Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in a country's economic growth, as they can absorb a large portion of the workforce and attract a significant amount of investment. The Ministry of Cooperatives and Small and Medium-Size Enterprises [1] reported that MSMEs in Indonesia have the potential to employ up to 97% of the total workforce and collect up to 60.42% of the total investment in the country. Furthermore, MSMEs contributed to 61.07% or IDR 8,573.89 trillion of the gross domestic product (GDP) in 2019, with the number of MSMEs in Indonesia reaching 65.4 million. The significance of MSMEs is evident in their potential to contribute to the country's efforts to reduce the number of unemployed individuals, making them one of the most important elements of the economy in generating new jobs for the local population [2].

The Indonesian economy's potential for growth in 2023 presents an opportunity for MSMEs in the IT industry. The government has implemented several MSME support programs, including financing, to support economic growth [3]. The IT industry has been growing rapidly, supported by the increasing adoption of digital technologies in various sectors. According to Statista, the market size of Indonesia's IT industry is expected to reach US$33.6 billion by 2025, with a compound annual growth rate (CAGR) of 7.1% from 2021 to 2025. With the increasing number of internet users and e-commerce market growth, the IT industry in Indonesia has a significant potential for growth. Additionally, the Indonesian government has launched various initiatives to support the growth of the IT industry, creating a favorable environment for companies in the IT industry to expand their operations and achieve long-term success [4].

Previous study documented that there are influences of internal and external factors. Internal factors play a crucial role in the growth and success of both the IT industry MSMEs. A highly skilled workforce is essential for developing and implementing innovative technologies that meet customers' evolving needs in the IT industry [5]. Studies have shown that skilled workforces are linked to higher customer satisfaction and retention rates, which are critical for long-term business success. For MSMEs, human resources can significantly affect their growth and survival [6]. By providing ongoing training to employees, companies can ensure they have the necessary skills and knowledge to provide high-quality products and services, and adapt to changes in the industry [7]. Business owners can also improve their competencies, intelligence, and skills through education and training, both formal and informal, and gain more experience related to managerial aspects [8,6]. A company with adequate access to finance is more likely to grow than a company lacking financial resources [9]. Moreover, operational and marketing management are crucial because they manage all matters relating to the company's operations, communication, or good customer relations [10]. Therefore, the selection in the use of promotional media is an essential consideration [10].

External factors play a critical role in the growth and success of MSMEs. Government policy is a significant external factor impacting the entrepreneurship environment. The government is responsible for supporting the expansion of regional MSMEs through policies promoting entrepreneurship and economic growth. Regulations, trade policy, labor market policy, and social policy are factors that affect entrepreneurship, and they all need to be coordinated to support the growth of MSMEs. The Indonesian government has been implementing policies such as the Job Creation Law, Pemulihan Ekonomi Nasional (PEN), and Kredit Usaha Rakyat (KUR) to support the growth of MSMEs. These policies aim to improve access to financing and strengthen MSME capital. Competition is another significant external factor affecting MSME growth. Market competition creates growth opportunities for MSMEs, but high competition can also inhibit growth. MSMEs must differentiate themselves from competitors through quality and service to compete and continuously improve towards growth. Benchmarking themselves with the best in the industry can help MSMEs identify areas for improvement and growth [11]. 

Hence, to achieve improved performance, it is essential for a company to analyze both its internal and external environment to develop a strategic plan that maximizes its strengths, addresses its weaknesses, and takes advantage of opportunities while mitigating potential threats. This strategic planning process plays a vital role in guiding decision-making in a company or business actor [12]. It helps ensure that the business has a clear direction in supervising, controlling, and evaluating the implementation of strategies and business achievements in line with the existing vision and mission. Analyzing internal factors such as the company's resources, human capital, and operational activities can help identify strengths and weaknesses, while analyzing external factors such as market competition and government policies can help identify opportunities and threats [13]. By conducting a thorough analysis, a company can develop a strategic plan that aligns with its goals and objectives, and enables it to achieve improved performance.

This study aimed to provide recommendations for the business strategy of PTIDM, a small enterprise in the IT industry in Indonesia, using qualitative methods and internal and external analysis. Primary data was obtained through interviews with PTIDM owners and employees from January to March 2023, and secondary data was collected through library, digital, and online sources. The study used the Business Model Canvas (BMC) and PEST analysis as tools for analysis and developed a proposed BMC. Semi-structured interview guidelines were used to gather information. The use of qualitative methods allowed for a close analysis of real-life situations, and the results provide insights into the development of effective business strategies.

In the interview with business owners, there are possible causes of the declining revenue, including manpower, method, product and service, and the market (Figure 1). Manpower and standard operating procedures (SOPs) are crucial to running day-to-day business operations. PTIDM has five employees, including business owners, but their roles are not clear enough, and there are no standard procedures for business processes. Lack of commercial experience and knowledge among employees is one of the primary reasons for the inadequacy of SOPs. There is also a need for continuity in content posts or promotion, limiting the company's ability to remain competitive in the fast-paced market. The focus is still on selling products; the service only accounts for 20% of total revenue. However, the employees demonstrate a strong willingness to learn and support each other. The business owners want to recover revenue, grow the business by selling products and increase the capability of service offers. They recognize the need for more commercial knowledge and experience to achieve these goals.

PTIDM operates as a sub-distributor of the main distributor for big IT hardware or software manufacturers and offers a range of products and services, including installation, maintenance, and repair, with a focus on high-quality products from reputable brands such as Apple, Dell, Jabra, and Logitech, while placing a strong emphasis on building strong relationships with customers and providing exceptional customer service. The existing BMC is captured in the  Figure 2.

PTIDM's value proposition centers around providing high-quality products from reputable brands and personalized services tailored to meet each customer's unique needs. The company ensures product quality through careful selection and testing before sale and offers personalized consultations and post-sale support.

The customer segment is primarily private sector companies, but the owners express interest in exploring new segments. Word-of-mouth and digital marketing are used to reach potential customers, and the company places a high value on building strong customer relationships. Key resources include a skilled workforce and good networking, while key activities include selling IT products and offering expert consultancy and contract services. Key partnerships include Jabra and Logitech as authorized distributors, and the cost structure includes salaries and operating costs. The owner prioritizes keeping costs low, but the lack of marketing investment may limit the company's ability to attract new customers and keep up with competitors.

Figure 1: The fishbone analysis

Figure 2: The existing Business Model Canvas of PTIDM

The PEST analysys resulted that the business environment in Indonesia is shaped by various political factors, including government regulations and policies that impact the technology industry (Table 1). For PTIDM, compliance with data privacy and security regulations is crucial. The government's plan to develop Indonesia's information and communication technology infrastructure is expected to lead to potential opportunities for PTIDM to expand its business and attract new customers. Political stability in Indonesia has been improving, leading to an increase in foreign investment and a growing IT industry. Indonesia's economy has been growing steadily, presenting opportunities for companies in various sectors, including the IT industry, as businesses seek to improve their efficiency and productivity. The increasing trend of remote work and digital transformation presents an opportunity for PTIDM to provide IT solutions and services, such as cloud-based services and remote collaboration tools. Additionally, increasing awareness of cybersecurity's importance in Indonesia creates opportunities for PTIDM to offer security-related products and services. Rapid technological advancements pose a challenge for PTIDM to keep up with the latest products and services. Still, emerging technologies such as cloud computing and artificial intelligence present opportunities for PTIDM to offer innovative solutions to its customers.

Table 1: Regulations and policies that impact the technology industry

Figure 3: Proposed Business Model Canvas of PTIDM

After conducting a thorough analysis of PTIDM's internal and external environments, the author proposes a new business model canvas that leverages the company's capabilities and addresses its challenges to drive growth and success in the competitive the industry. The proposed BMC of PTIDM is presented as follows:

This study proposes additional elements to the existing business model canvas for PTIDM, including customer segments, customer relationships, channels, key resources, and cost structure. Two customer segments have been identified: government sector companies and individuals (Figure 3). The study highlights the importance of social media optimization to enhance customer relationships, while physical stores, e-commerce platforms, and social media are identified as the channels to reach out to customers. Additionally, external funding is deemed necessary for the company's growth and operations, and the company needs to invest in training and marketing efforts to maintain a skilled workforce, attract new customers, and generate revenue.

PTIDM's declining revenue may be attributed to its employees' need for clear roles and SOPs, limited marketing efforts, and a low emphasis on service offerings. However, the company strongly focuses on providing high-quality products and exceptional customer service, with key partnerships with reputable brands. The business environment in Indonesia is influenced by various political factors, including government regulations and policies that impact the technology industry. Nevertheless, the growing economy, increasing demand for IT products and services due to the COVID-19 pandemic, and emerging technologies such as AI and cloud computing present potential opportunities for PTIDM to expand its business and attract new customers. PTIDM must also consider the importance of cybersecurity and the need to keep up with rapid technological advancements to remain competitive in the IT industry. The proposed BMC emphasizes the importance of personalized services, social media optimization, and external funding to maintain a skilled workforce, attract new customers, and generate revenue. Also, the proposed BMC provides a comprehensive framework for PTIDM to achieve its goals and compete effectively in the dynamic IT industry. This study will provide insights and recommendations for other SMEs in the IT industry in Indonesia and other emerging markets facing similar challenges and opportunities.

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