Formulating Digital Business Strategy for Data Center Ecosystem Sustainable Growth

Abstract

Digitization is used by almost all nations, including Indonesia, to speed up economic growth. Since the COVID-19 pandemic began, there have been an additional 21 million digital users, which has accelerated the growth of the nation's digital economy. Considering growing patterns in the digital economy, access to data centers, and wide international bandwidth, Indonesia Network (Innet) aims to strengthen data center ecosystem through Digital Ecosystem (DE) as a consolidated company. Initially, three subsidiaries were running this business, namely Digital Ecosystem (DE), Debian, and Mobile Cell. However, the unaligned business strategy at Innet Group turned competition among those subsidiaries and contributed to the underperformed revenue target. As a result, Digital Ecosystem (DE) needs to focus on creating a great digital strategy as the fundamental of digitized solutions. DE needs to have a unique value proposition related to digital technologies as a part of the strategy to be a distinguished company from the competitors. This study uses in-depth interviews with seven key people who run the strategy portfolio, policymakers, and marketing. A new proposed of digital strategies using TOWS analysis based on QSPM and Business Model Canvas (BMC) have been created based on PESTEL for macro-environment analysis and SWOT for micro-environment analysis as the fundamental strategies. By having a background business legacy in voice and connectivity in Innet Group, data center will be the new key business stream to unlocking the asset's potential for high performance for valuation and multiple EBITDA.