DEMYSTIFYING DIGITAL DISRUPTION
May 09th, 2016
@theVENUE
18 Office Park 15th floor, TB Simatupang, Jakarta
DIGITAL TALK Episode 2
Brilliant Digital Academy proudly present:
Speakers
Lyra Puspa
CEO & Founder
Brilliant Digital Academy
@Lyra_Puspa
Bari Arijono
Ketua Umum ADEI
(Asosiasi Digital
Entrepreneur Indonesia)
@Bari_Arjon
Angky Yan Pramudya
Head of Marketing
Blanja.com
@ankiyan
Go Social!
https://www.facebook.com/brilliantdigital/
https://twitter.com/brilliantdgtal
Brilliant Digital
Brilliant Digital Academy
Today session is being recorded. I know what you’re thinking. Don’t worry. We will give you the URL to
access the entire video. Simply just send an email to info@brilliantdigital.co.idwith subject
“I WANT THIS RECORDED!”
We will give you what you want, and of course, the presentation slides as a token (you’re welcome).
Try to get relax, like we know you’re going to, and enjoy the session ...
Regards,
The man behind the camera
Round 2: Be a disruptor, don’t be disrupted!
By Bari Arijono
Round 1: Disruptor’s mind. Revealed.
By Angky Yan Pramudya
Round 3: Digital Talk Wrap Up
By Lyra Puspa
Agenda
Say what?
“A disruptive innovation is an innovation
that creates a new market and value
network and eventually disrupts an existing
market and value network, displacing
established market leaders and alliances”
1995
Clayton M. Christensen
Professor of Business Administration at the Harvard Business School (HBS), having a joint appointment in the Technology &
Operations Management and General Management faculty groups. Christensen is also a co-founder of Rose Park Advisors, a
venture capital firm, and Innosight Ventures, a management consulting and investment firm specializing in innovation.
First thing first, meet the man who first coined
the beginning term
Performance
Time
Welcome to the Fourth Industrial Revolution!
EE Times Europe: Realizing Industry 4.0: Essential System Considerations, 2014
39 %
43 %
47 %
50 %
51 %
52 %
52 %
53 %
57 %
57 %
61 %
64 %
72 %
0 10 20 30 40 50 60 70 80
Industrial
Asset wealth management
Health care
Education
Business & professional services
Non Profit
Consumer products
Insurance
Technology
Retail
Consumer financial services
Telecom
Media
Executives Who Anticipate Moderate or Massive Digital Disruption
in the Next 12 Months, by Industry
(Source: “Digital Pulse “2015 by Russell Reynolds Associates)
Not a warm welcome, to be honest …
The Digital Disruption has Already Happened
World’s largest taxi company owns no taxis (Uber, Grab)
The Digital Disruption has Already Happened
Largest accomodation provider owns no real estate (Airbnb)
The Digital Disruption has Already Happened
 Largest phone companies own no telco infra (Skype, WeChat)
The Digital Disruption has Already Happened
World’s largest movie house owns no cinemas (Netflix)
Digital Disruption?
Easy. I’m gonna make
them a product
they can’t
REFUSE.
Round 2: Disruptor’s mind. Revealed.
By Angky Yan Pramudya
Round 1: Be a disruptor, don’t be disrupted!
By Bari Arijono
Round 3: Digital Talk Wrap Up
By Lyra Puspa
FUTURE OPPORTUNITY
BARI ARIJONO
KETUA UMUM
Let me introduce
who am i
Foreword
We are in the midst of a major technology revolution—
specifically a digital revolution—with digital now dominating
every sector of the economy. And we are seeing an important
new shift as the technology revolution begins to put people
first. To put it simply, as businesses become digital, their
people and cultures must become digital, too.
Platforms’ Shared of Mobile Web
Based on @platform ‘s shared of total global mobile web page requests
Active Users by Social Platform
In million
Active E-Commerce Shopper
% of national population who bought online
Indonesia#25 with 27%
What should we DO
• Transform your Business (DX)
• Built Digital Business for Change (DB)
• Data Driven first (DT)
• Disrupted is a must (DS)
• Digital Risk awareness (DR)
WIN LOCALLY
GO GLOBAL
Why do you need DX
To understand how the Digital Technology of
Cloud, Mobile, Social, and Big Data are affecting businesses
 Mobile is enabling new business scenarios
 Cloud computing is driving business agility
 Big data is helping companies innovate
 Social channels are transforming core business processes
Digital transformation is occurring rapidly at a majority of public
and private sector organizations.
Biggest Impact of DT
 Improving customer service 53%
 Increasing productivity 52%
 Developing new services 50%
 Business models 42%
 Products 41%
 Increasing revenues 40%
Forecast to grow significantly
 increasing revenues
 developing new business models
 improving market share
with a strong vision and mature processes for digital
transformation were more profitable on average, had higher
revenues, and achieved a bigger market valuation than
competitors.
The business is digital, so the organization, its
people and its culture must now become digital too
DB Culture Shock
This global digital economy accounted for 22
percent of the world’s economy in 2015. And
it’s rapidly growing, as we forecast those
numbers to increase to 25 percent by 2020, up
from 15 percent in 2005.
Digital Means People too
Collaboration Companies no longer just serve customer
Coopetition No longer just compete with rivals
Sinergy No longer limited by industry boundaries
Winners will create corporate cultures where technology empowers
people to evolve, adapt, and drive change. The mantra for success
is “PEOPLE FIRST”
Key Take Away
• Penjualan online Indonesia mencapai USD 1,1 miliar, lebih tinggi dari
Thailand dan Singapura.
• Penjualan e-commerce di Indonesia hanya menyumbang 0,07% dari
total perdagangan retail
• Rata-rata pertumbuhan tahunan (CAGR) penjualan online di
Indonesia selama 2014-2017 sebesar 38%,
• Indonesia sebagai raja e-commerce ASEAN
• tumbuhnya pengguna internet yang mencapai 88,1 juta. 100 juta di akhir
2016
• pengguna sosial media 79 juta
• jumlah penduduk 259.1 juta jiwa
BARI ARIJONO
Bari Arijono
ketum@adei.id
08128899646
www.adei.id
THANK YOU
Round 2: Disruptor’s mind. Revealed.
By Angky Yan Pramudya
Round 1: Be a disruptor, don’t be disrupted!
By Bari Arijono
Round 3: Digital Talk Wrap Up
By Lyra Puspa
E-commerce Opportunities
In Indonesia
Disruptive Innovations
Angky Yan Pramudya
Head of Marketing at Blanja.com
What is disruptive Innovations1
Key Conclusions : Where does E-Commerce go from here?
Five disruptive forces
Segment Analysis
2
3
4
Disruptive Innovations – E-Commerce
Topics :
5
Indonesia’s EC Market Share
Where does E-Commerce go
from here?
Key Conclusions
What is Disruptive Innovations
Disruptive Innovations – E-Commerce
A disruptive innovations is an innovations that helps create a new market and value network, and eventually disrupts
an existing market and value network (over a few years or decades), displacing an earlier technology . The terms is
improve a product or services in ways that market does not expected, typically first by designing for a different set of
consumers in a new market and later by lowering prices in the existing market. (Wikipedia)
• Disruptive innovations is NOT the same as innovations, in general.
• Very often, No new technology is involved, but could be technology based.
• Could be, and very often is, based on disruptive, new business model
• The business model changes the economics of the entire industry segment
• It disrupts the business structure of that industry segments
• Improvement in the prevailing solution exceed mainstream needs
• Over time, the disruptive innovations
• Improves in performance – exceeds that of the previous prevailing solutions
• Meets the needs of mainstream customers better than the previous solutions
E-Commerce still has a long runway for growth
E-Commerce share of total retail sales in Indonesia
Retail sales disruption is a trend that may actually
accelerate over the next five years in Indonesia
E-Commerce sales could surpass $11 Billion by 2018
For legacy services, there is both good news and bad
news, depending on the defensible nature of product
E-Commerce Opportunity is Large
Population
Digital
Buyer
eMarketer; InsideRetail Hong Kong; Morgan Stanley
252 M 255 M 258 M 262 M 265 M 269 M
14 M 22 M 30 M 40 M 50 M 61 M
Where does E-Commerce go
from here?
Key Conclusions
Key Conclusions : Where Does E-Commerce Go From Here?
Some categories remain resistant to change
• In the long-term, scale wins, and the right fulfilment infrastructure is the
means to achieve scale.
• Nation-wide fulfilment networks are highly capital intensive and
represent a material barrier for competition
• Some legacy services are either building their own fulfilment centers, or
leveraging retail store to fulfil orders.
Fulfilment investment drive shipping cost savings
Lazada, Blibli & Mataharimall may continue leveraging shipping costs as it
improves last mile logistics
Key Conclusions : Where Does E-Commerce Go From Here?
Fulfillment infrastructure is critical
Fashion, Gadget & Electronics have the highest online
penetrations, with books at the lowest
• Branded fashion & beauty retailers appear relatively impervious to E-
Commerce disruption
• Fashion companies, such as Delami brand, control both manufacturing
and distribution of their products, are also insulted
Tech in Asia; MarkPlus; Marketeers
Key Conclusions : Where Does E-Commerce Go From Here?
Mobile E-Commerce : A Promising opportunity
Key Conclusions : Where Does E-Commerce Go From Here?
Third-party marketplaces can prosper
Tech in Asia; MarkPlus; Marketeers
• 3P Marketplaces allow an infinitely scalable selection of merchandise
• 3P can either be stand alone business (Blanja, Tokopedia, Bukalapak) or
complementary business (Lazada, Elevania)
• The success of 1P vs 3P varies by customers segmentation
• Mobile sales can offer customers additional convenience, and be
incremental in nature
• Simple yet sophisticated apps are important
• Mobile also benefits legacy services by offering services clerks more real
time information's
Online devices most frequently
used for online shopping
Mobile phone internet users
penetration
Five disruptive forces
There are five disruptive forces in E-Commerce
Price
Consumers like to buy
products at the lowest
price possible
Selection Cost StructureConvenience Distribution
No Constraint of Shelf
Space
EC Offers accelerated
delivery programs and
mobile shopping
Merchants can easily
initiate nation-wide
distribution
At scale, EC benefits
from sales marketing
efficiency
Segment Analysis
Summary of Key Takeaways
E-Commerce in Indonesia
E-Commerce needs to close the “trust” Gap
1
2
3
4
5
Over the next five years, payment, logistics and fulfilment innovation should determine the level
of disruption of traditional retail.
Structural and socioeconomic demographics determine the company-specific strategy an E-Commerce
retailer will have to lead with in a specific market; in Indonesia, fulfilment is crucial (for 1P or B2C)
Investments that improve an E-Commerce retailer’s ability to offer low prices, broad selection and increased
convenience will likely lead to higher sales growth, albeit at a potentially lower margin
Pursuit of “value” and “convenience” is universal motivations that continues to drive E-Commerce
Thank you!
“it’s still Day One” for E-Commerce in Indonesia
Q&A Session
Round 2: Disruptor’s mind. Revealed.
By Angky Yan Pramudya
Round 1: Be a disruptor, don’t be disrupted!
By Bari Arijono
Round 3: Digital Talk Wrap Up
By Lyra Puspa
Disruption is not about doing BETTER, it’s about
doing it DIFFERENTLY
Disruption is not about DIFFERENTIATION, it’s
about CREATING NEW
Disruptors makes the established leader NOT
WORSE, just IRRELEVANT
Disrupt yourself first, then disrupt the world!
STEVE JOBS
Macintosh
Apple II
Thanks.

Brilliant Digital Talk : Demystifying Digital Disruption

  • 1.
    DEMYSTIFYING DIGITAL DISRUPTION May09th, 2016 @theVENUE 18 Office Park 15th floor, TB Simatupang, Jakarta DIGITAL TALK Episode 2 Brilliant Digital Academy proudly present:
  • 2.
    Speakers Lyra Puspa CEO &Founder Brilliant Digital Academy @Lyra_Puspa Bari Arijono Ketua Umum ADEI (Asosiasi Digital Entrepreneur Indonesia) @Bari_Arjon Angky Yan Pramudya Head of Marketing Blanja.com @ankiyan
  • 3.
  • 4.
    Today session isbeing recorded. I know what you’re thinking. Don’t worry. We will give you the URL to access the entire video. Simply just send an email to info@brilliantdigital.co.idwith subject “I WANT THIS RECORDED!” We will give you what you want, and of course, the presentation slides as a token (you’re welcome). Try to get relax, like we know you’re going to, and enjoy the session ... Regards, The man behind the camera
  • 5.
    Round 2: Bea disruptor, don’t be disrupted! By Bari Arijono Round 1: Disruptor’s mind. Revealed. By Angky Yan Pramudya Round 3: Digital Talk Wrap Up By Lyra Puspa Agenda
  • 6.
  • 7.
    “A disruptive innovationis an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market leaders and alliances” 1995 Clayton M. Christensen Professor of Business Administration at the Harvard Business School (HBS), having a joint appointment in the Technology & Operations Management and General Management faculty groups. Christensen is also a co-founder of Rose Park Advisors, a venture capital firm, and Innosight Ventures, a management consulting and investment firm specializing in innovation. First thing first, meet the man who first coined the beginning term
  • 8.
  • 10.
    Welcome to theFourth Industrial Revolution! EE Times Europe: Realizing Industry 4.0: Essential System Considerations, 2014
  • 11.
    39 % 43 % 47% 50 % 51 % 52 % 52 % 53 % 57 % 57 % 61 % 64 % 72 % 0 10 20 30 40 50 60 70 80 Industrial Asset wealth management Health care Education Business & professional services Non Profit Consumer products Insurance Technology Retail Consumer financial services Telecom Media Executives Who Anticipate Moderate or Massive Digital Disruption in the Next 12 Months, by Industry (Source: “Digital Pulse “2015 by Russell Reynolds Associates) Not a warm welcome, to be honest …
  • 12.
    The Digital Disruptionhas Already Happened World’s largest taxi company owns no taxis (Uber, Grab)
  • 13.
    The Digital Disruptionhas Already Happened Largest accomodation provider owns no real estate (Airbnb)
  • 14.
    The Digital Disruptionhas Already Happened  Largest phone companies own no telco infra (Skype, WeChat)
  • 15.
    The Digital Disruptionhas Already Happened World’s largest movie house owns no cinemas (Netflix)
  • 16.
    Digital Disruption? Easy. I’mgonna make them a product they can’t REFUSE.
  • 17.
    Round 2: Disruptor’smind. Revealed. By Angky Yan Pramudya Round 1: Be a disruptor, don’t be disrupted! By Bari Arijono Round 3: Digital Talk Wrap Up By Lyra Puspa
  • 18.
  • 19.
  • 20.
    Foreword We are inthe midst of a major technology revolution— specifically a digital revolution—with digital now dominating every sector of the economy. And we are seeing an important new shift as the technology revolution begins to put people first. To put it simply, as businesses become digital, their people and cultures must become digital, too.
  • 21.
    Platforms’ Shared ofMobile Web Based on @platform ‘s shared of total global mobile web page requests
  • 22.
    Active Users bySocial Platform In million
  • 23.
    Active E-Commerce Shopper %of national population who bought online Indonesia#25 with 27%
  • 24.
    What should weDO • Transform your Business (DX) • Built Digital Business for Change (DB) • Data Driven first (DT) • Disrupted is a must (DS) • Digital Risk awareness (DR) WIN LOCALLY GO GLOBAL
  • 25.
    Why do youneed DX To understand how the Digital Technology of Cloud, Mobile, Social, and Big Data are affecting businesses  Mobile is enabling new business scenarios  Cloud computing is driving business agility  Big data is helping companies innovate  Social channels are transforming core business processes Digital transformation is occurring rapidly at a majority of public and private sector organizations.
  • 26.
    Biggest Impact ofDT  Improving customer service 53%  Increasing productivity 52%  Developing new services 50%  Business models 42%  Products 41%  Increasing revenues 40% Forecast to grow significantly  increasing revenues  developing new business models  improving market share with a strong vision and mature processes for digital transformation were more profitable on average, had higher revenues, and achieved a bigger market valuation than competitors.
  • 27.
    The business isdigital, so the organization, its people and its culture must now become digital too DB Culture Shock This global digital economy accounted for 22 percent of the world’s economy in 2015. And it’s rapidly growing, as we forecast those numbers to increase to 25 percent by 2020, up from 15 percent in 2005.
  • 28.
    Digital Means Peopletoo Collaboration Companies no longer just serve customer Coopetition No longer just compete with rivals Sinergy No longer limited by industry boundaries Winners will create corporate cultures where technology empowers people to evolve, adapt, and drive change. The mantra for success is “PEOPLE FIRST”
  • 40.
    Key Take Away •Penjualan online Indonesia mencapai USD 1,1 miliar, lebih tinggi dari Thailand dan Singapura. • Penjualan e-commerce di Indonesia hanya menyumbang 0,07% dari total perdagangan retail • Rata-rata pertumbuhan tahunan (CAGR) penjualan online di Indonesia selama 2014-2017 sebesar 38%, • Indonesia sebagai raja e-commerce ASEAN • tumbuhnya pengguna internet yang mencapai 88,1 juta. 100 juta di akhir 2016 • pengguna sosial media 79 juta • jumlah penduduk 259.1 juta jiwa
  • 41.
  • 42.
    Round 2: Disruptor’smind. Revealed. By Angky Yan Pramudya Round 1: Be a disruptor, don’t be disrupted! By Bari Arijono Round 3: Digital Talk Wrap Up By Lyra Puspa
  • 43.
    E-commerce Opportunities In Indonesia DisruptiveInnovations Angky Yan Pramudya Head of Marketing at Blanja.com
  • 44.
    What is disruptiveInnovations1 Key Conclusions : Where does E-Commerce go from here? Five disruptive forces Segment Analysis 2 3 4 Disruptive Innovations – E-Commerce Topics : 5 Indonesia’s EC Market Share
  • 45.
    Where does E-Commercego from here? Key Conclusions
  • 46.
    What is DisruptiveInnovations Disruptive Innovations – E-Commerce A disruptive innovations is an innovations that helps create a new market and value network, and eventually disrupts an existing market and value network (over a few years or decades), displacing an earlier technology . The terms is improve a product or services in ways that market does not expected, typically first by designing for a different set of consumers in a new market and later by lowering prices in the existing market. (Wikipedia) • Disruptive innovations is NOT the same as innovations, in general. • Very often, No new technology is involved, but could be technology based. • Could be, and very often is, based on disruptive, new business model • The business model changes the economics of the entire industry segment • It disrupts the business structure of that industry segments • Improvement in the prevailing solution exceed mainstream needs • Over time, the disruptive innovations • Improves in performance – exceeds that of the previous prevailing solutions • Meets the needs of mainstream customers better than the previous solutions
  • 47.
    E-Commerce still hasa long runway for growth E-Commerce share of total retail sales in Indonesia Retail sales disruption is a trend that may actually accelerate over the next five years in Indonesia E-Commerce sales could surpass $11 Billion by 2018 For legacy services, there is both good news and bad news, depending on the defensible nature of product E-Commerce Opportunity is Large Population Digital Buyer eMarketer; InsideRetail Hong Kong; Morgan Stanley 252 M 255 M 258 M 262 M 265 M 269 M 14 M 22 M 30 M 40 M 50 M 61 M
  • 48.
    Where does E-Commercego from here? Key Conclusions
  • 49.
    Key Conclusions :Where Does E-Commerce Go From Here? Some categories remain resistant to change • In the long-term, scale wins, and the right fulfilment infrastructure is the means to achieve scale. • Nation-wide fulfilment networks are highly capital intensive and represent a material barrier for competition • Some legacy services are either building their own fulfilment centers, or leveraging retail store to fulfil orders. Fulfilment investment drive shipping cost savings Lazada, Blibli & Mataharimall may continue leveraging shipping costs as it improves last mile logistics Key Conclusions : Where Does E-Commerce Go From Here? Fulfillment infrastructure is critical Fashion, Gadget & Electronics have the highest online penetrations, with books at the lowest • Branded fashion & beauty retailers appear relatively impervious to E- Commerce disruption • Fashion companies, such as Delami brand, control both manufacturing and distribution of their products, are also insulted Tech in Asia; MarkPlus; Marketeers
  • 50.
    Key Conclusions :Where Does E-Commerce Go From Here? Mobile E-Commerce : A Promising opportunity Key Conclusions : Where Does E-Commerce Go From Here? Third-party marketplaces can prosper Tech in Asia; MarkPlus; Marketeers • 3P Marketplaces allow an infinitely scalable selection of merchandise • 3P can either be stand alone business (Blanja, Tokopedia, Bukalapak) or complementary business (Lazada, Elevania) • The success of 1P vs 3P varies by customers segmentation • Mobile sales can offer customers additional convenience, and be incremental in nature • Simple yet sophisticated apps are important • Mobile also benefits legacy services by offering services clerks more real time information's Online devices most frequently used for online shopping Mobile phone internet users penetration
  • 51.
  • 52.
    There are fivedisruptive forces in E-Commerce Price Consumers like to buy products at the lowest price possible Selection Cost StructureConvenience Distribution No Constraint of Shelf Space EC Offers accelerated delivery programs and mobile shopping Merchants can easily initiate nation-wide distribution At scale, EC benefits from sales marketing efficiency
  • 53.
  • 54.
    Summary of KeyTakeaways E-Commerce in Indonesia E-Commerce needs to close the “trust” Gap 1 2 3 4 5 Over the next five years, payment, logistics and fulfilment innovation should determine the level of disruption of traditional retail. Structural and socioeconomic demographics determine the company-specific strategy an E-Commerce retailer will have to lead with in a specific market; in Indonesia, fulfilment is crucial (for 1P or B2C) Investments that improve an E-Commerce retailer’s ability to offer low prices, broad selection and increased convenience will likely lead to higher sales growth, albeit at a potentially lower margin Pursuit of “value” and “convenience” is universal motivations that continues to drive E-Commerce
  • 55.
    Thank you! “it’s stillDay One” for E-Commerce in Indonesia
  • 56.
  • 57.
    Round 2: Disruptor’smind. Revealed. By Angky Yan Pramudya Round 1: Be a disruptor, don’t be disrupted! By Bari Arijono Round 3: Digital Talk Wrap Up By Lyra Puspa
  • 58.
    Disruption is notabout doing BETTER, it’s about doing it DIFFERENTLY
  • 59.
    Disruption is notabout DIFFERENTIATION, it’s about CREATING NEW
  • 60.
    Disruptors makes theestablished leader NOT WORSE, just IRRELEVANT
  • 61.
    Disrupt yourself first,then disrupt the world! STEVE JOBS Macintosh Apple II
  • 62.