Final Exam_ Managing Innovation

FINAL EXAM MANAGING INNOVATION DIGITAL LEADERSHIP ANALYSIS BUKALAPAK

Afrizon Setiawan

2171021003

Jessica Artanti

2171021013

Luthfi Aulia Faza

2171021020

Reza Aulia

2171021011

Sarsih Handayani

2171021004

PROGRAM STUDI MAGISTER MANAJEMEN UNIVERSITAS BAKRIE JAKARTA 2018

CHAPTER I INTRODUCTION

1.1 Background

The defining traits of a successful leader used to be a high performance on execution, strategic and business acumen and becoming successful P&L owner working towards increasing the bottom line. Then there was a realization that leaders also need to be emotionally intelligent, self-aware, build healthy innovative teams through trust and conflict management to achieve all of the above. There is an expectation of conscious capitalism from them, i.e improving communities along with building businesses. This movement will continue on rapidly. In addition to this, now, there is expectation of excellence in another dimension from successful future leaders. Digital Leadership. Digital means reorganizing the business ecosystem. Digital is more than just technology. Digital refers to the ways in which technology is now being used to create value across functions. Digital leaders will be in high demand as business increasingly relies on digital technologies. These leaders will have to be savvy with technology, data-driven and inspire teams to drive transformation and business outcomes through experimentation and multiple iterations. They will need to incorporate data, agility and design-thinking aggressively to redefine strategies and business models. Before moving onto digital leadership, if we step back and see what leadership is in general it says that leadership has universal characteristics and theories that are timeless. First is charismatic leadership, a charismatic person possesses a rare gift that allows them to influence followers while inspiring loyalty and obedience. There are several universal skills that are worth mentioning for leadership, such as: (1) motivational skills; (2) team building; (3) emotional intelligent.

1.2. Objective

The broad objective of the study is to analysis the type of digital leadership ini digital business

CHAPTER II ORGANIZATIONAL PROFILE

2.1. Company Profile Bukalapak Bukalapak is one of the leading online marketplace in Indonesia and a Unicorn company, owned and run by PT Bukalapak.com. Bukalapak literally means "open a stall" in Indonesian. Anyone can open an online store to then serve prospective buyers from all over Indonesia either unit or in large quantities. Individual or corporate users can buy and sell all type of products, both new and used. Bukalapak was founded by Achmad Zaky and Nugroho Herucahyono in early 2010 as a digital agency division named Suitmedia, based in Jakarta. Bukalapak has only been a Limited Liability Company. In September 2011, After standing more or less a year, Bukalapak received additional capital from Batavia Incubator (a joint venture of Rebright Partners led by Takeshi Ebihara, Japanese Incubator and Corfina Group). In 2012, Bukalapak received additional investments from GREE Venturesled by Kuan Hsu. In March 2014, Bukalapak announced an investment by Aucfan, IREP, 500 Startups, and GREE Ventures. Not long ago from the news, on March 18, 2014 Bukalapak also launched a mobile app for Android . The application known as mobile Bukalapak was created specifically for the sellers to facilitate the seller in accessing his wares and transact via smartphone. Since it was first launched until July 3, 2014, the application has been downloaded by more than 87 thousand users of Bukalapak. Although it has only been established for 3 years, Bukalapak has a good reputation in terms of customer service and its easy-to-access website. Bukalapak also over time, growing with newest innovations to facilitate Bukalapak users for the transaction. On June 25 2014, Bukalapak adds the Quick Buy feature, which allows buyer to buy goods without having to register new account. When the page

pops up, just fill in the purchase data and buyer selects the Buy Without Account tab. In this stage, buyer simply enters his/her active email and detail of shipping address. The active e-mail will be used to send the payment bill and to contact the buyer in case the transaction error. Therefore, the email is expected to be filled correctly, because it will affect the verification of the transaction. Bukalapak has a program to facilitate the existing SMEs in Indonesia to conduct transactions on sale and purchase online. This is because online transactions can make it easier for SMEs to sell their products without having an offline store. For those who already have an offline store, Bukalapak expects that the site can help increase the offline store sales. From Emtek's 2015 financial statements (49% owners of Bukalapak shares), it is known that Bukalapak has obtained investment fund from Emtek totaling up to Rp 439 billion. However, in 2015, Bukalapak is still losing Rp 229 billion, with revenues of Rp 6.4 billion. Bukalapak CEO Achmad Zaky announced on Wednesday that the ecommerce platform had officially become Indonesia’s startup unicorn, as the company was now valued at over US$1 billion. However, Achmad refused to disclose information regarding the investors. This achievement has made Bukalapak the country's fourth unicorn startup after ride-hailing app Go-Jek, online booking platform Traveloka and e-commerce platform Tokopedia.

2.2. Organizational Structure

Gambar 1. Osrganization Structure of BUKALAPAK

CHAPTER III REVIEW OF LITERATURE

While the need for change is digitally driven, it can only be achieved through people. The role of leaders is therefore pivotal. To become digitally sustainable, businesses need leaders who embody the agile mindset needed to lead and sustain seismic cultural change and who can engage their people in the journey Research highlighted by the Harvard Business Review backs this up, showing that the greatest challenges facing companies aren’t access to superior technology; they come from top-down structures, an inability to experiment, limited change management capabilities, legacy systems, a risk-averse culture, and an inability o work across silos (HBR, 2016). There’s no easy fix; the change required is fundamentally about building a new culture and engendering a new mindset that will support the process of ongoing change. Organisations must disrupt legacy systems and hierarchies to become digitally sustainable, transforming into open, interconnected networks populated by a fluid workforce and led by a new profile of leader. Korn Ferry (2018) developed the Digital Sustainability Index to support leaders as they navigate the journey towards building a ft-for-future business. Based on a metaanalysis of nearly fve decades’ of experience and data, the DSI redefnes transformation in the context of signifcant and ongoing digital change by establishing the fve critical dimensions of digital sustainability: discipline and focus; agility; connectivity; openness and transparency; and empowerment and alignment. These fve dimensions create the organisational conditions for businesses to thrive through ongoing change Sementara kebutuhan untuk perubahan didorong secara digital, itu hanya dapat dicapai melalui orang. Karena itu peran pemimpin sangat penting. Untuk menjadi berkelanjutan secara digital, bisnis membutuhkan para pemimpin yang mewujudkan pola pikir lincah yang dibutuhkan untuk memimpin dan mempertahankan perubahan budaya seismik dan yang dapat melibatkan orangorang mereka dalam perjalanan

Penelitian yang digarisbawahi oleh Harvard Business Review mendukung hal ini, menunjukkan bahwa tantangan terbesar yang dihadapi perusahaan bukanlah akses ke teknologi yang unggul; mereka datang dari struktur top-down, ketidakmampuan untuk bereksperimen, kemampuan manajemen perubahan yang terbatas, sistem warisan, budaya yang menghindari risiko, dan ketidakmampuan bekerja lintas silo (HBR, 2016). Tidak ada perbaikan yang mudah; perubahan yang diperlukan pada dasarnya adalah tentang membangun budaya baru dan melahirkan pola pikir baru yang akan mendukung proses perubahan yang sedang berlangsung. Organisasi harus mengganggu sistem dan hierarki warisan untuk menjadi berkelanjutan secara digital, mentransformasikannya menjadi jaringan yang terbuka dan saling berhubungan yang dihuni oleh tenaga kerja fluida dan dipimpin oleh profil pemimpin yang baru. Korn Ferry (2018) mengembangkan Digital Sustainability Index untuk mendukung para pemimpin ketika mereka menavigasi perjalanan menuju membangun kaki untuk bisnis masa depan. Berdasarkan metaanalisis pengalaman dan data selama hampir lima dekade, DSI mendefinisikan kembali transformasi dalam konteks perubahan digital yang signifikan dan berkelanjutan dengan menetapkan lima dimensi kritis keberlanjutan digital: disiplin dan fokus; kelincahan; konektivitas; keterbukaan dan transparansi; dan pemberdayaan dan penyelarasan. Dimensi lima ini menciptakan kondisi organisasi bagi bisnis untuk

berkembang

melalui

perubahan

yang

berkelanjutan

Gambar 2. The Five Dimensions of Digital Sustainability

These leaders are comfortable in ambiguity, as both the internal and external business conditions rapidly mutate. They engage and persuade their people in the change vision and cultivate new ways of thinking and working to support the process. And they do this again and again by deploying strong situational and emotional awareness to anticipate and address business and interpersonal challenges, powered by agile thinking. It’s tempting to think that this leadership profle can be found fully-formed among today’s leading digital businesses. But Korn Ferry (2018) research suggests that leaders of such frms—‘born digital’ leaders—can be too narrowly specialised (Vickers, 2016). Instead, businesses need to cultivate this mindset, rather than buying a set of experiences. It’s the same mindset displayed by great leaders of innovation, agile leaders and leaders who leverage diversity through inclusion. But while businesses once saw these leaders as a “nice to have”, the digital imperative has established

the business case for investing in developing this type of leader. People are the key to unlocking these benefts; the DSI dimensions describe the essential organizational conditions but great digital leaders must operationalize them for success. Leadership styles that emphasised precision and excellence of execution through hierarchical decision-making now pull against the flexibility and inclusiveness leaders need to empower the digital-age workforce. Drawing on the Korn Ferry Four Dimensions of Leadership and the Korn Ferry Assessment of Leadership Potential, we analysed the traits, competencies and drivers of more than 500 digital leaders, and compared them against population norms from our 4.5 million data point assessment database to create a distinctive profle of the qualities needed for the digital age. Traits guide an individual’s behaviour, but can at times be difcult to observe, whereas competencies are observable skills and behaviours required for success at work. Drivers are the deep internal values, motivations, and aspirations that influence a person’s choices. Para pemimpin ini merasa nyaman dalam ambiguitas, karena kondisi bisnis internal dan eksternal bermutasi dengan cepat. Mereka melibatkan dan membujuk orang-orang mereka dalam visi perubahan dan memupuk cara berpikir dan bekerja baru untuk mendukung proses. Dan mereka melakukan ini berulang-ulang dengan mengerahkan kesadaran situasional dan emosional yang kuat untuk mengantisipasi dan mengatasi tantangan bisnis dan interpersonal, didukung oleh pemikiran yang gesit. Sangat menggoda untuk berpikir bahwa profil kepemimpinan ini dapat ditemukan sepenuhnya terbentuk di antara bisnis digital terkemuka saat ini. Tetapi penelitian Korn Ferry (2018) menunjukkan bahwa para pemimpin seperti itu — para pemimpin 'digital yang baru lahir' dapat terlalu terspesialisasi (Vickers, 2016). Sebaliknya, bisnis perlu mengembangkan pola pikir ini, daripada membeli satu set pengalaman. Ini adalah pola pikir yang sama yang ditunjukkan oleh para pemimpin besar inovasi, pemimpin yang gesit dan pemimpin yang memanfaatkan keragaman melalui inklusi. Tetapi sementara bisnis pernah melihat para pemimpin ini sebagai "baik untuk memiliki",

keharusan digital telah membentuk kasus bisnis untuk berinvestasi dalam mengembangkan jenis pemimpin ini. Orang adalah kunci untuk membuka manfaat ini; dimensi DSI menggambarkan kondisi organisasi yang penting tetapi pemimpin digital yang hebat harus mengoperasionalkannya untuk sukses. Gaya kepemimpinan yang menekankan ketepatan dan keunggulan pelaksanaan melalui pengambilan keputusan hirarkis sekarang berlawanan dengan fleksibilitas dan inklusif yang dibutuhkan pemimpin untuk memberdayakan tenaga kerja era digital. Menggambar pada Korn Ferry Empat Dimensi Kepemimpinan dan Penilaian Korn Ferry tentang Potensi Kepemimpinan, kami menganalisis ciri-ciri, kompetensi dan driver dari lebih dari 500 pemimpin digital, dan membandingkannya dengan norma-norma populasi dari 4,5 juta basis data penilaian titik data kami untuk membuat profil khas dari kualitas yang dibutuhkan untuk era digital. Sifat memandu perilaku individu, tetapi kadang-kadang sulit untuk diamati, sedangkan kompetensi adalah keterampilan yang dapat diamati dan perilaku yang diperlukan untuk sukses di tempat kerja. Pengemudi adalah nilai-nilai internal yang mendalam, motivasi, dan aspirasi yang memengaruhi pilihan seseorang.

Gambar 3. The unique Characteristics of High-Performing Digital Leaders

CHAPTER IV DISCUSSION Being a leader is about so much more than being in charge of people. It’s a whole new level of responsibility that not everyone is cut out for.Bukalapak as a unicorn startup is a rare thing, much sought after by venture capitalists all over the world. What do the founders of there companies that have been valued over one billion dollars have in common? The statistical rarity of starting a company that eds up with a sky-high value may be uncommon but the habits and traits held by the startup founders of there companues are very accessible to anyone. The Five Dimensions of Digital Sustainability :

Agility. Agile businesses are designed to move quickly in decision making and execution, and they rapidly adapt to market and environmental changes. Structurally, this means reporting lines are streamlined to optimize fluid

collaboration and speed input on planning and delivery. People in agile organizations take risks, are customer-centric, and continually acquire new skills to perform in an ever-changing climate. Bukalapak know that being agile it’s a must, especially in this VUCA world, instead Bukalapak is a Unicorn Startup. Connectivity. Connected businesses create ecosystems made up of networks of people from inside and outside the organization. Without defined roles or traditional organizational constructs, people in connected organizations actively collaborate with, and contribute to, the outside world, and even co- develop solutions with clients, partners, and competitors to accelerate delivery. Discipline & Focus. Organizations that successfully transform for a digital world are clear about what digital means to them. Disciplined organizations define their desired outcomes and focus relentlessly on achieving them. They are disciplined about execution. They decide quickly on what to invest in, then draw upon their strengths to implement decisions efficiently, effectively, repeatedly, and at scale. As a result, employees are inspired by their leaders and their forward- thinking approach. Empowerment & Alignment. From the board to the front line, empowered organizations are clear on four things: what the business stands for; what it’s trying to achieve; how to execute its strategy; and how the strategy is being implemented. Employees know what their future holds within the business, how they can contribute, the skills they need to achieve their goals, and what support is available. They

are

enabled

to

make

the

right

decisions

in

the moment without the need for continuous guidance. At the company level, this is the dimension most correlated with overall DSI score. Openness & Transparency. Open organizations understand that the digital economy means brands are public property, so they are deliberately transparent about their ethics, responsibilities, decisions, and practices. Everybody in an open

organization has a voice and is encouraged to collaborate, solve problems, and think creatively to meet customer expectations.

TRAITS - RISK TAKING “Are willing to take a stand, or take changes based on limited information”. According to the Korn Ferry, being a risk taker is one of characteristic of digital leadership. Achmad Zaky as CEO of Bukalapak has that characteristic. He hit upon the E-commerce solution of Bukalapak and shared his idea with many of his closest friends in order to raise funds. Everyone disregarded this brilliant notion and even claimed it would not work. All except an old senior high school friend, Nugroho Herucahyono. Nugroho truly believed in Zaky’s vision and invested in the idea. Where Zaky overtakes Nugroho is risk-taking is when, after many retail outlets and online stores had joined Bukalapak, the internet online business in Java was still very small. Money was running out and even Nugroho was thinking of bailing. Softbank Corp. of Japan saw the potential of the venture and offered capital to keep the company afloat until the internet business side was up to speed. Zaky’s risktaking trait has seen the company grow to become valued at nearly $2 billion.

COMPETENCIES - STRATEGIC VISION “See ahead to future possibilities and translate them into breakthrough strategies” To be able to achieve his vision he must be able to continue to motivate his team. For this reason Zaky often emphasized to his team, that Bukalapak had a vision and mission in supporting SMEs in Indonesia. This is the biggest motivation of the company and its friends, who work and work at Bukalapak "The purpose of this business is something that needs to be considered so that the existence of these goals can motivate in realizing it," he said.

DRIVERS - CHALLENGE

“Are motivated by achievement in the face of tough obstacles” Achmad’s journey to success was long and eventually worth it. He said that success is not a one-stop journey and definitely not a straight line. It can’t be a shortcut, or even a tiny sprint. However, the journey to success is more of a marathon, and as businesspeople we need to keep our heads up, breathe in, and stay spirited and motivated. There may be bumps and twists in the journey to success, but with forbearance and courage, we will definitely make it, just like Achmad did.

CHAPTER V CONCLUSION

After analyzed about Leadership in Bukalapak, in this VUCA world Achmad Zaky as CEO has cara yang mampu membuat Bukalapak tetap stabil bahkan meningkat, sebagai pemimpin startup Achmad Zaky mempunyai jiwa entrepreneurship. Achmad Zaky memahami bahwa di VUCA world ini, seorang pemimpin harus memiliki kemampuan untuk bekerja dengan cepat, berinovasi, melihat pasar dan paham akan mangsa pasar. Achmad Zaky hit upon the E-commerce solution of Bukalapak and shared his idea with many of his closest friends in order to raise

funds, he also see ahead to future possibilities and translate them into breakthrough strategies, Achmad Zaky did it to keep the company stable and exist.

REFERENCES

Accelerating the Pace and Impact of Digital Transformation (2016). Harvard Business Review. Harvard Business School Publishing. Crandell, Stuart S., Michael Distefano, Alan Guarino, Mwamba Kasanda, Jean-Marc Laouchez,Tania Lennon, and Jeanne McDonald (2016). The Trillion-dollar Difference. Korn Ferry: Los Angeles.

Korn Ferry Institute (2018). Digital Leadership In Assia Pacific, Korn Ferry: Los Angeles. Vickers, Fiona, David Zes, Kai Hammerich, Julio Moreno, Dana L Korn Ferry: Los Angeles andis, Barbara Ramos, James L. Lewis (2016). Leaders for a digital transformation . Korn Ferry: Los Angeles. https://www.thejakartapost.com/life/2018/01/11/bukalapak-officiallybecomes-indonesias-fourth-unicorn-startup.html https://www.oxan.com/media/1996/the-korn-ferry-digital-sustainability-lndexdigital.pdf https://techcollectivesea.com/2018/07/09/5-effective-traits-southeast-asianstartup-unicorn-founders-share/ http://www.intipesan.com/achmad-zaky-mencapai-kepemimpinan-yang-baikberkat-kerjasama-tim/ https://www.indonesiatatler.com/society/Bukalapak's-Achmad-Zaky-Shares3-Tips-To-A-Succesful-Business