Digital Transformation and Business Value Creation through Smart Patchouli Oil Distillation

Achmad Tavip Junaedi; Nicholas Renaldo; Suhardjo Suhardjo; Bord Nandre Aprila; Yenny Desnelita; Wilda Susanti; Jahrizal Jahrizal; M. Dalil; Marice Br Hutahuruk; Kristy Veronica

doi:10.61230/luxury.v4i2.156

Authors

Achmad Tavip Junaedi Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia
Nicholas Renaldo Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia
Suhardjo Suhardjo Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia
Bord Nandre Aprila Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia
Yenny Desnelita Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia
Wilda Susanti Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia
Jahrizal Jahrizal Universitas Riau, Indonesia
M. Dalil Universitas Riau, Indonesia
Marice Br Hutahuruk AMIK Mahaputra, Indonesia
Kristy Veronica Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia

DOI:

https://doi.org/10.61230/luxury.v4i2.156

Keywords:

Digital Transformation, Business Value Creation, Smart Distillation, Patchouli Oil, Internet of Things, Artificial Intelligence, Sustainable Business, Business Model Innovation

Abstract

Digital transformation is increasingly important for improving the competitiveness and sustainability of agro-industrial enterprises, particularly in essential oil production where conventional distillation remains constrained by energy consumption, process variability, limited monitoring, and inconsistent product quality. This study examines the potential of Aroma Smart Distiller as a digital transformation innovation for creating business value in patchouli oil production. The system integrates precision steam distillation, Internet of Things (IoT), edge computing, artificial intelligence (AI), adaptive process control, and solar hybrid energy into an integrated smart production platform. An applied research and experimental development approach is used to evaluate operational efficiency, energy consumption, productivity, product quality, and commercialization potential. The proposed system targets a patchouli oil yield of 2.8–3.2%, a 20–30% increase in productivity, and a 30–40% reduction in energy consumption compared with conventional distillation. The integration of real-time monitoring and AI-based optimization also provides production data that can support managerial decision-making, quality control, energy management, and continuous process improvement. From a business perspective, the technology creates value through cost efficiency, productivity enhancement, quality differentiation, sustainability, and access to premium and export markets. The commercialization model further indicates opportunities through equipment sales, intellectual property, licensing, and technology scale-up. The study concludes that smart distillation can function not only as a production technology but also as a strategic digital transformation mechanism for creating sustainable business value and strengthening the competitiveness of small and medium-sized enterprises in the essential oil industry.

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