FINAL EXAM

MANAGING INNOVATION

DIGITAL LEADERSHIP ANALYSIS

BUKALAPAK

Afrizon Setiawan 2171021003

Jessica Artanti 2171021013
Luthfi Aulia Faza 2171021020
Reza Aulia 2171021011
Sarsih Handayani 2171021004

PROGRAM STUDI
MAGISTER MANAJEMEN
UNIVERSITAS BAKRIE
JAKARTA
2018
 CHAPTER I
INTRODUCTION

1.1 Background

The defining traits of a successful leader used to be a high performance

on execution, strategic and business acumen and becoming successful P&L
owner working towards increasing the bottom line. Then there was a
realization that leaders also need to be emotionally intelligent, self-aware,
build healthy innovative teams through trust and conflict management to
achieve all of the above. There is an expectation of conscious capitalism from
them, i.e improving communities along with building businesses. This
movement will continue on rapidly.
In addition to this, now, there is expectation of excellence in another
dimension from successful future leaders. Digital Leadership. Digital means
reorganizing the business ecosystem. Digital is more than just technology.
Digital refers to the ways in which technology is now being used to create
value across functions.
Digital leaders will be in high demand as business increasingly relies
on digital technologies. These leaders will have to be savvy with technology,
data-driven and inspire teams to drive transformation and business outcomes
through experimentation and multiple iterations. They will need to incorporate
data, agility and design-thinking aggressively to redefine strategies and
business models.
Before moving onto digital leadership, if we step back and see what
leadership is in general it says that leadership has universal characteristics and
theories that are timeless. First is charismatic leadership, a charismatic person
possesses a rare gift that allows them to influence followers while inspiring
loyalty and obedience. There are several universal skills that are worth
mentioning for leadership, such as: (1) motivational skills; (2) team building;
(3) emotional intelligent.
1.2. Objective

The broad objective of the study is to analysis the type of digital

leadership ini digital business
 CHAPTER II
ORGANIZATIONAL PROFILE

2.1. Company Profile Bukalapak

Bukalapak is one of the leading online marketplace in Indonesia and
a Unicorn company, owned and run by PT Bukalapak.com. Bukalapak literally
means "open a stall" in Indonesian. Anyone can open an online store to then
serve prospective buyers from all over Indonesia either unit or in large
quantities. Individual or corporate users can buy and sell all type of products,
both new and used. Bukalapak was founded by Achmad Zaky and Nugroho
Herucahyono in early 2010 as a digital agency division named Suitmedia,
based in Jakarta.

Bukalapak has only been a Limited Liability Company. In September

2011, After standing more or less a year, Bukalapak received additional capital
from Batavia Incubator (a joint venture of Rebright Partners led by Takeshi
Ebihara, Japanese Incubator and Corfina Group). In 2012, Bukalapak received
additional investments from GREE Venturesled by Kuan Hsu.

In March 2014, Bukalapak announced an investment by Aucfan, IREP,

500 Startups, and GREE Ventures. Not long ago from the news, on March 18,
2014 Bukalapak also launched a mobile app for Android . The application
known as mobile Bukalapak was created specifically for the sellers to facilitate
the seller in accessing his wares and transact via smartphone. Since it was first
launched until July 3, 2014, the application has been downloaded by more than
87 thousand users of Bukalapak.

Although it has only been established for 3 years, Bukalapak has a good
reputation in terms of customer service and its easy-to-access website.
Bukalapak also over time, growing with newest innovations to facilitate
Bukalapak users for the transaction.

On June 25 2014, Bukalapak adds the Quick Buy feature, which allows
buyer to buy goods without having to register new account. When the page
pops up, just fill in the purchase data and buyer selects the Buy Without
Account tab. In this stage, buyer simply enters his/her active email and detail
of shipping address. The active e-mail will be used to send the payment bill
and to contact the buyer in case the transaction error. Therefore, the email is
expected to be filled correctly, because it will affect the verification of the
transaction.

Bukalapak has a program to facilitate the existing SMEs in Indonesia

to conduct transactions on sale and purchase online. This is because online
transactions can make it easier for SMEs to sell their products without having
an offline store. For those who already have an offline store, Bukalapak
expects that the site can help increase the offline store sales.

From Emtek's 2015 financial statements (49% owners of Bukalapak

shares), it is known that Bukalapak has obtained investment fund from Emtek
totaling up to Rp 439 billion. However, in 2015, Bukalapak is still losing Rp
229 billion, with revenues of Rp 6.4 billion.

Bukalapak CEO Achmad Zaky announced on Wednesday that the e-

commerce platform had officially become Indonesia’s startup unicorn, as the
company was now valued at over US$1 billion.

However, Achmad refused to disclose information regarding the

investors. This achievement has made Bukalapak the country's fourth unicorn
startup after ride-hailing app Go-Jek, online booking platform Traveloka and
e-commerce platform Tokopedia.
2.2. Organizational Structure

Gambar 1. Osrganization Structure of BUKALAPAK

 CHAPTER III
REVIEW OF LITERATURE

While the need for change is digitally driven, it can only be achieved
through people. The role of leaders is therefore pivotal. To become digitally
sustainable, businesses need leaders who embody the agile mindset needed to lead
and sustain seismic cultural change and who can engage their people in the journey
Research highlighted by the Harvard Business Review backs this up,
showing that the greatest challenges facing companies aren’t access to superior
technology; they come from top-down structures, an inability to experiment, limited
change management capabilities, legacy systems, a risk-averse culture, and an
inability o work across silos (HBR, 2016).
There’s no easy fix; the change required is fundamentally about building a
new culture and engendering a new mindset that will support the process of ongoing
change. Organisations must disrupt legacy systems and hierarchies to become
digitally sustainable, transforming into open, interconnected networks populated by
a fluid workforce and led by a new profile of leader.
Korn Ferry (2018) developed the Digital Sustainability Index to support
leaders as they navigate the journey towards building a ft-for-future business. Based
on a metaanalysis of nearly fve decades’ of experience and data, the DSI redefnes
transformation in the context of signifcant and ongoing digital change by
establishing the fve critical dimensions of digital sustainability: discipline and
focus; agility; connectivity; openness and transparency; and empowerment and
alignment. These fve dimensions create the organisational conditions for businesses
to thrive through ongoing change
Sementara kebutuhan untuk perubahan didorong secara digital, itu hanya
dapat dicapai melalui orang. Karena itu peran pemimpin sangat penting. Untuk
menjadi berkelanjutan secara digital, bisnis membutuhkan para pemimpin yang
mewujudkan pola pikir lincah yang dibutuhkan untuk memimpin dan
mempertahankan perubahan budaya seismik dan yang dapat melibatkan orang-
orang mereka dalam perjalanan
 Penelitian yang digarisbawahi oleh Harvard Business Review mendukung
hal ini, menunjukkan bahwa tantangan terbesar yang dihadapi perusahaan bukanlah
akses ke teknologi yang unggul; mereka datang dari struktur top-down,
ketidakmampuan untuk bereksperimen, kemampuan manajemen perubahan yang
terbatas, sistem warisan, budaya yang menghindari risiko, dan ketidakmampuan
bekerja lintas silo (HBR, 2016).
Tidak ada perbaikan yang mudah; perubahan yang diperlukan pada
dasarnya adalah tentang membangun budaya baru dan melahirkan pola pikir baru
yang akan mendukung proses perubahan yang sedang berlangsung. Organisasi
harus mengganggu sistem dan hierarki warisan untuk menjadi berkelanjutan secara
digital, mentransformasikannya menjadi jaringan yang terbuka dan saling
berhubungan yang dihuni oleh tenaga kerja fluida dan dipimpin oleh profil
pemimpin yang baru.
Korn Ferry (2018) mengembangkan Digital Sustainability Index untuk
mendukung para pemimpin ketika mereka menavigasi perjalanan menuju
membangun kaki untuk bisnis masa depan. Berdasarkan metaanalisis pengalaman
dan data selama hampir lima dekade, DSI mendefinisikan kembali transformasi
dalam konteks perubahan digital yang signifikan dan berkelanjutan dengan
menetapkan lima dimensi kritis keberlanjutan digital: disiplin dan fokus;
kelincahan; konektivitas; keterbukaan dan transparansi; dan pemberdayaan dan
penyelarasan. Dimensi lima ini menciptakan kondisi organisasi bagi bisnis untuk
berkembang melalui perubahan yang berkelanjutan

Gambar 2. The Five Dimensions of Digital Sustainability

These leaders are comfortable in ambiguity, as both the internal and external
business conditions rapidly mutate. They engage and persuade their people in the
change vision and cultivate new ways of thinking and working to support the
process. And they do this again and again by deploying strong situational and
emotional awareness to anticipate and address business and interpersonal
challenges, powered by agile thinking.
It’s tempting to think that this leadership profle can be found fully-formed
among today’s leading digital businesses. But Korn Ferry (2018) research suggests
that leaders of such frms—‘born digital’ leaders—can be too narrowly specialised
(Vickers, 2016).
Instead, businesses need to cultivate this mindset, rather than buying a set
of experiences. It’s the same mindset displayed by great leaders of innovation, agile
leaders and leaders who leverage diversity through inclusion. But while businesses
once saw these leaders as a “nice to have”, the digital imperative has established
the business case for investing in developing this type of leader. People are the key
to unlocking these benefts; the DSI dimensions describe the essential organizational
conditions but great digital leaders must operationalize them for success.
Leadership styles that emphasised precision and excellence of execution
through hierarchical decision-making now pull against the flexibility and
inclusiveness leaders need to empower the digital-age workforce. Drawing on the
Korn Ferry Four Dimensions of Leadership and the Korn Ferry Assessment of
Leadership Potential, we analysed the traits, competencies and drivers of more than
500 digital leaders, and compared them against population norms from our 4.5
million data point assessment database to create a distinctive profle of the qualities
needed for the digital age. Traits guide an individual’s behaviour, but can at times
be difcult to observe, whereas competencies are observable skills and behaviours
required for success at work. Drivers are the deep internal values, motivations, and
aspirations that influence a person’s choices.
Para pemimpin ini merasa nyaman dalam ambiguitas, karena kondisi
bisnis internal dan eksternal bermutasi dengan cepat. Mereka melibatkan dan
membujuk orang-orang mereka dalam visi perubahan dan memupuk cara
berpikir dan bekerja baru untuk mendukung proses. Dan mereka melakukan
ini berulang-ulang dengan mengerahkan kesadaran situasional dan emosional
yang kuat untuk mengantisipasi dan mengatasi tantangan bisnis dan
interpersonal, didukung oleh pemikiran yang gesit.
Sangat menggoda untuk berpikir bahwa profil kepemimpinan ini
dapat ditemukan sepenuhnya terbentuk di antara bisnis digital terkemuka
saat ini. Tetapi penelitian Korn Ferry (2018) menunjukkan bahwa para
pemimpin seperti itu — para pemimpin 'digital yang baru lahir' dapat terlalu
terspesialisasi (Vickers, 2016).
Sebaliknya, bisnis perlu mengembangkan pola pikir ini, daripada
membeli satu set pengalaman. Ini adalah pola pikir yang sama yang
ditunjukkan oleh para pemimpin besar inovasi, pemimpin yang gesit dan
pemimpin yang memanfaatkan keragaman melalui inklusi. Tetapi sementara
bisnis pernah melihat para pemimpin ini sebagai "baik untuk memiliki",
keharusan digital telah membentuk kasus bisnis untuk berinvestasi dalam
mengembangkan jenis pemimpin ini. Orang adalah kunci untuk membuka
manfaat ini; dimensi DSI menggambarkan kondisi organisasi yang penting
tetapi pemimpin digital yang hebat harus mengoperasionalkannya untuk
sukses.
Gaya kepemimpinan yang menekankan ketepatan dan keunggulan
pelaksanaan melalui pengambilan keputusan hirarkis sekarang berlawanan
dengan fleksibilitas dan inklusif yang dibutuhkan pemimpin untuk
memberdayakan tenaga kerja era digital. Menggambar pada Korn Ferry
Empat Dimensi Kepemimpinan dan Penilaian Korn Ferry tentang Potensi
Kepemimpinan, kami menganalisis ciri-ciri, kompetensi dan driver dari lebih
dari 500 pemimpin digital, dan membandingkannya dengan norma-norma
populasi dari 4,5 juta basis data penilaian titik data kami untuk membuat
profil khas dari kualitas yang dibutuhkan untuk era digital. Sifat memandu
perilaku individu, tetapi kadang-kadang sulit untuk diamati, sedangkan
kompetensi adalah keterampilan yang dapat diamati dan perilaku yang
diperlukan untuk sukses di tempat kerja. Pengemudi adalah nilai-nilai
internal yang mendalam, motivasi, dan aspirasi yang memengaruhi pilihan
seseorang.
 Gambar 3. The unique Characteristics of High-Performing Digital Leaders

CHAPTER IV
DISCUSSION

Being a leader is about so much more than being in charge of people. It’s a
whole new level of responsibility that not everyone is cut out for.Bukalapak as a
unicorn startup is a rare thing, much sought after by venture capitalists all over the
world. What do the founders of there companies that have been valued over one
billion dollars have in common? The statistical rarity of starting a company that eds
up with a sky-high value may be uncommon but the habits and traits held by the
startup founders of there companues are very accessible to anyone. The Five
Dimensions of Digital Sustainability :

Agility. Agile businesses are designed to move quickly in decision making and
execution, and they rapidly adapt to market and environmental changes.
Structurally, this means reporting lines are streamlined to optimize fluid
collaboration and speed input on planning and delivery. People in agile
organizations take risks, are customer-centric, and continually acquire new skills to
perform in an ever-changing climate. Bukalapak know that being agile it’s a must,
especially in this VUCA world, instead Bukalapak is a Unicorn Startup.

Connectivity. Connected businesses create ecosystems made up of networks of

people from inside and outside the organization. Without defined roles or traditional
organizational constructs, people in connected organizations actively collaborate
with, and contribute to, the outside world, and even co- develop solutions with
clients, partners, and competitors to accelerate delivery.

Discipline & Focus. Organizations that successfully transform for a digital world
are clear about what digital means to them. Disciplined organizations define their
desired outcomes and focus relentlessly on achieving them. They are disciplined
about execution. They decide quickly on what to invest in, then draw upon their
strengths to implement decisions efficiently, effectively, repeatedly, and at scale.
As a result, employees are inspired by their leaders and their forward- thinking
approach.

Empowerment & Alignment. From the board to the front line, empowered
organizations are clear on four things: what the business stands for; what it’s trying
to achieve; how to execute its strategy; and how the strategy is being implemented.
Employees know what their future holds within the business, how they can
contribute, the skills they need to achieve their goals, and what support is available.
They are enabled to make the right decisions in
the moment without the need for continuous guidance. At the company level, this
is the dimension most correlated with overall DSI score.

Openness & Transparency. Open organizations understand that the digital

economy means brands are public property, so they are deliberately transparent
about their ethics, responsibilities, decisions, and practices. Everybody in an open
organization has a voice and is encouraged to collaborate, solve problems, and think
creatively to meet customer expectations.

TRAITS - RISK TAKING

“Are willing to take a stand, or take changes based on limited information”.
According to the Korn Ferry, being a risk taker is one of characteristic of digital
leadership. Achmad Zaky as CEO of Bukalapak has that characteristic.

He hit upon the E-commerce solution of Bukalapak and shared his idea with
many of his closest friends in order to raise funds. Everyone disregarded this
brilliant notion and even claimed it would not work. All except an old senior high
school friend, Nugroho Herucahyono.
Nugroho truly believed in Zaky’s vision and invested in the idea. Where
Zaky overtakes Nugroho is risk-taking is when, after many retail outlets and online
stores had joined Bukalapak, the internet online business in Java was still very
small. Money was running out and even Nugroho was thinking of bailing.
Softbank Corp. of Japan saw the potential of the venture and offered capital to keep
the company afloat until the internet business side was up to speed. Zaky’s risk-
taking trait has seen the company grow to become valued at nearly $2 billion.

COMPETENCIES - STRATEGIC VISION

“See ahead to future possibilities and translate them into breakthrough
strategies”
To be able to achieve his vision he must be able to continue to motivate his
team. For this reason Zaky often emphasized to his team, that Bukalapak had a
vision and mission in supporting SMEs in Indonesia. This is the biggest motivation
of the company and its friends, who work and work at Bukalapak
"The purpose of this business is something that needs to be considered so that the
existence of these goals can motivate in realizing it," he said.

DRIVERS - CHALLENGE
“Are motivated by achievement in the face of tough obstacles”
Achmad’s journey to success was long and eventually worth it. He said that
success is not a one-stop journey and definitely not a straight line. It can’t be a
shortcut, or even a tiny sprint. However, the journey to success is more of a
marathon, and as businesspeople we need to keep our heads up, breathe in, and stay
spirited and motivated. There may be bumps and twists in the journey to success,
but with forbearance and courage, we will definitely make it, just like Achmad did.

CHAPTER V
CONCLUSION

After analyzed about Leadership in Bukalapak, in this VUCA world

Achmad Zaky as CEO has cara yang mampu membuat Bukalapak tetap stabil
bahkan meningkat, sebagai pemimpin startup Achmad Zaky mempunyai jiwa
entrepreneurship.
Achmad Zaky memahami bahwa di VUCA world ini, seorang pemimpin
harus memiliki kemampuan untuk bekerja dengan cepat, berinovasi, melihat pasar
dan paham akan mangsa pasar. Achmad Zaky hit upon the E-commerce solution of
Bukalapak and shared his idea with many of his closest friends in order to raise
funds, he also see ahead to future possibilities and translate them into breakthrough
strategies, Achmad Zaky did it to keep the company stable and exist.

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Accelerating the Pace and Impact of Digital Transformation (2016). Harvard

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Crandell, Stuart S., Michael Distefano, Alan Guarino, Mwamba Kasanda,

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Vickers, Fiona, David Zes, Kai Hammerich, Julio Moreno, Dana L Korn
Ferry: Los Angeles andis, Barbara Ramos, James L. Lewis (2016).
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