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What Indonesia wants: Homeland innovation
Is pursuing high-tech industries strategically fit for Indonesia?
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Innovation is oftentimes associated with advanced technology, or rocket science. This is not always the case. Innovation is, in essence, about matching the right solution to real problems. (Shutterstock/File)
I
nnovation is inherent in democratization! Everyone may talk about innovation; the fact is, we are the masters of post-event analysis.
Let’s take the case of the recent closure of 7-Eleven Indonesia, which local consumers affectionately dubbed “Sevel.” One analysis put the blame on a regulation that is incompatible with the “disruption” introduced by the convenience store chain in Indonesia. Meanwhile, others praised 7-Eleven Indonesia for successfully supporting the “hang-out” culture of young people.
But we rarely hear about the top or bottom-line performance a business like 7-Eleven should pursue. It’s the other side of the coin in the retail industry, and lies on an orchestrated flow of goods, information and cash among players in the supply network.
The discussion should then be about supply network design, determining who serves who and how many, and when to serve to maximize revenue or profit per square meter of the store. And this isn’t sexy, is it?
“Easier said than done” always holds true for innovation. Those in top management agree that innovation is strategically important to firms’ profitability and sustainability. However, in practice, most companies are still running business as usual. The fact is that innovation is not for everyone. That’s the global picture of innovation. The picture in Indonesia is not even exhilarating. Companies here seem to face huge inertia with regard to innovation.
To understand the current state of innovation in Indonesia, take a look at what we consume in our daily lives. For functional products like watches, smartphones, cars, motorcycles, laptops, health devices, fitness equipment and eyeglass frames, etc., are these locally designed and manufactured by local companies? Almost none are. Not to mention entertainment: do we watch mostly local movies or Western? Do we still go to local concerts? Just few. Like it or not, most of our needs, wants and desires are fulfilled by goods and services that come from outside our country.
Then, what should typical innovation from our homeland be? Visit any domestic products exhibition, there are enough product varieties on offer, ranging from common to high-tech. Of all the products on display, which is the most innovative that makes us proud as a nation?
