Digital Integration, Success Story of Accelerating Business Integration of Two Biggest Midstream-Downstream Natural Gas Company in Indonesia

2021 ◽  
Author(s):  
Arief Mujiyanto ◽  
Agung Wicaksono ◽  
Fonny Prasmono Adhi ◽  
Muhammad Subhan Missuari
Keyword(s):  
Natural Gas ◽  
Business Models ◽  
Integrated Management ◽  
Price Policy ◽  
Strategy Development ◽  
Success Story ◽  
Digital Assessment ◽  
Digital Integration ◽  
Sustainable Implementation ◽  
Distribution Company

Abstract To achieve 24% portion of natural gas in targeted national energy mix in 2050, Indonesia government has integrated Pertagas, biggest transmission company into PGN, biggest distribution company under Oil & Gas Holding Pertamina. But survey from PWC in 2004 resulted that around 75% post-merger companies reported integration difficulties, especially both companies have long history of competition. Even more, government mandated 6 USD gas price policy at plant gate, which create enormous urgency to accelerate pipeline and digital integration in the most efficient way. Especially, in this pandemic era, midstream industry needs to foster digital transformation by rethinking outdated business models and strategically applying technology to change rather than focusing on simply cutting costs. From this integration, Pertagas with more than 2,418 km pipeline in 12 provinces spread from Sumatra, Java and Kalimantan has a big potency to be synergized with PGN, as Sub Holding Gas with the total of 10,169 km of pipeline which represent 96% of national gas infrastructure. During 2020. Both companies resulted more than 1.255 MMSCFD of transported gas and 828 BBTUD of sales gas to more than 460 thousand customers. So, PGN and Pertagas management has high expectation on this digital integration to transform from previous fragmented pipeline to be interconnected network to give flexibility in reaching unmet growing demand of strategic industry like refinery, fertilizer, electricity, steel and petrochemical in post-COVID recovery. In this paper, will be described the challenges and its solutions as a success story in digital integration. The important steps start from strategy development, digital assessment, creating coalition, culture acculturation, and change management are explained as guiding pathway for sustainable implementation. It will also portray the measured benefit and value from investment cost efficiency, time effectiveness from the initiation until launched, billing improvement, product development, and up to developed real-time integrated management dashboard for better decision making and part of the milestone for future National Dispatching Center for optimizing Sub Holding Gas portfolio of gas supply and subsidiary's infrastructure to meet growing Indonesia's demand.

Lessons learned in intellectual capital management in Germany between 2000 and 2020 – History, applications, outlook

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manfred Bornemann ◽  
Kay Alwert ◽  
Markus Will
Keyword(s):  
Development Strategy ◽  
Intellectual Capital ◽  
Business Models ◽  
Business Processes ◽  
Lessons Learned ◽  
Strategy Development ◽  
Management Approach ◽  
Content Type ◽  
Over Time ◽  
Made In

PurposeThis article reports on the background, the conceptual ideas and the lessons learned from over more than 20 years of IC Statements and Management with a country focus on Germany and some international developments. It calls for an integrated management approach for IC and offers case study evidence on how to accomplish this quest.Design/methodology/approachReport on the German initiative “Intellectual Capital Statement made in Germany” (ICS m.i.G.). A brief review of the literature describes the background and theoretical foundation of the German IC method. A short description of the method is followed by four detailed case studies to illustrate long-term impact of IC management in very different organizations. A discussion of Lessons Learned from more than 200 implementations and an outlook on current and future developments finalizes the article.FindingsIC Statements made in Germany (ICS m.i.G.) was successful in providing a framework to systematically identify IC, evaluate the status quo of IC relative to the strategic requirements, visualize interdependencies of IC, business processes and business results as well as to connect IC reporting with internal management routines and external communication. However, ICS is not an insulated method but delivers the maximum benefit when integrated with strategy development, strategy implementation, business process optimization accompanied by change management routines. Strong ties to human resource management, information technology departments, quality management, research and development teams as well as business operations as the core of an organization help to yield the most for ICS m.i.G. Over time, the focus of managing IC changes and maturity leads to deutero learning.Practical implicationsICS m.i.G. proved easy to apply, cost efficient for SMEs, larger corporations and networks. It helps to better accomplish their objectives and to adjust their business models. The guidelines in German and English as well as a software application released were downloaded more than 100,000 times. A certification process based on a three-tier training module is available and was successfully completed by more than 400 practitioners. ICS m.i.G. is supporting current standards of knowledge management, such as ISO 9001, ISO 30401 or DIN SPEC PAS 91443 and therefore will most likely have a continuing impact on knowledge-based value creation.Originality/valueThis paper reports lessons learned from the country-wide IC initiative in Germany over the last 20 years initiated and supported by the authors. Several elements of the method have been published over time, but so far no comprehensive view on Lessons Learned had been published.

BSC-Based Framework for E-Business Strategy

2011 ◽  
pp. 536-547
Author(s):  
Fen Wang ◽  
Guisseppi Forgionne
Keyword(s):  
Business Strategy ◽  
Business Models ◽  
Business Management ◽  
Management Control ◽  
Strategy Development ◽  
Business Climate ◽  
Business Decisions ◽  
The Balanced Scorecard ◽  
New Business ◽  
And Performance

E-business is far more about strategy than technology (Raisinghani & Schkade, 2001). An effective e-business strategy is concerned with e-business multidimensional characteristics associated with different levels, parties, elements, and growth pattern features (Bakry & Bakry, 2001). In the process, the strategy must incorporate the effects of the instant and global Internet communication mechanism on the company’s business management architecture. The global reach and interconnectivity of the Internet have spawned new models of e-business strategy and radically transformed existing ones (Pant & Ravichandran, 2001). Indeed, what distinguishes many of the dot-coms is not their new technical power, but the radical new business models (Hamel, 2000). Aided by such innovative e-business models, managers will be able to identify the major decision factors involved in their business strategies and generate strategies that would improve their overall performance and profitability. In the current context, four essential perspectives are identified to be associated with an e-business strategy: financial, customer, internal processes, and learning and growth. These four perspectives were first introduced in early 1990s as the balanced scorecard concept (BSC) (Kaplan & Norton, 1992). Because the BSC methodology explicitly focuses on links among business decisions and outcomes, it is intended to guide strategy development, implementation, and provide reliable feedback for management control and performance evaluation. This BSC rationale is thereby appealing to managers who face new challenges in the current turbulent e-business climate. The real challenge is to determine how the BSC can be successfully applied in the context of e-business’s constantly changing environment of interdependencies (Hasan & Tibbits, 2000). E-business introduces new business objectives and strategies and the old measures of success may no longer apply. It is anticipated that the departure from the original BSC for a strategic e-business management framework would be more radical than the existing BSC adaptations (e.g., Martinson’s balanced IS scorecard; Martinsons, Davison, & Tse, 1999).

scholarly journals Information Technology Outsourcing Chain: Literature Review and Implications for Development of Distributed Coordination

2019 ◽  
Vol 11 (5) ◽  
pp. 1460 ◽  
Author(s):  
Malgorzata Pankowska
Keyword(s):  
Information Technology ◽  
Project Management ◽  
Literature Review ◽  
Enterprise Architecture ◽  
Business Models ◽  
It Outsourcing ◽  
Strategy Development ◽  
Science Literature ◽  
Distributed Coordination ◽  
New Business

The paper aims to analyse how the management science literature explains sustainable coordination and management of Information Technology (IT) outsourcing chains. The IT outsourcing theories,—that is, transaction cost theory, theory of agency, resource based view, activity based theory, contractual theory, partnership and alliance theory and stakeholder theory—are applied as a background to the analysis. A systematic literature review reveals that IT outsourcing is developed in collaborative networks and chains. There are some mechanisms identified in the literature for outsourcing chains’ management, interchain sustainability, coordination and interchain activities’ cohesion. The complexity of outsourcing relationships presented among outsourcers and outsourcees stimulate looking for new business models. Furthermore, outsourcing chains research would benefit from considering strategy-based theoretical discussions, relationship modelling and project management. The literature survey aims to present outsourcing chains in different aspects, that is, dynamics and agility, communication in chains, compensation and compliance, contracting, stakeholders, decision making models, governance problems, integration, performance measurement, project management and strategy development. This paper intends to emphasize that interchain coordination can be improved by enterprise architecture modelling as well as by the application of blockchain economy.

scholarly journals Service-based business models in the Swedish railway industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mirka Kans ◽  
Anders Ingwald
Keyword(s):  
Business Strategy ◽  
Service Management ◽  
Business Models ◽  
Business Environment ◽  
Strategy Development ◽  
Railway Vehicle ◽  
Content Type ◽  
Railway Industry ◽  
Business Opportunities ◽  
New Business

PurposeThe purpose is to describe new business opportunities within the Swedish railway industry and to support the development of business models that corresponds with the needs and requirements of Industry 4.0, here denoted as Service Management 4.0.Design/methodology/approachThe study is an in-depth and descriptive case study of the Swedish railway system with specific focus on a railway vehicle maintainer. Public reports, statistics, internal documents, interviews and dialogues forms the basis for the empirical findings.FindingsThe article describes the complex business environment of the deregulated Swedish railway industry. Main findings are in the form of identified business opportunities and new business model propositions for one of the key actors, a vehicle maintainer.Originality/valueThe article provides valuable understanding of business strategy development within complex business environments and how maintenance related business models could be developed for reaching Service Management 4.0.

scholarly journals LinkAja Business Models Strategy Development Using BMC Approaches

2020 ◽  
Vol 4 (02) ◽  
pp. 46-59
Author(s):  
Novreyna Ludmilla Alda ◽  
Sari Wulandari
Keyword(s):  
Business Model ◽  
Business Models ◽  
Customer Relationships ◽  
Strategy Development ◽  
Mobile Payment ◽  
Electronic Money ◽  
Consulting Services ◽  
The Right ◽  
Key Resources ◽  
Structure Research

In the first quarter of 2019, there was an increase in the value and the volume transaction on electronic money transactions in Indonesia. The development of electronic money is directly proportional to the high competition of companies engaged in the field of mobile payment. LinkAja is a mobile payment application product that is representative of collaboration between Telkomsel and the number of State-Owned Enterprises (SOEs). One of the keys to success in facing competition is to develop continuously. Therefore, it is necessary to develop the right business model to determine the optimal strategy in developing the LinkAja application business. The objectives of this research are formulating and developing LinkAja business models strategy. This result of this study proposed business model in the form of improvement for each element of its business model including: elements (1) Customer segments: Adding target customers to e-marketplaces and e-commerce, (2) Customer relationships: Developing cooperation with LinkAja competitors, (3) Value Proposition: Developing customer consulting services by providing training for using the LinkAja application, (4) Key Activities: Developing collaboration with partners and competitors, (5) Key Partners: Collaborating with the competitors such as Gopay, OVO, FUND, etc., (6) Key Resources: Using digital budget information systems to facilitate transparency of company budgets, (7) Revenue streams: Upgrading fees for premium services, and (8) Cost Structure: Research costs.

scholarly journals Public relations-merchandising o la emergencia de un nuevo modelo de gestión organizacional: el caso El Corte Inglés

2020 ◽  
Vol 10 (19) ◽  
pp. 133-156
Author(s):  
Gloria Jimenez-Marin ◽  
Marta Pulido-Polo ◽  
Maria Mateos-Marin
Keyword(s):  
Public Relations ◽  
Public Perception ◽  
Integrated Management ◽  
Secondary Data ◽  
Management Model ◽  
The Public ◽  
Comprehensive Management ◽  
Commercial Space ◽  
Distribution Company ◽  
Mother’S Day

The difference between public relations and marketing lies essentially in its purpose: while marketing seeks to satisfy the economic needs of the company in the market, public relations pursue the confluence of interests of the organization in its environment and, as a consequence, optimal results in terms of public perception. Despite this distinction, the link between public relations and marketing has sparked broad theoretical debates, essentially reactive, from the relational postulates. While, from the perspective of public relations, the managerial character of public relations is emphasized as a directive function and the academic and professional difference between one discipline and another is deepened, from the postulates of marketing, it is naturally assumed that Public relations is a more integrated technique in the P of Marketing Mix promotion. The integrated management model "Marketing Public Relations" (Kitchen and Moss, 1995 and Papasolomou and Melanthiou, 2012), aimed at increasing efficiency in organizational management through the combination of public relations techniques and marketing techniques synergistically (Hutton, 1996 and Haywood, 1998), has been surpassed in recent years by new models, mainly corporate, focused on the systematic incorporation of specific public relations techniques along with those of merchandising and retail, under strategic postulates. Under this approach, through a qualitative methodological design, based on the concept of intra-method methodological triangulation that combines the case study method (2019 Mother's Day Campaign at the Spanish distribution company El Corte Inglés) and the use of secondary data sources (both bibliographic documents and documents of the organization under study), this article aims to analyze this emerging reality to conclude with the proposal of a comprehensive management model based on the concept of "Public Relations-Merchandising". The results derived from the study allow us to identify an integrated corporate model for managing public perception (and business reputation) and sales through the strategic use of commercial space and retail (merchandising). In this way, a new management model emerges, the “Public Relations Merchandising” model that pivots on four basic variables: - Issuer: companies are organizations and, as such, public relations can contribute to the development of their mission in society, mainly related to the generation of economic objectives derived from the sales process). - Recipient: understanding the client as a stakeholder implies that the company acquires a commitment to corporate behavior that necessarily responds to the expectations and interests of its buyers and consumers. These should be conceived as a key piece that underpins the organizational life and around which the company must build and develop (Pulido, 2017). - Context and message: the enormous growth of competition and the dizzying evolution of the purchasing process forces organizations to manage the shopping experience from relational postulates. The convergence of public relations and merchandising techniques drive a constant dialogue with customers through the profitability of the commercial space. It is possible to conclude that the integrated management of public relations applied to merchandising entails achieving a balance with the public, which, in turn, results in optimal levels of perception of the points of sale, the products and suppliers themselves, and even to buyers and consumers.

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