Business Model Innovation to Optimize Revenue Growth in the B2C Sector of Research Service Providing Institution: Case Study at Nano Riset Indonesia

: This research explores business model innovation at Nano Riset Indonesia NRI, a leader in nanotechnology research, focusing on enhancing revenue growth in the Business-to-Consumer (B2C) sector. The thesis presents an in-depth narrative of NRI’s business model, critically examining its internal operations and external market environment. Employing a holistic methodology, it blends quantitative and qualitative analyses, utilizing frameworks like VRIO, Porter's Five Forces, and the Business Model Canvas to evaluate NRI’s position and identify areas for innovation. Key focuses include improving consumer value propositions and strengthening customer relationships, all while maintaining cost efficiency. Central to the thesis is a strategic vision for a reimagined business model, tailored to the unique demands of the B2C market. This proposed model aims to financial improvement but also to cultivate a sustainable business growth and adaptability in the dynamic field of research services.


INTRODUCTION
Nanotechnology is not a new innovation, its adaptability and versatility have become increasingly prominent over the past decade (Malik, Muhammad, & Waheed, 2023).The dynamic evolution of this technology has resulted in widespread applications in sectors ranging from agriculture, food, cosmetics, medicine, healthcare, automotive, oil and gas, chemical  The rise in Scopus-published of documents per year "nanotechnology" and "advanced materials" in Indonesia Source: Scopus with Indonesia-filtered "nanotechnology" AND "advanced materials" search keywords (Scopus, 2012(Scopus, -2022) ) In Indonesia, addressing nanotechnology and advanced materials research challenges requires collaboration between research institutions and service providers.NRI's shift from the B2B to B2C market necessitates a different strategy due to the B2C market's dynamic nature, diverse needs, and faster buying cycles.The institution must adapt to the B2C clients' distinct expectations for quality, speed, and price, especially in an era where information technology allows consumers to easily compare services.NRI needs a better understanding of the B2C market dynamics and a redesigned business model to optimize revenue and maintain its competitive edge.Currently lacking a clear plan for targeted industry and market size, NRI will work with researchers to innovate its business model, enhancing its performance in the B2C sector.Therefore, this research focuses on evaluating Nano Riset Indonesia's external and internal business dynamics as a nanotechnology research service provider.The aim is to understand its market position and operational strengths and weaknesses.Based on this analysis, the study will propose strategic business model innovations to optimize institution's revenue in the competitive nanotechnology sector.

II. LITERATURE REVIEW A. Business Model Innovation
Table 1

B. Value Innovation -Four Action Framework
Value innovation focuses on creating overall value, often leading to simpler and more desirable products or services, differing from technology-based innovation.The Eliminate-Reduce-Raise-Create (ERRC) Grid is a crucial tool for this, helping companies reconfigure industry factors to achieve a unique value proposition and cost-effectiveness.This approach enables the creation of new market spaces, enhancing customer satisfaction and sustainable organizational growth.The process involves four key steps.Firstly, companies reassess elements that have been competitive advantages, discarding those that are no longer relevant or negatively impact value.Secondly, they evaluate potential over-enhancements in products or services that increase costs without real benefits.Thirdly, the process involves identifying customer compromises due to industry norms and eliminating these constraints.Finally, it involves exploring new ways to add value for customers, potentially creating new demand and altering the industry's approach to pricing.This method encourages recognizing and adapting to shifts in consumer priorities and industry norms (kim & mauborgne, 2017).

B. Data Collection and Analysis
The research adopts a mixed methods approach as outlined by Saunders et al (2023) in "Research Methods for Business Students."This approach combines quantitative and qualitative techniques in a synergistic manner, not merely as a combination but to leverage their strengths for a more comprehensive understanding of the research subject.The specific methodology is a Concurrent Embedded Design, where either quantitative or qualitative data forms the primary basis, with the other type enriching the analysis.This enables in-depth exploration of complex questions, with quantitative surveys complemented by qualitative interviews or observations for a well-rounded perspective.

Table 3. The final total population used in the research
In this study, questionnaires were used for internal stakeholders at Nano Riset Indonesia, assessing perceptions of the five forces on a Likert scale.Key respondents included the Founder and Business Director, who provided insights on industry challenges and competition.For prospective clients, the focus was on higher education students and academics in Indonesia, particularly in nanotechnology and advanced materials.The population was segmented by regions and provinces, with a target of 316 respondents; however, 320 were successfully surveyed, aiding in perceptual analysis and customer validation.Secondary data collection involved an extensive analysis of internal documents from YP3N and PT Nanotech Indonesia Global, and digital sources such as websites, scholarly articles, and business publications, providing a broad perspective on business operations, strategies, and current trends in innovation and business.The Total Addressable Market (TAM) represents the ultimate revenue a business can achieve by selling its products or services, typically used as a strategic tool for assessing market expansion potential.Subsequently, the Serviceable Addressable Market (SAM) is a more focused segment that a firm can realistically target, determined by factors like specialization, geographic reach, and resource allocation.Even more specific is the Serviceable Obtainable Market (SOM), which reflects the actual market share a company can expect to capture, accounting for its unique capabilities and competitive environment.Additionally, Bottomup Market Sizing, as detailed by Buchko and Fairbanks (2018), is an analytical approach used to estimate market size when data is limited, involving segment identification, scale approximation, and expert review to refine estimates for strategic planning and decision-making (York, 2018).The market population is calculated based on previous estimates, considering that only about half of the Service Obtainable Market (SOM), or 752 academics, are likely to conduct research.This figure is used to determine the total market size in sales value.Additionally, the potential market for services assisting in pre-commercialization is estimated by considering the decrease in interest and capability among academics, as per Radyum Ikono's 2020 research.Using its current business model, the institution' maximum profit from the existing market is approximately IDR 1.11 billion.However, by adding services to its business model innovation, the company could potentially increase its profits by 191%, reaching around IDR 3.22 billion.2024), is essential for analyzing an industry's competitive dynamics.It includes five critical forces: Entry Barriers (difficulty for new entrants), Supplier Power (suppliers' influence), Buyer Power (consumers' leverage), Substitution Threat (ease of finding alternatives), and Competitive Rivalry (intensity of competition among existing players).This model extends beyond direct competition, providing a comprehensive perspective for strategic leaders to assess the external environment and develop effective competitive strategies.
In investigating the industry dynamics for the Institution, researchers employed a questionnaire focused on Porter's Five Forces.The questionnaire was strategically distributed, with the founder of Nano Riset Indonesia responding to questions about the Threat of New Entrants, and the Director of Business and Marketing addressing the Bargaining Power of Suppliers and Buyers, Threat of Substitutes, and Industry Rivalry.The findings suggest that the scientific research services industry for academics presents a balanced mix of opportunities and challenges, characterized by moderate competition.This competition is primarily shaped by the significant bargaining power of buyers and a notable threat of substitutes.Institutions poised for success in this field are those adept at innovation, keenly responsive to customer needs, and flexible to market changes.To maintain

C. Competitor Analysis
In Indonesia, the few institutions that commercialize research services in the field of nanotechnology are mostly under the auspices of universities, even if they have complete infrastructure.In addition, the National Research and Innovation Agency (BRIN) also has research services in various fields, one of which is Nanotechnology.Most research and laboratory service providers in the field of nanotechnology and advanced materials in Indonesia are under the auspices of universities and the government.If we compare Nano Riset Indonesia's products with its competitors, it can be seen that the types of services are not much different.Therefore, the institution wants to offer something unique to be different from its competitors, so that it is not trapped in the red ocean market.The institution wants to add new types of services that are not owned by its main competitors in order to enter the untapped market, so that the main goal of increasing revenue that is down can be resolved properly.

D. Perceptual Map
According to Giagauri's (2019), perceptual mapping is highlighted as a key marketing tool that visually represents consumer perceptions of brands or products.This method is crucial for comparing brands against competitors and shaping marketing strategies.The map's effectiveness depends on the selected attributes and subjects, as well as respondent evaluations.Perceptual mapping is pivotal for uncovering consumer insights, essential for effective brand positioning and marketing.
In assessing potential clients' perceptions of Nano Riset Indonesia and its competitors, this study involved a questionnaire distributed to 320 academics in the field of nanotechnology and advanced materials in the three target provinces.The research focused on two key indicators: brand familiarity and service perception.A weighting scheme was applied to each response for these indicators to calculate the average, thus facilitating the creation of a perception map (two-axis chart).Data collected from respondents was analyzed by multiplying the initial score by the total number of responses, as detailed in tables 10 and 11 in the appendix.This method provides a nuanced understanding of the perception of Nano Riset Indonesia's brand and services among potential academic clients.The results of this perceptual analysis show that Nano Riset Indonesia (NRI) is in a position that is still below its three main competitors, namely ULRU-IPB, ILRC-UI, and ELSA Brin.However, its position is more or less balanced when juxtaposed with SIPA PPNN-ITB, except that both have their own advantages.NRI excels in brand familiarity, while SIPA PPNN-ITB excels in service perception.The bottom position is occupied by Finder U-CoE UNPAD.Although NRI is not at the bottom, this position is still a serious threat if there is no innovation in its services.Therefore, NRI must be able to design strategies so that it can compete with its three leading competitors in capturing existing market share.In addition, the institution must offer something unique and different from its main competitors, so as not to be trapped in intense competition for the same market.

E. VRIO Analysis
In a strategic management context, the researcher employed the VRIO framework to evaluate the competitive advantages of Nano Riset Indonesia's NRI resources.This analysis involved directing inquiries to NRI's founder, an industry expert, with the interview questions focusing on each key resource of the institution, as detailed in Table 4.10, and transcripts included in the bibliography.The VRIO analysis revealed that NRI's advanced laboratory facilities and equipment are key to its competitive advantage.However, there are opportunities for improvement in human capital, intellectual property, and relational capital management.Strengthening these areas could transform them into significant competitive strengths, enhancing NRI's market position.This finding underscores the importance of enhancing internal capabilities and resource management to leverage both existing and potential competitive advantages.

 Value Propositions
The organization offers more than just laboratory services; its value extends to aiding academics in navigating complex research processes and downstream results.

 Cost Structure
Considering fluctuating demand, the monthly salary system for researchers and technicians is inefficient.The organization often needs to hire additional personnel on an as-needed basis, making a fixed pay structure less practical.

 Customer Segments
Focus on the B2C market to significantly increase revenue and diversify income streams.

 Channels:
Enhance the website to function as a self-service platform beyond basic product information.
 Nano Riset Indonesia's business model innovation marks a significant shift towards diversifying services and revenue streams, aligning with current trends in nanotechnology and scientific research.This involves expanding service offerings to include prototyping and product development for more commercialization-focused research.Embracing digitalization, the institution is implementing a self-service platform, catering to the digital preferences of the academic community.Customer engagement strategies are also being enhanced with interactive channels like workshops and seminars, fostering long-term relationships and collaboration in the scientific field.The new model strategically promotes partnerships with local industries, bridging academic research and commercialization.Additionally, the institution is revising its cost structure, opting for external IT services for digital platform maintenance, which is more cost-effective than direct IT staff hiring.Adopting project-based salaries for researchers and experts aligns with fluctuating demand and financial efficiency, allowing for flexible engagement of external personnel as needed.

VI.
CONCLUSION AND RECOMMENDATIONS Nano Riset Indonesia's business model innovation represents a strategic and comprehensive response to the changing landscape of academic and commercial research in science and technology.Focused on revenue growth and value maximization, the model incorporates expanded service offerings and stronger customer relationships, with a significant emphasis on digital engagement.This approach acknowledges the importance of technology in the modern research environment.The model is dynamic, designed for adaptability and evolution, aiming to meet current market demands while also preparing for future opportunities.This adaptability is crucial in a sector marked by rapid technological progress and evolving customer needs.
The development of this new business model involved a thorough analysis of the company's strengths, weaknesses, opportunities, and threats, aiming to optimize revenue generation.The implementation plan is meticulously structured in multiple phases, highlighting the importance of strategic planning and extensive preparation.It also emphasizes the need for continual adaptation and improvement, understanding the complexities involved in transitioning both technologically and in terms of human factors.This balanced approach, combining foresight, innovation, and practicality, signifies a significant advancement in Nano Riset Indonesia's pursuit of sustainable growth and industry leadership.The model reflects a proactive, future-oriented strategy, ready to embrace current demands and upcoming opportunities in the ever-evolving field of science and technology.
, and mechanical industries (Rickerby & Morrison, 2006).The Ministry of Research and Technology in Indonesia, now known as the Ministry of Education, Culture, Research, and Technology, has played a key role in advancing nanotechnology research in the country.They introduced a national research plan in 2005-2025, emphasizing the importance of advanced materials and nanotechnology.This plan aims to coordinate resources across various sectors for effective development.In 2010, the Ministry of Industry launched a nanotechnology roadmap, focusing on enhancing domestic industries, especially in Textile & Ceramics, Chemical, and Polymer sectors.To support nanotechnology research, the National Standards Agency introduced standards between 2011 and 2012, many of which were influenced by global standards (Joni, Muthukannan, Hermawan, Camellia, & Panatarani, 2018).

Figure 1 .
Figure 1.The rise in Scopus-published of documents per year "nanotechnology" and "advanced materials" in Indonesia Source: Scopus with Indonesia-filtered "nanotechnology" AND "advanced materials" search keywords(Scopus, 2012(Scopus,  -2022)   ) Most services are offered by universities and government bodies like the National Research and Innovation Agency (BRIN).The private research center, Nano Riset Indonesia NRI, is a pioneer in this sector, focusing on R&D and 8334 * Corresponding Author: Naufal Bintang Akbar Volume 06 Issue 12 December 2023 Available at: www.ijcsrr.orgPage No. 8333-8349 technological solutions.Nanotechnology adoption in Indonesia is still emerging, with few products listed on www.statnano.com,and a market characterized by high entry barriers.NRI, collaborating with national institutions, has developed four Centres of Excellence, contributing to various industries.NRI is adapting to a growing demand for research services from smaller entities like academics and independent researchers, indicating a shift towards a B2C market alongside traditional B2B.(PT Nanotech Indonesia Global Tbk 2022) .Nano Riset Indonesia (NRI) is a research institute established in 2012 with the legal entity of Foundation, functioning as a research-based technology business incubator in the field of nano technology produced by research and development.

Figure 2 .
Figure 2. the revenue of Nano Center Indonesia (2019-2022) Source: Internal consolidated financial statement

Figure 5
Figure 5. Research Design

Figure 5 .
Figure 5. Perceptual Map of NRI and its competitor

Figure 6 .Figure 7 .Figure 8 .
Figure 6.NRI's integrated research service products divided by current and proposed Source: Internal business development plan

ISSN: 2581-8341 Volume 06 Issue 12 December 2023 DOI: 10.47191/ijcsrr/V6-i12-84, Impact Factor: 6.789 IJCSRR @ 2023 www.ijcsrr.org 8335
Guo et al. (2017)n's analysis of 37 scholarly articles identified 20 moderating factors impacting business model dynamics, categorized into Firm Characteristics, Industry Characteristics, Business Model Implementation, and Business Model Practices.Additionally, they noted ten mediating factors in three subcategories: Revenue Growth, Efficiency Growth, and Organizational Capability Improvement.This research offers a framework for understanding factors that influence business model changes.The research focuses on business model innovation (BMI) as a strategy for increasing revenue.BMI is seen as a tool for capitalizing on opportunities during both economic upturns and downturns, adapting to industry changes.Researchers like Teece (2010) andGuo et al. (2017)have emphasized BMI's role in value creation and opportunity recognition, while Zott and Amit (2007) suggest BMIs help firms access new market niches, aiding in revenue growth and strategic adaptation in various economic contexts.
* Corresponding Author: Naufal Bintang Akbar Volume 06 Issue 12 December 2023 Available at: www.ijcsrr.orgPage No. 8333-8349 Revenue Generate new sources of profit by finding novel value proposition/value constellation combinations.This category is centered on innovating the core propositions of a business to unlock new profit avenues 2010

Table 4 .
The summary table of data collection and data analysis method

Table 5 .
Market Size Segmentation

Table 6 .
Market Population

Table 7 .
Market sizing for current services

Table 8 .
Market sizing for proposed services

Table 9 .
The result of Porter's Five Forces in Research Service Industry 1

Table 10 .
Product Comparison among competitors
ISSN: Customer Relationship  Revenue Streams Offer expertise guidance, data interpretation, molecular docking analysis, research publication support, and product prototyping.Value Propositions Provide integrated research services, facilitate access to commercialization and industry partnerships, and offer e-service capabilities.Key Activities Conduct integrated lab research, analysis, and prototype development for nanotechnology products.Key Resources Maintain a comprehensive online website for e-service support.Key Partners Collaborate with local industries and third-party IT services for commercialization and digital needs.Cost Structure Utilize a project-based salary model for researchers and experts to optimize workforce size and financial commitments, hiring specialized professionals as needed for specific projects.C.

Proposed Business Model Innovation Figure
8. The process of designing a business model innovation using the business model canvas ISSN: