Digital Transformation: A Transformational Performance-based Conceptual Model Through Co-creation Strategy and Business Model Innovation in the Industry 4.0 in Indonesia

This paper seeks to portray the conceptual model of ICT companies in transforming their business and organisation capabilities to face Industry 4.0 through co-creation strategies and business model innovations in Indonesia markets. The Indonesian market is unique in terms of its ICT infrastructure, but still left behind compared to other countries. However, the market has tremendous opportunities in terms of digital capability innovations. The strategic management outline used as a framework for this paper. Mediating variables were co-creation strategies and business innovations with distinctive organisational capability as an internal factor and consumer orientation as the external independent factor. The construct of co-creation strategy and transformational performance were discussed. This model of digital transformation was a suitable model for senior leaders to transform digital business capability and academics. Moreover, the model and construct of variable can be used to further develop the theory of digital transformation. Copyright © 2019 Inderscience Enterprises Ltd.