Solar cell is one of the answer....

1. Tap Into New Markets and Ride New Waves
with Solar Cell
RACHMADI GUSTRIAN
Integrated Risk Management

2. Agenda
1. Current Conditions
2. A Contribution That We Can Give
3. Blue Ocean Strategy
4. Added Value That We Can CREATE
5. Take Aways

3. Agenda
1. Current Conditions
2. A Contribution That We Can Give
3. Blue Ocean Strategy
4. Added Value That We Can CREATE
5. Take Aways

4. A Glance at the current condition of PLN
Demand >> Supply = Defisit & Blackouts
In the last 5 years, electricity demand
increased by 7 % per year. Whilst Composition of PLN Power Plants
power plant and distribusion network
grew only 1,4 % and 1,7 %
respectively.
Blackouts occures intensively.
Electricity price will increase gradually
due to gasoline and coal price effect
and also align with the government’s
program to reduce subsidized.
In 2010, tariff went up 10% and will
be increase for another 15% in 2011.

5. Climate Change as an Early Warning Signal.........
Lethal Disease More Huricanes Heat Waves
More Floods Starvation Polar Ice Melts

6. Agenda
1. Current Conditions
2. A Contribution That We Can Give
3. Blue Ocean Strategy
4. Value Added That We Can CREATE
5. Take Aways

7. A Blink.......
ECONOMIC: SOCIAL:
- More tax incentive to - Go Green Trends
the green companies. - Global Warming Issues
- Concern about high quality
certification (ISO 9001)*. S - Eco-friendly Communities
- Environment conservancy
- Concern about eco friendly Campaigns.
certification (ISO 14001)*. - Affluent and mass afluent
E Solar cell implementations
is the Enabler Factor
community as a pioneer
customer.
- New investment product i.e to ride the incoming wave - Multi National Companies are
carbon credit, eco friendly willing to do business with eco -
soft loan program.
and to tap a new market
friendly companies only.
- May contribute to real sector
and generate GDP. TECHNOLOGY:
- Manufactured in local industry
T -
-
Minimum maintenance needed
Compact and easy to install.
- Polution free
- Durable and reliable
Source: Cagan, J. and Vogel, C.M. (2002),
Note: *. There are more than 400 companies Creating Breakthrough Products
registered for each certifications

8. Using Solar Cell to Support Eco Friendly Programme
Appoint Kalimantan and Sulawesi
C class branches as the pilot project.
As the most severe blackouts area
(cause intense service interuption).
Also bad PLN power supply and
distribution network.
Utilize our local manufacturers.
Long period of usage (more than
20 years).

9. Implementations Plan
Appoint Kalimantan and Sulawesi branches as the pilot project in order
to help them solve the service interuption due to regular power
blackouts. Implement it into 20’s of our C class branches gradually
With 10 KVA for each branch, it will cover computers, printers, lights,
ACs and a counting machine. Enough to replace half of PLN supply,
which can reduce more than 50% of electricity bill, reduce UPS
and generator invesments and its operational expenses as well.
Feasible investment, it costs between IDR 5400 up to IDR 9000 per VA
(Watt) depends on manufacturer.
Payback Period will be less than 8 years.
Maintenance expenses are very low.

10. Agenda
1. Current Conditions
2. A Contribution That We Can Give
3. Blue Ocean Strategy
4. Added Value That We Can CREATE
5. Take Aways

11. The Journey to the Blue Ocean
Demand Curve Value Innovation
Sales
Price
Innovation creates more demand. Value innovation is the simultaneous pursuit
Innovation creates new perspective of differentiation and low cost.
in the old industry.
Creates higher sales in premium Value innovation focuses on making the
price means better profitability. competition irrelevant
Source : Wiley, Doyle (Value Based Marketing)
Kim & Mauborgne, 1997

12. When the Red Arrives to the Blue
Compete in existing market space Create uncontested market space
Beat the competition Make the competition irrelevant
Differentiation or low cost Differentiation and low cost
Competitive Advantage Value Innovation
Segment existing customers Attract noncustomers
Exploit existing demand Create and capture new demand
Source : Kim & Mauborgne, 1997

13. As Is Strategy Canvas
HI
Top 5 competitors
Bank CIMB Niaga
offering level
LO
Service Generator and UPS
Electricity Tariff Eco friendly contribution Branding Strategy
Interuptions investment
Impact
GassolineTariff Electric Supply CSR
Electric Bills Activities
Impact Independency
Source : Kim & Mauborgne, 2006

14. Value Alignment combined with 6 path analysis
Buyer Seller
Transactional Relationship
Relationship
BLUE OCEAN
Integrated
Service
Community, Functional to
Wealth Emotional
Customization
Management
Cohesiveness
Time /
Orientation
Trend
Commoditization
E-Channel,
Customization Payment
Agent
Saving Commoditization RED OCEAN
Account Competition
Stand Price and Mass
Alone Distribution
Centricity
Product/ Customer
Services
Source : Wiley, Doyle (Value Based Marketing)
Prof. Agus W. Soehadi, PhD
Kim & Mauborgne, 1997

15. To be Strategy Canvas: making the competition irrelevant…….
Eliminate Reduce Raise Create and Boost
HI
offering level
Top 5 competitors
Bank CIMB Niaga
LO
Service Electric Tariff Generator and Eco friendly Branding Cooperate New New Tap new
Interuptions Impact UPS investment contribution Strategy with Corporate advertising target
Governments Image themes market
Electric GassolineTariff Electric Supply CSR Cooperate Colaborate New Inculcate
Bills Impact Independency Activities with with Promotional customer
International International Program mind
Organizations Communities
Source : Kim & Mauborgne, 2006

16. Increase Value Perceived by customer to get Superior Customer Value
Superior Customer Value is something that we
Perceived
Price must pursue in order to make our premium
Perceived
Price
price/rate acceptable.
Customer
Value Perceived
RED Value
by customer
OCEAN
Firm Value
BLUE
OCEAN
Brand Value
by customer
Network Value
Price Paid
Perceived
Benefit Cost
Perceived
Benefit
Source : Wiley, Doyle (Value Based Marketing)
Prof. Agus W. Soehadi, PhD

17. Agenda
1. Current Conditions
2. A Contribution That We Can Give
3. Blue Ocean Strategy
4. Added Value That We Can CREATE
5. Take Aways

18. Creating Superior Customer Value
MARKET ORIENTATION
Customer Competitor
Coordination
Orientation Orientation
MARKET BASED ASSET
BRAND CUSTOMER
SUPERIOR CUSTOMER VALUE
Perceived Perceived
Quality Risk
Attract New Retain Existing
Customer New Business
Customer
MARKET ORIENTATION
Faster Higher Longer
Source : Wiley, Doyle (Value Based Marketing)
Prof. Agus W. Soehadi, PhD

19. Generic Strategy
STRATEGIC ADVANTAGE
UNIQUENESS LOW COST POSITION
STRATEGIC TARGET
INDUSTRY
WIDE OVERALL
DIFFERENTIATION COST LEADERSHIP
PARTICULAR FOCUS FOCUS
SEGMENT DIFFERENTIATION COST LEADERSHIP
ONLY
In order to make an irrelevant competition, we have to make a differentiation(s) to
increase value perceived by customer higher than price paid by customer.
Source : Generic Strategy (Porter, 1980)

20. Colaborate and Co-operate with so many parties to increase our
brand awareness and recognition..........
Together we CAN
reduce CO2
productions
significantly.
Joint program with:
Indonesia Malaysia Singapore Thailand

21. Capture Affluent and mass Affluent Customers
Indonesia Malaysia Singapore Thailand
You are in the right
place to finance
your hybrid car.
You are in the right
place to finance
Indonesia Malaysia Singapore Thailand your green house.

22. Agenda
1. Current Conditions
2. A Contribution That We Can Give
3. Blue Ocean Strategy
4. Added Value That We Can CREATE
5. Take Aways

23. Green Office dreams come to reality and even more.....
By implementing solar cell, management will increase Share Holder Value **
and create competitive advantages, such as:
1. Perfect “time to market”; it is a key to win.
2. Reduce electricity related expenses significantly and increase electricity
supply independency.
3. Increase corporate image with solid positioning strategy as an eco-friendly
company (elaborate with the existing conservancy program).
4. Strengthen the resonance of this program by utilizing the CIMB Group’s
regional network channel up to its maximum level.
5. Opportunities to arrange joint program with governments, international
organizations and international communities who focused on environmental
conservancy to boost CIMB brand awareness and recognition.
6. Create Superior Customer Value by increasing Value Perceived by current
and potential Customers.
7. Capture affluent and mass affluent market with emotional approaches.
Note:
**. Numbers will be provided upon request.

24. Implementing CIMB Niaga Strategies in Blue Ocean ways
Target Achieved
Enhance overall brand recognition of Bank CIMB Niaga
in the Indonesian market place
To implement the Forward Banking strategy
To cater Affluent and Mass Affluent customers
To leverage on synergy opportunities provided by CIMB
Group
To optimize the branch network to serve target markets
To explore opportunities along value chains
Source : CIMB Niaga Annual Report, 2009

25. Charles Darwin :
It is not the strongest species that survive,
survive,
Nor the most intelligent,
But the one most responsive to change.
change.

26. Thank You

27. Capture New Corporate and Business Customer
We are here to support you to achieve We are here to support you to achieve
your goals. your goals.
To become a prime eco–friendly To become an eco–friendly
Fortune 500 company. businessman.

28. Leveraging Corporate Image
Together we can make
a better world for our
grand children.
Joint program with:

29. Leveraging Corporate Brand Image
Together we CAN
make an improvement.
Joint Program with:

30. Inculcate and Educate Customer and Potential Customer mindset
Our Small Contribution to
stop the devastating
effects of global warming.
Joint program with:

31. High Impact Corporate Branding
We produce not less than 200 Together we CAN influence
KVA solar energy to generate more individual and
power for our branches. companies to save our earth
Joint program with:

32. The Difficulty and Costs of Change
Costs
Least
Most difficult
to get going
Anticipatory Change
Moderate
Costs
Difficult
to get going
Reactive Change
Most Costs
Easiest
to get going
Crisis Change

33. Charles Darwin :
It is not the strongest species that survive,
survive,
Nor the most intelligent,
But the one most responsive to change.
change.