Strategic management in digital transformation: prioritizing strategic initiatives through Analytic Hierarchy Process (AHP) in Indonesia’s services sector
Abstract:
Purpose: The rapid pace of digital transformation has significantly impacted the IT services sector, particularly in emerging markets, such as Indonesia. This thesis explores the strategic challenges faced by Indonesian IT service providers as they navigate a competitive landscape characterized by evolving customer demands, technological advancements, and market dynamics. This research aims to prioritize strategic initiatives that align with market needs and enhance the competitive positioning of these providers.
Research Methodology: By integrating strategic management frameworks such as Porter’s Five Forces, Value Chain Analysis, and SWOT Analysis with the Analytic Hierarchy Process (AHP), this study addresses the issue of stagnant revenue in PT ABC, a leading IT service provider in Indonesia.
The findings indicate that AI-based product innovation and the development of low-code solutions are critical strategies for driving sustainable growth and meeting the increasing demand for advanced technological solutions.
Limitations: This study underscores the importance of customer-centric approaches and continuous adaptation to maintain a competitive edge in a volatile, uncertain, complex, and ambiguous (VUCA) environment.
Contributions: This research contributes to the strategic management literature by demonstrating the practical application of AHP in the context of digital transformation within the IT services sector, and provides actionable insights for IT service providers in emerging markets facing similar challenges.
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Adil, A., Sapar, S., Marhani, M., & Rosa, I. (2024). The influence of individual characteristics and work discipline on the performance of PT employees Bank Syariah Indonesia Palopo Branch. Journal of Multidisciplinary Academic and Practice Studies, 2(1), 1-8.
Agbo, E., & Egbunike, C. F. (2024). Climate change disclosure and financial performance of quoted oil & gas firms in Nigeria. Annals of Management and Organization Research, 5(3), 163-173.
Alamsyah, M. I., Wibisono, C., & Satriawan, B. (2023). Analysis of factors affecting the quality of Bintan District government financial reports. Journal of Governance and Accountability Studies, 3(1), 13-27.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120.
Baron, J. V. (2023). Blackboard system and students’ academic performance: an experimental study in the Philippines. Journal of Social, Humanity, and Education, 3(3), 173-184.
Christensen, C. M. (1997). The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail.
Doloi, H. (2008). Application of AHP in improving construction productivity from a management perspective. Construction Management and Economics, 26(8), 841-854.
Emmanuel, O. O. (2021). The dynamics of work environment and its impact on organizational objectives. Annals of Human Resource Management Research, 1(2), 145-158.
Grant, R. M. (2019). Contemporary strategy analysis: Text and cases. (No Title).
Hanson, D., Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Competitiveness and globalisation: Cengage AU.
Ichdan, D. A. (2024). Analysis of employee performance through productivity: The role of kaizen culture, motivation, and work discipline in the manufacturing industry. Annals of Human Resource Management Research, 4(1), 13-28.
Li, F., Phoon, K. K., Du, X., & Zhang, M. (2013). Improved AHP method and its application in risk identification. Journal of Construction Engineering and Management, 139(3), 312-320.
Porter, M. (1979). How Competitive Forces Shape Strategy.'Harvard Business Review, March-April, 137-145.(1979b). The Structure Within Industries and Companies Performance," Review of Economics and Statistics, 61, 214-227.
Porter, M. E. (1985). Technology and competitive advantage. Journal of business strategy, 5(3), 60-78.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 78.
Sama, R., Adegbuyi, J. Y., & Ani, M. I. (2021). Teaching to the curriculum or teaching to the test. Journal of Social, Humanity, and Education, 1(2), 103-116.
Supheni, I., Ivada, E., Novianti, G. E., & Wiwin, W. (2022). Sustainable tourism from the perspective of tourists in Nganjuk Indonesia. Journal of Sustainable Tourism and Entrepreneurship, 3(3), 235-252.
Vial, G. (2021). Understanding digital transformation: A review and a research agenda. Managing digital transformation, 13-66.
Wind, Y., & Saaty, T. L. (1980). Marketing applications of the analytic hierarchy process. Management science, 26(7), 641-658.
- Adil, A., Sapar, S., Marhani, M., & Rosa, I. (2024). The influence of individual characteristics and work discipline on the performance of PT employees Bank Syariah Indonesia Palopo Branch. Journal of Multidisciplinary Academic and Practice Studies, 2(1), 1-8.
- Agbo, E., & Egbunike, C. F. (2024). Climate change disclosure and financial performance of quoted oil & gas firms in Nigeria. Annals of Management and Organization Research, 5(3), 163-173.
- Alamsyah, M. I., Wibisono, C., & Satriawan, B. (2023). Analysis of factors affecting the quality of Bintan District government financial reports. Journal of Governance and Accountability Studies, 3(1), 13-27.
- Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120.
- Baron, J. V. (2023). Blackboard system and students’ academic performance: an experimental study in the Philippines. Journal of Social, Humanity, and Education, 3(3), 173-184.
- Christensen, C. M. (1997). The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail.
- Doloi, H. (2008). Application of AHP in improving construction productivity from a management perspective. Construction Management and Economics, 26(8), 841-854.
- Emmanuel, O. O. (2021). The dynamics of work environment and its impact on organizational objectives. Annals of Human Resource Management Research, 1(2), 145-158.
- Grant, R. M. (2019). Contemporary strategy analysis: Text and cases. (No Title).
- Hanson, D., Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Competitiveness and globalisation: Cengage AU.
- Ichdan, D. A. (2024). Analysis of employee performance through productivity: The role of kaizen culture, motivation, and work discipline in the manufacturing industry. Annals of Human Resource Management Research, 4(1), 13-28.
- Li, F., Phoon, K. K., Du, X., & Zhang, M. (2013). Improved AHP method and its application in risk identification. Journal of Construction Engineering and Management, 139(3), 312-320.
- Porter, M. (1979). How Competitive Forces Shape Strategy.'Harvard Business Review, March-April, 137-145.(1979b). The Structure Within Industries and Companies Performance," Review of Economics and Statistics, 61, 214-227.
- Porter, M. E. (1985). Technology and competitive advantage. Journal of business strategy, 5(3), 60-78.
- Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 78.
- Sama, R., Adegbuyi, J. Y., & Ani, M. I. (2021). Teaching to the curriculum or teaching to the test. Journal of Social, Humanity, and Education, 1(2), 103-116.
- Supheni, I., Ivada, E., Novianti, G. E., & Wiwin, W. (2022). Sustainable tourism from the perspective of tourists in Nganjuk Indonesia. Journal of Sustainable Tourism and Entrepreneurship, 3(3), 235-252.
- Vial, G. (2021). Understanding digital transformation: A review and a research agenda. Managing digital transformation, 13-66.
- Wind, Y., & Saaty, T. L. (1980). Marketing applications of the analytic hierarchy process. Management science, 26(7), 641-658.
