STREAMLINING INFORMATION TECHNOLOGY (IT) FUNCTIONS AND OPERATING MODEL ACROSS GROUP CASE STUDY: PT TELEKOMUNIKASI INDONESIA, TBK
Business entities are expanding their business portfolio by creating child business entities and finally building a large entity known as a Corporate Group, which is a collection of parent and subsidiary corporations that function as a single economic entity through a common source of control. Takin...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/66800 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Business entities are expanding their business portfolio by creating child business entities and finally building a large entity known as a Corporate Group, which is a collection of parent and subsidiary corporations that function as a single economic entity through a common source of control. Taking the study case of PT Telekomunikasi Indonesia, Tbk, or TELKOM, one of Indonesia's high profiled SOEs, TELKOM Group implemented various policies to become a most preferred digital telco with a digital transformation in its strategy and including the implementation of shared service operations (SSO), where several repetitive, massive, and transactional operational activities are combined. However, the SSO initiative has not been fully expanded to the Information Technology (IT) domain.
The correlated business issue derives from the existence of IT units in each company under the group, in which the IT functions are still conducted and maintained solely. This may lead to an un-optimized resource of the assets (People, Application, Platform, and Infrastructure) and redundant IT Processes. Consequently, it raises questions on how the IT operating model should be designed and what type of organizational structure and integration between the subsidiaries would be the most suitable to obtain a more effective IT shared service operation model and asset optimization across TELKOM Group.
Using the Kates-Kessler’s Five Milestone Design Process, this research designed a new IT operating model, combination of the basic IT service management functions with an agile cyclic new way of working, with IT service development and operation would be the most suitable process to be outsourced, rather than IT planning, design, change management, and evaluation. In addition, an IT shared service approach using a specialized federated organization structure is suggested, with an emphasis on promoting the current IT units as the single provider of specific services based on their strongest capability. As for TELKOM, empowering the subsidiary IT units that already possess the expected capabilities and core competencies will be more beneficial and preferred than appointing a new single shared service unit for IT.
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