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.
1. INTRODUCTION
1.1. 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
Muhtia Luchfi
Department Industrial Engineering
Sampoerna University
Jakarta, Indonesia
Muhtia.luchfi@my.sampoernauniversity.ac.id or
muhtialuchfi@gmail.com
adjusting to the existing technological advancements.
Like PT Telkom Indonesia Tbk. Witel (Wilayah
Telekomunikasi) South Sumatra must always know and
follow 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 2.3. DMADV Approach
the range of 1st – 3rd trimester in 2020, the amount of
installation toward Indihome product tends to decline DMADV is one of six sigma approaches that has aimed
compared to a couple of previous years. Besides, starting to increase the quality of the performance. According to
from the 4th trimester in 2018, which is October, the Byun [5]
uninstallation of Indihome products tends to be The DMADV process and tools are used primarily during
increased. It implies that there is something wrong with the development and qualification process of designing a
the performance of PT Telkom Indonesia, Tbk. Witel product.
South Sumatera for the last three trimesters, both
installation and uninstallation data. A company needs to 3. METHODOLOGIES
analyze the problem that occurs earlier. Many ways to 3.1. Sampling Design
find the root problems and solve them. To calculate the sample size, the first thing to do is
categorize the data either it is finite or infinite number.
1.1 The objective of the Study Since the data related to the number of customers in the
a)The objective of this research is to find the process South Sumatera Area, therefore the category of the data
by which can be used in defining the Competitive is a finite number. For this research, the writer used a
Advantage Value (CAV) that distinguishes confidence interval of 95% or 0.05, the proportion value
Indihome from other brands. of 0.5, the margin of error is 14%, and the population is
b) Solve and/or integrate the Competitive Advantage 10,000.
Value that can suit the customer needs and exist in
the market. 𝑧 2 . 𝑝(1 − 𝑝)
𝑛= 𝑒2 (Equation 1)
2. LITERATURE REVIEW 2
𝑧 . 𝑝(1 − 𝑝)
1+( )
2.1. Competitive Advantage Value (CAV)
𝑒2. 𝑁
Competitive advantage is the ability obtained through
and the resources of a company to achieve higher
(1.96)2 . 0.5(1 − 0.5)
performance than other companies in the same industry (0.14)2
or marketplace. A company needs to know the ability, 𝑛= (Equation 2)
(1.96)2 . 0.5(1 − 0.5)
strength, and Competitive Advantage Value (CAV) to get 1+( )
(0.14)2 . 10000
the first position on the market. After Porter developed
this concept, the issue of competition among the
𝑛 = 48.76
companies in the same industry began to increase and
Based on equation above, the result of the sample size is
took a position for this. Competitive advantage comes
48.76≈ 49. It means the number of respondents of the
from the company's ability to utilize its internal strengths
to respond the external environmental opportunities questionnaire should be around or at least 49
while avoiding external threats and internal weaknesses, respondents.
Mooney [2] 3.2. Data Analysis
2.2. Strategic Initiatives Define Phase
According to Lmac [3] the strategy is the creation of a This phase contains the explanation in defining the
unique business model that harnesses the positive project and making the case why this problem needs to
advantage, allowing the internal stakeholder to fulfill solve by using the DMADV approach. Therefore, the
their purpose. In other words, a strategy is a tool used by researcher will explain the methods/tools that support in
a company to achieve its predetermined goals. To the Define Phase:
achieving success, a company must have careful
a) Problem Identification
planning. This planning is usually called a strategy.
Problem definition is the first step that the
Based on Nahmias and Olsen [4], the survey of 217
researcher will be doing; it has aimed to define the
industry participants, the following factors were deemed
problem that needs to solve by the researcher.
the most important for gaining a competitive edge in the
b) Voice of Customer
coming years. They are listed in the order of importance:
Voice of Customer is one of the data needed by the
conformance quality, on-time delivery performance,
researcher to gather the information based on the
quality, product flexibility, after-sale service, price,
customer’s point of view.
broad-line (features), distribution, volume flexibility,
c) Data Grouping
and promotion.
 The collected data will be group into several aspects
or features. Therefore, the researcher easier to
elaborate on the data in the next phase.
Measure Phase
This phase consists of the measured data. The aim is to
understand the customer requirement based on priority
and 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 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.
4. DATA ANALYSIS
4.1. 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 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.
4.2. 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.
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 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
2,4
2,2
2 F17
F16
Functional
F24
F15
1,8 F9
F14
F26 F5F2F10F6 F11
F13
F23
1,6 F12 F1
1,4
F7 F19
F25
F18
1,2 F4 F3
1 phase. Here are the steps in analyze phase:
0,8
0,8 1,3 1,8
Disfunctional
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 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
F21
integrated to make the customers satisfied.
4.3. Analyze
F20
F22
feature For the analysis phase, the researcher will divide it into
Degree of Achievement several steps in order. These steps will be used as the
Customer Satisfaction information for the next phase, which is the design
2,3
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 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.
4.4. 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 probable
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.
5. 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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