LEVERAGING NEWBUSINESSMODELSTOENHANCEPROFITABILITYIN COHORT-BASEDCOURSESEDTECHBUSINESSESSTUDYCASE:PTDIBIMBINGDIGITALINDONESIA FINALPROJECT Inpartialfulfilmentoftherequirementsforthemaster’sdegreefromInstitutTeknologiBandung By ZakyMuhammadSyahStudentID:29322057 (MasterofBusinessAdministrationProgram) INSTITUT TEKNOLOGI BANDUNG January 2024 LEVERAGING NEWBUSINESSMODELSTOENHANCEPROFITABILITYIN COHORT-BASEDCOURSESEDTECHBUSINESSES STUDYCASE:PTDIBIMBINGDIGITALINDONESIA By ZakyMuhammadSyah StudentID:29322057 (MasterofBusinessAdministrationProgram) ABSTRACT IntherapidlyadvancinglandscapeoftheglobalEdTechindustry,markedbysubstantial growth,entrepreneursfacethecriticalchallengeofestablishingnotjustsustainablebut highlyprofitablebusinessmodels.Thiscomprehensivestudydelvesintotheintricaciesof howDibimbing.id,aprominentplayerintheEdTechsectoroperatingonacohort-based model,strategicallyconceivedandimplementeditsbusinessmodelduringitsinitialthree yearsofoperation.Employingaqualitativemethodologyandarobustdesignthinking framework,thisexaminationunveilsinnovativechangesinDibimbing.id'sbusinessmodel, leadingtoitssuccessandprofitabilityinachallengingmarketenvironment.Thestudy highlightstransformativeshiftsinspecificareasofthebusinessmodel,emphasizingtheneed forongoingin-depthanalysistodrawnuancedconclusionsandprovideinsightsfor continuousenhancement. Keywords:EdTech,businessmodelinnovation,designthinking,cohort-basedcourses,and profitability i PEMANFAATANMODELBISNISBARUUNTUKMENINGKATKAN PROFITABILITASPADABISNISEDTECHBERBASISKOHOR STUDIKASUS:PTDIBIMBINGDIGITALINDONESIA Oleh ZakyMuhammadSyah NIM:29322057 (ProgramStudiMagisterAdministrasiBisnis) ABSTRAK DalamlanskapindustriEdTechglobalyangberkembangpesat,ditandaiolehpertumbuhan yangsubstansial,paraentrepreneurmenghadapitantangankritisuntukmendirikanmodel bisnisyangtidakhanyaberkelanjutantetapijugasangatmenguntungkan.Studikomprehensif inimendalamikompleksitasbagaimanaDibimbing.id,prominentplayerdisektorEdTech yangberoperasidenganmodelberbasiskohor,secarastrategismerancangdan mengimplementasikanmodelbisnisnyaselamatigatahunpertamaoperasinya.Dengan menggunakanmetodologikualitatifdankerangkadesignthinkingyangkokoh,analisisini mengungkapperubahaninovatifdalammodelbisnisDibimbing.id,yangmengantarkannya menjadisalahsatubisnisEdTechyanglebihberkelanjutandanmenguntungkandilingkungan pasaryangmenantang.Studiinimenyorotipergeserantransformasionaldalamareatertentu daribusinessmodel,menekankanperlunyaanalisismendalamyangberkelanjutanuntuk mengambilkesimpulanyangrumitdanmemberikanwawasanuntukpeningkatanyang berkelanjutan. Katakunci:EdTech,inovasimodelbisnis,designthinking,pembelajaranberbasiskohor,dan menguntungkan ii VALIDATIONPAGE LEVERAGING NEWBUSINESSMODELSTOENHANCEPROFITABILITYIN COHORT-BASEDCOURSESEDTECHBUSINESSES STUDYCASE:PTDIBIMBINGDIGITALINDONESIA By ZakyMuhammadSyah StudentID:29322057 MasterofBusinessAdministrationProgram InstitutTeknologiBandung Approved Date15December2023. Supervisor Co-Supervisor Dr.rer.pol.EkoAgusPrasetio,MBA,CIP. Dr.SahatHutajuluST.MM. iii FINALPROJECTGUIDANCE Unpublishedmasters’finalprojectisregisteredandavailableintheLibraryof BandungInstitutofTechnology,andisopenforpublic,providedthattheauthorownsthecopyrightinaccordancewiththeintellectualpropertyrightsthatareapplicableintheLibraryofInstitutTeknologiBandung.Bibliographicalreferencesareallowedtobeuseinalimitedmanner,howeverthecitationandsummarizationcanonlybeproceedupontheauthor’spermissionandmustincludethescientificnormofstatingthisfinalprojectasthesource. Reproductionorpublicationofpartsorwholeofthefinalprojectmustbeunderthe consentoftheHeadofGraduateSchool,BandungInstituteofTechnology. v Cohort-Based Courses Edtech Businesses, Masters’ Final project,Institut Teknologi Bandung. This final project hastobecited as: Syah, Z.M. (2024):Leveraging New Business ModelstoEnhanceProfitabilityin ACKNOWLEDGEMENT Embarkingonthisjourneyofresearchandexplorationintothedynamicrealmof EdTechandcohort-basedcourseshasbeenaprofoundexperience,andIoweadebtof gratitudetoseveralindividualsandentities.Firstandforemost,Iexpressmydeepest appreciationtomyesteemedthesissupervisors,Dr.rer.pol.EkoAgusPrasetio,MBA,CIP, andDr.SahatHutajuluST.MM.Theirunwaveringsupport,insightfulguidance,and scholarlymentorshiphavebeenthebedrockofthisacademicpursuit. TothementorsatDibimbing.id,yourcommitmenttonurturingtheeducational journeysofstudentsinthedigitallandscapehasbeeninspiring.Yourdedicationtoimparting knowledgeandskillshasundoubtedlyshapedthenarrativeofthisresearch,addingdepthand authenticitytoitsfindings.HeartfeltthanksgotothestudentsofDibimbing.idwho graciouslysharedtheirexperiences,challenges,andaspirations.Yournarrativeshavepainted avividpictureoftheimpactofcohort-basedlearningondigitalskillacquisitionandits transformativepotentialinconnectingwithmeaningfulemploymentopportunities.Ialso extendmygratitudetothehiringcompaniespartneringwithDibimbing.id.Yourparticipation asintegralcomponentsofthisstudyhasenricheditsfabric,providingreal-worldinsightsinto theintersectionofacademiaandindustry,andthepivotalroleofEdTechinbridgingthisgap. SpecialthanksareextendedtotheentireteamatDibimbing.idfortheirunparalleled cooperationandopenness.Theirwillingnesstoprovideaccesstoessentialdataand informationhasbeenthecornerstoneofthisresearch.Withouttheirsupport,thisstudywould nothavebeenpossible.ThecommitmentdemonstratedbyDibimbing.idtodigitalskill learningandjobconnectivitystandsasabeaconofinspirationintherapidlyevolving landscapeofeducationaltechnology. Thisthesis,titled"LeveragingNewBusinessModelstoEnhanceProfitabilityin Cohort-BasedCoursesEdTechBusinesses,"standsasatestamenttothecollectiveeffortsof thesementors,students,andindustrycollaborators.Itismyhopethatthisworkcontributes meaningfullytotheongoingdialoguesurroundinginnovativebusinessmodelswithinthe EdTechsector.Thankyouforbeingthepillarsofsupport,wisdom,andinspiration throughoutthisacademicodyssey. vi TABLEOFCONTENTS ABSTRACT...............................................................................................................................i ABSTRAK................................................................................................................................ii VALIDATIONPAGE..............................................................................................................iii DECLARATIONOFNON-PLAGIARISM .........................................................................iv FINALPROJECTGUIDANCE.............................................................................................v ACKNOWLEDGEMENT ......................................................................................................iv TABLEOFCONTENTS.......................................................................................................vii LISTOFAPPENDICES.........................................................................................................ix LISTOFFIGURES.................................................................................................................x LISTOFTABLES...................................................................................................................xi ChapterIIntroduction............................................................................................................1 I.1Background.....................................................................................................................1 I.2CompanyProfile.............................................................................................................4 1.2.1Vision....................................................................................................................5 1.2.2Mission..................................................................................................................5 1.2.3Dibimbing.id'sCoreOffering................................................................................6 1.2.4ProductsandServicesBusinesstoConsumer(B2C)............................................7 I.3BusinessIssue...............................................................................................................15 I.4ResearchQuestion........................................................................................................20 I.5ResearchObjectives......................................................................................................21 1.5ResearchScopeandLimitation....................................................................................21 1.5.1ResearchScope...................................................................................................21 1.5.2ResearchLimitations...........................................................................................22 ChapterIILiteratureReview...............................................................................................23 II.2LiteratureReview........................................................................................................23 II.2.1UserRetentionandLifetimeValueinEdTech..................................................23 II.2.2CustomerAcquisitionCostsinEdTech..............................................................24 II.2.3ScalabilityChallengesinEdTech.......................................................................25 II.2.4BusinessModel...................................................................................................26 II.2.5ResearchGap......................................................................................................27 II.3DesignThinkingFrameworkforEdTechCohort-BaseCompany..............................29 II.3.1.BusinessModelInnovation...............................................................................30 II.3.2DesignThinking.................................................................................................31 ChapterIIIResearchMethodology......................................................................................33 III.1ResearchDesign.........................................................................................................33 III.2DataCollectionMethod.............................................................................................35 III.3DataAnalysisMethod................................................................................................37 vii ChapterIVResultandDiscussion........................................................................................38 IV.1UncoveringtheFoundationalofBusinessChallengesfordibimbing.idspecifically relatedtocoststructure......................................................................................................38 IV.2BusinessSolution:DevelopanewprofitablebusinessmodelforDibimbing.id, includingchangestothebusinessmodel,valueproposition,andclasssetup....................43 IV.2.1PhasesoftheDesignThinkingProcessforNewBusinessModel....................44 IV.2.1.1Empathize.................................................................................................44 IV.2.1.1.1NatureofReport..............................................................................44 IV.2.1.1.2QuestionforInformant....................................................................44 IV.2.1.1.3Empathymap...................................................................................50 IV.2.1.2Define.......................................................................................................82 IV.2.1.3.BusinessSolution:Ideate.........................................................................87 IV.2.1.4.Prototype..................................................................................................96 IV.2.1.4.1LearningPathlevelling....................................................................97 IV.2.1.4.2Self-PacedLearning........................................................................99 IV.2.1.4.3GuaranteeJobConnectorProgram(BootcampPlus)....................111 IV.2.1.4.4StudyNowPayLater(SNPL)Program........................................121 IV.3ExecutionofaProfitableBusinessModelOverhaulforDibimbing.id(Test).........124 IV.3.1ResultsReport..................................................................................................131 ChapterVConclusionandRecommendation...................................................................137 V.1Conclusion.................................................................................................................137 V.2Recommendations......................................................................................................140 REFERENCES.....................................................................................................................143 APPENDICES......................................................................................................................150 Appendix1............................................................................................................................150 vii LISTOFAPPENDICES Appendix1Transcriptofin-depthinterviewfromhiringcompany(A)..........................152 Appendix2Transcriptofin-depthinterviewfromhiringcompany(B)..........................159 Appendix3Transcriptofin-depthinterviewfrommentorcode(C)...............................166 Appendix4Transcriptofin-depthinterviewfrommentornoncode(D)........................176 Appendix5Transcriptofin-depthinterviewfromstudentcode(E)...............................189 Appendix6Transcriptofin-depthinterviewfromstudent/alumninoncode(F)............206 Appendix7Transcriptoffocusgroupdiscussionfrominternaldibimbing.id................222 ix LISTOFFIGURES Figure1.1EdTechFundingTrendsinVariousCountriesfrom2010to2022.....................1 Figure1.2RichPictureofEdTechIndustry.........................................................................2 Figure1.3Dibimbing.id’swebsite.......................................................................................6 Figure1.4ClassInformationforBootcampProgram..........................................................8 Figure1.5ClassImplementationActivities........................................................................9 Figure1.6ClassInformationforSpecializedBootcampProgram....................................10 Figure1.7ClassImplementationActivities.......................................................................11 Figure1.8ClassInformationforInterPro..........................................................................11 Figure1.9DetailedLearningOutlineinInternPro............................................................12 Figure1.10LearningManagementSystemforLearningonDibimbing.id.......................13 Figure1.11Dibimbing.id’sRevenueContributionChartfromJanuary2022until November..........................................................................................................................15 Figure1.12Dibimbing.id’sProfit/LossChartfromJanuary2022untilAugust................16 Figure1.13Dibimbing.id’sRetentionCurve.....................................................................17 Figure1.14FishboneDiagram...........................................................................................18 Figure1.15TopPartoftheFishboneDiagram.................................................................18 Figure1.16BottomPartoftheFishboneDiagram...........................................................19 Figure2.1ConceptualFramework.....................................................................................29 Figure2.2DesignThinkingProcess..................................................................................32 Figure3.1DepictstheVisualRepresentationoftheSystematicCombiningApproachas ProposedbyDuboisandGadde.........................................................................................34 Figure3.2ResearchDesign...............................................................................................34 Figure4.1EmpathyMapofHiringPartners......................................................................51 Figure4.2EmpathyMapofMentorsCodeandNon-code................................................55 Figure4.3EmpathyMapofStudentandAlumni..............................................................62 Figure4.4EmpathyMapofInternalTeam’sdibimbing.id................................................70 Figure4.5PrototypeofLevelingProgram.........................................................................99 Figure4.6PrototypeofListofOpenClass......................................................................102 Figure4.7PrototypeofClassDetail................................................................................103 Figure4.8PrototypeofAttendingaClassinProgress....................................................103 Figure4.9PrototypeofCheckoutCode...........................................................................104 Figure4.10PrototypeofProgressClass..........................................................................105 Figure4.11PrototypeofLearningMaterials...................................................................106 Figure4.12PrototypeofLabsWorkspace-Codes..........................................................108 Figure4.13PrototypeofWiderCodeWorkspace-Codes..............................................109 Figure4.14PrototypeofWiderCodeWorkspace-Codes..............................................109 Figure4.15PrototypeofAssignment...............................................................................110 Figure4.16PrototypeofTest...........................................................................................111 Figure4.17PrototypeofGuaranteeJobConnectorProgram..........................................121 Figure4.18PrototypeofPaymentOptions......................................................................122 Figure4.19PrototypeofSNPLProgram.........................................................................124 Figure4.20VisualizationoftheIncreaseinARPU.........................................................135 Figure4.21Dibimbing.id’sRetentionCurveinSeptember.............................................136 Figure4.22Dibimbing.id’sRetentionCurveinNovember.............................................137 x LISTOFTABLES Table3.1OverviewofFGDParticipants...........................................................................35 Table3.2OverviewofIn-depthInterviewParticipants.....................................................36 Table4.1PercentageCosttoRevenuein2022and2023..................................................39 Table4.2StudentGraduation.............................................................................................83 Table4.3ExistingBusinessModelofdibimbing.id.........................................................88 Table4.4NewBusinessModelofdibimbing.id................................................................90 Table4.5TheEffectsofdibimbing.id'sNewBusinessModelonProblem-Solving.........94 Table4.6CostofSalesofJobConnectorBootcampGuarantee......................................117 Table4.7JobDistributionAgendabyTalentSupport.....................................................118 Table4.8ImplementationPlanofSelf-PacedLearning...................................................125 Table4.9GanttChartofSelf-PacedLearning................................................................125 Table4.10ImplementationPlanofLevellingProgram...................................................126 Table4.11GanttChartofLevellingProgram..................................................................127 Table4.12ImplementationPlanofJobConnectorGuaranteeProgram..........................128 Table4.13GanttChartofSelf-PacedLearning..............................................................129 Table4.14ImplementationPlanofJobConnectorGuaranteeProgram..........................130 Table4.15GanttChartofSelf-PacedLearning...............................................................131 Table4.16TheResultsReportoftheImplementationoftheNewBusinessModel.......132 Table4.17SummaryoftheIncreaseinARPU................................................................134 xi.