1. Startups

Industrial-Scale Internet of Things Product Development ala Telkomsel Intank

From customer discovery to hardware optimization which is a challenge

Technology implementation Internet of Things (IoT) in Indonesia shows tremendous potential, from devices that make everyday life easier, to solutions that can solve industrial-scale problems. One of them is shown by Telkomsel which has launched Intank (Intelligent Tank Monitoring System), industrial solutions for fuel management IoT based.

DailySocial.id had the opportunity to talk with Alfian Manullang, General Manager of Industrial IoT Telkomsel. He talked about the process of developing IoT products, which have their own uniqueness, as well as higher complexity than other digital products. Not to forget, he also shared insights and tips to startups and product developers who are interested in developing IoT products in Indonesia. The following are the results of the conversation with Alfian that we have summarized.

If described in outline, what is Intank?

In short, Intank is an industrial solution end to end based on IoT that is able to do inventory monitoring in a manner real-time on company owned tanks. The contents of the tank are usually a valuable asset (valuable goods) in the form of fuel (fuel) or other chemical substances in liquid form (liquid chemicals).

What are the benefits for the company?

With accurate visibility of these liquid assets, companies can carry out various operational efficiencies and capacity planning. For example to know when a tank can be refilled (replenished), as well as the optimal amount according to the capacity of the tank.

What are the challenges in developing IoT-based products?

In IoT, apart from software, there are also components hardware and firmware required. So, the main challenge is to find hardware right. In the Intank example, finding the right hardware and sensors, has high precision and effective cost and measurement tools Accurate. Iterations also take longer, can be up to 6 to 10 times, and certainly cost more to do this.

Therefore, from the beginning we must know the availability hardware what we need in the market. If there are many available, we just have to choose based on the quality, then look for it beg or the supplier. Only then can we build an ICT system and make it online. But if hardwareit is not yet available in the market, it will take more time to design and create hardware it from zero. For the Intank example, it happens that there are many sensors available in the market, and we chose the highest quality one.

How is the innovation development process in Telkomsel, especially for Intank?

Corporate innovation can be done in various ways. Something from the outside in (outside in) such as for example The Next Dev or TINC which are owned Telkomsel. Then there are those that are from the inside out (inside out) innoXaction or a special organization to innovate such as IoT Business.

Di Telkomsel There are two types of internal innovation that are usually carried out. First is a general employee who sees the problem in the field, then he tries to develop a solution or prototype-his. Usually this is done in their respective work areas and for their own work needs.

The second is the organization or division that was created to innovate. For example Research Management, Business Incubation, and Industrial IoT. This Intank/Remote Tank Monitoring solution is part of the organization's innovations, starting with the first batch of TINC. At that time there was Bike Sharing, Aqua culture (fish feeding), and Smart Trash Bin. However, the most visible high commercial potential is Intank. Because, in IoT business development, it usually starts from B2B or enterprise.

The reason is because there is a huge market potential there. In short the market exists, the ability to purchase/payment exists, and the problems and concerns (pain points) experienced is real. Different from consumer IoT is still developing.

In terms of problems and IoT technology, which one did Intank look at first?

Of course from the first problem. In carrying out innovation, we continue to use the method Lean Startup. Start with customer discovery & customer validation, look for point bread and the main problems faced customer, then validated again until absolutely sure that the problem needs to be solved. The process does take a long time, can be up to 2-3 months. But it has to be like that. Even Albert Einstein once said, "If I had an hour to solve a problem I'd spend 55 minutes thinking about the problem and 5 minutes thinking about solutions"So first make sure what the problem is, then innovate.

After the problem is clear, then enter the phase of looking for ideas to solve the problem. Look for various possible solutions and alternative ideas, what tools are needed, and so on. In the Intank example, we find out what sensors are needed. Turns out I need sensor level to find out the amount of assets, as well as flow sensors to measure usage and how much is consumed. After the sensor is installed, then it is connected to the monitoring application.

After successfully running, then we enter the POC stage (proof of concept) and make a prototype. This is important, because in a large-scale industrial sector, they must be able to see the product and how it actually works. Can't if we only offer mockup just. There must really be a product that can be used, and we must be willing to spend money to make it happen. Starting from buying the sensor device, building connectivity, to making MVP in the form of monitoring dashboard-his. After the POC is successful and the entire solution concept works as expected, then we can enter the stage piloting.

In customer discovery During those 2-3 months, what were the findings related to the market potential from Intank to the stage ideation?

One of our findings is that fuel aka fuel is the most consumed liquid asset. For some industrial sectors, fuel is even a major expenditure, for example in power plants, mining, or BTS located in remote areas. In the fuel management, various problems arise due to the lack of visibility. The volume of fuel can not be measured every day, but once a month. The measurement accuracy is also low, a lot happens human error for relying on humans.

Due to low visibility, it is difficult for the company to predict when to refill and reorder the fuel stock. If it is late to refill, the operation will be disrupted because the fuel has run out. Refilling too early also creates another problem, namely insufficient tank capacity, so the rest must be returned.

With visibility solutions real-time offered by Intank, the company can predict when the fuel should be refilled, as well as how much it needs to match the capacity of the tank it has. Other factors such as theft, cheating, and burglary on the road can also be minimized with this solution.

Where was Intank's first POC?

We conducted POC for the first time at Mitratel which is also a subsidiary of Telkom Indonesia. Many BTS Telkomsel located in a place managed by Mitratel. So, it can be said that we started with the problems experienced within our own company. The problem is big, the value is big, so it's valid and has good economic value. After doing piloting there, the results were good, and were proven to reduce their operating costs by up to 35%.

The validation of the solution at Mitratel makes us more confident and confident to reach a wider market. Starting from oil and gas companies, power plants, and many other sectors, surely many need a fuel and liquid monitoring system. Finally we decided to go commercial. After Mitratel, there are currently several POCs running. Starting from Pertamina Patra Niaga (oil and gas industry), Semen Merah Putih (cement industry), Pamapersada Nusantara (mining contractor industry), and Kapuas Prima Coal (mining industry).

In the Intank example, because it is in scope Telkomsel, it can be easier to do market testing to your own scope or to sister companies. What about smaller startups?

In targeting the B2B segment, we really have to meet directly with the corporate. The most appropriate step taken by startups is to enlarge the network. Currently, many corporations are opening up opportunities for innovations from outside to enter, for example by holding incubation programs, acceleration, and so on. There are many benefits that will be obtained by participating in these various programs. First in terms of innovation, we can directly validate the innovative ideas that we have. So not only based on our own hypothesis, but also make sure the idea fits the real problem facing the company.

For Telkomsel Have you opened yourself up to startups who want to innovate?

For the problems we face within the company's internal, we will keep trying to find solutions and innovate through the various existing divisions. But we also open up opportunities for innovation from outside, including to solve problems in corporate clients Telkomsel. One of them is by building an ecosystem through programs TINC whose main goal is to accommodate innovation through collaboration with innovators.

Through TINC, we open up opportunities for every startup or developer to innovate through hypotheses or prototype that they have, but still must be in accordance with the theme that has been previously designed to be more specific and focused. For example, currently the focus is on industrial IoT, we will focus on that. Other things that are not related, agriculture for example, we will put aside first. But maybe you can join other programs Telkomsel such as The Next Dev which is more varied.

TINC will be more specific on industrial IoT, but we need to look at the technology used, and it must be adapted to current market needs and readiness. Because in IoT, many new technologies are being developed, for example the merging of IoT with AI and machine learning, or robotic technology with IoT.

With this new technology, we need to consider whether the demand for the industry is already high? How's the price? Would the company be willing to pay that price? Because it could be a good concept of the solution offered. But the price for its development, especially in terms of hardware is still very high, so it will take a few more years until the price is affordable, can be produced massively, and can reach a wider market.

How high is the cost for the POC?

IoT products are very varied. There are small problems, there are also big problems. For simpler problems, such as measuring temperature and humidity, for example, the sensors needed are easier to obtain at a more affordable price. In the Intank example, we provided a solution to a large and expensive problem for the company. HardwareIt's also not cheap, because there are many prerequisites that must be met, especially in terms of Health Safety Security Environment (HSSE). Therefore, we have to choose hardware with high quality and accuracy, and has met the certification according to the required prerequisites.

How tips for startups to do growth hacking with limited resources?

No one can innovate alone, especially in IoT. Even a big company like Telkomsel still need the help of startups and developers to innovate. Through the TINC program, we open ourselves up to startups and developers to be able to reach a wider market, as well as validate the problems encountered or predicted from the hypotheses carried out.

Disclosure: This article is a sponsored article endorsed by Telkomsel.

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