PROPOSED KNOWLEDGE MANAGEMENT STRATEGY FOR PT KRAKATAU POSCO’S RESILIENCY

• Main Author: Dinar Prihatina, Anissa
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/54638
• Institution: Institut Teknologi Bandung

Despite playing a critical role in various other industries' growth, the steel industry continues to experience an alarming decline. After a healthy financial condition in the mid-2000s, the steel industry's financial performance has worsened fast until recent years. According to OECD's report on the steel industry financial health, the steel industry financial has touched a fragile level, close to the critical situation in the late 1990s and early 2000s. The report stated that average operating profitability is below sustainable levels, and more companies rely on short-term debt. While performance varies widely across companies, a small number of companies remain resilient (Silva, de Carvalho, 2017). In 2015 - 2016 the price of steel commodities reached its lowest point due to the combination of the chronic oversupply and deteriorated global economy. A sluggish improvement excited the steel industry with hope for a rebound in 2018 and 2019 before the COVID-19 pandemic hit the world and left the industry in an impasse. The steel industry's external environment was highly volatile, and a series of crises proved that the global economic downturn tended to hit the steel industry more than any other sector. As one of the global steel industry players, to survive and strive amid uncertain external conditions, PT Krakatau Posco must be able to develop a sustainable competitive advantage. Competitiveness is an essential key to winning the competition. PT Krakatau Posco enjoyed the benefit of tangible assets and intangible assets from the two parent companies as a joint venture company. Knowledge is one of the intangible assets which is the main asset for the Company to achieve sustainable competitive advantage. During the ten years since its establishment, PT Krakatau Posco implemented fragmented knowledge management processes wherein the organization's units built a knowledge management foundation in isolation. Prominent knowledge management programs and initiatives came out from units without being integrated. This study proposes a strategic plan for knowledge management integration in KRAKATAU POSCO by answering two research questions. With the Asian Productivity Organization framework, this research identifies and analyze strategic gap and knowledge gaps through measuring the readiness level of knowledge management. This research utilized several strategic tools, including PESTEL analysis, Porter's five forces, McKinsey 7s, VRIO, and TOWS matrix to assess the external and internal environment of PT Krakatau Posco. Then, it proposed a strategic implementation plan of integrated knowledge management, including knowledge management vision and mission, Knowledge Management strategy, knowledge management scorecard, and knowledge management implementation plan. This research business solution's focus is KM integration that focuses on four accelerators, namely leadership, people, technology, and process. Under the proposed Knowledge Management IMPACT (Improvement, empowerment, and action) FOR INNOVATION program, four knowledge management initiatives are designed to maximize innovation capability and achieve competitive advantage and resiliency. The key four initiatives are leadership KM commitment, human capital empowerment, robust Information Technologyfor KM action, and project work system for improvement. Various knowledge management tools and techniques were then proposed to ensure the success of each initiative.