Studies on Major Factors of Innovation Systems for Telecommunication Company in Indonesia

M Dachyar,Meika Syahbana Rusli,Eriyatno ,Teuku Yuri M Zagloel

doi:10.5539/ijbm.v8n9p34

Abstract

Telecommunications in Indonesia has grown extraordinarily, especially from beginning of the year 2010. This condition has made telecommunications becoming the promised business and ready facing the tight market. The competition is high due to the large mobile phone operators, which made the quality of services becoming less noticeable, severely operators are focusing on offering cost. Every year revenue per users are found to be decline, resulting innovation and improve quality of services which can increase income and sustain customers loyalty. This research used Soft Systems Methodology approach (SSM) and has implemented philosophy of Critical Systems Thinking (CST), Strategic Assumption Surfacing and Testing (SAST) and used tools of Analytical Hierarchy Process (AHP) to rank the most influential innovation factors in telecommunications company strategy, through a series of in-depth interviews with experts. The analysis of the results providing incentives to innovators which is the most important in telecommunication company's strategy in producing the best quality of services and win the competition.

Highlights

From the year of 2007 to 2011 the growth of mobile telecommunications users in many parts of the countries has descended, because the existing users have reached to 120 out of 100 inhabitants
Mobile telecommunications industry in Indonesia has grew rapidly due to low penetration of fixed line users and lack of supporting infrastructure
High competition among telecommunication companies had formed high levels of customer switching from one telecommunication carrier to another carrier, which causing a decrease of the average amount of revenue for each customer (ARPU-Average Revenue Per Unit) received by operators (BMI, 2012)

Summary

1..Introduction

From the year of 2007 to 2011 the growth of mobile telecommunications users in many parts of the countries has descended, because the existing users have reached to 120 out of 100 inhabitants. The development of mobile telecommunication Indonesia is in ranked 10 in Asia from 18 countries (BMI, 2012). This is a promising for the future. The quality and cost which served by each operator are differ, this can be impacted to customers satisfaction (Dutta, 2001). The existing loyalty customers according to Zhu (2011) have to receive some value-added products and services. Innovation in service industries have contributed to the greatest income levels of economic growth over recent years according to Brentani, 2001 in (Oke, 2007). Innovation pays more attention to what the customer wants (Leavengood, 2011)

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