DIVERSIFICATION STRATEGY OF PT BADAK NGL AND THE ALIGNMENT OF ADVANCEMENT IN INFORMATION TECHNOLOGY TO SUPPORT THE STRATEGY

• Main Author: Ibrahim Hakim Kresno, R
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/36630
• Institution: Institut Teknologi Bandung

Natural gas is currently become dominant energy source, replacing oil, due to its clean characteristics. Indonesia has involved in producing natural gas and became natural gas exporter in the form of Liquefied Natural Gas (LNG) since 1977 by establishing LNG liquefaction plant in Bontang and PT Badak NGL as its operator. However, declining trend of natural gas supply gives future challenge for LNG processing industry, where Indonesia is estimated to start importing natural gas on 2024 and stopped to export natural gas on 2034, which may also be impacted PT Badak NGL business. On the other hand, the global trend of advancement in Information Technology (IT) in the terms of digital transformation and Industry 4.0 has disruptively impacted business. Therefore, to anticipate the challenge of declining gas supply, PT Badak NGL shall propose diversification strategy and to use the advancement of IT to support the business strategy. Business issue exploration is conducted to analyze external and internal environment. As an operator that has experience for more than 40 years operating Badak LNG plant, well maintained and reliable asset and skilled worker may become PT Badak NGL's competitive advantage to seek for growth. Based on the result of external and internal environment analysis, diversification strategies are proposed in the form of operation & maintenance manpower outsourcing, center of excellence (training center and engineering center), maintenance shop utilization, LNG training & engineering service provider, small scale LNG business and regasification terminal business. To identify IT initiatives that may support those business strategies, the business-IT alignment framework is being used. The implementation plans of the diversification strategies are presented. The organizational structure is also being proposed to be changed from functional structure to Strategic Business Unit (SBU) form of multidivisional structure. The research also shows that the business-IT alignment frameworks can also be used for advancement in IT, such as aligning business strategy and Industry 4.0.