Artificial Intelligence Implementation in the Business Model Innovation for Ensuring Business Continuity: A Case Study of PT. Metrodata Electronics Tbk.

This paper explores potential risks to PT Metrodata Electronics Tbk. (ME), contemplating current technical developments and the effects of the Covid-19 pandemic. It highlighted how important business model innovation is to the company's survival in a changing business ecosystem. This paper proposed a new innovative business model that includes an AI-powered system, an online shipping platform, and digital payment methods. In addition, an initiative to develop ME’s IT solutions business is also needed to be added to the new innovative business model. The formulated paper objectives are successfully achieved because this paper managed to explain that business model innovation may enhance operational efficiency and sustain revenue generation, making the company keep its business continuity. This new innovative business model can be empowered by opportunities like changing consumer behavior and online shopping trend, but it can be hampered too by threats like digital transformation. Therefore, it is important for future authors to further explore AI implementation in business model innovation and valuable digital solutions for IT companies.


Introduction 1. Background
Digital transformation becomes a real phenomenon that happen in the recent era. It is currently used by many companies to support their business operation to be automated and efficient. To respond to this phenomenon, they implemented Industry 4.0. technology that may promote and support the development of the digital economy. However, the success of Industry 4.0. technology depends on the digital literacy of the country where the companies exist. Tutak, & Brodny (2022) conducted a research study on the European Union 27 countries (EU-27) and found that the success of Industry 4.0.
However, he thinks that a specification needs to be done to make this paper become more particular. Teece (2010) mentioned that the business model is the company's philosophy in dealing with customer needs, organizational ability, and the company's profit. Based on that statement, the author of this paper needs to choose which section of the business model he wants to write down. Inputting customer needs in making a paper about business model innovation may offer a value proposition that companies/businesses offer to their customers. In the end, this may give benefits both the customers and the companies (business success) (Geissdoerfer, Vladimirova, & Evans, 2018).
In addition, Niemimaa et al. (2019) argued that companies should include rapid technological advancement in their business model innovation initiative. At this point, the author of this paper needs to specify the type of technological advancement that he wants to write about too. He chooses to set Artificial Intelligence (AI) as the selected type of technological advancement because it can be used to do marketing-related tasks like enhancing customer satisfaction and automated ordering systems (Kutyauripo, Rushambwa, & Chiwazi, 2023). Thus, the author of this paper sees that AI is suitable for the paper's objectives.
From the literature reviews above, the author of this paper manages to formulate several research questions and research objectives that he wants to answer at the end of this paper.
a. To identify the relationship between business model innovation and business continuity; b. To identify the key factors and enablers of business model innovation; c. To identify the opportunities and challenges of adding AI to business model innovation.

Company Overview
PT. Metrodata Electronics Tbk. (ME) is considered one of the leading IT industries in Indonesia. It has already provided clients with IT products distribution such as hardware and software for 45 years since its establishment (Metrodata Electronics, 2022). Aside from that, the company also offers digital solutions through numerous technologies such as digital platforms, cloud services, big data & analytics, business applications, hybrid IT infrastructure, IT security, etc. with the intention to assist clients to adapt to digital transformation. ME's current business model is centered on ranging IT products and solutions provisions for its clients. This is based on its vision by which it wants to be one of the leading actors in the Indonesian digital economy advancement (Metrodata Electronics, 2022). Following this vision, the company set three missions to be done: a. Driving digital technology in Indonesia; b. Providing innovative and excellent digital solutions and services to its clients; c. Increasing shareholders' value and building a proper workplace.
To ensure that those missions may be done properly, the company then formulated three values that are proposed to the clients i.e.: a. Keeping the done actions in line with moral, ethical, and legal norms; Qeios,

Significance of the study
In short, this paper tried to analyze the correlation between business model innovation and business continuity. The author chooses to focus on the customer needs section of the business model. On another side, he selects AI to be the type of digital technology that he wants to input into his paper. He believed that the existence of AI in this paper may differ from his paper the existing research studies. (2019) conducted a research study to analyze the business model innovation of Brazillian companies and found that those companies may present a new way to generate value through market expansion, diversification, as well as product and service differentiation. Since that research study does not discuss AI yet, then this paper would bring an explanation about AI implementation in business model innovation, and seek whether it helps the company to innovate on its business model to thrive its business continuity or not. Niemimaa et al. (2019) mentioned that rapid technological changes may affect business continuity. From this statement, the author of this paper believed that the emergence of AI, which is one of the recent digital technology types, may affect the company's business continuity. Haleem et al. (2022) stated that AI may make the marketing campaign becomes more effective by spreading information and content based on the customer's preferences, thus it can be helpful for the company to meet the customer needs. However, this study also mentioned that the result of AI implementation depends on each industry. Hence, it drives the author of this paper to write down AI, ME's business model innovation, and ME's business continuity.

Analysis of Uncertainties
Every company aims to ensure the long-term sustainability of their business. Sustained business operations provide advantages such as increased revenue, cash flow, and capital. The more advantages a company earns, the stronger its ability to operate smoothly and meet its financial obligations, reducing the risk of encountering financial difficulties. To achieve these goals, companies need to establish a business model that enables them to adapt to the evolving business ecosystem and maintain a sustainable business cycle.
However, there is a significant challenge that hinders companies from achieving these ideals, namely uncertainty.
Uncertainty refers to unpredictable future events or outcomes that may disrupt business continuity within a specific sector.
According to the Corporate Finance Institute (2022), uncertainty arises when companies lack knowledge or information in particular fields or sectors.
In the context of IT solutions and distribution businesses like ME, several uncertainties pose challenges. The first uncertainty is the rapid transformation of technological trends. Technological advancements evolve rapidly and are difficult Qeios, CC-BY 4.0 · Article, June 18, 2023 business model innovation and business continuity according to what happens in ME's business. Since ME is an IT company, the author sees that it may fit with the paper's objectives by which one of them wants to explain AI implementation in business model innovation.
Here are the details of the new innovative business model design that ME may implement to deal with the identified uncertainties, as well as to sustain its business continuity:  (Wang et al., 2021;Zavarella, 2021;Investor Academy Indonesia, 2022a, 2022bMetrodata Electronics, 2022;Raj et al., 2022; Synnex Metrodata Indonesia, n.d).

Execution Plan for Changes Project
To meet the customer's needs during the Covid-19 pandemic, ME should conduct several changes to modify its existing business model. The first change is the implementation of an AI-based system. As we know, the pandemic turns consumer behavior from offline to online shopping because they want to avoid physical contact (Wang et al., 2021). In addition, the increasing demand for IT products and solutions also occurs because many people want to adapt themselves to the e-commerce trends due to the pandemic. It can be seen from Figure 1 below that showed ME's Qeios, CC-BY 4.0 · Article, June 18, 2023 revenue rate. If the supply chain is not well managed, then ME may experience a scarcity of materials by which the products are unavailable while the demand for those products increases (Raj et al., 2022). Hence, AI implementation is important to be added to the company's business model because it may help the company to optimize its supply chain management. AI (which is one of the Industry 4.0. technology) may reduce errors and costs while the company wants to do demand forecasting due to its capability to analyze data, market trends, and customer preferences in a more accurate and efficient way compared to human methods. This can allow the company to prevent overstocking, and to adjust their supply chain management policy. Thus, unnecessary operational costs may be cut, and more revenue may be earned. AI implementation in this area may take several shapes such as machine learning algorithms to analyze historical data and conduct forecasting based on it, AI-powered forecasting tools to predict demand automatically, etc. (Aamer, Yani, & Priyatna, 2021).
Aside from that, ME should also digitalize its products and solutions sales by establishing online shopping platforms i.e., mobile apps, and websites. In Indonesia, the amounts of smartphone users keep increasing starting from 2017 to 2022, and it is predicted to keep increasing until 2028-you can see the statistics in Figure 2 below. The trend also happens to Indonesian internet users whose amounts keep increasing from year to year-you can see the statistics in Figure 3 below.
Those statistical data are evidence that online shopping may become a certain opportunity for ME to keep its business continuity. In this case, AI may be utilized by ME to optimize its online shopping through several features like chatbots and virtual assistants, recommendation systems, image tagging and visual search, etc. For the payment methods, ME should incorporate a cashless system into its new business model (BM). While it is true that many Indonesian people still use conventional payment methods such as debit/credit cards or bank transfers, we cannot reject the fact that the Covid-19 pandemic and government physical restriction drive companies and customers to do buying-and-selling activities online (Jilkova, & Kralova, 2021). Therefore, it is important for the company to provide digital payment methods such as in-app payment, m-banking, e-money, etc. However, conventional payment methods should be maintained to facilitate payments from those who are unable to use cashless methods.
The last change that the author would like to propose in this paper is being focused on digital solutions and software. As it is mentioned before, scarcity of materials may happen due to the Covid-19 pandemic, and the government's physical restriction policy, making the supply chain activities negatively influenced by it (Raj et al., 2022). To deal with this issue, it is important for ME to put its attention on developing its IT solutions and consultation. Since those things are immaterial, it seems that their sales rate may be maintained, allowing the company to keep earning revenue despite the supply chain problem occurring. It does not mean that ME should close its IT products business, but the company should look at its other business (IT solutions) and develop it. the company should also develop its IT solution business. Then, it may proceed to the next stage i.e., developing several AI tools and methods such as digital payment methods, mobile apps & websites, as well as machine learning for demand forecasting (Aamer, Yani, & Priyatna, 2022;Statista, 2022a;Statista, 2022b).