Technology key to global business world
A fundamental comprehension of technology and how it can be implemented effectively to develop business has become vital in the global business world.
Staggering developments in technology within the last five years have made it possible to communicate across the globe in a matter of seconds. With greater innovations promised in the next several years, the onus is on companies to keep abreast of the developments.
The globalization process has made it imperative for Indonesian businesses to keep adapting to each new development, says John Prasetio, managing director of the accounting firm of Prasetio, Utomo & Co. and one of the judges for Indonesia for this year's Asian Management Awards.
"The world has shrunk and today the business community cannot rely on former methods of handling information technology," Prasetio says. "They must know what to use and how to implement these methods in their best interest."
Effective and quick communications are particularly important in the world of banking. Integral to setting up strong information technology systems is knowing how to use them effectively to attain business objectives, says Muliadi Hendri, vice president of Bank Bali, this year's winner of the Asian Management Award for Information Technology Management.
"Some companies struggle because they want to change but they don't know how to do it. When they try to get information, they cannot or they take the wrong approach."
Muliadi says Bank Bali encountered its own hiccups for a period as the juggernaut of information technology gathered steam in the late 1980s.
"But we sat down, came up with a strategic plan for the future and went about implementing it for the future."
Advantage
The most advanced technology in operation in a company is a "fundamental, strategic advantage," Muliadi adds.
His opinion is reinforced by Rudy Ramli, president of Bank Bali, and IGM Mantera, vice president of the bank.
"Since 1990 we have spent reasonably heavily on technology," Ramli told Asiamoney and Euromoney in 1993. "In 1993, we spent US$20 million and we will do the same this year."
Ramli says modestly that his bank's approach is nothing revolutionary in the banking world.
"We are one of the first banks to introduce these concepts in Indonesia. It has already happened in other countries, so why can't it happen here? My philosophy is don't re-invent the wheel, but learn from them, adjust them to the local environment and then introduce them."
Competing
Mantera, formerly an executive with IBM in Indonesia, states that technology is vital in order to compete effectively.
"Our management here is committed to technology although we realize that technology is just a tool and success depends on the people we employ."
Bank Bali's approach to introducing technology is a synchronized one, with long-term plans already worked out.
"We instill an attitude of continuous learning among our workers so there is a feeling that there is always room to improve because the environment is changing all the time," he says. "I see other companies doing it in a more reactionary way, adjusting to the changes when they are already upon them."
Due to innovations in business processes and the use of technology, Bank Bali has improved the ratio of salaries, general, and administrative expenses to total assets, which translates into increased efficiency and effectiveness.
To increase customer convenience, the bank has integrated its ATM services in Jakarta, Bogor, Bandung, Surabaya, Medan, Semarang and Malang.
More innovations are promised. The ATM network will increase to 101 installations and new service features will be added.