COMPARISON OF OPERATION STRATEGY

Master of Business Administration Faculty of Economics and BusinessUniversitas Gadjah Mada

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THEORY OVERVIEWOPERATION MANAGEMENT APPROACH

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Global Operational Environment

Global/International environment influence the

operational and organizational

decision making

Global / International Strategy

To facing Global/International environment, we need to have global/international strategy as a prerequisite of effective operational decision making. Michael Porter stated that a global/international strategy can be formulated by the used of Industry “Value Chain” concept which focused on cost leadership and Differentiation.

Sumber:Michael E. Porter, Competitive Advantage, New York: Free Press, 1985

Rangkaian Nilai Perusahaan

Sumber:Michael E. Porter, Competitive Advantage, New York: Free Press, 1985

THEORY OVERVIEWMARKETING APPROACH

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Customer Perception and Customer Expectation

Marketing in a the industry is becoming an increasingly complex challenge. The paradigms of service marketing demand a passionate understanding of customer expectations and perceptions, and linking them to product design & delivery as well as operational planning. Organizations have to integrate the customer’s perspective in its products and operations in a comprehensive manner

Marketing Mix (5P’s)

1. Product How should the company design, manufacture the product so that it enhances the customer experience?

2. Place Where should be the product be available and the role of distribution channels?3. Price What should be the pricing strategy?

4. Promotion What is the suitable strategy and channels for promotion of the product?

5. People How to converge the benefits of internal and external marketing?

THEORY OVERVIEWSYSTEM INFORMATION TECHNOLOGY APPROACH

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E-Business Framework

• IT Applications and services are built upon two types of pillars– Legal and Regulatory Pillar

– Technology Pillar Figure 8.1

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E-Business Systems

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E-Business Systems

RESUME JOURNAL

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Resume Journal 1:Business Logic in Buyer – Seller Relationship

Our interpretation about Business Logic are:1. Business logic can be described as a set of process,

equipment, method, procedure and tools to produce goods and services.

2. Business logic consist of: Business rule, and Work flow

Studies of Business Logic

• Business logic links activities, actors, and resources together within and between companies in buyer-seller relationship

• The business logic enables seeing the project, service and packaged product business logic as part of a chain in developing relationship between buyer.

Resume Article 2MAKING ENTERPRISES INTERNET READY: E-BUSINESS FOR PROCESS INDUSTRIES

Internet offers manufacturer the possibility of differentiating them self from their competitor

Downstream segment will see more demand for customized product, market directly to end user

Upstream segment will feel significant impact from the close collaboration with business partners.

Impact of Internet on process industries

Increase connectivity and increase speed

Changes on manufacturing:

• Increase intimacy with business partner

• Automating and exposing internal business process

• Opening new market

Future of e-business in process industries

1.Business processes will be streamline

2.Web based services will support internal business process

3.Portal will provide windows into operation

4.Integrated supply chain and plant system will be in place

5.Increasing customer services

6.Internet exchange will streamline distribution

Preparedness of process manufacturers for e-business era

• Enterprise wide strategy : led from the Top

• Information flow : share critical information both internal and business partner to remove bottlenecks

• Organize around business process

• Integrate business process with trading partner

• Deployment of e-business to ensure agile & responsive plants

• Integrating supply chain and manufacturing: to process customer order via internet and deliver in time

OUR ANALYSIS

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• From the journals, our analysis is “business logic” and selection of technology are linking up and can’t be separated each others. The goals are to improve organization sustainability and growth by optimizing the used of technoly to achieve operational excellence

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• Critical Success Factor to linking up Business Logic and the used of technology:- The company capability to implement “value chain” which focusing on cost leadership and differentiation

- The company capability to improve company value by implementing marketing and service management to address customer expectation and perception

- The succession of Project Management implementation - Time

- Scope - Cost

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MaterialsMaterials

MaintenanceMaintenance

Human ResourcesHuman Resources

FinancialsFinancials

AccountAccountAccountAccount

AssetAssetAssetAsset

Maintenance Maintenance ScheduleSchedule

Maintenance Maintenance ScheduleSchedule

Work Work OrderOrderWork Work OrderOrder

PlanPlanPlanPlan AssignAssignAssignAssign

Work Work GroupGroupWork Work GroupGroup

Roster Roster T&AT&A

Roster Roster T&AT&A LeaveLeaveLeaveLeave TrainingTrainingTrainingTraining

PersonPersonPersonPerson

Operating Operating StatisticsStatisticsOperating Operating StatisticsStatistics

Standard Standard JobJob

Standard Standard JobJob

Ad Hoc WorkAd Hoc WorkCopy WOCopy WO

Ad Hoc WorkAd Hoc WorkCopy WOCopy WO

Condition Condition MonitoringMonitoringCondition Condition MonitoringMonitoring

ProjectProjectProjectProject

RequisitionsRequisitionsPartsParts

RequisitionsRequisitionsPartsParts

Store RoomStore Room Issue GoodsIssue GoodsStore RoomStore Room

Issue GoodsIssue Goods

Auto-Auto-GenerateGenerate

RequisitionRequisition

Auto-Auto-GenerateGenerate

RequisitionRequisition

Recommended Recommended OrderOrder

Recommended Recommended OrderOrder

Receive Receive goodsgoods

Receive Receive goodsgoods

InvoiceInvoiceInvoiceInvoice PaymentPaymentPaymentPayment

Financial Financial TransactionsTransactions

Financial Financial TransactionsTransactions

Do workDo workDo workDo work

Enter TimeEnter TimeEnter TimeEnter Time Labour Labour CostingCostingLabour Labour CostingCosting

PayrollPayrollPayrollPayroll

Ad Hoc WorkAd Hoc WorkUseUse

Standard JobStandard Job

Ad Hoc WorkAd Hoc WorkUseUse

Standard JobStandard Job

AccountAccountAccountAccount

ProjectProjectProjectProject

Work OrderWork OrderWork OrderWork Order

AssetAssetAssetAsset

WorkWorkRequestRequest

WorkWorkRequestRequest

Contoh Aplikasi

Fully IntegratedFully Integrated

Enterprise AssetEnterprise AssetManagementManagement

CONCLUSION

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Business and IT Alignment

• Alignment of IT strategy with the organization's business strategy is a fundamental principle

New Ways to Compete

• IT can shape business strategy• Ways of competing (Porter, 1980)

New Ways to Compete

• IT can decrease organizational costs– Examples:

• Automating transaction time• Shortening order cycle time• Providing operational information for decision making

• IT can enable differentiation– Examples:

• Giving sales personnel information to better serve customers• Providing just-in-time supplies for customers• Creating new information-based products• Allowing product customization by the consumer

THANK YOU