Ahmad Zamroni / Forbes Indonesia
Indra Sosrodjojo, 58, is the third generation of the Sosrodjojo family, the owners of the Teh Botol fortune under PT Sinar Sosro. Instead of joining the family business, Indra chose a different path into the software industry, becoming a director at PT Andal Software Sejahtera. “I was born into a family that never worked for other people. My grandfather had his own business, so did my father. So I want to earn money for myself by having my own business,” says Indra.
He started Andal Software in 1988 as a software firm that provided bespoke software for the specific needs of customers. However, the custom-made model was hard to scale because each job was unique and varied depending on the project. Then, in 1992, he changed the focus from a custom made model into a mass market one to increase the sales. Indra got frustrated with this approach as well, since the revenue also was unstable, due to changes in sales outlets.
So Indra decided to change again in 2001 and enter the enterprise software business. Instead of offering the standard one solution for all customers, he offered clients customization, calling a semi custom enterprise strategy. Revenue rose but Indra found it hard to keep up with demand. “We could not deliver software to the customers because we didn’t have enough programmers,” he says. As his costs rose, he had to cut employees and sell assets.
In 2004, Indra changed the strategy again, focusing on making software for human resources and tax calculation for companies. “What we do is make one product that can be sold without customization. We launch a product called Andal Paymaster in 2004. From that we gradually grow,” says Indra. With Andal Paymaster, Andal Software now has 300 customers, up 20% from 2013. Some of its customers are Sinar Mas Bank, Solaria, Sido Muncul and several international customers.
Revenue from the software package strategy is earned the initial sales and then annual subscriptions. Andal Software sells the package for an initial Rp 200 million, followed by an annual subscription of Rp 20 million. With the subscription, customers get an upgrade four times a year and get all new products for free. To grab companies with less than 150 employees, Andal Software has introduced a cloud-based Paymaster in which customers pay only Rp 5.5 million per month.
Indra admits that by using this model, the company has plenty of cash flow. The company also can keep up with the latest technology by upgrading the software package. Now Indra has 35 staff including three programmers. The biggest division is the marketing division. “Actually we are a marketing company,” he laughs.
This year, Indra has changed Andal Software’s marketing strategy from cold-calling potential clients to attracting potential customers to call the company. He does this by giving monthly software training, posting weekly articles on Andal Software’s website, and creating a book about the Andal Software payroll system that can be downloaded from the company’s website. These days, the company gets about 20 calls every month from potential clients.