Exploring the "Collaboration for Innovation" Program

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Mamangan Social Sciences Journal Volume 13, Number 1, January-June, 2024

Exploration Of Co-Creation Strategies : On The "Collaboration For Innovation"

Program In The Digital Era

Author(s) : Ida Ayu Parwati, Ida Ayu Oka Martini

Source : Mamangan Social Sciences Journal , Volume 13, Issue 1, January-June, 2024 Publisher : Universitas PGRI Sumatera Barat

Doi : http://dx.doi.org/10.22202/mamangan.vxix.xxxx

Ida Ayu Parwati, Ida Ayu Oka Martini. 2024. Exploration Of Co-Creation Strategies : On The

"Collaboration For Innovation" Program In The Digital Era. Jurnal Ilmu Sosial Mamangan, Volume 13, Issue 1, January-June, 2024: xx-xx.

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Exploration of Co-Creation Strategy: On the “Collaboration for Innovation” Program in the Digital Era

Ida Ayu Parwati

^1*

, Ida Ayu Oka Martini

²

1*Faculty of Masters in Management/National Education University ( Undiknas ) Denpasar Bali Email: [email protected]

2 Faculty of Masters in Management/ National Education University ( Undiknas ) Denpasar Bali Email: [email protected]

3 Study Programs, Faculties, Universities, Cities, Indonesia Email: [email protected]

Abstract

This research seeks to understand the exploration of co-creation strategies in the collaborative strategy program for innovation in the digital era at Bank OCBC through a qualitative descriptive approach. Study data was collected through documentation, observation, and conducting in-depth interviews directly with 4 informants. The data was then analyzed using a triangulation approach, both sources and techniques, which were guided by the theory of Miles et al. The findings indicate that marketing strategies in the current digital era see collaboration between companies and customers through co-creation. At Bank OCBC, it is implemented well by paying attention to dialogue, access, risk assessment and transparency (DART) in the current era of digital disruption, the co-creation process used by Bank OCBC can be shortened by using platforms such as websites and social media so that it takes advantage of this platform by exchanging ideas with customers to see what they want about current banking products or asking for reviews regarding products that OCBC Bank already has and customer satisfaction in using the products they have so that it has an impact on sustainability. This study is able to make a positive contribution to marketing literature in product marketing and practically for banks in maintaining the business sustainability of financial institutions in Indonesia.

Keywords: Co-creation, DART Model, Sustainability INTRODUCTION / INTRODUCTION

Financial institutions, especially banking, are currently one of the main pillars in the running of an economy in a country, an institution to collect funds from the public as well as invest these funds in other forms, in the form of financial assets such as credit, various securities, current accounts, and other productive assets related to bank or non-bank institutions. The world of banking is one of the important needs in people's lives, now developments make it even easier for customers. One of the factors influencing this development is the information and communications technology sector. Not only in individual needs, but banking also has a big role in the country's economy. Based on data from the Financial Services Authority, in the third quarter of 2017, there were currently 115 banks in Indonesia. The Financial Services Authority

Volume 13 isseu 1, January-June 2024, p. xx-xx ISSN: 2301-8496 (Print), ISSN: 2503-1570 (Online) https://ejournal.upgrisba.ac.id/index.php/jurnal-mamangan/index

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also believes that the number of banking businesses in Indonesia could decrease in 2018 with bank consolidation. So that the industry is expected to develop more efficiently Ayufi, Pertiwi, Shabrina, & Irwansyah (2019) .

Wibowo (2017) stated that the development of world technology towards an all-digital direction is currently growing very rapidly. This is also inseparable from the Covid-19 pandemic which is one of the catalysts for accelerating the transformation of human life towards the massive use of digital technology. Hadi (2019) The current rapid digital transformation has pushed the industrial revolution 4.0 era to the society 5.0 era. Society 5.0 or what is known as super smart society is an idea that explains the existence of a revolution in society that utilizes technology while also considering human and humanities aspects.

The current era of digitalization allows everyone to connect without any boundaries ( connected ) which will create contemporary business models. It is not surprising that various applications that utilize the internet, one of which is social media, are growing very rapidly in Indonesia. Abdullah, Wulandari, & Nirwana (2019) Social media is media used to socialize online by utilizing internet technology which allows humans to connect with each other and interact with one another without being limited by space and time.

In general, marketing that utilizes digital technology is known as digital marketing . Theresia (2018) believes that currently digital marketing is one of the marketing media that is popular with the public and functions to support various activities carried out. This will influence people's changing lifestyle patterns, marked by changes in people's shopping patterns from conventional (traditional) to modern marketing ( digital marketing ). Digital marketing makes it possible for transactions to occur anytime and anywhere. Novi Eko Saputro (2018) argues that online markets have. In this era of digitalization, everything involves technology and speed in the process of adapting to the use of an innovation created from this technology which will of course influence the development of products that will be created in financial institutions, especially banking.

Based on data from the Financial Services Authority Widijantoro, Syafi'ie, Wahyu, &

Zulhendra (2019) in the third quarter of 2017, there are currently 115 banks in Indonesia. The Financial Services Authority also believes that the number of banking businesses in Indonesia could decrease in 2018 with bank consolidation. So the industry is expected to develop more efficiently. Research by Ayufi et al. (2019) found that banks still have obstacles in implementing the Co-creation strategy in depth, including: knowing aspects of user empowerment from planning to evaluation .

The results of preliminary studies carried out at the initial stage of research can be seen in the creation of contemporary business models that are in line with market desires, requiring a strategy that can better see what opportunities can win the market, taking into account digital technology which is currently the main tool used by all levels. community in various ways at OCBC Bank, so one strategy that can be created in digital marketing which is currently developing is a co-creation marketing strategy . Co-creation places consumers as parties who actively share to create value or products. Tobergte & Curtis (2013) describe co-creation as a ladder, where the higher the level of co-creation , the more valuable the co-creation results that are created together. The first step is consumer involvement in rating a product or service , reviewing the product or service and discussing the company's product or service. A higher level of co-creation can take the form of creating ideas, advertising, brands and products.

Bank OCBC NISP (formerly known as Bank NISP) or hereinafter referred to as "Bank", is the fourth oldest bank in Indonesia which was founded on April 4 1941 in Bandung under the name NV Nederlandsch Indische Spaar En Deposito Bank. OCBC Overseas Investments Pte. Ltd since 2005 is the majority shareholder with ownership as of the end of 2019 of 85.1%.

Recognized for its stability and strong finances, OCBC Bank is a shareholder that always provides

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full support to OCBC Bank for the management of commercial banking services in Indonesia.

Because it is the 4th oldest bank established in Indonesia, it will definitely be a challenge in maintaining the existence of Bank OCBC itself, especially in the era of digitalization, new innovation/co-creation needs to be implemented in order to be able to compete with other competitors both in terms of technology and development. products, services to customers, and innovations in this era of modernization that ensure customers do not feel bored with banking products and services. Because in this era the most visible needs and desires of customers are how banking can provide convenience and speed in the payment transaction process.

Meanwhile research by Amalia, Lubis, & Khoeriyah (2021) indicates that Co-Creation has many positive effects on the banking world, namely: there is a significant positive relationship which shows that there is active interaction and has tried to explore the views of the Co-creation Strategy in banking, but to the best of the author's knowledge, no research has been conducted to comprehensively explore all the factors that can explain banking intentions in exploring co- creation strategies, especially in the digital era, which of course, if used well, will have a significant positive impact on world sustainability.

Based on this literature, the aim of this research is to explore Co-Creation Strategy : In the "Collaboration for Innovation" Program in the Digital Era.

RESEARCH METHODS

The research design in this study is descriptive research with a qualitative approach which aims to analyze the implementation of the co-creation strategy on the sustainability of Bank OCBC . The research location is Bank OCBC NISP. Regarding the selection of interview informants, researchers used purposive sampling techniques . Data sources through in-depth interviews, observation and data documentation. This is done to obtain deeper information. This research uses the documentation method (Sugiyono, 2017) . Data documents come from OCBC Bank and the official website of OCBC Bank as well as banking-related institutions and institutions in Indonesia. The types of data used are primary data and secondary data. Primary data was collected from in-depth interviews. Secondary data is data that is not directly obtained by researchers but is obtained from other people or other media as support for primary data sources. Data collection techniques using observation, interviews and documentation. The data analysis technique used in this research is qualitative analysis using the data analysis technique Miles, Huberman, & Saldana (2014) with steps for data collection, data reduction, data presentation and drawing conclusions. The profiles of research respondents are listed in the table below:

Table 1

“Respondent Profile”

Code Respondent's

Name Position Gender Age

NS OCBC Bank Business

Team Leader Man

K.S Marketing Funding

OCBC Bank Man Year

elementar

y school OCBC Bank Marketing

Landing Man Year

M.S OCBC Bank Customers Woman Year

PP OCBC Bank Customers Man Year

E.R OCBC Bank Customers Woman Year

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RESULT AND DISCUSSION

The results of the interview relate to how the creation of a product was launched by looking at customer needs in the field , of course with the influence of digitalization in this modern era. He said that:

" ... for product creation, each branch usually always provides ideas and reviews... usually before launching a product, we are informed beforehand to study and think about the right strategy when the product will be launched, in terms of who is right for the product, the timing. "Just right, how is the branding of the product, because when the product is launched it means the product must sell well and be in demand by the market. "

Based on the results of this conversation, the researcher saw the seriousness of OCBC Bank regarding the launch of a product, then the researcher wanted to know the strategy if a

product was to be launched. He said that:

" Our first step is usually to ask for feedback from customers who have used our service features... "

When learning about this, the researcher saw that coordination between the team leader and marketing was very influential in creating success in the launch of a product, therefore the researcher wanted to know about the digital technology used by BANK OCBC in the current era of banking digitalization:

“ OCBC Bank itself can carry out transactions and be accessed throughout the world. The best digital thing OCBC has is called Global Wallet, which is a transaction tool via an ATM card that will detect the currency directly when used... "

When the researcher heard this, the researcher was very impressed because he had only heard in detail about the digital banking technology used by OCBC Bank. The researcher continued by asking what the usual obstacles related to the use of transaction technology to leaving the country often occur. He said that:

“ ……. "The currency exchange rate in the other country is immediately detected so there is no need to contact the treasury department to update the currency value at that time, so this is no longer a problem for us ."

Looking at the results of the conversation with the OCBC Bank business team leader, it was clear that digital banking was ready for cross-border digital transactions. The researcher wanted to know whether these things were factors in the sustainability of OCBC Bank until now, he said that:

“ …….we also provide services at our branch on Sunset Road, namely a premium guest house, so all services can be obtained by customers with one visit and one sitting, so our banker will bring a laptop and explain all our products or what is often known as “one stop shopping” ... in a more sophisticated era ”

Discussion

From the results of interviews with informants regarding the exploration of co- creation strategies in the digital era towards the sustainability of Bank OCBC. In this study, researchers used the 3 best components, namely a co-creation strategy involving the DART model, technological readiness, and appropriate service to customers which will later influence banking sustainability, especially Bank OCBC Sunset Road Bali branch.

High-quality interactions that enable individual customers to co-create unique experiences with a company are the key to unlocking new sources of competitive advantage. The building blocks of quality interaction are dialogue, access, risk-benefits, and transparency (DART).

The implementation of the DART model at Bank OCBC Sunsetroad Bali Branch begins with a dialogue or conversation process where before launching a product, the OCBC company always

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strives to touch consumers or customers so that the level of curiosity in the things that customers currently need, so when creating products It contains the customer's decision in looking at the customer's desires and interest in banking products because the customer will be the one who will enjoy the product and use it. In the OCBC company itself, each branch in Indonesia has determined the product to be launched, so when the product is ready by the head office, the branch can execute it by preparing each branch's strategy. This is where the role of dialogue or conversation also seems quite strong and must be used, because banking officer personnel must know which customers are the right ones to give the product by reviewing their current needs, so that when it suits the target market the product will definitely be liked by customers. .

Next is Access, starting with information and equipment. Not only that, access also includes how interactions strengthen customer access to knowledge, information, tools and knowledge. From the research findings at Bank OCBC Sunsetroad Bali Branch, it can be seen that when a product is about to be launched, they always optimize themselves with readiness which is supported by clear information about the product.

Figure 1 “Detailed OCBC Product Information”

Source: official website www.ocbc.id

This can be seen through the main and official information sources by OCBC Bank which makes customers confident and fully understand the product being launched so that customers can feel trust or believe in the readiness of the product itself to serve customers. This website can also be accessed via cellphone, laptop, iPad , computer and all types of technological devices so it can be accessed anywhere and anytime.

Next, namely, Risk assessment or risk assessment , in the research findings the author sees that when customers and companies become co-creators of new value, the demand for information regarding potential risks will increase. They will also be able to better estimate the risks they may face. The risk in question is the possibility of endangering consumers, here we can see that OCBC Bank always provides space for customers to find out all forms of legality.

Firstly, OCBC Bank is a financial institution guaranteed by the Financial Services Authority (OJK) and supervised by the Deposit Insurance Corporation (LPS).

With all the information presented being complete, OCBC still provides space if customers have complaints regarding the products or services provided through customer complaints which can be accessed directly on the official OCBC Bank website. In the interview results, it was also stated that complaints and complaints are answered 1 x 24 hours via email process. and by call in responding to customer complaints for mutual convenience so they are never ignored, let alone not responded to, so OCBC tries to always be responsive in handling complaints or questions about products to customers.

In the research findings, we look at the co-creation strategy created at Bank OCBC where this exploration is used with the aim of partnering with strategic customers, partners or

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employees to find ideas, solve problems, improve performance or create new products, services and products. Even though the co-creation concept is part of the new product development concept, it can actually be applied in various fields. The co-creation process of course requires quite a bit of time, however, in the current era of digital disruption, the co-creation process used by OCBC Bank can be shortened by using platforms such as websites and social media so that you can utilize these platforms by exchanging ideas with customers. in seeing their desires for current banking products or asking for reviews regarding products that OCBC Bank already has and customer satisfaction in using the products they have. The activity (topic) of the co-creation strategy seen at Bank OCBC in the results of this research is that the contribution has been determined first by the company and then the selection of the idea is also determined by the company, so the type of co-creation is submitting which will later be adjusted for implementation to customers By truly understanding what customers' needs are at that time, the target market is clear and the products provided are right on target so the sales process can be distributed more quickly. In the results of the research findings this time, it can be seen that OCBC has a superior service which is given the name "Premium Guest House" where this service is the service that is currently most emphasized to customers. If customers come to the office, they no longer have to carry out conventional banking service transactions like in the past, now the Bank OCBC offers services. If customers come, they will be immediately served by PBO (Personnel banking officer) who will serve customers one by one by explaining products and services via laptop or iPad which contains all information about OCBC Bank starting from products, services and handling. Another objection is that this is often called "one stop shopping"

by OCBC because this service process makes it quicker for customers to get the desired product, while explaining and implementing an approach so that PBOs only need to provide the right solution for the customer's needs at that time so that the process is closed. it will happen faster.

Apart from that, customers are psychologically happier and feel closer because they are handled in a personalized manner regarding superior products owned by OCBC itself. One of OCBC's current superior products according to research findings is Global Wallet, especially for OCBC Bank at the Sunsetroad Bali branch. This product is in great demand because the target market in Bali is foreign residents or foreign nationals. The Global Wallet feature is a feature added to Mastercard Debit ATM cards so that customers when making Cash Withdrawal and Shopping transactions abroad are not subject to exchange rate conversions and can choose trusted and official financial institutions such as banks that provide bank notes or global wallet facilities so that foreign currency balances can be withdrawn at foreign ATMs.

In the digital era like now, of course foreign exchange buying and selling transactions via mobile banking applications will make things much easier. This way, we don't need to bother going to a money changer to buy foreign currency. With the presence of the Global Wallet feature for OCBC NISP Debit Mastercard ATM card holders who have a Tanda 360 Plus account, their foreign exchange needs while abroad will now be guaranteed. The Global Wallet feature is a feature added to Mastercard Debit ATM cards so that customers when making Cash Withdrawal and Shopping transactions abroad are not subject to exchange rate conversion.

Through OCBC's ONe Mobile, we can buy all 11 foreign currencies, thus providing easy transactions at competitive exchange rates. The foreign currency purchased will then go directly into the destination currency account and be ready to be withdrawn by cash abroad. One of these products is a superior product that is always in demand by many customers at OCBC Bank, especially the Sunsetroad Bali branch, because of the ease and speed of transactions which really make customers feel comfortable anywhere and anytime.

The results of the research findings in this case are seen where the sustainability of a business is seen from how the company is able and prepared to accept change in every era.

Because seen from the results of this research, Bank OCBC has been around for decades and is

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one of the banks that has been around for quite a long time in Indonesia, of course from time to time Bank OCBC has gone through this. Looking at the current era, namely the very modern era of digitalization, we can see Bank OCBC's readiness to go digital. According to them, go digital, where if you make transactions, access information, there are complaints that can be made anywhere and at any time with easy and fast response . This can be seen from the readiness of OCBC's mobile baking which can be accessed anywhere, both at home and abroad, so that transactions using cards can also be made abroad. Responses to complaints that are sent directly via email without having to wait a long time really reflect their readiness as a banking institution for digitalization which is becoming more modern day by day. Therefore, many customers seem comfortable using the OCBC online banking service platform for transactions because it is suitable for this digital era and easy to understand. Obtaining information also now no longer requires coming to the office, there are lots of options, such as the official website which contains all complete and detailed information and is connected directly to the OCBC call center service number at each branch the customer wants.

CONCLUSION / CONCLUSION

Implementation of the co-creation strategy for Bank OCBC's sustainability is carried out by determining the target market and the right time when creating a product, looking at access or information facilities for customers to determine the product they want, providing space when there are complaints from customers, and always being open to the flow of a product. product to the price that will be set. This is part of the new product development concept, but actually it can be applied in various fields. The co-creation process of course requires quite a bit of time, however, in the current era of digital disruption, the co-creation process used by OCBC Bank can be shortened by using platforms such as websites and social media so that you can utilize these platforms by exchanging ideas with customers. in seeing their desires for current banking products or asking for reviews related to products that OCBC Bank already has and customer satisfaction in using the products they have so that it has an impact on the sustainability or continuity of the banking institution's business to date. Further research is to be able to research and examine more deeply other factors not examined in this research that influence the implementation of other digital marketing strategies in this era of modernization so that later we can find out what steps must be taken to be even better in the future .

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