JOURNAL OF WORLD SCIENCE
https://jws.rivierapublishing.id/index.php/jws
Volume 3. No. 12 December 2024
DOI: 10.58344/jws.v3i12.1258 1717
P-ISSN: 2828-8726
E-ISSN: 2828-9307
INNOVATION AND MARKETING STRATEGY FOR IT SERVICES IN XYZ
CONSULTING BUSINESS AT PT XYZ
Yones Fitra Deliyandra
1
, Tongam Sirait
2
Sekolah Tinggi Ilmu Ekonomi Harapan Bangsa, Bandung, Indonesia
mm-[email protected], [email protected]
ABSTRACT
PT XYZ, a leading Information Technology (IT) company in Indonesia, has an IT consulting division, XYZ
Consulting Services, which is essential in providing IT solutions to clients. Along with the rapid development of
Industry 4.0, competition in the IT consulting services sector is getting tougher. Service innovation is key to
maintaining a competitive advantage and increasing market share. This research aims to deeply analyze the
innovation and marketing strategies implemented by XYZ Consulting Services to strengthen the company's
position in the IT consulting market. This research combines interview and observation methods to collect
primary and secondary data using a qualitative approach. SWOT (Strengths, Weaknesses, Opportunities,
Threats) analysis and BCG (Boston Consulting Group) matrix were used to identify internal and external factors
affecting the company. The research results are expected to determine the types of relevant service
innovations and effective marketing strategies that XYZ Consulting Services will implement. In addition, this
research will also provide strategic recommendations that can support PT XYZ in achieving its business
objectives, namely strengthening its competitive position in the dynamic IT consulting market.
Keywords: innovation, marketing, strategic management
Corresponding Author: Yones Fitra Deliyandra
E-mail: mm-[email protected].ac.id
INTRODUCTION
The IT consulting services industry (Strategic Consulting Services) is growing rapidly in this
industrial era 4.0 (Friess et al., 2024; Hernández et al., 2024; Nayal et al., 2023; Nugroho et al., 2024;
Sharma et al., 2024). Competition between consulting companies is getting tighter, encouraging
every IT consulting company to continue to innovate in terms of the services offered (Kurpiela &
Teuteberg, 2023; McCauley et al., 2024; Preciado-Hoyos et al., 2017; Rajani et al., 2022; Sharma et
al., 2024). Service innovation is the primary key for IT consulting companies to increase sales and
maintain a competitive advantage in the market. According to PAC Indonesia, the IT services market
in Indonesia reached IDR 187 trillion in 2022 and is projected to continue growing at a CAGR of 8.9%
to reach IDR 329 trillion by 2027. This growth opens up great opportunities for IT consulting
companies to expand and assist Indonesian companies in achieving their digital transformation goals
(Affandi et al., 2024; Huwaida et al., 2024; Nugroho et al., 2024).
PT. XYZ is also one of Indonesia's leading IT consulting companies, offering a wide range of
consulting services to clients in various industry sectors. PT. XYZ has extensive experience and
expertise in helping various companies achieve business goals. However, amid intense industry
competition, PT. XYZ needs to continue innovating its services to increase sales and maintain its
position as a reliable player in the market.
Yones Fitra Deliyandra
1
, Tongam Sirait
2
Innovation and Marketing Strategy for It Services in XYZ Consulting Business at PT XYZ
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PT XYZ's IT consulting services industry faces various complex obstacles. This forces one of PT
XYZ's business lines, XYZ Consulting Services, to adapt and innovate to remain competitive and
profitable. In recent years, various studies have explored the competitive landscape of the IT
consulting industry, focusing on service innovation and marketing strategies. For instance, Nucci et
al. (2023) examined how digital transformation impacts client engagement in IT consulting firms,
while Guo et al. (2023) analyzed the effectiveness of service differentiation in enhancing market
share. However, these studies often overlook the challenges companies like PT XYZ face in
Indonesia's rapidly evolving market (Czapla et al., 2023; Graesch et al., 2024). This research aims to
fill that gap by comprehensively analyzing XYZ Consulting Services' unique strategies and
innovations, particularly in adapting to Industry 4.0 dynamics. By integrating qualitative methods
with SWOT analysis, this study will highlight relevant service innovations and offer strategic
recommendations tailored to strengthen PT XYZ's competitive positioning.
XYZ Consulting Services is experiencing positive growth due to this increase in revenue and
number of employees. However, the increase in revenue is followed by an increase in the number
of employees, and the consultant's income (salary) also continues to increase. This suppresses the
profit margin of XYZ Consulting Services. So XYZ Consulting Services must look for new strategies or
innovations to increase sales. The number of employees of XYZ Consulting Services during the period
2021-2023 has increased every year. In 2021, the company had 30 employees, then increased to 32
employees in 2022 and reached 40 in 2023. This increased number of employees indicates that XYZ
Consulting Services is growing and requires more workforce to support operations.
Prices for information technology (IT) consulting services have been flat and have declined
over the past 3 years, as reflected in the XYZ Consulting Services Report, while consultant revenues
have continued to increase. This puts pressure on profit margins and pushes XYZ Consulting Services
to look for new strategies to increase sales. The small profit margin requires XYZ Consulting Services
to have a high sales volume. This requires many consultants, which results in productivity and
efficiency issues, especially when consultant utilization is low. In addition to the above problems,
XYZ Consulting Services faces challenges from competitors that continue to grow. The competitor
map is also increasing with the number of micro-consulting (consultants with on-demand charging
for a minimal scope) and freelance consultants with low costs.
Based on the problem formulation described above, this study aims to analyze the right
marketing strategy for XYZ Consulting Services PT. XYZ is increasing sales of IT services amid
increasingly fierce competition, and it is also trying to identify factors that will cause a decrease in
the number of IT consulting service projects in 2023. This research also aims to evaluate steps the
company can take to increase the number of IT consulting service projects by implementing more
effective and efficient strategies, including efforts to optimize consultant utilization to support
productivity and efficiency.
In addition, this research will examine strategies that XYZ Consulting Services can implement
in the face of competition from micro-consulting, freelance consultants, and other IT consulting
firms, focusing on ways to differentiate their services in terms of price, quality, and market reach.
The research also aims to identify service innovation opportunities that the company can develop to
improve its competitiveness and sales by capitalizing on the latest technology trends relevant to
market needs. Finally, this research will explore ways that XYZ Consulting Services can protect its
service innovations from competitors so that the newly developed services continue to provide a
sustainable competitive advantage.
Yones Fitra Deliyandra
1
, Tongam Sirait
2
Innovation and Marketing Strategy for It Services in XYZ Consulting Business at PT XYZ
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Journal of World Science - Vol 3 (12) December 2024 - (1717-1730)
METHOD
The type of research used in this study is qualitative research. Qualitative research was
chosen because of its in-depth focus on analyzing existing phenomena and the ability to explore data
in the form of sentences, words, statements, or images that describe reality in more detail. This
research analyzes the internal and external factors influencing marketing strategy and service
innovation at XYZ Consulting Services PT. XYZ. Through this approach, the researcher hopes to
identify factors that need to be considered by the company in formulating an effective marketing
strategy and provide relevant recommendations to improve the company's competitiveness in the
market.
The population in this study consists of all elements involved in the operation and
management of IT services at XYZ Consulting Services PT. XYZ. This includes managers, consultants,
and employees directly involved in IT service projects and marketing strategies. The sample of this
research will be selected using the purposive sampling technique, which is the selection of samples
based on specific criteria that are considered to have relevant information and can provide in-depth
insight into the marketing strategy and service innovation being carried out by the company. The
employees selected have a deep understanding of the company's operational processes, project
management, and decision-making related to strategy and marketing.
In collecting data, this research will use two main data sources, namely primary data and
secondary data. Primary data is obtained through in-depth interviews with selected informants, such
as managers and senior consultants at XYZ Consulting Services. The interviews will be conducted
using a semi-structured interview guideline, which allows researchers to dig up information related
to marketing strategies, company challenges, and expectations and recommendations from internal
parties. Secondary data will be obtained from company documents, annual reports, and other
relevant sources, which can provide an overview of the company's external conditions and prevailing
market trends.
This research procedure begins with the data collection stage, which includes interviews and
the collection of company documents. Furthermore, the data obtained will be analyzed using a
thematic analysis approach to identify the main themes that emerge from the interviews and
documents collected. This data analysis technique will assist the researcher in categorizing and
linking information relevant to the research objectives, resulting in a clearer understanding of the
marketing strategies that the company needs to implement to improve its competitiveness. The
results of this analysis are then used to provide strategic recommendations that the company can
implement to achieve the desired goals.
RESEARCH RESULTS AND DISCUSSION
External Evaluation Factor (EFE) Matrix Analysis
The external audit process was conducted by observing opportunity and threat factors to
maintain the company's relevance to current market conditions. The weight of each factor was
determined based on interviews and direct observations of decision-makers in the company. The
weight scale used is 1 to 4, which means (1) very little effect, (2) no effect, (3) effect, and (4) very
much effect.
Yones Fitra Deliyandra
1
, Tongam Sirait
2
Innovation and Marketing Strategy for It Services in XYZ Consulting Business at PT XYZ
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Table 1. External Evaluation Factor (EFE) Matrix Analysis
External Factors
Weight
Rating
Weighted
Score
Opportunities
1
0,00
1
0,00
2
0,10
17
1,70
3
0,00
7
0,00
4
0,10
10
1,00
5
0,10
8
0,80
6
0,00
2
0,00
7
0,03
1
0,03
8
0,04
7
0,28
9
0,05
1
0,05
10
0,10
3
0,30
11
0,05
1
0,05
12
0,03
1
0,03
13
0,00
2
0,00
14
0,00
5
0,00
15
0,00
1
0,00
16
0,00
2
0,00
Threats
1
0,04
1
0,04
2
0,10
4
0,40
3
0,04
2
0,08
4
0,02
1
0,02
5
0,04
2
0,08
6
0,03
2
0,06
7
0,10
4
0,40
8
0,03
2
0,06
Total
1,00
5,38
Yones Fitra Deliyandra
1
, Tongam Sirait
2
Innovation and Marketing Strategy for It Services in XYZ Consulting Business at PT XYZ
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External Evaluation Factor (EFE) Matrix analysis using NVivo software:
1. Opportunities
Table 2. Opportunities Analysis
Codes
Number of
coding
references
Aggregate
number of
coding
references
Number
of items
coded
Aggregate
number of
items coded
Nodes\\\Opportunities\5G and High
Connectivity
1
1
1
1
Nodes\\\Opportunities\Artificial
Intelligence (AI)
17
17
13
13
Nodes\\\Opportunities\Big Data &
Analytics
7
7
6
6
Nodes\\\Opportunities\Cloud
computing
10
10
6
6
Nodes\\\Opportunities\Cyber Security
8
8
8
8
Nodes\\\Opportunities\Renewable
Energy and Green Technology
2
2
2
2
Nodes\\\Opportunities\Enterprise
Architecture
1
1
1
1
Nodes\\\Opportunities\Internet of
Things (IoT)
7
7
7
7
Nodes\\\Opportunities\IT GRC
1
1
1
1
Nodes\\\Opportunities\Machine
Learning
3
3
3
3
Nodes\\\Opportunities\The increasing
need for digital transformation
solutions in various industrial sectors
1
1
1
1
Nodes\\\Opportunities\Mobile Testing
1
1
1
1
Nodes\\\Opportunities\Development of
Quantum Technology
2
2
2
2
Nodes\\\Opportunities\Virtual Reality
(VR) and Augmented Reality (AR)
5
5
5
5
Nodes\\\Opportunities\\Serverless
Computing
1
1
1
1
Nodes\\\Opportunities\Health
Technology and Biotechnology
2
2
2
2
Yones Fitra Deliyandra
1
, Tongam Sirait
2
Innovation and Marketing Strategy for It Services in XYZ Consulting Business at PT XYZ
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Figure 1.
Opportunities
2. Threats
Table 3. Threats Analysis
Codes
Number of
coding
references
Aggregate
number of coding
references
Number
of items
coded
Aggregate
number of
items coded
Nodes\\Threats\Competitors
with more experience and
data sources
1
1
1
1
Nodes\\Threats\Competitors
with the latest technology
4
4
4
4
Nodes\\Threats\Economic
uncertainty
2
2
2
2
Nodes\\Threats\Price
Competition
1
1
1
1
Nodes\\Threats\Changing
client needs
2
2
2
2
Nodes\\Threats\Regulatory
and Political Changes
2
2
2
2
Nodes\\Threats\Changing
market trends
4
4
3
3
Nodes\\Threats\Changing
technology trends
2
2
2
2
Yones Fitra Deliyandra
1
, Tongam Sirait
2
Innovation and Marketing Strategy for It Services in XYZ Consulting Business at PT XYZ
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Figure 2.
Threats
Analysis Internal Factor Evaluation (IFE) Matrix
In addition to external factors, internal audits are also important to get a comprehensive
picture of business development. SWOT (Strength, Weakness, Opportunities, and Threat) analysis is
used to identify key internal factors.
The following are some of the internal factors observed based on the interviews:
Table 4. Internal Evaluation Factor (IFE) Matrix Analysis
Internal Factors
Weight
Rating
Weighted
Score
Strengths
1
Good work culture
0,04
2
0,08
2
Ongoing evaluation
0,05
3
0,15
3
HR Intuition
0,02
1
0,02
4
HR technical expertise
0,10
4
0,40
5
Partnership
0,05
3
0,15
6
HR KPIS
0,02
1
0,02
7
Training
0,05
2
0,10
8
Addition of human resources
0,05
2
0,10
9
Company and HR experience
0,08
6
0,48
10
IT service portfolio in various industry
sectors
0,05
1
0,05
11
Certified Human Resources
0,08
3
0,24
12
Update with the latest technology
0,03
2
0,06
Weaknesses
Yones Fitra Deliyandra
1
, Tongam Sirait
2
Innovation and Marketing Strategy for It Services in XYZ Consulting Business at PT XYZ
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1
Response Speed
0,08
2
0,16
2
Limited human resources
0,10
5
0,50
3
Lack of investment in research
0,05
1
0,05
4
The sometimes slow process of adopting new
technologies.
0,08
3
0,24
5
No source of knowledge
0,07
1
0,07
Total
1,00
2,87
Internal Factor Evaluation (IFE) Matrix analysis using NVivo software:
3. Strengths
Table 5. Strength Analysis
Codes
Number of
coding
references
Aggregate
number of coding
references
Number
of items
coded
Aggregate
number of
items coded
Nodes\\\Strengths\Good
work culture
2
2
2
2
Nodes\\ Strengths\
Continuous evaluation
3
3
3
3
Nodes\\ Strengths\ HR
Intuition
1
1
1
1
Nodes\\ Strengths\ HR
technical expertise
4
4
4
4
Nodes\\\Strengths\Partnershi
ps
3
3
3
3
Nodes\\\Strengths\KPI HR
1
1
1
1
Nodes\\\Strengths\Training
2
2
2
2
Nodes\\\Strengths\Human
Resources Addition
2
2
2
2
Nodes\\\Strengths\\Company
experience and human
resources
6
6
5
5
Nodes\\\Strengths\\Portfolio
of IT services in various
industry sectors
1
1
1
1
Nodes\\\Strengths\Certified
Human Resources
3
3
3
3
Nodes\\\Strengths\Updated
with the latest technology
2
2
2
2
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1
, Tongam Sirait
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Figure 3.
Strengths
4. Weaknesses
Table 6. Weaknesses Analysis
Codes
Number of
coding
references
Aggregate
number of
coding
references
Number
of items
coded
Aggregate
number of
items coded
Nodes\\\Weaknesses\\Speed of
Response
2
2
2
2
Nodes\\\Weaknesses\Limited
Human Resources
5
5
5
5
Nodes\\\Weaknesses\Lack of
investment in research
1
1
1
1
Nodes\\\Weaknesses\\The process
of adopting new technology is
sometimes slow.
3
3
3
3
Nodes\\\Weaknesses\\The absence
of a source of scientific information
(source of knowledge)
1
1
1
1
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1
, Tongam Sirait
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Innovation and Marketing Strategy for It Services in XYZ Consulting Business at PT XYZ
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Figure 4.
Weaknesses
Formulation
SWOT Matrix SWOT matrix
SWOT analysis is a systematic framework for evaluating an organization's internal and external
factors. It aims to identify strategies that are aligned with the business environment's conditions.
1. Strengths (S)
a. HR Technical Expertise (0.4)
b. Company Experience and HR (0.48)
c. Good Work Culture (0.08)
2. Weaknesses (W)
a. Limited human resources (0.5)
b. Response Speed (0.16)
c. Slow New Technology Adoption Process (0.24)
3. Opportunities (O)
a. Artificial Intelligence (AI) (1.7)
b. Cloud Computing (1.0)
c. Big Data & Analytics (0.8)
4. Threats (T)
a. Competitors with Latest Technology (0.4)
b. Market Trend Change (0.4)
c. Competitors with More Experience and Data Sources (0.04)
Table 6. SWOT Analysis
Yones Fitra Deliyandra
1
, Tongam Sirait
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Strengths (S)
Weaknesses (W)
Opportunities
(O)
SO Strategies
1. Leverage existing HR technical
expertise and corporate
experience to develop innovative
and competitive AI solutions. (S1,
S2, O1)
2. Enhance Cloud Computing
capabilities by utilizing company
experience and existing human
resources to meet market demand.
(S2, O2)
3. Optimize Big Data & Analytics with
HR technical expertise to gain
valuable insights and improve
efficiency. (S1, O3)
WO Strategies
1. Increase the speed of response and the
ability of human resources through
training and development in the field of
AI to face competition. (W1, W2, O1)
2. Accelerate the process of adopting
Cloud Computing technology by
improving HR capabilities and
overcoming existing limitations. (W1,
W3, O2)
3. Overcome HR limitations and increase
the speed of response to optimally
utilize Big Data & Analytics
opportunities. (W1, W2, O3)
Threats (T)
ST Strategies
1. Leverage HR technical expertise
and company experience to
develop innovative solutions that
can outperform competitors. (S1,
S2, T1, T2)
2. With a good work culture, improve
the ability of human resources to
deal with changes in market trends
and technology. (S3, T2)
WT Strategies
1. Overcome human resource limitations
and accelerate the process of adopting
new technology to face competitors
with the latest technology. (W1, W3,
T1)
2. Increase the speed of response and
overcome the limitations of human
resources to be able to deal with
changing market trends. (W1, W2, T2)
Internal-External Matrix
Formulation using the IE matrix results in nine possible strategic positions for the organization,
determined by the interaction between internal and external factors.
Horizontal axis: Indicates internal strengths (IFE)
Vertical axis: Shows the attractiveness of the external environment (EFE)
Yones Fitra Deliyandra
1
, Tongam Sirait
2
Innovation and Marketing Strategy for It Services in XYZ Consulting Business at PT XYZ
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Journal of World Science - Vol 3 (12) December 2024 - (1717-1730)
Figure 5.
EFE and IFE Formulation Results
Based on your EFE and IFE matrix, the EFE weighted total score is 5.38, and the IFE weighted
total score is 2.87. Thus, the organization is in the Grow and Build (II) quadrant.
This quadrant indicates that the organization has significant internal strengths and is in a
relatively good external environment. Suggested strategies for organizations in this position are:
1. Market penetration: Increasing the market share of an existing product or service.
2. Market development: Entering new markets with existing products or services.
3. Product development: Developing new products or services for existing markets.
4. Integration: Absorbing other companies (vertical or horizontal integration) to strengthen market
position.
CONCLUSION
Several conclusions can be drawn based on the data analysis and discussion conducted in the
previous chapters. First, service innovations that XYZ Consulting Services can develop to increase its
sales and competitiveness include applying new technologies such as artificial intelligence (AI),
machine learning, and cloud computing in its service offerings. In addition, developing customized
solutions for niche markets and implementing flexible service delivery models to meet various
customer needs are important steps for the company. Second, the right marketing strategy to
increase sales of IT services from XYZ Consulting Services amid increasingly fierce competition is to
focus on strong positioning as an agile and customer-centric IT consulting company. The company
must develop a niche market-directed marketing strategy with a differentiated value proposition.
Utilization of digital media and online channels is key to reaching a broader market and conducting
more cost-efficient marketing. Strengthening online presence and engaging with potential
customers on digital platforms are important steps in this strategy.
Third, the main factors leading to a decrease in IT consulting service projects at XYZ Consulting
Services by 2023 include market saturation and fierce competition in the IT consulting industry. In
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addition, changes in customer preferences and demands that have not been well identified and a
lack of innovation in service offerings and delivery methods are other contributing factors. Fourth,
the right strategy to increase the number of IT consulting service projects at XYZ Consulting Services
is to diversify products by developing new service offerings that match evolving market needs and
technology trends. In addition, market expansion to expand customer reach and explore new market
segments must also be done.
Finally, to optimize consultant utilization and improve productivity and efficiency, XYZ
Consulting Services can implement better resource management strategies, such as skill-based
resource management, and increased employee training and development to strengthen
consultants' capabilities and abilities.
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