Innovation Bring Higher Global Competitiveness

Globalization is a phenomenon that can not be avoided by any country. Globalization

caused by the emergence of sense of interdependence among countries in the world. As time
goes by, the boundaries between countries is fading that causes trade between countries
become easier and a new system called borderless economy emerged. It is like a double-
edged knife. On one side, a country or company has a greater opportunity to obtain resources
from abroad, they can also improve competitiveness, businesses become more effective and
efficient, and ultimately impact on increasing the general welfare of society, but on the other
hand, globalization causes the state or the company unable to protect industries that do not
have a comparative advantage compared to other industry in the more developed countries.
When discussing about globalization, we can not avoid from the so-called global
competitiveness. Global competitiveness is usually measured by Global Competitiveness
Index hereinafter shortened as GCI. GCI defined as attempts to quantify the impact of a
number of key factors which contribute to create the conditions for competitiveness, with
particular focus on the macroeconomic environment, the quality of the countrys institutions,
and the state of the countrys technology and supporting infrastructure (World Economic
Forum, 2015). In 2015, Indonesia is on the 34 th rank, under Singapore (2nd rank), Malaysia
(20th rank), and Thailand (31st rank). This ranking remind us all that we are not yet even better
against ASEAN countries. Factors in the CGI that are closely related to PT Telkom Indonesia
are business sophistication and innovation. As the only state-owned enterprise engaged in
telecommunications technology, PT Telkom Indonesia certainly has contributed greatly to the
value of the two pillars of the CGI. Challenges faced by PT Telkom to increase its global
competitiveness, especially in the 11th pillar is to continue improving its business processes
especially those directly related to customer satisfaction. The implementation of modern
business processes on a large scale company as PT Telkom Indonesia will give a spillover
effect into the economy and lead to sophisticated and modern business processes across the
countrys business sectors. PT Telkom Indonesia also has biggest challenge is CGI 12 th pillar,
innovation. Although substantial gains can be obtained by improving institutions, building
infrastructure, reducing macroeconomic instability, or improving human capital, all these
factors eventually run into diminishing returns. PT Telkom Indonesia could become a center
of innovation which become a role model for other companies by involving young people
who have an innovative spirit to develop a product that could bring the benefit to society.
Regardless the condition of Indonesia GCI that placed in a mediocre rank, basically
every country has its own challenges and ways to deal with this matter. Therefore, it has
become the main task of PT Telkom Indonesia as a state owned-enterprise to elevate this
country to a better condition.
In general, innovation or invention are usually born as a result of unresolved issues or
society needs a better solution for the current problem. Innovation means to change, renew,
and create more creative and better products, process or ways of doing things. It is also
defined as a process through which the social and economic value is extracted from
knowledge by developing, implementing and generating ideas that produce improved or new
products, strategies, processes or services (Sloane, 2012). One of the biggest problem faced
by Indonesia is crime. Biggest contributor of Indonesias criminality rate is crime on the
property (with or without violence) (Badan Pusat Statistik, 2015). In my opinion, its a big
opportunity for PT Telkom Indonesia to solve this problem. Currently, PT Telkom Indonesia
already had a product called IndiHome Monitoring but there are still a lot of improvement
than can be made. This idea came from an application called themself Presence.
Improvement that can be implemented on IndiHome Monitoring are entry sensor, motion
sensor (placed on main entry, window, temperature sensor (placed on kitchen), siren, and
auto-lock system. This system can be easily installed and managed from smartphone.
Additional features that will differentiate between current and proposed idea is the new
system not just for a monitoring function but it can also used as early warning system. There
will be 3 category of home safety in this system. I break it into green (safe), yellow (alert),
red (danger). In yellow and red condition, with an adequate internet connection, we will
automatically get a notification that contained a summary of home security. With this kind of
system, We can minimize any kind of crime on our property and we can keep our home safe
while we are working or on vacation.

My Path to Contribute
I really want to give my best through my interest and ability as a marketer. My main
focal point on PT Telkom Indonesia is on product excellence, something that can be build
through consistent brand building, customer acquisition and retention, and product
improvement through time to time evalutation. One of my dream is I can contribute to this
nation through something that I loved. I love marketing and I love Indonesia so let me show
you my best shot.

Bibliography
Badan Pusat Statistik. (2015). Statistik Kriminal 2015. Jakarta: Badan Pusat
Statistik.

Sloane, P. (2012). What's the Difference between Creativity and Innovation?

Dipetik August 18, 2016, dari Innovation Excellence:
http://innovationexcellence.com/blog/author/paul-sloane/

World Economic Forum. (2015). The Global Competitiveness Report 2014-2015.

Geneva: World Economic Forum.

Table 1. Global Competitiveness Index 2015 ASEAN Countries

(Source : World Economic Forum)
Table 2. Indonesia Criminality Indicator Score
(Source : Badan Pusat Statistik)