The World Health Organization declared a pandemic of the COVID-19 virus on March 11, 2020, which has escalated from the January 30, 2020 Public Health Emergency Declaration. In Indonesia, the government applied control policy through Large-Scale Social Restrictions Policy (Pembatasan Sosial Berskala Besar/PSBB) and coupled with the new normal policy the COVID-19. This pandemic uncertainty condition is rapidly disrupting business and consumer activity in affected areas and beyond. Indonesia had felt the enormity of this pandemic in various aspects of development due to the Large-Scale Social Restrictions Policy [1-5]. Indonesia's economy slowed throughout the year to minus 5.3% in the second quarter of 2020.and in aggregate growth was minus 2.1 percent in 2020. Amid this maelstrom, the role of banks has come under the spotlight, with the reasonable expectation banks need to provide financial support to those in need during these difficult times. The pandemic Covid-19 has demanded banking institutions to respond in ways beyond previous unimaginable. The bank need to ensure that there are no operational disruptions, engage in collaboration within internal institution, other banks and the government. The Covid-19 crisis is accelerating innovation and spurring a new round of technology investments by wholesale banks. The product that would have normally taken years to produce took place within weeks. These rapid responses constraint banks to respond properly to their customer’ needs in a time of crisis. More than two decades, the traditional business model of wholesale banking in developed markets was clearly defined and stable. However, the segment has come under pressure in recent years, amid intensifying competition, technology, innovation, and weak performance in some markets. The “lend and cross-sell” model business transaction banking has proven difficult to be acquired for many banks, the role of the bank was clear and unquestioned. Concerning this condition, the competition among the banks seemed tight. Some of Bank has developing their strategies to develop their main products saving and lending, developing digital transaction banking, partnering with potential companies. As results, the competitors successfully grow their saving and lending percentage during 2021. BETAPEN has been merged with MITSUO for three years Ever since that, the expectation to fully integrate the needs of wholesale banking segments was still below the target. Starting from early 2020 the growth of saving   and loan   in BETAPEN  tend  to decline  until  May 2021 (Figure 1,2) and comparing to other bank the performance BETAPEN performance need to be improved (Figure 1,2).

This objective of this research can be described into several points, to identify the current new products development’s process, to discover improvement for the new products development’s process, to build the implementation plan of the improved product’s development process [6].

Figure 1: Growing funding and Loan year on year

Source: BETAPEN Virtual Town Hall, 2021

Figure 2: BETAPEN Loan disbursement and Growing Loan June 2021

Source: BETAPEN Virtual Town Hall, 2021

Transaction banking (also known as Transactional banking) and Supply chain can be defined as the banking services that has a significant role to play in the functioning of a corporate or a banking institution by enabling the secure flow of money from one country to another (also known as cross-border payments), trade transactions, risk reduction, cash flow management services, and security to improve relationships between banks, customers and partners [7-9].

Systemic Design as Integrating Systemic and Design

Systematic design is a way to work, act, reflect and learn together. Systematic design is considered in terms of situations characterized by conflicting values, complexity, uniqueness, and ambiguity of goals . Systematic design captures value conflicts between stakeholder groups in order to develop a broader new perspective on existing challenges and common standards frameworks. New perspectives can unleash the potential for discontinuous improvement and substantial innovation. With systematic design, users can significantly advance the most complex tasks by quickly transforming creative breakthroughs into concrete actions to improve the situation and be proactive in changing situations. A process is introduced to adapt to [10-14].

Shimon Naveh’s theory of systemic operational design, its origins systemic design methodology presented here although the terminology has been modified as a result of reflective practice in other settings. The methodology is consists of four main activities: Inquiring, Framing, Generating, and Reflecting [15].

• Inquiring  means reaching outside  the team's existing knowledge base  to bring external references to the design studio. This can be done through ethnography of the group of interest, literature research, questions to experts in the subject area, and excursions. 

• Framing is a framework, a perspective that can understand and address indeterminate and undefined problematic situations. It provide a guide for selecting, interpreting, organizing, and understanding complex realities to identify, analyze, persuade, and act. A common framework maps problematic situations or frame reflections and iteratively redesigns problematic situations by selecting and redesigning systematic design research perspective changes. The goal of framing is a common reference frame, which is a prerequisite for common meaning and common understanding within a team. 

• Generating means shifting the focus from understanding to prescribing what it should be. Questions of what ought to be engage values. Based on a common framework, the team develops ideas to uncover potential situations in order to maintain and maintain the value of stakeholders. The design team gradually takes shape by embodying the concept. Highlighted the ought problem in that what ought to be cannot be directly inferred from what is.  By visualize it, the team transforms abstract concepts into concrete forms with discrete and special extensions of space and time. The gap between expected and actual results provides an opportunity to learn (especially) even if the initial intervention seems to have failed. This learning can be fed back to future iterations of system design. This generative act has multiple purposes. It should not only improve the stakeholder situation, but  also stimulate the learning of the team and stakeholder. 

• Reflecting is a touchstone for all other activities in systematic design. Thinking about actions gives teams a better understanding of what team did and how their thoughts acted in one way and not in another. Reflection, unlike introspection, requires a certain distance and  an external reference, reflective tape. This allows for a more important perception of oneself by the difference. Recursive practice can transform itself and continuously improve at both individual and team levels. Reframing allows for reframing, reformulation, and learning from generated actions. 

Qualitative research is used to reveal the trends in thought and opinions and dig in into the problem. This type of research is intended to have better understanding and interpreting social interactions. Regarding this analysis researcher decided to use In-Depth Interviews for wholesale banking BETAPEN customers. In-Depth Interviews are useful for detailing information about a customer’s thoughts and behaviors or want to explore new topics in detail. Interviews are often used to provide context to other data (such as result data) to better understand what happened in the program and why. Moreover, In-Depth Interviews are able to distinguish individual (as opposed to group) opinions about the product.

FGD (Forum Group Discussions) with related teams are conducted so that participants can agree or disagree with each other, what the group thinks about  the problem, the scope of opinions and ideas, and the contradictions that exist in a particular place and provide insights on variations. A group in terms of beliefs, experiences and practices [16,17,18,19].

Inquiring is an activity which allow the team to connect with maintenance internal cohesion and their context. The inquiring process for this study conducted by using empathy map. Empathy map is a tool to visualize a person’s perspective in order to better empathize with customer by capturing what a customer say and do, think and feel, hear and see, as well as their hopes fears in their own words. To visualize it, there are three personas that being identified based on interview. After understanding customer’s empathy map the list of concerns are including:

• The administration product registration procedure takes time and complicated

• Application is not user friendly

• Branch sometimes do not understand the process to register a product i.e. basic bill payment is limited

• It takes a lot time if request a new feature or product

• Lack of application usage

• Feels less engage with the bank compare to other banks

• No uniqueness compare to other banks

Continuing to framing, in order to create a frame, causal loop diagram is used to map the system structure in order to try to understand system behavior. These diagrams are also referred to as influence diagrams. Causal loop diagrams allow groups to visualize the systemic structure underlying the observed patterns of behavior and events. Leveraging points where interventions in a complex system will be more effective and efficient can be identifying. The process of causal loop diagram consists of listing key variables, showing influence with arrows, label the influence as proportional or inverse. Moreover, regarding the brainstorming results by using causal loop diagram understanding map the list of key variables are including [20,21-25]:

• Clarity vision

• Quality of research product

• Number of product initiative

• Quality of requirement

• Capability of software

• The duration of project

• Affectivity time to market 

• Ability to connect with partnership system 

• Product development budget

• Marketing budget

• The quality of human resources employee

• The kit tools to promote the product. 

• Number of Partnering with third Parties 

• Regulation strictness

• Number of customer

• The traffic of transaction. 

• Income that bank can earn 

• The quality of product

• Bank reputation 

• Number feedback about the product

• Quality after service

• Quality of customer engagement

• Market share

• Competitor sales number 

• Number of product competitor 

According to the analysis after understanding customer’s empathy map and having brainstorming regarding to key variables of new product development process by causal loop diagram. The author linking between customers pain and what are the key variables that play role in customers pain to find a root problem. This table below summarizes the result and furthermore those processes generate several initiatives, those are presented in Table 1.

Improvement New Product Development’s Process.

Creating New Product Idea Generation

COVID-19 is accelerating these demands: Consumer behavior has also changed and we are thinking about new tools and technologies. Customers of all ages are becoming "digital first," questioning the traditional banking model of individual, often unintegrated channels. Therefore create new product idea generation is developed to address one of the main business issues which occurred in BETAPEN Wholesale transaction banking. Starting with create a compelling customer experience vision, removing internal silos, doing, setting metrics and initiative objectives, and open banking

Create a compelling customer experience vision

A need to define what the things are that makes something different from other competitors. The uniqueness will help to have clearer identity in the mindset of customer. Having deep understanding what kind of customer that being served. Moreover customer journey mapping or initiative road map can help to identify customer.

Table 1: Summary of Organizational Challenges Identified Through Inquiring, Framing, Root Problem Analysis, and Idea Generation

Governance

With the internal silos removed, the ability to get a 360-degree view of the customer at best difficult, making it nearly impossible to provide a personalized solution. Governance involves executives regularly reviewing customer experience programs and making investment decisions to improve. Once understanding the customers’ journeys and have a compelling vision for the future.

Build Metrics

Researchers are strongly encouraged to use the journey mapping process to understand customer value and create metrics that reflect it. It comes from customer-based Key Performance Indicators KPIs, such as customer churn rate, customer usage, customer lifetime value and many more. These indicators track the true value that a company is providing to its customers. Silo destruction is one of the most demanding customer experience initiatives. But the competitors are starting down this journey.

Open Banking

Open banking is a great opportunity for banks to better integrate  with a variety of financial and non-financial services, allowing clients to build a network of tools to help reach thefinancial goals [20]. Future banking platforms will combine insights from multiple financial institutions. Open banking also allows banks to become the center of the consumer's overall lifestyle. Create an open ecosystem where consumers can choose the services want to be linked to, and those services don't have to be economical [21,22-25].  

Agile Methodologies

Agile methodology is appeared as solution due to limitation in term of acceleration, simplicity, flexibility in current new products development’s process. Regarding to customers interview It takes a lot time if request a new feature or product therefore it impacts to lack of application usage. Moreover there was a need for a new approach that can help product development be more flexible, responsive, and adaptive.

The Lead User

The observation found that the root problem of customers who feel less engage, and feel difficult to know the uniqueness of BETAPEN due to lack of customer hearing, the customers feedback is not accommodate properly therefore the understanding of customer is not optimize and often difficult to anticipate, understand, and determine. Yet proper customer hearing is critical to successful outcomes of the innovation process. As life product cycles shorten and the technological competitive environments are changing fast, product-based organization has to transform new technologies into innovative products and accelerate the processes. In parallel, the product development teams need to make sure that customer needs are met. However to cope with this problem the lead user method is the way to enhance it. The lead user approach allow to be more proactive and having orientation to the future which is not limited to rearview.

Reflecting

After realizing what are the things that need to be improved and what can be done to improve. It is a fact that there is always consequent regarding any improvement that has been made. Discussing about creating new product idea generation it involved many departments to create. Commitment of each department should become a priority. Because to set a customer experience vision and removing internal silo it involve some departments which basically has different priorities. Trying to open up any opportunities partnership with finance or non finance partnership to increase product value for customer should be involved with related teams such as partnership engagement, risk assessment, product development.

Agile system has many abilities to cope with the issue in new product development’s process however there are many things to be considered in term of mitigation risk. Agile processes dependent on experts due to the tacit knowledge becomes one of main factor key success of agile projects. In addition, informal evaluation methods for agile processes may not be sufficient to determine the quality of safety-critical systems.

As a part of customer engagement lead user should be following with the reward to customers who done it therefore customer have motivation to do it. in creating the proper metrics partnering consultant company will may need to involved therefore the measurement result can be more objective. Doing interview, mail survey or analyzing trend it should be done properly not only as ad hoc project but need to put in as one mandatory assignment of involvement team. Moreover setting success indicator to detect what are the objectives to be improved should be discussed.

As explained the pandemic forced banking institutions to respond. The bank need to ensure that there are no operational disruptions, engage in collaboration within internal institution, other banks and the government. The pandemic has necessitated a remarkable acceleration in bank operations that demanded increased pace, alignment, and performance. BETAPEN wholesale banking in term of new product development is struggling to increase automation levels, consolidate platforms, and transform to a more modern environment. This product development leans on “relationship banking” and “cross-selling”. However, the transaction banking customers segment is in a tight corner amid intensifying innovation, competition, and technology. Weak performance in some market while the “lend and cross-sell” model business transaction banking has proven difficult to be acquired for many banks, the current new product development’s process in BETAPEN wholesale banking has not properly accommodate the customer’s needs which resulted in various negative impact both to their own customer and growing of funding and loan in BETAPEN Wholesale banking.

The improvements can be done for new products development’s processes in the emergency Covid-19 are:                               

• Regarding the customer interview result who has pain about the administration product registration procedure takes time and complicated, application is not user friendly, branch sometimes do not understand the process to register a product, the application feature is not integrated is due to lack new product idea generation. Moreover BETAPEN wholesale banking needs to create more new product idea generation by following these solution starting with create a compelling customer experience vision, removing internal silos, doing, setting metrics and initiative objectives, and open banking.

• Discussing about why it challenge for having new product and lack usage application is because developing the software in wholesale banking, waterfall method is used. The waterfall method which is the linear approach, dividing documenting requirements until product delivery into a series of events from. The limitation in current developing system has damage to the ability of meeting the customer requirements need, modification to changes and management prioritization therefore the current system which is waterfall system need to be transformed into agile system due to the capacity of agile system can cope with the limitation of current system.

Lack of engagement and feel difficult to know the uniqueness of BETAPEN is due to lack of customer hearing, the customers feedback is not accommodated properly therefore the understanding of customer is not optimize and often difficult to anticipate, understand, and determine. Yet proper customer hearing is critical to successful outcomes of the innovation process. Moreover, the lead user is able to help BETAPEN Wholesale understanding and determining the customer.Isi dari simpulan hendaknya merupakan jawaban atas pertanyaan dan tujuan penelitian. Simpulan dipaparkan dalam satu paragraf, bukan point-point, dan diungkapkan bukan dalam kalimat statistik. Simpulan dilengkapi dengan satu paragraf saran hasil penelitian.

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