TRANSFORMING ENTERPRISE APPLICATION RATIONALIZATIONS: A DESIGN THINKING APPROACH TO CUSTOMER-CENTRIC INNOVATION FINAL PROJECT In partial fulfilment of the requirements for the master’s degree from Institut Teknologi Bandung By RISYAD SUNGKAR Student ID: 29123372 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG June 2025 i ABSTRACT TRANSFORMING ENTERPRISE APPLICATION RATIONALIZATIONS: A DESIGN THINKING APPROACH TO CUSTOMER-CENTRIC INNOVATION By Risyad Sungkar Student ID: 29123372 (Master of Business Administration Program) This article explores the capacity of design thinking (DT) to transform corporate application rationalization in multinational companies. This article is broadly targeted at IT stakeholders, from expert levels to chief technology officers (CTOs) in large multinational companies with a mandate to make complex application portfolios easier. This case study was conducted at one of the world's largest tobacco companies, with around 2,600 applications running across the world to cater to its 180 markets. In the context of thousands of applications in the IT landscape, simplifying the portfolio aids in maximizing efficiency and facilitating digital transformation objectives. We outline a user-focused application evaluation process that includes decommissioning and consolidation via design thinking via empathy, ideation, and prototyping. The study employs the UX Honeycomb model to quantify usability and user satisfaction within applications and proceeds to employ A/B testing to confirm its validity. The study reveals that the incorporation of end-user feedback within the rationalization process significantly raises adoption levels and aligns the IT environment with business objectives. The research establishes that a customer-centric approach is required in a bid to achieve long- term innovation and operational success. Keywords: Design Thinking, Application Rationalization, UX Honeycomb, A/B Testing, User-Centric Innovation, IT Ecosystem. ii ABSTRAK MENTRANSFORMASI RASIONALISASI APLIKASI PADA PERUSAHAAN DENGAN PENDEKATAN DESIGN THINKING UNTUK INOVASI YANG BERFOKUS PADA PENGGUNA Oleh Risyad Sungkar 29123372 (Program Studi Magister Administrasi Bisnis) Artikel ini mengeksplorasi kemampuan pendekatan design thinking (DT) dalam mentransformasi proses rasionalisasi aplikasi di perusahaan multinasional. Artikel ini ditujukan bagi para pemangku kepentingan di bidang TI, mulai dari level ahli hingga chief technology officer (CTO) di perusahaan besar yang memiliki mandat untuk menyederhanakan portofolio aplikasi yang kompleks. Studi kasus ini dilakukan di salah satu perusahaan tembakau terbesar di dunia, yang mengelola sekitar 2.600 aplikasi di seluruh dunia untuk mendukung operasional di 180 pasar. Dalam konteks lanskap TI yang penuh ribuan aplikasi, menyederhanakan portofolio menjadi langkah penting untuk memaksimalkan efisiensi dan mempercepat transformasi digital. Penelitian ini menawarkan proses evaluasi aplikasi yang berfokus pada pengguna, yang mencakup aktivitas dekomisioning dan konsolidasi menggunakan pendekatan design thinking melalui tahapan empati, ideasi, dan prototyping. Studi ini menggunakan model UX Honeycomb untuk mengukur kegunaan (usability) dan kepuasan pengguna dalam menggunakan aplikasi, serta menerapkan pengujian A/B untuk memvalidasi efektivitas pendekatan yang diusulkan. Hasil studi menunjukkan bahwa keterlibatan pengguna akhir dalam proses rasionalisasi secara signifikan meningkatkan tingkat adopsi dan menyelaraskan lingkungan TI dengan tujuan bisnis. Penelitian ini menegaskan bahwa pendekatan yang berfokus pada pengguna (customer-centric) diperlukan untuk mencapai inovasi jangka panjang dan keberhasilan operasional yang berkelanjutan. Keywords: Design Thinking, Rasionalisasi Aplikasi, Ux Honeycomb, Uji A/B, Inovasi Yang Berfokus Pada Pengguna, Ekosistem Ti iii TRANSFORMING ENTERPRISE APPLICATION RATIONALIZATIONS: A DESIGN THINKING APPROACH TO CUSTOMER-CENTRIC INNOVATION VALIDATION ON PAGE By Risyad Sungkar Student ID: 29123372 Master of Business Administration Program Institut Teknologi Bandung Approved Date June 9 th , 2025 Supervisor (Dr. Dina Dellyana, S.Farm., M.A.B.) iv DECLARATION OF PLAGIARISM v FINAL PROJECT GUIDANCE Unpublished masters’ final project is registered and available in the Library of Bandung Institute of Technology and is open for public, provided that the author owns the copyright in accordance with the intellectual property rights that are applicable in the Library of Institut Teknologi Bandung. Bibliographical references are allowed to be used in a limited manner, however the citation and summarization can only proceed upon the author’s permission and must include the scientific norm of stating this final project as the source. This final project has to be cited as Sungkar, Risyad. (2025): Transforming Enterprise Application Rationalizations: A Design Thinking Approach to Customer-Centric Innovation, Masters’ Final Project, Institut Teknologi Bandung. Reproduction or publication of parts or whole of the final project must be under the consent of the Head of Graduate School, Bandung Institute of Technology. vi DECLARATIONPAGE This final project is dedicated To my younger self — the one who doubted—who would’ve thought we’d walk the halls of ITB, chasing an MBA. You made it. We made it. Be proud. And to my future self — when the road ahead gets blurry, come back to this moment. You will never regret it. This was one of the boldest, bravest, and best choices we ever made. vii ACKNOWLEDGEMENTS ميحرلا نمحرلا الله مسب "And Allah is the best of planners." (Ali Imran, 3:54) This final project would not have been possible without the support and guidance of many individuals whom I wish to sincerely thank: 1. To my beloved mother, whose prayers have been my strength through every step, and to my late father — may this work become part of his lasting reward (amal jariyah). 2. To my amazing organization where I work, thank you for the financial support through the "Skills for Future" scholarship and the flexibility that allowed me to balance work and study. 3. To my inspiring lecturer, Bu Dina Dellyana, thank you for your engaging teaching, updated insights, and the confidence you gave me to keep pushing forward. 4. To my support system, BLEMBA 70 — thank you for making this educational journey not only meaningful but truly unforgettable. You made the hard days easier and the good days even better. 5. To Mike, my manager at IT Global, thank you for your trust and encouragement to pursue higher education. Your support meant a lot. 6. To Halim, my manager during the System Landscape Simplification project — thank you for trusting me to lead and for giving me the stage to perform. The SLS project was the best project I’ve ever been part of, and that experience became the foundation and inspiration for this research. 7. To our beloved “reserved group,” Bembi and co.—thank you for turning the office into a creative and memorable space. Your input (and your sarcasm) during the empathize sessions of the SLS Project made this research not only possible but oddly enjoyable. viii 8. To my dear friend Faiz, thank you for our moments — working from cafés, sharing funny stories, and supporting me with both emotional strength and your guidance as a lecturer.