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Promoting Value Co-creation Process within Garut Leather Jackets Industrial Cluster using Agent-Based Modeling and Simulation Methodology. Dhanan Sarwo Utomo School of Business and Management Intitut Teknologi Bandung. OUTLINES. Introduction Objectives Methodology Case Introduction
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Promoting Value Co-creation Process within Garut Leather Jackets Industrial Cluster using Agent-Based Modeling and Simulation Methodology DhananSarwoUtomoSchool of Business and Management IntitutTeknologi Bandung
OUTLINES • Introduction • Objectives • Methodology • Case Introduction • General Model Building Process • Experiments • Conclussions DhananSarwoUtomo
INTRODUCTION DhananSarwoUtomo
INTRODUCTION (2) DhananSarwoUtomo
OBJECTIVES DhananSarwoUtomo
RESEARCH HISTORY DhananSarwoUtomo
Methodology (1) • The first step in agent-based research methodology is to identify the phenomenon (Gilbert , 2008). To study service science, the researcher must identify service systems: • Service: Who are the actors involved in the service system being studied? What is the position and status of each actor in the service system being investigated? What are the tasks performed by each actor? • Value: What indicatorsthat can characterize the performance of the service system being studied? • System: How is the relationship between one actor to another actor? What is the role of each actor to other actors? • Resources: What are the resourcespossessed by each actor? Whether the attributes possessed by each actor are fixed or dynamic? What are the factors that influence the attributes of each actor? • Interaction: What decisions can be taken by each actor? How does an actor's decision may affect the attributes and decision of other actors? In identifying the service system being studied, collecting a sufficient body of theory is very important. By the way, any theories are better than none (Gilbert, 2004). DhananSarwoUtomo
Methodology (2) • Define the scope of the model Specify clearly all assumptions that will be used in the model. • Simulation design Define, the types of objects in the simulation are defined. Usually, there will be two types of objects in the simulation namely, • agent • environment. Attributesare characteristicsor featuresof an object (Gilbert, 2004). An attribute can serve as object’s identity or, varies over time. • Design interactions among objects A list all possible actions that can be carried out by each object is created (Gilbert, 2004). Then, rules that are used by an object to execute each action must be specified. DhananSarwoUtomo
Methodology (3) • Validate the model: • Internal validation • conceptual validity, • verification process. • external validation(testing accuracy) • Virtual experiment in order to generate some hypotheses or explore the dynamic of service system. DhananSarwoUtomo
CASE INTRODUCTION • Leather industries in Sukaregang, Garut West Java, have made Indonesia one of the world major leather exporting countries. • Its products (wallets, bags, shoes, jacket, up until the sofa) is not only popular in Indonesia but also in foreign countries. • Garut’s Leather Jacket has the international market, such as Singapore, Malaysia, Taiwan, Japan, and Australia. DhananSarwoUtomo
AGENTS IN GARUT LEATHER JACKET INDUSTRIAL CLUSTER Buyer Networking Design, quality, money Finish products Policy regulation, fund Design, quality, money Government & NGO Outlets Craftsmen Finish products Counseling, training Network Association DhananSarwoUtomo
AGENTS DEFINITION Types of agents: Seller Buyer Craftsmen DhananSarwoUtomo
AGENTS ATTRIBUTES Trait 1 -10 the higher the more difficult to make seller Craftsman Features 1 - 10 Production skill: craftsmen capability to produce the desired traits of a product feature. Buying Power : random 10 -100 Expectation : the trait of each leather jacket features they want Buyer DhananSarwoUtomo
GENERAL SIMULATION MODEL Buyer vs Buyer Exchange Leather Jacket Trends / Information Buyer vs Seller Product evaluation Choose product to buy Buyer vsCrafstmen New Model to Produce & Coaching Prob Coaching Finished product Memorize the most popular feature & Buyer expectation Prob Consumer involvement DhananSarwoUtomo
EXPERIMENTS The experiment process aims to test model sensitivity. These experiments are conducted to test the impact of probability to give coaching and the probability of consumer involvement, to the number of total sales. DhananSarwoUtomo
CONCLUSSIONS DhananSarwoUtomo
THANK YOU DhananSarwoUtomo