digilib@itb.ac.id +62 812 2508 8800

Since 1974 PT Industri Telekomunikasi Indonesia (PT INTI) had been a leading company in the manufacture of telecommunication infrastructure in Indonesia. However, with technological advancement that continues to take place, the intense competition in the industry, and the declining competitiveness of hardware manufacturing in the market, PT INTI decided to shift its business focus from pure manufacturing to engineering services and system integrator since the year 2002 until today. Shortly after PT INTI shifted its core business, since the year 2004, the net profit of PT INTI has shown a continual decline. The decline of profitability is mostly due to the increasing COGS and operating expense related to the system integrator business. With system integrator business losing its potency to generate growth in the term of profitability, PT INTI has to find the next core business which can generate higher profit. A selected approach to find the next core business for PT INTI is by exploiting the company’s core competencies and finding the emerging market that suits those competencies. Using the concept and tests provided by Hamel and Prahalad (1994), the competencies of PT INTI were evaluated to identify the existence of the core. The results of the evaluation to the competencies’ degree of contribution to customers’ perceived value, degree of superiority compared to the competitors, and degree of extendibility revealed that PT INTI had not yet owned any core competence. There are, however, several competencies that are potential to be developed into core. By prioritizing the competencies using AHP method, the selected competencies to be developed into core are revealed to be programming competency, web application competency and real-time software competency. The suitable markets for these competencies were found to be IT content and solution, and enterprise software businesses. These businesses are selected due to better industry structures and are placed in the portfolios that are capable to yield higher profit margin compared to system integrator business. The development and implementation of the next core business for PT INTI were conducted using business model canvass concept provided by Osterwalder and Pigneur. After constructing the new business model that is relevant to the IT Content and solution and enterprise software business, it is found that the change of value propositions brought the need of additional key resources that is related to the competencies and knowledge of the employees, such as multimedia and IP-based technology competencies. There are also the need of additional key activities that are related to the delivery of the services, and additional key partners, such as content sponsors, other content providers and business consultants.