Page 68 - XL Axiata Integrated Anual Report 2020 ENG

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2020 Integrated Annual Report
MANAGEMENT DISCUSSION & ANALYSIS
• Various breakthroughs were achieved in 2020 to enhance XL HOME as the best and most comprehensive home entertainment service. Among other initiatives, XL Axiata partnered with Indonesia’s leading OTT service providers, such as Vidio, to introduce quality content into subscribers’ homes.
STRATEGIC OBJECTIVES
For almost all businesses and individuals, 2020 was an incredibly challenging year. The COVID-19 pandemic has compelled the Indonesian government to restrict citizens’ mobility despite the steep economic and social consequences.
The impact could be seen immediately from the weakening of the purchasing power of households and businesses across all sectors, as well as of the national economic growth.
Aside from having to respond to a new normal, XL Axiata must also navigate heightened business competition, as other companies, including competitors, are similarly adapting.
This competition could be seen, for instance, in the data tariff. The pandemic has forced employees and students to work and learn from home, thus creating a surge in data demand. However, their purchasing power was limited. This situation led
to tariff competition among telecommunications companies throughout 2020, especially in regions outside of Java.
To address the dynamic landscape, the Company came up with various strategies. Its short-term measures sought to mitigate different impacts from the business and economic situation,
whilst keeping the Company focused on cellular business digitalization and fixed broadband service enhancement. The Company also developed its medium- to long-term strategies to become the #2 Integrated Operator and to ensure that XL Axiata can be best positioned to continue growing post-pandemic.
The short-term measures during the year included strategies to strengthen XL Axiata’s digital channels, such as by refining promotions and product and service personalization of the XL, AXIS, and Prioritas plans through the self-service app. To accelerate the digital transformation of
its traditional channels, the Company now offers
digital vouchers, conducts virtual meetings, and has activated new payment methods in retail stores. The Company also improved services through the omnichannel customer care and digital kiosks, as well as by optimizing network capacity, especially on existing sites, to expand coverage.
The Company also recognized a significant shift in consumer behaviour and preference during 2020. To address this, XL Axiata’s digitalization initiatives included UI/UX (User Interface/User Experience) modernization of the myXL app and distributor-dedicated app. At the same time, the Company strengthened its backend infrastructure to maintain reliability.
In terms of operations, the Company automated its information technology and network monitoring systems and further implemented a paperless financial system as part of the efforts to become
a fully integrated digital company. To increase employee engagement and productivity, the Company optimized its virtual workshop and
team collaboration platforms that allow teamwork to be done in a more efficient manner. Indeed, operational excellence has always been in XL Axiata’s DNA.
As medium- and long-term strategies, XL Axiata
is looking to accelerate its transformation journey, such as by implementing hyper-automation, becoming the first digital convergence company in Indonesia’s telecommunications industry, and putting customer centricity at the core. The Company also continues to invest to realize
strong growth in regions outside of Java across its business lines, including XL HOME products and services.
PERFORMANCE SUMMARY
The short-term measures that XL Axiata executed in 2020 delivered solid results. The Company
also recorded several milestones, especially in
the context of the COVID-19 pandemic when digitalization fundamentally changed the way
the Company interacted with its stakeholders – customers, suppliers, the public, and the shareholders.
PT. XL AXIATA TBK TRANSFORM FASTER TO EMERGE STRONGER – GIVING BACK TO THE NATION