THE STRATEGIC FOR BUSINESS GROWTH
By
Budi Mulyawanto 2-1952-026
MASTER’S DEGREE in
MASTER OF MECHANICAL ENGINEERING
FACULTY OF ENGINEERING AND INFORMATION TECHNOLOGY
SWISS GERMAN UNIVERSITY The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia
February 2021
Revision after Thesis Defense on 1st February 2021
Budi Mulyawanto STATEMENT BY THE AUTHOR
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.
Budi Mulyawanto
_____________________________________________
Student Date
Approved by:
Dena Hendriana, B. Sc., S.M., Sc.D.
_____________________________________________
Thesis Advisor
Date
Dr. Ir. Gembong Baskoro, M.Sc.
_____________________________________________
Thesis Co-Advisor Date
Dr. Maulahikmah Galinium, S.Kom, M.Sc.
_____________________________________________
Dean Date
Budi Mulyawanto ABSTRACT
IMPROVING INNOVATION MANAGEMENT IMPLEMENTATION AS PART OF THE CONSISTENT APPLICATION OF
THE STRATEGIC FOR BUSINESS GROWTH
By
Budi Mulyawanto
Dena Hendriana, B. Sc., S.M., Sc.D.
Dr. Ir. Gembong Baskoro, M.Sc.
SWISS GERMAN UNIVERSITY
The sales strategy has not been supported by effective facilities. This can be seen from the income statement of related area. Sales or revenue conditions varies widely every month, especially when compared to last year. Likewise, with the cost of support or production. Costs in the income statement consist of Capital Expense and Operational Expense. While operational expense is divided into 2 parts, namely fix cost and variable cost. This research focuses on the ratio between the variable cost in each item compared to the revenue in the monthly income statement. There are several areas that show a decrease in the ratio in general when compared to last year. And in pareto, there are 2 items that are dominant in variable cost, namely: Freight and Warehouse shipping. This area is used as a role model for any innovations that are related to the two GL accounts. In order to quickly multiply the benefits, these innovations are distributed to other areas. The implementation process is carried out regularly and monitored until it provides benefits to the company in the form of an income statement. Within 3 months it can be felt that the cost reduction was Rp.
15,673.45 Mio.
Keywords: Innovation Management, Cost Reduction, Reimplementation, Income Statement
Budi Mulyawanto
© Copyright 2021 by Budi Mulyawanto
All rights reserved
Budi Mulyawanto DEDICATION
I dedicated this research for My Family & My Company
Budi Mulyawanto ACKNOWLEDGEMENTS
I would like to express deep gratitude to my advisor Mr. Dena Hendriana, B. Sc., S.M., Sc.D. and my co-advisor Mr. Dr. Maulahikmah Galinium, S.Kom, M.Sc., for their guidance, encouragement and gracious support to this work.
I would also like to thank the Master of Mechanical Engineering Program at Swiss German University (SGU) for giving me opportunity to write an honors thesis, to all of my lecturers who gave me new knowledge through their lessons, to all staff of SGU which always ensures we can learn comfortably.
Thank you for filling in the days of learning at the SGU more interesting. A lot of sweat, tears, fatigue, aggravation, anger, and laughter coloring this process. My best wishes for everyone.
Budi Mulyawanto TABLE OF CONTENTS
Page
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
TABLE OF CONTENTS ... 7
LIST OF FIGURES ... 9
LIST OF TABLES... 10
CHAPTER 1 - INTRODUCTION ... 11
1.1 Background ... 11
1.2 Problem Research ... 15
1.3 Research Questions ... 16
1.3 Objectives ... 16
1.3 Scope of Research ... 16
CHAPTER 2 - LITERATURE REVIEW………17
2.1 Business model ... 17
2.2 Characteristics of Production Innovation ... 19
2.3 Innovation Barriers ... 24
2.4 Digitalization in Industry... 27
2.5 Digitalization in Industry... 30
CHAPTER 3 – RESEARCH METHODS ... 32
3.1 Flow Chart Research ... 32
3.2 Analysis Tools ... 32
3.3 Competition ... 47
3.4 Mentoring Innovation & Improvement Project ... 51
3.5 Funding Analysis ... 53
CHAPTER 4 – RESULTS ... 61
4.1 Distribution Improvement ... 61
4.2 Program Distribution ... 62
Budi Mulyawanto
4.4 Overall Summary ... 79
CHAPTER 5 – CONCLUSION AND RECOMMENDATIONS ... 83
5.1 Conclusions ... 83
5.2 Recommendations ... 83
REFERENCES ... 84
CURRICULUM VITAE ... 85
Budi Mulyawanto LIST OF FIGURES
Figure 1. Facing the Future ... 14
Figure 2. Knowledge based Innovation ... 15
Figure 3. Components of a business model ... 18
Figure 4. Production system viewed as a technical system ... 20
Figure 5. Innovation process phases linked to categories of activities from Boer and During ... 22
Figure 6. Conceptual model of innovation process phases and influencing factors .. 23
Figure 7. EOGI barrier model to innovation ... 25
Figure 8. Innovation strategy and technology strategy differences ... 26
Figure 9. The ITM demonstrates the innovation team and its relation to the members and the rest of the Organization ... 28
Figure 10. Flow Chart Research. ... 32
Figure 11. QCC Tools ... 33
Figure 12. 7Up++ Methodology ... 34
Figure 13. DMAIC Methodology ... 42
Figure 14. Strategic and Innovation Category ... 47
Figure 15. Area 1 Analysis ... 55
Figure 16. Area 2 Analysis ... 56
Figure 17. CRP amount from Selling Expense account (Area 1) ... 57
Figure 18. CRP amount from Selling Expense account (Area 2) ... 58
Figure 19. Area 3 Analysis ... 59
Figure 20. CRP amount from Selling Expense account (Area 3) ... 60
Figure 21. Area XXX Overall Comparison ... 70
Figure 22. CRP amount from Selling Expense account (Area XXX) ... 72
Figure 23. Selling Expense Acc Top CRP (Area XXX) ... 72
Figure 24. Area YYY Overall Comparison ... 73
Figure 25. CRP amount from Selling Expense account (Area YYY) ... 74
Figure 26. Selling Expense Acc Top CRP (Area YYY)... 75
Figure 27. Area ZZZ Overall Comparison ... 76
Figure 28. CRP amount from Selling Expense account (Area ZZZ) ... 77
Figure 29. Selling Expense Acc Top CRP (Area ZZZ)... 78
Budi Mulyawanto LIST OF TABLES
Table 1. Result reduce shipping cost from Transportation Modelling ... 64
Table 2. Result Pending job reports... 67
Table 3. Result Educating the nation's children ... 69
Table 4. Report Selling Expense Area XXX ... 71
Table 5. Report Selling Expense Area YYY ... 74
Table 6. Report Selling Expense Area ZZZ ... 76
Table 7. Branch Report Segment A ... 79
Table 8. Branch Report Segment B ... 80
Table 9. Branch Report Segment C ... 81
Table 10. Branch Report Segment D ... 81
