How to Transform Covid-19 Crisis into A Business Opportunity Using Business Model Innovation: Case of Hiking Industry in
Indonesia
Azhan Anggarajati Rabbani1*, Yulianto Suharto1
1 School of Business and Management, Institut Teknologi Bandung, Indonesia
*Corresponding Author: [email protected] Accepted: 15 September 2022 | Published: 1 October 2022
DOI:https://doi.org/10.55057/ijaref.2022.4.3.16
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Abstract: Surat Izin Masuk Kawasan Konservasi is essential for all hikers who intend to explore Indonesia's protected areas. The issue arises when the hiking permit must be issued at the basecamp of a heavily inhabited mountain, preventing hikers and mountain management from implementing the health regimen. Several mountains must be closed owing to infractions.
This investigation will be qualitative in nature. Observations and direct conversations with both hikers and mountain management supplied the necessary data for the development of a plan for Hikery to convert the Covid-19 issue into a commercial opportunity via business model innovation on Surat Izin Masuk Kawasan Konservasi. Using business model canvas and the SWOT framework, the data will be examined. The hiking permit system has an antiquated commercial model that does not iterate throughout the pandemic. When there are problems with the process for data registration, there is the greatest reason for concern. The procedure is time-consuming, therefore there may be a substantial wait. Managers of hiking permits are also secluded. This situation induces stuttering and jostling among hikers. The suggested parameters aim to simplify and expedite the operation. Hiking facilitates the production of an online, digital hiking permit that may include all required actions and procedures. Hikers are only needed to register their information once online, choose the peak they want to climb along with relevant details, and pay the administrative fee.
Keywords: business model canvas, swot, hiking permit
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1. Introduction
A global industry for hiking has arisen. In recent years, the public's desire for outdoor sports and recreation has skyrocketed due to greater social rivalry, rising urbanization, and the notion of a national health policy (Gómez-Martín, 2019). In many locations, hiking has become a trendy and individualized pastime, as well as a strategic growth choice. As a result of the global pandemic, the massive hiking market faced a severe fall. In 2020, the year Covid-19 joined Indonesia, the tourist sector generated just $3.3 billion to foreign currency earnings. Hiking industry, which represents 35% of the overall tourist business in Indonesia, experiences the same problem (Badan Pusat Statistik, 2018).
Government laws that tighten tourist controls in Indonesia to limit the spread of Covid-19 drove the fall (Utami & Kafabih, 2021). Since 2020, the Ministry of Health of the Republic of Indonesia has released the 5M health protocol, which incorporates directives to wash hands,
wear masks, keep a safe distance, avoid crowds, and restrict movement. With the passage of the Enforcement of Community Activity Restrictions in 2021, the restriction was temporarily strengthened.
Due to its distinct niche market, hiking has attracted the attention of several academics.
Researchers have examined the hiking tourist community, the satisfaction of hiking activities (Breejen, 2007), and the development history, market research, social cognition, and hiking motivation (Xiao, 2008), but no studies have been conducted on the digitization and integration of hiking systems. Even though several studies have acknowledged hiking's economic benefits and seen it as pure environmental conservation and ecological tourism, there is a lack of attention for hiking permits that still use the old system. When the tourist business is expected to be one of the greatest providers to the country's foreign currency but the technical circumstances in the present area are not yet favorable, this study becomes intriguing. Due to this issue, a significant amount of potential income and tourist business growth is wasted. Even if the epidemic period is still in effect, it is believed that this study will lead to a solution that will assist the tourist sector, particularly niche tourism, recover.
2. Literature Review
The literature review consists of Surat Izin Masuk Kawasan Konservasi (SIMAKSI), business model canvas, SWOT analysis, and conceptual framework. The Covid-19 situation has been explained on the introduction and the conceptual framework explained the connection between the business model canvas and SWOT framework.
2.1. SIMAKSI
SIMAKSI is a hiking permit required before entering an Indonesian protected area for both Indonesian and foreign travellers. This permission was obtained in accordance with the Director General of Forest Protection and Nature Conservation Regulation Number SK.192/IV-Set/HO/2006 dated November 13, 2006, regulating Entry Permits to Nature Reserve Areas, Nature Conservation Areas, and Hunting Parks. Certain mountains have their own hiking restrictions. This implies that every hiker must make a reservation or apply for a climbing permit in advance. Then, SIMAKSI can be made after applying for a hiking permit and must be completed before the ascent. This letter can be handled immediately at the mountain administration office, which is normally located near the trail's entrance (Balai Konservasi Sumber Daya Alam Bali, 2017).
2.2. Business Model Canvas
According to Alexander Osterwalder, “the business model canvas is a shared language for describing, visualizing, assessing, and changing business models” (Osterwalder & Pigneur, 2013). The easiest way to define a business model is via nine fundamental components that illustrate the reasoning behind how a firm aims to generate revenue. Customers, offer, infrastructure, and financial sustainability are the four primary business sectors covered by the nine blocks. The business model is analogous to a blueprint for a plan that will be executed through organizational structures, procedures, and systems (Osterwalder & Pigneur, 2013).
2.2.1. Customer Segments
Customers are the core of every viable company plan. Without consumers, no business can thrive for very long. To better serve its consumers, a business may divide them into various segments with similar demands, habits, or other characteristics. A business model may identify one or more sizable or insignificant customer segments. An organization must make a
deliberate choice on which segments to serve and which to disregard. Once this choice has been taken, a business model may be meticulously built based on a deep comprehension of specific consumer requirements (Osterwalder & Pigneur, 2013).
2.2.2. Value Propositions
The value propositions describe the bundle of products and services that create value for a specific customer segment. The value propositions outline the assortment of items and services that offer value for a certain customer segment. The value proposition is the reason why consumers choose a certain business over another. It addresses a client issue or fulfils a consumer need. Each value proposition consists of a selection of goods and/or services that are tailored to the needs of a particular customer segment. In this view, the value proposition is a collection or bundle of client advantages offered by a corporation (Osterwalder & Pigneur, 2013).
2.2.3. Channels
The channels outline how a business connects with and reaches its customer segments to offer its value proposition. Communication, marketing, and distribution channels are the interaction between a firm and its clients. Channels are crucial consumer touchpoints that contribute to the customer experience. Channels serve multiple purposes, including raising customer awareness of a company's products and services, assisting customers in evaluating a company's value proposition, allowing customers to purchase specific products and services, providing customers with a value proposition, and providing post-purchase customer support (Osterwalder & Pigneur, 2013).
2.2.4. Customer Relationships
The customer relationship highlights the sorts of relationships a firm builds with specific customer segments. A corporation should specify the sort of connection it wishes to develop with each customer segment. Relationships may vary from personal to automated. Customer interactions may be motivated by customer acquisition, customer retention, and boosting sales (upselling) (Osterwalder & Pigneur, 2013).
2.2.5. Revenue Streams
The revenue streams indicate the cash a corporation makes from each customer segment. If consumers are the heart of a company model, then revenue streams are its blood vessels. A business must determine what value each customer segment is willing to pay for. Answering this question effectively enables the company to develop one or more revenue streams from each customer segment. Each revenue stream may use distinct pricing techniques, such as set list prices, negotiation, auctioning, market-based, volume-based, or yield management (Osterwalder & Pigneur, 2013).
2.2.6. Key Resources
The key resources outline the most essential assets necessary for a company strategy to be successful. Each business strategy necessitates key resources. These assets enable a business to develop and provide a value proposition, access markets, establish connections with customer segments, and generate income. Various key resources are required based on the company strategy. A microchip manufacturer needs manufacturing facilities that are capital- intensive, but a microchip designer is primarily concerned with human resources. Key resources may be material, monetary, intellectual, or human in nature. The corporation may own, lease, or purchase significant resources from key partners (Osterwalder & Pigneur, 2013).
2.2.7. Key Activities
The key activities refer to the essential steps a firm must take for its business model to be successful. Every company strategy necessitates a selection of key activities. These are the most crucial steps for a company's effective operation. As with key resources, they are necessary for developing and delivering a value proposition, reaching markets, maintaining customer relationships, and generating income. Like key resources, key activities vary based on the kind of company strategy (Osterwalder & Pigneur, 2013).
2.2.8. Key Partnerships
Companies form partnerships for a variety of reasons, and partnerships are becoming a pillar of several business strategies. To improve their business models, decrease risk, or gain resources, businesses form partnerships. Several forms of partnerships may be distinguished, including strategic alliances between non-competitors, coopetition (strategic partnerships between competitors), joint ventures to build new enterprises, and buyer-supplier agreements to ensure dependable supplies (Osterwalder & Pigneur, 2013).
2.2.9. Cost Structure
The cost structure enumerates the operating expenses of a company model. This building component outlines the most significant expenses incurred by a certain company strategy.
Developing and providing value, preserving customer relationships, and earning money all involve expenses. After defining key resources, key activities, and key partnerships, it is quite simple to compute such expenses. Nevertheless, some company models are more cost-driven than others (Osterwalder & Pigneur, 2013).
2.3. SWOT Analysis
SWOT analysis (strengths, weaknesses, opportunities, and threats) is a framework used to analyze a company's competitive position and to generate strategic planning. The SWOT analysis evaluates internal and external elements, as well as present and anticipated future outcomes (Sammut-Bonnici & Galea, 2015). The objective of a SWOT analysis is to promote a realistic, fact-based, and data-driven examination of the strengths and weaknesses of a business, its projects, or its industry.
2.3.1. Strength
Strength is an attribute with positive connotations. It adds value and provides organizations with a competitive edge. The company's strengths include physical assets such as accessible money, equipment, credit, established and devoted consumers, current distribution channels, copyrighted goods, patents, information and processing systems, and other important assets. It also explains what a company excels at and what sets it apart from the competition such as a strong brand, a dedicated client base, a robust financial sheet, etc (Sammut-Bonnici & Galea, 2015).
2.3.2. Weakness
Weaknesses are areas or traits in which a company is at a competitive disadvantage compared to its rivals. Similarly, to strengths, they might be qualitative or quantitative. Examples include inexperienced management, significant personnel turnover, low (or sliding) margins, and excessive (or high) usage of debt as a source of finance (Sammut-Bonnici & Galea, 2015).
2.3.3. Opportunity
The opportunity section should emphasize external elements that create development or improvement opportunities for a corporation. Consider prospects such as a rising total
addressable market, technical improvements that might increase efficiency, and shifting societal norms that are establishing new markets or new subsegments within current markets (Sammut-Bonnici & Galea, 2015).
2.3.4. Threat
Threats are external influences that pose a danger to the operations of a firm. The categories are identical to the opportunities section, but in the other direction. Consider instances such as a declining sector (which is equivalent to a declining total addressable market), technology innovation that might disrupt the present firm and its operations and changing societal standards that make existing product offerings less appealing to an increasing number of customers (Sammut-Bonnici & Galea, 2015).
2.4. Conceptual Framework
Figure 1: Conceptual Framework
To define the present SIMAKSI business model, the nine parts of the business model canvas were used, namely customer segments, value proposition, channels, customer relationship, revenue streams, key resources, key activities, key partners, and cost structure. Therefore, the next step is to conduct a SWOT analysis on the nine parts of the business model canvas. The result of the analysis then will become a new business model canvas for Hikery to develop SIMAKSI.
When the researcher sought to identify the business model used using the business model canvas framework and build business development plan alternatives based on the study of SWOT for the XYZ firm, they drew the theoretical framework from prior research. Since the purpose and the study being undertaken are comparable, the theoretical framework becomes applicable (Erlyana & Hartono, 2017).
3. Methodology
This study used a semi-structured interview style, with the researcher preparing a list of topics and questions to be addressed, but these may change from interview to interview (Saunders et al., 2000). Interviews were done by directly questioning informants to investigate and gather data-related information. The interview utilizes interview rules so that researchers may formulate research questions based on the information requirements.
The interview procedure starts with research informants consenting to a convenient time for interviews. Interviews are performed by asking a selection of questions from the interview
guide. Several more questions were added to the interview guide to expand the scope of the study. The researcher records information from interviews with informants using a voice recording application on a smartphone. In addition, the researcher takes note of significant information revealed by the interviewee. Depending on the clarity of the information supplied and the data required by the researcher, the number of interviews conducted for each study topic varies from one to many.
Table 1: Questionnaire Design
No Question Guide Target Purpose
1 Tell me about yourself
Customer segment To know the end-user-profile of the person.
The question consists of age, income, education, level at company/organization, history, context, and personality
2 Explain what you know about SIMAKSI
Value proposition, key partners, key activities, key resources, cost structure, revenue streams
To get general information on what is SIMAKSI, all the types, and the process that occur
3 What do you do at basecamp?
Value proposition, key partners, key activities, key resources, cost structure, revenue streams, customer relationships
To get information on what do people can do at basecamp
4 What thing that you find important?
Value proposition, customer segment
To know the priority of the potential customer, either they have concern on the cost or the process
5 How do you get information about a mountain?
Channels To know how the potential customer should be reached
6 How the Covid-19 pandemic affect the SIMAKSI activity
Value proposition Is the pandemic affecting the number of hikers, process, and regulation of a mountain
This study's population will consist of hikers who own the SIMAKSI, and the sampling method will be purposive sampling. According to prior research, purposive sampling is a non- probability sampling method in which sample items are selected at the discretion of the researcher (Black, 1994). The argument for using purposive sampling is that not all samples satisfy the conditions for the investigated phenomenon. Therefore, the researchers choose the technique of purposive sampling, which stipulates specific considerations or criteria that must be met by the samples used in this study.
There are two sorts of respondents: hikers and mountain managers. This circumstance emerges because the market for hiking has two sides. The hikers will consist of those who issue the official SIMAKSI, those who use brokers to issue SIMAKSI, and those who were clients of Hikery Adventures. The mountain managers include managers from SIMAKSI, professional hikers, and activists. One person of each of the profile will be interviewed, so the total of respondents will be six persons.
4. Data Analysis
The analysis method that this research uses is the coding method. In qualitative research coding is “how you define what the data you are analyzing are about” (Gibbs, 2012). Coding is the process of locating a passage in a text or other data items, looking for and recognizing concepts, and determining their relationships. As a result, coding entails more than just labelling; it also entails connecting data to ideas and back to other data. After the coding process was done, the data will be gone through thematic analysis. “Thematic analysis is a method for analyzing qualitative data that entails searching across a data set to identify, analyze, and report repeated patterns” (Braun & Clarke, 2006). The versatility of thematic analysis to be utilized within a broad variety of theoretical and epistemological frameworks and to be applied to a wide variety of research objectives, designs, and sample sizes is one of its distinctive characteristics.
4.1.Research Finings
The data collected will be generated into conventional business model canvas and then coded into two dimensions.
4.1.1. Customer Segments
The portion includes every backdrop. Including novice hikers, specialists, open travel businesses, and pilgrims. The circumstance arises due to the rule requiring all hikers to possess a hiking permit. There will be no variation regarding the sort of SIMAKSI that should be given.
The only difference between local and foreign hikers is the price. Local hikers pay less than their foreign counterparts.
4.1.2. Customer Relationships
Customers and supervisors have transactional interactions with one another. They exist for a specific reason. The hikers just want to trek in comfort, while the management seeks to generate revenue. Typically, hikers speak with basecamp managers or personnel to learn about the mountain's condition.
4.1.3. Channels
Mountain managers do not heavily depend on the internet to disseminate information. They use the influence of word-of-mouth from hikers. Most hikers inquire about the status of the mountain, and some managers update the information on the internet. The breadth of media used by hikers includes blogs, websites, WhatsApp, and Instagram.
4.1.4. Value Proposition
The insurance administration document that SIMAKSI collects is its primary asset. If the SIMAKSI is issued correctly, hikers will get free search and rescue services from basecamp personnel if anything goes wrong while trekking. The permission may also serve as a pass for hikers to relax, eat, clean up, and charge their electronic devices, among other things.
4.1.5. Key Activities
At the basecamp, the activity caused by issuing SIMAKSI may be seen. Hikers must park their vehicles, relax, clean up, eat, and drink, shop, use public transit, repack their goods, register and pay for a hiking permit, and then repack their possessions.
4.1.6. Key Resources
For all the operations that must be completed in basecamp, certain materials are required. The paper form for SIMAKSI, a place for hikers to rest, a restroom for personal hygiene, a shop
where they can buy some supplies, a pickup truck or motorbike for public transportation, and a parking area for their cars.
4.1.7. Key Partners
Contact with Balai Konservasi Sumber Daya Alam, mountain managers, business owners, and public transit drivers must be the basecamp's most important partner.
4.1.8. Cost Structure
Form, human resources, shop, gas, car, internet, smartphone, website, and blog must be covered by the necessary capitals for a comprehensive SIMAKSI system to be created. Capital expenditures may vary based on the intricacy of the system used at the basecamp.
4.1.9. Revenue Streams
For the system to function, income must be diverse and derived from as many sources as feasible. When management realized this, they began to monetise a variety of assets. The primary source of income for SIMAKSI is the fees hikers must pay for parking, toilets, hotels, stores, and public transit.
4.2.Research Findings
After conducting interview with six persons from different profiles. There are some points that can be gathered into some groups of dimensions. The dimensions then will be elaborated with thematic analysis from the interview data taken.
4.2.1. Hikers’ Perspective
Table 2: Hiker’s Perspective Dimension Dimension
End-User Profile SIMAKSI Experience
SIMAKSI Problems SIMAKSI Brokers
Key Activities Preferences
Channels Implications
End-User Profile
According to the author's interviews and observations, there are several commonalities in the background. Respondents' ages ranged from 21 to 22 years old, and they were during their undergraduate studies at Sekolah Bisnis dan Manajemen Institut Teknologi Bandung. They also belonged to a middle-to-high economic level, as seen by the accessories they wore during interviews. Additionally, they continue to run firms with few management posts. We also learn that they were an early majority on the concept of technology adoption. Since they are students, they must have smartphones. Their history of hiking varies from thrice to five times every year.
SIMAKSI Experience
SIMAKSI is a hiking permit that is required for every hiker. Two kinds of SIMAKSI exist: the official SIMAKSI and the broker SIMAKSI. Additionally, there are two kinds of SIMAKSI systems. The first is offline SIMAKSI, which requires hikers to fill out paperwork, register, undergo a logistical check, provide a health certificate, and pay the charge on-site. The online SIMAKSI collects data through a website or Google Form. The technology also supports money transfer for fee payment. At the basecamp, both offline and online SIMAKSI require hikers to provide their identification card. The per-person charge varies from Rp20,000 to Rp70,000.
SIMAKSI Problems
Using the obtained data as a starting point, current SIMAKSI may be used to map several difficulties. The largest concern is when there are problems with the data registration procedure. The procedure also needs a great deal of time and effort, so there may be a lengthy line. Likewise, those that manage the SIMAKSI method are often alone. This syndrome causes hikers to jostle and stutter. The second issue is a rising fear about data abuse since the management solely utilizes Google Form to gather sensitive data. A second worry was the presence of technical challenges during data registration.
SIMAKSI Brokers
When discussing brokers, we are discussing perks. There will no longer be a lengthy procedure, which is one of the advantages our responders provide us. Every procedure requiring a certificate, documentation, or sensitive data will be eliminated. People see brokers as the finest time investment if they do not want to lose time and effort. The second reason is that the method is basic and straightforward. The hikers just need to call the person in charge of the SIMAKSI broker, provide the team number, pay the cost, and collect stamps as proof that they used the broker to get access.
Key Activities
When hikers reach basecamp and register for the SIMAKSI, some activities cannot be substituted. The activities include parking the vehicle, resting, eating, and drinking, having a shower, and cleaning up, shopping, charging electronic devices, transportation, sleeping, repacking the carrier, and distributing the SIMAKSI. The activities may vary based on the individual's needs.
Preferences
All respondents want a quick and simple method for issuing the hiking permit. When one person chooses the worth of money and another prefers the value of time, a distinction exists.
They also said that they wished to trek immediately, despite the fact that the permit was issued with a time limit.
Channels
There are two distinct sorts of hiking trails. Initially, the Internet. The most common sources of information for hikers are government websites, local news, YouTube channels of influencers, Instagram community profiles, and hikers' blogs. Second, they depend on the recommendations of other hikers and acquaintances.
Implications
Several problems arose when the system became irrelevant during the epidemic. Most mountains continue to employ the traditional method in which hikers must issue the permission
on-site and fulfil certain restrictions. The procedure took too long due to the insufficient number of process managers. The inference is that there will be a big line at the basecamp with no room to maintain a safe distance, no one wearing a mask, and no implementation of government-mandated health protocols. Due to the pandemic crisis, several mountains have been blocked many times.
4.2.2. SIMAKSI Managers’ Perspective
Table 3: SIMAKSI Managers Dimension Dimension
End-User Profile SIMAKSI Process SIMAKSI Problems
Key Activities Channels Expectations
Covid-19
End-User Profile
In this part, we shall analyze the viewpoints of SIMAKSI management, including a basecamp owner, an environmental and search and rescue activist, and professional porters. The greatest resemblance between them is that they both began their careers as hikers. Their passion for mountain and hiking activities increased, and they decided to pursue them professionally.
Additionally, they hail from adjacent mountainous tiny settlements.
SIMAKSI Process
Numerous mountains still rely on antiquated, flawed systems. Permits must be obtained at the basecamp, which is 40 minutes from the parking area. Hikers must also fill out the prescribed form with personal identifying information and present the original national identity card to the manager. The original card may be returned to the hiker upon their return. The form also includes the gear that the hiker carries. Hikers may pay the administrative charge to the management on-site after completing the form. The SIMAKSI provides coverage for search and rescue teams in the event of an emergency, as well as an environmental campaign to eliminate litter on the mountain.
SIMAKSI Problems
Utilizing traditional systems results in several issues. The ineffectiveness of the system has significant repercussions for hikers, particularly in pandemic situations when crowds are a no- go. There are also environmental concerns when the paper used for hiker identification is eventually discarded. In addition, violators cannot be watched, therefore the management cannot administer the proper penalty.
Key Activities
After hikers arrive at basecamp and register the SIMAKSI, some activities cannot be replaced.
The activities include parking the vehicle, relaxing, eating and drinking, taking a shower and
cleaning up, shopping, charging electronic devices, traveling, sleeping, repacking the carrier, and issuing the SIMAKSI. The activities may vary according to the needs of the person.
Channels
Two types of canals provide information to hikers. Initially, there was the Internet. The most common sources of information for hikers are government websites, local news, influencer YouTube channels, Instagram community profiles, and hiker blogs. They also depend on the advice of other trekkers and acquaintances. Mountain management and locals create Instagram pages to promote their porter, parking lot, and lodge services.
Expectations
As a result of gathering information from the interviewee, we may infer that information should be widely and readily disseminated. Additionally, the system must be more user- and environmentally friendly. They also need a defined charge so that hikers cannot engage in as much haggling. The trail history of hikers is also required.
Covid-19
Several difficulties developed because of the ineffectiveness of the system during the outbreak.
Most mountains continue to use the conventional system, in which hikers must give permission on-site based on a variety of conditions. Due to the limits of the process's administrators, the procedure took much too long. The implication is that there will be a lengthy queue at the basecamp, with no room to maintain a separation, no masks, and no application of the government's health policy. Multiple mountain closures are necessitated by the scenario to combat the epidemic. Independence Day celebrations in the highlands are one of the most significant closures. A mountain is climbed by tens of thousands of hikers in a single day, producing significant news for the internet to absorb. In the absence of a health protocol, many mountains should be closed.
4.3. Discussions
After gathering and summarizing data from six interviews, the researcher analyzes the information using the SWOT framework to identify pain areas for each component of the business model canvas. Every result derived from the study will then be articulated and incorporated into a new business model canvas for Hikery to use in the creation of the SIMAKSI.
4.3.1. SWOT Analysis on The Current SIMAKSI Business Model Canvas
Table 4: SWOT Analysis on The Current SIMAKSI Business Model Canvas
Strength Weakness Opportunity Threats
Customer Segments
Easy to reach, no discrimination
No differentiation on each segment
Reach wider market
There can be hikers who do not pay
Value Propositions
Cover SAR and environment movement
Long process, time consuming, no database
Long life cycle use case
Pandemic and government policies Channels Less effort, less
resource
Not reaching a wide market
High attention, high engagement
False news
Customer Relationships
Mutualism, One and only
Transactional United by same interest
Less help when needed
Revenue Streams From people for people
Not integrated Huge space for improvement
Imbalance in quality Key Resources Utilize available
resources
Indeterminate income Huge space for improvement
Low standards
Key Activities Little disruption Not integrated, the process took too long
Provides wide options for hikers
Hikers may shift to cheaper competitor Key Partners Utilize available
resources
Little contribution High power, high interest
High barrier-to- entry
Cost Structure High flexibility Not organized, individual
No need investor Room for brokers
Based on the SWOT analysis done on the traditional Surat Izin Masuk Kawasan Konservasi business model canvas, there are many aspects that must be emphasized. The rationale comes from the dimension that have been mentioned earlier on table 2 and table 3. The customer segments come from end-user profile. The value proposition from “Surat Izin Masuk Kawasan Konservasi Problems”, “Surat Izin Masuk Kawasan Konservasi Brokers”, “Surat Izin Masuk Kawasan Konservasi Experience”, “Expectations”, “Covid-19”, “Preferences”, and
“Implications”. The channels come from “Channels”. The customer relationships come from
“Surat Izin Masuk Kawasan Konservasi Problems”, “Surat Izin Masuk Kawasan Konservasi Experience”, “Surat Izin Masuk Kawasan Konservasi Brokers”, and “Key Activities”. The revenue stream come from “Key Activities” and “Preferences”. The key resources come from
“Surat Izin Masuk Kawasan Konservasi Process” and “Key Activities”. The key activities come from “Surat Izin Masuk Kawasan Konservasi Process, “Key Activities”, “Surat Izin Masuk Kawasan Konservasi Experience”, “Key Activities”, and “Preferences”. The key partners come from “Surat Izin Masuk Kawasan Konservasi Process”, “Key Activities”, “Surat Izin Masuk Kawasan Konservasi Experience”, “Key Activities”. The cost structure come from
“Key Activities”.
4.3.2. Proposed New Business Model Canvas for Hikery
Figure 2: Proposed New Business Model Canvas for Hikery
From the SWOT analysis conducted, the Researcher generates new business model canvas for Hikery. Every single segment of the business model canvas needs to be updated so that the proposed business model will be a new whole thing
Customer Segments
As we assess the obtained data, day-hikers provide the best starting point. The consideration is that day-hikers who trek two to five times per year have an abundance of buddies who do not care about money. They are often undergraduate students who place a premium on time more than any other demographic. Those between the ages of 19 and 24 are required to use smartphones in their everyday lives. While adopting new technologies, they are often known as the early majority. By selecting this market sector, it is hoped that Hikery would be able to quickly enter the market utilizing a specific go-to-market approach that will be detailed in further detail in the future.
Customer Relationships
Feedback is essential to continued success since it enables businesses to learn directly from their customers what is and is not working. They want the ability to provide feedback on your website, through social media, and over the phone, and to monitor the implementation of their suggestions. Encourage open feedback on the website, through email or social media as a starting step. After collecting employee input, schedule meetings to determine how Hikery can improve. When ideas are adopted, a team that talks openly about methods to improve goods will avoid future problems. Customers also appreciate reliability. They will not accept impoliteness, neglect, or broken promises. Regularly engage and interact with your consumers;
they expect it.
Channels
Hikery will use hikers to generate positive word-of-mouth, which occurs when a consumer's enthusiasm in a company's product or service is mirrored in their daily interactions. In essence, word-of-mouth marketing is the free advertising provided by pleasant client experiences that often surpass expectations. In this situation, hikers need accurate and up-to-date information.
Hikery can supply the information in real-time, so hikers no longer must depend on assumptions or random inquiries. Hiking influencers have a significant effect on the dissemination of hiking knowledge. Before embarking on a journey, hikers often study YouTube footage of the peak they want to climb. Influencers also update information on their Instagram profiles, making them one of the primary sources of information for Hikers. Ministry of Tourism and Creative Economy of the Republic of Indonesia and Balai Konservasi Sumber Daya Alam, on the other hand, encourage hikers with a government background. They may readily assist Hikery by establishing new rules and by aiding the company's technology-push strategy.
Value Proposition
The value proposition part must be greatly strengthened. The major objective is to streamline and quicken the SIMAKSI process. Hiking supports the development of an online, digital SIMAKSI that can encompass all the required activities and operations. This is done so that hikers may plan and pay for any administrative expenses well in advance of their journey. The new system also allows hikers to remember their identities so that they do not have to re-enter the same information every time they want to go trekking. People will be reimbursed for their prior journeys, the trash they bring with them, and every good act they do, courtesy of the system's extensive database.
Key Activities
To acquire the desired amount of value, we made just modest alterations to the most vital activities. Hikers only need to register their information once on the website, choose the mountain they want to climb along with any other information, and pay the administrative fee.
Parking the vehicle, relaxing, eating and drinking, taking a shower and cleaning up, shopping, charging electronic devices, traveling, sleeping, repacking the carrier, and issuing the SIMAKSI continue the same afterwards. The activities may vary according to the needs of the person.
Key Resources
Additional resources required by Hikery include a platform, a reliable Internet connection, and barcode-scanning equipment. We also need professional staff on-site to complete the operation.
In addition, hikers must arrange space to rest, a restroom, a shop, and a car before embarking on a trek.
Key Partners
Ministry of Tourism and Creative Economy of the Republic of Indonesia, Balai Konservasi Sumber Daya Alam, mountain managers, business owners, and transportation drivers are the important partners here. Governments may assist Hikery with administrative and regulatory matters on how the SIMAKSI procedure should have been carried out. They may also serve as the primary route for introducing our technology to prospective clients, since their influence over laws is substantial, while mountain managers, transportation drivers, and shop owners serve as operational employees on-site.
Cost Structure
To achieve each of our values and strategies, we must invest capital. The platform itself demands a considerable lot of attention, since it is the company's lifeblood. Talented and capable workers may boost the company's expansion. Grocery stores and convenience stores meet the logistical needs of hikers. For transporting hikers, vehicles and gasoline are needed.
Revenue Streams
To produce substantial money, managers must successfully monetize critical tasks. SIMAKSI administration may charge Rp20,000 to Rp70,000, the parking lot varies from Rp10,000 for motorcycles to Rp20,000 for vehicles, the bathroom varies from Rp2,000 for a toilet to Rp5,000 for a bath, and overnight stays are free. Consider as part of SIMAKSI, if the regulation states that it was separated from the administrative charge above, the cost will be Rp20,000, shops and groceries also fit depending on how much people purchase, and final transportation varies between Rp20,000 and Rp100,000.
5. Conclusion
This study demonstrates how to convert the Covid-19 issue into a commercial opportunity using SIMAKSI business model innovation. The researcher observes the existing use of SIMAKSI on mountains, conducts interviews with each required key stakeholder, and provides an analysis utilizing the business model canvas and SWOT analysis framework. The SIMAKSI system employs an obsolete business model that does not iterate throughout the epidemic.
When there are difficulties with the data registration method, there is the most cause for worry.
Additionally, the treatment requires considerable time and effort, so there may be a significant wait. Those that manage the SIMAKSI approach are often isolated. This condition leads hikers to stammer and jostle. The second concern is a growing worry of data exploitation since the
management uses only Google Form to collect important information. The existence of technological obstacles during data registration was a second concern.
The consequence of the obsolete system is that the procedure took too long since there were not enough process supervisors. The implication is that there will be a lengthy queue at the basecamp with insufficient space to maintain a safe distance, no one wearing a mask, and no application of government-mandated health standards. Several mountains have been repeatedly obstructed because of the pandemic problem. By linking the system with all the parties, Hikery offers a solution to make hiking permit processing simple and quick. To avoid data exploitation and environmental issues, Hikery will employ a secure online database to increase the degree of security, as opposed to paper that will be destroyed at the end.
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