One million reasons to do business in Indonesia

No, this isn’t going to be a list of the one million things, but as my time in Indonesia comes to an end, I thought I would sit down and provide my perspective as to what it has been like working in the Indonesian market. Well put simply, it has been an amazing experience. Well of course I can’t just leave it at that! It has been an amazing journey and learning experience from both a personal and business perspective, learnings that I expect I will carry with me for some time.

Indonesia is an incredible place with high growth potential both for local businesses, as well as businesses and individuals from overseas looking to invest into Indonesia. There is so much happening in Indonesia and for the joint venture that Telkom and Telstra have established, we have had our own journey in navigating the business environment in this market. Like everything else, (including the traffic), establishing the joint venture in Indonesia was very much a journey, and to understand how best to navigate your path to maximise the opportunity, you need to first understand the market itself.

Indonesia is going through a significant growth phase at the moment, and Indonesia’s demographics are a great starting point to suggest they will continue to see this growth continue through a digital lens. With a population of more than 250 million people, and the average age being 28[i], there is a rapidly growing and eager young working population.

As such, this also means a growing desire to leverage new found purchasing power to determine lifestyles. This has been best represented by the penetration of mobile phones into Indonesia standing at 121%[ii] and Smartphones accounting for almost 1 in 4 of those. Indonesia, as of 2014, was the third largest “Twitting” nation and the second largest Facebook nation[iii]. This to me demonstrates a population that is highly connected and, with only a 21% Internet penetration rate, there is clearly further opportunity for Indonesia to expand the digital aspect of their lives for both public and business services.

The reason why I view these figures as important is that, as for any market to achieve success in our digital era, it needs to be connected and have a population which is digital savvy. Indonesia is clearly rapidly moving in that direction. With the fourth largest GDP in Asia (closing quickly on Japan),[iv] combined with a Government under President Jokowi, which is clearly striving to create a market open to investment and value creation, Indonesia is on its way in positioning itself as a growth centre for many years to come.

So Indonesia is a growth market and becoming highly digital, well pack your bags and head over, right? … Ok, well glad it sounds exciting but before you do head for the airport let me share my journey with you so as hopefully you can realise that success you seeking. Prior to moving to Indonesia, I had travelled to Indonesia many times - and no not just Bali before you ask – I believed I had experience in knowing what Indonesia would be like, the culture, what it meant to do business, and managing the joyous travel times between meetings. I was clearly only scratching the service when it came to understanding what it means to work in Indonesia.

Well one of my first learnings is that “jetting” in to visit and experience the working environment is simply not enough from which to draw experiences.  In fact it comes down to the actual experience of living and breathing the market, and connecting with the people to understand the real opportunity and likewise the challenges faced by the teams on the ground.

In establishing our business in Indonesia we knew there would be challenges, but we had underestimated the breadth of these challenges, as well as the amount we would need to adapt to ensure we established a path for success. As we landed on the ground to establish our business we quickly realized what we had hoped would be a few bumps in the road ended up being some obstacles in the road that would need to be navigated:

      1.       As we were working with the largest telecom provider in Indonesia, doing business would be easier. Of course we all knew it would be different to other markets, but that was why we were there to enter new markets and create new value. Shortly after we arrived however there was a change in Government, which led to a change in our partners’ leadership. This was apparently the norm given it’s a state-owned business.

      

      2.       The supply chain we were familiar with from Australia, or other parts of the world, would already be in place in Indonesia, with the recognition we would need to adjust some terms regarding language and local terms and conditions. The supply chain proved to be very different to our expectations, with vendors engaging with their distributors differently. In addition, the responsibility of managing the hardware supply chain proved to be very much the providers’ responsibility, especially given the proactive service that we were seeking to provide our customers.

      

      3.       Given we already had the support of our joint ventures partners executives, it would simply be a matter of being open for business would immediately start to drive the opportunity. Of course, given we were going to a new element of the partner’s business, there would always be some people not totally happy with our approach but that was ok as “they would simply adapt to us”.  We soon realised as the new kid on the block it was up to us to build those local relationships, establish trust and ultimately demonstrate our value to our partners and customers to encourage those partners to collaborate with us instead of seeing us as a new threat to their existing business models.

      

      4.       Business engagement would be transparent as it would be the same as many other places in Asia. It would simply be a matter of re connecting with the local representatives of our global partners and we would be ready to go. We quickly learned that many of our technology partners already had their own local partnerships established with in country System Integrators and telecom divisions, and in matter of fact, we were disrupting a model that was believed to already be working well.

      Now with all of this said the path to securing our business license took longer than we had expected, but this ended up being a hidden benefit in as it gave us the time to understand these challenges and many others as we were establishing this business. That proved invaluable as the time we gained gave us the window to understand how we could set ourselves up for success. Whether it was building one of the largest stakeholder management maps I have ever seen, or establishing a supply chain across a nation from zero, through to redefining the localised product set we would need to demonstrate relevance, all of these developments helped to shape what our business is today. Through these learnings, and the business’ ability to adapt to them, we have realised the results that I have previously shared in earlier blogs.

      The message I hope you take away from this blog is that there are a few key critical considerations when establishing your business in Indonesia:

      

      1)       Ensure you have a clear target and plan – don’t assume you know what it is as soon as you step off the plane but make sure you understand the environment you are looking to operate in and then start to shape your plan.

      

      2)      Make sure you have a solid partner you can work with who understands the market you are seeking to address and more importantly is able to help you navigate through the challenges, and equally help you to identify new opportunities you may not have originally identified in your plan.

      

      3)      Be agile. Things won’t work out the way you expect them to, so you can sit there and get frustrated, or actually look at what you can do differently to navigate the challenge or incorporate the new challenge into your plans and make it part of the goals you are looking to address.

      

      4)      Lastly, - and in my view this was one of the hardest things I had to do personally - be patient. There is a different sense of urgency in Indonesia, what I learned was that whilst I can get frustrated that things weren’t moving fast enough. I needed to find a different approach, share the goal that I was trying to achieve, and leverage the local team around us to understand how we can best reach that outcome in the fastest time possible without the traditional voice like the kid in the back seat of a car, “Are we ready yet?”

      

      I am sure other people who have worked in Indonesia will share other challenges from their experiences in Indonesia and ultimately some of their own critical considerations but for me this is what gave me increased confidence in our ability to succeed. With these considerations in mind, I believe businesses have a great chance to realise the opportunity that is Indonesia. An opportunity that has over one million registered businesses of different sizes, an opportunity that if approached with eyes open can result in businesses being part of an exciting growth market, all of which surely must be enough of a reason to want to do business in Indonesia … right?

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[i] Source: worldometers.info/world-population/indonesia-population

[ii]  GSMA Intelligence

[iii] Sating Silang & BBh Asia Pacific

[iv] CIA Factbook 2015

A Bridge Too Far

If you haven’t seen the film, it’s a classic and although the film is about a group of soldiers being dropped at a bridge further than they are supposed to, the part I relate most to business these days is the scene when they are asking what is on the other side of that bridge. No one knows, but someone is going to have to go over there. Of course no one wants to, but eventually a brave soul takes the steps to cross the bridge ready to try and blow up the bridge but fully expecting to be shot before they get there so he goes in with guns blazing. You will now be asking what does that have to do with people and technology. Put simply, the way we work can sometimes feel like that bridge too far.

In my own journey, I have worked in sales functions, led products and marketing teams and most recently, headed up operations – all disciplines that have a unique view on the business that they are tasked with supporting. From my time in sales, we focused on ensuring we could get the deal done and ask the products team to figure out how we build a product around it. In a products and marketing capacity, our focus was very much on understanding how we could best define the product and throw it over the wall to operations who will figure out how to build it. And in operations, it is the task of figuring out what has been requested and how this is going to actually work with the systems, tools and people a business currently uses. When an operations team then hands it back to sales – proud that they have been able to deliver the customer requirement with a marvelous “Ta-da it’s ready” to which sales may responds with a “That’s not what we asked for”. This is kind of like playing Chinese Whispers as a kid and giggling at how the message became so fragmented when it reached the start of the circle again. But in business we don’t tend to giggle – well not as much anyway!

For those of you familiar with the film “A bridge too far”, and equally familiar with these functions, you may be thinking a bridge crossing a river doesn’t do these differences justice. I would agree in fact that we sometimes view these as worlds apart instead of merely crossing a river. So let’s extrapolate this analogy. You aren’t merely trying to cross a bridge between functions, but actually we are asking people to don a spacesuit, board a rocket and cross a space bridge not knowing how they will be received on the other side or even if they will understand us. But don’t worry we are armed and dangerous with our own knowledge of how things should work in the business in order for us to do our job, right?

Start-up businesses provide a great learning for established businesses, in start-ups you simply don’t have a choice. You have to cross that bridge or otherwise see your start-up fail. And often in start-ups, it requires people who are working across functions in order to keep the business moving at pace. If the business loses momentum, market confidence can rapidly decline and in turn customers may be lost, resulting in a negative position for the business. Employees of a start-up have no fear because there is simply no time to be fearful or worry about how requirements will be misinterpreted. A start-up ensures these worlds overlap so as decisions are made quickly and together to ensure the business is on board with the outcome we are looking for.

I am sure there will be many of you out there thinking, but a start-up is easier they don’t have the scale we do, they don’t have the complexity of services and systems. Well who put that complexity there, or the systems that you are using? What if we could sit together and redefine what that way of working could look like? Forget who was the person who made the decision or who created the complexity, imagine a world where you could change the business model you work in, below are a few of my suggestions on how you can improve that collaboration.

Stop focusing on the customer and think about the one element you have in common no matter what your function is – the customer. It doesn’t matter if you are the lawyer, IT manager, finance manager, marketing manager or sales manager, this is the one aspect that any function will have in common. I would challenge anyone to identify a function that doesn’t impact a customer directly or indirectly. If you are going to say janitor then my answer is first impressions are everything – what if your customer visited a messy office or overflowing bins? What would that perception mean for your initial conversation?

Take a walk in the other team’s shoes – I will always remember a quote from my coach (you know who you are). In any discussion, no matter how much we disagree there will always be at least 10% truth in what the other person is saying. Pause for a moment and reflect on that concept, what could be that 10% from the other function, once you start there you may quickly find there is more truth or more importantly more alignment between your functions you are merely looking from different lenses toward the customer.

Define what is truly important. I am always amazed at the resolute stand we can make between functions to say we can’t change this or this is a deal breaker, with people left scratching their heads wondering where did that come from? Consider as a cross functional team what are key factors for success as well as failure for any activity undertaken. Agreeing these as a group provides guidance to a business and encourages ideation to be brought into a forum seeking to help realise the benefit vs. attending an episode of Dragons Den (Don’t know what it is … watch some of the video’s gulp!)

These are just a few examples based on my experience and I am sure there are many more suggestions from people out there, but the purpose of these examples is to get you thinking, looking out beyond your realm of influence and seize the opportunity.

What I am saying is this is a call for volunteers, volunteers to cross the bridge, unarmed, vulnerable and open to helping the other-side achieve their outcome with the knowledge of not what your world needs but what your world can provide. Take the leap and move to a role where you can challenge yourself to help another function succeed based on your diverse skills. In time, this bridge crossing will be two ways so when you are volunteering you will need to encourage others to follow your example and cross the bridge the other way. This mindset of adding value to encourage collaboration and ultimately drive the outcome the business is looking for namely sustainable growth and serving your customer, all of this resulting in a business realising that no bridge is too far. 

I Believe I Can Fly!

Seriously, I really do believe I can fly and one day I am sure we will figure out how. Me losing some weight would probably be a good start, that and lots and lots of technology! I am often asked about my open mindset approach when going into meetings to work out challenges and how I achieve this. Well, like the title, if you believe you can fly and you have a desire to achieve the outcome, it will happen in one way or another!


I have been watching, with great interest, at how two very different types of businesses attempt to adopt innovative approaches to new technologies. The first is the “start-up mentality” and the second is what I would call the “large business mindset” group. The “start-up mentality” companies are the ones who give the appearance of not facing the challenges of large businesses –but I can tell you those challenges exist! The “large business mindset” group have a tendency to look at business change or confronting challenges as “baggage that must be addressed” whilst managing the day to day aspects of a business operation.

In today’s market, businesses face many challenges and it is interesting to watch how the “people factor” of problem solving always gets in the way of solving the actual problem – I know weird, right? For many people, problem solving is a clinical discussion. “We can do it” or “we can’t”, simple as that. Yet, when “we can’t do it” is the only solution or answer, who wants to inform the organization, who owns the problem, that they cannot be helped? Consider that for a moment. Recognize yourself there already, sighing as you go into your next workshop, anticipating a hard slog or another round table debate? It is, for this reason, why many large businesses tend to look at start-ups with a great degree of jealousy. They see start-ups appearing to act nimble and addressing solutions, while they claim that they cannot move as quickly due to their size, scale and complexity. Well, I am here to tell you that a large part of that claim is simply crap. I have seen and worked in my share of complex IT systems or business processes. If you really want to achieve something you can, it may not look or work the way you thought it would, but the goal is always achievable.

What makes these start ups more successful in addressing business issues? Their attitude! They are walking into a room, not to attend a meeting, but to solve a problem. That mindset is what is driving the first aspect of their success. The second has to do with people – ever had the feeling, during a meeting that people are simply brought in to make sure everyone is represented? It happens often. People are fearful of what decisions might get made, on their behalf, that could impact how they work or what they need to do. In a start-up environment, yes of course everyone wants to chip in and be involved, but there is too much going on to have everyone involved, hence, more often than not, you will hear of meetings with only 2 or3 people looking to solve a problem, informing others of the recommendation to validate if there are any “serious” impacts or risks in moving forward. Plain and simple. So, if you ever sat in one of those meetings asking yourself – “what am I doing here?” well, more often than not, with all of those people, more actions are created and more delays become the outcome and ultimately the problem is not solved. It is then merely a case of how we plan to progress forward. Again, within a start up environment, time is literally money, hence a meeting to agree to have another meeting is not an outcome, and it means delaying a decision which ultimately could mean failure of the business. (This too should and could be applied to large business, but you already know that.)

Here in resides the ultimate challenge of large businesses, “how do you drive a sense of urgency?” – not to have everyone work harder – but an understanding that we simply must walk out of this room with an agreed view on what will be done and by whom and by when to resolve the problem or challenge. Can you imagine having the confidence in your colleagues knowing that as a team you had not only solved the problem but that you and your colleagues are about to go out of that room and make that outcome happen? Imagine achieving that same result four, five or even six times? At what point does it become business practice when staff start walking into a meeting with: a. fewer people and b. the confidence knowing they have been chosen to solve a problem? This would surely start to drive a sense of ownership in solving a problem and ultimately contributing to the success of a business.

I surely hope those of you reading this are not thinking “Well of course Nathan, it is merely a case of throwing money at it!” because that is absolutely not my point at all. If it was, then in most businesses this would result in just one aspect of the decision… where some parts would require reallocating funds. What then happens when the actions require reengaging the customer or supplier, or managing a process differently, or finding work arounds? What then? Can you just throw money at it? I think not. Having worked in both start up businesses and more mature organizations, the challenges remain the same - it is the mindset and approach we take and the people we choose to engage with which ultimately drives the right types of outcomes.

For these reasons I always encourage an organization to have a mix of people who have worked in start up businesses and understand the risks of failure, combined with people who have worked within large corporate for some time and know where the proverbial “skeleton’s” are hidden. It is very rarely the case when business challenges or problems cannot be solved. We simply need the right people around the table, combined with the right mindset, and the focus on business outcome and success. I appreciate the “easier said than done” factor, however, look at who you have sitting around your table. Do they truly believe in what you are trying to achieve? Do you have the right balance of passion and insights? A balance of managing risk vs. ability to execute? And most importantly, can you see one common agenda and view on how your business / team / or idea will succeed – if not, you are in for one hell of a journey or a path to continuous frustration.

The most important attribute of all though, don’t give up! I have met some phenomenal problem solvers out there which I can break into two groups:
• Those that can solve the problem but feel they face a wave of nay sayers or blockers making the outcome all but inevitable;
• and, those that can solve the problem and in the face of setbacks, identify a different path to get to the outcome that is right for the business.

Now, obviously I am not saying those in the 2nd category always succeed, but if you can look inside yourself and honestly say you have tried different approaches and are still not getting anywhere, then you are trying to solve the problem in the wrong place and we are back to the initial challenge of having the right people involved to begin with. No business is perfect, they all have their ups and downs but it is the businesses that have the ability to rally to a cause, empower their teams to lead where their expertise lies and drive business outcomes that ultimately succeed.

One day I am sure I will find the right group of people to solve my challenge, “I believe I can fly!” I just need some bright people to help me figure out how and then I will need to decide whether the benefits outweigh the risks? Believe in yourself and believe in the fact that there is always an answer. Your answer simply depends on your understanding of the outcomes and ensuring you have the right mindset and ownership around the table – now, if you will excuse me whilst I prepare for my first flight!

Different Path same Destination

Our world is changing dramatically, Stock Markets have become more like Roller coasters, many businesses are now satisfied with sustainable business models as opposed to rapid growth and many technology companies are suggesting that hardware and software sales could be in for a difficult time. The result of all of this? Zero to Low confidence within businesses on their journey of business evolution as they continue on their journey in the increasingly global and competitive landscape. At this point I can already hear a few people wondering how this has anything to do with the common topic of my blogs, the impact of technology on the world we live in? Well it does, so let me explain.

Today’s businesses and technology are intertwined to such a degree that you can’t look at one without understanding the implications, limitations or even changes required to the other. Many CXO’s that I speak to lately are concerned with the balancing act they are facing – how do they invest in technology to ensure they can support their business requirements but at the same time manage a tight rope balance of cost vs. business benefit without knowing what is happening in the next 3 months let alone 3 years!

Many businesses are offering increased flexibility in their products but they are equally concerned with their own business models and outlook resulting in their own business concerns. On that basis it is time to throw out the guide book and reconsider business models for a new era, a period of sustained unpredictability as a vehicle for change. I have said it before in one of my blogs, we as individuals and society drive technology, we should not accept that technology will limit our own choices or for that matter determine our own path to success. Consider for a moment what would happen if we knew our oil would run out (I know not a pleasant thought!), we would adapt and look at alternatives to ensure our needs were met ensuring we could continue with our journey as we already are starting to do so!

Each and every business has a vision or a goal they are seeking to achieve over a 3 to 5 year period, many are concerned that the current instability in the market is placing that goal at risk. What is required is for businesses to reassess the path they are taking to achieve their goal. It may take longer, it may require acceptance that they are evolving from a straight highway to a windy mountain path, which requires a more graduated approach to ensure the business does not slip backwards as it progresses towards its goal.

Once we have identified the new path to achieve our goal and/or vision businesses can then look to what role technology could and will play in supporting the journey along that path. This is a crucial pause point, looking to technology in the same way as we have done in the past will simply result in reliving “Groundhog Day” (for those of you who don't understand that analogy watch the movie!). We need to look at the principles of what technology can provide in its simplest form and redesign the manner in which that technology is both delivered/implemented and supported. What I mean is we need to look at how we reshape the use of technology, from its commercial, integration and utilization aspects. Business are looking for new ways of working as they seek to break the cycle of change they find themselves in today with various factors pulling their decision making in different directions.

Technology can support businesses in continuing their journey to their goal by ensuring that communication and IT developments are not static and that they can be moulded to the needs of the business. The end benefit of this approach is a return to three year planning, an increased confidence in formulating longer term decision making and commitments … Why? Simply because if you know that your business can access levers across your organization from commercial, technology, geography and people in order to adapt to your changing business environment then your business will equally grow in confidence and will increasingly develop an inherent ability to adapt and anticipate market change.

On that note I leave you with two final comments – Stay on your path, your vision is the key to the sustainability of your business and remind yourself that technology is only an enabler. Accept that the path to realizing your goal may change and that it is your adaptability as a business that will result in the greatest chance of achieving success!