BUMN Marketing Award 2013

USING APPROPRIATE MARKETING STRATEGY, TELKOM RULES BISNIS TIMES

“Telkom Named the Best BUMN on Marketing 2013 and the Best Chief Marketing Officer 2013”

To win the dynamic market, Telkom implements Marketing Paradox Telkom and the adaptive innovation strategy, and strong relationship with customer.

In the midst of intense competition in telecommunications sector, PT Telekomunikasi Indonesia Tbk (Telkom) still recorded a remarkable performance in the first half of 2013. Profit for the period amounted to U.S. $ 7.12 trillion, up 10.84 percent over the same period of the first half of 2012, which was only amounted to Rp 6.42 trillion.

The profit increase was supported by revenue increase to Rp 40.16 trillion, which is 9.36% increased, compared to the same period the previous year which is only Rp 36.72 trillion in amount. The double-digit profit growth was so much higher from the capital market analysts’ expectations where the telecommunications industry is currently only 1 digit growth.

As of July 12, 2013, Telkom’s market capitalization has increased to 68% from 2011. Telkom also strengthened its position with the share price of Rp 11,850 per July 12, 2013. Telkom has gained recognition from national and international public.

2013 Three Main Programs

Telkom as Telkomsel’s reinforcement, broadband development and international expansion is the business focus in 2013. The third focus was chosen to maintain the performance growth in 2013 over the average industrial growth.

Broadband development program focused on Indonesia Digital Network (IDN) 2015. Through IDN 2015, Telkom projecting 20 million true broadband accesses and fiber optic network construction via Indonesia Digital Ring (ID Ring) until the end of 2015. Ring ID was deploying Telkom fiber optic backbone infrastructure to connect all Indonesia. Then, IDN was also equipped by Convergence ID which was a network service node infrastructure development towards integrated NGN (Next Generation Network) for multi-screen and multi-service.

For international expansion, some countries has been carried out, such as East Timor, Australia, Singapore, Hong Kong and Myanmar, while Telkom recently also officially entered Malaysia. In their countries, Telkom entered through business schemes Mobile Virtual Network Provider (MVNO). There was also the target market was the millions of Indonesian citizens who live in Malaysia.

Building a Digital Ecosystem as Future Business

In order to support government programs MP3EI, Telkom presented a masterpiece named Digital Network 2015, as a breakthrough connectivity to build a better life and increase national productivity. Indonesia Digital Network (IDN) was a vision of Telkom’s true broadband infrastructure development in end-to-end user way (user terminal, accesses, transport and service). IDN consisted of three main components, namely the Access Id, Ring Id and Con Id.

In order to explore new business potential, Telkom’s Directorate of Enterprise and Business Service introduce Indonesia Digital Society (IndiSo) and Indonesia Digital Ecosystem (IndiCo) program through Indonesia Digital Network. Indonesian program introduces the Digital Society (IndiSo) and Indonesia Digital Ecosystem (Indico).

IndiSo has three sub-programs namely IndiSchool, IndiPreneur and IndiFinance. IndiSchool is a wifi-based procurement internet access program in 100,000 schools throughout Indonesia as well as providing a variety of educational content. As of July 2013, the growth of the school with wifi access supported by IndiSchool reached 39.4 %, or approximately 16,000 schools including universities spread across 50 major cities and 14 remote areas.

Telkom also has Indico, which consists of IndiCloud, IndiBanking, IndiConnect program. Indico has a business stream in the provision of IT services Managed Service Data Center and Cloud Services.

Marketing 3.0 as the Core Paradigm

Telkom’s strategy to win the competition was to think mega (strategic thinking), which was more oriented to the needs of communities (nation and state), instead of customer (macro) and the company (micro) only. The whole range of Telkom believed that they are always there for Indonesia, and more specifically, Telkom was exist to provide benefits to all mankind (rahmatan lil ‘alamin).

Therefore, Telkom implement contextual leadership style, namely Great Spirit and Grand Strategy. It was also a strategic thinking compiled through strategic management process. “To be able to think mega, we must have the spirit of giving, while mega thinking means that we apply the concept: the more you give, the more you get,” said Arief Yahya.

Telkom also did organizational culture transformation through The New Telkom Way, which included the spirit of “always the best” as basic belief, while Great Spirit as a core value. On the other words, Telkom should give you the best wherever they are.

Implementation of Marketing Paradox to Improves Corporate Value

Any constantly changing consumer behavior and increasingly dynamic business landscape always promises new challenges to Telkom. From time to time, the customer’s expectations to product or service continue to shift. The information technology development, coupled with the rapid flow of information, make customers get more intelligent so that customers’ changes acceleration becomes much faster.

In the midst of this uncertain situation, Telkom paced ceaselessly trying to find a new business pattern that could offer a balance between the various factors that seemed contrary. Then Paradox Marketing was born.

Paradox Marketing is a marketing concept that is unusual but is able to deliver exceptional results. This marketing concept invented by Arief Yahya, CEO of Telkom and has been published in a book entitled ” Marketing Paradox: Unusual Way To Win”.

Marketing Paradox application contained in Telkom’s efforts to present the product with more for less concept, which is getting abundant benefit with a cheap budgeted strategy. Arief Yahya believes that selling products at low prices is not synonymous with low income. “Many people say that low price associated with a small margin. So our challenge is to sell at low prices, but can bring in larger profits,” said Arief Yahya.

Glowing in Regional and National Awards

Telkom has shown an impressive performance. Thanks to marketing strategies 3.0 as the main paradigm that received a lot of appreciation from various institutions. Most recently, Telkom has been named as the The Best BUMN on Marketing 2013 in BUMN Marketing Award 2013 and The Best Chief Marketing Officer (CMO) 2013, Gold Winner of Strategic Marketing 2013, and Gold Winner of Tactical Marketing 2013, in the event of BUMN Marketing Award (8/27) at Hotel Borobudur, Jakarta. This event was organized by BUMN Track magazine and was fully supported by the Ministry of SOE. The bestowal was directly submitted by the Minister of SOE, Dahlan Iskan, for Telkom CEO, Arief Yahya, and Telkom Enterprise Business Director, Muhammad Awaluddin, as the Best CMO for Strategic category.

In addition, Frost & Sullivan, an international organization in the field of consulting and research-based business analysis from United States recently crowned Telkom as “Best of the Best Service Provider of the Year” in Asia Pacific ICT Awards at St. Regis, Singapore (7/17), while PT Telekomunikasi Seluler (Telkomsel) won the “Best Wireless Service Provider of the Year”.

The awards were deemed as the evidences of Telkom Group achievement and its breakthrough and outstanding services in the ICT service and industry. This achievement showed the international recognition of the commitment and the marketing strategy of Telkom Group in providing reliable services for Indonesia people.

This year, in June to be exact, Telkom achieved BUMN Innovation Award 2013.In this BUMN Innovation Awards, Telkom showed its seven featured innovations, namely Speedy Instan, Telkom Solution, Indigo, IndiFinance, Himbara-Link, UseeTV, and SATU (Cloud Computing).Telkom achieved the award in product innovation category for IndiFinance and in technology category for Indigo in SOE infrastucture sector.Moreover, Telkom also achieved Corporate Innovation Culture & Management award named Gold Level.