Articles

Validation of Business Model Innovation for Digitized Product and Service-Based Activities in the Core Business (A Case Study in the Microenterprise ‘Buwah’)

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The contemporary beverage sector within the Small and Medium-sized Enterprises (SMEs) domain is currently a favored industry among millennial entrepreneurs. According to the Indonesian Creative Economy Agency, the creative industry sector has the potential to contribute to national growth for business players in Indonesia. The issue faced by Buwah SMEs is a drastic decrease in revenue over the past two months, despite the promising start of their sales outlet openings.The primary objective of this research endeavor is to elucidate the business model of Buwah SMEs through the utilization of the business model validation methodology. This research seeks to delineate and validate the assumptions underpinning the innovation of product and service business models of Buwah SMEs, prioritizing those requiring immediate validation. Furthermore, the research aims to delineate strategies for business expansion predicated on digitalization, particularly in the core activities of Buwah SMEs. This research adheres to a descriptive approach with a qualitative orientation. Data collection methodologies encompass three core techniques: observation, interviews, and documentation. The research findings reveal the validation of four (4) specific blocks within the Business Model Canvas. These validations encompass hypothesis 1 within the customer segment block, hypotheses 2 and 3 within the Value Propositions block, hypothesis 5 within the customer relationship block, and hypothesis 9 within the revenue streams block. Future research recommendations include a comprehensive exploration of the Business Model Canvas blocks that have not been examined in this study, as this research only focuses on four blocks. Based on the research findings, practical recommendations have been formulated, which Buwah may judiciously consider for prospective business development endeavors.

Proposed Growth Strategy for Small Business Using the MSME Soundness Assessment Method (Cracktive Case Study)

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Micro, Small and Medium Enterprises (MSMEs) are the main drivers of the economy in Indonesia because they are able to play a role in the process of increasing people’s income and succeed in encouraging economic growth. MSMEs have the ability to contribute to the local economy by creating new businesses that can increase employment opportunities. To assist MSMEs to grow, the government offers financial assistance. MSMEs need to know the health of their business and company. MSME Soundness Measurement provides a vision of business performance from a financial such as liquidity ratio, activity ratio, loan ratio, profitability ratio, and non-financial such as marketing, operations, good governance, and human resources. The assessment results were compared with the table AHP Calculations, the final score financial of 28,43% and non-financial aspect of 20,33%, the overall score of 48,76%. The results of measuring the level of Health obtained results in Cracktive companies, which are included in the Fair Soundness I” category with an “BBB” rating. Measurement of the Health Level of MSMEs is appropriate for Cracktive companies to determine the level of health and can be a tool for improvement.

Proposed Business Strategy to Increase User Download and User Registered for “ABC” Application: A New PT XYZ Digital Touchpoint for MSME’s Customer

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Micro Small Medium Enterprises (MSMEs) have become one of Indonesia’s most significant contributions to economic growth. Based on data from the Ministry of Cooperatives and SMEs in March 2021, Micro Small Medium Enterprises (MSMEs) had contributed 61,07% of Indonesia’s Gross Domestic Bruto (GDP) or Rp 8.573,89 Billion. Per March 2021, the total of Micro Small Medium Enterprises (MSMEs) in Indonesia has reached 64,2 Million business entities and contributed more than 117 million Human Resources all over Indonesia. With these significant contributions to the Indonesian economy and to make MSME survive in the challenge of the digital era Indonesia Government made a program in 2021 called “MSME’s Go Digital, Go Global”, targeting 30 million MSMEs to go digital in 2024. PT XYZ as one of the digital companies in Indonesia launched a new Digital TouchPoint (DTP) named “ABC” as one of the ways to speed up internet penetration and make it accessible for every MSMEs, grabbing MSME’s market in Indonesia, and participating on succession Indonesian government program.  As a new application, PT XYZ is facing a problem: the user download and user registration of “ABC” are still low; hence, PT XYZ needs new business strategies to increase user download and user registered. Several steps have been taken to propose new business strategies for PT XYZ. For gathering data and conducting a comprehensive external and internal analysis, questionnaires and in-depth interviews were done. VRIO Framework analysis and Internal Factor Evaluation (IFE) were used for internal factors analysis, and Porter’s Five-Forces and External Factor Evaluation (EFE) were used for external factors analysis. Diamond Strategy Formulation was used to formulate the proposed strategies to increase user download and user registered for “ABC”. The proposed strategies are divided into two kinds there is the short-term strategy which will be implemented and executed for one to three years, and the long-term strategy.