Embed Size (px)
Citation preview
Karlstad Business School
Handelshögskolan vid Karlstad Universitet
Agung Nugroho 860727-T890
EXPANDING PUBLIC TRANSPORT SERVICES
BY DEVELOPING NEW BUSINESS MODEL IN
MOBILE APPLICATION
A Case Study on Jakarta and Zurich
Business Administration
Master Thesis
Date Term : Spring 2013
Supervisor : Samuel Petros Sebhatu
Karlstads Universitets 651 88 Karlstad
Tfn 054-700 10 00 Fax 054-700 14 60
[email protected] www.kau.se
i
APPROVAL
ii
DECLARATION
Hereby, I declare that the work described in this thesis, except those which at legally
referred and stated in stated in references, entirely my original work and has not been
submitted as an exercise for a degree at this or any other university.
Yogyakarta, December 3th
2013
Agung Nugroho
iii
PREFACE
Firstly author would like to thank Allah SWT for His grace so that I can complete this
Master Thesis. This research is written to fulfill a part of requirement for Master of
Science degree in Civil Engineering and Environment Department, Post Graduate
Program Faculty of Engineering of Gadjah Mada University and Karlstad University.
I would like to express my warmest gratitude for my beloved family, especially for
my mother and my father. Thank you for all dedication, support, advices and love for
me. I‘ll always love both of you. Author would also like to thank Daning Wahyu
Varida who have given encouragement for finishing this thesis. For Ministry of
Education and Ministry of Transportation Indonesia, I would like to give my highest
appreciation and thankfulness for the scholarship during I studied in both country,
Indonesia and Sweden. I would say thanks very much for Lars Haglund and Samuel
Petros Sebhatu in Karlstad University Sweden, who had taught me patiently and
always give me challenges to finish this study.
My best tribute to Prof. Dr. Ir. Siti Malkhamah, M.Sc. who had given me advice and
support as supervisor in MSTT UGM and also high appreciation I give to Ir. H.
Wardhani Sartono, M.Sc. and Ir. Latif Budi Supama, M.Sc., Ph.D. as examiners of
my thesis. For my beloved friends in the same house, same class, and same university
in Karlstad University Sweden Alif, Muchlis, Arif, Tri, Ade, and Rini thank you very
much for everything that we‘ve been through in Råtorpsvagen 28. Finally author
would also like to express his gratitude to lecturers and staffs of MSTT UGM.
Any suggestion and critics from readers will be appreciated as an input to refine for
further research.
Yogyakarta, December 3th
2013
Agung Nugroho
iv
LIST OF CONTENTS
APPROVAL ................................................................................................................... i
DECLARATION .......................................................................................................... ii
PREFACE .................................................................................................................... iii
LIST OF CONTENTS ................................................................................................. iv
LIST OF FIGURE ........................................................................................................ vi
LIST OF TABLE ........................................................................................................ vii
ABSTRACT ............................................................................................................... viii
CHAPTER I .................................................................................................................. 1
INTRODUCTION ........................................................................................................ 1
A. Background .......................................................................................................... 1
B. Problem Statement ............................................................................................... 3
C. Research Objective .............................................................................................. 4
D. Limitation ............................................................................................................ 5
E. Benefit of the research ......................................................................................... 5
F. General Outline and Thesis Structure .................................................................. 5
CHAPTER II ................................................................................................................. 7
LITERATURE REVIEW.............................................................................................. 7
A. Public Transportation........................................................................................... 7
1. Portrait of Jakarta public transport .................................................................. 8
2. Portrait of Zurich public transport ................................................................ 10
B. BRT system ....................................................................................................... 13
1. Trans Jakarta ................................................................................................. 14
2. Zurich BRT System ...................................................................................... 20
CHAPTER III ............................................................................................................. 22
THEORETICAL FRAMEWORK .............................................................................. 22
A. Value Creation ................................................................................................... 22
B. Service Innovation ............................................................................................. 29
v
C. New Business Model ......................................................................................... 32
D. Summary of theoretical framework ................................................................... 37
CHAPTER IV ............................................................................................................. 39
RESEARCH METHODOLOGY ................................................................................ 39
A. Research Question ............................................................................................. 39
B. Research Method ............................................................................................... 40
C. Collecting Data .................................................................................................. 41
D. Data Analysis ..................................................................................................... 43
CHAPTER V ............................................................................................................... 44
RESULT AND DISCUSSION ................................................................................... 44
A. The need for improving in public transport service........................................... 44
B. Assessment of value creation in the mobile device application ........................ 49
C. Applying mobile application with new business model approach .................... 50
D. The design new business model through mobile application in Trans Jakarta.. 56
E. Hypothesis Testing Result ................................................................................. 59
CHAPTER VI ............................................................................................................. 75
CONCLUSION AND RECOMMENDATION .......................................................... 75
A. Conclusion ......................................................................................................... 75
B. Recommendation ............................................................................................... 76
REFERENCES ............................................................................................................ 77
APPENDIX A ............................................................................................................. 82
vi
LIST OF FIGURE
Chapter I
Figure 1. 1 Structure of thesis ....................................................................................... 6
Chapter II
Figure 2. 1 Jakarta province area .................................................................................. 9
Figure 2. 2 Structure organizations of Trans Jakarta .................................................. 16
Chapter III
Figure 3. 1 Value creation framework (dimensions and levels) for public transit
services ........................................................................................................................ 29
Figure 3. 2 The three outcomes of strategic innovation .............................................. 32
Figure 3. 3The four pillar of a business model ........................................................... 34
Figure 3. 4 The model business Canvas ...................................................................... 37
Figure 3. 5 Schema of dimensions cumulate the creating innovation for new business
model ........................................................................................................................... 38
Chapter V
Figure 5. 1Business model canvas in mobile device application ................................ 58
Figure 5. 2The characteristics gender of respondent .................................................. 60
Figure 5. 3 The characteristics age of respondent ....................................................... 60
Figure 5. 4The characteristics educational of respondent ........................................... 61
Figure 5. 5The characteristics occupation of respondent ............................................ 61
Figure 5. 6 Response of the people about applying the most advanced technology
available ...................................................................................................................... 62
Figure 5. 7 Response of the people about computer programs that allow to tailor
things to fit their own needs ........................................................................................ 63
Figure 5. 8 Response of the people about technology makes more efficient in their
occupation ................................................................................................................... 64
Figure 5. 9 Response of the people about mobile application will improve the travel
quality (see schedule, routes, and buy ticket) ............................................................. 65
Figure 5. 10 Response of the people about mobile application enable to order ticket
more quickly................................................................................................................ 66
Figure 5. 11 Response of the people about mobile application will make travel quality
more convenient (see schedule, routes, and buy ticket) .............................................. 67
Figure 5. 12 Response of the people about mobile application will make ease to use
Trans Jakarta (see schedule, routes, and buy ticket) ................................................... 68
Figure 5. 13 Response of the people about mobile application system will useful for
passenger ..................................................................................................................... 69
vii
Figure 5. 14 Response of the people about the difficulty use mobile application to see
schedule or order ticket ............................................................................................... 70
Figure 5. 15 Response of the people about the learning how to order ticket or see
schedule using mobile application .............................................................................. 71
Figure 5. 16 Response of the people about interacting with internet and mobile phone
system is often frustrating for passenger ..................................................................... 72
Figure 5. 17 Response of the people about mobile application system will attract
more passenger to move from private vehicle to Trans Jakarta .................................. 73
LIST OF TABLE
Chapter II
Table 2. 1 Definition of Public Transport (PT) service quality attribute ...................... 7
Table 2. 2Trans Jakarta routes and corridor ................................................................ 17
Chapter III
Table 3. 1Differentiation G-D logic and S-D logic on value creation ........................ 23
Chapter IV
Table 4. 1 List of question in questioners ................................................................... 41
Table 4. 2 List of question in questioners (Continued) ............................................... 42
Chapter V
Table 5. 1 Overview of value creation in mobile device in Trans Jakarta .................. 50
viii
ABSTRACT
The problem of transportation have become the main issue in Jakarta because people
needs their trips more quickly, comfortable, cheaper, and safer. Trans Jakarta was
built with the aim is to offer the public transport service with reliable of facilities to
make passenger comfortable and safety. But after operate for 9 years this mode is not
accommodated the level of service quality expected by customer. For instance lack of
facilities, lack of information, uncertainty time, unsafety, and uncomfortable. The aim
of the research is to identify about the public transport services in Trans Jakarta that is
needed to improve (learn from success in Zurich). Besides that to understand and
analyze the applying of mobile application to be a new business model to develop
service in Trans Jakarta.
The research used qualitative research approach with multiple case study for
methodological discussion and analysis of empirical condition. The reason use
qualitative research approach because this research have possibility to examine the
operation of public transport between Trans Jakarta, Indonesia and Greater Zurich,
Switzerland. The data collection obtained from the user of Trans Jakarta who have
experience about the service provided in Trans Jakartaand publication data official of
Trans Jakarta.
The result of the study show that mobile device application will be an appropriate
solution and received by all parties related with service information in Trans Jakarta.
Because the accurate and user-friendliness service information will create new value
in the trip of passenger, Applying new business model in mobile device application
have many advantages for the people such as generate value creation (customer
engagement, self-service, customer experience, problem solving, and co-designing)
for the passenger, the result of measurement about the hypothesis scenario of
implementation new business model in mobile device application with the spreading
of questionnaires, the result shows that the most of respondent agree with the adding
new technology in Trans Jakarta to provide information and improve their quality of
travel.
Key word: mobile application, value creation, customer, new business model.
1
CHAPTER I
INTRODUCTION
A. Background
Service is an issue that needs to be addressed in order to provide a good public
transport. Because it has side effect on the process attracting more customer. In many
countries always consider the important aspect for the passenger such as safety,
comfort, and punctuality. All of these aspect as a main focus of public transport
authority to develop the new services in public transport service. Several researches
of new service development and service innovation has been done in attempt to
attract people using public transport rather than using private vehicle. Moreover, the
new concept of development service involve participation from the customer in the
service delivery process. The purpose of concept customer engagement is to build the
main set from the customer about the view of convenient, efficient, cheap, and safety
using public transport. Simultaneously, this concept would be influence people to use
public transport. Furthermore, the accelerating growth of information and
communication technologies has raised the interest for transforming traditional
business models or developing new ones that better exploit the opportunities enabled
by technological innovations (Pateli and Giaglis, 2003).
The research using case study Jakarta, because as the capital city of Indonesia. Jakarta
has magnetism for people to shift from other city. According with the data from
Ministry of Statistic Center of Indonesia in 2011 Jakarta has a number of inhabitants
as much as 9.729.523 people with the area 661,52 Km2. In period 2000-2010, the
population growth increased ten-fold when compared with the period 1990-2000.
Healthy, safety, pollution, and transportation became big issue that have to be solve at
the moment.
2
The transportation have become the main problem in Jakarta because every people
needs their trips more quickly, comfortable, cheaper and safer. However the
infrastructure, transportation facilities and information in public transport not support
to create comfort condition, thus the people prefer use private vehicle than use public
transportation. Even though using private vehicle more expensive than using public
transport, but they still use it. One of the phenomena that occur in Jakarta is the
people willing to pay for a toll roads congestion. Toll roads that is supposed to be a
freeway at high speed but a lot of car pass the toll gate resulted road space that are not
effective and not efficient. The new of government have a new idea to create
transport policy in attempt to solve the congestion such as continuing project
monorail, continuing project the MRT, implementing ERP (Electronic Road Pricing),
construct Jakarta Deep Tunnel, implementation of odd-even policy, and finishing
Trans Jakarta corridor and adding the number of buses.
The most realistic project to develop in the short term or long term in Jakarta is
improvement the facilities and service operation in Trans Jakarta. The project
expected would be reduced number of private vehicle and switch into BRT Trans
Jakarta.
The new innovation in public transport by addingaccurate information became one
factor which important to attract new user and maintain the passenger of public
transport. Because the purpose of service innovation is improve service
characteristics or service quality (Ongkittikul and Geerlings, 2006). Furthermore, the
good information was needed by customer before they decide use the public
transportation. For instance the passenger require exact time when buss will arrive,
the time table could give information about bus arrival. The passenger can calculate
how long they should wait for the bus. The information can be accessed through visit
the home page via desktop or install software in their mobile device. The information
in mobile device and website make simplicity to use public transport.
3
This thesis represent of entity in the improvement public transport with new business
model approach. Besides that this thesis also give suggestion for a new innovations
that are given beneficial for service operation public transport in Indonesia, especially
Trans Jakarta. The reason using case study from Trans Jakarta because the new local
government have commitment and ambition to provide good transport system. It is
realized by faster time to build new infrastructure and add new vehicles to increase
the carrying capacity of Trans Jakarta.
Moreover, based on successful of Zürich‘s implemented transport priority program
that provides of highly developed and integrated public transport system. Many of the
lessons can be absorbed to apply in Jakarta. In Zürich, the public took an active role
in forcing the city administration to implement transit priority more comprehensively
and more boldly than would have been possible without strong public support (Nash
and Sylvia 2001).As fundament of Zurich‘s transport policy the mobility strategy can
be seen in the consideration of general public interest and requests concerning the
future, that is aimed to advance transportation links and to align different
requirements of mobility better which should be done in an economical, socially
acceptable, and environmentally sound manner (Fritsch and Gündisch, 2008).
B. Problem Statement
The main problem transportation in Jakarta is the congestion caused the high growth
of private vehicle as affect the urban transport system and the simplicity to buy new
private vehicle, especially motorcycle. This condition is resulted the increasing
number of private vehicle in the road. Come up from this situation, in 2001 the
government of Jakarta have idea to build a BRT system. The BRT system expected
became one solution to solve the problem transportation in Jakarta. Based on Sebathu
et.al (2010) propose the definition of public transport as one of strategy that can be
4
applied in developing country, like Indonesia, because the system giving
opportunities to increase mobility, improve life quality, and fulfill customer needs
through reduce the number of private vehicle and reduce the traffic congestion.
Since 2004, Trans Jakarta represents the first BRT system which has special line for
the buses, shelter with the high level of boarding platforms and pre-paid ticket. The
BRT hopefully can solve the congestion. Trans Jakarta has been in operation for 9
years but this modes is not accommodated the level of service quality expected by
customer. For instance lack of facilities, lack of information, uncertainty time, and the
price is not adequate with the convenient, misbehavior of driver, and the bad
condition of vehicle. But, the most of problem is reliability (queuing time for ticket,
waiting time for the bus, arrival and departure, real time schedule and information
availability) that became a consideration for passenger to use private vehicle as
modes of transport. Because they argue that privates vehicle offer the beneficial for
daily activities, such as faster, more safety, more prestigious, more flexible, and more
private.
C. Research Objective
The objectives of this thesis are:
1. To identify about the public transport services in Trans Jakarta that is needed to
improve (learn from success in Zurich).
2. To understand and analyze the applying of mobile application to be a new
business model for Trans Jakarta system.
3. To develop the concept of new business model in mobile application in order to
improve service for the passenger
4. To give recommendation for the Public Transport Authority about the design new
business model through mobile application in Trans Jakarta has opportunities to
optimize the facilities for the customer when using public transport.
5
D. Limitation
The researcher use the limitation study to set limits of problem on the things that be
studied and stay focus on this topic of research. The other things that not related with
the topic would not be included and not discussed/analyzed. This study will focus on
service in Trans Jakarta, especially how to deliver information for passenger through
mobile device application. In this case study, discussing about construct new business
model in the implementation mobile device application and use case of Greater
Zurich, Switzerland as study comparison. The data of research obtained from
questioner, literature study and data from the source in Jakarta related with the topic.
The comparison study from Greater Zurich public transport taken from the previous
studies and literature review.
E. Benefit of the research
This research is expected could provide advantage such:
1. To give introduction about New business model ―Canvas‖, as a method to
develop the service, that can be used for education purpose.
2. To improve knowledge and understanding about service and market orientation of
public transportation through new business model approach in mobile application.
3. The result that has been obtained could be used as input in the process planning
and creating of good public transportation system on the future.
F. General Outline and Thesis Structure
This thesis has contains introduction, theoretical framework, empirical study,
analysis, and conclusion and future research.
Chapter I, this chapter consists of background, problem statement, and objective of
research, benefit of research and general outline and thesis structure.
6
Chapter II, Literature review. Present the result of previous research that relevant
with the issues being developed by researcher
Chapter III, Theoretical frame work. Presents: literature review which are relevant as
base of the analysis.
Chapter IV, Research methodology. Present the methodology that used to solve the
problem in the research.
Chapter V, Result and Discussion, present the analysis base on theoretical frame
work compared with the problem occurred.
Chapter VI, Conclusion and Recommendation, present the answering and all the
research questions and some recommendation for future researcher.
Figure 1. 1 Structure of thesis
INTRODUCTION
LITERATURE REVIEW
THEORETICAL FRAMEWORK
RESEARCH METHODOLOGY
EMPIRICAL STUDY
ANALYSIS
CONCLUSION & RECOMMENDATION
TRANS JAKARTA Greater Zurich
7
CHAPTER II
LITERATURE REVIEW
A. Public Transportation
According with author Tran and Kleiner (2005) define that public transportation is
various mode of transport which provides continuing general or special transportation
to the public, excluding school busses, charter, and sightseeing service. For instance:
monorail, subway, buses, railway, mass rapid transit, trolleys and ferryboats. In
addition, public transport is recognized as a key component in the management and
planning of urban regions. It means that the people can be efficiently move
throughout a region with the least amount of impact on the environment.
Although private vehicle offers more comfort, safety, flexible, and easy to movement
(Murray, 2001). Meanwhile, based on Redman et al. (2013) proposed a several
attribute to define public transport quality is presented below (Table 2.1).
Table 2. 1 Definition of Public Transport (PT) service quality attribute
Source: Redman et al. (2013),”Quality attributes of public transport that attract car
users” Transport Policy 25 (2013) 119–127
Public transport has many advantages for the people. Besides that public transport
give benefits for society as a whole such as improves the quality of social and
economy in communities across the city or country by providing safe, convenient,
effective, cheap, efficient and economical transportation (Tran, T. and Kleiner, B.
8
2005). Moreover the goal of developed an efficient and easily available public
transportation service by government in several country is to improve road capacity
and reduce environmental problems (Andreassen, T., 1995). To achieve the better
public transport service has a requirement, such as:
a. more effective price structures
b. enhanced travel comfort
c. better suitability and convenience of service quality
d. reductions in travel time efficiency
e. increased service access
1. Portrait of Jakarta public transport
Jakarta, the capital of Indonesia, is located between 106 22‘ 42" - 106 58‘ 18" east
longitude and 5 19‘ 12" - 6 23‘ 54" south longitude. Jakarta province bounded by
areas such as, Java Sea in the northern boundary, Bekasi district in the eastern
boundary, Bogor district in the southern boundary and Tangerang in the western
boundary with the occupies an 650 square kilometers consisting of five city (North
Jakarta, East Jakarta, South Jakarta, West Jakarta and Central Jakarta) and one district
(Thousand Island/Kepulauan seribu); inhabited by 9.729.523 people in 2011 and
during the day, the population increases by around 2 million people commuters to
working in several public company or private company in Jakarta. Their come from
surrounding Jakarta, Bogor, Depok, Tangerang, and Bekasi, or called
JABODETABEK.
9
Source: Jakarta Statistical Yearbook 2012
Source: petajawa.blogspot.com; access: April 2013
Figure 2. 1 Jakarta province area
Based on Dishubkominfo Jakarta (2011), describe that the condition unbalance
between supply and demand occur in Jakarta. As a result, waste of vehicle operating
cost amounted to 45.2 trillion/years (waste of energy/fuel operational, time value,
pollution and economic value). From the supply perspective: Total length road
network in Jakarta 6.549 km or 42.3 km square (road ratio 6.4% from the total area of
DKI Jakarta). The average growth of road length is 0.01%/year. While from the
demand perspective, divide into three aspect that influenced such as travel need,
motor vehicle and modal share. Average daily trip people in Jakarta is for about 21.9
Million Trips/day where 70% (± 15.3 million trips use motorized vehicle). In 2011,
Number of motor vehicles ± 7.98 Million units (private vehicle: 7.89 Million (98.9%)
and public transport: 88.422 (1.1%) and the average growth last 5 years (2007-2011):
± 8.1% per-year. From the aspect modal share, Private vehicle 98.9%, serve 44% of
travel and public transport is only serve 1.1 % have to serve 56% travel (of which 3%
10
are served by KA/KRL Jabodetabek). This condition has consequences traffic
congestion in the road, because the use of road capacity is not effective and efficient.
Moreover the growth of private vehicle uncontrolled and the improvement of service
public transport not adequate.
The government of Jakarta have program to develop transportation in Jakarta, the
program called Macro Transportation Scheme (PTM) where the program divide into
three main program: (a) mass public transport (BRT/Bus way and MRT/subway or
train), traffic restriction (motor vehicle restriction, Road pricing/ERP, and perking
management), and road network capacity (Intersection /Junction Performance
(through intelligent transport system/ITS, road widening, new road development, and
pedestrian/bicycle line). This research focuses on development of public
transportation in Jakarta, especially Trans Jakarta. Because the program developed in
step by step according to Master Plan to achieve good system and management of a
public transportation in Jakarta and to overcome congestion that occurred for years.
2. Portrait of Zurich public transport
a. Background of integrated transport system
Today, Zürich is one of the most livable cities in the world, and one reason is the
high quality of its transit system. The transit system is efficient and extremely
attractive to passengers. It is possible to travel easily and quickly throughout the
city and region using transit. Zürich created its excellent transit system by
implementing a comprehensive transit priority program designed to speed up
transit and increase its efficiency throughout the transit network (Nash and
Sylvia, 2001).
Indeed the city of Zurich has plans for build tram network to run at a dedicated
lower level through the heart of the city in 1962, but most of the habitants in
Zurich rejected this plans in 1973, the policymaker resubmit the proposal about
11
replacement the city trams with underground railway system called 'metro'
system and the proposal was twice declined by the population. However, in
1980s the most of people feel uncomfortable with the condition of the city,
because congestion in an around of city due to the increasing private vehicle in
the road. in this condition raise awareness to change paradigm about the private
vehicle that have increasing burden on the environment condition replaced with
public transport which have environment friendliness. In 1981, the policymakers
proposed the proposal to build a regional railway system with wider networking
to sub urban and rural area. Different with the proposal before, this time the
project was approved by the citizen (see ZVV).
The transit priority improvement has an impact on the on public transport. In
1988, the government establish transport organization incorporated called ZVV
(Zürcher Verkehrsverbund), which the most of voter approve the project. Zurich
have simple idea about integrated transport system that has not yet been copied in
others city in Switzerland. The individual transport operators have authority to
manage system of fares and boundaries territory, but the system still as part of
whole transport system. The change of radically system from entrepreneurial
autonomy shifted to improve of customer friendliness (see ZVV).
The changes of the public transport of the city of Zurich show the increasing the
number of passenger. Between 1984 and 2002 the number of passengers
increased from 209 to 282 million per year (+35%). For instance, the first years
of suburban railroad network service operated the number of passengers on the
network lines grown by 24%. The growing was increased continuous and
reached 87% in 2003. In 2002, 322'000 people were entering the city daily for
work or other reasons. 240'000 of them did it by train, using the suburban
railroad network (74%). In the town of Zurich every fifth person with a driving
license owns no car (22%) and only 62% of the persons with driving license has
12
an own car that he can use at any time (the remaining 16% can use the car of a
relative or friend after arrangement) Analyzing the daily average distance per
person in the city of Zurich the good positioning of the public transport can be
read. In average each person over 6 years old in the city of Zurich make 3,3 km
(10.5%) on foot or by bicycle, 17,2km (54.6%) by motor vehicle and 10,3km
using the public transport (32,7%). This is a very good value compared with the
Swiss average of 17.7% public (Nash, 2007).
b. Policy and strategy concerning public transport
Based on Fritsch and Gündisch (2008) state that the policymakers within the
public transport of Zurich can be divided into three super ordinate institutions –
Confederation of Switzerland, Canton of Zurich, and City of Zurich – and three
other main actors: Zürcher Verkehrsverbund (ZVV), Verkehrsbetriebe Zürich
(VBZ), and Schweizerische Bundesbahn (SBB). The superior institutions have
political power which purports the main direction public transport is thought to
follow. This means the Confederation of Switzerland defines the higher-ranking
general conditions for public transport. Namely, that public transport should
become organized in a sustainable manner. The next lower resident level within
the political environment namely the Canton of Zurich works these general
conditions more detailed out and establishes a cantonal concept regarding the
entire traffic system (equivalent to Gesamtverkehrskonzept).The concept of
Canton of Zurich is to refines the general conditions of the Confederation of
Switzerland by integrating public transport into all aspects which are concerned
by it (e.g. settlement, landscape etc.) and regulating financing of public transport.
The City of Zurich have effort to achieve mobility strategy the generation of a
―mobility culture‖ – a culture within which all traffic participants develop a new
awareness concerning urban mobility includes advantages and disadvantages.
13
The ZVV is constitute public transport authority that supervise eight of
companies, ten small and medium-sized licensed transport operators, and a
number of carriers working on a contractual basis joined. For the public transport
network of Greater Zurich both of VBZ and SBB have the most important market
responsible transportation companies. VBZ have responsibility to manage the
public transport in the city area of Zurich and movement of others vehicle which
runs besides the tram and bus lines. While SBB have different responsibility than
VBZ, the function of SBB is to handle the whole suburban railway network
(Fritsch and Gündisch 2008).
B. BRT system
Based on Levinson et.al. (2003) define that Bus Rapid Transit (BRT) as an integrated
system of facilities, services, and amenities that collectively improves the speed,
reliability, and identity of bus transit. The term of BRT also applied to describe a
rubber-tire transit lines that use many different combinations of techniques to
improve bus service, such as bus-only lanes and roads, pre-boarding fare collection,
transit priority at traffic signals, stylish vehicles with extra doors, bus stops that are
more like light rail stations, and high frequency service (Niles and Jerram, 2010).
The purpose of Bus Rapid Transit (BRT) is to combine the flexibility and low
implementation cost of bus service with the comfort, efficiency, cost-effectiveness,
land use influence and versatility of light rail transit (LRT) (Leal and Bertini, 2003).
Component or feature of BRT system includes the following characteristic:
a. Exclusive right of way
b. Rapid boarding and alighting
c. Clean, secure, and comfortable stations and terminals
d. Fast and efficient far collection, including fare less zones, collection at stations or
on board vehicles
14
e. Effective regulations for bus operators
f. Use of Intelligent Transportation Systems
g. Transit priority at signalized intersections
h. Integration with other modes of transportation
i. Adequate marketing
j. Good customer service
1. Trans Jakarta
a. Organization of Trans Jakarta
Trans Jakarta Bus way, constitute the first of full Bus Rapid Transit system in
region Asia was launched to public of Jakarta for first time on 15th January 2004
with trial operation for two week where every people can be tried to use Trans
Jakarta for free. Whereas, the commercial operation was started on 1st February
2004. Trans Jakarta has a vision ―Bus way as public transport is capable of
delivering public services fast, safe, comfortable, humanity, efficient, culturally
and internationally‖. Besides that, they has a mission, they are:
1. Improving the quality of life for service users and the public Trans
Jakarta system in general Jakarta;
2. Providing public transport services that are safe, convenient and affordable
in Jakarta;
3. Optimize the efficient public transport services in terms of cost and
investment, so it can take place continuously and sustainable in the long
term;
4. Streamline the time of the service users and the general public, with reduced
travel time;
5. Reduce air pollution and maintain a healthy environment in Jakarta;
6. Providing good quality services, taking into account the safety and comfort
of service users;
7. Ensuring affordable rates for service users;
15
8. Increasing use Trans Jakarta Bus way system as possible for the
community;
9. Making Trans Jakarta Bus way BLUD Trans Jakarta Bus way System as
a manager of a professional, competent, and independent from the
economic;
10. Encouraging job creation as possible for the community through
various agencies and companies associated with the Trans Jakarta Busway
Systems, and;
11. Encourage a culture change in the public transport that appreciate the quality
of life, time efficiency and equity.
Trans Jakarta system consists of adequate infrastructure (special line and level
boarding platform), operating systems and effective control of the bus, a
computerized ticketing system (pre-paid ticketing), a reliable security systems
(installing cam inside the shelter) and trained staff. The design Trans Jakarta
system development and management provided by the Regional Government of
DKI Jakarta. Structure organizations of Trans Jakarta which contribute for
managing services of Trans Jakarta presented below in Figure 2.2.
16
Figure 2. 2 Structure organizations of Trans Jakarta
Source: http://www.transjakarta.co.id; accessed: April 2013
Trans Jakarta Busway management or called Badan layanan Umum (BLU) Trans
Jakarta Busway have cooperation with several private company to support and
carry out the program of Trans Jakarta. System operational and administrative
service of Trans Jakarta Busway that served by the operator carried out based on
the contract. The following names bus operator who serve in the corridors,
namely: PT. Exspress Trans Jakarta, PT. Trans Batavia, PT. Jakarta Trans
Metropolitan, PT. Jakarta Mega Trans, PT. Perdanaraya Primajasa Utama, PT.
Eka Sari Lorena Transport, PT Bianglala Metropolitan, PT Trans Mayapada
Busway and PT Perum Damri.
b. Operational of Trans Jakarta
The purpose of implementation of new public transport system with establishes a
full system for the bus passenger is to solve the traffic congestion problem in
Jakarta. The local government believes that this effort would be make change to
be better transportation service for people in Jakarta. The system designed with
special bus lane (Busway) with separator block to restrict others vehicles
17
attacking the bus line. But the reality others vehicles like motor cycle or mini
buses passing the bus line to overtake another vehicle. This situation resulted the
departure of Trans Jakarta be disturbed and have consequences arrival time of
buses cannot predictable in each shelter. It is contradict with the preliminary
purpose of special bus line that allow travel time of busses with the reliability
and time efficient with expectations attract more people using Trans Jakarta and
more from private vehicle into public transport. At this time Trans Jakarta
operate 12 corridor serves area surrounding Jakarta and planned the development
until 15 corridors (appendix A). Those corridor are presented below Table 2.2.
Table 2. 2Trans Jakarta routes and corridor
No Corridor Route
1 Corridor 1 Blok M - Kota
2 Corridor 2 Pulo Gadung - Harmoni
3 Corridor 3 Kalideres - Harmoni
4 Corridor 4 Pulo Gadung - Dukuh Atas 2
5 Corridor 5 Ancol - Kampung Melayu
6 Corridor 6 Ragunan - Dukuh Atas 2
7 Corridor 7 Kampung Melayu - Kampung Rambutan
8 Corridor 8 Lebak Bulus - Harmoni
9 Corridor 9 Pluit - Pinang Ranti
10 Corridor 10 Tanjung Priuk - Cililitan
11 Corridor 11 Kampung Melayu - Wali Kota Jakarta Timur
12 Corridor 12 Pluit - Tanjung Priuk
13 Corridor 13 Blok M - Pondok Kelapa
14 Corridor 14 Manggarai- Unerversity of Indonesia
15 Corridor 15 Ciledug - Blok M
Source: www.transjakarta.co.id, accessed: April 2013
18
Trans Jakarta bus shelter is designed with elevated level boarding platform. The
purpose of elevated level boarding platform is to restrict the buses stopping in the
along the bus lane except in shelter of Trans Jakarta. Beside that separated door
for entrance and exit (both of them provided stair and ramp in each door). In
some shelter have been installed with escalator, the purpose of escalator is to
make easier passenger when they past the pedestrian bridge. For disabilities
people also installed special line to guide toward the door that has been provided.
But the facilities for disabilities people just available in several shelter, especially
in corridor 11 and 12. To monitor activities passenger, in some shelter installed
CCTV or camera. The advantages of the facilities camera inside the shelter, from
the operator perspective could be reduce criminality and to evaluate performance
of arrival and departure of bus. From the passenger perspective, the facilities give
choices for people to go the empty shelter by accessing the real condition (via
internet) inside the shelter before they use Trans Jakarta.
Trans Jakarta operates normally day starting at 05.00 in the morning until 22.00
in the night and the government have planned to operated 24 hours started in
2014. Currently, Trans Jakarta has 524 number of bus operated in 12 corridor.
There are two type of bus used in Trans Jakarta: first, big size buses with
capacity 85 passenger and the last, articulated bus or double deck bus with the
capacity 160 passenger. The vehicle designed more comfortable and modern with
the facilities air conditioner, automatic door, safety equipment, electrical board
message information and emergency exit. In addition, each busses connected
with the radio transceiver so the driver have opportunities to deliver and receive
information regarding traffic condition.
The applicable payment ticket in Trans Jakarta divide into three type can be used
by passenger, such as, one-way ticket (direct purchase in shelter), subscription
ticket, and e-ticketing (cooperation with Bank Mandiri, Bank BRI, Bank BNI,
19
Bank BCA, and Bank DKI). The passenger gets advantages that would change
direction or move to another destination without pay any more as long as they
stay inside the shelter.
The number of passenger Trans Jakarta has increased almost in every years. But
the total in 2012 has decrease whereas the government built new corridors in that
year. According data recorded from management of Trans Jakarta until 2012 in
2004 the number of passengers reached 14,924,423 passengers (from 1 corridor),
in 2005 total 20,798,196 passengers (1 corridor), in 2006 total 38,828,039
passengers (3 corridors), in 2007 increased to 61,439,961 passengers (7
corridors), in 2008 rose became 74,619,995 passengers (7 corridors), in 2009
reached 78,143,224 passenger (7 corridors), in 2010 climbed 84,719,616
passenger (8 corridors), in 2011 increased 114,769,431 passenger (10 corridors),
and in 2012 declined 109,983,609 (11 corridors). The phenomena decrease
number of passenger caused by several factor, especially related with service not
available in Trans Jakarta. For instance: queuing time for ticket, time for arrival
and departure bus, waiting time for bus, bus capacity, service information for
passenger and etc.
From this condition, the main focus on the research is how to deliver information
for passenger through mobile device application to make better public
transportation in Trans Jakarta. The passenger needs availability information that
makes passenger comfort and enjoy in the journey using public transport. The
reason using topic of research mobile application as new business model in Trans
Jakarta because 96 % people in Jakarta using cellular phone and 30 % people
have desktop/notebook (BPS, 2012).
In Jakarta, already the implemented technology information in the system of
Trans Jakarta, for example installing global positioning system inside the bus
20
connected with the central station. The program called BTS or bus tracking
system. Currently the system already installed in three corridor of Trans Jakarta.
The goal of the development is to give information about the schedule arrival of
the buses on the digital display on the bus stop. This is where the passengers are
given the assurance of arrival time. Periodically (every 5 seconds) the data from
each GPS is sent to the central control room through the internet network. The
real time data also broadcast simultaneously on a regular basis to certain Buses
Shelter (the next shelter). The concept of system in the bus tracking system is
almost the same with the concept sending data in the mobile device application.
It means mobile device application have opportunity to develop in Trans Jakarta.
2. Zurich BRT System
Transit service in Zurich operates normally on a frequent basis throughout day with
limited night bus service operating on weekend. Start at 7 A.M. in the morning until
about midnight with headway every 7 to 8 minutes on 7 A.M until 8 A.M., and after
that approximately every 12 minutes. Zurich has many streets that have several transit
lines with the affectivity of frequency vehicle operates to reduce operating cost and
increase revenue (Nash and Sylvia, 2001). Base on Nash (2007) explain several key
consideration for increasing ridership and reducing cost, such as:
a. Minimize travel time; the implementation of public transport system or bus rapid
transit is a good strategy to reduce the cost of operation. Due to customer prefer
to use public transport, significantly increasing system efficiency.
b. Provide High Quality Public Transport Service; to attract more customers that
require high quality service in public transport for instance reliable, safe,
comfortable, fast, frequent, cheap, and goes where you want to go.
c. Coordinate Public Transport Services; generally, public transport offered service
in whole of city that customer have possibility to move from one location to
other, either directly or through transfer. Public transport routes designed with
consideration geographically, temporally and with a common ticketing scheme.
21
Customers would be attracted to use the service if the public transport has
coordinated in each route.
d. Introduce Disincentives for Private Automobile Use; to improve the number of
people use public transport by providing the highest quality of public transport
and disincentives for private automobile use through tax of congestion, roadway
tolls, parking restrictions, and parking charges.
In Zurich, technology information is already implemented in 1980s through
automatic location system (today‘s called GPS). The buses and trams installed control
panel display; the function is to help the driver in the maintaining of schedule.
Transport planners have program regularly to analyze the tram bus schedule data for
identifying systematic delays or unreliability on routes. If the process met some
problems, the transport planner immediately identify to determine the problem cause
and to identify solutions. If the trams or buses get any delays and problems, the real
time schedule directly make announcements to passengers and server have planned
pre-defined detours for all routes and scripts to read in announcing detours delays
(Nash 2007).
In addition, the passenger can access the information about time table and buying
ticket from their mobile phone. Mobile application is suitable with the needs of public
transport users in Zurich, Switzerland. Because with the mobile application enable to
navigate directly to chosen destination. It also can choose the time table for the
travelling with public transport.
22
CHAPTER III
THEORETICAL FRAMEWORK
A. Value Creation
In Good Dominant logic (G-D logic), value is created (manufactured) by the firm and
distributed in the market, usually through ex-change of goods and money. From this
perspective the roles of ‗‗producers‘‘ and ‗‗consumers‘‘ are distinct, and value
creation is often thought of as a series of activities performed by the firm (Vargo et al.
2008). The firm should set all decision variables at a level that enables it to maximize
the profit from the sale of output (Vargo and Lusch 2004) which acquire value during
the design and manufacturing process. Ideally, in G-D logic, this output is tangible,
produced away (separate) from the interference of customers, standardizable, and
capable of being inventoried until sold, all to enable maximum efficiency in
operations (Vargo and Akaka 2009).
S-D logic establishes the primacy of operant resources (those that act upon other
resources to create benefit), such as competences, over operand resources (those
resources which must be acted on to be beneficial), such as natural resources,
goods, and money (Vargo and Lusch 2004 in Vargo and Akaka 2009). That is,
operant resources, such as knowledge and skills, are the underlying source of value.
In addition, S-D logic argues that value-creating resources are not confined to the
firm; customers, suppliers, and other stakeholders also constitute operant resources
and contribute to value creation (Vargo and Akaka 2009).
According to author Vargo & Lusch (2008) distinguished between G-D logic and S-D
logic in business relationships. G-D logic is essentially based on the traditional view
that business transactions involve the value that is embedded in units of output
23
(usually manufactured goods) through the use of the so-called operand resources
(tangible physical resources). In contrast, S-D logic is primarily concerned with the
value that is co-created with customers during service interactions through the use
of the so-called operant resources (knowledge and skills). The overview of the
major differences between G-D logic and S-D logic related to value and value
creation presented in below (Table 3.1).
Table 3. 1Differentiation G-D logic and S-D logic on value creation
Source: Vargo et al. (2008) ―On value and value co-creation: A service systems and
service logic perspective”.
Based on Gebauer et al. (2010), explain that value creation into four similar term such
as (a) ‗prosumption‘, The role of a customer changes from that of a pure consumer to
become a ‗prosumer‘ by effectively participating in the value-production process, (b)
‗servuction‘, the term captures the notion that clients can by highly involved in the
process of service production, (c) ‗co-production‘, the customer being active and
learn how to use, maintain, repair and adapt with the product or service for their
better of life, and (d) ‗co-creation‘, the rudimentary precept that the involvement of
both the customer and the producer is required to create value.
24
In the case of public transport services, based on Enquist et al. (2010), define five
dimension related with level and attribute to describe value creation.
1. Customer engagement
Based on Van Doorn et al. (2010) define customer engagement as a customer‘s
behavioral manifestations that have a brand or firm focus, beyond purchase, resulting
from motivational drivers, in this case behavioral manifestations can be both positive
(i.e., posting a positive brand message on a blog)and negative (i.e., organizing public
actions against a firm). For instance, customer give the feedback and writing some
report of their experience during purchase and use the product or service in the
internet site (blog or website) or in customer magazine. Moreover customer
engagement implies the co-creation with the brands of the firm, where customers not
only emotional attached to specific marketing activities, but also asses the brands
from the general perspectives (Enquist et al. 2010).
In the public transport services, customer engagement applied in attempt to improve
service quality in public transport. For example, passenger writes complaint toward
service provided in public transport. Besides that passenger also can write down their
experience and expectation in internet site or send message to Public Transport
Authority. The complaint data can be used to consideration the improvement of
quality service in the future.
2. Self service
Self-service as part of value creation has outcome from developing technologically-
innovation for customer that enable customers to produce a service independent of
direct service employee involvement (Meuter et al. 2000). In addition, the primary
type of self-service divides into four types: telephone & interactive voice response
(IVR) systems, interactive freestanding kiosks, internet based or other on-line
connection systems and video/DVD/CD based technologies. Based on Dabholkar
25
(1996) there are five attributes of service delivery are important to potential
customers of technology-based self-service options:
a. Speed of delivery; interpreted as the time taken for active delivery of the service
and waiting time.
b. Ease of use; expected ease of using the technology based self-service option will
have a positive effect on expected service quality.
c. Reliability; the outcome of reliability and accuracy would be relevant for
evaluating technology-based self-service options and decrease several concern
from the customers about the performance risk of new service delivery that may
not work well.
d. Enjoyment; with the technology-based self-service options, the customers could
be enjoy (arising intrinsically from interacting with such options or from the
novelty aspect) to be important to customers in evaluating such options.
e. Control; is likely to be quite relevant for evaluating technology-based self-service
options, given that it is a factor intrinsically important to most people, because by
increasing expected control, the expected value of the service to the customer
would be enhanced.
In public transport service, offering several type of self-service opportunities such as
electronic ticket with freestanding kiosk, ticket purchasing and information schedule
or route service through mobile phone or internet access. The self-service not force
passenger to use the facilities but rather the customer have several service options that
they can apply more ease to use and low of performance risk. Moreover self-service
not only for buying ticket or looking information service, but also in the operation of
public transport emphasizing for passenger with the self-service. For instance, the
passenger confronted with the awareness about keep the cleanliness or throw out the
trash, paying the ticket and self-controlling mechanism toward facilities inside the
bus.
26
3. Customer experience
Based on Meyer and Schwager (2007), define Customer experience as the internal
and subjective response customers have to any direct or indirect contact with a
company, direct contact generally occurs in the course of purchase, use, and service
and is usually initiated by the customer, whereas Indirect contact most often involves
unplanned encounters with representations of a company‘s products, services, or
brands and takes the form of word-of-mouth recommendations or criticisms,
advertising, news reports, reviews, and so forth. There are six laws of customer
experience use to fundamental truths about how customer experience operates by
Temkin (2008): (i) every interaction creates a personal reaction, (ii) people are
instinctively self-centered, (iii) customer familiarity breeds alignment, (iv) unengaged
employees don't create engaged customers, (v) employees do what is measured,
incented, and celebrated, and (vi) you can't fake it. The 6 laws of customer experience
are not meant to constrain behaviors, but emphasized to empower highly effective
customer experience efforts by understanding these fundamental truths about how
people and organizations behave, companies can make smarter decisions about what
they do, and how they do it.
According Enquist et al. (2010), define that customer experience starts with an
integrated public and individual transport network, where the public transport service
integration involves different means of public transport (buses, trams, subways or
trains), time schedules, ticket offering and geographical aspect (local, regional,
national and international), while the integration of individual means of public
transport refers to park and drive services, car sharing, bike and ride and so on.
4. Problem solving
Self-service offered by service provider have opportunities to give assistance to
customers who are seeking to solve problems for themselves. For instance, problem-
27
solving customers navigate their way through web sites, internet-based
communities, and answers to frequently asked questions (Prahalad, 2004 cited in
Enquist et al. 2010). There are two value creation opportunities that emerge around
problem solving; first, problem solving can imply that public transit companies
offer customers the opportunity to navigate autonomously through information
services and to solve problems themselves and On the other hand, instead of
leaving customers to themselves in solving the problems, companies can take
over responsibilities for solving the problem by Enquist et al. (2010). But
engagement of service provider in process solving the problem have different
perspective, they argue that the interactions with customer will be done when the
provider has created the problems and failures, but reduce the interactions when the
problems are attributable to customer failures (Gebaeur et al. 2010). The dependence
on customer‘s skills will lead to a situation where customer becomes an operant
resource that produces strong effect on output of the problem solving (Constantin and
Lusch, 1994 cited in Enquist et al. 2010).
In case of public transport, installing camera inside the shelter became solving
problem, to decrease number of crime that occurred in the public transport. Moreover,
applying mobile device application as instrument to pay ticket or search information
about time schedule and maps are positive improvement to solving passenger
problem.
5. Co-designing
The importance of customers‘ participation through process co-design and creation of
the core values package must be emphasized, because the participation have
opportunities exist to break away from traditional concepts in travel services (and
in most other co-creation contexts) by allowing customers to build and co-design
their own package of elements including: locations to be visited, time spent at each
location, classes of travel used, facilities required, payment terms, etc (Payne et al.
28
2008). In addition, based on Sebhatu et al. (2010) argue that Co-design implies either
to use customer‘s better align services and customer needs during the market
introduction, or involving customer already in the creation of new service ideas. Co-
designing represents more than a transfer of creative work from the provider to the
customer; rather, it effectively represents a transfer of risk–because the outcome
depends a great deal on the customer‘s skills and knowledge by Gebauer et al. (2010).
In public transport service, customer is involving in the process of creation new
service through interview, questioner, or observation toward customer to obtain the
input data for improvement in the service of public transport. Moreover, customer has
opportunities to write report or complaint in website or newspapers about the
experience using public transport. The report or complaint is a manifest of customer
expectation within service provision in public transport.
Based on Enquist et al. (2010) the conceptual model of five activities value creation
(customer engagement, self-service, customers experience, problem-solving and co-
designing) in public transport illustrated in Figure 3.1.
29
Figure 3. 1 Value creation framework (dimensions and levels) for public transit
services
Source: Enquist et al. 2010, pp. 17, ―Value creation in public transit services‖.
Figure 3.1 can be seen that the radar plot contains the five dimensions for value
creation opportunities. The dimensions cumulate the value creation levels. Value
creation an opportunity on customer engagement start with communicating and
benefits and continues until an open dialogue on risks. Self-service opportunities
occur initially in buying and paying tickets and carry on to using public transit
services. Value creating in the context of customer experiences sets off with
integrating different means of public transport. It continues with integrating
individual mobility within public transit services. It ends with supplementary
services, which create new value opportunities beyond the public transit services.
Problem solving starts with value opportunities arising around customers solving
problems themselves and ends with companies taking-over the responsibilities for
solving customer problems. Co-design captures starts with integrating customers in
the market introduction and continues with integrating customers in the idea
generation. The levels in the radar plot imply that the degree of value creation
opportunities increases by moving from the inner to the outer positions (Enquist et al.
2010).
B. Service Innovation
Based on Ongkittikul and Geerlings (2006), illustrated the relationship between
innovation and regulatory change into two pattern, first the pattern of development
where regulatory change leads to innovation (e.g. the use of mini-van (technological
innovation) or Multinational operator (organizational innovation) and second,
innovation leads to a change in regulation (e.g. Unleaded gasoline (technological
innovation) or Low-floor buses (technological innovation)).According to the authors
(Gadrey et al. 1995; cited in Pateli, 2011, p.2) propose the description; ―to produce a
30
service […] is to place a bundle of capabilities and competences (human,
technological, organizational) at the disposal of a client and to organize a solution,
which may be given to varying degrees of precision‖. Gallouj and Weinstein (1997)
are identified Innovation in services into six different types of innovation, named:
1. Radical innovation, the innovation of a totally new product, i.e. one defined in
terms of a system of characteristics and competences unconnected with those of
an old product.
2. Improvement innovation, the innovation consists simply of improving certain
characteristics, without any change to the structure of the system.
3. Incremental innovation (innovation by substitution or addition of
characteristics), the general structure of the system remains the same, but the
system is changedmarginally through the addition of new elements and/or
through the substitution of elements.
4. Ad Hoc innovation, the interactive (social) construction of a solution to a
particular problem posed by a given customer.
5. Recombinative innovation, Innovation of this kind exploits the possibilities
opened up by new combinations of various final and technical characteristics,
derived from an established stock of knowledge and a given technological
trajectory.
6. Formalisation innovation, This model consists of putting service characteristics
‗into order‘, specifying them, making them less hazy, making them
concrete, giving them a shape.
The type of innovation concept should be understood because can be used to analyze
the impact of the specific innovation in public transport service. Besides that several
of innovation concepts can be used to define the service development process in the
operation of public transport. ―The reverse product cycle consists of three phases.
First, new technology is introduced which leads to improved efficiency of the
existing service delivery process. Second, the service quality is improved. In the third
31
and last phase the process is no longer in focus but the product itself. Completely new
services are created at this stage.‖(Witell et al. 2010). Service is seldom exists outside
of them which not a given result, but an act or process‖ (Gallouj and Weinstein
1997).
However, implementation of new technology in public transport service has often
failed. This is not necessarily because of the failure of new technology but rather
because several barrier in the process development of public transport. In this case,
the technological innovation is regarded to generate a benefit for the society, but it is
difficult to manage risk or uncertainty condition. According Borins, 2002 cited in
Micheli et al. (2012), identified three main barriers to adoption of new technology.
1. Resistance to change (without competitor in the operation, public service
organization tends to focus increasing performance rather than develop new
innovation).
2. Risk aversion; in the public service organization always meet obstacles in the
process development that potentially to failures.
3. Hierarchical structure; decisions that are based on seniority raises the possibility
of problems and prevent innovation.
According Schmiedgen (2011), propose that strategic innovation should usually strive
for three outcomes: 1) an increased value for the customer, which implies the need to
gain knowledge about who he is and what he values (in which context). 2) New
business models, which knows what value to create and how to profitably deliver it.
And eventually 3) the definition of new markets, being a function of answering what
is being offered to whom. To illustrate of the relation through re-definition to all
these fundamental and interdependent questions presented below (Figure 3.2)
32
Figure 3. 2 The three outcomes of strategic innovation
Source: Master Thesis ―Innovating User Value‖ by Schmiedgen, J., (2011)
Figure 3.2 presented the interdependent relation among the process create, deliver and
capture value to customer through implementation new business model with strategy
innovation approach. As service innovation is a multi-dimensional phenomenon,
which it cannot only affect the different components of value creation and
architecture, but may also spread across boundaries of the business models in a
portfolio or even across industries (Lester & Piore 2004; cited in Schmiedgen, 2011).
C. New Business Model
According Osterwelder and Pigneur (2010) define new business model as a business
model describes the rationale of how an organization creates, delivers, and captures
value. New technology and innovative business practices provide the potential for
organizational efficiency gains to support new business model (Chapman and Soosay,
2002). There are several effort from company to get the profit through improvement
in value, quality of service production and delivery, research and development cost-
33
efficiency, transaction costs, productivity, inventory, and demand management,
production lead-time reduction, reduced search costs for customers, selling process
improvement, increased customization capabilities, supply chain and relationships
improvement, and an increasingly long-term perspective of the firm, subsequently
leading to business performance. The implementation of new business model, in turn
would be influenced the changing of business environment, wider range of
stakeholders engaging in debate over industry, resource limitations and growing
emphasis on social responsibilities of firms has raised the need for business model
innovation to integrate sustainability more fully into the core of the business (Sustain
Value Report, 2012).
Based on Goldman and Gorham (2006) argue that the first emergent strategy deploys
creative new technologies and business models to provide competitive alternatives to
the private automobile, where the ‗new mobility‘ strategies foster new and more
efficient ways of moving through and interacting with the city by providing
customers with more flexible, convenient, integrated travel options and make the
better of life. Currently, most of public sector organizations cooperate with private
sector to adopt new business models that can reduce barriers of innovation, beside
that the purpose of new business model is to encourage greater emphasis on
tangible benefits and improvements for citizens and shift the balance of power to
the front line, where services are provided (Micheli et al. 2012).
According Osterwelder and Pigneur (2002), introduce the business model ontology
(BMO) that can be described through nine basic building blocks that show the logic
of how a company intends to make benefit where the nine blocks cover the four main
areas of a business: customers, owner, infrastructure, and financial viability. The
following present the four pillar of a business model (see Figure 3.3).
34
Figure 3. 3The four pillar of a business model
Source: Osterwelder and Pigneur (2002), ―An e-Business Model Ontology for
Modeling e-Business‖
From Figure 3.3: can see that product innovation cover all aspect related product,
service and manner offering by the firm that it make differentiate with competitors.
Product innovation consists of value proposition as product or service (generally
create value) from the firm offered to specific customer segment and capabilities a
firm has to be able to assure in order to deliver the value. Second, customer
relationship present feel and serve which company should be defined distribution
channel, information strategy to collect and discover new business opportunities and
increase the customer satisfaction, and build the trust through provide best service
have consequences customer loyalty and satisfaction. Third, infrastructure
management composed of activity configuration to create value that customer willing
to pay, partner network as activities configuration that all parties contribute, and
resources consist tangible (plant, equipment and cash reserves), intangible (patents,
copyrights, reputation, brands and trade secrets) and human resources. And the last,
financial present the company revenue model (ability from the firm to translate
benefit from the customer to generate incoming revenue streams), cost structure (all
the cost in order to process production until deliver value to customer), and profit
model (benefit the firms gained which represent the difference between revenue
model and cost structure).
35
The four pillar of business model developed became new business model canvas
presented in book ―Business Model Generation‖ by Osterwelder and Pigneur (2010).
The new business model canvas consist nine basic building block that present how
the company designed to earn a lot of money or profit. The business model canvas is
presented below (see Figure 3.4.). There are nine basic building blocks that support
the new business canvas:
1. Customer segment; present the different groups of people or organization that
would be reached and served by the firm. the reason for the division of consumer
segments is a consequence of the presence of customer needs and desire the
distinct offer/facilities, to reach the customer area should be with the different
distribution channels, different types of relationship that customer expect, the
differentiation of profit/income, and willing to pay for different aspects of the
offer.
2. Value Proposition; product or service offered by the firm that give some value or
benefit for specific customer segment. Several element could be contributed the
create value by customer: newness (e.g. new technology in mobile phone),
performance (e.g. faster car or more disk capacity storage), customization (e.g.
build the scions or Lego), ―getting the job done‖ (e.g. travel agency or public
transportation), design (e.g. fashion or building), Brands/status (e.g. BMW or
Volvo), price (e.g. low budget charier airways), Cost reduction, risk reduction,
accessibility, convenience/usability.
3. Channels; how the companies manage the communication and distribution to
reach customers segment. Several function of channels: improving awareness
among customers about a company‘s products and services, helping the company
in the evaluation of value proposition, allowing customers to purchase specific
products and services, delivering value proposition to customer, and providing
post-purchase customer support.
4. Customer relationship; the types of relationships a company establishes with
specific Customer Segments. Several categories of customer relationship:
36
personal assistance, dedicated personal assistance, self-service, automatic
services, communities, and co-creation.
5. Revenue Streams; the cash a company generates from each Customer Segment
(costs must be subtracted from revenues to create earnings). Divide into two type
of revenue streams: pre-paid transaction and post-paid transaction. Several way to
earn revenue streams: asset sale (e.g. purchasing book), usage fee (e.g. using
mobile phone), subscription fee (e.g. gym or Netflix), lending/renting/leasing
(e.g. rent DVD), licensing (e.g. plays music in radio), brokerage fee, and
advertising.
6. Key resource; the important thing (asset) that require to build business model
network (physical asset (e.g. building, vehicle, machine), intellectual (e.g. patent,
knowledge, idea, copyright), financial (e.g. fund), and human resource (e.g. team
expert, employee).
7. Key Activities; the important action or strategy should be done by company to
build business model network. Several categories of key activities: production
(e.g. design, manufacture delivery or quality control), problem solving (e.g.
consultancies), platform/network (e.g. website or blog).
8. Key partnership; build networking among stakeholders to support the business
models network. There are four type of key partnership: strategic alliances
between non-competitors, coopetition: strategic partnerships between
competitors, joint ventures to develop new businesses, buyer-supplier
relationships to assure reliable supplies. The following motivates of creating
partnership: optimization and economy of scale, reduction of risk and uncertainty,
and acquisition of particular resources and activities.
9. Cost structure; all component cost related with the operation of business model
network. There are two type of cost structure: cost driven focus on reducing cost
as long as possible and value driven (premium value proposition for example
luxury hotel with extra facilities).
37
Figure 3. 4 The model business Canvas
Source: book ―Business Model Generation‖ by Osterwelder and Pigneur (2010)
D. Summary of theoretical framework
The brief explanation of theoretical framework, about the relation among service
innovation, value creation and new business model to offering public transport
improvement can be summarized as follows,
38
Figure 3. 5 Schema of dimensions cumulate the creating innovation for new business
model
Figure 3.5 presented the interdependent among service innovation, value creation and
new business model canvas. The purpose of the strategy is to develop the service and
attract more customer market. These is development from three question (how, what
and who) in order to the process delivering of service.
Customer market
service innovation
new business model canvas
value creation
39
CHAPTER IV
RESEARCH METHODOLOGY
A. Research Question
Mobile device application in the public transport service has some advantages such
as, the passenger easy to access the maps or timetable information. Beside that the
mobile device application can improve simplicity for tackling optimization of
outstanding aspects of the management of services such as: security, access delays,
availability, demand variation, and exploitation costs reduction becauseof the fact
that expenses are shared with the clients, as they provide the devices to
support payment.
The development of public transport service like providing information through
mobile application is evolving extremely fast, buss rapid transit in Europe country
giving a lot of advantages for users who use the mobile device application. The
application system can be a smart solution in Indonesia (Trans Jakarta) to solve a
problem about providing information for passenger, especially in the mobile device
application system which promotes ease, comfortable and accuracy of information in
Trans Jakarta. Beside that the application system have a purpose to shift a private
vehicle user to public transport users and have opportunity to build new business
model in the system of Trans Jakarta public transport services. The passenger not
only needs a faster travel time but also needs the comfort, accuracy and convenience
information before using the bus rapid transit service. In the application of mobile
device application systems, there is several questions which must be answered before
the application of mobile device system through new business model are
implemented, and questions are:
a. How is the general description of the public transport service in Trans Jakarta?
40
b. Why the mobile application of new business model approach is needed to
improve the operation of Trans Jakarta (based on ―value creation‖ assessment)?
c. How is the process of building new business model through mobile application as
opportunity to develop the service in public transport especially in Trans Jakarta
BRT system?
d. Are the design new business model through mobile application in Trans Jakarta
has opportunities to optimize the facilities for the customer when using public
transport?
B. Research Method
The research used multiple case studies for methodological discussion and analysis of
empirical condition between Trans Jakarta and Zurich. The reason using multiple
case design because it give advantage in constructing a framework in which either
literal replication predicts similar results across multiple cases or it aims at theoretical
replication whereby different results are likely for theoretical reasons (Yin, 2009).
The data collection obtained from publication data official of Trans Jakarta and
database. The reason uses qualitative research approach because this research have
possibility to examine the operation of public transport between Trans Jakarta,
Indonesia and Greater Zurich, Switzerland. Although focus of discussion in this
research more present the service delivered in Trans Jakarta as main topic of
development. Beside that the objective of comparison with Zurich public transport is
to understand the phenomena using mobile device application that have opportunities
to passenger get information from their mobile, at once this phenomena could be used
as discourse to develop new business model in Trans Jakarta. The expectation from
the mobile device application is became one solution from new business model
approach to solve and give suggestion for the problem of service provision in Trans
Jakarta.
41
C. Collecting Data
Data collection method will be presented and explained in the following. Initially, the
primary sources will be explained as starting point in the process collecting data in
this research. Later on will be presented secondary sources.
1. Primary data
This thesis use observation and questioners as source of primary data. The survey
obtained from the user of Trans Jakarta who have experience about the service
provided in Trans Jakarta. The data was conducted to measure perception from the
passenger about the mobile device application as the new service system in Trans
Jakarta. Total respondent is 40 citizens who have experience using Trans Jakarta.
They divide into four characteristic of respondents such as gender, age, education,
and occupation. The list of questions will be shown in Table 4.1.
Table 4. 1 List of question in questioners
1. No Question
2. 1 3. You prefer to use the most advanced technology available
4. 2 5. You like computer programs that allow you to tailor things to fit your own needs
6. 3 7. Technology makes you more efficient in your occupation
8. 4 9. Using mobile application will improve the travel quality (see schedule, routes,
and buy ticket)
10. 5 11. Using mobile application enable to order ticket more quickly
12. 6 13. Using mobile application will make travel quality more convenient (see schedule,
routes, and buy ticket)
14. 7 15. Using mobile application will make ease to use Trans Jakarta (see schedule,
routes, and buy ticket)
16. 8 17. Overall, mobile application system will useful for you
42
Table 4. 2 List of question in questioners (Continued)
18. No Question
19. 9 20. You find difficulty use mobile application to see schedule or order ticket
21. 10 22. You feel comfort to learn how to order ticket or see schedule using mobile
application
23. 11 24. Interacting with internet and mobile phone system is often frustating for me
25. 12 26. Using mobile application system will attract more passenger to move from
private vehicle to Trans Jakarta
With the optional option are:
1. Very disagree
2. Disagree
3. Moderate
4. Agree
5. Very agree
2. Secondary data
This section concerning secondary source of data will be split into two parts. Firstly,
literature research is used to build up a theoretical framework according to new
business model in public transport. The literature review used in this research
constitute reference which were recommended to read during the first phase of this
master course. Moreover, the additional relevant literature was searched in several
data base (e.g. Business Source Primer, Science Direct, emerald, Google scholar,
etc.). In the process searching, used key words linked with public transport, bus rapid
transit, service innovation, value creation, and new business model. Later on
document research is collected to assembly information concerning service in Trans
Jakarta and Zurich. Document research is used to develop empirical study in the
master thesis. In addition, the document research gives overview the actual service in
Trans Jakarta. The first step is concerning about collecting the general information
43
about public transportation in Jakarta. Furthermore, gathering information about
strategy planning that will be implemented in Trans Jakarta and Zurich.
D. Data Analysis
According to Supranto J (2000) define that, number of the respondents (replication)
are determined using Experimental Sampling Technique. Moreover, for experimental
research with random design complete, or factorial randomized block, it can simply
be formulated as below:
(t-1) (r-1) 15
With: t = the number of treatment
r = the number of replication
The research was designed using 5 category of treatment in the questioner, thus the
number of sample size for the research according Supranto J (2000) formula is as
below:
(t-1) (r-1) 15
(5-1) (r-1) 15
(r-1) 15/4
r 4,75
Hence, the total respondent (replication) in the research is 40 people or r 4.75, it
means that the number of sample size is a valid as the number of total sample
(replication).
44
CHAPTER V
RESULT AND DISCUSSION
A. The need for improving in public transport service
Based on success of the implementation that occurred in Zurich, Switzerland, there
are several aspects to consider why the improving of public transportation in Jakarta
is not entirely successful. These aspects include:
1. Appropriate technology in public transport
It is inevitable that the public transport industry requires implementation new
technology. The development new technology in Zurich could succeed because they
concern the role of goods with service-dominant logic (SD-logic). For instance
Zurich‘s public transport already implemented service scape (the tangible of the
service) as a good to create value from a service-dominant logic. With introduction of
new mobile application involves advance technology information such as providing
timetable of departure and arrival, maps, and purchasing ticket. It was very helpful to
use public transport in Zurich. According to the author Gallouj and Weinstein (1997,
p. 547) propose the definition of radical innovation as the creation of a totally new
product, i.e. one defined in terms of a system of characteristics and competences
unconnected with those of an old product. Regarding with the statement from Gallouj
and Weinstein (1997), the implementation new technology in Zurich categorized
radical innovation because led to the idea develop mobile device application in public
transport to help passenger. This innovation is focused on providing information and
purchasing ticket to improve the service. The application is expected to attract more
passenger using public transport. Because the application gives more value for the
user and increase the service performance of public transport.
45
While in Indonesia, currently traffic congestion in an urban area (like Jakarta)
increase every years due to growth of private vehicle that unbalanced with the road
capacity. Average growth of private vehicle in Jakarta approximately 8.1 % every
years whereas average growth of road length ± 0.01 %. This situation resulted
unbalance between supply and demand for the ability of road network. The local
government already operated Trans Jakarta as public transport service to improve the
mobility people in the city. During 9 years operated, Trans Jakarta has not yet
achieves the goal of solving congestion problem in Jakarta. Lack of innovation,
safety, convenient has always been an issue which influence for people prefer using
private vehicle rather than public transport.
Learn from the success stories in other city in the world about the implementation
technological innovation to improve the efficiency and effectiveness of public
transport. The local government of Jakarta already has planned to apply technology
features in Trans Jakarta such as GPS (vehicle tracking system), install on board
CCTV, online CCTV system inside the BRT station, e-ticketing system. Expectedly,
the technology feature in Trans Jakarta that designed could be one solution for the
improvement of public transport to become more feasible.
2. Fares and financing of public transport
In the Swiss political system, the cities have to finance urban transport to a large
extent by local and cantonal taxes. Only a few years ago the Federal Government has
discovered its heart for the larger cities. It has developed an agglomeration policy.
Now, a new federal law is in preparation to give the cities more money to adapt road
and rail capacities to the growing demand (Frey, 2003).In order to the transport policy
in Zurich, the Zürcher Verkehrsverbund (ZVV) as integrated public transport system
with responsibility for the Canton of Zurich has discretion about fare structure which
could be assesses the fare based on the financing system to get all revenue from the
benefit finances transport companies or pay for the deficit finances transport
46
companies. To support the operation of transit system, the government establishes the
transit operations center. The aim is to help the city transit system became
effectiveness and efficiency (Nash and Sylvia, 2001). Whereas to improve the fare
collection system, in Zurich already implemented two system-level improvement
called proof-of-payment (self-service fare collection). This system allowed the
passengers buy ticket before entrance the vehicle and inside the vehicle, the fare
inspector checked the ticket through random sampling.
In Trans Jakarta, Indonesia, currently financed for public transport still rely on
subsidies from the government. But actually the subsidies from government have not
yet enough for public transport. Because the local government as executor has many
kind of program that require finances to implement the program (not only for finances
public transport). Besides that the position Trans Jakarta as Badan Layanan Umum
(BLU) which the management under control the Department of Transportation makes
a lot of transport policy to be slow. The concrete example of the difficulties of the
BLU status is the fact that in order to maintenance the bus station, BLU have to wait
for the approval of Parliament. Therefore the local government in Jakarta must be
willing to commit to extend the authority Trans Jakarta from BLU to Badan Usaha
Milik Daerah (BUMD) with particular of autonomy to develop public transport to be
a better.
3. Integration transport
Inherent to the organizational structure of an urban transport system are the notions of
ownership and integration: On one hand, most public transport systems have been
through different phases of owner ship since their foundation. On the other hand,
with the development of cities and wider urban areas into important economic
entities and the increase of urbanization, the integration of urban transport
services (i.e. time tables, tickets etc.) have become necessary for the provision of
reliable and attractive, in comparison to private transport modes, services
47
(Christodoulou and Finger, 2012). In line with the statement, the public transport
network of Greater Zurich will apply the ZVV traffic control and supervision system.
This system is designed to enable centrally controlled and comprehensive integration
of all means of public transport within the canton of Zurich. The purpose is to make
public transport more accessible, especially for disable people. The others conceptual
of action plans is concerning inter-modal transport and measures concerning
advancement of energy-efficient and environmentally friendly forms of mobility
(Fritsch and Gündisch 2008).
The local government develop two concept integration between Trans Jakarta and
others modes. Firstly, the implementation feeder Trans Jakarta integrated with other
transport modes as well as the centers of activity. The system already operates since
28 September 2011, with 3 route where 1 route as feeder origin (Sentra primer barat)
and the others as feeder destination (tanah abang-balai kota and SCBD/Senayan).
Secondly, the development of Angkutan Perbatasan Terintegrasi Busway TJ (APTB);
the feeder have function to provide an integrated public transport service for people
who lived around Jakarta (e.g. Bogor, Depok, Tangerang, and Bekasi) to Jakarta or
vice versa. The benefit application of direct service through feeder system (DISHUB,
2013), such as:
a. The movement from the bus stops to transfer point more easily, more flexibly
and attract more passengers.
b. Increasing the number of passengers and haulage capacity bus way as well as
increased Trans Jakarta service.
c. Travel Time and Headway each mode can be optimal.
d. Optimize the bus line.
To sum up the comparison between Zurich and Trans Jakarta, In fact, several
weaknesses of Trans Jakarta‘s public transport that can be criticized. There are lack
of technology information for the passenger and financial funding for development
48
public transport. In line with the purpose of the research, this research is more
focused on implementation features technology which becomes the strongest issues in
the improvement of Trans Jakarta‘s condition. From the weakness that derived from
customer complaint can be developed become solution for the problem. There are
several types of complaint that is common in Trans Jakarta:
a. Queuing time for ticket
The queue occur when the service provided by operator is not available or the
other word the facility in order to purchase ticket not enough to handle the
number of passengers. If every service needs can be provided at anytime and
anywhere, the queue would not happen.
b. Waiting time for bus
The common problem in Trans Jakarta is uncertainty of arrival bus in the bus
station. The effect of uncertainty of arrival bus is overflow the number of
passengers inside the shelter. This condition makes disappointed because the
passenger already waiting long enough.
c. On time arrival and departure
The customers as well as the bus drivers know the importance of on time arrival/
departure because most of people in Jakarta rely on the Trans Jakarta as primary
modes of transport. But mostly run not on time, or within a long time of normal
condition. It's reasonable if most of people prefer using private vehicle than
public transport.
d. Information availability
Information about bus routes, a map and time table are needed to help passenger
when they use public transport. The available and accurate information became
key point to build a customer experience. The condition is different when using
Trans Jakarta, the information provided inside the shelter not clear enough and
inaccurate. Beside that "signboard destination" inside the bus occasionally doesn't
work.
49
From the fact which described above, this research provides important implications
for studying the adoption of information technology (mobile device application) as
part of the innovation in Trans Jakarta. Application in mobile device is suitable for
people in Jakarta because the worker were demanded to be active and mobile. In
other hand, the congestion that occurs around of Jakarta be restrict for people to
move. Expectedly, the implementation of technology information through mobile
device application attracts more people using Trans Jakarta and switch from private
vehicle to public transport.
In addition, the phenomenal growth of using cellular phones, especially smart phone,
is very fast. This condition is giving opportunity to another innovation in the
providing service in Trans Jakarta. Moreover, the level of education and technology
development in Jakarta is higher than other city in Indonesia, which makes easier to
develop the new technology. After having provided information concerning the
current condition and the opportunity future developments with regard to technology
information in Trans Jakarta. The strategic innovation conducted with the concept
creating value based on customer segment, in this case for Trans Jakarta users.
Business model canvas is the method that used to create, deliver, and capture the
value. To be successfully, the strategic innovation requires support to form integrated
among passenger, operator, government, and all interested parties.
B. Assessment of value creation in the mobile device application
From the description in the previous chapter, there are overview of generate value
creation in mobile device application which is presented below (Table 5.1).
50
Table 5. 1 Overview of value creation in mobile device in Trans Jakarta
No Items Mobile device application in Trans Jakarta
1 customer
Engagement
• Mobile device application is designed with software
platform engages customers through providing information
and give more benefit to use public transport, such as real
time arrival/departure, purchase ticket, safety
2 Self-service
• Mobile device application provide the ease access for
schedule, maps and buying ticket. The technological
innovation is enable customers to access facilities in Trans
Jakarta without direct interaction with the employees.
3 Customer
Experience • Mobile device application offering the customer experience
through facility to design their travel called travel planner.
4 Problem solving
• Solve the problem about uncertainty arrival and departure
buses by provide real time schedule and information
"LIVE" for customer that included in the mobile
application. Besides that the problem long queue to buy
ticket to entrance the bus station can be solve with the
purchasing via mobile phone.
5 Co-designing
• The application have opportunities to involve the customer
in the process creation of new service idea, the idea in
order to create a new service that is more appropriate with
the customer needs. For instance, developing new system
integrates with other mode transport related with schedule,
route, and ticketing system.
C. Applying mobile application with new business model approach
Based on the success of mobile device application implemented in Zurich, there are
opportunities for management of Trans Jakarta to apply this system as new business
model innovation. The business model would give influence toward the development
of public transport into a better way, especially Trans Jakarta. Based on Osterwelder
and Pigneur (2010), state that the fundamental of building new business model
require nine basic element that show the logic of how a company intends to make
benefit through delivery of service innovation. To make better understand the
thinking about implementation of design model in mobile application, following
some over view of new business model canvas:
51
1. Customer Segment
In case Trans Jakarta, the passenger not classified into group of customer
segmentation. All citizens can use Trans Jakarta as mode of transport only just for
travelling, go to school or work. The passengers have the same of treat from the
management Trans Jakarta. The different treat is just for people who have disabilities
with adding facilities and personnel to help insert the shelter or bus. In addition,
inside the bus provided have priority seat for old people, disabilities and pregnant
women.
For the ticketing, Trans Jakarta implemented three type for payment. There are three
kind of ticket that can be purchased by passenger, such as: one-way ticket (direct
purchasing in shelter), subscription tickets, and e-ticketing (cooperate with Bank BRI,
Bank BNI, Bank Mandiri, and Bank DKI). Moreover, the fare of ticket is Rp. 3500
(2.33 SEK), it is same for all passengers in one-way destination because the operation
of Trans Jakarta is subsidized by the Provincial Government of DKI Jakarta and the
Central Government (Ministry of Transportation). The subsidies are given in order to
improve of performance Trans Jakarta become more comfort, safety and reliability.
But in the implementation have many obstacles. Allocation fund from Central
government not enough for public transport sector, because it must be allocated into
several sectors program that obtained by local government. Beside that corruption
issue became the most obstacles in developing country like Indonesia. So actually the
subsidies are not optimal for public transport like Trans Jakarta.
2. Value Proposition
The main of value proposition offered in mobile device application in Trans Jakarta is
to provide schedule arrival and departure of buses, purchase ticket, maps, and
timetables. In addition, the application offered additional information about existing
condition inside the shelter through web camera. At this time, the webcam already
52
installed in several shelter in Trans Jakarta. But the function of application cannot be
optimal because the services need a fast internet connection to distribute video from
the webcam. Whereas in Indonesia, internet connection slow and unstable. The speed
signal capture is still influenced by the weather and location factors. The
improvement in providing a quick internet connection is needed to attract more
passengers using Trans Jakarta. Because this application is important for citizen of
Jakarta in order to provide the right information and estimated time on the way to
work or go to school.
Currently, the passenger cannot design travel planner using public transport because
the schedule of arrival and departure of Trans Jakarta cannot be predicted. Through
mobile device application, the passenger can access the real time schedule and can
arrange the journey using this application. The passenger also can decide to choose
the empty and comfort shelter via webcam. The mobile device application expected
to change the way of society views on public transport. Moreover, this application
will gradually improve the current system to the ideal public transport.
This service is categories an entirely new set for passenger in Trans Jakarta that did
not applied before. By looking the phenomenon of dependence of citizen in Indonesia
on using the mobile devices and the development of telecommunications technology
provides opportunities this application developed in Trans Jakarta. Because the
application is helpful for mobility of people and making things more ease and
convenient in their journey using public transport. In addition, this application can be
improve the performance of service providing in Trans Jakarta.
3. Channels
In the case of mobile device application in Trans Jakarta, the value proposition or
information delivered through online communication channels (internet connection).
The application is use software platform where the passenger must install the
53
software on mobile before consuming the service. To access the information require
internet network (Wi-Fi or GPRS). Ease of access and validity of information is the
key to success in the achievement of better transportation. Additionally, the
application giving opportunities to attract more passenger. Internet network
improvement is needed to build a good system in the process delivering information
for customer. Besides that to introduce new service like mobile device application,
government must be promote and persuasive approach about how to use the new
application.
4. Customer relationship
The initial step to construct relationship with customer in the new development
program like mobile device application in Trans Jakarta is promoting and personal
approach. The target of program to allow of mass customization, so that the service
need support and awareness from the citizen of Jakarta to promote the easiness and
comfortable using public transport. Moreover, the application is also worked through
connection with internet. Since the software and service are transfer data from the
transmitter to personal mobile device. In this case need a fast connectivity to receive
the real time data. The government must be willing to make cooperation with the
telecommunication provider to improve the performance of services.
The application is categories to self-service relationship; it means no direct
communication with the company. All facilities provide in this application for help
the journey. If customer meets some problem, they must ne contact customer service.
The advantages of the application raising a sense of belonging and self-reliance in the
use of public transport especially Trans Jakarta.
5. Revenue streams
The companies have several ways to earn money from the customer through offering
variety of product or service. The value offered to consumers should consider the
54
willingness to pay for the product. Successfully influence customer to use the product
allows the firm to raise revenue streams from each customer. The firm may have gain
revenue flows with different way, for instance the firm set a specific price for their
products or the price obtained by bargaining. Besides that revenue streams have
several mechanisms to gain money from the customers such as, auctioning (e.g.
eBay), market dependent (e.g. stock exchange), volume dependent, or yield
management (e.g. hotel or air lines).
In the case of mobile device application, this type is categorized in usage fees of
revenue streams, because the passenger using particular services and the company
generate the revenue streams. For instance: purchasing ticket using mobile
application. The revenue generated by customer is like water tap. If they more open
the water tap, more water to flow. It is means more passenger using application equal
more revenue for the company. Saw the most people of Jakarta relies with the mobile
phone for their life, this application potentially developed in Trans Jakarta. The
advantages of the application can help the mobilization of people in Jakarta.
6. Key Resource
The implementation new technology in the process movement of people to others
place, like mobile device application in Trans Jakarta requires key resources to ensure
that the system became successful through software platform. The software linked
data from buses, bus station, server and receive in mobile phone. The real time data
from the buses and bus station transferred to main server; afterwards the passenger
can access via mobile phone and directly receive data. To design and maintain the
system or network involves the vendor who has capability to develop the software.
The new software application designed for the public transport solution, its aim, it
make convenient, reduce security issues, user-friendliness and supply the accurate
information for passenger. To support connection with main server require
55
endorsement by mobile phone operator. Besides that, the purchasing tickets are billed
directly into mobile phone operator billing system.
7. Key Activities
The presence of Trans Jakarta indeed had expected to solve the problem mobility of
people in the city. But a number of complaint still occur as a result of different in the
service expected by passenger, such as queuing time for ticket, waiting time for
buses, on time arrival and departure and information availability. The
implementation of mobile device application expected becomes resolution of the
problem related with supply information and service for passenger. The application
can help the passenger to access the information before using Trans Jakarta.
Software development, as a key activity in the process business model in mobile
device application, is needed to maintain and attract new passenger. User-friendliness
in the package of simple software would give curiosity and interest from the people to
use public transport. In addition, the application offers a variety of conveniences that
can be accessed by passengers themselves without any interaction with employees or
called self-service.
8. Key Partner
To develop the mobile device application as a part improving of service in Trans
Jakarta, the government should construct the relationship with the telecommunication
providers. The partnership with telecommunication provider established to build
networking system based on software platform in mobile device application. The
process transferring data from the central of server to mobile phone require internet
networking. In this case, telecommunication provider build IT framework to deliver
the travel information and ticketing service. The development of new service focus on
providing affordable supply information and give solution that is accessible, up to
date, quickly, readable, reliable, and available when the passenger needed. Besides
56
that the government make corporation with payment provider to manage the revenue
streams.
9. Cost Structure
The business model in mobile device application is offered to passenger and expected
give benefit for the mobility using public transport, like Trans Jakarta. The cost
structure in the process building of the system involves research and development the
software, data center cost, general and administrative. The mobile device application
stands as business model, mainly software platform based, that designed free basic
service with payment service for purchasing ticketing via mobile phone. Initially, the
operators lose the money by providing travel information for free, but they cover the
loss of money with payment of accessing internet via mobile phone. This is
illustrating the balance between service and profit in the business model.
D. The design new business model through mobile application in Trans Jakarta
1. Getting started with mobile application
Many complaints addressed to management Trans Jakarta as evidence that the
current service information in Trans Jakarta is not in accordance with the
expectation of passenger. To reduce the number of complaints and makes
passenger more comfort using Trans Jakarta, the management must be have
strategy to create innovation related with providing information for passenger
and learning from how Greater Zurich doing their service information. It can be
concluded in several processes as follows. The management of BLU Trans
Jakarta has to establish research and development related with provision of
information. The first step is collecting data from the customer who has
complaint and expectation toward the service in Trans Jakarta. Like in Zurich,
the citizens have opportunity to give feedback to express their acceptance or
57
reject for the project planning. The communication with the citizen gives
advantages and benefits in form of input or positive feedback to policy makers.
Second, data input from the customer grouped according with level of priority to
solve the problem. This step at once as source of consideration to determine:
what the suitable type of application that needed by passenger of Trans Jakarta.
After that the researcher designs the interesting application to attract more
customer. The government have crucial role in the process campaign the new
service for customer. Government should clearly define and persuade the citizen
regarding the benefit and advantages of the mobile device application related
with the service information offered, because this part became key point to create
a high level of confidence and comfort in using the application from the
customer.
According to implementation mobile application in public transport system, it
requires hardware vendor/provider to establish networking system, infrastructure
inside buss or shelter, train staff to operate the system and optimize public
funding to develop in the system that have opportunities to provide revenue on
high investment. Besides that the system needs flexible technology platform,
which the platform have opportunities to adapt with new mobile application
system or services in order to allow new functionalities to be developed rapidly
and cost-effectively. Base on Accenture (2011) explain several step that
transportation providers should to do before build mobile application
networking:
a. Identifying which features and functionalities should be emphasized, the
features must allow for passenger to plan their travel using internet channel.
These channel support to send short message service (SMS) which allows
passengers to purchase ticket without having to pre-register or download a
58
mobile application as well as mobile-ready branded websites, and traditional
PC-accessed sites.
b. Installing internet networking that the channel has coordination with center
data station to confirm availability information and pricing. The mobile
application system include quickly and accurately responds to delivery
information and calculate a price of ticket that is aligned with the provider
itinerary zone and price table system.
c. Training of the people to operate and manage the system to build the skills
necessary for effective operation.
2. Design new business model in Trans Jakarta
Based on the discussion above, there are overviews of business model canvas in
mobile device application in order to improve service in Trans Jakarta and to be a
competitive alternative to private vehicle. Besides that the design new business
model can be considered for management or Public Transport Authority in Trans
Jakarta to optimize the facilities for the customer when using public transport.
The design is presented below (Figure 5.1).
Figure 5. 1Business model canvas in mobile device application
59
According to figure 5.1 can be seen possible overview of mobile device application
business model. To better understand the thinking implemented to designing a model
present in the nine building blocks. Mobile device application value proposition is to
offer accurate information about operational Trans Jakarta (live schedule, travel
planner, maps, and timetable) in Smartphone. In addition, the application offers
additional services for ordering ticket. The customer segment is mainly Trans Jakarta
users. To increase number of passenger, Trans Jakarta management already installs
CCTV in several shelters to distribute the current condition inside the shelter. The
service designed with internet channel that be able to allow for mass customization.
The software and service are offered for free access, the revenue streams are from
ticketing revenue, payment service and advertisement. The key resource which needs
to produce the service is software platform and banking. The resource is used in the
operational of software development and physical attribute. Besides that the activity
needs support from the staff and partners of Trans Jakarta. The partners of Trans
Jakarta are payment provider, telecommunication provider, ticketing and hardware
vendor. The last, to implement the service needs a cost, in this case the main cost
structure in the service are research and development of software, data center cost and
general and administrative.
E. Hypothesis Testing Result
The hypothesis testing result from the questioners was conducted to know how far the
respondents support on implementation of new business model through mobile device
application on Trans Jakarta public transport service. The percentage of respondents
according four categories was shown as the following figure below:
60
Source: Primary Data, 2013
Figure 5. 2The characteristics gender of respondent
Source: Primary Data, 2013
Figure 5. 3 The characteristics age of respondent
Male; 75%
Female; 25%
CHARACTERISTICS GENDER OF RESPONDENT
Male
Female
3%
28%
58%
13%
Age of respondent
16 - 20 years
21 - 25 years
26 - 30 years
> 30 years
61
Source: Primary Data, 2013
Figure 5. 4The characteristics educational of respondent
Source: Primary Data, 2013
Figure 5. 5The characteristics occupation of respondent
13%
13%
65%
10%
Educational characteristics of respondents
Senior High school
Diploma
Bachelor
Master
Student; 20%
Private sector officer; 53%
Civil servant; 28%
job characteristics of respondents
Student
Private sector officer
Civil servant
62
The response of the people about applying the most advanced technology available
presented in Figure 5.6.
Source: Primary Data Analysis, 2013
Figure 5. 6 Response of the people about applying the most advanced technology
available
According to response of the people about applying the most advanced technology
available are 55 % or 22 from 40 respondents prefer to use the new technology
available. Then, 25 % or 10 respondents very agree and 10% respondents choosing
moderate answer same with disagree answer. From the result, can be concluded that
most of respondents prefer to use new technology and follow the new technology
regularly. Thus, the implementation new technology through mobile device
application can be easy to adopt and accept.
The response of respondents about how computer programs that allow to tailor things
to fit their own needs, presented in Figure 5.7.
0%
10% 10%
55%
25% Very disagree
Disagree
Moderate
Agree
Very agree
63
Source: Primary Data Analysis, 2013
Figure 5. 7 Response of the people about computer programs that allow to tailor
things to fit their own needs
The number of respondents who agree about computer programs that allow to tailor
things to fit their own needs is 95 % or 38 respondents and 1 respondent choose
moderate answer same with respondents choose disagree statement. From the result:
can be concluded that most of respondents are desire to use computer programs that
can make easy their work. People prefer using high technology application as long as
the technology gives advantages for the users. The result gives opportunity to develop
the mobile application that can fit with the needs of passenger Trans Jakarta. Because
the application gives advantages for the users such as reduce queuing time when
passenger order ticket and provide information about the time table and maps of bus.
The response of respondent about how far technology makes more efficient in their
occupation, presented in Figure 5.8.
0,0% 2,5% 2,5%
57,5%
37,5% Very disagree
Disagree
Moderate
Agree
Very agree
64
Source: Primary Data Analysis, 2013
Figure 5. 8 Response of the people about technology makes more efficient in their
occupation
According to response of the people about technology makes more efficient in their
occupation totally 90 % or 36 respondents agree and 10 % or 4 respondents are
choosing moderate answer. Mobile device application is new technology which can
make more efficient in the activity or occupation of people. For instance, to know the
arrival and departure of bus before the passenger go to shelter, it means people using
bus more efficient without waiting for long time inside the shelter.
The response of respondent about how far mobile application will improve the travel
quality (see schedule, routes, and buy ticket) is presented in Figure 5.9.
0% 0%
10%
60%
30% Very disagree
Disagree
Moderate
Agree
Very agree
65
Source: Primary Data Analysis, 2013
Figure 5. 9 Response of the people about mobile application will improve the travel
quality (see schedule, routes, and buy ticket)
According to response of the people about mobile application will improve the travel
quality (see schedule, routes, and buy ticket) totally 92.5 % or 37 respondents agree,
5 % or 2 respondents are choosing moderate answer and 2.5% or 1 respondent is
choosing disagree answer. From the result, can be concluded that most of respondents
assess that application in their mobile phone will improve quality of travel because
the application provide information about schedule, routes, and order ticket.
The response of respondent about how far mobile application enable to order ticket
more quickly, presented in Figure 5.10.
0,0% 2,5% 5,0%
52,5%
40,0% Very disagree
Disagree
Moderate
Agree
Very agree
66
Source: Primary Data Analysis, 2013
Figure 5. 10 Response of the people about mobile application enable to order ticket
more quickly
The number of respondents who agree about mobile application enable to order ticket
more quickly is 82.5 % or 33 respondents, 12.5% or 5 respondents choose moderate
answer and 5% or 2 respondents choose disagree statement. According to the result
can be seen that the majority of respondents agree with the implementation of mobile
application system in Trans Jakarta that enable to order ticket more quickly.
The response of respondent about how far mobile application will make travel quality
more convenient (see schedule, routes, and buy ticket) is presented in Figure 5.11.
0%
5,0% 12,5%
55,0%
27,5% Very disagree
Disagree
Moderate
Agree
Very agree
67
Source: Primary Data Analysis, 2013
Figure 5. 11 Response of the people about mobile application will make travel quality
more convenient (see schedule, routes, and buy ticket)
According to response of the people about mobile application will make travel quality
more convenient (see schedule, routes, and buy ticket) totally 80 % or 32 respondents
agree, 17.5 % or 7 respondents are choosing moderate answer and 2.5% or 1
respondent is choosing disagree answer. It means, most of respondents agree with the
statement about mobile application will make travel quality more convenient. Even
though the mobile application system is not implemented yet in Trans Jakarta.
The response of respondent about how far mobile application will make ease to use
Trans Jakarta (see schedule, routes, and buy ticket), presented in Figure 5.12.
0,0% 2,5%
17,5%
47,5%
32,5% Very disagree
Disagree
Moderate
Agree
Very agree
68
Source: Primary Data Analysis, 2013
Figure 5. 12 Response of the people about mobile application will make ease to use
Trans Jakarta (see schedule, routes, and buy ticket)
The number of respondents who agree about mobile application enable to order ticket
more quickly is 80 % or 29 respondents, 20 % or 8 respondents choose moderate
answer and 10 % or 4 respondents choose disagree statement. The result can be
concluded that majority of respondents believe that application in their mobile phone
will make ease to get information about Trans Jakarta. Furthermore, they can order
ticket via sending message to provider and in certain times, notification from provider
will send as a ticket.
The response of respondent about how far mobile application system will useful for
passenger, presented in Figure 5.13.
0%
10,0%
20,0%
52,5%
17,5%
Very disagree
Disagree
Moderate
Agree
Very agree
69
Source: Primary Data Analysis, 2013
Figure 5. 13 Response of the people about mobile application system will useful for
passenger
According to response of the people about mobile application system will useful for
passenger totally 92.5 % or 37 respondents agree with the statement, 5 % or 2
respondents are choosing moderate answer and 2.5 % or 2 respondent is choosing
disagree answer. The result can be concluded that the most of respondent is agreeing
with mobile application system because the application gives several advantages for
the passenger such as improve quality of travel, more convenient to use Trans Jakarta
and reduce the process ordering ticket.
The response of respondent about how far the difficulty use mobile application to see
schedule or order ticket, presented in Figure 5.14.
0,0% 2,5% 5,0%
65,0%
27,5%
Very disagree
Disagree
Moderate
Agree
Very agree
70
Source: Primary Data Analysis, 2013
Figure 5. 14 Response of the people about the difficulty use mobile application to see
schedule or order ticket
According to response of the people about the difficulty use mobile application to see
schedule or order ticket totally 62.5 % or 25 respondents disagree with the statement,
35 % or 14 respondents are choosing moderate answer and 2.5 % or 1 respondent is
choosing agree answer. The result can be concluded that majority of respondents or
Indonesia people is mobile phone users, so it will easy to operate the application
system.
The response of respondent about how far the passenger feel comfort to learn how to
order ticket or see schedule using mobile application, presented in Figure 5.15.
2,5%
60,0%
35,0%
2,5%
0,0%
Very disagree
Disagree
Moderate
Agree
Very agree
71
Source: Primary Data Analysis, 2013
Figure 5. 15 Response of the people about the learning how to order ticket or see
schedule using mobile application
The number of respondents who agree about the learning how to order ticket or see
schedule using mobile application is 82.5 % or 33 respondents, 15 % or 6 respondents
choose moderate answer and 2.5 % or 1 respondents choose disagree statement.
According to the result can be concluded the majority of respondents sure that it will
be easy how to learn the new technology, like mobile device application system.
Because people almost using mobile phone and internet connection frequently every
day.
The response of respondent about how far interacting with internet and mobile phone
system is often frustrating for passenger, presented in Figure 5.16.
0,0% 2,5%
15,0%
67,5%
15,0%
Very disagree
Disagree
Moderate
Agree
Very agree
72
Source: Primary Data Analysis, 2013
Figure 5. 16 Response of the people about interacting with internet and mobile phone
system is often frustrating for passenger
From figure 5.16 can be seen that 75 % or 30 respondents disagree with the statement
that interacting with internet and mobile phone system is making frustrating. Then,
17.5 % or 7 respondent choosing moderate answer and 7.5 % or 3 respondent
choosing agree with the statement. It means that the most of respondent do not have
any problem when they operate mobile phone or connect with internet.
The response of respondent about how far mobile application system will attract more
passenger to move from private vehicle to Trans Jakarta, presented in Figure 5.17.
12,5%
62,5%
17,5%
5,0% 2,5%
Very disagree
Disagree
Moderate
Agree
Very agree
73
Source: Primary Data Analysis, 2013
Figure 5. 17 Response of the people about mobile application system will attract
more passenger to move from private vehicle to Trans Jakarta
According to response of the people about mobile application system will attract
more passenger to move from private vehicle to Trans Jakarta totally 40 % or 16
respondents disagree with the statement, 27.5 % or 11 respondents are choosing
moderate answer and 32.5 % or 13 respondent is choosing agree answer. The
majority of respondent optimist the new technology by implementation mobile device
application system will attract people to shift from private vehicle to public transport
service like Trans Jakarta. But some of people pessimist that application will be
success because they have question about ―How it is work?‖ Beside that this adding
application just part of improvement service in Trans Jakarta. In this case the
government should have create transport policy to provide atmosphere that public
transport is convenient, cheap, safety, and reliable. Thus, people move from private
vehicle to public transport.
7,5%
25,0%
27,5%
30,0%
10,0%
Very disagree
Disagree
Moderate
Agree
Very agree
74
As a summary from hypothesis testing result by response questioners from the
respondents, the author measure the most of respondent agree with the
implementation mobile device application in Trans Jakarta to improve the service.
They optimist mobile application gives advantages for passenger such as provide
information about route and time table. Moreover, in mobile application provide
facility to order ticket by sending message to provider. Thus, the application can
improve quality travel for the passenger. However, the implementation of system
need high technology and high budgeting so the government must consider about
―how it is work?‖ and how to maintenance the high technology system. Besides that,
the government should have create transport policy to force people using public
transport and reduce private vehicle in the road through creating situation convenient,
cheap, safety, clean, accessible, and reliable in public transport.
75
CHAPTER VI
CONCLUSION AND RECOMMENDATION
A. Conclusion
There are several conclusion from the research presented below:
1. Learn from the success stories in other city in the world (like Zurich,
Switzerland) about the implementation technological innovation to improve the
efficiency and effectiveness of public transport. Mobile device application will
be an appropriate solution and received by all parties related with service
information in Trans Jakarta. Because the accurate and user-friendliness service
information will create new value in the trip of passenger.
2. Applying new business model in mobile device application have many
advantages for the people such as with software platform design give
opportunities to engage with customer by providing technological information
(real time arrival/departure, purchase ticket, map, and webcam), enable
customers to access facilities in Trans Jakarta without direct interaction with the
employees, offer the customer experience through facility to design their travel
called travel planner, solve problem long queue to buy ticket before entrance the
bus with purchasing via mobile phone and give opportunities to involve the
customer in the process creation of new service idea related with improving
service quality in Trans Jakarta.
3. The concept of new business model in mobile application base on internet
service is important to improve quality transit service information and suitable
for passenger to inform before making trip, during the trip and until the eve of
destination the trips. Because the accurate of information will give best
experience for passenger and arise high level of comfort, safety, and
trustworthiness in using public transport. As a feedback from the high level of
76
comfort and trustworthiness from the service provided in public transport, the
people will be more likely and interest to use the public transport regularly as
main modes of transport in their mobility.
4. From the result of measurement about the hypothesis scenario of implementation
new business model in mobile device application with the spreading of
questionnaires, the result shows that the most of respondent agree with the
adding new technology in Trans Jakarta to provide information and improve their
quality of travel. The result could be used as input for public transport authority
in the process planning and creating of good public transportation system on the
future related with implementation new technology in mobile application to
optimize the facilities for the customer when using Trans Jakarta.
B. Recommendation
The implementation of new technology based on mobile device application is the
main tasks that needed to measure from people in order to measure people acceptance
in applying new technology in public transport services, especially Trans Jakarta. The
research still has a lot of weakness related to the process of collecting data to be
primary data and secondary data. For future research about implementation of new
business model through mobile device application are needed to improve the
weakness in current research. There are several recommendation and suggestion that
can be considered in future research, such as:
1. Developed interview with management or public transport authority in Trans
Jakarta as a validation the data taken from internet.
2. Increase the number of respondents that can be generated the better result that
closer the real conditions.
77
REFERENCES
Accenture (2011), ―Mobile Ticketing for Public Transportation: Convenience,
Efficiency, and Revenue‖.
Andreassen, T., (1995), ―(Dis) satisfaction with public service: the case of public
transportation”, Journal of Services Marketing, vol. 9, no. 5, pp. 30-41
Bo Edvardsson & Bo Enquist (2011): The service excellence and innovation model:
Lessons from IKEA and other service frontiers, Total Quality Management &
Business Excellence, 22:5, 535-551
Chapman R.L., and Soosay, C., (2002), “Innovation in logistic services and the new
business model”, Managing Service Quality, Vol. 12 No. 6, 2002.
Christodoulou, A. and Finger, M. (2012), “The governance of urban public transport
systems: the case of Zurich (ZVV)”,Delft University of Technology,
Netherlands
Dabholkar P.A., (1996), ―Consumer evaluations of new technology-based self-service
options: An investigation of alternative models of service quality‖, Intern. J. of
Research in Marketing 13 (1996) 29-51
Doorn J., Lemon K.N., Mittal V., Nass S., Pick D., Pirner P., and Verhoef P.C.,
(2010), “Customer Engagement Behavior: Theoretical Foundations and
Research Directions”, Journal of Service Research, 13: 253
Enquist, B., Gebauer H., and Johnson, M. (2010), ―Value creation in public transit
services‖, The 11th
International research Seminar in Service Management
Frey, R.L. (2003), ―Swiss Transport Policy: Mobility vs. Sustainability‖, 10th
International Conference on Travel Behaviour Research Lucerne
Fritscher, B. and Pigneur, Y., (2010), “Supporting Business Model Modelling: A
Compromise between Creativity and Constraints”, D. England et al. (Eds.):
TAMODIA 2009, LNCS 5963, pp. 28–43, 2010.
78
Fritsch, J. and Gündisch, A., (2008), ―Principles for a value-creating sustainable
public transport system‖, Karlstad University, Karlstad, Sweden
Gallouj, F., Weinstein, O., (1997), ―Innovation in services”, Research Policy 26,537–
556.
Gebauer H., Enquist, B., and Johnson, M. (2010), ―Value co-creation as a
determinant of success in public transport services a study of the Swiss Federal
Railway operator (SBB)”, Managing Service Quality Vol. 20 No. 6, 2010 pp.
511-530
Goldman, T. and Gorham, R. (2006), “Sustainable urban transport: Four innovative
directions”, Technology in Society 28 (2006) 261–273.
Leal, M., Bertini, R.L. (2003), "Bus Rapid Transit: An Alternative for Developing
Countries", Compendium of Technical Papers, Institute of Transportation
Engineers Annual Meeting 2003, Seattle, Washington
Levinson, H., Zimmerman, S., Clinger J., Rutherford, S., Smith, R.L., Cracknell, J.,
and Soberman, R.,(2003),―TCRP Report 90, Bus Rapid Transit, Valume 1: Case
Studies in Bus Rapid Transit. Washington, D.C.: Transportation Research
Board.
Meuter M.L., Ostrom A.L, Roundtree R.I., & Bitner M.J., (2000), ―Self-Service
Technologies: Understanding Customer Satisfaction with Technology-Based
Service Encounters‖, Journal of Marketing Vol. 64 (July 2000), 50–64
Meyer C., and Schwager A., (2007), ―Understanding Customer Experience”,
Harvard business review, hbr.org.
Micheli, P., Schoeman, M., Baxter, D., and Goffin, K., (2012), ―New Business
Models for Public Sector Innovation‖, Research-Technology Management,
September—October 2012
Murray A. T. (2001), ―Strategic analysis of public transport coverage”, Socio-
Economic Planning Sciences 35 (2001) 175–188, Elsevier Science Ltd.
79
Nash, A. and Sylvia, R. (2001), “Implementation of Zürich’s Transit Priority
Program”, Mineta Transportation Institute College of Business San José State
University San Jose, CA
Nash, A. (2007), ―Zurich Public Transport - Questions and Answers”.
Niles, J., and Jerram L.C., (2010),‖From Buses to BRT: Case Studies Of Incremental
BRT Projects in North America, Mineta Transportation Institute, College of
Business, San José State University
Ongkittikul, S. and Geerlings, H. (2006), ―Opportunities for innovation in public
transport: Effects of regulatory reforms on innovative capabilities’, Transport
Policy 13 (2006) 283–293
Osterwelder, A., and Pigneur, Y., (2002), ―An e-Business Model Ontology for
Modeling e-Business‖, 15th Bled Electronic Commerce Conference e-Reality:
Constructing the e-Economy Bled, Slovenia, June 17 - 19, 2002
Osterwelder, A., and Pigneur, Y., (2010), “book Model Business Generation”.
Pateli, A.G., and Giaglis, G.M., (2003), “A Framework for Understanding and
Analysing e-Business Models”, 16th Bled e-Commerce Conference e-
Transformation, Bled, Slovenia, June 9 - 11, 2003
Payne, A.F., Storbacka, K., and Frow, P. (2008), ―Managing the co-creation of
value‖, J. of the Acad. Mark. Sci. (2008) 36:83–96
Redman L., Friman M., Garling T., and Hartig T., (2012), ―Quality attributes of
public transport that attract car users: A research review”, Transport Policy 25
(2013) 119–127
Sebhatu, S.P., Enquist, B., and Johnson, M. (2010), “Sustainable public transport
network development in Developing Countries”, International Research
Symposium in Service Management
80
Schmiedgen, J. (2011), “Innovating User Value - The Interrelations of Business
Model Innovation,Design (Thinking) and the Production of Meaning – A Status-
quo of the Current State of Research”, Zeppelin University.
SustainValueReport,(2012),‖Report on gap analysis in business modelling and value‐
network tools and methods against future needs”, University of Cambridge.
Supranto, J. (2000). Teknik Sampling untuk Survei dan Eksperimen. Penerbit PT
Rineka Cipta, Jakarta.
Tapscott, D., Lowi, A., Ticoll, D. (2000) Digital Capital – Harnessing the Power of
Business Webs, Harvard Business School Press, Boston.
Tran, T. and Kleiner, B. (2005), ―Managing for excellence in public transportation”,
Management Research News, Vol. 28 No 11
Transit Cooperative Research Program. (2003),‖Bus rapid transit. Vol. 1: Case
studies in bus rapid transit”. TCRP Report No. 90. Washington, DC:
Transportation Research Board.
Temkin (2008), ―The 6 Laws of Customer Experience‖, Customer Experience
Matters, www.experiencematters.wordpress.com, accessed: April 2013
Vargo, S.L. and Akaka, M.A. (2009), “Service-dominant logic as a foundation for
service science: clarifications”, Service Science, [Online], 1 (1), 32-41.
Vargo, S.L. and Lusch, R.F. (2004), “Evolving to a New Dominant Logic for
Marketing‖,Journal of Marketing, [Online], 68(1), 1–17.
Vargo, S.L., and Lusch, R.F. (2008),“Service-dominant logic: Continuing the
evolution”,Journal of the Academy of Marketing Science, [Online], 36 (1),
1−10.
Vargo, S.L., Maglio, P.P., and Akaka, M.A. (2008), “On value and value co-
creation: A service systems and service logic perspective”, European
Management Journal, [Online], (26), 145–152.
81
Witell, L., Gremyr I., Löfberg N., Edvardsson B., & Fundin A., (2010), “Exploring
Modes of Innovation in Services”, CIRP IPS2 Conference 2010, 409-415.
Data Source about BRT Transjakarta, Official Website of BRT Transjakarta.
Available: www.transjakarta.co.id, accessed: April 2013
Data Source about ZVV public transport, Official Website of ZVV public transport.
Available: http://www.zvv.ch/en/accessed: May 2013
Data Source about Zurich public transport, Official Website of Zurich public
transport. Available:
http://www.stadt-zuerich.ch/vbz/en/index/timetables/mobile_timetable.htmlaccessed:
May 2013
Data Source about Dishub Jakarta, Official Website of Dishub Jakarta. Available:
http://dishub.jakarta.go.id/accessed: April 2013
Data Source about BPS Jakarta, Official Website of BPS Jakarta. Available:
http://jakarta.bps.go.id/accessed: April 2013
Data Source about maps of java, Available: petajawa.blogspot.com; accessed: April
2013
82
APPENDIX A
No Corridor Route Established Operator
1 Corridor 1 Blok M - Kota February 1, 2004 PT Jakarta Express Trans and PT
DAMRI
2 Corridor 2 Pulo Gadung - Harmoni January 15, 2006 PT. Trans Batavia
3 Corridor 3 Kalideres - Harmoni January 15, 2006 PT. Trans Batavia
4 Corridor 4 Pulo Gadung - Dukuh Atas 2 January 27, 2007 PT. Jakarta Trans Metropolitan
and PT. Jakarta Mega Trans
5 Corridor 5 Ancol - Kampung Melayu January 27, 2007 PT. Jakarta Trans Metropolitan
and PT. Jakarta Mega Trans
6 Corridor 6 Ragunan - Dukuh Atas 2 January 27, 2007 PT. Jakarta Trans Metropolitan
7 Corridor 7 Kampung Melayu - Kampung Rambutan January 27, 2007 PT. Jakarta Mega Trans and PT.
Eka Sari Lorena
8 Corridor 8 Lebak Bulus - Harmoni February 21, 2008 PT. Primajasa Perdayana Utama
9 Corridor 9 Pluit - Pinang Ranti December 31, 2010
PT. Bianglala Metropolitan
(BMP), PT. Trans Mayapada
Busway (TMB) & PT. Jakarta
Express Trans
10 Corridor 10 Tanjung Priuk - Cililitan December 31, 2010 PT. Bianglala Metropolitan & PT.
Jakarta Express Trans
11 Corridor 11 Kampung Melayu - Wali Kota Jakarta Timur December 28, 2011 PT. DAMRI
12 Corridor 12 Pluit - Tanjung Priuk February 14, 2013 PT. Bianglala Metropolitan
13 Corridor 13 Blok M - Pondok Kelapa Planned -
14 Corridor 14 Manggarai- Unerversity of Indonesia Planned -
15 Corridor 15 Ciledug - Blok M Planned -
83
Appendix B: Data Questioner
27. No Question
28. Very
disagree
(1)
29. Disagree
(2)
30. Moderate
(3)
31. Agree
(4)
32. Very
Agree
(5)
33. 1 34. You prefer to use the most advanced
technology available 35. 0 36. 4 37. 4 38. 22 39. 10
40. 2 41. You like computer programs that allow
you to tailor things to fit your own needs 42. 0 43. 1 44. 1 45. 23 46. 15
47. 3 48. Technology makes you more efficient in
your occupation 49. 0 50. 0 51. 4 52. 24 53. 12
54. 4 55. Using mobile application will improve
the travel quality (see schedule, routes,
and buy ticket)
56. 0 57. 1 58. 2 59. 21 60. 16
61. 5 62. Using mobile application enable to order
ticket more quickly 63. 0 64. 2 65. 5 66. 22 67. 11
68. 6 69. Using mobile application will make
travel quality more convenient (see
schedule, routes, and buy ticket)
70. 0 71. 1 72. 7 73. 19 74. 13
75. 7 76. Using mobile application will make ease
to use Trans Jakarta (see schedule, routes,
and buy ticket)
77. 0 78. 4 79. 8 80. 21 81. 7
82. 8 83. Overall, mobile application system will
useful for you 84. 0 85. 1 86. 2 87. 26 88. 11
89. 9 90. You find difficulty use mobile
application to see schedule or order ticket 91. 1 92. 24 93. 14 94. 1 95. 0
96. 10
97. You feel comfort to learn how to order
ticket or see schedule using mobile
application
98. 0 99. 1 100. 6 101. 27 102. 6
103. 11 104. Interacting with internet and mobile
phone system is often frustating for me 5 25 7 105. 2 1
106. 12
107. Using mobile application system will
attract more passenger to move from
private vehicle to Trans Jakarta
3 10 11 12 4
Source: primary data, 2013
Appendix C: The service quality of Trans Jakarta BRT
84
Source: Instrans, 2010
Appendix B: Passenger expectation from Trans Jakarta BRT
85
Source: Instrans, 2010
