Analysis of Obstacles in Implementing The Finished Banknotes Business Model (A Case Study on Banknotes Printing in Indonesia)
Keywords: Banknotes printing, Business model, Finished banknotes, Perum peruri, Obstacles bound testing analysis
Abstract
Purpose - Bank Indonesia as a central bank uses Perum Peruri as a banknote printing service provider. In general, Bank Indonesia is a consumer and a banknote paper provider that intends to change the business model from printing services to finished banknotes or end-to-end processes. Therefore, this study aimed to analyze the obstacles faced while implementing the finished banknotes business model by Perum Peruri.
Methodology - A total of 9 obstacles were identified based on the literature and discussions with five experts from the banknotes printing industry, Bank Indonesia as a consumer and regulator, the Ministry of State-Owned Enterprises, and the Indonesian Printing Security Association. An interpretive structural modeling analysis was used to measure the strength of the relationship between obstacles, develop hierarchical levels, and classify and rank each obstacle.
Findings - The results showed that the main obstacles included limited working capital, dependence on supplies of foreign banknotes, the complexity of their procurement, and barriers to accessing banking. These obstacles can be solved when Perum Peruri improves its capabilities and receives support from the government.
Originality - This study is original and provides new knowledge about the obstacles faced by banknote printing companies when changing their business model.
Downloads
References
Bank Indonesia. (2019). Bank Indonesia : Menavigasi Sistem Pembayaran Nasional di Era Digital. Jakarta: Bank Indonesia.
Berti C, Casprini E. 2018. When regulatory changes become a driver for business model innovation An illustrative case in an Italian airport. 26(1):63–74.doi:10.1108/IJOA-01-2017-1118.
Bouwman, H., Nikou, S., Molina-castillo, F. J., & Reuver, M. De. (2020). The impact of digitalization on business models. 20(2), 105–124. https://doi.org/10.1108/DPRG-07-2017-0039.
Crane Currency. (2019). Crane Currency Annual Report 2019. Malta: Crane Currency.
Downham, R., & Sears, V. (2017). Fingermark Visualisation on Polymer Currency (Bank of England). September.
Echo, G. N., Uk, D., & Uk, D. (2020). Jobs at risk as De La Rue plans to halt bank note printing in Gateshead. di(June), 2020–2021.
FNMT. (2019). Annual Report FNMT 2019. Madrid: FNMT.
Gatautis R, Vaiciukynaite E, Tarute A. 2020. Impact of business model innovations on SME ’ s innovativeness and performance. 14(4):521–539.doi:10.1108/BJM-01-2018-0035.
G&D. (2019). G&D Annual Report 2019. Munich: G&D.
Hayta, P., & Oktav, M. (2019). The Importance of Waste and Environment Management in Printing Industry. 3(2), 18–26.
Irmayanti, H. (2019). Analysis of Raw Material Ordering with Economic Order Quantity Method. 662. https://doi.org/10.1088/1757-899X/662/3/032011
Kitsios, F., & Kamariotou, M. (2019). Business strategy modelling based on enterprise architecture: a state of the art review. Business Process Management Journal, 25(4), 606–624. https://doi.org/10.1108/BPMJ-05-2017-0122.
Lloyd, A. D., Antonioletti, M., & Sloan, T. M. (2016). Able but not willing ? Exploring divides in digital versus physical payment use in China. 29(2), 250–279. https://doi.org/10.1108/ITP-10-2014-0243
Marimin, M. (2017). Teori dan Aplikasi sistem Pakar dalam Teknologi Manajerial. Bogor; IPB Press.
Marseille A, Chereau P. (2019). The performance implications of the strategy – business model fit model fit. J. Small Bus. Enterp. Dev. 26(3):441–463.doi:10.1108/JSBED-04-2018-0122.
MartÃ, I. (2018). Transformational Business Models, Grand Challenges, and Social Impact. Journal of Business Ethics, 152(4), 965–976. https://doi.org/10.1007/s10551-018-3824-3
Mcnally, J. S. (2018). Business Transformation: No Pain, No Gain? Strategic Finance, 100(5), 34–39. https://search-proquest-com.proxy.library.lincoln.ac.uk/ docview/2131568738/ fulltextPDF/28B91BE5EA6147C3PQ/1?accountid=16461
Müller, A. L., & Pfleger, R. (2014). Business transformation towards sustainability. Business Research, 7(2), 313–350. https://doi.org/10.1007/s40685-014-0011-y
Nasdaq’s OMX’s. (2019). Global Security Paper Market is Expected to Reach USD 17 . 76 Billion by 2025 : Fior Markets. 1–5.
NPBJ. (2018). National Printing Bearue Business Guide.Tokyo: NPBJ.
NPO. (2019). Philippines : NPO vows to provide world-class printing service. 1–2. Manila: NPO.
Osterwalder, A., Pigneur, Y., Smith, A., & Movement, T. (2010). You’re holding a handbook for visionaries, game changers, and challengers striving to defy outmoded business models and design tomorrow’s enterprises. New Jersey: John Wiley & Sons.Inc.
Panda BK. (2020). Application of business model innovation for new enterprises A case study of digital business using a. 2020;39(4):517–24.
Peruri. (2021). Perum Peruri Annual Report 2020. Jakarta: Perum Peruri.
Peruri. (2020). Corporate Social Responsibility Report. Jakarta: Perum Peruri.
Polinkevych, et all. (2022). Change of business models of Ukrainian insurance companies in the conditions of COVID-19. Insurance Markets and Companies. https://doi.org/10.21511/ins.12(1).2021.08
Rengkung, L. R. (2018). Modelling of dynamic capabilities: A system dynamics approach. Academy of Strategic Management Journal, 17(5), 1–15.
Saxena, J. P., Sushil, & Vrat, P. (1992). Hierarchy and classification of program plan elements using interpretive structural modeling: A case study of energy conservation in the Indian cement industry. Systems Practice, 5(6), 651–670. https://doi.org/10.1007/BF01083616
Shahri, M. H., & Sarvestani, M. N. (2020). Business model innovation as a turnaround strategy. 13(2), 241–253. https://doi.org/10.1108/JSMA-08-2019-0154
Shuili, Y., Xiang, L., & Yi, Y. (2021). Research on the Influencing Factors of Manufacturing Transformation and Upgrading Based on Grounded Theory. Journal of Physics: Conference Series, 1827(1), 012103. https://doi.org/10.1088/1742-6596/1827/1/012103
Stalmachova, K., Chinoracky, R., & Strenitzerova, M. (2022). Changes in Business Models Caused by Digital Transformation and the COVID-19 Pandemic and Possibilities of Their Measurement — Case Study.
Tian, Q., Zhang, S., Yu, H., & Cao, G. (2019). Exploring the Factors Influencing Business Model Innovation Using Grounded Theory : The Case of a Chinese High-End Equipment Manufacturer. https://doi.org/10.3390/su11051455
Van Tonder, C., Schachtebeck, C., Nieuwenhuizen, C., & Bossink, B. (2020). A framework for digital transformation and business model innovation. Management (Croatia), 25(2), 111–132. https://doi.org/10.30924/mjcmi.25.2.6
Wankmüller, C., & Reiner, G. (2021). Identifying Challenges and Improvement Approaches for More Efficient Procurement Coordination in Relief Supply Chains. 1–24.
Warfield, J. N. (1973). Binary Matrices in System Modeling. IEEE Trans. Syst. Man. Cybern. SMC-3, 441-449.
Warta Ekspor. (2019). Pulp dan Kertas Produktifitas Industri. Jakarta: Ministry of Trade of Indonesia.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2018). Strategic Management and Business Policy. London: Pearson.
Widyatama, U. (2019). Lean Supply Chain Sebagai Strategy peningkatan produktifitas Study Kasus pada PT Indah Kiat Pulp and Paper. 14, 27–35.
Yang C. (2017). Revisiting the resource-based view on logistics performance in the shipping industry. doi:10.1108/IJPDLM-05-2017-0184.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.