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Business innovation is deemed an important factor for sustainable competitive advantages. The mentioned important factors are vis à  vis not merely product, but also service. Subsequently, this paper elaborates service innovation within ambidexterity approach that comprises two considerations of exploitation and exploration. The exploitation refers to the continuous improvement of the existing activities in companies. Meanwhile, the exploration refers to the breakthrough of new frontier activities in companies that are needed for the company to gain sustainable competitive advantages. Both exploitation and exploration are supported by the theoretical approach and its empirical implementation within companies’ sustainable competitive advantages, through grand theory within industrial engineering discipline. This paper elaborates the service innovation that is deemed as antecedents for both financial and nonfinancial performance in the banking industry in Indonesia. The focus of the banking industry in this paper refers to the area of DKI Jakarta, as the center of technology in its capacity as the capital city of Indonesia. The theoretical approach is subsequently implemented through Industry 4.0 that covers trilogy of physical, digital, and biology. Furthermore, the mentioned implementation is aimed at the benefits of Making Indonesia 4.0 with the Indonesia local wisdom and setting. Precisely, it covers focused sectors: food and beverages; textile; automotive; chemical; and electronic. Ultimately, it refers to an action plan as quick wins in term of technology incentive; investor roadshow; vocational education; and innovation center, along with its support for small-medium enterprise. Keywords: banking industry; contextual ambidexterity; exploration service innovation; exploitation service innovation; financial performance; structural ambidexterity

Business Innovation, Service Innovation, Industry 4.0 and Making Indonesia 4.0: Perspective on Industrial Engineering