Chapter 2: Holcim Indonesia - Three core challenges, PESTLE, Ideation, and barriers

Vocabulary flashcards covering the key terms and concepts from the lecture notes.

Disruptive innovation

An innovation that creates a new market or value network, often by offering a simpler, cheaper, or more convenient solution that eventually displaces established products or players.

Appropriation of value from innovation (Teece)

Capturing economic value from innovations through business models, pricing, and intellectual property strategies; the process of turning innovative ideas into profitable outcomes.

Business model navigator patterns

A toolkit of reusable patterns that help organizations rethink how they create, deliver, and capture value.

Change drivers (initiation)

Factors that start or accelerate a transformation process within an organization or project.

Problem seeking solutions

Approach where a problem is identified first, followed by searching for a solution.

Solutions seeking problems

Approach where a solution is devised first, then a problem is sought to apply it to.

Desk research

Non-field research conducted from publicly available sources to gather information.

Conferences

Formal gatherings used to exchange information, network, and gather insights for a project.

Interview major stakeholders

Engaging with key people who have influence or interest in a project to obtain insights and perspectives.

Hype vs. time (Gartner Hype Cycle)

A model showing how new technologies rise in visibility and expectations, then may dip before achieving stable productivity.

Peak of inflated expectations

Early excitement around a new technology or product that creates overly high expectations.

Trough of disillusionment

Phase where initial hype fades and limitations become apparent.

Plateau of productivity

Stage where a technology becomes widely usable and delivers real, sustained benefits.

Readymix (RMX) concrete

Ready-mixed concrete delivered to a construction site, ready for use.

Speedcrete

Holcim’s fast-drying concrete product designed to set within 7 hours to reduce traffic disruption.

7-hour drying guarantee

Commitment that Speedcrete will dry within seven hours; if not, the product is free.

Capex (Capital Expenditures)

Investments in fixed assets (e.g., machines, facilities, IT) intended to support long-term growth or efficiency.

Opex (Operational Expenditures)

Day-to-day operating costs required to run a business.

Black boxing

A strategy of hiding complexity and only showing the outputs or outcomes of a process.

Disintermediation

Removing intermediaries from a supply chain to reduce costs or simplify transactions.

Integrator

A company that performs most steps of a value chain in-house rather than outsourcing.

Dirigerend

A directing or controlling stance in which one party tells others what to do (directive leadership).

Internal consistency

Extent to which a project or initiative aligns with itself across processes and components.

External consistency

Extent to which a project remains aligned with external partners, customers, and stakeholders.

Overcoming barriers

Strategies to address and remove obstacles that hinder implementation of new models or innovations.

Separate company, brand, P&L

Creating a distinct legal entity with its own revenue and profit/loss tracking to manage a venture.

Marketing to scale quickly

Aggressive marketing to rapidly acquire customers and build trust, often including showcases and warranties.

Showcase

Public demonstration of capabilities or products to prove value and gain trust.

Warranty

A promise regarding product performance or durability that supports customer trust.

Trademarks, patenting, blackboxing

Protecting brand and processes through IP rights and confidentiality; using blackboxing to conceal complexity while preserving value.

Cultural innovation

Updating and evolving a company’s culture to support new strategies and business models.

Reduce capex

Minimizing capital investments, often by leveraging existing assets or alternative financing.

Manage human investment

Strategically investing in people, skills, and talent to enable new capabilities.

Pricing and accounting model

The approach to pricing products/services and recording financials to reflect value and performance.

KPI (Key Performance Indicator)

A measurable value that demonstrates how effectively a company is achieving key objectives.

m3 revenue model

Revenue model based on volume in cubic meters sold or processed; pricing tied to quantity.

m2 revenue model

Revenue model based on area or surface measure (square meters), often used for services tied to surface area.

New speedcrete business model

Integrated repair solution for roads: quick-drying concrete with 7-hour drying, separate sales team, and a shift to m2-based revenue with new HR and CAPEX requirements.