for IT -- Sept -27<\/p>\n
;JP;
\nANPAc..r..
\nIT-infrastructure-needs
\nJP\/ \/<\/p>\n
Infrastructure: Trend, need, cost or investment?<\/p>\n
By Paulus Bambang WS<\/p>\n
JAKARTA (JP): In the face of AFTA, just 16 months away, every
\ncompany in this region, like it or not and ready or not, despite
\ninternal problems such as debt restructuring and capital
\nexpenditure limitation, will have to compete with global players.<\/p>\n
Forms of competition will change rapidly and will often be
\nunprecedented. Many previous theories will have to be reviewed
\ndue to the huge differences in speed, velocity and complexity
\ncompared with those of the decade before.<\/p>\n
There will be at least three conditions during the
\nimplementation of AFTA in 2003 and APEC in 2010 that will have to
\nbe carefully anticipated by businesspeople, as follows:<\/p>\n
The first is that customers will be totally in control. With
\nInternet technology, they will have more choices than ever
\nbefore. While their behavior, wants and needs will be carefully
\ntracked and observed by companies, likewise they will also track
\nand scrutinize every movement of each product, including its
\ninnovations and substitutions in the entire industry.<\/p>\n
Customers will become smarter and possess more complete
\ninformation prior to decisions of purchase. Interconnectedness
\nbetween customers will become more prevalent, so that success in
\nserving one customer will be of paramount importance and failure
\nto serve one customer could bring fatal results. Zero defect or
\nat least "6 sigma quality" will be a must if you want to become a
\nreal global customer-centered organization.<\/p>\n
Second, speed and velocity of information and transaction is
\njust one click away. This means the entire business process will
\nradically change to become "real time at the speed of thought".
\nInventory management, cash management and manufacturing
\nfacilities will be more open and transparent to customers. Each
\nrequirement must get an immediate response, otherwise consumers
\nwill quickly move to another source. This will be made faster by
\nthe Internet technology, which is currently at its initial stage.<\/p>\n
The third very important trend is that innovation and product
\ndevelopment cycle will become shorter and shorter. Unlike before
\nnew products and services will be introduced to the market in
\nmonths rather than years or decades. Hence, the capability to
\nblend the strength of knowledge management with Research and
\nDevelopment capacity will become very vital.<\/p>\n
From the above three conditions, it is obvious that IT will
\nplay a crucial role for the survival of businesses in the coming
\nnew era. It is irrefutable that, despite the Dot Com and Nasdaq
\ncrashes, IT will no longer be a luxury item, but a major artery
\nfor the lifeblood of businesses in the competitive era in the
\nnear future.<\/p>\n
IT readiness<\/p>\n
Although AFTA (ASEAN Free Trade Agreement) is getting close,
\nmany Indonesian companies are not able to do much. They have not
\nbeen able to make final and full settlements of debts incurred in
\nthe precrisis period, let alone think about IT development. Other
\nongoing problems that increase their burden are the unstable
\nexchange rate and political situation; so many doubt our
\nreadiness to compete in AFTA. Businesspeople, economy observers
\nand the government should be fully aware of this condition.
\nOtherwise Indonesia, the biggest market in Southeast Asia, might
\nexperience a second colonization -- an economic colonization --
\nwithout being able to rise as a reliable manufacturing nation.<\/p>\n
Executives should be bold enough to end this vicious circle by
\nselecting the correct priorities to achieve superiority in the
\ncoming competition, namely by a fundamental straightening-up.<\/p>\n
Phase One. Looking outward and realizing that the competition
\nis real and severe. The three conditions mentioned above will
\nhave a major influence on the ways businesses are conducted in
\nthe future. We must start to think in the wider scope of ASEAN
\nrather than the narrow borders of Greater Jakarta. We should not
\nthink about protection but competition and we must be honest with
\nthe realities: whether our company will survive when AFTA is
\nimplemented.<\/p>\n
Phase Two. Looking forward. Carly Fiona, both the former and
\ncurrent chief executive officer of Hewlett Packard, is a
\nmonumental example in finalizing the mega merger between Hewlett
\nPackard and Compaq some time ago.<\/p>\n
Carly wrote: "Looking forward is about how we can extend our
\ncore assets and apply them in new adjacent markets. We can fuel
\nand capitalize on change by providing access to information and
\ncommunication technologies where it currently doesn't exist to
\ncreate growth opportunities in the global ecosystem. As
\nentrepreneurs, we are always asking: 'Where will the next fast-
\ngrowing market come from? Where will new ideas come from? Where
\nwill our customers come from?' We can begin to think about the
\nanswers to these questions by thinking about imbalance in the
\nglobal ecosystem."<\/p>\n
To prepare a correct strategy based on input from "Looking
\noutward" and "Looking forward", an internal straightening-up
\nbecomes inevitable. This takes us to the next phase.<\/p>\n
Phase Three. Looking inward. This activity is similar to
\nlooking at oneself in the mirror, seeing the truth and acting on
\nthe truth. Courage is required to change old styles with new
\nstyles, with new technologies, with new competence and if
\nnecessary, even with new blood.<\/p>\n
Gary Hamel said: "In order to survive, companies need to
\nmirror the internet itself. They need to be open, democratic,
\ntightly networked, experimental, endlessly adaptable and utterly
\nrestless."<\/p>\n
This becomes easier when our IT infrastructure is well
\norganized. For example, hardware that includes multiuser systems,
\nservers, single-user system, PC and workstation as well as data
\ncommunications equipment like local area network, internet design
\nand intranet access.<\/p>\n
These are "must-have" items which must be continuously adapted
\nto business requirements. The software should include software
\ninfrastructure system, application tools and application
\nsolutions that fit the new business processes and match the new
\nrules of the business game.<\/p>\n
A consultant is needed so that the hardware and software
\nfunction to the optimum requirement. The consultant should cover
\nthe following areas: consulting, implementation, operational
\nservices, and training and education as well as support services.<\/p>\n
If budgeting is the problem, then leasing should be an
\nattractive alternative. For the past few weeks quite a number of
\ncompanies have been offering financing facilities for both
\nhardware and software. Cost wise it becomes higher due to the
\ninterest, but it is a big help to cash flow and it changes
\ncapital expenditure investment into operating expenses.<\/p>\n
Another alternative, which is also today's trend, is
\noutsourcing, meaning a company pays only costs according to a
\ncertain scheme, such as pay per usage, monthly payment, time and
\nmaterial costs, joining fee plus per user cost. This alternative
\nwill help a great deal though not giving the most sophisticated
\nsolution due to limited funds and human resources. The weakness
\nis, of course, in its high dependability on the supplier of
\noutsourcing services.<\/p>\n
There are several factors to be taken into consideration in
\nchoosing the budgeting alternatives and implementation of IT
\ninfrastructure:<\/p>\n
Factor number 1. Speed and complexity of program. The faster
\nits requirement and the more complex its infrastructure, in
\ntoday's financial and economic condition, companies are well
\nadvised to be more cautious. Here, risk sharing becomes
\npreferable, therefore, leasing, subcontracting and outsourcing
\nare correct choices. Risk sharing will also make the vendor more
\ncareful in designing a whole concept and in choosing the hardware
\nand software. Unarguably the total expenses will be greater than
\na direct purchase but when deducted by the risks of
\nmalfunctioning programs as well as obsolete technology, the
\ndifference in the cost can then be considered as "insurance to
\nget the best".<\/p>\n
Factor number 2. Limited capability of human resources and an
\nurgent requirement for a competitive edge ("a must-have
\ninvestment"). In this situation a reliable Application Service
\nProvider is recommended, such as the use of BCA's ATM and
\ninternet network to speed up distribution and communication with
\ncustomers. This type of payment per usage will reduce total cost
\nof ownership in the long run considering the high costs involved
\nin hardware, software and brainware.<\/p>\n
Factor number 3. Branding to strengthen company position. In
\nthis case it is better to use strategic alliances with a profit
\nsharing scheme or Application Service Provider (ASP). Normally
\nthis is done with a renowned vendor, so that such synergy will
\nindirectly enhance the company's image for example an airline
\nusing Singapore Airlines' Krisflyer as its ASP or an automotive
\ncompany in conjunction with Astra Group as the ASP famous for its
\ncost effectiveness. Comparably the costs in this scheme are
\nhigher, but the difference should again be considered as
\nmarketing and promotion costs.<\/p>\n
Factor number 4. Need for total integration. Here, an
\nexperienced implementor and an entire software package are
\nrequired. A single direct purchase is advised and should anyone
\noffer a joint financing and operation venture, such can be given
\nconsideration if the total cost of ownership is lower in the long
\nrun.<\/p>\n
The question that remains is whether there is another way to
\nanticipate the future competition based on "outward looking" and
\n"forward looking" concepts, aside from the maximum usage of IT.<\/p>\n
The answer is a "yes". The manual system will still exist.<\/p>\n
But for how long?<\/p>\n
IT is the accelerator to succeed in the fast lanes of the
\nglobal competition era. Your investment today will decide the
\nsurvival of your company in the future.<\/p>\n
(The writer is the managing director of Astra Graphia IT
\nSolution).<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bfor-it-sept-27b-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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