Technology Integration Becomes a Strategy for Industrial Efficiency
JAKARTA — Technology integration has become one strategy for companies seeking to improve operational efficiency amid growing business complexity. Disconnected information technology (IT) systems can increase administrative workloads, slow data management and raise operating costs, particularly in retail, manufacturing and warehousing.
These problems arise when business growth is not matched by upgrades to the technology systems companies use. As a result, some operational processes still rely on manual record-keeping, multiple separate applications and additional administrative staff to manage fragmented data.
This makes it harder for companies to monitor operations and analyse business performance as a whole. Replacing legacy systems also requires careful consideration, as it could disrupt business activities and involve substantial investment.
SterlingLabs chief executive Elroy Hardoyo said companies should begin considering technology integration as a long-term strategy to improve efficiency. Advances in artificial intelligence (AI) are creating opportunities to reduce reliance on manual processes while managing operations in a more integrated way.
One emerging approach is the autonomous enterprise, which uses AI to run some business processes more independently. It is seen as offering broader capabilities than conventional enterprise resource planning (ERP) systems, which still require human intervention in many processes.
Elroy said the use of AI for industrial needs differs from general-purpose AI. Such systems must understand a company’s workflows, protect information and manage data access according to users’ authorisations.
“Industrial AI is built on a Role-Based Access Control (RBAC) structure, private corporate data security, precise understanding of workflows and the ability to adapt quickly to new workflows. Most importantly, it delivers accurate and consistent results, rather than answers that can vary — probabilistic responses — like those from most general AI systems, such as ChatGPT,” Elroy said.
The SterlingLabs founding team previously applied this technology-integration experience while handling IT transformation, e-commerce and customer relationship management at The Body Shop Indonesia. Over four years, the team overhauled several operational systems that had previously run separately.
The work covered point-of-sale transaction systems, inventory management, customer data and information security. Integration enabled hundreds of The Body Shop outlets in Indonesia to use interconnected systems, with data updated in real time.
SterlingLabs says the transformation cut annual IT costs by more than 80 per cent. The company also claims the systems overhaul improved operational efficiency and sales margins.
However, the reported savings came from a transformation at a single retail chain. The efficiency gains other companies can achieve will depend on the condition of their systems, their operational requirements and their technology investments.
After the main transformation was completed, the team became an independent entity and continued technology transformation work at other companies under TBS Group. That experience later provided the basis for the establishment of SterlingLabs, a technology company under PT Trini Solusi Teknologi (TST).
Elroy said fragmented systems were also found in manufacturing, warehousing and companies with complex operations. Technology upgrades, he said, need to take account of the characteristics and requirements of each industry.
System integration also provides a foundation for companies seeking to develop AI-based automation. With data and business processes connected, companies have opportunities to reduce administrative work while improving their ability to monitor operations.
“We believe Indonesian companies must not be left behind in this wave of transformation,” Elroy said.
SterlingLabs develops technology transformation services using an autonomous enterprise approach that emphasises system integration, data security and adaptation to companies’ business processes. The approach aims to help companies reduce reliance on manual processes without discarding the operational systems they already use.
For businesses, successful digital transformation is not determined solely by adopting new technology. Cost efficiency, productivity, data security and a system’s ability to support business growth are important measures of the value of technology investment.