HOW DIGITAL BUSINESS INNOVATION MONITORING AND DIGITAL MARKETING OPERATIONAL EXCELLENCE CAN STIMULATE ORGANIZATIONAL PERFORMANCE

Abstract:

Background: The increasing development of digital technology and changes in the behavior of the younger generation of customers encourage companies to carry out Digital Transformation in order to improve company performance and survive in the face of competition. The purpose of this study is to determine the effect of Customer Experience Management on Marketing Performance mediated by Digital Business Innovation and Digital Operational Excellence in the ICT (Information and Communication Technology) industry in Indonesia. Methods: Using a quantitative approach, this research was conducted in two stages of study to fulfill the research objectives, namely exploratory and explanatory, which focused on companies operating in the Greater Jakarta area. A total of 132 samples were taken using proportionate stratified random sampling method in three groups of companies. Results: The results showed that Customer Experience Management formed by two indicators, namely virtual environment and service interaction, had no significant effect on improving marketing performance, which was formed by two indicators, namely financial performance and non-financial performance. Customer Experience Management has no significant effect on Marketing Performance through the mediation of Digital Business Innovation. Customer Experience Management has a significant effect on Marketing Performance through the mediation of Digital Operational Excellence. Digital Business Innovation has no significant effect in increasing Marketing Performance. Digital Operational Excellence have a significant effect in increasing Marketing Performance. Conclusion and implications: Based on the results analysis in the Information and Communication Technology industry in Indonesia, it can be concluded that Customer Experience Management, which is formed by two indicators, namely virtual environment and service interaction, does not have a significant effect in improving marketing performance.   However, based on the results analysis, technology support is the most powerful item in shaping customer experience management variables, while user experience is the weakest item in shaping customer experience management.  Moreover, while Customer Experience Management has no significant effect on Marketing Performance through the mediation of Digital Business Innovation, this study found that solutions are the most powerful item in shaping the Digital Business Innovation variable, while offering is the weakest item in forming the Digital Business Innovation variable. Customer Experience Management has a significant effect on Marketing Performance through the mediation of Digital Operational Excellence, operation leadership is the most powerful item in shaping the Digital Operational Excellence variable, while security is the weakest item in forming the digital operational excellence variable. Customer Experience Management has a significant effect in increasing Digital Business Innovation and Digital Operational Excellence, and Customer retention is the most powerful item in shaping the Marketing Performance variable. The finding of this research can be used as consideration for managers and policy makers in public organizations to set the appropriate way to enhance Customer Experience Management and Marketing Performance, especially their roles in Digital Business Innovation and Digital Operational Excellence that are relevant and very much needed in today’s world. Limitations and Recommendations: This study discusses the topic in specific industries, hence the used model in this study can be replicated, developed, or perhaps retested in different industries and sectors to strengthen generalization or deliver meaning divergence. Further research development can be carried out in other industries as well, so the condition of each variable for other types of industries can also be conducted effectively.