STRATEGY DEVELOPMENT OF SALES ORGANIZATION USING FUZZY AHP: DIGITAL TRANSFORMATION OF FMCG

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STRATEGY DEVELOPMENT OF SALES ORGANIZATION USING FUZZY AHP:

DIGITAL TRANSFORMATION OF FMCG

Adhitya Rendra Kusuma Rizal Syarief Arry Ekananta Anggraini Sukmawati

School of Business, IPB University, Bogor City, Indonesia

Abstract: A clear understanding of internal strength allows the company to innovate and adapt in a highly competitive Fast-moving consumer goods market. Therefore, the company's ability to oversee risk and opportunities deter- mines the company's resilience. By employing homogeneous purposive sam- pling, which focused on the member population of 11 FMCG companies, the present study processed quantitative data from a questionnaire using a Likert scale and qualitative data through in-depth interviews with stakeholders. The data was collected through one-on-one in-depth interviews with 11 respondents online and offline in 12 major cities from August to November 2022.

Later, questionnaires were processed using AHP Fuzzy to explain and take into account the role of decision-makers resembling FMCG leaders by defining interactive factors, actors, objectives, and strategies. Factor-actor analysis found that the sales director was the actor with the most influential role in the leadership factor, the sales manager was influential in the Organizational Citi- zenship Behavior factor, and the sales director was a prominent actor in sales managementcontrol.Inincreasingeffectiveness/efficiencyandachievingsales targets/sales growth set by the company, prioritized strategy can be done through the development of leadership, capability, and human resource capacity.

Besides, customer/business partner-oriented digitalization is vital for increasing customer/business partner satisfaction with the company's services/business processes. Furthermore, the present study found leadership models as critical for digital transformation with the realistic scenario (iterative improvement) in all likelihood. Sales organizations are expected to consistently and continuously conduct experiments to find new ways of working and produce digital initiatives that companies need to answer customer/consumer demands.

Those strategies can be done by clearly identifying factors, actors, objectives, and strategies for better business execution in digital transformation.

Keywords: AHP Fuzzy Analysis, Digital Transformation Strategy, Factor Analysis, FMCG Companies, Sales Organizations

CITATION

Kusuma, A. R., Syarief, R., Ekananta, A., and Sukmawati, A. 2023. Strategy Development of Sales Organization Using Fuzzy AHP: Digital Transformation of FMCG. Jurnal Aplikasi Manajemen, Vol- ume 21, Issue 4, Pages 1074-1090. Malang: Universitas Brawijaya. DOI: http://dx.doi.org/10.

21776/ub.jam.2023.021.04.16.

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1075 INTRODUCTION

Rapid transformations in the Fast-moving consumer goods (FMCG) companies have made this industry stand out as one of the most popular industries for entrepreneurs. In addition, business players tend to perceive the FMCG market niche as easy to work with because the business scale for the consumer product is pervasive. Since a transformation of transactions causes a shift in behavior and sales conducted remotely, a paradigm shift in the industry with clear guidelines for adopting digital transformation using the right business strategy is urgently needed (Priyono et al., 2020).

According to Krogue (2013), one distingui- shing digital-based sales from conventional sales is the independence from the selling-only princip- le, where conventional sales are usually limited to answering questions about the product being sold without considering relationship development. In responsetothis,astrategybymanagementisneed- edforacompanytosustainandmakeprofitsinthe digital transformation they are carrying out, considering that digital transformation has touched the social sphere in transactions (Stolterman and Fors, 2004) and the creation of business models (Kohli and Johnson, 2011; Rogers and Sparviero, 2011;

Zhu et al., 2006).

Matt et al. (2015) found that a digital transformation strategy consisted of defining goals and action plans by leveraging technology essential for harmonizing technology use, changes in value creation, structural changes, and financial aspects.

Even though it sounds closely related to the information technology department, digitization can have a positive impact on marketing, research and development, production, and logistics (Jackson and Dunn-Jensen, 2021; Kitsios and Kamariotou, 2021; Martínez-Caro et al., 2020; Westerman et al., 2014). Besides, according to Nemati and Alav- idoost (2019), sales and operations run by humans as actors are the essence of business because they include holistically setting goals, decisions, and strategies that affect financial performance, efficiency, and service levels.

Although defining actor roles, goals, and strategies in determining decisions in digital transformation requires the benefits of a systematic rating scheme, most of the research (Bharadwaj et al., 2013; Bleicher and Stanley, 2017; Grover and

Kohli, 2013) focused on digital business strategies toward the company's internal inspection and eva- luationindecisionmaking.Otherstudies(Bleicher and Stanley, 2017; Yeh, 2017) explored various digital business strategies, including the scale of digital business strategy, the speed of digital business strategy, and sources of business value creation in digital business strategy. Furthermore, they discussed digitalization as a catalyst that enables top management to achieve sustainable economic success by increasing the efficiency and effectiveness of strategic decision-making.

Although several studies (Nemati and Alav- idoost, 2019; Nozari et al., 2019; Robinson Jr et al., 2005) examined key performance indicators for effective management and industries' percep- tion of new technology in FMCG digital transformation using the Non-Linear Fuzzy Method and fuzzy mixed integer linear programming, they did not take interactions into account. Furthermore, those few studies did not investigate the benefits of implementing a systematic rating scheme that enables leaders to identify factors, objectives, and strategies in FMCG digital transformation. Plan- ning and decision-making by identifying effective solutions in designing FMCG Indonesia's business strategy is undoubtedly needed. Therefore, it is vital to know the factors determining digitization's success and the actors who play a role in it.

Top management must continuously innovate and find new ways to increase sales effectiveness and efficiency to ensure the company can adapt to changes and market dynamics. Innovation and adaptability are essential for companies to co- mpete in the highly competitive FMCG market.

Therefore, the company's inability to manage will riskthecompany'sresilience.Forthatreason,mas- teryinchangemanagementmustbeownedbyeve- ry company wanting to keep thriving. The present study explains the role of decision-makers resembling FMCG leaders in Indonesia by defining factors, actors, objectives, and strategies and considering interactions using AHP Fuzzy modeling. The Fuzzy AHP approach was chosen since this method can portray expert knowledge by combining traditional AHP with fuzzy set theory to overcome uncertain judgments. Priorities related to the cor- rect factor and actor relationships will make it easier for a company to determine company goals.

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Table 1. The Intensity of Interest's Scales and Pairwise Comparison of Triangular Fuzzy Numbers (TFNs)

Crisp Linguistic scale TFNs TFNs Invers

1 Comparison of the similar elements (1, 1, 1) (1, 1, 1)

2 Intermediate (1/2, 1, 3/2) (2/3, 1, 2)

3 One element is somehow more important than the other (1, 3/2, 2) (1/2, 2/3, 1) 4 One intermediate element is quite essential than the other. (3/2, 2, 5/2) (2/5, ½, 2/3) 5 One element is significantly stronger than the other. (2, 5/2, 3) (1/3, 2/5, 1/2)

6 Intermediate (5/2, 3, 7/2) (2/7, 1/3, 2/5)

7 One element is stronger in importance than the other (3, 7/2, 4) (1/4, 2/7, 1/3)

8 Intermediate (7/2, 4, 9/2) (2/9, ¼, 2/7)

9 One element is absolutely more important than the other (4, 9/2, 9/2) (2/9, 2/9, ¼)

Furthermore, companies will be able to determine strategy and business execution when faced with digitaltransformationchallengesbecause thecompany's foundation has been steadfast in identifying factors, actors, and objectives.

Fuzzy Analytical Hierarchy Process (FAHP) The Fuzzy Analytical Hierarchy Process (FAHP) is one of the AHP methods with a fuzzy approach to help determine prioritized strategies for company performance's sustainability. This method was chosen because it can solve criteria- related problems with high subjectivity suffered by the AHP method. In addition, this method helps in measurements involving subjectivity within humans with the help of linguistics. In the fuzzy method, linguistic variables are helpful in processing information and have been developed with a trian- gularfuzzynumber(TFN)symbolizedby"M". Ac- cording to Chang (1996), the mathematical operations of two fuzzy triangular numbers consist of 𝑀₁= (𝑙₁, 𝑚₁, 𝑢₁) and 𝑀₂= (𝑙₂, 𝑚₂, 𝑢₂) are as follows:

(l₁, m₁, u₁)  = (l₂, m₂, u₂) = (l₁l₂, m₁m₂, u₁u₂) ... (1) (,,)  (l₁, m1, u1) = ( l₁, ( m₂, ( u₃) where > 0,  R ... (2) (l₁, m₁, u₁)⁻¹ = (¹

u₁ , ¹

m₁ , ¹

l₁) ... (3)

In mathematics, the Kronecker product de- noted by  is an operation on two vectors by multiplying them to form a vector of the same size according to their position (Chan et al., 2014). The AHP method is often used in decision-making studies for various criteria. However, due to its high subjectivity in the pairwise comparison scale, Fuz- zy AHP emerged as a solution to this deficiency.

In contrast to AHP, which uses a scale of 1-9, Fuz- zy-AHP uses fuzzy numbers in its pairwise comparison. According to Güngör et al. (2009), pairwise comparison matrix operations are performed usingTriangularFuzzyNumbs(Table1).Thecore of the AHP fuzzy method lies in the pairwise comparison scale of AHP fuzzy associated with the value of the fuzzy scale (Chan et al., 2014). The AHP intensity value is then converted into a fuzzy triangular scale configured to function for the linguistic variable scale.

METHOD Data Sources

This study employed quantitative and qualitative data. Quantitative data were obtained from questionnaire results using a Likert scale, while qualitative data were obtained through in-depth interviews with stakeholders (directors/c-levels) in Indonesia's FMCG. The questionnaires in this study were collected through one-by-one in-depth interviews with 11 respondents online and offline in 12 major cities (the Greater Jakarta, Medan, Ban- dung, Solo, Semarang, Yogyakarta, Surabaya, Ba-

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1077 likpapan, Banjarmasin, Samarinda, Makassar, and

Manado) from August to November 2022.

The questionnaire results were then converted into a triangular fuzzy scale conversion table for further processing with the following steps using the help of R-Studio: 1) defining the problem and determining the solution into a hierarchical structure consisting of main objectives, criteria, and alternatives; 2) making pairwise comparisons to determine the importance of the main objectives, criteria, and alternatives using the Interest Rating Scale; 3) calculating the priority vector weights by compiling a pairwise comparison matrix and com- paring elements in pairs according to the criteria given. Then, the pairwise comparison matrix was filled in using numbers to represent the relative importance of each element; 4) matrix normalization was done by adding up the values contained in one column. After that, the priority vector weights were determined by dividing the values in the pairwise comparison table by the number of values per column; 5) Eigen Vector weighting was done by adding up the value of each row and dividing it by the number of criteria; 6) measuring consistency to find out how good the consistency was by multiplying each value in the first column with the relative priority of the first element and so on for as many elements as there were. Then, the value of each row and the results were divided by the relative priority concerned; 7) scaling using fuzzy synthetic extents was performed to assess the objective of the pairwise comparison matrix.

Structural Equation Modeling Analysis (SEM) The SEM (structural equation model) method was carried out using the evaluation model of SmartPLS, consisting of two stages: testing the measurement model (outer model) and testing the structural model (inner model). Evaluation of the model was carried out to determine the suitability of the model with the research being conducted.

Measurement model (outer model) shows the relationship of each indicator with its latent variable.

Through SEM studies related to digital transformation in sales organizations at FMCG companies in Indonesia, it was found that leadership models, organizational citizenship behavior, and sales management control significantly influenced digitaltransformationandsalesorganizationalper- formance. Furthermore, the digital transformation

carried out in the sales organization significantly affected the performance of the sales organization.

These results were then used as a reference in the discussion stage with experts to build a hierarchical structure using the Fuzzy AHP method.

Digital Transformation Strategy Model in In- donesia's FMCG

Today's digital transformation is mainly associated with technological-related problems in business and sales. Although the contribution of data to the success of digital transformation is crucial, the current discussions on the success of digi- taltransformationareunfortunatelytoofocusedon deciding technology as the main element. A com- plex technology scheme without syncing with the business will cause chaos and result in false success. Morakanyane et al. (2017) found that digital technology serves more as a "facilitator" rather than an absolute determinant of digital transformation. Furthermore, digital transformation is deem- ed as added value for organizations and customers as it involves the capabilities of technology to influence various aspects of the organization in en- hancing capacities. Based on a comprehensive literature review, a digital transformation model that focuses on improving sales and market performance will be able to capture opportunities intuitively and precisely. Data analysis using the SEM method confirmed that the leadership model, organizational citizenship behavior, and sales control management influence the success of digital transformation. These three factors significantly influence digital transformation, ultimately affecting a sales organization's performance.

Wangetal.(2020)foundapositiverelation- shipbetweendigitaltransformationandshort-term and long-term financial performance. Furthermo- re, digital transformation is influential in redesigning business models and adjusting organizational work processes through iterative, sustainable transformation. Therefore, managers must be able to determine the right tactics for solving the conflict by building a corporate culture that supports innovation, freedom of opinion, constructive feedback, and in-depth discussions. All of these efforts are expected to deepen the relationship between colleagues so that it is easier to reach a common con- sensus, especially to achieve a successful transformation process (Wang et al., 2020).

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Figure 1. Digital Transformation Strategy of the Sales Organization in FMCG Companies

Sales divisions in the FMCG business have unique characteristics compared to the rest of the organizations because they have a more intimate relationship with customers. Technically, they consist of a large number of members who are practi- cal and opportunistic. Due to these "unique" characteristics, many studies have discussed the role of leadership models in influencing the performance of sales organizations, including how members interact with leaders and vice versa.

The role of organizational members in this study is represented by organizational citizenship behavior, as it symbolizes the contribution of the sales team to the success of the digital transforma- tionprocedure.Besides,salescontrolmanagement is represented by fundamental activities such as monitoring, directing, evaluating, and rewarding delivered by the leaders towards the team they lead. Digital transformation is a long-term change process that takes time because it involves changes in business processes, behavior, and culture.

Considering that digital transformation in an organization is designed, directed, and driven

by the members, humans are the leading players who have important roles as decision-makers and implementers, such as the president director, sales director, IT director, supply chain director, sales manager, and sales supervisor.

Based on literature studies and interviews conducted with professionals within FMCG companies, it is determined that the objectives of the digital transformation within sales organizations at FMCG companies: increase effectiveness/efficiency in the company's business processes, assist sales organizations in achieving targets/sales growth; and assist the sales organization in increasing customer/business partner satisfaction with the company's services/business processes.

Furthermore, the three digital transformation goals can be achieved with several strategies: customer/business partner-oriented digitalization, availability of updated digital technology applications, enhancement in leadership and human resource capability, synergy or collaboration within the company's internal and external parties, and optimal company budget allocation.

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1079 Figure 2. AHP Fuzzy Analysis

RESULTS AND DISCUSSIONS Fuzzy AHP Analysis

Fuzzy AHP is a method developed to complement the AHP method. This method is a systematic approach combining fuzzy with AHP to solve criteria problems with extra subjectivity that cannot be solved by the AHP method (Fajri et al., 2017). Furthermore, combining fuzzy with AHP gives better results in describing ambiguous decisions (Hadiwijaya and Hakim, 2016).

According to Suciadi (2013), Fuzzy AHP can simplify complexity, accommodate, and solve the subjectivity of opinions with uncertainty values. The non-single estimated scale benefits the abi- lityofFuzzyAHPtoreducethesubjectivityfactor.

Scaling of each criterion toward the main objective within the hierarchy was done by completing the comparison matrix through the value of Fuzzy Synthetic extent with the following formula:

𝑠_𝑖 = ∑^𝑚_𝑗=1 𝑀_𝑔𝑖^𝑗 ⊗ [∑^𝑛_𝑖=1∑^𝑚_𝑗=1𝑀_𝑔𝑖^𝑗]⁻¹ ... (4)

To obtain ∑^𝑚_𝑗=1 𝑀_𝑔𝑖^𝑗, the sum operation of the fuzzy synthesis "m" value was carried out on the pairwise comparison matrix:

∑^𝑚_𝑗=1 𝑀_𝑔𝑖^𝑗 = (∑^𝑚_𝑗=1𝑙_𝑗,∑^𝑚_𝑗=1𝑚_𝑗,∑^𝑚_𝑗=1𝑢_𝑗, ... (5) Then, the fuzzy sum operation was done with 𝑀_𝑔𝑖^𝑗 (𝑗 = 1, 2, 3, … , 𝑚):

[∑^𝑛_𝑖=1∑^𝑚_𝑗=1𝑀_𝑔𝑖^𝑗] =(∑^𝑛_𝑖=1𝑙_𝑖,∑^𝑛_𝑖=1𝑚_𝑖,∑^𝑛_𝑖=1𝑢_𝑖) .. (6) To calculate the inverse of the 𝑀_𝑔𝑖^𝑗 (𝑗 = 1, 2, 3, … , 𝑚), the following formula is done:

[∑^𝑛_𝑖=1∑^𝑚_𝑗=1𝑀_𝑔𝑖^𝑗]⁻¹=(_∑ ¹_𝑢

𝑖, 𝑛𝑖=1 ,_∑ ¹_𝑚

𝑖, 𝑛𝑖=1 ,_∑ ¹_𝑙

𝑖, 𝑛𝑖=1 ) ... (7) Where 𝑀_𝑔𝑖^𝑗 is the sum of the rows in the pai-

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red matrix. If the results obtained on the fuzzy matrix show 𝑀2 ≥ 𝑀1, where 𝑀1 = (𝑙1, 𝑚1, 𝑢1) and 𝑀2 = (𝑙2, 𝑚2, 𝑢2). Then, the vector value can be seen as:

𝑉(𝑀₂≥ 𝑀₁) =

𝑠𝑢𝑝 [𝑚𝑖𝑛(𝜇 𝑀1(𝑥), 𝑚𝑖𝑛(𝜇 𝑀2(𝑦)))] ... (8) Where 𝑠𝑢𝑝 is the smallest upper limit of the minimum vector result, shown as:

(

1; 𝑖𝑓 𝑚₂≥ 𝑚₁ 0; 𝑖𝑓 𝑙₁≥ 𝑢₂

(𝑙₁−𝑢₂) (𝑚₂−𝑢₂)−(𝑚₁−𝑙₁)

) ... (9)

If 𝑓𝑢𝑧𝑧𝑦 ˃ 𝑘 with 𝑀𝑖 (𝑖 = 1, 2, , , 𝑘), then the vector value can be defined as the following equation:

𝑉(𝑀 ≥ 𝑀1, 𝑀2, … . , 𝑀𝑘) = 𝑉 (𝑀 ≥ 𝑀1) and 𝑉 (𝑀 ≥ 𝑀2)

𝑉(𝑀 ≥ 𝑀𝑘) = 𝑚𝑖𝑛 𝑉(𝑀 ≥ 𝑀𝑖) ... (10)

Defuzzification ordinate can be seen as:

𝑑’(𝐴𝑖) = 𝑚𝑖𝑛 𝑉 (𝑆𝑖 ≥ 𝑆𝑘) ... (11) With 𝑘 = 1, 2 … 𝑛; 𝑘 ≠ 𝐼, then the value of the weight vector was obtained as in the following equation:

𝑊′ =

(𝑑′(𝐴₁), 𝑑′(𝐴₂), … 𝑑′(𝐴_𝑛))^𝑇 ... (12) 𝑑(𝐴_𝑛) = (_∑^𝑑′(𝐴^𝑛⁾

𝑑′(𝐴_𝑛)

𝑛𝑖=1

... (13) Where 𝐴_𝑖= 1,2,…n is a fuzzy vector (W).

Normalization of the fuzzy vector weight (W) was carried out with the following formula:

𝑊 = (𝑑(𝐴₁), 𝑑(𝐴₂), … 𝑑(𝐴_𝑛))^𝑇 (14) Factor Analysis

Fuzzy AHP analysis shows that the primary variables that can be used in designing a digital transformation development strategy model within the FMCG sales organization are the leadership model (0.783), followed by sales control manage-

ment (0.130), and Organizational Citizenship Be- havior (0.087). Data processing using the SEM (structural equation model) method for these three variables was done before the Fuzzy AHP analysis, and it was concluded that all variables had a positive effect on the digital transformation process currently taking place in sales organizations at FMCG companies in Indonesia.

Previous studies (Christensen, 1997; Vecc- hiato, 2017) found that leadership is crucial in creating organizational capabilities in the digital era, especially with the increasing demands for organizations to move faster in creating innovations based on customer needs and market dynamics. Be- sides, Organ (1988) found that attitudes performed by leaders are immensely influential in creating a spirit of innovation within an organization: (a) attitudes that help other colleagues without any co- ercion but are more accountable (altruism); (b) the ability to alleviate work-related problems faced by other individuals (courtesy); (c) practices of positive aspects of the organization rather than negative aspects such as protesting, complaining, and exaggerating minor problems (sportsmanship); (d) the desire to work extra miles in daily life (consci- entiousness); (e) voluntary participation and support for organizational functions both profession- ally and socially (civic virtue).

Throughapersonalinterviewwitharespon- dent in August 2022, Mr. M. Khaerul Huda, it was understood that the leadership model is a factor that plays a vital role in ensuring the success of digital transformation in addition to management co- mmitment, optimal budget allocation, and access to digital technology availability. Another interviewee, Waryh Windiyoko, attested that a visionary leadership model with a significant organizational transformation capacity is urgently needed for companies to ensure digital transformation success.

Furthermore, Aditio Wibisono said that leadership that can stimulate its members to engage in digital transformation is urgently required.

These findings are supported by several studies (Podsakoff and MacKenzie, 1993; Salehza- deh et al., 2015) as they found that willingness to assist colleagues to achieve higher performance in tangiblemotivation/action(cheerleading),conduct that desires to avoid/resolve conflict interpersonal skills, and passion for acting as a mediator in the organization (peacekeeping) are manners that cre-

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1081 ate a spirit of innovation needed by organizations

in responding to the business challenges.

In terms of innovation that reflects a company's tendency to engage and support new ideas, novelty, and creative processes that can produce new products, services, and technologies (Ozsahin and Sudak, 2015), a personal interview with a respondent, Agus Nurudin, proved the importance of leadership model, sales control management, and OCB. The respondent said an excellent leadership model followed by proper control functions is needed to form positive OCB in digital transformation success.

Thus, the plans and objectives determined through suitable leadership model can drive members of the organization as a whole to move in the same direction. The present findings are supported by Lumpkin and Dess (1996) as they found that innovativeness in a series of activities allows organizations to launch new product lines, experiment with new advertising methods, and become pione- ers in developing technologies associated with digital transformation processes. Therefore, most respondents agreed that digital transformation must beinitiatedandassistedbyadecentleadershipmo- del performed by the CEO, directors, and the lead-

ers of the minor sales units in the area level/city where the FMCG companies are based.

Analysis of Factor-Actor

Analysis of the factors with Fuzzy AHP to determine the priority level of the actors' roles in the digital transformation process was carried out for each factor (leadership, organizational citizenship behavior, and sales management control), as seen in Figure 3.

The scaling results found that the sales director (0.408) is the actor with the most influential role in the leadership factor, followed by president director (0.204), sales manager (0.136), IT/digital director (0.102), supply chain director (0.082), and sales supervisor (0.068). The respondents confirmed the present finding through the interview as they stated that a sales director must initiate the digital transformation.

As an influential person in a sales organization, a sales director must constantly find new ways to improve performance, effectiveness, and business processes. They are also mandated to enhance organizational efficiency and satisfy the expecta- tions of customers and business partners, primar- ily through digital transformation.

Figure 3. Factor-Actor Analysis

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Throughapersonalinterviewwitharespon- dent in August 2022, Haruman Rustandi, it was known that directions from top management, such as sales directors, are a central point in implementing the leadership model because they are central figures in the transformation process. This opinion was then reinforced by other interviewees, Dono- va Lelo and Hary Kapota, as they said that top management, such as the sales director, should provide direction through the leadership model because the sales team is better confident by listening to only one central guide as their leader. Thus, the movement of sales organizations in digital transformation is more straightforward and immersed.

Furthermore, another respondent, Aditio Wibiso- no, stated that the sales team is always looking for a role model like the sales director that they should listen to, especially in an uncertain transformation process.

The actor who has the most crucial role based on the Organizational Citizenship Behavior (OCB) factor is the sales manager (0.405), followed by the sales supervisor (0.208), the sales director (0.145), the president director (0.104), the IT/

digital director (0.082), and supply chain director (0.056). The OCB covers voluntary help intended forthebenefitoforganizations.Contributionssho- wnbyOCBaregenerallymorethanformalactions carried out voluntarily. The reward system does not acknowledge, yet they have outstanding con- tributions to organizational effectiveness and efficiency (Organ, 1988).

Regarding how the OCB practices occur in FMCG, the respondents (Iwan Himawansah, Ed- win Vega, and Waryh Windiyoko) answered that the direction from the sales manager that was not regulated in job descriptions has an essential role in leading OCB, especially in the digital transformation. Furthermore, they argued that digital transformation often requires sales teams to work out- sidetheirpattern.Therefore,OCB,reflectedindai- ly activities, is greatly influenced by the role of the sales manager, followed by the sales supervisor, sales director, and president director.

Although sales managers do not have higher authority than sales directors, they can push the sales organization by providing standards, motiva- tion, and factual approaches according to OCB pr- inciples which are believed to impact sales orga-

nization's performance positively. The actor with the most crucial role in the third factor (sales management control) is the sales director (0.437), followed by the sales manager (0.311), sales supervisor (0.104), president director (0.092), director of the supply chain (0.032), and director of IT/digital (0.025). Sales management control is a fundamen- talactivitythatmustsustaininasalesorganization, coveringsupervision,direction,evaluation,andre- ward. These activities determine the sales organization's performance because they are effectively persuasive in most sales organizations (Anderson and Oliver, 1987).

An in-depth interview with a respondent, Haruman Rustandi, in August 2022 found that the sales director will be fully responsible for all activities within the sales organization. Therefore, the sales director in sales management control has a central figure. Furthermore, another interviewee, Iwan Himawansah, responded to the questionnaire regarding the leadership role by saying that the sales director in SMC plays a pivotal role, specifical- ly in monitoring and directing.

Related to the sales director's role in directing and monitoring, another interviewee, Waryh Windiyoko, further strengthened the sales director role by declaring that sales organizations can quickly lose direction when they are too focused on achieving sales targets. Therefore, the role of the salesdirectorinmonitoring,evaluating,andrewar-

ding needs to be carried out consistently. All sales management control activities must be carried out concurrently at all levels so that the sales organization can achieve the targets set by management, be it sales targets, sales growth targets, and company profit target levels. Furthermore, Babakus et al.

(1996)foundthatimplementingsalesmanagement control is as important as other activities, such as territory design, determining the optimal number of sales teams, and determining the structure of the sales team for the effectiveness of sales organizations.

Analysis of Actor-Goal

Fuzzy AHP in determining the priority level of purposes for a digital transformation of each actor was carried out for the president director, sales director, IT/Digital director, supply chain director, sales manager, and sales supervisor.

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1083 Figure 4. Actor-Goal Analysis

The goals of the president director as an actor in digital transformation are increasing effectiveness/efficiency in business processes (0.545), achieving customer/business partner satisfaction (0.273), and achieving sales targets/sales growth set by the company (0.181). The digital transformation process puts the president directors as the main person in charge because they are the prime players of the entire process within the company, supported by the marketing and IT departments.

Besides, the sales director and his customers/business partners act as additional actors (Wengler et al., 2021).

Through an in-depth interview with a respondent, Satya Radjasa, in August 2022, it was confirmed that the president director usually aims to want changes to existing business processes to make them more efficient and effective. Besides, another interviewee, Edwin Vega, agreed that the digital transformation process in sales organizations resembles an effort to increase the effectiveness and efficiency of business processes. There- fore, the achievement of sales targets and growth targets will follow as a domino effect of increasing the effectiveness of existing business processes.

The digital transformation is expected to ac- celerate accomplishment through key performance indicators set, covering inventory level targets atthefactoryanddistributorlevels,salesforcepro-

ductivity targets, market share gain targets, product launch targets, product distribution targets, targets of budgets used for marketing and sales, and targets for product returns. Business effectiveness and efficiency are fundamental for a sales organization. An inefficient process negatively impacts the company's sustainability, resulting in decreas- ed/stagnant sales, market share, product launch fa- ilures, and overstock. In contrast, an effective and efficient business process will ensure the company competes and continuously wins the market.

The goals to be achieved by the sales director as a digital transformation actor are increasing the effectiveness/efficiency in business processes (0.455), achieving sales targets/sales growth set by the company (0.362), and achieving customer/business partner satisfaction (0.183). An in-depth interview with a respondent, Hary Susanto, found that even though the goals of leaders may differ fromoneanother,increasingefficiencyandimpro- ving organizational performance are the most important goals that are universal, especially for sales directors and president directors.

All sales directors agreed that a sales organization's primary focus is to achieve sales targets set by the company because the fundamental reason for establishing a sales team is to achieve sales targets. Besides, another interviewee, Agus Nuru- din, also believed that the achievement of sales/

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growth is a consequence of the high effectiveness of business processes through digital transformation. Furthermore, the present finding is supported by Churchill Jr et al. (1985), saying that sales organization effectiveness is a summary evaluation of theoveralloutputoftheorganization,suchassales value and profit level.

The present study found that information technology/digital directors' goals as actors are increasing effectiveness/efficiency in business processes (0.617), achieving customer/business partner satisfaction (0.150), and achieving sales targets/sales growth set by the company (0.233) in digital transformation. Besides, the supply chain director as an actor believes that the goals to be achieved through digital transformation are increasing effectiveness/efficiency in business processes (0.658), achieving customer/business partner satisfaction (0.233), and achieving sales targets/sales growth that have been determined by the company (0.109).Arespondent,DonovamLelo,agreedwith the present findings by saying that IT/Digital directors, together with the supply chain director, ser- ved as a support function in helping the sales team tocarryoutreviewsthroughcriticalauditsoncross -functional teams regarding current business processes done by the stakeholders, especially by the sales team.

All of these activities will result in a new approach that will optimize the efficiency and effectiveness of the company. Ultimately, this effectiveness results in better service to customer expe- rienceanddirectconsumers.Changestotheorgan- izational leadership structure affect the digital transformation process, particularly when it comes to the establishment of new business models. In par- ticular, Vial (2019) found that digital transfor mation encourages organizations to establish a new position called chief digital officer, expected to oversee the sustainability of a digital transformation process through several steps: predicting changes/dynamics that occur in the market by developing analytical capabilities /competencies; seiz- ing market opportunities taking into account current trends by adding products/services using mo- bile applications/social media; and providing the company with a platform that allows customers to interact with the products/services offered by the company.

Finally,themainobjectiveofadigitaltrans-

formation by the sales manager is to achieve sales targets or sales growth set by the company (0.446), achieve the customer/business partner satisfaction (0.254), and increase effectiveness/efficiency in business processes (0.300). In addition, sales su- pervisors believe that digital transformation aims to achieve sales/sales growth targets set by the company (0.608), achieve customer/business partner satisfaction (0.212), and increase effectiveness /efficiency in business processes (0.180).

Therefore, the main goal of a digital transformation, according to sales managers and super- visors, is to help the sales team achieve sales targets, speed up the process of responding to customer needs, and maximize the process of answering problems when interacting with customers. An in- depth interview in August 2022 with a respondent, Agus Nurudin, confirmed the present findings as it was found that the nature of customers/consum- ers, which continues to change quickly from time to time, requires special attention by leaders in sales because sales targets and sales growth set by the company is determined by the level of customers' demand.

Therefore, sales managers and sales super- visors in digital transformation must be able to take the company one step ahead of competing companies by redesigning business processes and try- ing to find new ways to win the market. Although business organizations mostly experience the impact of digital transformation due to the transformation process, some studies (Churchill Jr et al., 1985; Wengler et al., 2021) have not classified this impact. Therefore, the present study complements the scientific repertoire by categorizing the impact of digital transformation with a focus on customer and organizational categories and their positive or adverseeffects.Salesmanagersinthedigitaltrans- formation process play a critical role that fluctua- tes throughout the digitalization journey.

The present study found that the manager's role changes according to the digital transformation stage. The manager's prominent role is execu- tor, modifier, and strategist. With digital transformation, managers must master implementing and building partnerships of core digitalization, exten- ded digitization, and transformative/complement- ary digitalization. The present findings are supported by Paavola et al. (2017), who stated that managers act as corporate bonds during digital transf-

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1085 ormation, communicating the transformation's sta-

tus to top managers and users while actively bring- ing in ideas from internal and external sources.

Analysis of Goal-Strategy

Fuzzy AHP analysis found strategic priority levels that FMCG companies in Indonesia should take to achieve goals in digital transformation: increasing effectiveness/efficiency in the company's business processes, achieving sales targets/sales growth set by the company, and increasing customer/business partner satisfaction with the company's services/business processes.

In achieving effectiveness/efficiency in the company's business processes, prioritized strategies that must be taken when carrying out digital transformation: development in leadership, capability, and human resource capacity (0.445); synergy and collaboration within the company's internal and external partnership (0.221); customer/business partner-oriented digitization (0.145); updated and availability of digital technology (0.101); and optimal company budget allocation (0.088). These findings were confirmed through interviews with respondents who believed that the "people" factor was a crucial factor in the digital transformation process, especially regarding leadership, capability, and capacity of the people during the transformation process. Strong leadership without good personnel capacity/capability support will only stop digital transformation in the meeting room.

On the other hand, good personnel capacity and capability without decisive leadership will on-

ly lead to digital transformation going unsystema- tically because synchronization between the stakeholders involved is not assembled. Large-scale digital transformation projects are only successful if the company's top management actively engages and explicitly supports the digital transformation.

Therefore, the roles and trust formed between leaders and organization members are important because the transformation process can improve workflow and transform conventional activities into new business models to make the company more market-oriented. Employees need to have confidence that the transformation process in the long term will not stop their involvement in the organization even if fundamental changes are made since uncertainty and distrust will make employees have negative thoughts about the digital transformation being carried out (Wengler et al., 2021).

Prioritized strategies for achieving sales targets/sales growth set by the company through the digital transformation process sequentially consist of improvement in leadership, capabilities, and human resources (0.303); synergy and collaboration within the company's internal/external (0.271);

customer/business partner-oriented digitization (0.236); updated and availability of digital technology (0.104); and optimal company budget allocation(0.086).Thesalesorganizationdefinesperfor- mance and level of success as an ability to transform minimum inputs into maximum outputs to achieve specific goals. Therefore, improvements in leadership, capabilities, and human resources become crucial.

Figure 5. Goal-Strategy Analysis

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A respondent, Satya Radjasa, supports the presentfindings,asitwasfoundduringanin-depth interview that large-scale digital transformation projects are only successful if the company's top management is actively involved and explicitly supports the digital transformation project by improving the quality of the people involved. Good quality human resources from top management to field teams will be able to improve workflow and business models.

Thus,corporationsthataremoremarket-oriented through digitalization will get the best benefits from this digital transformation. Since the relationship between minimal costs and maximum use of resources is an economic goal, efficiency can be achieved using a cost-effective strategy when producingexpectedoutputs(Chenetal.,2002).Fi- nally, to increase customer/business partner satisfaction with services, the strategies that must be prioritized in the digital transformation process are customer/business partner-oriented digitalization (0.285); leadership, capability, and human resource capacity (0.261); synergy and collaboration within the company's internal/external (0.248); updated and availability of digital technology applications (0.104); and optimal company budget allocation (0.102).

Digital transformation usually occurs in three main areas of a company: customer experience/interaction, operations/business processes, and the company's business model. Therefore, these three main areas must become the focus of company leaders when implementing digital transforma-

tion since they are responsible for ensuring that the organization's members are included in the transformation process. A respondent, Hary Susanto, throughanin-depthinterview,agreedwiththepre- sent findings by saying that one of the crucial aspects in increasing service satisfaction in digital transformation in sales organizations is a strong company orientation towards digitalization.

Improved experience and interaction with customers can represent internal companies such asoperations, businessprocesses, andbusinessmo-

dels. Therefore, an optimally implemented company's collaboration with business partners and end customers will benefit the stakeholders. Fur- thermore, according to another interviewee, Agus Nurudin, in ensuring the company could be digi- tally oriented, the quality from the highest leadership to the field team in the sales organization must be evaluated. Improving the quality of human resources will result in a perfect collaboration that can bring the company to a higher level of success in business competition. For that reason, employees/members of the organization must not be left out when the digital transformation is functioning (Morakanyane et al., 2017).

Based on Fuzzy AHP analysis of several hierarchical interactions: factors, actors-purposes, andobjectivesandstrategies,thestrategydevelop- ment of a sales organization's digital transformation at FMCG companies in Indonesia is shown in Figure 6. The strategy for the sales organization within a company to succeed in digital transformation depends heavily on leadership model factor.

Figure 6. Strategy Development of a Sales Organization's Digital Transformation

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1087 Leadership plays a role in overseeing digital

transformation, especially for the sales director, who is a central figure. Leadership by the sales director must ensure that the organization can increase the effectiveness/efficiency of ongoing business processes and guarantee that these goals can be achieved. Therefore, the primary strategy that the sales director must take is improving the leadership, capabilities, and capacity of human resources within the company to support evolutionary changes.

IMPLICATIONS

This research is expected to be helpful in how to control and manage changes due to dyna- micdigitaltransformation,specificallyforimprov- ing organizational performance in FMCG companies. Besides, it is hoped that the present findings can serve as a reference for FMCG professionals in looking at the implications and strategies.

RECOMMENDATIONS

The variables employed in the present study can be expanded other than the leadership model, organizational citizenship behavior, and sales management control. Besides, some other divisions recommendedforfuturedigitaltransformationstu- dies are marketing management, manufacturing/

production, supply chain, financial/finance/accounting administration, and human resources management. The FMCG companies' digital transformation studied in the present study was limited to digital transformation in sales organizations.

CONCLUSIONS

The strategy in this study identifies the leadership model as a critical success for digital transformation. Since the model formed in this study wasestablishedbasedontwomainfactorswiththe highest level of importance and uncertainty (customer/consumerexpectationsandthegrowthmind- set of organizational members), the FMCG Digital Transformation Compass drawn is expected to provide a reference regarding the implications and strategies that companies must take for each situa- tion and scenario in the future. The realistic scenario is the most likely to occur (iterative improvement), where FMCG companies, especially sales organizations, haveaniterativeexperimentalpassi-

on by carrying out small to extensive experiments.

Sales organizations are expected to consistently and continuously conduct experiments to find new ways of working and produce digital initiatives thatcompaniesneedtoanswercustomer/consumer demands. Consistently, these activities are ultimately expected to impact the performance of FMCG sales organizations positively.

The digital transformation strategy for sales organizations in FMCG companies in Indonesia consists of several elements: factors, actors, goals, and strategy. The factor that should be prioritized is implementing a leadership model with the sales director as the leading actor. Increasing effectiveness and efficiency as goals must be prioritized by maximizing strategies through improving leadership, capacity, and human resource capability to achieve the success of a digital transformation.

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