Saiful Hidayat is the Head of Innovation & Design Center at PT. Telekomunikasi Indonesia, Tbk. He has over 20 years of experience in the telecommunications industry. The presentation discusses the challenges facing telecommunications companies from digital disruptors and how focusing on coherence can help them adapt. It argues that telcos need to strengthen their digital capabilities, focus on unique strengths, and ensure business and technology alignment. PT. Telekomunikasi Indonesia, Tbk is implementing a coherence strategy through five pillars of innovation and nurturing a digital ecosystem focused on people, planet and participation. It is shifting from an industry to arena mindset to grow its digital business across multiple ecosystems.

1. www.huawei.com
Security Level:
HUAWEI TECHNOLOGIES CO., LTD.
HOW TO DEAL WITH
DISRUPTORS ?
Think Ecosystems, Act Coherence
Saiful Hidayat
Head of Innovation & Design Center
PT. Telekomunikasi Indonesia, Tbk

2. Saiful Hidayat is Head of Innovation & Design Center of PT. Telekomunikasi Indonesia, Tbk since Feb
2015.
He holds Bachelor Degree from Brawijaya University (1992) and Master Degree on Multimedia from
Bandung Institute of Technology (2001)
Holding more than 20 years working experience in TELKOM, a number of strategic positions
have been led by him before, which are:
• Vice President Innovation Strategy and Synergy TELKOM
• Project Director of Indonesia Incorporated Project TELKOM
• Project Director of eHealth Business Project TELKOM
• Business Development Director ADMEDIKA (subsidiary)
• Assistant Vice President IT Service Strategy TELKOM
• General Manager Operations FINNET (subsidiary)

3. Things that May Change Us Things that May Save Us Things that We Believe

4. TECHNOLOGY: IT ENABLES EVERYTHING AND WILL CHANGE THE WORLD
The world is very dynamic, however.
How the world is changing is
different from time to time. The
situation will function differently 10
to 15 years from now
Source: Gartner's 2014 Hype Cycle for Emerging Technologies
Maps the Journey to Digital Business

5. SO WHAT ARE TECHNOLOGY MATTERS ALL ABOUT?
We have to understand technology in larger perspective.
Technology is not only digital communications technology, it is the tools
and ideas that have brought us forward the last hundred thousand years.
The nature of technology is that it enables people to do new stuff.
It changes our behavior and habits and in turn, value chain
The role of any company is to offer a technology in order to
accommodate a certain behavior so that customers are able to reach
their outcome
It is stuff that may change our
behavior, habits and in turn, value
chain…
Source : Helge Tennø, Technology Will Disrupt, Slideshare,net

6. WHAT’S DIFFERENT NOW?
Barrier entry has melted away makes Dico
disrupt almost all existing value chain
Information and media
is online
Cloud computing puts a
supercomputer in your
pocket
Mobile devices mean
anyone can reach anyone,
anywhere, anytime
It’s now transforming to digital,
making Digital Players ’disrupting’
almost all existing value chain
Source : Compiled from How Google works and Orange SV

7. BATTLE FOR CUSTOMER: TELCO IS ATTACKED FROM ANY DIRECTIONS!!
It is not only OTT players who
attack Telco, but also other
industries: movie industry, device
industry, consumer goods
industry, etc

8. WHAT’S THE SITUATION NOW: TELECOM INDUSTRY IS IN TRANSITION
Telecoms is today at a crossroad due to
maturity of traditional access business
and the advent of the digital revolution
that requires more advanced
infrastructure and, at the same time, has
incentivized new competitors

9. GLOBAL TRENDS – VALUE SHIFT TO DIGITAL
The market is shifting towards
digital – and digital will grow 8X
faster than the traditional telco
market
Source : Ovum, eMarketer, Bloomberg, Gartner, imsresearch,
gsma, Delta Partner., 2015

10. UNDERSTANDING THE DISRUPTION:CONUNDRUM FOR NETWORKS: COSTS AT
“LOW” SCALE
WhatsApp messaging cost 1/10K of Telco’s sms
2014: SERVICES
2019: NETWORKS ?
DICO attacks :
Global DICO cost scale points are
way beyond reach of a single
country-network
Source : Giles Corbett @GiCorb, Head of Libon Orange

11. UNDERSTANDING THE ‘DISRUPTORS’
Dico competes in new ways-a low
cost platform approach
… and “Free + Ecosystem” Business
Model
Source: STL Partners – Telco 2.0

12. IS TELCO GOING TO LOSE?
However, the winner will be those
that can deliver superb customer
experience with the right value
and pricing to the end of customers.
Source:

13. Things that May Change Us Things that May Save Us Things that We Believe

14. CHALLENGES AND OPPORTUNITY TO ADDRESS
Telco needs to address both the
‘dumb pipe’ challenges as well as
grab the opportunity in the growing
digital space through empowering
unique capabilities
Source : Delta Partner Group, 2015

15. UNDERSTANDING CURRENT TELCO POSITION IN DIGITAL MASTER QUADRANT
We are trying to be digital master, are
we ready?
Source: Leading Digital, 2014

16. LEARNING FROM DIGITAL MASTERS (1/2)
Some considered great companies
use their digital masteries to keep
winning the competition …
Source: Leading Digital, 2014, company’s website, web search

17. LEARNING FROM DIGITAL MASTERS (2/2)
… even the best in their category is
continuing to extend its digital
mastery to gain growth
Source: Leading Digital, 2014, company’s website, web search

18. COHERENCE: THE DIGITAL MASTER’S WAY TO WIN
Great companies truly understand
their capabilities and their core …
and they’re coherent
… ESSENTIAL ADVANTAGE: THINK
ECOSYSTEM, ACT COHERENCE
Source: Leading Digital, 2014, company’s website, web search

19. THE CHALLENGES - #1
Services is more complex and many
options of Business Model.
Telco as Telco 2.0 service provider has to
focus in product, platform and
infrastructure with two sided business
model
Source : STL Partner – Telco 2.0

20. THE CHALLENGES - #2
Telco has to develop new skills and
relationships in product innovation
platform and business infrastructure
to deliver superb customer
experience
Source : STL Partner – Telco 2.0

21. KEY SUCCESS FACTORS - #1
always started with the user’s
experience
COHERENCE:
• Start from what we have
• Define way to play
• Focus on unique capabilities
• Ensure product fit
• Be aligned
The Equilibrium -
Make it balanced
all the way you go
Source : STL Partner – Telco 2.0
What is Desirable
to user/customer ?
What is
Possible With
Technology ?
What is
Viable in
Marketplace ?

22. KEY SUCCESS FACTORS - #2
To be the winner in the
competition of the digital
world, we see that mindset
transformation is the key
success factor to drive
changes

23. Things that May Change Us Things that May Save Us Things that We Believe

24. TELKOM TO GO FORWARD DIGITAL BIZ: PUT THE “DICO-NESS” TO TELCO
We are strengthening Device, Network
as well as Application for both physical
and digital ecosystems to going forward
Digital Biz

25. TELKOM ADOPTING & IMPLEMENTING COHERENCE STRATEGY
The top 25 % of
companies measured by
financial performance ,
Concentrate more on
COHERENCE list of
Innovation rather than
be Good at everything
Aligning the innovation
portfolio with
customers/users needs &
wants
Developing & retaining
people with the right
technical knowledge
Ensuring that Innovation
leaders & business leaders
are aligned
Understanding new product
& service-related
technologies & trends
Pursuing Lean product
development
Innovation,
Technology &
Business
must be aligned
Be focus, be aligned
We believe COHERENCE
STRATEGY will make us
succeed and in which,
alignment and equilibrium is
the heart to this success.
Going COHERENCE is now on
the way …

26. TELKOM FOCUSING ON COHERENCE INNOVATION
Coherence Innovation in Digital Biz is a
‘must’ in order to stay ahead the
Disruptors and exist within the TIMES
industry.
We implement 5 pillars of Coherence
Innovation: Invent, Invest, Partner,
Venture and Acquisition

27. TELKOM NURTURING DIGITAL INNOVATION ECOSYSTEM 3P
Our strategy on growing up digital
business is by nurturing on 3P: People,
Planet and Participation

28. TELKOM MOVING ON FROM INDUSTRY TO ARENA
Now, we are going to move on from
“Industry” mindset to “Arena” mindset.
By going to Arena, not only a specific
ecosystem will be involved, but also
group of ecosystems that form a
biosphere, so that together we can grow
digital business

29. www.huawei.com
Security Level:
HUAWEI TECHNOLOGIES CO., LTD.