M2M Connectivity and Business Strategy Analysis: Case Study of PT XYZ in Jabodetabek Area

Advances in cellular technology have an impact on telecommunication needs that require fast, easy and efficient connectivity. M2M technology enables the use of cellular data services to transmit data between machines and machines with more practical devices using cellular technology and having high speed. M2M technology is predicted to increase its business growth until 2020 and can become a business field for telecommunications provider companies. On the other hand, in 2016 until 2018, there was a decrease in the number of new VSAT customers at PT XYZ in the Jabodetabek area. This decrease was caused by technical problems in the field that prevented VSAT access from being installed at the customer's location. To overcome this situation, the solution is to use M2M technology. This study analyzes the strategy and feasibility of M2M connectivity as a substitute for VSAT using the Return On Investment (ROI) method and performance testing. In addition, this study also formulated the M2M business strategy to increase the number of customers and the income obtained by PT XYZ using the SWOT matrix. The results of the study stated that M2M is worthy of being used instead of VSAT access. The ROI value of M2M access is 74 % and has a positive result, and is greater than the ROI value of VSAT access. This indicates that in terms of business calculations M2M access is feasible to replace VSAT access. The results of the performance test found that M2M latency is better than VSAT latency. M2M latency of 33ms is in the very good category, while VSAT of 596 ms is in the bad category. This indicates that M2M's performance is good and feasible to replace VSAT access. The result of the SWOT Matrix strategy is the S-O strategy. There are 3 strategy of S-O strategy, develop M2M products that support company services, penetration of M2M products to existing markets and new markets and cooperate with an application company or startup to create new services or products using M2M devices.