This presentation was presented Asia Pacific Media Forum (APMF) in Bali on how Telkom Indonesia as a giant telco with over 200 Mio subscribers can be agile and nimble like a butterfly.

1. Act Like A Startup!
Transforming A Lumbering Elephant
into A Nimble Butterfly
SRI SAFITRI
Project Director of Customer
Experience &
Board of Advisor Digital AMOEBA
Telkom Indonesia
APMF
Bali, 2 - 4 May 2018

2. Digital Industry Phenomenon
OUTLINE

3. EXPLOITING
NEW
OPPORTUNITIES
CAPITALIZING ON
INCUMBENT
WEAKNESSES
Disruption is Everywhere
Source: Gartner

4. Source: Visual Capitalist, 2017
The oil barons have been replaced by the whiz kids of Silicon Valley
Top 5 Companies of the World Today are ‘Digital Natives’

5. Source: Accenture, CB Insight; World Economic Forum Report, 2016-2017
Rise of the Unicorns
The unicorns are achieving scale far quicker than analog companies ever did. Whereas the
average Fortune 500 company took 20 years to reach a market capitalization of $1 billion.

6. Telkom Digital
Transformation
OUTLINE

7. Why You Need to Transform?
Volatility
Uncertainty
Complexity
Ambiguity
Launch New Products
Seek New Sources of
Growth
Enter New Markets
INTERNAL
Challenges
EXTERNAL
Challenges

8. Source: BMC & PSTK Labs, 2018
Digital Transformation represents a
potential value opportunity of as much
as $100 trillion by 2025 for both
industry and society
Digital business currently
accounts for 18% of overall
revenue, and predicts a jump to
43% by 2020
Companies that become digital
enterprises can look forward to
• 26% increase in profitability
• 12% increase in valuation
• 9% increase in revenue to asset
ratio
Since 2000, 52% of companies in
the Fortune 500 have either gone
bankrupt, been acquired or ceased
to exist
Why Digital Transformation Now?

10. Source: Delta Partners, 2016
Telecom Industry in Transition

11. Source:
AT Kearney, Delta Partner & Internal Analysis, 2017
Telkom Digital Transformation

12. Digital Transformation Challenges
Source: NetSolution; Altimeter; & Business2Community, 2018
3 main challenges for company as enablers of digital transformation
It’s important that the company
culture align with the new values
dictated by the digital transformation
and the digital economy.
DIGITAL
CULTURE
Resistance to Change
DIGITAL
ORGANIZATION
Unit Collaboration
Cooperation between departments
and team silos. Digital
Transformation will impact how
you engage and interact with your
partners. How to find cross
department collaboration difficult.
DIGITAL
STRATEGY
Biz Leader Onboard
Thinking beyond a “campaign
mentality” in digital strategy efforts.
Real transformation requires business
leaders at all levels to be onboard
with the journey and what it means to
all segments of the business.

13. Telkom Startup
Way
OUTLINE

14. Disruptive
Innovation!
What do Davids
have that Goliaths
don’t have???
Foundership
(passion, believe & persistence for the unseen)

15. For a lumbering elephant, failure is
not an option. It is very good at
operating huge programs with
functional silos and detailed
procedures in high level of hierarchy .
A nimble Butterfly
recognizes
entrepreneurship as an
internal core discipline and
it leaves competitors in the
dust through continuous
innovation.
Elephant VS Butterfly
Transformation is not about reinventing elephants as butterflies but how we are breeding huge,
successful butterflies that never become elephants.

16. Source:
Donald Laurie, Venture Catalyst, Tersues Books, 2001
Telkom
Innovation
Strategies
5 Innovation Strategy
Pillars

17. It’s about finding ways to best
implement lean & design
thinking for best innovations WITHIN STRUCTURE
CERTAIN INNOVATIONS
Known Problems
Known or Unknown Solutions
•Waterfall
•Analytical thinking
• Planning & decision making
• High demand of resources
Implementation phase KPIs setting
& achievement
• Size & cost-benefit mgt.
• Activities & resources mgt.
• Project management
• Confidential intelligence
High level of success historically
BUSINESS AS USUAL
WITHIN EMPOWERED
INDEPENDENT SMALL TEAMS
DIGITAL AMOEBA PROGRAM
•Lean
•Design thinking
• Clear cut opportunity costs
• Separate policies&procedures
Fail fast, fail small,
success faster, success bigger
• Collaborative network
High level of success historically
DISRUPTIVE, not easy for big corporate
Most successful dicos and digital
masters are used to
use this modes
• Small & quick experiments
• Autonomic activities
• Intense change management

18. “If you’re not embarrassed by your first product release, you’ve released it too late” – Reid Hoffman LinkedIn Co Founder
Lean Startup Methodology as AMOEBA Way of Thinking

19. • Space for experiments
• Learn to make investment base on vision, experimentation and evidence
• Create milestones that can work
• Provide professional, mentor/coach, board of advisors and networks
• Separate and rational way to attract talent
• Create new incentive and advancement
Building Internal Entrepreneurship

20. The Rise of Team Based Organization &
Experts Optimization
SELECT
DEVELOP
INCUBATE
ACCELERATE
GRADUATE
158+ teams
913+ persons
39 teams
188+ persons
17 teams
41 persons
5 teams
13 persons
2 teams
3 persons

21. Developing digital startups ecosystem through
C2C (Creativity to Commerce) model
Proses Nurturing Quality Talent Scouting Incubation Acceleration Commerce
Facility Creative Camp Creative Centers Creative Capital
FEB 2018 23 Startups
Pre-Indigo Indigo Post-Indigo
Output 1. Digital talentdevelopment
2. Idea exploration&
foundermatchmaking
3. Startup forming
1. Idea validation
2. Product& bizmodel
development
3. Start to integrateinto
bizunits environment
1. Productready to market
2. Marketing& channeling to
acquiremarket growth
1. CompanyBuilding
2. Acquirenew& bigger
funding/ investment
18 Locations
18 Startups102 Startups
4.266
Talents
20.000
Talents
Partnership with Ycombinator
(Silicon Valley)

23. Thank you