ASSESING THE IMPACT OF IT TRANSFORMATION TO THE ORGAINZATION EFFECTIVENESS IN FMCG COMPANY WITH BUSINESS CASE OF PT. BIRU MUDA

• Main Author: Chayono, Andy
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/86544
• Institution: Institut Teknologi Bandung

In the current dynamic and competitive business environment, organizations are racing to adapt and enhance their performance. They are investing their future through in innovation, entrepreneurship, and digitization. Digital technology plays a crucial role in enabling organizations to achieve digitization and to ensure the success of digitization, transforming the IT organization becomes a necessary step for organization, and in this thesis, the author aims to understand how IT transformation is effectively implemented in PT. Biru Muda to enhance organizational effectiveness. This thesis investigates the IT transformation process within an organization, focusing on both qualitative and quantitative data to provide a comprehensive understanding of the factors driving this transformation, challenges and barriers during IT Transformation itself, and its impact on organizational effectiveness. The study employs a mixed-method approach, integrating interviews with key stakeholders and surveys from IT personnel and users, to explore the motivations, challenges, and outcomes of the IT transformation initiative, literature review, and observation on the internal documents that related with the transformation itself. Qualitative findings from interviews highlight the critical drivers of IT transformation, such as the need for modernizing IT infrastructure, enhancing security, improving business agility, increasing productivity, and enabling innovation. Author applied Thematic analysis to reveal the underlying motivations and strategic goals of the transformation, providing a nuanced understanding of the concerns and expectations of different stakeholders by identify recurring themes from the interview transcript. Quantitative analysis, based on Likert-scale surveys, is used to assess the primary challenges and barriers faced by the organization, as well as the impact of transformation on organizational effectiveness. The author explore the top ten common challenges and barriers that contribute to the failure of the transformation process. These challenges and barriers include lack of vision, resistance to change, lack of cross-functional collaboration, poor execution, insufficient budget, lack of talent, technology integration challenges, inadequate data management and governance, short-term thinking, and overlooking customer needs. The survey results indicate that poor execution and overlooking customer needs are significant challenges and barriers. Regarding the impact on organizational effectiveness, the author refer to a four-factor approach which includes goal accomplishment, resource acquisition, internal process, and strategic constituency satisfaction. The goal accomplishment approach and the internal process approach received the highest scores, indicating their importance in driving organizational effectiveness. Based on the result of the interviews, questioners, and the observations of the internal documents, the author integrated the qualitative and the quantitative data presents a holistic view of the IT transformation process. It underscores the importance of balancing strategic planning with practical execution, addressing both technical and human aspects to achieve successful transformation. The study's findings emphasize the need for effective project management, customer-centric approaches, and continuous development of human capital to navigate the complexities of the digital era. Overall, this thesis provides valuable insights into the multifaceted nature of IT transformation, offering recommendations for organizations to enhance their transformation initiatives and improve overall effectiveness.