How's Telkom facing in Industry 4.0 and Towards Society 5.0

1. 1
Telkom Indonesia toward Society 5.0
Dr. Dwi Heriyanto B.
VP Human Capital Strategic Management
PT Telekomunikasi Indonesia, Tbk

2. 1990 2000 2018
Doctor of
Management Business
PADJADJARAN UNIVERSITY
Master of
Telecommunication
Management
UNIVERSITY OF INDONESIA
Bachelor of
Industrial Engineering
UNIVERSITY OF INDONESIA
(2019 – Now) Vice President Human Capital Strategic Management
(2018 – 7/2019) Vice President Human Capital Development
(2016 – 2018) Vice President Human Capital Strategic Management
(2014 – 2015) Senior General Manager Telkom Corporate University
(2013 – 2014) Deputy SGM Telkom Corporate University
(2012 – 2013) Marketing Director PT Admedika (Subsidiary TelkomGroup)
(2010 – 2012) GM Corporate Business
(2007 – 2010) GM Consumer Business
EDUCATIONS
CAREER JOURNEY
OTHER ACTIVITIES
(2019 – Now) Commissioners PT PINS
(2018 – Now) Advisory Board AMOEBA Management
(2017 – 7/2019) Commissioners PT Infomedia Nusantara
(2017 – 2018) Coaching and Mentoring 4 Startup (OpenTrip, Arkademy, SmartEye, ZoomIn)
(2013 – Now) The Board of Trustee Telkom Foundation (YPT)
(2013 – 2017) Commissioners Telkomedika
VP Human Capital Development
Dr. Dwi Heriyanto B.
Telkom Landmark Tower (TLT) 29th
floor
Jl. Gatot Subroto Kav. 52, Jakarta Selatan
dwihb@telkom.co.id
dwihbdwihb Dwi Heriyanto
Since 1991JOIN TELKOM

3. BACKGROUND
TELKOM’S CHALLENGE
IN ENTERING SOCIETY 5.0
• Society 5.0
• Digital Trends
TELKOM’S HC STRATEGY
OUTLINE
• Developing Great People
• Telkom Digital Culture and Workstyle
• Adapting Organizational Strcuture for Digita
• HC Challenge toward Society 5.0

4. background
Society 5.0 & Digital Trends

5. Defining Society 1.0 as the hunter-gatherer stage of human development, we have now passed through the
agrarian and industrial stages, Society 2.0 and 3.0, and are moving beyond the information age, Society 4.0.
BACKGROUND
Source: https://medium.com/datadriveninvestor/the-future-of-humanity-and-the-world-of-technology-society-5-0-6e4dd5952bae 5

6. JAPAN’S SOCIETY 5.0: GOING BEYOND INDUSTRY 4.0
6
• Basically and summarizing, in Industry 4.0 the generation of knowledge and intelligence is done by humans with the help of technology;
• In Society 5.0 the generation of knowledge and intelligence will come from machines through Artificial Intelligence at the service of people.
The creation of knowledge from information is still accomplished by humans.
Yet in the fifth stage of human society, this will be done by machines, by AI.
The German concept of Industry 4.0, Intelligent Industry or 4th Industrial
Revolution is for real in development and involves the digitalization of
production processes in industry, either through sensors or through
information systems, transforming these processes to make them more
efficient.
INDUSTRY 4.0 SOCIETY 5.0

7. JAPAN HAS ADVANTAGES THAT MAKE SOCIETY 5.0
POSSIBLE
7
By taking advantage of these unique factors, Japan will overcome social challenges such as a decrease in the productive-age
population, aging of local communities and energy and environmental issues ahead of other nations. A vibrant economic
society will be realized by improving productivity and creating new markets.
Based in health and medical data from a universal health care system
and a wealth of operating data from numerous manufacturing facilities,
Japan has an environment rich in real and usable raw data for use in the
current market economy and industry.
Japan’s advanced technology cultivated from “monozukuri” (Japan’s
excellence in the manufacturing of things) and years of basic research, will
work as advantages toward creating products using information technologies
like Big Data and AI, which can then be released into our society.
Abundant Accumulation of Real Data Technology cultivated from“ monozukuri”

8. THE BENEFIT OF SOCIETY 5.0
8
• Big Data collected by IoT will be converted into a new type of intelligence by AI and will reach every corner of
society.
• As we move into Society 5.0 all people’s lives will be more comfortable and sustainable as people are provided with
only the products and services in the amounts and at the time needed.

9. THE INFLUENCE OF SOCIETY 5.0 IN DAILY LIFE
9
Essentially, Japan is planning to create a “super-smart society” capable of providing customized solutions through the
adoption of new technologies like artificial intelligence (AI), robotics, big data, and drones – as well as through policy
and regulatory reform.

10. diGITAL tREND
10
DIGITAL
TREND

11. WE ARE NOW LIVING IN CONCEPTUAL AGE…
AND PREPARING FOR SOCIETY 5.0
11
The “Creative and Conceptual” Age has created disruption in traditional value chain…
Agricultural
Age
I nd ustrial
Age
I n formation
Age
21st
Century
Information
Technology
Data
Technology
Source: Daniel H. Pink, “A Whole New Mind” and others
Disrupt traditional value chain
The world’s largest taxi
company, owns no
vehicles
The world’s most popular
media owner, create
no content
The most valuable
retailer, has no inventory
The world’s
largest
accommodation
provider, owns no real
estate
and….something interesting is happening
C o n c e p t u a l
Age
DigitalCreative EconomyEra
• Idea
• Creativity
• Innovation
• Invention

12. GLOBAL DIGITAL TREND… SOCIETY 5.0 IS GETTING CLOSER
12
The world transforms into digital leveraged by new technology implementation… The increasing of “new
market from frontier technologies” is the sign that SOCIETY 5.0 is getting closer.
Current digital
market expected
to grow in
relevance
Cloud &security
Connectedsociety
Shared Economy
Financial services
Advertising
Content
Connectivity
3.3B 5.5B 10.6B 20.5B
Robotics /
automation AR /VR
Analytics/ AI
Enterprise
Agility
E-commerce
2016 2020
TMD revenue distribution evolution - Global
($ Billions, %)
2025 2030
4 areas new tech
Source: Delta Partners, 2017
Current digital
market expected
to maintain
relevance
New market
from frontier
technologies
Market expected to
lose relevance

13. TRANSFORM FROM TRADITIONAL INTO DIGITAL
13
Digital business requires companies to act and respond faster than they ever have before…

14. Source: CEO Closing Notes & Concerns, Mei 2017
Transforming People, Business, Culture, Organization and Business Process
System
Structure
People
Business
Strategy
Shared Values
& Style
Vision
&
Mission
GREAT
LEADER
Business
Process
Skill & Staff
Style
Culture
Organization
TELKOM APPROACH TO DIGITAL TRANSFORMATION
14

15. 15
Telkom’s challenges
in entering society 5.0

16. Vision Be the King of Digital
in the Region
Mission Lead Indonesian Digital
Innovation and Globalization
Strategic
Objectives
Top 10 Market Capitalization
Telco in Asia-Pacific by 2020
PORTFOLIOS STRATEGYCORPORATE DIRECTIONS PARENTING STRATEGY 10 CORP. INITIATIVES
HCM FRAMEWORKCEO STATEMENT 5 YEARS HCM MILESTONE
TELKOM GROUP’S TO BE THE KING OF DIGITAL
Source: CSS 2019 - 2021 16

17. PEOPLE CULTURE ORGANIZATION
• BIG GENERATION GAP
Millennials will represent half of the workforce by 2020 and
three quarters by 2025.
• GIG ECONOMY & GIG WORKERS
The new talent management models need to be reviewed
as the impact of the phenomenon
• INVESTMENT & RETURN ON PEOPLE
Companies are looking to better drive the return on their
investment in people.
• TECHNOLOGY IMPACT ON CULTURE
Constantly connected by technology, blurring
the lines between personal time and work..
• WELLNESS PROGRAM
To help employees maintain their health, benefits may
include increased employee engagement, and productivity
• ‘REAL TIME’ PERFORMANCE MGT
Simplify performance management process and policy,
continuous feedback with new models of evaluation and
rewards. From once in a year performance appraisal into
Objective Key Result (OKR)>
• AGILE, FLAT & OPEN ORG
Operating model that characterized by the ability to select
the projects, authority is lateral, employee roles are defined
by their assignments
• DIGITALIZE HR
Utilize the advanced technologies in managing HR
• NETWORK OF TEAMS
Shift away from hierarchical organizational structure toward
models where work is accomplished in teams
What’s happening on HR Trends now and in the Future
Source: Masterplan FU Human Capital Management 2019 - 2023
HUMAN CAPITAL CHALLENGES FOR TELKOM
17

18. The concern to face the challenges, Toward World Class People and Culture
§ INCREASE EMPLOYEE
PRODUCTIVITY
§ 100% FUTURE READY
TALENT
§ MEASURABLE BUSINESS
IMPACT
§ DIGITAL CULTURE
ADOPTION
START FROM THE FRAMEWORK
Source: Masterplan Human capital management 2018 - 2021 18

20. Assessment Center Indonesia
1. Recruitment
2. Assessment
3. Personal Quality Development / Post
Assessment Development (PAD)
Internal :
Recruitment (GPTP)
Eksternal :
Assessment external
(Mahkamah Agung, Garuda,
BNI dll)
“Finding & Developing Great Leader”
“From Competence to Commerce”
Deliverable Method :
a. Classical
b. Digital Learning (E-Learning, Video Learning)
Digital Certification :
Digital Capabilities Certification for CX, Digital & Inorganic
Bussiness
Competency Management
Telkom Way
Great People Development Program (GPDP)
Preparing Great Leader who have strong
character, strong leadership, have vision on Digital
Business, National and Global
A. Enhance Digital Technical Capabilities
ICT & Digital, Strategic & Development, Commerce & Relations, Risk &
Compliance, Business Enabler / Enterprise Management
Great People Managerial Program (GPMP)
Strengthening the Managerial
capabilities in managing the execution
of the functions, resources, changes is
aligned with strategy
Creative & Innovation, Strategic Management Customer Orientation,
Execution-Focused, Change Leadership, Strategic Relationship, Nurturing
People, Entrepreneurship (Digital Biz. Acumen)
C. Enhance Digital Leadership Capabilities
B. Enhance personal qualities through Professional competencies
Adaptability, Fostering teamwork, Initiative, Decision
making, Continuous improvement, Analytical &
conceptual thinking, Organizational awareness
The Telkom Way
Basic beliefs and core values are mandatory for the Group
DEVELOPING GREAT PEOPLE
20

21. TRANSFORMING A MINDSET IS IMPORTANT IN THE DIGITAL
ERA
21Internal Presentation by SVP Digital Business Telkom, 2019

22. NEW HC SYSTEM FOR DIGITAL TALENTS
22
Developing new HC System for Digital Talents to attract best Digital Talents in the Market
Digital Capability Playbook
Guidance for Telkom how to develop digital people
Digital Policy System
Telkom HC Digital Policy, 2019

23. TELKOM DIGITAL CULTURE
& WAYS OF WORKING

24. SPEED
“Our speed is our competitive advantage”
SOLID
“The Strength of the team team is each individual member.
The strength of each member is the team”
- Phil Jackson, coach Chicago Bulls - Ralph Waldo Emerson & AJS
SMART
“Work smart is not how hard you work, but
how much you get done”
- Jaspreet Kaur, Lecturer
The Telkom Way
THE TELKOM WAY
24

25. INNOVATION JOURNEY IN TELKOM
25
Innovation as the culmination of culture
Innovation culture boosted!Empower AMA Hub & AMA Satellite Innovation leaders sprout!
Innovation Roadshow
Leaders Talk : Becoming Agents of Change
Telkom Regional 2
Mitratel
Telkom Regional 5
Telkom Infra
Subdit Cons Assurance
• Telkom Regional 1
• Telkom Regional 3
• Telkom Regional 4
• Telkom Regional 7
NEXT
Boosting Innovation Culture
• WA Group Culture Agent
• Live IG in Living In Telkom
• Post in (IG) Living In Telkom
• Email Blast
• Attractive Reward System
Twinning from AMA
Hub to AMA
Satellite
• Online
• Offline
Telkom Regional 6
120 Ideas
On Going
100 Ideas
Incubated by
TOP 20 Ide
Golden Ticket to
SKA
2019
600 Ideas
1800 Participants
Submission HACK Days TOP Idea’s
JakartaMedan Bandung Semarang Surabaya Balikpapan Makassar

26. Nothing Big Starts Big..., LEARN FROM START - UP
Large Firms like TELKOM needs to start thinking small to get out from legacy inertia
The Next Big Thing Usually
Starts Out Looking Like
Nothing At All
26

27. 27

28. (Diarium; EMSHUB; Satellite Office) (Workspace Facility)
(Locker & Desk Facility)
Flexi Time / Flexi Place Open Workspace Clean Desk
IMPLEMENTING THE NEW WAY OF WORKING
Digital Behaviour
28

29. The new digital focus for HR is not simply about technology; it changes the way companies scope & support employees
DIGITIZE ALL HR PROCESSES
29

30. ADAPTING
ORGANIZATIONAL
STRUCRURE FOR DIGITAL

31. WE ARE RUNNING DUAL MODE ORGANIZATION
31
There is a need for core business to remain as is for the time being..
Source: Masterplan Human capital management 2018 - 2021

32. PROJECT BASED CROSS-FUNCTIONAL TEAMS & EXPERIMENTATION
HUBS“Cross Function and Flexible Organization” : Transformation from Organization as “machine” into
Organization as “organism”. Startup organization is adopted in tribes/squads.
• NetworkedTeams
• Realign select existing structuresinto
self-managed,networkedteams,
focused on a specific outcome
• Adopt a collaborativesystems mindset
• Createan ecosystem of opentalentwith
a fail-fast perspective and harness
socialtechnologyas a mechanismto
keepthe organizationconnected
• Quick Change,Flexible Resource,focus
on action,end-to-endaccountability
(TRIBE)
(Squad)
(TRIBE Leader)
• Networked Teams
• Realign select existing
structures into self-
managed, networked
teams, focused on a specific
outcome
• Adopt collaborative systems
mindset
• Create an ecosystem of
open talent with a fail-fast
perspective and harnesy
social technology as
mechanism to keep the
organization connected
• Quic change, flexible
resource, focus on action,
end to end accountability
32

33. CONCLUSION TELKOM INDONESIA TOWARD TO SOCIETY 5.0
33
Delivring on Great People
Capacity & Capability,
Telkom set up:
Working on Great
Culture,
Integrating on Great
Organization (lean and
Agile)
Support Working
Environment.

34. The Telkom Hub

35. THANK
YOU