IPMI Business Review
Smart Financial Less Cash Society: A Closer Look
ApRIL 2018
MAP MALL A Sophisticated Mobile Indoor Mapping Application IPMI BUSINESS REVIEW 1
2 IPMI BUSINESS REVIEW
IPMI BUSINESS REVIEW 3
8
Investment Management Amidst Disruptive Technology
18 | Financial Apps for Millennials 22 | MapMall, Mapping Application 29 | STC Rotterdam and PT ETSI Visit IPMI Campus 43 | Business Ideas for Millenials
4 IPMI BUSINESS REVIEW
14
Less Cash Society: A Closer Look
36
Optimizing Asset Through Sharing Economy
46 | Creating Competitive Advantages for Local Products 49 | Crowdsourcing System 52 | Co-Working Space: An Alternative
for Startup Companies
54 | Lesson Learned From First Travel
Editors Dana Afriza Rega Indra Adhiprana Teguh Poeradisastra Wicky Prameshwari Contributing Editor Alvi Syachrin Nency Ismail Ronny Indria Widodo Vicky Sanda Wiwied Widyasmara Adi Ardo Ryan Dwitanto Media Production SWA Art Designer spot Contributing Designer SWA Editorial Office: IPMI International Business School Jl Rawajati Timur I /1 Kalibata, Jakarta Selatan12750,Indonesia P :62.21 797.8888, 62.21 797.0419 F : 62.21 797.0509 E : Magazine@ipmi.ac.id www.ipmi.ac.id
IPMI BUSINESS REVIEW 5
A Welcome from ceo Jimmy M. Rifai Gani, IPMI Executive Director & CEO
6 IPMI BUSINESS REVIEW
For four consecutive years, IPMI
the conference. IPMI has also
We believe that these initiatives
has been placed as the highest
launched its academic journal
will enhance IPMI’s efforts to
ranked private business school
last year. We intend to utilize this
become a significant part of
in Indonesia, with a 3 Palmes
journal as a media for researches
the international academic
of Excellence, by a prestigious
and papers written by our faculty
community, and be able to
world business school ranking
members and students, as well as
contribute more significantly
institution based in France,
other academicians from external.
to society. We have decided to
Eduniversal Business School
choose the theme of this edition
Rangkings. There are only three
IPMI has embarked on a journey to
of IPMI Business Review in the
business schools in Indonesia that
impact beyond the usual business
area of financial.
achieved 3 Palmes of Excellence,
communities we have contributed
University of Indonesia, SBM ITB,
to shape through our alumni in
Through these interesting articles,
and IPMI. We are truly proud of
the last 33 years. We want to have
we believe readers will be inspired
this achievement.
a significant impact within the
and be able to take some of the
SME communities. We want to
concepts to not only become
We have also just successfully
equip them with the right skills
more wise in their financial
organized our first International
and attitude that can help them to
matters, but also to be able to
Conference on Management,
sustain and grow their businesses.
implement them in their financial
Accounting, Business, and
We want them to get access
decisions.
Entrepreneurship (ICMABE) on
to knowledge and skills large
October 16-18, 2017, in IPMI
corporations already have. We
We hope that you enjoy this
Campus. We were able to attract
also want to impact the villages,
edition of the IPMI Business
the submission of 196 abstracts
the underdeveloped parts of
Review.
from 9 countries, and hosted
Indonesia that need the attention
more than one hundred scholars
of many.
Thank you.
to present their papers during
IPMI BUSINESS REVIEW 7
Investment Management amidst Disruptive TechnologY Today, we are living in the era when globalization and technology are powerful disruptive forces that shape our world. The global society, governments and industries are struggling to adapt to these rapid changes. The challenge of this era for investors, is that they need to be aware of technological shifts when making an investment strategy. If you are new investors, there are some things you need to pay attention to in order to face the challenge.
8 IPMI BUSINESS REVIEW
In their 20thCEO Survey Report on February 2017, PwC’s Global Asset & Wealth Management Leader Barry Benjamin said he was concerned about the participants’ responses are around digital and cyber security. “This industry is not thinking as agilely around technology and disruption as it should,” Benjamin concluded. KPMG Global Head of Asset Management, Tom Brown, also said the same thing. He said digital technologies will likely be the key to enable growth, improve performance, reduce costs and better
disruptive technologies in Indonesia is mostly felt by the banking sector. A lot of nonbanking institutions today offer the same financial services through their latest development of financial technologies. “In and Joseph Bower, both Harvard
terms of payment, for instance,
Business School professors.
there are a lot of payment
Nowadays, technological
applications that we can use to do
developments are changing
that,” he explained.
the way modern humans live. Such changes also bring critical
Other example is the peer-to-
investment implications.
peer technology, a digital sharing
According to Head of IPMI manage risks. However, most
Investment Gallery Ardo
companies are not respond
Dwitanto, disruptive technology
quickly to these changes. “Our
is a phenomenon within the
research suggests that few have
global business world, where
managed to translate this more
the instability is caused by
strategic view of digital into real
rapid development of digital
and sustainable competitive
technology. “The phenomenon is
advantage,” said Brown.
hugely impacting business sectors that are not using internet and
system for resource and service that connects different users. “In short, this application gives an opportunity for investors and companies or individuals to meet and conduct their financial transaction directly through digital world without being intermediated by the banks,” Dwitanto concluded.
Yet, what is a disruptive
digital technology as their added
Rathbones’ Chief Investment
technology? The term “disruptive
values,” he said.
Officer Julian Chillingworth in
technology” was first used in 1995 by Clayton M. Christensen
According to Dwitanto, the
his 2017 article noted there are
IPMI BUSINESS REVIEW 9
four key points about disruptive
are affecting not just the
technologies. First, they tend to
production process, but also the
be developed by outsiders and
products themselves. “It is rare
entrepreneurs rather than market
that a technology is inherently
leaders. As a result, disruptive
disruptive, disruption usually
technologies have higher risks
occurs when a low-margin
and take longer time to develop.
technology (or combination of
But when they start entering
technologies) is applied to a new
the market, they achieve faster
market at a lower price,” said
penetration which finally impact
Chillingworth.
the market tremendously.
Identifying opportunities Disruptive technologies can indeed be disrupting. A huge number of investors have regretted that day when they decided to listen to persuasive market analysts on this or that fascinating new technologies. They may be right about the technology, but failed to predict
Fourth, there can be multiple
market response or identify tough
Second, big companies know their
disruptive technologies within
competitors.
market so well and they choose
one industry or business s ector,
to maintain their customers
some of which are competing.
by developing their existing
However, despite the seemingly
technology. On the other side,
chaotic nature of these
they often fail to capitalizing
disruptions, Chillingworth said
disruptive technology, because
that some developments are
the technology usually lack
actually predictable, especially
refinement or have performance
when the technological progress
problems at their initial stage.
is contingent on a previous
Third, disruptive technologies
10 IPMI BUSINESS REVIEW
development.
“Many of these companies were start-ups and years from making profits; in some cases, they didn’t yet have any revenues,” said Chillingworth. He mentioned global cases that gave investors some huge lessons, such as the dotcom fall in 2000, as well as the fall of Yahoo! share from $118.75 in January 2000 to $8.11 in
September 2001. “Subsequently,
to buy up smaller companies
“Investors should carefully read
Google has gone on to usurp
to augment their offering, thus
market situation and not be easily
Yahoo! and more or less drive
neutralize the threats from rival
influenced by empty marketing
it out of business. Meanwhile,
technologies,” he argued.
jargons or false news. On the
Amazon coming to market in May 1997 and it survived both the boom and bust and has since revolutionized retailing globally,” said him.
Another alternative is to invest in companies that will benefit from falling costs as they are using technologies to minimize their operational costs. Retailers, insurance or engineering
So what to invest? Is it better to invest to smaller companies such as startups, or to trust the more secure, bigger companies? Chillingworth suggest that current tech giants could be the answer. “This may
companies may be the ones gained profits from disruptive
other hand, industrial sectors should be more responsive and quickly adapt to the current trends in order to maintain the interest of their shareholders,” said him. How to survive?
technologies. Whichever
On the other side, when an
approach investors take,
entrepreneur is struggling to
Chillingworth suggest that active
transform their business during
investing is better suited to this
this disruption era, journey to get
challenge.
transformed, here are 10 tips from
seem surprising, given their
Meanwhile, Dwitanto warns
exponential growth to date. But
investors to be aware of false
companies such as Google and
and hoax news that easily
Amazon are using huge cash flow
being spread using the same
from their current businesses
technology and social media.
F3 Technology Partner. 1.
Understand the impact Define what digital means for your business; analyze your
IPMI BUSINESS REVIEW 11
own technical capabilities,
3.
the risks involved, and how
to adopt a dynamic cloud strategy that can benefit from
that can be centrally managed
a coordinated use of all cloud
and controlled via automation,
people out of their comfort
options.
allowing IT managers to use
zones. To become truly digital,
storage more strategically.
it’s important to break silos
12 IPMI BUSINESS REVIEW
A great approach would be
enables a synchronized data
happen without shaking
for successful.
needs of your organization.
Software-defined storage
Transformation cannot
company culture that allows
or hybrid — serves the unique
next-generation capabilities.
Encourage change
teams in order to prepare a
cloud option — public, private,
component that can enable
business and revenues.
between cross-functional
You need to figure out which
the most important IT
bring about changes in your
and encourage collaboration
their customers and markets.
Storage technology is
digital transformation can
2.
Advance your data center
4.
Adopt cloud Today, businesses are increasingly adopting cloud to meet the evolving demands of
5.
Being Customer-Centric Today’s digital consumers are well-informed, expect more, and never think twice about shifting their loyalty. Only the most innovative companies
– the ones who
References:
utilize technology
1.
to predict future
Partner. August 2017. “10 Ways
trends, develop
to Successfully
personalized
Transform Your
products,
Business in the Era of Digital
and create
Disruption“.
memorable
2.
experiences for
“Realizing digital:
– will emerge as
Delivering wealth
It is essential for entrepreneurs to analyze
winners in the years to come.
management in the
the competitive advantages that are
digital era”.
specifically applicable to their marketplace
Smart data usage
3.
in order to ensure sustainable success.
Cooper. February
It can be a low-cost business model, the
continuously evolving to
supply chain, a unique technology, or the
findings in the
support both disruption
brand itself.
Asset and Wealth
Focus on solutions
industry”.
limit your data-based technology to sales and marketing, as it can be useful in defining strategies related to employee recruitment, retention, customer service, and other areas as well. Develop an Effective Governance Model A well-defined corporate governance model, in today’s digital era, is extremely vital for business success. Corporate governance helps unlock the organizational value, which positions the brand perfectly in a highly competitive environment. 8.
PriceWaterhouse
Technology platforms are
2017. “20th CEO Survey: Key
Management
and transformation. Don’t
7.
KPMG International Cooperative. 2017.
their customers
6.
F3 Technology
9.
In order to beat the competition, business
4.
Rathbones Investment
should focus more on providing solutions
Report. April
that address the key issues associated
2017. “How soon
with the product. This helps in creating a bonding, an engagement with the customers that translates into long-term
is now? The investment impact of disruptive technologies”.
loyalty. 10. Track progress using Metrics and KPIs KPIs and business metrics are extremely crucial to track business performance and success. Metrics are used to monitor business performance, while KPIs can help businesses set specific goals, build strategies, and evaluate progress through a historical record of performance and success.
Define your competitive advantage
IPMI BUSINESS REVIEW 13
$ $
Less Cash Society: A Closer Look
$
APPROVED
$
$
Technology, a powerful force behind globalization, is affecting the modern lives today. They are particularly significant in financial sector. Individuals, businesses and governments are becoming more and more reliant on digital technology for financial transactions. Credit and debit cards, electronic payments, online and mobile banking services, financial applications such as PayPal, cryptocurrencies, and localized non-cash offerings are common occurrences in our everyday lives. This raise a question: will technology eventually transform the world into a less cash society?
14 IPMI BUSINESS REVIEW
tax-compliant, and regulatorycompliant transactions would hardly miss the big notes, at least according to extensive evidence that central banks and other researchers have accumulated.” Rogoff admitted that using less cash would hardly end crime and tax evasion; but he believes that it would discourage the Kenneth Rogoff, Professor of Economics and
underground economy to
Public Policy at Harvard University, argued that the
use cash. Eventually, they
use of cash – particularly for medium and large-
will have to take a bigger risk
size transactions – has been declining in the legal
of being caught. “Moreover,
economy in contrast with the growth of debit cards,
cash payments by employers
electronic payments, and mobile transfers. In his
to undocumented workers
article issued in September 2016, “Cash facilitates
are a principal driver of illegal
crime because it is anonymous”, he also argued that
immigration. Scaling back
a less cash society would be a fairer and safer place,
the use of cash is a far more
as cash would facilitates crime
humane way to limit
because it is anonymous and
immigration than building
big bills are so easy to carry and
barbed-wire fences,” said
conceal.
him.
In another article of his, “A lesscash society, not a cashless one”, Rogoff also explained that a less cash society is not a cashless society. A less society, according to him, occurs when we phase out large denomination notes without eliminating cash entirely. He thinks that large notes are not essential for retail transactions. “The overwhelming demand comes from criminals and tax evaders in the underground economy,” wrote him. “Ordinary people engaged in legal,
IPMI BUSINESS REVIEW 15
But is there any country with a
chips using encrypted messages.
Saudi Arabia, Peru and Egypt,
less cash society? Apparently
Even Somali has their own fintech
only 1 percent of transactions
there are many. In Sweden, cash
platform, the ZAAD, in which they
are cashless. Even some highly
alternatives were started in
managed to revolutionize their
advanced countries, such as
the 1960s when banks initiated
financial transaction through
Japan, are still highly reliant on
digital transfers to pay wages.
mobile payments, with over 30
cash,” wrote him in his June 2017
Retailers are permitted by law to
transactions a month on average.
article, “Why a Cash-less Future is
refuse cash, and many business in Sweden have discouraged the use of cash. Moreover, nearly half of
However, according to Bhaskar Chakravorti from The
becoming a Closer Reality Every Day”.
Conversation, the data shows
Chakravorti also argued that cash
that as of 2013, approximately
will remain resilience in the future
85 percent of the world’s
for two reasons. First, cash gives
transactions still involved
a sense of privacy protection as
In Canada, the MintChip project
cash. “While Singapore, the
people have “a visceral sense of
was launched in 2012 by the Royal
Netherlands, France, Sweden and
security when they have cash
Canadian Mint to enable money
Switzerland are among the least
with them”. And second, he said
transfer through computerized
cash-reliant countries, in Malaysia,
many people still consider cash
the people in Sweden are actively using Swish, the money app in Sweden.
16 IPMI BUSINESS REVIEW
References: 1.
Bhaskar. June
proposed three principles:
27, 2017. “Why
1.
Future is
a Cash-less
The government should allow
becoming a
its citizens to continue using
Closer Reality Every Day”. The
cash for reasonable-size
Conversation
purchases while undermining
on https://
the business models of those engaged in large, repeated
as more convenient and versatile.
2.
September 6,
Less cash policy should be
need a ‘less-
decade or two, in order for the
and fraud.”
people to adapt to it and to avoid unexpected problems related to systemic failures. 3.
Rogoff,
wholesale level.
is always concerns about hacking
in India, when the government
2.
Kenneth S.
adjusted slowly, such as a
Those arguments were evident
futurism.com.
anonymous transactions on a
“With digital transactions, there
tried to encourage less-cash
Chakravorti,
from cash to less cash? Rogoff
Any financial transformation
2016. “Why we cash society”. Project Syndicate. 3.
Rogoff, Kenneth S. October 19, 2016. “A less-cash society, not a
transactions in their effort to
should also be sensitive with
cashless one”.
battle corruption and illegal
the needs of low-income
Bloomberg on
activities. They took a big
households, especially those
step in November 2017 with
that are unbanked.
denomination of the 500 and 1,000 rupee banknotes while issued the new ones, resulted in the long lines of people tried to exchange their denominated notes in banks. “Despite the surge in mobile payments after demonetization, cash in India remains resilient. In March, five months after demonetization, cash withdrawals were actually 0.6 percent higher than a year earlier,” reported Chakravorti.
https://www. bloomberg. com.
Indeed, technologies are changing rapidly. Even though cash remains preferable in many countries and a less cash society does not mean a cashless society, it is important for the global world to remain alert and flexible in order to face future challenges caused by disruptive technologies, particularly in financial transactions. Who knows, maybe someday in the near future, such disruptive technologies eventually
So how to steer a country to
will force us to become a truly
safely transform their transaction
cashless society.
IPMI BUSINESS REVIEW 17
No generation welcome disruptive technologies as responsive as the Millennials. In terms of financial services, it is widely known that the Gen Y people are less interested in conventional banking and much prefer the more technologically savvy alternatives. With the globalization of smartphones and various modern apps, these digital natives are looking for new approaches to manage their finance. Here are some financial apps that would best suit to meet the needs of the Millennials.
Financial Apps for Millennials The Millennial Generation, or the
previous generations. Investopedia
technology innovations, as they
Millennials, are commonly refers
considers Millennials as “digital
change the way people use banking
to people who were born between
natives�, as they are the first to be
services while providing non-
the early 1980s and 2000s. They
born into a digital world where
banking alternatives for financial
are also known as Generation Y.
technology is part of their everyday
transactions.
According to Goldman Sachs, this is
lives.
the largest generation the history ever recorded that will reshape the future economy, as they grown up in a time of rapid change which gave them a set of priorities and expectations sharply different from
18 IPMI BUSINESS REVIEW
According to Artashes Vardanian
In the past decade, digital
from www.medium.com, there
technologies are either disrupting
will be dramatic change in the
or improving the finance world.
average consumer profile for
Banking sector is the one affected
financial services. “The pressure of
the most by disruptive financial
customer centricity has become
a main priority and it will help to meet the needs of
there in the digital world. Here we summarize some of
digital native clientele; especially if taking into account
the most used fintech apps popular among Millennials.
the Millennials, as they are the generation who are more adaptive to digital products and going to own
Mint.com
aggregated net worth of 24$ trillion in 2020 according
According to Wikipedia, Mint.com is a free, web-
to Deloitte,” he explained.
based personal financial management service which
Millennials will be prevalent as the most valuable customers for banking sector in the coming years. Thus conventional banks must adapt and respond quickly to meet their needs and their preference for digital technologies. “The first thing to consider is that they are super oriented on mobile first solutions,” wrote Vardanian in his March 2017 article. “On average, a Millennial taps on smartphone screen 300–400
allows users to track bank, credit card, investment, loan balances and transactions through a single user interface, as well as create budgets and set financial goals. The app lets user track and review their spending trends over long period of time, categorizes spending transactions, and even set reminders and alerts when user approach their budget limit. In 2016, Mint.com claimed to have over 20 million users.
times per day and 85–90% of Millennials check their smartphones each 10–15 minutes even when they are walking.” Most fintech startups have recognized these habits earlier than conventional banks and other traditional financial institutions. As the result, startup companies are providing better innovative financial services than their conventional competitors. Millennials quickly responded to these technologically savvy approaches, which in turn boost the global growth of fintech solutions.
Digit
However, fintech startups have launched numerous
Digit is a micro savings app, specifically designed to help
interesting offers, and Millennials might get
users to save their money. Once connected to user’s
overwhelmed with the range of choices provided out
bank account, Digit analyzes their income and spending,
IPMI BUSINESS REVIEW 19
determines how much they can save money based on their spending patterns.
Monefy With Monefy app, user can see their spending distribution and get detailed information from the transactions list, manage categories, choose the report period, select the currency, use budget mode, as well
References: 1.
Vardanian, Artashes. March 27, 2017. “Six
2.
Hadi Pratama, Aditya. August 14, 2017.
3.
Goldman Sachs. “Millennials Infographic”.
reasons why millennials adopt consumer
“Kumpulan Startup Fintech di Indonesia”.
Retrieved from http://www.
end fintech solutions”. Medium on www.
Tech in Asia on id.techinasia.com.
goldmansachs.com/our-thinking/pages/
medium.com.
20 IPMI BUSINESS REVIEW
millennials
as backup and export data. Moreover, user can safely synchronize data between devices using their Dropbox account. They can create or change records, add new categories, or delete old ones and automatically sync to the other devices. Jurnal Jurnal is Indonesian accounting software provider for small and medium scale businesses. User can make automatic invoice as well as managing their asset, inventory, and warehouse. On February 2016, Jurnal received A Series funding from East Ventures, Fenox VC and angel investor Budi Setiadharma. Jojonomic From financial statement services for individuals, Jojonomic is now focusing on Software as a Service (SaaS) platform to ease their client’s reimbursement process. They also provide face recognition features for employees. On September 2016, the startup received A Series funding of USD1.5 million from Maloekoe Ventures.
IPMI BUSINESS REVIEW 21
MapMall A Sophisticated Mobile Indoor Mapping Application
n big cities, mall has been considered one of the most preferred places to spend time at. Mall facilities are designed to meet the needs and tastes of urban dwellers. Malls are usually packed with department store, shops, restaurants, cafes, cinemas, and even children playgrounds. In short, mall is a place where visitors are given various choices of activities they can do, from leisure to business, grocery shopping to window shopping, as well as spending time with friends and family.
pexels.com
Not surprisingly, malls in Jakarta have approximately one
22 IPMI BUSINESS REVIEW
million visitors per month. Jakarta itself has at least 173 malls with thousands of outlets, which gives Jakarta the title of “City of Malls�. From around 173 malls, the Top 5 and most favorites among them are: 1. Kelapa Gading Mall Area : 147,000 m2
2. Grand Indonesia Mall Area : 130,000 m2 Outlet : >480 units Visitor : 1.8 million per month 3. Kota Kasablanka Mall Area : 195,000 m2 Outlet : >225 units Visitor : 2 million per month 4. Gandaria City Mall Area : 93,854 m2 Outlet : >500 units Visitor : 1.8 million per month 5. Central Park Mall Area : 125,626 m2 Outlet : >355 units Visitor : 2.9 million per month Indeed, almost every mall in Jakarta is huge. With hundreds of outlets inside each, it actually makes mall looks like a super huge maze yet a delightful and addictive one. Once visitors get inside, they are in a whole different dimension. Visitors will move from one outlet to another, from the first floor to the next, until somewhere along the line
onyxbeacon.com
Outlet : >490 units Visitor : 2.5 million per month
they have no idea on where they are, or often, they just do not know how to get to a particular outlet, the exit, and even the toilet. They get lost in a mall! In Indonesia, there have been several cases of people being lost in a mall. According to simpletravelbug.wordpress. com, in 2015, a visitor of Paris Van Java Mall in Bandung was lost after trying to find an outlet named Mini Lactasari Farma. He needed three times of going around the mall until he finally found the outlet, which turned out to be located in the rooftop. Meanwhile in 2016, a unique incident occurred in Panakukang Mall, Makassar, where 30 people were lost due to an over-crowded situation in the mall.
Getting lost inside a mall is not just experienced by mall visitors in Indonesia. In Norwich, United Kingdom, In 2015 a man called James Boyett could not find his car parked at the Castle Mall parking lot. James forgot the exact spot where he parked his car and it took him two weeks to find it. Unfortunately for James, he had to pay a huge sum of parking fee for his two-week parking. Those cases have encouraged people to find the best way to get around the mall without getting lost. On many malls, floor arrangement remains ineffective, as often times the floor plans are difficult to read and understand. The information center does not seem to help much either. It just does not make sense if the visitor has to search where the
IPMI BUSINESS REVIEW 23
information center is just to know the location of an outlet. In 2015, students from IPMI International Business School found a real solution for this problem. Armed with global and visionary mindset, they introduced a mobile application for indoor mapping called MapMall. It is a mobile app that utilizes electromagnetic technology to precisely guide visitors to find their indoor destination. MapMall provides information related to the outlets and tenants of a mall including its exact location and special events. Mobile App Excellence Globally, Indonesia is one of the largest and fastest growing mobile markets, and is ranked
24 IPMI BUSINESS REVIEW
3rd for mobile web penetration. Based on the data collected by wearesocial.com in 2016, 85% of Indonesians are mobile device users while 43% of them are smartphone users. The number of mobile device users in Indonesia is evidently in line with the growth of internet users. In 2016, internetlivestats. com has released the data showing that 20% out of 250 million people, or equal to 53.236.719 people, in Indonesia have access to internet. It has been steadily increased by 1% every year since 2014. However, mobile device and internet are two elements that seem to have an infinite ability when they are put together.
Equipped with the latest and the most sophisticated hardware and software, mobile device has taken over many functions of computer and laptop. Any kind of work that once could only be done in front of the computer desktop, can now be done in mobile device, anywhere and anytime. Smartphone has successfully facilitated people in undergoing a dynamic and practical culture that will lead the society to master the massive development of information and communication technology. Mobile application is also frequently claimed as the main factor behind the massive development of smartphones. Most people decide to use mobile device since that
means they can utilize as much applications provided as possible. It is actually not a surprising matter considering there are countless mobile apps consist of innumerable categories offering tons of benefits that can be utilized by everyone in every moment of their life. For instance, to have fun, people can download game-categorized apps. Then, to perform a healthy lifestyle or to execute the right way of exercise, people can download apps from health and fitness category. Meanwhile, to keep up to date with the latest news around the world, there is news and magazine apps category ready to be downloaded. Even the dating scene through online mobile apps are becoming more and more popular in today’s era. In general, there are 10 most popular mobile apps category in Indonesia based on the research by codepolitan.com in 2016. Maps and navigation app itself is in the 8th position out of the 10 most popular apps. Other apps are games, education and reference, business and productivity tools, news, media, communications and social networking, entertainment, music and videos, and utilities. For more details, see Figure 1 below. These days, the diverse category of mobile apps has successfully reached the interest of the whole segment of society. Even the older generations, who previously were not familiar at all with mobile device technology,
are now using smartphones with all of its various apps. Not to mention the large-scale invasion of Chinese smartphones which enable people to own a sophisticated smartphone for only Rp800,000. As the result, a research conducted by GfK Research Institute in 2013 showed that mobile device users in Indonesia spent at least 60 minutes each day interacting with mobile apps. The research also showed that mobile device users in Indonesia are downloading new applications every month. MapMall as a Powerful Solution In big cities like Jakarta, mall has become the primary location for many activities. People go to mall to shop, lunch, have meeting, play with the kids, and many other activities. Indeed, mall is identical with a huge building standing on a large area and contains hundreds of outlets. These outlets are there with the main purpose to accommodate the needs and the tastes of people. But on the other hand, that many outlets can actually cause confusion for the visitors. Sometimes, it is
extremely hard for the visitors to find a particular outlet, not because the outlet is located somewhere in a secluded corner, but because they do not know which direction they should go in order to find the outlet. Here, MapMall presence can be considered as a concrete solution in digital era to overcome the problem. Unlike other regular navigation apps, MapMall offers a special indoor mapping service utilizing electromagnetic technology. This technology is claimed to be far more accurate than Global Positioning System (GPS) technology utilized by Google in Google Map indoor mapping features. Its accuracy is less than 3 meters, allows MapMall to provide precise guidance for visitors to find their indoor destination. Moreover, if the building consists of several floors, MapMall will automatically identify which floor the visitors are while the Google Map users must manually switch the floor level to find their location. Another indoor mapping service
IPMI BUSINESS REVIEW 25
provided by this innovative mobile app is the availability of information related to events and e-voucher of an outlet. One of the most remarkable facilities offered by MapMall is an attractive location-based notification. When visitors passing through the outlets that is currently carrying out a special event such as Lebaran, Christmas, or Independence Day, a notification will be automatically appeared on visitors’ mobile device screen by MapMall, so as when visitors passing through the outlets that is handing e-vouchers out. The notification will appear attractively by showing outlets pictures and other related information. In this case, MapMall does not only help visitors to find special event or voucher in a mall, but also help the outlets in promoting their products with lower advertisement budget. This means that MapMall allows mall outlets to advertise and promote their products using a very low budget yet they still able to reach a wide range of customers. In other words, both mall visitors and outlets are benefited by MapMall application. In addition to those services, MapMall has prepared itself to be a “fun-to-use indoor mapping mobile app.” Some features that
26 IPMI BUSINESS REVIEW
are being designed are vouchers for augmented reality, games, and shopping race. The features are also projected to give competitive advantages for MapMall future development. Furthermore, several innovations have been set up to develop MapMall as the most sophisticated indoor mapping application. Those innovations are: 1. Parking Location Indicator It has been an open secret that one of the most common problems faced by mall visitors is that they often accidentally forget the spot where their cars are parked. So, MapMall parking location indicator will greatly assist mall visitors finding their parked cars. 2. Emergency Notification This feature is functioned to broadcast emergency info when visitors lost their children in the mall. The broadcast will be received by all MapMall users inside the mall in the form of photographs and specific info about the children. 3. Crowd Notification With crowd notification, MapMall will be able to identify the crowded areas in the mall, including areas with long queue such as restaurants, big sale outlets, or toilets. Once the crowded areas have been
identified, MapMall will send notification to visitors as a consideration whether they will keep going to the crowded area or take a turn somewhere else. 4. Promo and Event News Blast It is a feature that enables MapMall users to receive notification related to promo and event in mall outlets when they are outside of the mall, or even when they are far away from any mall. MapMall and Kalibata Plaza Kalibata Plaza has been appointed as the pilot project of MapMall application. It is considered as a perfect place to launch MapMall to public, since Kalibata Plaza is a 4-storey building with more than two main entrances. Its building design is not a straight square box with several long alleys that enables visitors to enjoy the outlets and tenants in an artistic overview. Located nearby Taman Makam Pahlawan and Duren Kalibata Train Station, Kalibata Plaza is the one and only shopping center at the border of East and South Jakarta. It is a family shopping mall with variety of retail shops and entertainment centers with good reputation brands such as Matahari Department Store, McDonald’s, KFC, JCo, Breadtalk, Pizza Hut, Cinema XXI, and some nice outdoor hang out terraces.
Moreover, Kalibata Plaza is surrounded by middle class residential areas that give it an advantage to attract a broad segment of customers. Kalibata Plaza management stated that their visitors profiles are as follow; • Gender (%): Female (60%) and male (40%) •
Age: 12-45 years old
•
Category: Family, young family, teenagers, and professionals
•
Weekdays visitors: +/- 12.500 visitors
•
Weekend visitors: +/- 14.500 visitors
•
Monthly visitors: +/- 405.500 visitors
Kalibata Plaza management has also carried out an observation related to the vehicle traffic in the parking lot. The results are as shown by Figure 2 below.
No of Traffic Per annum Per month
2013 4,690,117 390,843
Figure 2. Vehicle Traffic at Kalibata Plaza Parking Lot Kalibata Plaza management sees MapMall as a significant potential improvement to the mall brand image. It will assist Kalibata Plaza in upgrading the mall status from C-B to a higher grade and make it
a more sophisticated mall. As the pilot project, MapMall and Kalibata Plaza have arranged some strategic actions for partnership.
in which 20% of them have been joining MapMall since the very first time it was launched.
The first action taken was signing
Following the partnership agreements with outlets and tenants, MapMall installed an Indoor Broadcast Unit (IBU) on the area near the partnered outlets and tenants. IBU itself will be functioned to facilitate outlets and tenant in promoting their products by selling discount voucher. Finally, MapMall was Grand Launched in January 2017.
2014 5,004,455 417,038
2015 4,587,794 382,316
a 2-years exclusive contract on November 2016. At the same time, the second action was carrying out a gathering for tenants, which also served as MapMall soft launching where tenants and outlets within the Kalibata Plaza were invited. Today, Kalibata Plaza has 114 outlets and tenants
IPMI BUSINESS REVIEW 27
snapshot
SEPTEMBER 23 2017
Workshop “Financial Engineering” at IPMI Campus
Dean Prof. Roy Sembel presented a welcome speech at “Financial Engineering/Innovation & GCG” workshop on September 23, 2017. The event was organized by IPMI, Indonesian Institute for Commissioners and Directors (Lembaga Komisaris dan Direksi Indonesia/LKDI), and Institute of Certified Management Accountant (ICMA). MAY 17 2017
The Sustainable Family Business Seminar
The Case Center of IPMI International Business School
Speakers at this event included Executive Board of LKDI Stefanus Ginting and Head of CMA Jakarta Ikin Solihin. IPMI faculty member Agus Loekman led the workshop.
and Yayasan Fitrah Bisnis Keluarga Nusantara (FBN) held a Business Seminar entitled “The Sustainable Family Business: Lessons-learned from the Next Generation of Indonesia Family Business Leaders” at IPMI Campus on May 17, 2017. The speakers of this event, Bani M Mulia, Director of PT Samudera Indonesia, Noni Purnomo, President Director of Blue Bird Group Holding, Yohana Astrida Gumelar, President Director of PT Nugra Karsera, and Agus Finardi, a Family Business Expert from IPMI.
AUGUST 16 2017
UCTS Dean Visit IPMI Campus
Assoc. Prof. Dr. Mohd. Zainal Munshid Bin Harun, Dean of School of Business and Management from University College of Technology Sarawak, Malaysia, visit IPMI on August 16, 2017. IPMI and UCTS talked about collaboration and shared on various research activities.
28 IPMI BUSINESS REVIEW
snapshot
AUGUST 28 2017
SMEs Workshop by Agus Finardi
IPMI organized a workshop for small and medium-sized enterprises (SMEs) on August 28, 2017. IPMI faculty member Agus Finardi, MBA shared his knowledge about challenges and opportunities for Indonesia SMEs, continuous product management to attract costumer, optimizing the online experience and e-supply chain, and digital industry.
SEPTEMBER 29 2017
SMEs Workshop feat. Bari Arijono and Teguh Anantawikrama
IPMI International Business School organized a workshop entitled ‘‘Digital Lending Platforms for Small and Medium-sized Enterprises (SMEs)’’ on September 29,2017. The workshop was led by Bari Arijono, Indonesian Association of Digital Entrepreneurs (ADEI) chairman, and Teguh Anantawikrama, Indonesian Chamber of Commerce and Industry (Kadin Indonesia) chairman permanent comittee on SMEs financial access.
SEPTEMBER 25 2017
STC Rotterdam and PT ETSI Visit IPMI Campus
STC International Maritime & Logistic Experts,Rotterdam,Netherlands delegation headed by Charmain Board of Directors Frits Gronsveld and PT ETSI Hutama Maritim led by Director Lisda Y. Satria made a courtesy visit to IPMI on September 25, 2017. IPMI, STC, and ETSI discussed about the establishment of MBA Maritime Supply Chain Management and cooperation in the field of consultancy, education and training for shipping, port, transport and logistics chain.
IPMI BUSINESS REVIEW 29
snapshot
MAY 29 2017
MoU signed between IPMI and Guangdong University
IPMI International Business School and Guangdong University of Finance, China, strengthen educational collaboration in areas of mutual interest with a Memorandum of Understanding (MoU). The MOU was signed by President Director & CEO IPMI Jimmy Gani and President of Guangdong University of Finance Yong Heming at IPMI Campus on Monday, May 29, 2017.
JULY 6 2017
Power Talk featuring Darryl Hadaway
More than 100 participants gathered at IPMI Campus on Thursday, July 6, 2017. IPMI held Power Talk featuring Darryl Hadaway, Director Markets of Ernst & Young Indonesia. Hadaway was speaking about Chinese’s silk way’s role in today’s global business as a logistics focused distribution way.
MAY 14 2017
Malakasari Waste Bank Project
IPMI EMBA Students and BBA Students collaborate in realizing a sustainable development project at the Malakasari Waste Bank, on May 14, 2017. IPMI students initiated various improvement projects including infrastructure development, administrative reform using technology, and promote the project through social marketing.
30 IPMI BUSINESS REVIEW
snapshot
JUNE 3 2017
Lions Club Stamp Launched by Minister Rudiantara
Lions Club International releases postage stamp to mark 100th birthday, June 3, 2017. This commemorative postage stamps launched by Communications and Information Minister Rudiantara at IPMI Campus.
SEPTEMBER 25 2017
IPMI Investment Gallery Workshop Feat. CeweQuat Founder
CeweQuat founder Bunga Mega and Head of IPMI Investment Gallery Ardo Dwitanto encouraged more young investors to invest in stock market. “We must shift our financial orientation from a savings-oriented society to an investment-oriented,” Bunga said during IPMI InvestMAY 5 2017
Luncheon & Dialogue with Prof. Enrique M. Soriano About Family Business
ment Gallery workshop at IPMI Campus on September 25, 2017.
IPMI International Business School faculty members and alumni along with public guests who’s running a family business had a wonderful luncheon and dialogue with Prof. Enrique M. Soriano on May 5, 2017. Prof. Soriano is an ASEAN Family Business Coach from Philippine, Book Author and Executive Director of ASEAN-based Consulting group, and Wong + Bernstein Advisory. Before luncheon session, Prof. Soriano shared about family business matters such as how to establish a family business that will sustain, managing conflict, succession, running the business, and building trust between family members.
IPMI BUSINESS REVIEW 31
snapshot
JUNE 20 2017
IPMI Launch First Edition of IJBS
IPMI Research Center launched the first edition of the IPMI International Journal of Business Studies (IJBS) on Tuesday, June 20, 2017.
SEPTEMBER 18 2017
Student Affairs Colaboration with Ministry of Foreign Affairs
Al Busyra Basnur, Director of Public Diplomacy, Ministry of Foreign Affairs, Republic of Indonesia, visit IPMI on September 18, 2017, to explore the possibilities of collaborating in student affairs. MAY 24 2017
Financial Literacy Workshop for Librarians
IPMI organized a workshop for librarians, May 24, 2017. The workshop was to introduce and equip the library professionals with financial literacy and management. Speaker at this event was IPMI Dean Prof Roy Sembel shared his knowledge about financial management, and IPMI faculty Ardo Ryan Dwitanto shared about financial literacy. MAY 17 2017
IPMI Seminar on an Intellectual Property Rights for SMEs
IPMI organized an Intellectual Property Rights for Small and Medium-Sized Enterprises (SMEs) Seminar on Wednesday, May 17, 2017. Our faculty member Zain Adnan delivered a lecture actual cases of Indonesia SMEs that are successfully operating their businesses by making effective use of their intellectual property rights.
32 IPMI BUSINESS REVIEW
snapshot
september 27 2017
Financial Management for IWAPI
IPMI faculty member Wiwiek M Daryanto shared her experience and expertise about financial management for Indonesian Business Women’s Association (IWAPI), September 27, 2017.
september 7 2017
Action Learning Project for PGN
IPMI Executive Education conducted Action Learning Project (ALP) for PT Perusahaan Gas Negara (PGN), September 7, 2017. This program was led by Hasnul Suhaimi, IPMI faculty. ALP is a group work, consist of 4-5 members. The group propose an executable project and prepare a project which possibly will turn out with a highest impact that offers significant improvement and growth to company.
MAY 23 2017
IPMI and MBS ink MoU for Professional Development Program
IPMI International Business School has inked a memorandum of understanding (MoU) with Melbourne Business School - Executive Education (MBS) to cooperate and share of information and activity relating to the development and provision of executive and proffessional development programs and initiatives. The MoU was signed by IPMI Executive Director & CEO Jimmy Gani and MBS General Manager Asia Pasific Greg Campbell at IPMI campus, May 23, 2017. The signing ceremony witnessed by IPMI Executive Education Director Bambang Gunawan and MBS Regional Manager Asia Jeffery Soong.
IPMI BUSINESS REVIEW 33
snapshot
September 11 2017
HC Director Maybank Indonesia at Senior Managers Development Program (SMDP)
Human Capital Director Maybank Indonesia Irvandi Ferizal shared his experience at Senior Managers Development Program (SMDP) for PT Bank Maybank Indonesia TBK, September 11, 2017. “What we need is people agility. The capability of the people to respond more quickly and effectively to changing costumer’s expectation, workplace disruptions, and busness requirements.”
may 16 2017
Dean Sembel Welcomes B-Braun Leadership Development Program Participants
IPMI Dean Prof Roy Sembel welcome B-Braun Leadership Development Program participants, May 16, 2017. Participants are led to identify the issues that make for leadership effectivenes, and to give helicopter view perspective in managing and leading the business.
august 28 2017
IPMI Executive Development Program for Leaders of PGN
In collaboration with Melbourne Business School (MBS), IPMI Executive Education conducted Executive Development Program (EDP) for PT Perusahaan Gas Negara, Tbk (PGN), August 28, 2017. Speakers are François Bogacz, Senior Consultant at Melbourne Business School (MBS), and Dr. Frances Penafort, Professional Certified Coach from International Coach Federation, USA, led the EDP.
34 IPMI BUSINESS REVIEW
snapshot
october 6 2017
Capital Market Seminar and Stock Investment Simulation Competition 2017
IPMI’s Capital Market Seminar was
they will have a better and longer
date the need by organizing the
back on October, 6th 2017 by tar-
preparation an it will be easier for
half-day seminar that was contin-
geting high school students as the
them to face any financial burden,”
ued by stock investment simulation
participants. Ardo Dwitanto, Head
as Ardo explained during the event.
competition. Overall, the event was
of IPMI Investment Gallery as well as
success with 39 high school teams
the chairman of the event, said that
It was reasonable explanation by
from Jakarta, Bekasi, Bogor, Band-
this second seminar was intended to
Aldo because the number of domes-
ung, and Cirebon joined as the par-
invite the young generations to be
tic investors in the stock exchanges
ticipants. Hopefully, a similar event
investment literate.
is still below 1% of total Indonesia
will be held regularly next years.
population.Besides that, the mil“We teach them to be investment
lenial generation is the informa-
literate, that their future needs
tion-hungry generation yet the
won’t be necessarily fulfilled by
school curriculum does not have the
conventional savings. So if their in-
capability to satisfy the hunger.
vestment has been prepared earlier,
for that reason, IPMI than accomo-
IPMI BUSINESS REVIEW 35
Millennials’ preference for digital technology has expanded the sharing economy idea in ways baby boomer generation has never done before. “They’re taking a more asset-light stance toward consumption, putting off buying a home in favor of renting, forgoing a car payment and taking Uber, or skipping a hotel in favor of booking a room via Airbnb,” reported Ann Hynek from BlackRock. “This trend really exemplifies the higher volumes/ lower prices model we see from places like Amazon, driving more efficient consumption that’s not necessarily reflected in traditional economic metrics.”
Optimizing Asset through Sharing Economy
In this sharing economy era, our economic system is shaped around sharing of resources. This is particularly evident with the emergence of Airbnb, Uber and even Cloud. “For Millennials, the world they live in has always been a connected one, a natural condition that has driven the
Sharing is not a new concept. But when the concept penetrates the global world, boosted by digital technology and spread by the Millennials, it can make a huge impact that will change our way of life forever. From sharing access to giving free apps, from renting places to renting fashion items, global journalists shared their findings on Millennials attitude on sharing economy, how it has changed the global economy landscape, and what can we learn from it to secure and optimize our assets.
expectation to be able to access music, photos, documents, movies, etc. from any device at any time,” wrote Daniel Arthursson from Entrepreneur. com. “In fact, 57 percent of adults agree that access is the new ownership, according to Pricewaterhouse Coopers (PwC).” The movement started from
36 IPMI BUSINESS REVIEW
olds in 2013, as reported by
References:
Goldman Sachs.”
1.
Arthursson, Daniel. June 9, 2016. “How
“Numerous surveys from the likes
Millennials
of Verdict, Hammerson, Goldman
Are Defining
Sachs and PwC all indicate that
the Sharing
purchasing and owning a house
Economy”. Entrepreneur
are no longer realistic aspirations for the majority of Millennials
Media, Inc. 2.
in the UK and the US,” wrote
Vivian. January
Vivian Hendriksz from Fashion
4, 2017. “2017:
United. “Data from Goldman
The Rise of Millennials and
Sachs indicates the peak home the global economic recession era which Millennials witnessed when they grew up. During this time, prices were sky rocketed, including for housing, cars, education, and travel costs. “Many graduated from college during the recession, only to face a difficult job market and were often forced to move back home in order to make ends meet,” said Arthursson. “Adding to this is the financial responsibilities from mounting student loans – calculated at an average of $20,926 for 25-year-
Hendriksz,
the Sharing
buying years has increased from
Economy”. www.
25 years old to 45 years as an increasing number
fashionunited.
of Millennials still live at home with their parents. Close to a quarter of Millennials surveyed by
uk. 3.
Hynek, Ann.
Verdict (23.8 percent) say they are not concerned
March 1,
with home of their own and would be content to
2016. “How Millennials
rent for the rest of their lives.”
Are Driving the Sharing Economy”.
Indonesia has been seeing the rise of the sharing
BlackRock.
economy activities since 2010. In 2013, for instance, the local platform for online motorcycle taxi, Gojek, provides the first online booking for
4.
Liem, Cassandra. January 5,
transportation service, which then followed by
2016. “The Rise
Uber and Grab. In addition to online transport,
of the Sharing
today Gojek also provides other services such
Economy in Indonesia”. World Economic Forum.
IPMI BUSINESS REVIEW 37
as food and package delivery, grocery shopping, massage and beauty therapist, cleaning service, and many more. “The sharing economy is changing consumption patterns all over the world, as it offers a number of advantages: lower prices, stronger communities, a greater number of players in the market, and greater access to services that were once regarded as a luxury,” said former research intern Cassandra Liem from Brugel.org.
the edge in terms of reservation
Another challenge is the payment
method, because they also have
method. Local platforms mainly
call centers for non-internet
use cash as their main payment
users.”
method, while global platform
“87% of Indonesians are likely to
Two clear barriers remain as a
use products or services from
challenge for sharing economy
others in a share community,
in Indonesia. First, most – if
compared to 66% of the global
not all – sharing economy
population, according to a survey
companies are relying on
conducted by Nielsen in 2014.”
smartphone apps. However, the
According to Liem, Indonesian hotel owners and taxi drivers have been hit hard by this new sharing platforms. Yet, the increased competition from the sharing economy has had positive results for the local community. “The two major taxi companies in Indonesia, Express and BlueBird, have created their own mobile applications which allow users to order a taxi, see the estimated fare and track the driver’s real time position,” explained her. “Arguably, this gives regular taxis
38 IPMI BUSINESS REVIEW
2013 survey revealed that only 23% of Indonesian people own smartphone. This percentage is smaller than some other developing Asian countries. “Nevertheless, due to its large population, it is estimated that Indonesia will have 92 million smart phone users by 2019, 47% of mobile phone users,” said Liem. “So even though at the moment access to online sharing economies remains a barrier for businesses, smartphone use is growing rapidly.”
such as Uber and Airbnb use credit card as their main method. Here lies the important difference between domestic and global players, with domestic players being more adaptive to the local demands. “Credit card use in Indonesia in 2011 is comparatively low, at 5%; while cash (51%) and debit card (29%) remain the most favorable payment methods,” Liem explained. “Consumers across Southeast Asia still prefer to use cash, which means that US-based companies wanting to increase their market share in Indonesia and Southeast Asia will have to consider implementing cash as payment option in order to tap the wider market.”
snapshot
IPMI BUSINESS REVIEW 39
snapshot
2nd IPMI Charity Golf Tournament Thank you to IPMI alumni and sponsors for supporting the 2nd IPMI Charity Golf Tournament at Bogor Raya Club, Jawa Barat, on Thursday, April 27, 2017. The weather was great and the day filled with fun! This tournament would absolutely not have been possible without your support. We look forward to seeing you again!
40 IPMI BUSINESS REVIEW
passion for excellent 41
IPMI BUSINESS REVIEW 41
snapshot
43rd IPMI Graduation Ceremony 2017 IPMI International Business School graduated approximately 109 students from its bachelor’s, master’s, and executive education programs on Wednesday, December 13, 2017. Family and friends gathered inside a Puri Dani Auditorium and celebrated the accomplishments of this year’s graduates. Elia Massa Manik, stateowned oil and gas company PT Pertamina (Persero) President Director, addresses graduates at IPMI’s 43rd Commencement. Meanwhile, Indonesia Export Financing Institution Executive Director, Sinthya Roesly accepts the 2017 Bustanil Arifin Thought Leadership Award.
42 IPMI BUSINESS REVIEW
Business Ideas for Millennials Millennials were born in a time where information is instantly available. Not only they are more educated and well informed, they are also skilled in technology, confident, adaptable, multitasker and more open to new things. How should they use these competitive advantages? What type of business Millennials are good at?
IPMI BUSINESS REVIEW 43
“Millennials seek challenges, yet
As they work best by utilizing
and natural products. “People
work life balance is of utmost
technology and have a different
have started reading labels and
importance to them,” said VP
outlook than the baby boomers
they’re extremely cautious about
of Strategy and Operations of
generation, their behavior and
what they’re putting on their own
OrthoEvidence Inc., Jay Gilbert.
attitude are changing the global
skin, that’s why consumers are
“They have the need for social
business world today. Using their
increasingly interested in brands
interaction, immediate results in
unique competitive advantage
that use only natural ingredients,”
their work, and desire for speedy
in technology, here are three
said journalist Alex Williams.
advancement.”
ideas for Millennials to start their
On the other side, Steve Nicastro from NerdWallet said millennials are facing financial barriers when trying to start a business, including higher student loan debt and lower starting wages. “These challenges are making it difficult for young people to become entrepreneurs.”
44 IPMI BUSINESS REVIEW
business. Organic Products
Online Trading Millennials are the generator of social media and online
The well-informed Millennials are
business has open tremendous
fully aware of the chemical use in
opportunities for them to do
cosmetics and health products.
business anywhere anytime.
Many have started the revolution
“There’s no need to store all the
for healthier and more sustainable
items you want to sell, as drop
alternatives through ecofriendly
shippers will do all that. What
References: 1.
Gilbert, Jay. September 2011. “The Millennials: A new generation of employees, a new set of engagement policies”. Ivey Business Journal.
2.
Nicastro, Steve. June 5, 2017. “3 Smart business ideas for Millennials in 2017”. USA Today Online.
3.
Williams, Alex. June 24, 2017. “5 Business Ideas For The Entrepreneurial Minded Millennial”. www. optimisticmillennial. com.
4.
Arthursson, Daniel. June 9, 2016. “How Millennials
you have to do is build a cool
CloudMe.com, Daniel Arthursson.
Are Defining the
website, promote your products
“That is why sharing economy
Sharing Economy”.
across social media, and be very
such as Uber and AirBnB are
persistent. Attracting customers
becoming more popular among
will be more effective if you offer
this generation. Millennials will
them free shipping or similar
continue to shape the sharing
incentives,” Williams said.
economy for years to come as
Sharing Economy
Entrepreneur Media, Inc.
we move in the direction of decentralization.”
Grew up in the era where housing price and education cost are rising sharply, Millennials are more cautious about spending money. This habit brought new mindset in consumerism. “Sharing and being frugal are now perceived as cool and clever as ownership is not a necessity anymore,” said CEO of
IPMI BUSINESS REVIEW 45
Creating Competitive Advantages for Local Products In every market around the world, competition is necessary to maintain consumer interest, stabilize price and improve product quality. When dealing with the same raw materials, it is up to producer’s creativity and innovation to process these materials into something unique, interesting, and marketable to create their own competitive advantage. In Indonesia, where local citizens are the biggest market, how should one business best compete with other local players as well as international enterprises?
Entrepreneurship is a rising
from 1.67% in 2015. “The figure
theme in Indonesian business
exceeded the minimum ratio of
world. The government
2% relative to the population that
encourage entrepreneurship
a country ideally achieved,” he
among young generation to tackle
proudly added.
unemployment issues. As quoted from the Jakarta Post’s article on March 2017, Cooperatives and Small and Medium Enterprises Minister Anak Agung Gede Ngurah Puspayoga said the national entrepreneurship rate reached 3.1% in 2016, an improvement
46 IPMI BUSINESS REVIEW
Masyitha Baziad noted that the number of local entrepreneurs has increased significantly. “Data from the Central Statistics Agency (BPS) shows that there were 26.7 million entrepreneurs in 2016 compared to 22.7 million in 2006, mainly thanks to the flourishing
indeed an important issue, giving
becoming decentralized, such
Indonesia will be the host for 2018
as the emergence of online
World Bank IMF annual meetings
transportation. “In terms of local
where Human Capital Project will
business, new innovation will
be discussed as one of the main
continue to emerge.”
discussion. The topic is closely related to entrepreneurship and economic development in alignment with Sustainable Development Goals (SDGs).
Market opportunity is wide open for agile entrepreneurs. “Business development will continue forward as long as they work harder and smarter to expand
“Remember, whatever your sector
their market,” Dwitanto said.
is, you need to be digitally savvy
“Agile entrepreneurs nowadays
in this day and age,”
have huge opportunity to expand
Munaf explained.
their regional business and tap
“We need to support
into international market.”
entrepreneurs that are in the scaleup level, so they will have what they need to grow.
As the role of business is changing, sustainability becomes a growing trend for future businesses.
Aside from funding, digital sector
A combination of factors –
they mainly need
in the past
evolving relationships between
more mentorship,
five years,”
developed and emerging
access to various
economies, global institutions
networks, as well
and nation states and public
as technology
and private sectors – has led to
skillsets.”
a greater understanding of the
wrote Baziad in her March 2017 article.
Ardo Dwitanto, Head of IPMI Investment Gallery
New innovation,
connection and interdependency between business and society.
Entrepreneurship is also seen
sustainability, and digital
as the new growth catalyst for
technology
Indonesia. As reported by Baziad,
Sustainability is now being
Ardo Dwitanto, Head of IPMI
Head of Indonesian Creative
considered as a competitive
Investment Gallery, said there
Economy Agency (Bekraf)
advantage to win the competition
will be continuous emergence
Triawan Munaf said building
in the market. Thus, entrepreneur
of local products in the future.
entrepreneurship quality is
has to do more than earning profit
“Fresh ideas will always come up
part of the government focus
if they want their business to
along with new trends for food,
right now, because high quality
grow in the future. A sustainable
handicrafts, and many more,”
entrepreneurs can improve
business must be able to meet
said Dwitanto. He also sees a
the country’s resiliency. This is
some of the basic needs of the
trend of centralized business
IPMI BUSINESS REVIEW 47
Marty Zwilling, Founder and CEO of
References:
Startup Professionals, defines a visionary
•
March 16, 2017.
sense out of the wealth of ideas, and weave
“Boosting high-impact
together a plan for business implementation
Indonesia”. www.
vision usually start by communicating an
digitalnewsasia.com.
integrating individual innovative ideas into
surrounding community without compromising opportunities for future generations to meet their needs. Technology will become a crucial
entrepreneurship in
that will make a difference. “People with inspirational picture of the future, and then
Marty Zwilling, Founder and CEO of Startup Professionals
Baziad, Masyitha.
entrepreneur as someone who can make
•
The Jakarta Post. March 22, 2017.
this fabric, and show how to get there,”
“Ministry targets
wrote Zwilling. “The best ones can make the
entrepreneurship
impossible look easy, so everyone, including
rate to hit 4% this year”. www.
investors, line up to commit.” Technology utilization
thejakartapost.com.
•
Zwilling, Marty. May 25, 2011. “Great
Dwitanto said entrepreneurs should make the
entrepreneurs have
best out of modern technology, such as using
vision, not just ideas”.
social media for marketing activities.
Huffington Post Online.
factor to maintain a sustainable business. It will also drive more
Creative innovation
innovations in many areas, from
From creative package to catchy tagline,
production to marketing. “Digital
innovation can provide a breath of fresh air
30, 2014. “7 Steps
technology is widely used,
for business. “This is important to keep your
to defining your
including in managing resources,”
customers interested in your products,”
niche market”. www.
said Dwitanto. “In agriculture,
Dwitanto added.
for instance, farmers can directly sell their products to buyers.
Niche target market
Also, people have been using
The narrower you define your target market,
social media to directly sell their
the better. This process is known as creating
product to consumers. This means
a niche and is key to success for even the
digital technology is playing an
biggest companies. Many entrepreneurs
important role in the creation
make mistake by claiming they can do many
of new innovation in modern
things and be good at all of them. “Smaller
economic activities.”
is bigger in business, and smaller is not all over the map; it’s highly focused,” said Lynda
Dwitanto share his tips for young
Falkenstein, author of Nichecraft: Using Your
entrepreneurs who want to build
Specialness to Focus Your Business, Corner
their business with local themes:
Your Market and Make Customers Seek You
Strong vision
48 IPMI BUSINESS REVIEW
Out.
•
Entrepreneur Media Staff. December
entrepreneur.com.
Crowdsourcing System
Since ancient time, Indonesians are familiar with the word ‘gotong royong’ and ‘musyawarah’, where collective individuals work together in a project, or voice their opinion on various social issues to find the best solution for the community. In the modern world, the sharing economy turned the same old concept into what we call today as ‘crowdsourcing’.
IPMI BUSINESS REVIEW 49
virtually any domain,” said Simperl, “from using gamification to drive employees’ motivation, challenges and prizes rewarding ideas for product development and innovation, as well as to paid microtasks as a new form to complete routine content work, such as simple text translation, data entry, or updates of database records.” Online crowdsourcing Globalized through digital
country on earth, every age and
technology, crowdsourcing is
gender, multiple languages, who
through the internet,
becoming the hype approach to
are all thinking about solving
smartphones, and wireless
solving various problems within
one problem. They often look
sensors. “Organizations
commercial enterprises, social
at the problem as a fun contest,
interested in crowdsourcing could
organizations, governments and
and creative thinking can win
easily reach out to a global pool
communities. From peer reviews
a prize in the end. That is what
of resources, skills, and creativity,
to open competition, from paid
crowdsourcing platforms do.”
readily available at almost any
bidding to voluntary participation, many forms have emerged to collect as many information as possible, or just to find the best innovative ideas.
At the LIBER’s 43th Annual Conference 2014 in Riga, Latvia, associate professor at the University of Southampton Elena Simperl proposed that the
“There are now about 3.5 billion
efficiency in mobilizing people
people on the planet who are
under a short period of time
connected via the internet and
is what makes crowdsourcing
various social media platforms,”
useful in many ways.
said attorney Jack Posey, managing shareholder of The Posey Law Firm. “Think of a focus group of people from every
50 IPMI BUSINESS REVIEW
“Less than a decade after the introduction of the term in 2006, we see crowdsourcing applied to
is made possible
time of the day at the click of a button,” said Simperl. “For instance, when Google launched a project asking for ideas on how to make the world a better place, it took them around three years and 3,000 employees to review the 150,000 submissions and identify 16 projects they eventually pursued.” The success of crowdfunding depends on each group’s resources, such as time, budget,
and geographical barriers.
age, location, gender, and accent. This
References:
Simperl introduced two scenarios
information will help Mozilla avoid bias in
•
for crowdfunding: microtask
creating its voice recognition systems and
May 1, 2015. “Five
and macrotask. “Microtask is
ensure that the technology can handle
crowdfunding
used when the task is highly
accents — something Google and Apple still
parallelizable and can be divided
struggle with,” told him.
into smaller pieces down to a
Freischlad, Nadine.
sites in Indonesia”. Techinasia.com.
•
Posey, Jack. October 21, 2017.
‘micro’ level, which takes only
Journalist Jewel Topsfield from The
seconds to minutes to complete.
Sidney Morning Herald reported that in
Macrotasks, in turn, is typically
2014, DigitalGlobe partnered with Global
Legal Considerations
the case for creative tasks or
Forest Watch at the World Resources
for Crowdsourcing”.
other complex tasks whose
Institute in Washington, DC, and asked the
Lawyers.com.
resolution requires a great share
public to help map fires across Indonesia.
of contextual information or
“Susan Minnemeyer, who manages World
August 18, 2015.
dependencies to intermediary
Resources Institute’s partnership, said
“How to Use
results,” she explained.
almost 20,000 people participated in the
Crowdsourcing
Mozilla, a nonprofit enterprise who created the Firefox browser, is using crowdsourcing to conduct an experiment in a bid to search for other alternative to data monopolies. “Mozilla asking their users to pool information in order to power open-sourced AI initiatives,” reported James Vincent from The Verge. “The company’s first project is called Common Voice, where they ask volunteers to donate vocal samples to build an open-source voice recognition system like the ones powering Siri and Alexa.” Vincent said that currently, anyone can go to the Common Voice website and contribute to its sample sentences by reading some texts. “They can also supply biographical information like
“Outsourcing Innovation and Ideas:
•
Simperl, Elena.
Effectively:
2014 campaign, with 263,668 burn scars
Guidelines and
tagged between June and November,” she
Examples”. LIBER
added.
Quarterly, 25(1),
Another example of a successful
pp.18–39.
crowdsourcing in Indonesia is the
•
Topsfield, Jewel.
social crowdfunding site, Kitabisa.com.
October 17, 2015.
Launched in 2013, the site is focusing on
“Crowdsourcing
crowdfunding for various social causes. It
‘nodders’ help spot illegal fires
verifies each project before being published
in Indonesia”. The
to the public and requires the initiator to
Sydney Morning
send financial and ongoing status reports
Herald.
regularly.
•
Vincent, James. July 27, 2017. “Mozilla
According to Nadine Freischlad from
is crowdsourcing
Techinasia.com, Kitabisa’s monetization
voice recognition to
strategy is to take a five percent cut from
make AI work for the
successfully funded projects. “The site
people”. The Verge.
now presents Momentum Pergerakan SaveMaster as its largest success story, which collected a total of IDR 137 million (US$10,600) to help save a school building which was supposed to be torn down,” said her.
IPMI BUSINESS REVIEW 51
Co-working Space: An Alternative for Startup Companies
Harvard Business Review researchers – Bacevice, Garret, and Spreitzer – conducted interviews in 2015 on co-working space founders and managers, as well as surveyed hundreds of workers who are using co-working spaces around the U.S. They concluded there are three main reasons why startup companies and freelancers are geared into the concept:
52 IPMI BUSINESS REVIEW
First, being recognized by others for their work not only infuses a sense of pride, but also makes them realize how interesting and important their job is. “Working amidst people doing different kinds of work can make one’s own work identity stronger. Our respondents were given the opportunity to frequently describe what they do, which can make what they do seem more interesting and distinctive,” reported them. This,
eventually, increase their work passion and productivity. Second, having a 24/7 accessible place gives them more power to control their own work-life balance. “People can decide whether to put in a long day when they have a deadline or want to show progress, or can decide to take a long break in the middle of the day to go to the gym. They can choose whether they want to work in a quiet
Figure 3: Kedasi Source: www.whatsnewjakarta. com
space so they can focus, or in a more collaborative space with shared tables where interaction is encouraged.” And third, the shared working space gives people a sense of belonging, makes them feel that they are part of a community. “Connections with others are a big reason why people pay to work in a communal space, as opposed to working from home for free or renting a nondescript office. Each co-working space has its own vibe, and the managers of each space go to great lengths to cultivate a unique experience that meets the needs of their respective members.” According to real estate firm Cushman & Wakefield and association CoreNet Global, as quoted from CNBC
journalist Uptin Saiidi, the demand for co-working spaces in Asia is expected to grow 10 to 15 percent annually. Saiidi attributed three growth drivers behind the coworking sector’s fast expansion: continued growth of startup culture, a more flexible globalized workforce being fueled by technology, and of course, the Millennials. “Millennials are embracing and demanding facets of the sharing and experience economy,” he added.
Jakarta is following other cities in Asia in providing co-working spaces for freelancers, startup companies, institutions, organizations, and even major companies. EV Hive, for instance, was launched in June 2015. The place offers an affordable, convenient, and professional co-working place with a one price solution for all working necessities: meeting rooms, fiberoptic internet, printing services and free flow gourmet coffee. Within a 250 square meters space, EV Hive offers two types of spaces: private space and shared space. Private space is made for startup companies with a capacity of ten persons, while the shared space has wider area including indoor and
outdoor segments. In 2017, EV Hive is already operating in four locations: The Breeze in BSD City Tangerang, D.Lab in Menteng, The Maja in Kebayoran Baru, and JSC Hive in Karet Kuningan. The latest co-working space in Jakarta, GoWork, is located in UOB Plaza. Officially launched on March 2017, GoWork proud itself as the only co-working space located in Grade A office building. The place offers adjustable working packages, from daily to annual rent. It currently has 18 private spaces of various sizes, from small room of 1-3 persons to larger room up to 10 persons. Another co-working space, Kedasi, is located in Slipi, West Jakarta, an area where a number of local start-ups are based, earning it the nickname “Slipicon Valley”. The place is only 15 minutes away from Sudirman, Senayan, Kuningan, and Gatot Subroto. Its area consists of 1 main dedicated space with 18 hot desks, 1 smaller dedicated space kecil with 8 hot desks, 2 private offices for those who want better privacy, 1 meeting room, and 1 game room. Even Indonesian biggest telecommunication provider, Telkom, also build co-working spaces in Jakarta, Bandung, and Jogja. It aims to boost the growth of technologybased startup companies and developers while help bridging them with their market segments. In Jakarta, Jakarta Digital Valley was launched in November 2014 with a capacity of 50 persons.
IPMI BUSINESS REVIEW 53
Lessons Learned from First Travel Case The number of victims from the First Travel’s alleged scam continued to increase as those people gradually submit their reports to the police’s Criminal Investigation Department (Bareskrim) office. Couples who became suspects for the crime were charged for alleged fraud and embezzlement of tens of thousands of pilgrims while their company, First Travel, is unable to return the pilgrims’ money. The case teach us important lessons to learn.
As reported by The Jakarta Post on August 22, 2017, thirty-one savings account passbooks were also seized by the investigators and they have asked the Financial Transaction Reports and Analysis Centre (PPATK) to investigate the flow of funds from the accounts. “We also seized more than 14,000 pilgrims’ passports,” said the Head of Bareskrim, Brig. Gen. Herry Rudolf Nahak. According to the news reported by On March 2017, the Ministry of
For the next four months, mediations
Barus and Putra from Industry.co.id, PT
Religious Affairs was alerted about
were held with related parties without
First Anugerah Karya Wisata – officially
the delayed departure of more than
any clear solution. Then on August 3,
known as First Travel – offers lower
600 pilgrims from East Java. Pilgrims
2017, the Ministry of Religious Affairs
price ‘Umrah packages through its
have stayed in hotel in Jakarta for four
decided to revoke First Travel’s license.
agents. From the police investigation,
days without clear information on
The police then seized their assets
it was found that the perpetrators
when they will depart to Mecca, Saudi
and named First Travel bosses, Andika
have recruited 1,000 agents who
Arabia, for ‘Umrah (minor Hajj – Islamic
Surachman and Anniesa Desvitasari
are actively looking for prospective
pilgrimage). The alert brought up First
Hasibuan, as suspects for alleged
pilgrims. More than 70,000 candidate
Travel as their travel agency.
money laundry case.
pilgrims have paid the ‘Umrah fee, but
54 IPMI BUSINESS REVIEW
only half of them dispatched. Police estimated the losses of
References:
more than Rp550 billion, in which the company has not able
Khoiriyah, Ruisa. August 21, 2017. “5 Pelajaran Finansial Penting dari Kasus First Travel”. HaloMoney.co.id.
to return the funds.
Certified financial planner, Ruisa Khoiriyah, said there are
Editorial Team. August 10, 2017. “Kronologi Tumbangnya First Travel”. Kumparan. com.
five financial lessons from the terrible case: 1.
If the price is too cheap to be true, it probably is
First Travel fraud people through a very low price ‘Umrah News Desk. August 22, 2017. “Police seize First Travel owners’ assets”. The Jakarta Post.
package. Their promotional package cost Rp14 million, significantly lower than the minimum standard of ‘Umrah cost of Rp22 million set by the Ministry of Religious Affairs. In addition, the agency required their victims to pay in advance of at least a year period. This is in contrast with other agencies who are able to process the trip in two weeks.
unnecessary personal assets. Financial management is the key to financial welfare. Having a great income should open up opportunities to a more
A cheaper price is a great bargain, indeed. But when the
sustainable welfare, such as through
price is too low, this is when you need to raise the red flag.
new business investments.
It is not something to be interested in, but to be questioned instead. Or better, be avoided. 2.
Instant wealth tends to disappear in an instant
4.
Barus, H. and Putra, AB. August 15, 2017. “First Travel Case Suspects Calls for Suspension of Detention”. Industry. co.id.
Don’t mix leisure with financial investment
In any investment, look at the total
Andika Surachman used to share his past story when
return from income and capital
he worked as a shop keeper and was very poor. Anniesa
growth after tax. Do not mix
Hasibuan added with another story where they are too poor
your personal cost with financial
to buy food, so they always have instant noodle as their
investment nor deduct your leisure
meal. After they build the First Travel in 2011, their lifestyle
cost from yield, as yields are half
changed drastically. Too drastic, actually.
what interest costs are. Manage your lifestyle separately from your
They build a luxurious home in Sentul, Bogor. They travelled
business, unless your leisure is your
around the world, again, luxuriously. In addition, Hasibuan
business.
started a career as a high class designer and showcase her creation through fashion shows around the world. She also
5.
Some businesses unethically
liked to showcase their lifestyle, where she post pictures of
pursue temporary profits
themselves wearing fancy designer items. When the media
without considering the long-
published their case, the public found out that the couple
term impact of their actions.
still have debts to their business partners and travel agents. When police seized their bank accounts, there’s only Rp3 million left in those accounts. 3.
Uncontrolled finance lead to overspending
They pose a threat to their employees, customers, business partners, communities and even their own wealth. Unethical business endangers the sustainability of any company,
Financial Transaction Reporting and Analysis (PPATK)
jeopardizes their customers, and
revealed that the pilgrims’ funds at First Travel were not
negatively affecting the whole
only used for pilgrimage business, but also to purchase
business environment.
IPMI BUSINESS REVIEW 55
56 IPMI BUSINESS REVIEW