DIGITAL TRANSFORMATION STRATEGY IN PT. KONSTRUKSI MEMBANGUN NEGERI TBK

• Main Author: Hamid, Daniel
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75855
• Institution: Institut Teknologi Bandung

Construction industry is the second least industry that adopt digital transformation, despite it is one of the oldest industries according to McKinsey studies in 2016. It has been a challenge for this industry as it is a labour-intensive industry with low level productivity and inefficiency in the use of building materials. The advancement on digital tools in construction has increase for the past decade and it brings new of fresh air to overcome these issues. The same way goes to PT Konstruksi Membangun Negeri TBK (KMNI), an Indonesia multi-national public listed company that has been established for 50 years, facing the same problem. KMNI’s revenue and profitability has been declining for the past 5 years as the results of inefficiency or waste in utilizing manpower and materials that drives budget and time overrun. Digital transformation is one of the strategies to turn things around and bring KMNI back to its heyday. This research is conducted to assess how ready is KMNI to transform and what would be the best fit-in strategy for KMNI. The initial digital maturity assessment using INDI 4.0 assessment shows KMNI’s readiness score is 2.03 or medium readiness with some areas for improvement. A house of KMNI digital transformation is proposed as guidance for KMNI to conduct digital transformation. This house encompasses (1) a roof as the direction, (2) a beam as the goals, a pair of pillars (3) process that adopt lean construction 4.0 and (4) technology as the enabler, and (5) people as the foundation. To construct this house, a roadmap with five years of timeline and five phases has been prepared to be executed, along with the implementation plan as well. When the house of KMNI digital transformation has been completed, it is believed that the company has transformed its operations and how to deliver the product to their customers would be a competitive edge. Indirectly, it would increase revenue and profitability.