The case demonstrates the importance of a Value Proposition for a Non-Profit Organization in shaping the organization in order to prevent them from escalating into a crisis and improve performance. The main purpose of the case is to foster a thoughtful organizational transformation through the development of an organization value proposition.
While many cases shown the importance of a value proposition from profit organization. This case illustrates that the concept of value proposition can be used to derive a purposeful organizational change and increase performances.
It was end of November 2010 when Raymon Setiadi restlessly starring at the ceiling of the boardroom in his office. In couple hours he would has an important meeting with three colleagues discussed about AITINDO performance, their startup company. It would be a serious discussion since the profit of company was not good enough although it has been running for 5 years. Moreover, his greatest concern was the condition of company that still has no specific core business. He felt they were not strong enough in business competition especially facing the rapid development in digital world and the change in consumer behavior. The company must establish the right business model and refine some key elements to successfully achieve the target and ensure the company's sustainability. Raymond rushed took his laptop and walked into the boardroom while still thinking about what to do to ensure company's sustainability. Another question was still remaining; what business model is appropriate in line with the development of digital technology?
The competition in the construction material industry is growing rapidly. More and more innovation is being applied in all area in the industry where incremental improvement is no longer an advantage but an essential to survival. Looking at this landscape, where disruption can happen anytime, Conwood Indonesia decided to disrupt themselves by taking an action to leap frog the competition by diminishing the top two most constraints in the building and construction industry: time and working capital.
Following its successful entry into the segment of premium wood using environmentally friendly materials, Derek, the incoming President Director of Conwood Indonesia, faced with the inevitable truth. The market faced structural problem with overcapacity and the influx by import produces. Situation predicted to continue to worsen with new capacity continue to enter the market from new local producers and from tax free imports. Conwood Team decided to capitalize on the unique strength of its technology, unmet demand for affordable housing and the limitation facing the Indonesia construction market. In July 2016, Conwood started to transform itself from a purely manufacturing company into Innovation driven company. With limited resources, how can Derek and his team, within 3 months, act quickly to solve the problems with new innovation while concurrently unravel the issues raised from the innovation itself?
Budi Prasetyo, CEO of HK Aston, is preparing big agenda that afternoon. He is busy coordinating big projects of his new office HK Aston. As a subsidiary company of Hutama Karya a State Own Enterprises in construction business, HK Aston have specific mission to be a focus company in managing Asphalt and Steel business. One of the big projects on the pipeline is Tanjung Benoa Toll Road in Bali.
First of all HK Aston is a newly startup company set up in 2009 with mission to differentiate services and bring more value to the industry towards better services as a group of businesses.
Main purpose setting up subsidiary company with core business of specific services is to gain focus in asphalt services which value added perceive values. HK Aston business operation is still active during the process of spin off from division under Operation Directorate to become full fledge company.
Moreover Tanjung Benoa Toll road is a big case that need collaboration between new company and existing surely they must have a strong entrepreneurial spirits towards vision of the new company.
Sukyatno Nugroho, the third generation of a Chinese immigrant family, had no high education but managed to show his uncanny ability in business from early age until he died. Through hardships, challenges, threats, and obstacles, he built a food emporium legacy, Es Teler 77, which continues today.
With over than 200 outlets all over Indonesia and several more overseas, Sukyatno spread his wings through Es Teler 77. It was hard to believe that he started this business when times were tough for him and his family. Through this business, Sukyatno’s entrepreneurial skill triumphed despite a lack of high education or training.
APMI, a non-profit organization for multimedia industry, served as a platform that associated communications among the industry stakeholders such as vendors, academics, and the government. These stakeholders were convinced that the industry would have grown faster if there were more facilities to encourage the creation of the content.
Hence Brata T. Hardjosubroto who acted as the chairman of APMI together with a government body, initiated to form a community (called MIKTI) to encourage the production of information technology-based multimedia contents. At the same time he carried out concepts into action by building a render farm facility to encourage the digital content creations.
On September 2008, the render farm facility was ready to operate, and MIKTI was due to launch. Hardjosubroto and APMI realized that they needed to stick back to their vision and mission, and let the development of the content advances through MIKTI. Together with some political and technical situations, Hardjosubroto and his team must decide on who would run the render farm facility.
Rahmat Ismail sat in his seat on flight from Honolulu to Jakarta. His mind was racing and filled with the images of various scenes of his meetings and encounters in the past few months. As senior management of Bukaka Teknik Utama (Bukaka), the contractor awarded the contract to provide and install the passenger boarding bridges for Terminal II project at Cengkareng International Airport, Jakarta, he was very uneasy about the latest predicament concerning Bukaka’s technical partner, Jetway Systems (Jetway). Jetway provided engineering design and consultation for building forty-four passenger boarding bridges for new Terminal II at Cengkareng airport. In a recent meeting, Jetway’s and Bukaka’s management sat down to renegotiate fees and division of work between the two companies for the project. The meeting went sour, Jetway management decided to pull-out from the project, leaving Bukaka with no design and a looming deadline.
Having no partner, design, nor the experience of building passenger boarding bridges, Rahmat Ismail knew that there was no way Bukaka could meet project deliverables. Pressured by time, Rahmat Ismail realized that he had several options; including acquiring a new strategic partner or acquired the technology. The latter option of course was more rewarding for company, but more difficult and riskier due to the fact that Bukaka did not have engineering experience in building passenger boarding bridges. In his seat, Rahmat Ismail weighed his options, the credibility and future of Bukaka as an engineering company depended on his decision.