Strategy for Automation and Digitalization in Indonesian Aerospace Manufacturing

https://doi.org/10.35912/jbpd.v3i2.4510
Published: Jan 20, 2024

Abstract:

Purpose: Strategy formulation is part of organization design study to evaluate decision thoroughly, then enable organization to achieve company goal. This study aims to formulate strategy of automation and digitalization for PT XYZ, to be ready for welcoming future growth of demand by maintain competitive cost within the same industry.

Method: The study collects primary data from focus group discussion with selected participant of PT XYZ, located in Bandung, Indonesia, with participant selection based on information rich person reference. Data collection and analysis utilize qualitative and quantitative approach, and utilize three steps of strategy formulation (input stage, matching stage and decision stage).

Results: Strategy formulation steps as per theory, applicable to finalize strategy to support industry 4.0 transformation at PT XYZ. Combine steps with latest internal and external factor analysis method, such as PESTLE, VRIO, Porter Value Chain analysis, and QSPM, help broaden the perspective of the participant during discussion. The study resulted eight strategies, which then simplified by data reduction approach to be four.

Conclusions: The study successfully formulates PT XYZ's digital transformation strategy for Industry 4.0 by integrating comprehensive strategic tools such as PESTLE, Value Chain Analysis, VRIO, SWOT, TOWS, and QSPM. Strategy execution is prioritized in three phases: establishing an organizational hierarchy aligned with internal capabilities, adapting appropriate technologies to support human functions, and enhancing local and intercompany networks.

Limitations: This study is limited by its qualitative reliance on focus group discussions, which may be influenced by participant bias and lack real-time implementation feedback.

Contributions: By conducting this study, author expect it will prove the practical implementation of strategy formulation in industry 4.0 transformation for aerospace industry in Indonesia and Asia.

Keywords:
1. Automation and Digitalization
2. Aerospace Component Company
3. PESTLE
4. VRIO
Authors:
1 . Dian Ekawati
2 . Gatot Yudoko
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How to Cite
Ekawati, D. ., & Yudoko, G. . (2024). Strategy for Automation and Digitalization in Indonesian Aerospace Manufacturing. Jurnal Bisnis Dan Pemasaran Digital, 3(2), 91–105. https://doi.org/10.35912/jbpd.v3i2.4510
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Issue & Section
Vol. 3 No. 2 (2024): Januari
Articles
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References

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    Taslim, W. S. (2023). Penerapan Strategi dan Kebijakan Kementerian Perindustrian Republik Indonesia dalam Menghadapi Revolusi Industri Keempat Khususnya pada Wilayah Perbatasan. OBIS: Jurnal Ekonomi dan Bisnis, 5(1), 15-25.

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    Weihrich, H. (1982). The TOWS Matrix - A Tool for Situational Analysis. Long range planning, 15(2), 54-66. doi:https://doi.org/10.1016/0024-6301(82)90120-0

  1. Alhassan, I., Adu-Gyamfi, M., & Asafo, S. M. (2020). Formulation and Selection of Strategies Using Quantitative Strategic Planning Matrix: An Empirical Study. IOSR Journal of Business and Management, 22(7), 35-42. doi:http://dx.doi.org/10.9790/487X-2207033542
  2. Azra, F. E. A. (2022). Analisis Strategi dan Keunggulan Bersaing Sebagai Kunci Sukses UMKM Ritel: Studi Kasus Perusahaan ABC. INOBIS: Jurnal Inovasi Bisnis dan Manajemen Indonesia, 5(3), 341-354. doi:https://doi.org/10.31842/jurnalinobis.v5i3.234
  3. Barja, R. (2024). SWOT Analysis in Preparing Company Strategic Plans. Siber Journal of Transportation and Logistics, 1(4), 151-157. doi:https://doi.org/10.38035/sjtl.v1i4.162
  4. Beier, G., Matthess, M., Shuttleworth, L., Guan, T., Grudzien, D. I. d. O. P., Xue, B., . . . Chen, L. (2022). Implications of Industry 4.0 on Industrial Employment: A Comparative Survey from Brazilian, Chinese, and German Practitioners. Technology in Society, 70, 1-13. doi:https://doi.org/10.1016/j.techsoc.2022.102028
  5. David, F. R. (2011). Strategic Management Concepts and Cases Sixteenth Edition. London: Pearson Education.
  6. Desiyanti, R. (2016). Analisis Swot dan Strategi Pengembangan pada Keberhasilan Industri Kecil Rotan Kota Padang. Jurnal Apresiasi Ekonomi, 4(1), 1-14. doi:https://doi.org/10.31846/jae.v4i1.142
  7. Djordjevic, B. (2021). The Nature of Strategic Management. International Journal of Business Management and Economic Review, 4(3), 238-255. doi:https://doi.org/10.35409/ijbmer.2021.3272
  8. Doody, O., Slevin, E., & Taggart, L. (2013). Focus Group Interviews Part 3: Analysis. British journal of nursing, 22(5), 266-269. doi:https://doi.org/10.12968/bjon.2013.22.5.266
  9. Elistioko, D. N. A., Anggraeni, E., & Indrawan, D. (2023). The Value Chain-Based on Competitiveness Strategy for Improvement Strategy on Prefab Products. Indonesian Journal of Multidisciplinary Science, 3(2), 145-152. doi:https://doi.org/10.55324/ijoms.v3i2.738
  10. Jacobs, F. R., & Chase, R. B. (2018). Operations and Supply Chain Management. New York: McGraw-Hill.
  11. Kemenko. (2022). Membangun Sektor Industri yang Mandiri dan Berdaulat untuk Menjadi Kekuatan Ekonomi Dalam Negeri. Retrieved from https://www.ekon.go.id/publikasi/detail/4139/membangun-sektor-industri-yang-mandiri-dan-berdaulat-untuk-menjadi-kekuatan-ekonomi-dalam-negeri
  12. Mubyarto, M. M., & Sohibien, G. P. D. (2019). Determinan Daya Saing Sektor Manufaktur Unggulan Menuju Program Making Indonesia 4.0. Seminar Nasional Official Statistics, 1(1), 710-719. doi:https://doi.org/10.34123/semnasoffstat.v2019i1.56
  13. Puyt, R. W., Lie, F. B., & Wilderom, C. P. (2023). The Origins of SWOT Analysis. Long range planning, 56(3), 1-24. doi:https://doi.org/10.1016/j.lrp.2023.102304
  14. Rahman, M. S., Ghosh, T., Aurna, N. F., Kaiser, M. S., Anannya, M., & Hosen, A. S. (2023). Machine Learning and Internet of Things in Industry 4.0: A Review. Measurement: Sensors, 28(4). doi:http://dx.doi.org/10.1016/j.measen.2023.100822
  15. Rijali, A. (2018). Analisis Data Kualitatif. Alhadharah: Jurnal Ilmu Dakwah, 17(33), 81-95. doi:https://doi.org/10.18592/alhadharah.v17i33.2374
  16. Rousul, K., & Hidayati, A. (2022). Business Strategy Sixtrees 2022-2023. Business Review and Case Studies, 3(3), 280-280. doi:https://doi.org/10.17358/brcs.3.3.280
  17. Sakinah, M. U., & Wibowo, S. A. (2021). Internal and External Environment Analysis on The Performance of Provincial Office of Indonesian Food and Drug Authority in Manado. Journal of International Conference Proceedings (JICP), 4(2), 181-189. doi:https://doi.org/10.32535/jicp.v4i2.1240
  18. Saunders, M., Lewis, P., & Thornhill, A. (2023). Research Methods for Business Students Ninth Edition. United Kingdom: Pearson Education Limited.
  19. Shparberg, S., & Lange, B. (2022). Global Market Forecast 2022. Perancis: Airbus Operations.
  20. Subramanian, Viswanathan, R., & Parveen, J. (2019). Porter`s Value Chain” – With Special Reference to Overhaul of Construction Machineries. International Journal of Recent Technology and Engineering (IJRTE), 7(6), 380-384.
  21. Sumaryono, & Rony, Z. T. (2024). Manajemen Strategis dan Kerangka Kerja Strategis. Jurnal Ekonomi Manajemen Sistem Informasi (JEMSI), 5(3), 353-366. doi:https://doi.org/10.31933/jemsi.v5i3.1850
  22. Susilo, D. (2020). Industry 4.0: Is Indonesia Ready?. Management Analysis Journal, 9(3), 262-270. doi:https://doi.org/10.15294/maj.v9i3.39695
  23. Taslim, W. S. (2023). Penerapan Strategi dan Kebijakan Kementerian Perindustrian Republik Indonesia dalam Menghadapi Revolusi Industri Keempat Khususnya pada Wilayah Perbatasan. OBIS: Jurnal Ekonomi dan Bisnis, 5(1), 15-25.
  24. Wandrial, S. (2011). Analisis Internal Perusahaan (Strength & Weakness), Menggunakan Konsep ‘Resource-Based View of The Firm’ dengan Kerangka VRIO. Binus Business Review, 2(2), 627-637. doi:https://doi.org/10.21512/bbr.v2i2.1457
  25. Weihrich, H. (1982). The TOWS Matrix - A Tool for Situational Analysis. Long range planning, 15(2), 54-66. doi:https://doi.org/10.1016/0024-6301(82)90120-0