CASE STUDY : PT TELEKOMUNIKASI INDONESIA Tbk

CASE STUDY :
PT TELEKOMUNIKASI INDONESIA Tbk

INTRODUCTION

n  PT. Telekomunikasi Indonesia, Tbk (Telkom) is a leading telecommunication service provider in Indonesia.

n  Telkom has changed its strategy to become a leading InfoCom player in the region.

n  Telkom has also changed its mission to be one-stop shop provider.

TELKOM on VISION

n  VISION : “To become a leading InfoCom player in the region”.

n  To support the vision, TELKOM has diversified its business from POTS ( Plain Old Telephone Service ) to PMM ( Phone, Mobile, Multimedia ).

TELKOM BUSINESS CATEGORIES

n  Core Business

n  Growth Business

n  Platform Business

n  Ballast Business

n  Support Business

n  Delivery Channel

n  New Business

CORE BUSINESS

n  This business contributes major revenues and profit in short term and has low growth potential

n  Best strategy for this business are:

n  To increase cost and capital productivity

n  To preserve the existing marketplace through keeping the profit

n  To optimize the product utilization

n  Products included in this category are POTS, network satellite business, SLJJ, SLI and intelligence network

GROWTH BUSINESS

n  This category has high potential to grow and it will be the biggest profit centers in the middle term.

n  Best strategies for this business are :

n  To increase revenue in short term by broaden customer target or expand market penetration

n  Optimize cost and capital productivity

n  Products included in this category are kartuHALO and SimPATI.

PLATFORM BUSINESS

n  This category probably contributes less financial, but has major influence to maximize investors’s interest in TELKOM.

n  It provides development way of technology production tools for core and growth business category.

n  This business covers multimedia business, such as dot.com business (content, community and context ), application business and e-commerce

BALLAST BUSINESS

n  This category covers business which has negative contribution to the company’s financial for now and then.

n  This business can be considered already in the end of its life cycle.

n  Suitable strategy for this category is to de-invest in this business.

n  AMPS and Nordic Mobile Transport are the examples of this business category.

SUPPORT BUSINESS

n  This business category covers businesses which give contributions to the company through individual capability development and organizational supports to the other business organizations, including outsiders as long as they have more capabilities.

n  Financial profit can be achieved if there is excess capacities by giving services to external customers.

n  Examples for this category are research, development, training, information system, property, health, education and management consulting.

DELIVERY CHANNEL

n  Delivery channel category covers insource businesses for core business category to establish relationship with customers.

n  Unit business which are included in this category are Divre and Enterprise Service Center.

n  Nowdays, this delivery channel category is developed as preparation stage to assemble customer-based organization

NEW BUSINESS

n  This business category is developed as the anticipation for the changes in TELKOM’s surrounding.

n  The most suitable business model for this category is business project which plays as business incubator from internal innovations or cooperation with universities and research institutions.

n  Business projects such as VoIP, B2B, chain shop business, customer finding, and venture are the examples of this category.

TELKOM BUSINESS PORTFOLIO

NOT INCLUDED IN BCG MATRIX

n  Because TELKOM uses different approach in classifying their product portfolio, there are few categories which are not included such as :

n  Support Business Category

n  Delivery Channel Category

n  New Business Category