2022 International Conference on Computational Modelling, Simulation and Optimization (ICCMSO)
Define and Optimize the Competitive Advantage
Value Using DMADV Approach: A Case Study at PT
Telkom Indonesia
Sri Susilawati Islam
Department Industrial Engineering
Sampoerna University
Jakarta, Indonesia
sri.islam@sampoernauniversity.ac.id
Abstract - The competition among companies in every sector
industry has increased rapidly. It makes the company
should make any improvement to compete with other
competitors, even win the competition. Companies should
make the improvement for their stability in industries field\.
One important thing that company should pay attention is
dealing with the Competitive Advantage Values (CAV). To
compete with others, PT Telkom Indonesia should take one
step earlier to maximize their CAV. CAV is one of the big
deals in the company to make the customer know about the
superior value that Indihome (name/brand of
communication service provider) has. In the simple words,
by defining CAV, either the customers or company will
know in which category their products excel when
compared to the similar brands. This issue has guided
researcher to implement the DMADV process in order to
find the CAV in one of the biggest Information and
Communication Technology (ICT) company in Indonesia.
There are several CAVs of Indihome, the robust one is the
expansion of fiber optic through Indonesia. However,
several CAVs need to be integrated to increase customer
satisfaction and enhance the company's performances. To
integrate it, the best process is by using Scrum Process in
their development process.
Keywords - Competitive Advantage Value (CAV), DMADV,
Scrum Process, Telkom Indonesia, Kano Model.
I. INTRODUCTION
A. Background of the Study
IoT is the era when technology increase sophisticatedly. The
internet is a necessity for everyone nowadays. Not surprisingly,
many companies that are engaging as either Internet Service
Providers (ISPs) or NAP (Network Access Provider) are
competing to keep adjusting to the existing technological
advancements. Like PT Telkom Indonesia Tbk. Witel (Wilayah
Telekomunikasi) South Sumatra must always know and follow
979-8-3503-3288-9/22/$31.00 ©2022 IEEE
DOI 10.1109/ICCMSO58359.2022.00050
Muhtia Luchfi
Department Industrial Engineering
Sampoerna University
Jakarta, Indonesia
Muhtia.luchfi@my.sampoernauniversity.ac.id or
muhtialuchfi@gmail.com
the flow of technological movements. Making many
innovations, knowing fundamental strategy, and improving
systems are several examples of efforts so that the company can
compete with each other Fujimoto T., & Shiozawa [1]
For now, PT Telkom Indonesia Witel South Sumatera does
not have a prominent value as a form of differentiation between
Indihome and other internet service providers. This is the factor
why some people are not sure about using Indihome products.
Additionally, sometimes bad news about the quality of the
Indihome spreads to social media. Therefore, it will make
customers tend to uninstall the use of Indihome. The decreasing
amount of customers will affect the share of Telkom Indonesia
(TLKM) in the future. The following is data regarding the
uninstallation and installation of Indihome in the South Sumatra
area:
Fig 1. Installation and uninstallation data
Figure 1 shows the statistical comparison between the
installation (blue) and uninstallation (orange) Indihome in
South Sumatera Area from 2017 until 2020. Noted that this
statistic is only the approximation or estimation. The scale of
the data is in percentage. Based on figure 1.1 in the range of 1st
– 3rd trimester in 2020, the amount of installation toward
Indihome product tends to decline compared to a couple of
previous years. Besides, starting from the 4th trimester in 2018,
which is October, the uninstallation of Indihome products tends
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to be increased. It implies that there is something wrong with III. METHODOLOGIES
the performance of PT Telkom Indonesia, Tbk. Witel South
Sumatera for the last three trimesters, both installation and A. Sampling Design
uninstallation data. A company needs to analyze the problem
that occurs earlier. Many ways to find the root problems and To calculate the sample size, the first thing to do is categorize
solve them. the data either it is finite or infinite number. Since the data
related to the number of customers in the South Sumatera Area,
B. The objective of the Study
therefore the category of the data is a finite number. For this
research, the writer used a confidence interval of 95% or 0.05,
a) The objective of this research is to find the process by
the proportion value of 0.5, the margin of error is 14%, and the
which can be used in defining the Competitive
population is 10,000.
Advantage Value (CAV) that distinguishes Indihome
from other brands.
b) Solve and/or integrate the Competitive Advantage Value 𝑧 2 . 𝑝(1 − 𝑝)
that can suit the customer needs and exist in the market. 𝑛= 𝑒2
2
𝑧 . 𝑝(1 − 𝑝) (1)
1+( )
II LITERATURE REVIEW 𝑒2. 𝑁

A. Competitive Advantage Value (CAV)

(1.96)2 . 0.5(1 − 0.5)
Competitive advantage is the ability obtained through and the (0.14)2 (2)
𝑛=
resources of a company to achieve higher performance than (1.96)2 . 0.5(1 − 0.5)
1+( )
other companies in the same industry or marketplace. A (0.14)2 . 10000
company needs to know the ability, strength, and Competitive
Advantage Value (CAV) to get the first position on the market. 𝑛 = 48.76
After Porter developed this concept, the issue of competition Based on equation above, the result of the sample size is 48.76≈
among the companies in the same industry began to increase and 49. It means the number of respondents of the questionnaire
took a position for this. Competitive advantage comes from the should be around or at least 49 respondents.
company's ability to utilize its internal strengths to respond the
external environmental opportunities while avoiding external B. Data Analysis
threats and internal weaknesses, Mooney [2]
Define Phase
B. Strategic Initiatives This phase contains the explanation in defining the project and
making the case why this problem needs to solve by using the
According to Lmac [3] the strategy is the creation of a unique DMADV approach. Therefore, the researcher will explain the
business model that harnesses the positive advantage, allowing methods/tools that support in the Define Phase:
the internal stakeholder to fulfill their purpose. In other words,
a) Problem Identification
a strategy is a tool used by a company to achieve its
Problem definition is the first step that the researcher will
predetermined goals. To achieving success, a company must
be doing; it has aimed to define the problem that needs to
have careful planning. This planning is usually called a strategy.
solve by the researcher.
Based on Nahmias and Olsen [4], the survey of 217 industry
b) Voice of Customer
participants, the following factors were deemed the most
Voice of Customer is one of the data needed by the
important for gaining a competitive edge in the coming years.
researcher to gather the information based on the
They are listed in the order of importance: conformance quality,
customer’s point of view.
on-time delivery performance, quality, product flexibility,
c) Data Grouping
after-sale service, price, broad-line (features), distribution,
The collected data will be group into several aspects or
volume flexibility, and promotion.
features. Therefore, the researcher easier to elaborate on the
data in the next phase.
C. DMADV Approach
DMADV is one of six sigma approaches that has aimed to Measure Phase
increase the quality of the performance. According to Byun [5] This phase consists of the measured data. The aim is to
The DMADV process and tools are used primarily during the understand the customer requirement based on priority and
development and qualification process of designing a product. urgency. The method or tools for this phase are:
a) Pareto Chart
Pareto Chart is useful to determine the priority in which the
categories of the problems need to solve first. It will show

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 the highest percentages of the problem to the lowest in
order.
b) Kano Model Diagram
The researcher sees the relation of each feature by seeing
the performances of the company and customer satisfaction
uses the Kano Model. The features also will be categorized
become attractive, must-be, reverse, one-dimensional,
questionable, and indifferent.
Analyze Phase
This phase consists of how the researcher analyzes the collected
data to find the solution to problem identification. This phase
will be into several steps:
a) Brainstorming and developing the solutions
This method is used to determine the possible outcomes for
the problem. It tends to more about the solution on how to
improve the CAV.
b) Failure Model Effect Analysis (FMEA)
This tool determines the possible risk that can appear in the
new process. FMEA is the method designed to identify the
cause and effect of possible failure on the system for a
given product or process, Islam [6].
It is useful for Indihome stakeholders to take awareness of
these kinds of risks in the future.
Design Phase
This phase has aims to make the design of the new process or
product. Here are the steps:
a) Detailed of solution
A detailed solution is about explaining the details of the
solution itself.
b) Process Mapping
Process mapping is a process that tends to more in
explaining the flow of how the solution will work. This
method consists of a Sequence Diagram and Activity
diagram.
Verify Phase
According to Johnson [7], the intent of the Verify Phase
includes facilitating the buy-in of process owners, designing a
control and transition plan, and concluding the DMADV
project. This phase is the last phase which means, the step that
will conclude whether the design process or product can satisfy
all the requirements and success to give better performance or
not.
IV. DATA ANALYSIS
A. Define
To define the aspects that need improvement by the company,
there are several steps to define the needed aspect. Based on the
methodology, the define step will be divide into several tools
used by the researcher in order:
Identify the Critical to Quality (CTQ)
CTQ is a key measurable characteristic of a product or process
that must reach the standard or limit of specifications to satisfy
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the needs of customers. approach is a structural and disciplined
methodology driven by critical to quality characteristics
(CTQs), Yihai He, [8] CTQ is a translation of measuring the
quality of a product from the Voice of Customer. With this
CTQ, the improvements made will be in line with the
requirements of the customer (obtained from the Voice of
Customer).
Statistical Package for the Social Science Process
The researcher used SPSS version 22.0 in determining the data
whether is valid to be used or not, then the SPSS tests that
should be taken are Validity Test, Reliability Test, and
Normality Test.
Validity Test
To test the data from the questionnaire that the researcher got is
either valid or invalid, the researcher used SPSS tool. Customer
Service will confirm the validity of the features based on the
complaint and suggestion that they received. For SPSS analysis,
the item is valid if the R-calculation is greater than R-table with
the significance is not greater than 0.05 or 95%. Since the
researcher uses the second questionnaire, it means that the total
of respondents is 50. From this information, it can conclude that
the r-table is 0.27. Since all the the values of the feature are
greater that the r – table, therefore the data is valid and able to
use.
Reliability Test
The reliability of the item is determined by comparing
Cronbach’s Alpha of each variable with 0.6. The variable is
reliable if its Cronbach’s Alpha is greater than 0.6. Here, the
researcher chooses features from F1 until F26 as X or
independent variable and Customer Satisfaction as Y or
dependent variable.
Reliability Statistics
Cronbach's Alpha N of Items
.756 27
For the overall Cronbach’s Alpha, it is mention 0.756, which is
greater than the standard Cronbach’s Alpha. The conclusion for
this analysis is all the features are reliable.
Normality Test
Normality Test has the aim to know either the residual value in
the regression model is normally distributed or not. The
normality test for regression done by using a normal Predicted
Probability (P-P) plot. If the data is normally distributed,
therefore the plots will place around the diagonal line. On the
other hand, if the plots spread far from the diagonal line, it
means that the data is not normally distributed. The researcher
concludes that the data is normally distributed.

Fig 2. Normality Test Result
Figure 3 shows that all the plots are located around the line.
There is no any plots located far from the line. It means that
the data is normally distributed.
B. Measure Phase
Pareto Chart
To be able to rank the priorities regarding aspects that need to
address, internally must first know the proportion of each
aspect/features/functionality of the Strategy Initiatives. For that,
the following is the proportion of aspects of strategic initiatives.
category, which means that those features have a linear
relationship with the performances that the company gives to
the customers. The more performances or improvements they
give, the more customers will satisfy. Only one feature that
includes as Must Be category means that this category should
have on the customer requirement. If this feature does not exist,
it will make the customers will be unsatisfied. This table also
shows the nominal of Better and Worst Scores in each feature.
The (-) sign in the Worst column means the unsatisfied score if
the feature does not occur for the customers.
After analyzing the customer satisfaction with the Better and
Worst formula by Timiko, another method is the Kano Model
Analysis. Dul Muchels found this model. This method is used
to convert customer satisfaction in form of 5 options (already
explain in five option variables) include like, must be, neutral,
live with, and dislike to score. The score has variation from -2,
-1, 0, 2, 4. These scores are based on functional and
dysfunctional questions.
By knowing the average positive (functional) questions and
negative (dysfunctional) questions for each feature.
Furthermore, the researcher can enter these values into the Kano
Diagram. The results will show as follows:
Kano Diagram
2,6
F21
2,4
2,2
2 F17
F16
Functional

F24
F15 F20
F22
1,8 F9
F14
F26 F2F10F6 F11
F5F13
F23 feature
1,6 F12
F7 F19 F18 F1 Degree of Achievement
1,4 F25
1,2 F3 Customer Satisfaction
F4
1
0,8
0,8 1,3 1,8 2,3
Disfunctional

Fig 3. Pareto Chart for Strategic Initiatives

In the Pareto Chart above refer to figure 5, the researcher
applied the 80/20 rule. The meaning of this rule is that 80% of
all suggestions and complaints from customers are caused by
conformance quality, quality, service and after-sale service, and
on-time delivery performance. If those four strategic initiatives
will be sum up, therefore the amount of percentage is 76.1 %.
That percentage will be round up become 80%. It means that
those four categories should be managed first than other
complain/suggestions. In order, the first problems that should
be managed are Conformance Quality and followed by Quality,
Service & After-sales Service, and On-time delivery
performance.
Kano Model Diagram
Then the researcher must process the answers from each
customer. Because the data obtained is qualitative, the
researcher uses the Tabulation of Survey method that refers to
the Kano Evaluation table to categorize customer requirements.
There are several features already in One – Dimensional
Fig 4. Kano Model Diagram
The first diagram and the second diagram are the same
diagrams. Where the first diagram shows an image of the same
axis proportion, namely the center point is at point (2,2).
Meanwhile, the second diagram is the result of an enlarged
diagram so that the reader will see the points that represent each
feature.
From the diagram, it concludes that there is only one feature
that has received a high level of satisfaction from the customer
satisfaction. This feature is F21 or a feature that provides the
additional network infrastructure that is sufficient for places
that have high demand or company expansion. Because F21 is
classified as One-dimensional or Performances, the more
networks that are covered by PT Telkom Witel Sumsel, the
higher the level of customer satisfaction. The F7 or Anti-
lighting feature has entered the attractive quadrant even though
the tabulation of the Survey still categorizes it as indifferent. So

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if the company has the F7 feature, it can be said that the
customer will be satisfied, but if F7 is not there, the customer
will not be unsatisfied. The other features are still in quadrant
3, namely Indifferent, although several features belong to
groups that have other categories such as O and M in the
tabulation of the survey. This is because the performance
features of F1, F2, F6, F9, F15, F20, and F22 are still lacking
and need improvement.
The researcher focuses more on the aspect of adjusting the
internet speed according to the amount purchased by the
customer. They need to provide the quality to all customers both
in the city center and in the suburbs. The service from sales will
be more friendly and cooperative to customers, provide promos
or discounts at first installation, increase fiber optic
infrastructure in sequestered areas, adding fiber-optic
infrastructure in an area with a large amount of demand, and
inform the customer if there is any changes or news. These
features are included in the One-Dimensional or Performances
category. This means that the greater the company's
performance on this feature, the higher the level of customer
satisfaction. F21 already robust becoming the CAV. While
features F1, F2, F6, F9, F15, F20, and F22 are the Competitive
Advantage Values and should be integrated to make the
customers satisfied.
C. Analyze
For the analysis phase, the researcher will divide it into several
steps in order. These steps will be used as the information for
the next phase, which is the design phase. Here are the steps in
analyze phase:
Group Brainstorming
After knowing the important functionality and a priority for the
company during the Measure phase, then the
functionality/features must be developed to find a solution. To
find out how a company can process data functionality so that a
solution can be found to improve customer satisfaction, the first
thing to do is to do a brainstorm. Group brainstorming has the
aims to find out the possible solutions to the process for
integrating the CAVs. For this reason, the researcher has
summarized several possible techniques used to overcome the
features required by customers. In this group-brainstorming
step, the researcher will give a brief explanation for each of the
possible solutions. Some of the possible solutions will be
explained as follows:
Scrum Process
Scrum is an agile process that allows us to focus on delivering
the highest business value in the shortest time. It allows the
employees to inspect actual working software (every two weeks
to one month) rapidly and repeatedly. Scrum is part of agile in
project management. Scrum is a method used to deal with
changes that occur rapidly within a company. This method is
used for companies that experience rapid changes according to
customer needs. This method allows the company to act and
take quick steps in dealing with change so that the company will
always be able to meet customer needs. The Daily Scrum is a
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quick daily meeting that gathers all team members to define
which will be the daily tasks and to know the results of the
previous day’s tasks, Carvalho [9]
Value Stream Mapping
Value stream mapping (VSM) is an important tool of the lean
approach and is used to identify value-adding activities and
those considered wasteful of materials and the flow of
information and people, Forno et al [10]. VSM will show which
parts need to be targeted and improved with improvement
projects.By using this, the company will be able to focus on the
part of the production process, which is the root of the feature
problems specified in the measure phase. By using Value
Stream Mapping, the company will minimize the improvement
budget to solve the features based on customer needs. It is
because the company will only be focusing on the process that
has a problem and need improvement.
D. Design
The researcher chooses the scrum process as the proposed
solution because it is more relatable with the condition of the
company. There are three requirements if the company wants to
implement the scrum process, they are development team,
training programs, and facing unstable conditions in the future.
The company should make a special team, called the
development team. The development team has focused on
managing the company changes as their problem, which should
be solved. This team consists of several people with different
expertise. For example, is from financial, research and
development, engineers, etc. This team has authority and access
to elaborate the ideas as creatively as possible. The second
requirement is holding several classes or training related to
using the scrum process. The third is about the unstable
changes. Yes, PT Telkom is one of information and
telecommunication that should face with changes in
technologies. They should be adapted to the new technologies
as soon as possible for fulfilling the customer needs. Here is an
explanation of each phase in the Scrum process:
a) Introduction phase
This stage is the earliest stage in the Scrum process. Before
employees do this stage, employees should conduct the
training first. The purpose of training is for employees to
have basic knowledge about the Scrum process. At this first
stage, they must determine:
• gathering requirements as short user stories.
• Identify all the releases the software product should
have, along with a probably delivery schedule.
• Determine the features as their objectives or goals
that need to be reached within a certain amount of
time. The features that have been determined in the
measure phase called the product backlogs.
b) Sprint Planning Meeting
The sprint planning stage is an advanced stage of holding
introduction. At this stage, employees will focus on the
 plan in the process of integrating competitive advantage
value. The things that will be determined at this stage are:
• First, the meeting is mainly to answer the "What"
question
• Second, focuses on the “How,” the development
team will try to identify tasks from the previously
chosen stories and deduce how much time
• Making the project planner tools such as using Gantt
chart to make the employee easier to see the progress
later.
c) Daily Scrum Meeting
This step is for doing the daily activities, which must be
done every day routinely. The purpose of this step is as a
means of communication between employees regarding
progress, problems faced, and bonding among employees.
The things for this step are:
• Everyday meeting for inspecting. It also has aimed
for bonding process among the team members.
• Answer three questions; what I did yesterday? What
I will do today? What is in my way?
d) Sprint Review
In the fourth stage, employees will evaluate the solutions
they use in integrating their competitive advantage value.
This stage is also said as the stage of measuring the
performance of the solution to improve features, which
consider as the competitive advantage value of Indihome
products. The activities carried out at this stage are:
• Demo the solutions and show the solution process to
the product owner. In this case, the product owner is
the general manager since he has the highest position
in this company.
• Ask the feedback from the product owner.
e) Sprint Retrospectives
The last process is the sprint retrospectives. This process is
used for the finishing process of the products. Therefore,
there are several activities during this step:
• Process improvement. The team will improve
the General Manager's feedbacks.
• Update to the product owner or general
manager. The improved solution will be shown
to the General Manager.
• Success and Failures. The solution success to be
implemented
• Adapt and adjust. The company can adapt and
adjust to the new improvement, which is the
integration of the competitive advantage values.
By using the scrum process, the company can integrate the
features as their competitive advantage values. This scrum
process will be useful if they facing any kind of changes in the
future. The scrum process is designed for future changes. The
Scrum process is agile because it is easy to adapt to any changes
in the future. Thus, the researcher concludes that the scrum
process can be used again to integrate new CAVs in the future.
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V. CONCLUSION
Research about the process to defineg and optimize the
Competitive Advantage Value Using DMADV Approach in PT
Telkom Indonesia, Tbk. has aimed to find the Competitive
Advantage Value that Indihome has. These values will help the
company to improve. So that the company can compete with
other competitors. Since before this brand does not has
distinguisher between them and other competitors. This
research took a one-year process to find the best and appropriate
solution that can answer the research questions.
Based on the research question that already stated before in
chapter 1, the researcher can answer the questions as the solution
for the problem formulation. From the systematic process made
by the researcher finally, the researcher found the desired output.
The researcher can find the Competitive Advantages Values that
Indihome has by using an implementation of DMADV steps.
Based on the analysis, the possible CAVs that are used by
Indihome are F1, F2, F6, F9, F15, F20, and F22.
The description for those features focused more on the aspect of
adjusting the internet speed according to the amount purchased
by the customer. The company should more evenly the quality
provided to all customers, both in the city center or in the
suburbs. For the service from sales will be more friendly and
cooperative to customers, provide promos or discounts at first
installation, and Increase fiber Optic
Infrastructure in sequestered areas, adding fiber-optic
infrastructure in an area with a large amount of demand, and
Inform to the customer if there is any changes or news. These
features are included in the One-Dimensional or Performances
category. This means that the greater the company's
performance on this feature, the higher the level of customer
satisfaction. F21 or called company expansion (Adding Fiber
Optic Infrastructure in an area with a large amount of demand)
already robust becoming the CAV. While features F1, F2, F6,
F9, F15, F20, and F22 are the Competitive Advantage Values
that need to integrate due for making the customers satisfaction
increased.
To integrate the CAVs due to enhance the customer satisfaction,
therefore scrum process is chosen. The Scrum process is chosen
based on several considerations from the SWOT analysis of the
company then decide by using Six Thinking Hats analysis. The
scrum process has an overall score of 37 while another process,
Value Stream Mapping has an overall score of 32. In conclusion,
the researcher concludes that Indihome expansion is the robust
CAV that Indihome can use as their superior value compares
with other competitors. However, several possible CAVs need
to integrate by using Scrum Process.
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