Articles

Improving the Effectiveness of Business Banking Loan Processing and Cross-Selling Activity Using Systemic Design Thinking Case Study: Bank Dewangga Indonesia (BDI)

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Technology and Digital Transformation have been growing swiftly, and the world seems borderless with the existence of the internet. This is undeniably affecting all of the industries in the world, and the banking industry is a part of it. Currently, the customer prefers to do it whenever and wherever they are, of course with the help of the internet. It also occurred in loan processing. The faster the services and processes, the more loyal the customer is to the bank, and the more profit that the bank will gain. BDI, as one of the State-Owned Companies in Banking, has been trying to transform the business process from a traditional way to a digital bank that can seamlessly accommodate all customer needs. BDI is aware that depending on loan products is not sustainable for the business; once the business in a country falls like it was at the beginning of Covid-19, the company could not avoid the negative impact, the loan quality was declining, and of course, the profit is shrinking compared to previous years. This research aims to identify BDI’s effectiveness in business banking loan processing and cross-selling activity. It will also assess which part of the business systems can be improved or even transformed into new business processes. The business process is quite complex and related to each other; for this qualitative research, the author uses the systemic design thinking method with six main processes: inquiring, framing, formulating, generating, facilitating, and reflecting. The result of the study found that the current business banking loan processing and cross-selling activity is not fully effective and not optimal to support and compete in the market. In the conclusion, author also listed some recommendations to improve the effectiveness of loan processing and cross-selling to lift the company’s profit.

A Study of Trust Base Voluntary Tax Compliance through Tax Administration Digital Transformation in Indonesia

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Over the last decade, Indonesian Tax Authority, DGT (Directorate General of Taxes) has introduced digital transformations on tax administration as a part of Tax Reform in Indonesia. These practices were done to improve taxpayer trust and tax compliance. The objective of this study is to look into the relationship between tax administrations’ digital transformation on trust, as well as taxpayers’ tax compliance decisions. We emphasized on Indonesian taxpayers’ perceptions of fairness and voluntary tax compliance following the digital transformation of tax administrations. An online questionnaire was distributed as part of this study’s survey approach. To collect samples from all throughout Indonesia, the online survey used a Google form. Indonesian taxpayers were used as the study’s population. A simple random sample strategy was used in this study. Structural equation modelling (SEM) was utilized to examine the collected data. The result was that tax administration’s digital transformation has a positive impact on voluntary tax compliance.

Proposed Marketing Strategy to Increase Digital Smart Poultry Market Readiness in West Java

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Coronavirus diseases (COVID-19) have been impacted to the decrease in poultry product demand in Indonesia which leads to cause oversupply and declining in this industry margin. As one of the companies that promote digital transformation in Indonesia, Indonesian ICT company develops a new subsector in its digital agricultural platform to solve the problem. This company created Minimum Viable Product (MVP) to develop its current digital platform in subsector poultry (digital smart poultry). It consisted of several features such as funding, partnership, and B2B/B2C marketplace. After planning the MVP, the problem is mainly focused on determining the market readiness for smart poultry digital platform and how to create the most suitable marketing strategy to enter the market. They also had not specified the target segment to sell the products yet. This research is aimed to explore more whether the poultry farmers need the smart poultry digital platform to solve the problem, the market readiness, and formulate the marketing strategy and implementation plan for the smart poultry digital platform that targeted on poultry farmers.
To validate the issue in the poultry industry, the authors conduct a preliminary survey by interviewing poultry farmers in West Java. Next, to gain in-depth insight into the product necessities and market readiness, the author did an environmental analysis (internal and external) as the base to formulate the SWOT-TOWS analysis. The internal analysis that has been used for this research consists of Business Model Canvas (BMC) and VRIO analysis. The author used PESTEL, Porter’s Five Forces, competitor, and consumer’s analysis for the external analysis. According to the analysis, the poultry farmers as the targeted consumers are considered ready and necessary to use the product. After formulating SWOT-TOWS based on the environment analysis, the author used QSPM analysis to determine the most suitable business and marketing strategy to be implemented. The author proposed several strategies and implementation plans that consisted of 1) Increase the smart poultry digital platform capabilities (especially in IoT to help solve the poultry farmers’ problem). Optimize digitalization for business development and marketing (SO2), 2) Optimize the service marketing (ST1), and 3) Maximize the use of integrated marketing strategy to maximize promotion (WT3).

Optimizing Digital Transformation Initiative to Serve Next Billion Users

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Microfinance as one of the working capital providers for millions of micro to ultra-micro business owner is now facing the challenged of digital disruption. Microfinance such as cooperatives, BMT (Islamic cooperative Baitul Maal wa Tamwil), CU, Rural bank, Ventures is no longer compete to each other as Fintech is starting to enter the ecosystem. The existence of microfinance remains valid as institutions offer requirement that easily can be fulfilled by the segment such as non-collateral and easy access to payment but, fintech with the aggressive expansion and strategy for growth would find them as non-threatening value proposition. Hence microfinance need to aware of the level of threat and be prepared. Nonetheless, digital transformation in the institution could be one of the options to stay competitive.

In order to optimize the digital transformation of microfinance, this study is prepared to validate the area of digitalization and its relation to answer the need of the customers and stay relevance to the underserved market.