ERP and Big Data-Enabled Business Model Canvas for Sustainable Dairy Cooperatives in West Java, Indonesia

Abstract

Background: The Indonesian dairy industry requires a paradigm shift from traditional practices to digitally enhanced systems that prioritize sustainability and animal health. Smallholder farmers dominate the sector, yet milk quality remains a persistent challenge, with somatic cell counts exceeding national standards and mastitis costing farms approximately €175.20 annually.
Purpose: This study analyzes and characterizes innovative business models that integrate digital transformation technologies, particularly Enterprise Resource Planning (ERP) systems and Big Data analytics, as foundational capabilities for cooperative modernization.
Design/methodology/approach: Drawing upon empirical research conducted in April 2022 at KPS Cianjur Utara cooperative in West Java, Indonesia, complemented by recent developments in digital agriculture, this study presents an enhanced Business Model Canvas (BMC) framework that integrates ERP and Big Data dimensions alongside traditional sustainability and health system components.
Findings/results: The framework synthesizes nine foundational BMC elements with two critical sustainability dimensions and five digital transformation pillars: ERP infrastructure and integration, data governance and architecture, Big Data analytics capabilities, digital platforms and interfaces, and technological partnerships. ERP-enabled cooperatives can achieve superior outcomes in milk quality, production efficiency, and farmer livelihoods.
Conclusion: The proposed framework provides a pragmatic structure for formulating holistic business models that leverage integrated information systems and data-driven decision-making, laying the foundation for transformative change within the Indonesian dairy sector.
Originality/value (state of the art): This study advances the BMC framework by integrating ERP and Big Data dimensions explicitly, drawing upon resource-based view and dynamic capabilities theory, providing a novel tool for dairy cooperative transformation in developing country contexts.

Keywords: sustainable business models, digital transformation, ERP systems, dairy cooperatives, Indonesia