PT. XYZ CORE CASE STUDY
By
Dodik Novianto 22015106
MASTER’S DEGREE in
INFORMATION TECHNOLOGY
FACULTY OF ENGINEERING & INFORMATION TECHNOLOGY
SWISS GERMAN UNIVERSITY EduTown BSD City
Tangerang 15339 Indonesia
August 2016
Dodik Novianto I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Dodik Novianto
____________________________________________
Student Date
Revision after Thesis Defense on July 20th, 2016
Approved by:
Asep Sugih Suntana, Ph. D.
____________________________________________
Thesis Advisor
Date
Ir. Heru Purnama Ipung, M. Eng
____________________________________________
Thesis Co-Advisor Date
Dr.Ir. Gembong .M.sc
____________________________________________
Dean
Date
Dodik Novianto ABSTRACT
THE VALUE ON INFORMATION TECHNOLOGY INVESTMENT ON SMALL AND MEDIUM ENTERPRISE:
PT. XYZ CORE CASE STUDY
By
Dodik Novianto
Asep Sugih Suntana, Ph.D. Thesis Advisor, Ir. Heru Purnama Ipung, M. Eng.Co-Advisor
SWISS GERMAN UNIVERISTY
Information Technology Investment Management is an important foundation in value and measuring investment of Information Technology (IT), there are several frameworks that can be used to calculate the predicted value of the investment. The development of information technology is an important part to support the formulation of business strategies in the enterprise, so that information technology will facilitate any activity to engage in work would be much more practical.
Investment feasibility analysis is a way to make the calculation easier for business investment. The results of the NPV is positive or greater than 0 (> 0 positive) and for that reason IT investments can be received, from the result of the computation time Payback Period (PP) faster than expected in the investment, from the calculation of the IRR the interpolation technique, setting rates and use the trial and error method is obtained which is greater than the interest rate is set. So research reasons IT investment is acceptable because it provides benefits. Thus the method of calculation analysis Cost Benefit Analysis (CBA) can facilitate the company to look at the feasibility of the business to be conducted, so as to promote the company to make a decision. Val IT can be used to give a clear explanation regarding the value of IT investment in PT.XYZ.
Dodik Novianto Keywords: SMEs, Val IT Framework, Information Technology, Cost Benefit Analysis
Dodik Novianto
© Copyright 2016 by Dodik Novianto
All rights reserved
Dodik Novianto DEDICATION
I dedicate this thesis to our dear deceased father H. Amin Soejitno, my lovely mother Hj. Suhartuti who has inspired me greatly support in my life, father in law of the deceased father Damin Wonodimedjo, mother in law deceased mother Painah. I dedicate this as well to my beloved wife Supriyani, my son Bintang Divayoga, and my sister Nuri Sulistyarini, my big sister Meidicianawati and also my little brother Freddy Yudianto who have prayed incessantly and sacrified their times in the process of my thesis completion.
Dodik Novianto ACKNOWLEDGEMENTS
Firstly, the authors give thanks to Alloh SWT, God Almighty, who provides strengths to complete the thesis and life lessons beyond the thesis.
Secondly, the author gives thanks to my advisor Asep Sugih Suntana, Ph.D. and my co-advisor Ir. Heru Purnomo Ipung, M. Eng who are not very helpful in guiding me from the beginning until the end of the thesis process, but also always encourage me to complete the thesis. I would like to thank Dr. Ir. Moh. A. Amin Soetomo, M.Sc. and Dr. Ir. Gembong Baskoro, M.Sc. from the very beginning, they had confidence in my abilities to complete the degree and achieve it well.
Thirdly, the authors give great appreciation to the Subject Matter Experts and IT department of the institution for their kind and full support, for dedicating their time for interview and discussion.
For last but not least, author would like to give thanks to all my friends who support me an MIT study.
Dodik Novianto TABLE OF CONTENTS
Page
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 6
ACKNOWLEDGEMENTS ... 7
TABLE OF CONTENTS ... 8
LIST OF FIGURES ... 11
LIST OF TABLES ... 12
CHAPTER 1 - INTRODUCTION ... 14
1.1 Background ... 14
1.2 Research Objectives ... 14
1.3 Research Problems ... 15
1.4 Significance Of Study ... 15
1.5 Research Methodology ... 16
1.6 Research Questions ... 16
1.7 Research Scope ... 16
CHAPTER 2 – LITERATURE REVIEW... 17
2.1 SMEs ... 17
2.2 Concept of SME... 17
2.3 Val IT ... 17
2.4 The VAL IT Initiative ... 18
2.5 Strategic Alignment ... 19
2.6 Value Delivery ... 20
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2.7 Val IT Framework ... 21
2.8 Principles VAL IT ... 23
2.9 Investment Value of Measurements IT... 23
2.10 The concept of Val IT Framework ... 27
2.11 Considering of using Val IT... 28
2.12 Gartner’s Techonology Information Investment Frameworks ... 28
2.13 Bussines Portfolio Charateristic Application Frameworks (MC Farlan Grid’s)... 29
2.14 IT Business Benefits ... 31
2.15 Investments ... 32
2.16 Criteria Investment Assessment ... 32
2.17 Net Cash Flow (NCF) ... 34
2.18 Income Tax (PPH) ... 34
CHAPTER 3 – RESEARCH METHODS ... 35
3.1 Introduction ... 35
3.2 Research Data ... 35
3.2.1 Type And Source of Data ... 35
3.2.2 Data Collection ... 35
CHAPTER 4 – RESULTS AND DISCUSSIONS ... 41
4.1 Organization Profile ... 41
4.1.1 Working years of Employee ... 41
4.1.2 Functional Division ... 42
4.2 Organization Structure ... 43
4.3 Vision and Mission ... 43
4.4 Questionnaire Result ... 44
4.4.1 Distribution of the Questionnaire ... 44
4.5 Internal IT condition Analysis ... 48
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4.7.1 Calculation of IT investment analysis ... 54
4.7.1.1 Net Present Value (NPV) ... 54
4.7.1.2 Payback Period (PP) ... 55
4.7.1.3 Internal Rate of Return (IRR) ... 55
4.8 Evaluation Using Val IT Framework Analysis ... 57
4.9 The test results of model VAL IT Framework ... 60
4.10 Goals Analysis Results Strategic / Organizational Goals ... 62
4.11 Gap Analysis ... 63
4.11.1 IT Current Situation (By Val IT Analysis)... 64
4.12 Implementation Research Result ... 65
CHAPTER 5 – CONCLUSION AND RECCOMENDATIONS ... 66
5.1 Conclusion ... 66
5.2 Recommendations ... 66
5.3 Future Works... 67
GLOSSARY ... 68
REFERENCES ... 69
CURRICULUM VITAE ... 72
