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COMPARISON OF OPERATION STRATEGY Ali Rachman Jimmy Budi Soelistyawati Wahyu Edi Winoto Yayu S. Rahayu Master of Business Administration Faculty of Economics.

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Presentation on theme: "COMPARISON OF OPERATION STRATEGY Ali Rachman Jimmy Budi Soelistyawati Wahyu Edi Winoto Yayu S. Rahayu Master of Business Administration Faculty of Economics."— Presentation transcript:

1 COMPARISON OF OPERATION STRATEGY Ali Rachman Jimmy Budi Soelistyawati Wahyu Edi Winoto Yayu S. Rahayu Master of Business Administration Faculty of Economics and Business Universitas Gadjah Mada

2 Dunia berubah setiap hari, jika kita tidak ikut berubah maka kemampuan kita untuk bersaing secara global akan menyusut dan seluruh dunia mengabaikan kita

3 THEORY OVERVIEW OPERATION MANAGEMENT APPROACH October 9, 20143

4 Global Operational Environment Global/International environment influence the operational and organizational decision making

5 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. Rangkaian Nilai Pemasok Rangkaian Nilai Perusahaan Rangkaian Nilai Saluran Rangkaian Nilai Konsumen Sumber: Michael E. Porter, Competitive Advantage, New York: Free Press, 1985

6 Rangkaian Nilai Perusahaan Sumber: Michael E. Porter, Competitive Advantage, New York: Free Press, 1985

7 THEORY OVERVIEW MARKETING APPROACH October 9, 20147

8 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

9 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?

10 THEORY OVERVIEW SYSTEM INFORMATION TECHNOLOGY APPROACH October 9,

11 Leading the Information System Function Computer and communications infrastructure that enables information sharing over standard IT platforms Technology Asset Established partnering relationships for joint IT-business decision-making Relationship Asset Pool of IT people talent for needed mix of technology and business skills Human Asset

12 12 E-Business Framework IT Applications and services are built upon two types of pillars –Legal and Regulatory Pillar –Technology Pillar Figure 8.1

13 13 E-Business Systems Enable the electronic transmission of business transactions or other related information between a buyer and seller E-business systems A business that conducts business solely through their Web site (single channel) Dot-com (pure-play) A company uses Internet sales as an additional channel to an offline business (multichannel) Bricks-and-clicks (click-and-mortar)

14 14 E-Business Systems A worldwide network of networks, accessible to the public, that employs the TCP/IP protocol Internet A private network operating within an organization that employs the TCP/IP protocol, to provide information, applications, and other tools (such as collaboration tools), for use by the organization’s employees Intranet A private network that is a portion of a company’s Intranet, which is made accessible (normally over the Internet) to business partners outside of the company (such as customers or suppliers) Extranet

15 RESUME JOURNAL October 9,

16 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

17 Studies of Business Logic

18 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.

19 Resume Article 2 MAKING 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.

20 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

21 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

22 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

23 OUR ANALYSIS October 9,

24 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 October 9,

25 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 October 9,

26 Materials Maintenance Human Resources Financials AccountAccount AssetAsset Maintenance Schedule Work Order PlanPlanAssignAssign Work Group Roster T&A LeaveLeaveTrainingTraining PersonPerson Operating Statistics Standard Job Ad Hoc Work Copy WO Ad Hoc Work Copy WO Condition Monitoring ProjectProject RequisitionsPartsRequisitionsParts Store Room Issue Goods Issue Goods Store Room Issue Goods Issue Goods Auto- Generate Requisition Requisition Recommended Order Receive goods InvoiceInvoicePaymentPayment Financial Transactions Do work Enter Time Labour Costing PayrollPayroll Ad Hoc Work Use Standard Job Ad Hoc Work Use Standard Job AccountAccount ProjectProject Work Order AssetAsset WorkRequestWorkRequest Contoh Aplikasi Fully Integrated Enterprise Asset Management

27 CONCLUSION October 9,

28 28 Business and IT Alignment Alignment of IT strategy with the organization's business strategy is a fundamental principle Business Strategy Information Technology Strategy

29 New Ways to Compete IT can shape business strategy Ways of competing (Porter, 1980) Compete by being a low-cost producer of a good or service Cost Compete by offering products or services customers prefer due to superiority with innovativeness, image, quality, or customer service Differentiation Simultaneously focusing on low-cost and differentiation often within a specific market niche Both

30 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

31 THANK YOU


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