“Digital transformation is a process involving significant changes aimed to optimize an entity via information, computation, communication, and connectivity technology,” he elaborated. He considered a change can only be deemed as a transformation if it is massive and encompassing.

According to him, the current digital transformation occurs faster than the previous ones; it is caused by the technological development rate that doubles compared to the preceding transformation eras. The presence of the internet and other connectivity technologies facilitates the two main factors of technological expansion: information retrieval and knowledge transmission.

Frontier Technology

Frontier technology (known as leading digital technology) is a collection of modern information technology that currently goes through its mass implementation phase. Based on the graph shown by Dr. Arry, its market will rise from $350 million to $3.2 billion in 2018-2025. “This will be Indonesia’s huge challenge- what will we do with this huge potential?” he inquired.

He then explained that frontier technology development would impact the shift in societal nature. “Technology plays a role in changing the behavior and character of the people. Those who used to go around without their phone now are clueless if they do not own one,” he described the phenomenon with the emergence of smartphone usage.

Platform Model

The progressing digital transformation has not only affected physical technology. Nowadays, there is a growing number of platform model-based startups. According to Dr. Arry, the platform model can increase the efficiency of economic activities by minimizing the existing value chain and connecting producers with their consumers.

Dr. Arry concluded that platform models can be further developed into a wider scope. He gave several examples regarding the potential of multi-bank platforms; for instance, these platforms can become users’ main medium to access several bank services. Another illustration he mentioned was its application in higher-education systems, allowing us to obtain learning experiences flexibly at various universities.

Reporter: Favian Aldilla (Teknik Sipil, 2019)
Translator: Ruth Nathania (Teknik Lingkungan, 2019)