SociopreneurID – (www.sociopreneur.id)
Subject Matter Expert Haruka Edu – (www.harukaedu.com)
Researcher – BRI Microfinance Center
Mentor Bank Indonesia Innovation – Bank Indonesia Change Program
Lecture – Universitas Internasional Batam
S.Kom. (Information Engineering, STTS), M.M. (International Business Management, IEU Surabaya), MBA. (International
Business Management, IMI Belgium), M.MT (Information Technology Management, ITS Surabaya)
HP / WA. 0817-525-5879 – heru@sociopreneur.id / heru.wijayanto@uib.ac.id
Scholarship and Award – Tourism Surabaya GIS, IMI Scholarship Antwerp, Indonesia Vocational Education Research, Blended
Learning DAAD Germany
Speakers and Judges – Ubral Shaper US YES Speaker, Social Entrepreneurship Speaker, STUCO (Indonesia Student
Competition)
siheyu siheyu
Heru Wijayanto https://www.linkedin.com/in/heruwijayanto/
www.heruwijayanto.com

3. Source : www.bdo.com
The exponential growth of productivity, information sharing, mobility, and collaboration is reshaping the business
world faster and more pervasively than any other time in history.
The World Has Changed

4. Netflix: Entertainment just for you – where you want it, when you want it
Source: World Economic Forum/Bain & Company

5. Source : www.bdo.com
As the lifespan of businesses continue to shrink, there are a number of reasons why your organization will want
to undergo Digital Transformation, but by far the most likely reason is that you don’t have any other choice.
It’s survival!

6. Digital transformation is the integration
of digital technology into all areas of a
business, fundamentally changing how
you operate and deliver value to
customers.
It's also a cultural change that requires
organizations to continually challenge
the status quo, experiment, and get
comfortable with failure.
DIGITAL
TRANSFORMATION

7. The Challenge of
DIGITAL TRANSFORMATION
How does a business started
before the Internet adapt to
grow in the digital age ?

8. History Of Kodak

10. Industri Musik Indonesia (CD)

11. Source : www.hipwee.com

12. Top 5 Traffic (Online News and Media) Indonesia
Source : www.similarweb.com

13. “Digital Transformation Is
Not About Technology --
David L. Rogers (The Digital Transformation Playbook)
It is about strategy and
new ways of thinking”

14. Digital transformation
closes the gap between
what digital customers
already expect and what
analog businesses
actually deliver.
“
Digital transformation is
the changes associated
with the application of
digital technology
in all aspects of human
society,
“
[Digital transformation] involves a
change in leadership, different
thinking, the encouragement of
innovation and new business models,
incorporating digitisation of assets and
an increased use of technology to
improve the experience of your
organisation’s employees, customers,
suppliers, partners and stakeholders.
“
Source : https://enterprisersproject.com/

16. Source: World Economic Forum/Bain & Company
Digital Technologies Are Disrupting Traditional Organizations And Work

18. Customers
From passive targets... to dynamic networks

19. Customers
Mass Market Model Customer Network Model
Customers are passive and
are considered in aggregate.
Current and potential customers have access to
a wide variety of digital platforms that allow them
to interact, publish, broadcast, and innovate—
and thereby shape brands, reputations, and markets.
Customers are just as likely to connect
with and influence each other.

21. Source:
We Are Social 2020

23. Changing Behavior of Payment Transaction
The use of cheque and BG continues to decrease while the card use tend to increase over
the years
Source: Bank Indonesia

24. Changing Behavior of Payment Transaction
The use of non-cash payment instrument has increased over the last 10 years
Source: Bank Indonesia

25. Trends in Payment System
Technological innovations bring changes in payment system landscape
Source: Bank Indonesia

26. Trends in Payment System

28. Competition
From symmetric... to asymmetric
From products... to platforms

29. Competition: Changes in Strategic Assumptions from the Analog to
the Digital Age
From To
Competition within defined industries Competition across fluid industries
Clear distinctions between partners and
rivals
Blurred distinctions between partners
and rivals
Competition is a zero-sum game Competitors cooperate in key areas
Key assets are held inside the firm Key assets reside in outside networks
Products with unique features and
benefits
Platforms with partners who exchange
value
A few dominant competitors per
category
Winner-takes-all due to network effects

33. Data
From silos... to strategic asset

34. Data: Changes in Strategic Assumptions from the Analog to the Digital
Age
From To
Data is expensive to generate in firm Data is continuously generated
everywhere
Challenge of data is storing and
managing it
Challenge of data is turning it into
valuable information
Firms make use only of structured data Unstructured data is increasingly usable
and valuable
Data is managed in operational silos Value of data is in connecting it across
silos
Data is a tool for optimizing processes Data is a key intangible asset for value
creation

36. New technologies make data-
enabled learning much more
powerful than the customer
insights produced in the past.

37. NetFlix
“House of Cards” is one of the first major test cases of this Big Data-driven creative strategy. For
almost a year, Netflix executives have told us that their detailed knowledge of Netflix subscriber
viewing preferences clinched their decision to license a remake of the popular and critically well
regarded 1990 BBC miniseries.
Netflix’s data indicated that the same subscribers who loved the original BBC production also gobbled
down movies starring Kevin Spacey or directed by David Fincher.
Therefore, concluded Netflix executives, a remake of the BBC drama with Spacey and Fincher attached
was a no-brainer, to the point that the company committed $100 million for two 13-episode seasons.

38. NetFlix

39. https://www.youtube.com/watch?v=pSBgUP-k594

40. Innovation
From top-down planning... to experimentation

41. Innovation: Changes in Strategic Assumptions from the Analog to the
Digital Age
From To
Decisions made based on intuition and
seniority
Decisions made based on testing and
validating
Testing ideas is expensive, slow, and difficult Testing ideas is cheap, fast, and easy
Experiments conducted infrequently,
by experts
Experiments conducted constantly,
by everyone
Challenge of innovation is to find the right
solution
Challenge of innovation is to solve the right
problem
Failure is avoided at all cost Failures are learned from, early and cheaply
Focus is on the “finished” product Focus is on minimum viable prototypes and
iteration after launch

48. Value
From defending... to adapting

49. Value: Changes in Strategic Assumptions from the Analog to the
Digital Age
From To
Value proposition defined by industry Value proposition defined by changing
customer needs
Execute your current value proposition Uncover the next opportunity for customer
value
Optimize your business model as long as
possible
Evolve before you must, to stay ahead of the
curve
Judge change by how it impacts your current
business
Judge change by how it could create your
next business
Market success allows for complacency “Only the paranoid survive”

50. Metropolitan Museum of Art – New York
• Founded in 1870, the Metropolitan
Museum of Art has long been one of
New York’s top tourist attractions.
• With over 6 million annual visits, it is
far from in decline.
• But the museum is keenly aware that
its audience’s lives are changing
dramatically due to the digital
revolution in media and com-
munications.

51. A Fresh Digital Face for The Met

52. Metropolitan Museum of Art – New York

53. https://www.metmuseum.org/

54. Tokopedia

56. Traveloka

58. Source: David Rogers

59. Digital transformation is not about technology.
...it is about STRATEGY, LEADERSHIP, and new ways
of THINKING

61. Heru Wijayanto, MM., MBA., M.MT
(heru.Wijayanto@uib.ac.id)
siheyu siheyu
Heru Wijayanto https://www.linkedin.com/in/heruwijayanto/