Published at : 28 Jul 2023
Volume : IJtech
Vol 14, No 5 (2023)
DOI : https://doi.org/10.14716/ijtech.v14i5.5299
Bambang Prasetya | Research Center for Testing Technology and Standard, National Research and Innovation Agency (BRIN), Gdg 417, BJ Habibie Science and Technology Park, PUSPIPTEK, Setu, South Tangerang, Banten, 15314, |
Yopi | Deputyship of BRIDA, National Research and Innovation Agency (BRIN), Jl. MH Thamrin 8, Jakarta 10340, Indonesia |
Biatna Dulbert Tampubolon | 1. Research Center for Testing Technology and Standard, National Research and Innovation Agency (BRIN), Gdg 417, BJ Habibie Science and Technology Park, PUSPIPTEK, Setu, South Tangerang, Banten, 153 |
COVID-19,
which hit all countries in the world at the end of 2019, has disrupted various
aspects of life, social, economic, and work model in organizations such as
government organizations, private organizations, and businesses. In terms of a
supply chain, the various activities are production, processing, distribution,
and consumption. Many efforts have done to overcome this situation, not only to
combat the pandemic its selves but also to the resulting impact in the
short-term, middle-term, and long-term, national-wide or locally. In the course
of time, there are still a lot of risks that must be well managed and mitigated
properly. On the other hand, there are also opportunities to open innovation
based on the lesson learned from the COVID-19 pandemic. This paper describes
the role of risk management and standardization in supporting innovation in the
new normal based on lessons learned during the COVID-19 pandemic. Key factors
affecting risk management and standardization on the innovation are identified
and analyzed. Some recommendations for improvement based on risk management and
standardization are also summarized. The method used in this review is
descriptive-analytic based on literature studies from several scientific
journals, and publications released by international organizations,
associations, and government policies.
Innovation; Lesson learned; New normal; Risk management; Standardization
The multidimensional
crisis caused by the Coronavirus (COVID-19) has caused vulnerabilities in
various aspects of political, health, social, economic, industrial,
educational, and other life. The dynamics of declining business performance,
decreasing income at the community level, business people,
increasing unemployment, and the potential risk of poverty for most of the
population. Although in many countries, the impact of the pandemic and its
magnitude is still not known with certainty. However, there has been definite
progress in several countries, including Indonesia, from September 2021 until
now.
The development of
the health crisis that impacts the social and economy at this time has forced
several countries to change the strategic plans that have been previously set
by adjusting emergency response policies that mobilize all resources in
overcoming the Covid-19 pandemic. After several months of the emergency
response period, the Indonesian government began to try to implement the new
normal (new normal life). The risks the public sector faces in the new normal
era are increasingly diverse. Protocols to prevent the spread of the virus are
still enforced and continue to be encouraged in every public service procedure
so that they can be implemented during normal situations. Because no country in
the world has experience in dealing with pandemics, organizations in the form
of companies or in the form of state/government institutions require referrals.
Simultaneously, economic conditions, especially businesses including Small and
Medium-sized Enterprises (SMEs), must be ensured to be recovered. To achieve
this goal, implementing risk management and several standards to support
innovation in the new normal will be significant. There are many publications
reported on the identification of risks affected by the dynamic of the
pandemic, including post-pandemic (Reis et al.,
2021). However, risk identification and assessment followed by
continuous improvement in systematic recovery from pandemics based on
comparable platforms such as international standards are still lacking. Siegel (2021) reported on a dynamic risk-based
approach to managing a pandemic and suggested a need to revisit risk
assessments and business impact analyses, the assumptions and time frames on
which they are based, and the plans that they have generated (In this review
will report the role of risk management and standardization based international
standard for supporting innovation in new normal based on lesson learned during
pandemic COVID-19. The method uses description analysis based on secondary data
from a series of publications from scientific journals, government
policy, and business actor publications.
Although each viral pandemic event has
different characteristics, such as the 1918 flu pandemic and the 2003 SARS bird
flu pandemic, the control is generally classified into several actions, each
with a different level of risk. At the first level, the action taken is the use
of Personal Protective Equipment (PPE). At this level, the use of masks,
washing hands, and maintaining distance are important keys, and this is the
initial stage of prevention. The next level is controlled with administrative
control. At the stage in Indonesia, for example, the implementation of
restrictions on movement and activities of people such as LSSR (Large-Scale
Social Restrictions), setting office hours, Work from Home (WFH), and Work from
an Office (WFO). Third, at the engineering controls level, control is carried
out by providing infrastructure such as facilities for the isolation of
infected people and provision of treatment facilities. At the fourth level,
substitution is carried out; namely, the act of removing dangerous pathogens
(hazard), and the fifth level is the elimination action which aims to eliminate
the pathogen (AVMA, 2020).
In evolving prevention action, the
utilization of vaccines plays an important role. A considerable number of
SARS-CoV-2 preventive vaccine projects were initiated shortly after the
reporting of this virus, including technologies that generate inactivated virus
vaccine, viral protein subunits vaccine, messenger RNA (mRNA) vaccine, DNA
plasmid vaccine, and recombinant human adenovirus type 5 (rAd5) or simian
adenovirus type 26 (rAd26) expressing SARS-COV-2 spike protein, a non-viral
replicating vector expressing SARS-CoV-2 protein vaccine, and also replicating
viral vector expressing SARS-CoV-2 protein vaccine. So far, there have been at
least 30 announced vaccine projects globally, and vaccines derived from mRNA,
expression using recombinant adenoviral vectors, and inactivated viruses have
already gained regulatory approvals in certain countries (Folegatti et al., 2020; Jackson et al.,
2020). Wang, Horby, and Hayden (2020) gave a systematic review of therapeutic development and application,
including the following areas: epidemiology, virology, and pathogenesis,
diagnosis, and use of artificial intelligence in assisting diagnosis,
treatment, and vaccine development. A critical review of globalization and the
outbreak of COVID-19 was reported by Farzanegan, Feizi, and Gholipour (2021). The transition from the pandemic to the
endemic phase was analyzed by Biancolella et al.
(2022).
In terms of the supply chain, especially
the food system, which can use as an indicator of people's behavior during the
pandemic, there has been special
attention to food standards, application of established principles of
environmental sanitation, personal hygiene, and food hygiene practices
help reduce the possibility of harmful microorganisms that threaten the
safe food supply, regardless of whether the food is sourced from intensive
agriculture, is a small stakeholder (WHO, 2015).
To date, all food industry organizations must strictly follow the Food Safety
Management System (FSMS) protocol provided by the authorities based on the
principles of Hazard Analysis Critical Control Points (HACCP) and must be
continuously updated in response to new evidence of the virus when necessary (WHO, 2020). Moreover, the outbreak has pushed
consumers out of their normal routines by adopting habits and behaviors many
anticipate will continue in the long term. One trend is increasing awareness of
smart and responsible consumption. Consumers are trying to limit food waste,
shop more consciously, and buy more sustainable choices with minimal
environmental impact (Kemenkeu, 2020; MLHR, 2020).
To combat toward COVID-19 pandemic and to
recover the economy, the Indonesia government delivered policies such as
enabling the environment, improving productivity and enacting the job creation
law. The first activity focused on improving the business climate, increasing
competitiveness, and economic resilience through food, energy, and infrastructure
improvements. To increase productivity, it is focused on improving business
sectors that have the potential to support the performance of the national
economy, including the revitalization of manufacturing, and tourism
development, as well as empowerment and formalization of micro, small and
medium enterprises. As an effort to improve the regulation, the implementation
and enforcement of job creation laws become one of the vehicles for harmonizing
various laws and existing regulations. Standardization and conformity
assessment play an important role in this harmonization. One of the most
important aspects of the harmonization of regulations is the clustering of
types of businesses providing goods and services based on the level of risk.
The greater the risk, the more stringent regulations are carried out, for
example, inspection, certification by third parties, distribution permits,
etc., while for low-risk products, only self-declaration and registration are
required (BSN, 2021; Kemenkeu, 2021).
Even though uncertainties still vary in
every country in the world, some plans must be prepared, including the
incentives policies for investment and strengthening of trade both for the
domestic and global markets. Policies for combating and preparing for a new
normal in the post-pandemic era to support innovation based on lessons learned
during pandemic synergies between government and stakeholders will endorse the
possibility of creating opportunities for innovation, including
incentive policy for supporting the digital platform (Zaremba, Kizys, and Aharone, 2021; Sheth, 2020). In line with this
effort, risk management will play an important role. One important risk
management used in several enterprises, organizations, and government
institutions is ISO 31000: 2018 (ISO, 2021).
Implementing risk management principles can help minimize the impacts of the
COVID-19 pandemic and navigate the risks (and opportunities) associated with
socio-enviro-economical change during the pandemic. According to UNIDO (2020), the role of standardization is very
important in dealing with the COVID-19 pandemic. Standardization, including
part of the quality infrastructure, helps reduce the negative impact of the
pandemic crisis and ensures the provision of essential services. Quality
infrastructure, where standardization and conformity assessments function to
ensure the need for relevant standards, accurate measurements (metrology),
guarantees reliable test results through accreditation. Risk management and
standardization play an important role in innovating the new normal based on
lessons learned during the pandemic (ISO, 2021;
Muhyiddin and Nugroho, 2021; UNIDO, 2020).
WHO
introduced a guideline for doing a review to respond to a dynamic situation
like the COVID-19 pandemic, which has become a pragmatic alternative to
comprehensive systematic reviews (Tricco et al.,
2017). In this review, some critical points must be considered, such as
a need for a clear research protocol derived from a needs assessment and
defining the scope. The approaches used for the study are screening and
selection, data extraction, researcher experience, and available resources. In
term of rapid reviews usually use a descriptive synthesis method rather than
quantitative meta-analysis (King et al.,
2022; Pluddemann et al., 2018).
According to Tricco
et al. (2020), there are eight steps: (1). question and scope,
(2). literature search, (3). citation screening, (4). data abstraction, (5).
methodological assessment, (6). synthesis, (7). dissemination, (8). updating
and back to Step 1. The method used in this review is
descriptive-analytic based on literature studies from several scientific
journals, and publications released by international organizations,
associations, and government policy. The collected empirical evidence and
statistics have been compiled, validated, analyzed, assessed, and used for descriptive-narrative
formulation and recommendation (Table 1).
Table 1 Research
Stages and Methods
Figure 1 Research Design and Dissemination of Recommendation
The formal legal method was used to
analyze international instruments governing relations in the food supply and
security field published by international organizations such as FAO, UNCTAD,
ISO, and WHO. The government's strategies and policies in dealing with
the pandemic, including economic recovery policies, are discussed. The
dissemination of recommendations is illustrated as shown in Figure 1.
3.1. Socio-economical Dynamic
and the Opportunity for the Innovation
During the pandemic, there have been
changes in the business process in education, transaction, trade, meeting, the
supply chain model, and people's behavior. Some significant changes in Figure 2
are, among others: public awareness of health, concern for the
environment, creative ideas of society, innovative packaging, healthy
lifestyle, consumption of functional food, nutraceuticals, using E-commerce
applications, online shopping, distant learning, teleconference-webinar, crisis
governance, emerging non-thermal technology, biosecurity arrangements,
traceability of food and products, concern on standardization and traceability.
Based on this change and the lesson learned during the pandemic, it is open to
the opportunity to make innovation in the new normal. Reflecting activities in
the new normal will have a lot to do with the subject of optimizing the supply
chain, mitigation of environmental impact, valorization of bio-resources,
improving the consumer's health, reducing waste and foods loos, more protecting
the consumer, more intensive digitalization through utilization internet of
things, communication technology,
machine services, automation/robotics and other matters related to
industry 4.0 and society 5.0 (Galanakis et al., 2021; Prasetya 2021; Asvial, Mayangsari, and Yudistriansyah 2021; Yatmo et al., 2021; Candra, Ayudina, and Arashi, 2021; Agus et al., 2021).
Figure 2 Potential
socio-dynamic change for innovation in the new normal time
According to Contractor (2022), there
are still many unpredictable socio-economic conditions and trends in the new
era. Therefore, identification of Volatility, Uncertainty, Complexity, and
Ambiguity (VUCA). In this situation, it is necessary to use more appropriate
and advanced information to strengthen the interconnecting between the
producer-processing-distribution-retailer- the consumer. At the same time,
utilization and implementation of a safety-healthy protocol, clear regulation
and public policies, and other requirements to build trust between society,
consumers, industries, and regulators.
The pandemic prompted
extraordinary interest in innovation, including calls to inspire, initiate and
coordinate innovations beyond those already designed and implemented. Some of
these initiatives were global or national in scope. The innovation is mostly
very clear in developing a new product, service, process, and business
model. Available digital and information technology infrastructure
affects the acceleration of change in a business model and service.
The business model in
several sectors, like education, trading, logistics, etc., developed
rapidly. While innovation in the product consumes more time because the safety
aspect and technical performance need a serial test to be completed with a
standard or another requirement. In Indonesia, innovation during the pandemic
focuses, in general, on the field of medical care. In order to support efforts
to prevent, spread, transmit, and/or overcome the increasing outbreak of Corona
Virus Disease 2019 (COVID-19) in Indonesia, the government, through the
Ministry of Research and Technology/National Research and Innovation Agency,
plays an active role in integrating, aligning, coordinating, and synergizing
research and innovation programs to deal with the COVID-19 pandemic quickly.
One of the efforts is to conduct research, development, assessment, and
application activities relatively quickly. There are five technological
innovation programs/groups from the COVID-19 Research and Innovation Consortium
Team for the prevention of COVID-19, namely Prevention, Screening and
Diagnostics, Medical Devices and Supporters, Drugs and Therapy, and
Multi-centre clinical trials (BRIN, 2020).
In terms of the global
supply chain, about 30 percent of Indonesia's non-oil and gas imports come from
China, which is the largest import. The dependence on industrial raw materials,
which is unavailable during the pandemic, has hit various important industries.
Based on this fact, using the local component or raw material to support
national industry with a certain economic and technical feasibility adjustment
is very reasonable. This will endorse the research and technology development
to support the utilization of local potential. It is also recognized that the
users, especially the manufacturing industry, still need time to adjust to
their existing manufacturing processes and technical and economic feasibility.
Another benefit of the effort to be self-sufficient in raw materials is the
creation of new supply chains, business fields, and employment opportunities,
and in the end, it can strengthen the national industrial structure. This
condition will also invite global partnerships in research and innovation.
These activities will also significantly drive all research centers and
university and private sectors to contribute to research, development, and
technical-economical assessment in various aspects of production, such as
processes, manufacturing, testing, and new product development. To support this
effort, it is necessary to analyze data related to industrial needs and data on
the development of imports of raw materials. Based on the very valuable
experience during the pandemic that the capability of domestic research and
innovation can make remarkable innovations in health care in other sectors will
also got a positive impact on accelerating economic recovery and strengthening
national competitiveness and resiliency.
The lessons learned by
fellow pandemics can become the basis for new normal habits. In line with this,
the omnibus Law, Law No. 11,
the year 2020, Job Creation Law (Job Creation Law,
UUCP) (MLHR,
2020). which have derivative
regulations for implementing the Job Creation Law are 194 Ministerial/Agency
Regulations, and 22 Ministerial/Institutional Regulations are directly related
to the Online Single Submission (OSS) System. One of the important aspects
of this system is risk-based assessment for providing business permit
licensing. The innovation for this system is the change from permission-based
to risk-based. This means that business licenses are grouped based on the level
of business risk, and this level of risk determines the type of business
license. The lower the business risk, the easier and faster the
process. In this case, the role of standardization and conformity
assessment play an important role (KAN, 2020).
The Job Creation Law pays
special attention to low-risk for Small & Medium-sized Enterprises (SMEs),
which are more than 60 million SMEs. A single license in the form of a Business
Identification Number (NIB) already includes the national standard (SNI) and
also Halal Product Assurance Certification (SJPH) in terms of food-based
products and or services. The business actors will be facilitated and fostered
by government institutions, the National Standardization Agency (BSN) related
to SNI, the Halal Product Guarantee Agency (BPJPH) related to SJPH, and
sectoral public service Institutions. SMEs are very diverse and generally use
the potential of local resources, which are relatively available in district
areas. The assistance of fostering SMEs includes access to information sources,
market information, regulations, places for consultation and assistance,
capital incentives, capacity building in online use, use of digital-based
technology for marketing, and communication with partners (Utama et al., 2021; Zutshi et al., 2021;
Prasetya 2020).
3.2. The Role of Risk Management in Response
to the COVID-19 Pandemic and the New Normal
During the COVID-19
pandemic, a lot of enterprises, industries, companies, organizations,
government institutions and universities use the basic principles of risk management
to better make identification of risks and minimize the lasting negative
impacts. One important thing is to predict unpredictable matters. To navigate
the risks (and opportunities) associated with the pandemic, it is critical to
first identify the risks. The exceptional circumstances surrounding COVID-19
may have brought to light risks that have not yet been considered. In order to
accomplish this most effective identification of all kinds of risks such as
operational, strategic, and financial. Factual and comprehensive information
from many influences variables and from a large cross-section of stakeholders
will be necessary to assess risk. This requires a supply chain analysis and
assessment of the risks faced by vendors, manufacturers, suppliers,
distributors, purchasers, and all organizations and stakeholders you interact
with and rely upon. It is also highly significant to involve organizational
risks associated with people or employees' conditions, such as health and
safety, financial, legal, operational, etc.
Risk management relies upon
a holistic approach to identifying, analyzing, evaluating, and treating risk.
Commitment and full endorsement from the top management are involved in gaining
an optimal goal. Risk management also aims to achieve business continuation and
ensure the business can survive a critical incident. It consists of a series of
plans implemented over phases to shorten recovery time and mitigate the impact.
The International Organization for Standardization (ISO) has issued versions or
editions of ISO 31000, the initial version in 2009 and the second in 2018. ISO
31000: 2018 Standard defines the risk management process as coordinated
activities to direct and control an organization concerning risk. It also
defines a risk management framework as a set of components that provide the
foundations and organizational arrangements for integrating, designing,
implementing, evaluating, and improving risk management throughout the
organization (ISO, 2020).
ISO 31000 Standard gained broad
acceptance in many countries and large corporations as it is practical and
business-oriented, which can be used for the private sector or government
institutions. This standard belongs to high-level structural (HLS), which in
the implementation, can be integrated with other standards depending on the
need of the organizations. In the pandemic and the new normal, this standard
can be integrated with relevant standards such as ISO 90001, ISO 14001, ISO
37001, and ISO 22001 (UNIDO, 2020). ISO
31000 also attempts to harmonize risk management practices and tries to achieve
the position as a global benchmark for risk management even though there are
still some challenges to address (Almeida et al.,
2019).
ISO 31000 framework sets out the principles, a
framework, and a process for the management of enterprise risk that applies to
different types of organizations. It consists of three components: principles
of managing risks, a framework for managing risks, and the process of managing
risks. The relationship between the principles, framework, and process is
independent. The principles are fundamental to effectively managing any risks
and, therefore, need to be reflected in the other two elements. While the
management framework provides the arrangements for risk management that will
embed it throughout the organization at all levels. The risk management process
should be a part of the business process and corporate culture and tailored to
its needs and context. Furthermore, its universal characteristics make them applicable
to any type of organization, public or private, large-size or small-size
corporations (ISO, 2021; Choo and Goh, 2015).
Figure 3 illustrates the interdependence between principles, framework, and
process.