Innovations for Declining Product to Extend Product Life Cycle (Case of TelX International Call Service Vinci)

Change is rapid and unpredictable today. There are many emerging innovation that is used in society. There are many old and quite large today find themselves in business activities that have little promise for future growth and profit. Every firm need to manage their technologies and products, because the world is changing and new technologies emerge and the trade is shifting dynamically. Firms need to adapt, particularly in digital and telecommunication industries. Technology of internet changes the way of competition and value-creating model. TelX International Call Service Vinci is one of PT TelX product to make an international call directly. This product is facing its decline phase according to product life cycle process. People start to leave TelX International Call Service Vinci and even do not know this product. However, this product can still give revenue for PT TelX. But, that revenue shows declining trend from over previous years. Innovation is needed to create more value for TelX International Call Service Vinci and extend the life of this product. This research aim is to identify the factors that can influence the decline of TelX International Call Service Vinci and determine the innovations that are suitable and can be done for this product. This research uses qualitative and quantitative method. Qualitative data is collected from interview with Manager Regional Wholesale Service Telecommunication and observation in PT TelX. Quantitative data is collected through questionnaire from 70 respondents. Secondary data is collected from annual reports, journals, and books that support the research. Frameworks that used in this research are product life cycle framework and synergic innovation management model. Decline of TelX International Call Service Vinci is caused by several factors. First is because the product has entered its mature stage. Second cause is less intensive marketing process from PT TelX for this product. Third is caused by the characteristic of customers. Low switching cost and niche market makes this product has little sales. Last factor is caused by other products that use newer technology for their products, for example the usage of internet. Innovations that are proposed for TelX International Call Service Vinci are change the packaging of TelX International Call Service Vinci and create attractive user interface for this product, partnering with VoIP (Voice over Internet Protocol) provider to create better service, and sell TelX International Call Service Vinci in bundle with other Telecommunication services.