Established running companies these days at least facing two potential real challenges one is, competition including from product substitution, maybe completely un-expectable and coming out in totally different format, and two, is its opex basis
If a company think that its products or services will never be replaceable, think deeper and longer and listen or read the weak signals that might appears on the horizon out of no where , be sensitive and open minded , and you might find something interesting. With the remarkable proliferation of internet, mobile smart devices with amazing computing power and wireless connectivity everywhere and with the growing implementation in human daily life of at least a dozen of technologies like robotic including bot , automation, machine learning like AI , IoT, cloud, autonomous vehicles including drone, block chained, next-gen genomics which have been invented in the last three decades or so , there are many new ways in doing our life and the operation of our corporation and many new things as products and services coming out. This will definitely have a profound impact to our life and our companies , our businesses.
If after a series of contemplation sessions a company still can not find any possible new forms of the products and services that they have been producing and selling for many years, then they should try to find at least some new ways of developing, producing and delivering its legacy products and services; and for sure , especially for companies in Indonesia, there are many new ways that a company should consider, carefully plan and eventually do it to embrace the new digital age coming our way. Why ? the rationale behind it is simple, your opex basis can be scrutinized easily by competition if you just keep doing it the same way as you have been doing in last several decades.
Many companies can be quickly out of business beaten up by new player who can produce and deliver the same product or service but in much lower cost, with way way lower operational expenditure. It’s no secret anymore. Factories will be fully automated with no human operator like Tesla, sea ports and airport are fully automated like Hamburg seaport or Changi T4, warehouse are full of moving robots like Amazon and Alibaba, courier companies must transform its delivery efficiency using RFID Track and Trace and Smart locker, vast palm plantation must use drone and LiDar, old school property companies are scrutinized by competitors who use 3D printer, and many other.
In short the internal business processes in companies, and i am focusing on companies in Indonesia, must be transformed and empowered , aligned with the digital environment, for companies to sustain business or even to grow more. With digitalization, companies gain a remarkable efficiency in its opex and boost its productivity and thus Indonesia companies can then compete globally. Indonesia do not invent the technologies but Indonesia can leap frog by utilizing the technologies currently available which can be customized and designed to meet the local needs. We did once with Palapa Satellite and we should be able to do the same now and onwards.
Some companies can easily find the new way of delivering their products and services to customer in much cheaper and reliable way by utilizing the digital technologies. Not only that, companies can also see the new forms of it’s digital products and services . Or at the minimum, enrich the existing products and services with digital features that make the products or services more appealing and make a lot of sense for the customers.
If you are an Indonesia company and keen to digitalize your processes and find your digital products/ services, just drop me a line and we can explore further.