The Indonesian business landscape 2000<\/p>\n
By Hermawan Kartajaya,<\/p>\n
Finally, we are leading ourselves into a new century and a new
\nmillennium safely and smoothly. Y2K worries are behind us and
\ntemporarily unproven. But this does not mean that we can be
\ncomplacent because there are big and fundamental changes
\nhappening to Indonesia's business landscape.<\/p>\n
As we all know, since mid-1997 we have experienced a chain of
\ncrises, starting with an economic crisis, which evolved into a
\npolitical crisis and finally an immense social crisis. This chain
\nof crises and far-reaching and fundamental changes in technology,
\nthe political-legal sphere, economy, sociocultural activities,
\nmarket, competition and certainly, customers. The total change
\nhas put forward a brand new Indonesian business landscape.<\/p>\n
To comprehend the format of New Indonesia in the first year of
\nthe new millennium, MarkPlus Strategic Consulting has proposed a
\nreview of Indonesia's business landscape in the year 2000.
\nSuitable to our own model, The Sustainable Marketing Enterprise,
\nour office has assessed three business-landscape components and
\nthey are Change (Technology, Political-Legal, Economy,
\nSociocultural and Market), Competitor and Customer, often called
\nthe 3Cs. The other component of the business landscape -- the
\nCompany -- is excluded from our assessment because the review
\napplies to all companies. From the 3Cs review, we have
\nsuccessfully identified 18 types of change that will have an
\ninfluence on Indonesian business life in the future, or what is
\ncalled 18 significant forces of change.<\/p>\n
The 18 significant forces of change can, in fact, be
\nclassified into three major types of change on the Indonesian
\nbusiness landscape, creating three new rules of the game within
\nIndonesian business. However, bear in mind that new rules of the
\ngame are not a guarantee for a company to be a winner. Based on
\nour proposed review, to be a winner, the company must familiarize
\nitself with the 10 new competitive value propositions and 10
\ncustomer value requirements. In addition, to be a winner the
\ncompany should also choose one of the five formulas or the
\nwinning value app (apps: short for applications).<\/p>\n
Here I will try to explain all the current changes and the
\nmatching responses, beginning with the first C: Change, that
\nbears the 18 significant forces of change as mentioned above, has
\nbeen classified into three types. It will be followed by a
\ndiscussion on three new rules of the game. Right after that will
\nbe a discussion on the 2Cs -- Competitor and Customer -- followed
\nby the 10 new competitive value propositions and 10 customer
\nvalue requirements, as well as the five winning value apps.<\/p>\n
According to Prof. Zuhal, there actually exist three kinds of
\ntechnology having a large influence on our lives at the moment,
\ncomprising information technology (IT), biotechnology and
\nmaterial technology; in the case of Indonesia, there is only one
\ntechnology that acts as a change catalyst and that is IT.<\/p>\n
From the political-legal point of view, there are four
\nimportant changes. The first change is a transition from
\ncentralization to decentralization of national economy
\ndevelopment management. The second change is a transition from an
\nauthoritarian country to a modern democratic country. The third
\nchange is a transition from power supremacy to the supremacy of
\nlaw. Last but not least, the fourth change shows a transition
\nfrom a business paradigm marked by corruption to the business
\nparadigm of BTP.<\/p>\n
From the economic vantage point, there are also four important
\nchanges. First, that our economy is still controlled by the IMF,
\nsubsequent to the loan awarded by IMF to overcome the Indonesia's
\neconomic crisis. Second is the change triggered by the formation
\nof a legitimate democratic government. There is a growing sense
\nof optimism by the Indonesian people regarding the future of
\nIndonesia's economy, especially for the ethnic Chinese. This
\nchange has more or less given its contribution to regenerating
\nthe Indonesian economy recently. Third is the emergence of a
\nregion-state economy in Indonesia as a consequence of the
\nvalidation of the Law of Regional Autonomy and the Law of PPKPD.
\nFourth, the people's economy that is no longer associated with
\nasset redistribution.<\/p>\n
Meanwhile, from the market point of view, there are the
\nimportant changes. First is the market-level of playing field
\nthat applies to any business player in Indonesia. Second, is the
\nmarket player proliferation that, among others, is stimulated by
\nthe emergence of new entrepreneurs with new paradigms. Third is
\nthe pressure on market efficiency.<\/p>\n
Change that is generated by IT development can be categorized
\nas informationalization. The changes in the field of political-
\nlegal, economy and socioculture can be categorized as
\ndemocratization. Meanwhile, change in the market can be
\nclassified as liberalization. Informationalization,
\ndemocratization and liberalization will later bear new rules of
\nthe game for companies operating in Indonesia.
\nInformationalization will complement the rule of the game in the
\nform of deep customer knowledge.<\/p>\n
This means that a company will become successful by not only
\nfocusing on information about its customers, but also good
\ncomprehension about its customers. Democratization will initiate
\nrules of the game in the form of good corporate governance.
\nBecause democratization will lead to the creation of fair and
\ntransparent business practices, including to three main
\nstakeholders. On the other hand, liberalization will address a
\nrule of the game in the form of competitive core competence,
\nbecause the key success factor is greatly determined by its core
\ncompetence.<\/p>\n
For the other two Cs, Competitor and Customer, there are three
\nmajor changes. In terms of Competitor, there are three
\nCompetitive Setting Indications: Rationalization,
\nMultinationalization and Extenderization. Rationalization is a
\nform of change that stimulates the creation of efficient
\nindustrial structure. Multinationalization is a change stipulated
\nby the higher role of MNCs in the national economy, as well as
\nthe impact of ownership transfer from national to international
\nparties. Extenderization is a form of change that is set out by a
\ncertain will to expand the market basis from domestic to
\nregional. In contrast, in terms of Customer, there are three
\nCustomer Profile Indications: Universalization, Fortification and
\nJustification. Universalization is a value adoption phenomenon
\nand universal lifestyle. Fortification is a self-identity
\nprotection phenomenon based on ethnicity, religion and regions.
\nJustification is a phenomenon that is rendered by the economic
\ncrisis, where people tend to be budget-conscious with their
\nspending.<\/p>\n
Three changes in the competitive setting will later bear 10
\nnew competitive value propositions -- quality, on-time delivery,
\ncustomization, brand, variety, flexibility, low prices, service,
\nvalue-added and warranties. In contrast, three changes in term of
\nthe customer profile will bear 10 new customer value requirements
\n-- solutions, on-time delivery, personalization, image, choice,
\nconvenience, low-cost, reliability, value-in-use and security. To
\nface value propositions and value requirements like this, a
\ncompany can choose one of five value applications: more for more,
\nmore for same, more for less, same for less and less for less.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/the-indonesian-business-landscape-2000-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}