Fourth Case – Improving Indosat Customer Service Level

Preface

In the telecommunication industry, number of mobile phones users has been increasingly competitive. In Indonesia many service provider try to become a leader in this industry, with a latest technology, triggered brand, marketing and pricing they trying to retain their customers. Service models show that losing customers is more costly than acquiring them, and as the masses mobilize, service providers are targeting customer retention.

This increasingly competitive drive every service providers are rethinking its service strategy, especially in terms of its ability to satisfy customer service and in terms of supporting IT services. Increasing customer level is a key to facing challenging market conditions, greater competition and more demanding customers.

Accenture as a leader in global management consulting have deep understanding and proven track record in telecommunication industry to develop and implement an integrated system to helps increase their customer level.

Case Study

As a response to telecommunication deregulation, Indosat formed a merger with Satelindo and IM3, which had caused the combination of several complex systems supporting its different types of products. The various systems include highly customized CRM systems and other supporting systems for the registration and activation of customers’ services. In addition, this merger had also caused multiple cards and voucher inventory systems causing complication in reconciliation and reporting. As the business becomes more dynamic, changes to the systems become more complex and tedious, thus causing long turn-around time during issues resolutions or new product creation. In addition, the reliability of these systems is also one of the biggest concerns within the business. As the complexity of the systems grew, the legacy systems have become unreliable, impacting the customers service level.

How Accenture Helped

Using the Accenture Communication Solutions, based on telecommunication industry best practices, Accenture implemented an integrated customer care and cards inventory management systems that combined all the wireless products within Indosat Accenture managed the project by working closely with the users to understand the business concerns and practices. In addition, the project was set-up with a combination of strong local resources combined skilled people from the region and skilled resources from Accenture’s delivery center. As a result, the systems implemented had been stable, and had been able to provide better service level to the subscribers. In addition, the project also consolidated Indosat’s products within a single system, which enabled the client to provide bundled services. Indosat in turn is able to effectively track its cards inventory and distribution, resulting in a higher accuracy of SIM cards inventory.

With the above adoption, how would Indosat improve its customer service level?

Based on case study above, Indosat experiencing some issue that must be resolved, with several accenture solutions such as implemented an integrated customer care and cards inventory management systems that combined all the wireless products. After the merger, the product and customer will be a single unit and integrated into one system, this implementation will help Indosat works more effective, efficiencies and also compilation in reconciliation and reporting can be reduced.

Another solution from Accenture is Implementation the various systems include highly customized CRM systems and other supporting systems for the registration and activation of customers’ services. Implementing CRM is a key because it will enable Indosat to move closer to the customer vision, focusing less on driving customer transactions for short term gain, and more on fostering trust based relationships over the long term. In essence, Indosat can sell more and spend less as their customers are better served.

Implementing a project need more resources especially from human resources. In addition, the project was set-up with a combination of strong local resources combined skilled people from the region and skilled resources from Accenture’s delivery center. By working as a team, problem and customer solutions will be addressed more quickly and efficiently, customer satisfaction is the goal of this program and of course Indosat will increase its level of quality service for their customers in the future.

The reliability of these systems is also one of the biggest concerns within the business. As the complexity of the systems grew, the legacy systems have become unreliable, impacting the customers service level. By Implementing new system it will enabled Indosat to scale capacity to support its growing customer base. The system also reduces the time to market for the new products and services that attract for retain customers in a highly competitive environment.

As a conclusion, to continue growing while delivering consistent value and service to the customers, Indosat with Accenture solution have implemented an integrated system that will assist Indosat to reap greater efficiencies in its customer service level. As a result, the systems implemented had been stable, and had been able to provide better service level to the subscribers. More importantly, it is ready to begin its journey toward becoming a high performance business.

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Third Case – Outsourcing Concept and The Critical Success Factors for Offshore Company

Preface

In the globalization area many companies make cooperation with external parties to meet their needs, it can be understandable, because the company basically can not stand alone. They require the supplier to obtain sources of raw materials, labor and other contracts. This is necessary so the company can better concentrate on core business activities, determining how to do more with less and also gain competitive advantage.

Outsourcing is an essential tool for every business. In fact, many outsourcing pioneers discovered that the early phase of industrialization is focused primarily within the IT environment. The problem is that sometimes the company’s capabilities in house can not accommodate these achievements, so need to outsource some processes or IT services.

IT outsourcing allows the business to focus on what really matters, meanwhile the vendor or IT outsourcing service provider focusing on their best skills of managing IT. Not only reduce cost, Implementing IT outsourcing is a strategic asset to help the companies stand apart in their markets. They seek to leverage IT as a key driver of high performance.

Accenture as a global management consulting, technology services and outsourcing company have a proven track record to provide a full range of IT needs, start from an application, design or infrastructure outsourcing to drive business outcomes.

CaseStudy

One of the largest offshore oil exploration and production company In Indonesia, operating in the Southeast Sumatra, completed its SAP ERP implementation project in 1998. The company then needed user support in applying the system to achieve and sustain the benefits of the SAP implementation. The company operates 24 hours a day, 7 days a week in an offshore location that requires high availability and reliability on its ERP and other applications. At the same time, its business environment also requires to have a highly productive information technology services in terms of quality, predictability and responsiveness. This high availability and reliability, predictable and yet cost effective information system support cost were a difficult challenge because the company did not have adequate IT resources.

How Accenture Helped

Accenture provided IT application support services, established the company’s IT business processes and managed the overall delivery of information technology services since 1998.
Accenture leveraged its IT Outsourcing Delivery Methods and IT Outsourcing Delivery Assets to ensure that the company achieves its outsourcing objectives of:
• Increasing productivity (quality, predictability and responsiveness) of IT services
• Providing access to skilled IT resources
• Increasing access to current IT technologies and best practices

What would be the benefit for the company in adopting an outsourcing concept?

Based on case study above, outsourcing services are no more related to only cost saving but have extended to offer greater benefits to the company, the benefit can be listed as below :

• Focus : By an outsourcing, it will help the company focus better on core business activities by managing other less important aspects of the business. The management in the company can spend more time managing details then actually planning and implementation.

• Cost : Reduction in cost of development is one of the biggest benefits offered by an outsourcing concept. It will reduce development cost approximately 30-50%.

• Maximum resource utilization : Internal resources of Accenture can be utilized in a manner so as to ensure skills of the resources are utilized to the maximum benefit.

• Advanced Technology : The Company will get the latest technology and best practice that Accenture implemented while delivering various services.

What would be the benefit for the company in adopting an outsourcing concept?

To be able to support the needs of the business, the company must realize there are some critical success factors for making outsourcing work. Here are some critical success factors:

• Manage the Relationship

Successful outsourcing is all about managing the relationship, there is a commitment from the management and the vendor (outsourcing company) to ensure that both parties gain the maximum benefit. Both parties should clearly understand the costs, risks and rewards of pursuing this path. There is some case that outsourcing relationships have failed. They failed because the responsibility of managing those relationships defaulted to the technical teams instead of the senior IT leadership who negotiated the deliverable for the outsourcing contract in the first place. This enables the management team to deal with problems before they get they get out of hand.

• Performance Management

The management must monitor and evaluate the performance of the outsourced service, identify all goals and objective from the beginning and this will enable the company to deal with performance issues before they get out of hand.

• Financial Management

Managing the financial management is just as critical as managing financial performance because it ensures that the outsourcer is meeting its delivery commitment for the non-IT items that are critical to the success of the outsourcing program.

• Service Value

Managing Service Value enables IT organizations to prove to the business that the outsource is delivering IT services optimized for cost and quality.

Conclusion

Outsourcing is an essential tool for every business. By an outsourcing concept the companies have the goals to Increasing productivity, reducing cost, improve reliability and predictability in the globalization area. Moreover, the company must realize that there are some critical success factors for making outsourcing work.

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The Second Case – ERP Implementation on A state-owned integrated electricity company

Many organizations have implemented ERP system to draw as much value as possible from their investment and to use it as an enable of high performance. The system attempts to integrate all departments and functions across a company into a single computer system that can serve all those different departments particular needs, so that the various departments can more easily share information and communicate with each other. The concept of ERP system is simply because the technology can provide value added point, this include: eliminate of processes that do not need (elimination process), simplification of complex processes (simplification process), and unification redundant processes (integration process), and automating manual processes (automation process).

The key objective of an ERP system is an Integration Process, the integration between business processes helps develop communication and information distribution, leading to remarkable increase in productivity, speed and performance. The integration is typically accomplished by constructing a single database repository that communicates with multiple software applications providing different divisions of an organization with various business statistics and information

Accenture as a global management consulting, technology services and outsourcing company have a proven track record to implemented ERP System in many organization and always committed to delivering innovation and help client to improve their performance.

CaseStudy

A state-owned integrated electricity company employing around 38,000 staff, serving over 37 million customers (households, industry, business and others) with a total asset of USD 35 billion (December 2009), has been operating throughout the country with non-integrated systems and non standardized business processes. The company’s major issues were that business processes are not standardized and consolidated financial reports were not produced on a timely basis, lacking important decision-making information. In addition, lack of integrated knowledge and control of inventories and assets led to underutilization of assets. With respect to Talent Management, the company’s processes concentrated on basic record keeping and un-integrated payroll systems, making it difficult to introduce training plans, career management, succession plans, transparent performance evaluation, and other requirements of a modern Human Resource Management area.

How Accenture Helped

Accenture implemented an integrated Enterprise Resource Planning (ERP) that covers Financial Management, Material Management and Human Resource Management areas, using SAP.

Given the large scale of ERP Implementation and considering the company’s first experience with an integrated system, major change management effort is required. To minimize implementation risk, Accenture selected a multiple phase approach. Combinations of rollout sites were carefully picked to ensure minimal business disruption and yet breadth of functionalities is covered. Lessons learnt from earlier roll out was studied and immediately applied to the next one.

A total of over 500 training classes were held and a total of over 10,000 training days were consumed by users to learn the ERP system. Appropriate management sponsorship was maintained throughout the implementation, including training which resulted in over 95% training attendance rate.

Throughout the implementation journey, Accenture managed to help the company build ERP template that consists of standard policies, business process, chart of accounts and reports to be used at other company’s business units.

By implementing ERP, what would be the impact to the company’s business processes?

Based on case study above, Accenture implemented an integrated Enterprise Resource Planning (ERP) that covers Financial Management, Material Management and Human Resource Management areas, using SAP.

Financial Management

ERP for Financial management it’s a module that include Accounts payable, accounts receivable, fixed assets, general ledger, cash management, and billing. By using an integrated system it will provide maximum efficiency and accuracy in core financial functions, consolidated financial reports were produced on a timely basis, and also deliver comprehensive data to enable management to make strategic decisions.

Material Management

The state-owned integrated electricity company faced problem that lack of integrated knowledge and control of inventories and assets led to under utilization of assets. ERP for Material Management it’s a module that include material control, assets, procurement and inventory control. By using this ERP all process will be integrated and have a centralized database asset. The benefit implementation such as tighter inventory controls, stronger service within each department to control inventories and assets, and also increase operational performance.

Human Resource Management

ERP for Human Resources Management it’s a module that include recruitment process, training development, compensation, time and attendance, integrated payroll system. The implementation of an integrated system it will have a benefit such as reduced human resource administration, improved human resources service delivery, and also enable talent optimization that include career management, succession plans and performance evaluation of each personnel can be monitored by the system. Overall with ERP Human Resources department can work more efficient and effective.

As a conclusion, with all above aspect, ERP as an integrated system makes all business process running smoothly, although takes a long time to do implementation and training are required to learn it. The implementation of ERP System can assist the company to improve efficiency, productivity and business process performance. ERP also helps the company build cost effective solutions, give contribution to competitive advantage, and accelerate business results, so for the further management can make the right decision for the sake of continuity of business enterprise.
On another major business process, with a standardization financial reporting it will significantly reduce the time used to compile business planning, simultaneously to improve the quality and data integration.

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First Case – Management Consulting for MedcoEnergi

Yay! I’ve been selected to participate in the Accenture Do You Know? Competition.

Here is the first case :

MedcoEnergi is an integrated energy company with business activities consisting of oil and gas exploration, development and production in Indonesia and abroad, as well as LPG production, chemical, and power generation. It is the first Indonesian company operating in the oil and gas exploration and production business listed since 1994 in the Indonesia Stock Exchange, the Singapore Stock Exchange and the Luxemburg Stock Exchange. Realizing their business challenges, MedcoEnergi asked for Accenture expertise to assist in becoming a global player and leader in the energy business by implementing several improvement projects.

After undergoing an organization transformation at the corporate level, the company has been facing several challenges that hindered its effectiveness to perform as a world-class operation. Based on Accenture’s diagnostic, competency improvement at the leadership level was identified. MedcoEnergi did not have a formalized integrated company-wide leadership program to address the requirements and conditions for a company to grow from within and knowing how leaders can teach leaders.

How Accenture Helped

Accenture helped MedcoEnergi through 3 programs, this include :

a. Integrated Program Management (IPM) initiative to ensure alignment, coordination, and integration among multiple improvement initiatives. IPM acted as a governing body to align initiatives that were formed based on the key findings of the High Performance Business Framework project. It covered the coordination and facilitation of a total of 23 initiatives implementation at both the corporate and subsidiaries levels.
The goals of this programs is to implement an integrated environment that combines all aspects, so it could communicate effectively between corporate team and subsidiaries level, make the entire program act likes running one program which is gives a solid foundation for managing and controlling all the projects. Coordination within all associate is important to successfully this program, they work and give information to each other, learn the tools and techniques for effective cross functional program so they can reach the goals together.

As a result of this program, MedcoEnergi will have benefit:
– Communication and coordination between corporate and all subdiaries level can keep always on the right track.
– Improved cooperation and reduced organizational conflict through development of shared objectives.
– Enhanced making a decision.
– Efficient management of complex projects according to MedcoEnergi objectives

b. Business Process Realignment is focused on building a process and tool to enhance investment/ divestment decisions and transparency.
Realigning core business processes is a vital step in the understanding of the business process because it can lead to a significant improvement in performance, market position and customer focus and also helping management respond to internal problems and react to external threats.
These processes are used by people. Their involvement, understanding and action are critical to a successful outcome, this will help the management make a right decision which is very useful to continue improvement and minimize risk.

As a result of this program, MedcoEnergi will have benefit:

– Understanding of the effectiveness and efficiencies of key business processes
– As a tools to better reflect how the company actually did business, make a new improvement also right decision, so it can be increased market share, revenue, and reduced costs.

c. Leadership Development Program.
Successful businesses know that investing in the next generation of leaders is critical to sustaining competitive advantage and achieving corporate growth over the long term. Leadership Development focused on designing, developing and monitoring its Leadership Development Programs for Senior Management level. As a leader in a department, Senior Management level must effectively manage people and processes, they needs to be a smart leader with advance decision making, execution skills and also well equipped to take on greater cross-functional responsibilities. With their knowledge and skill they can deliver what they know to the lower level, so in the next generation MedcoEnergi will grow with high potential leaders.

During this engagement, Accenture worked with 12 Medcoenergi’s best talents and all directors from four different subsidiaries within 6 months in:
• Developing Blueprint for Leadership Development Program which includes coaching, action learning and workshops.
With developing blueprint, senior management level has benefit to enhance their knowledge of basic leadership principles and skills.

• Creating a company-wide integrated program to develop leadership capabilities.
As a leader in the energy business, all program must be integrated to establish a shared understanding of the critical success factors for performance in MedcoEnergi leadership roles.

• Designing and develop action learning project, workshop material and format based on their leadership competencies definition and requirement.
Leadership competencies cannot be acquired in a few training sessions or in a single training course, but only as the result of a long-range development process over a number of years. The acquisition of leadership competencies occurs by plan and design and the goals of this program is to learn how to make leadership process more efficient and effective.

• Implementing and monitor effectiveness of leadership development program.
Leadership development program must be monitored by another team to control learning process and avoid deviation, so they always focus on MedcoEnergi objective.

• Creating a Leadership Statement to establish a formal definition of leadership to strengthen culture and values.
Leardership statement will bring an impact for MedcoEnergi leadership culture and values in the next future, its all about giving the motivation and quality of the leadership.

As a conclusion, the implementation of those programs (Integrated Program Management, Business Process Realignment and Leadership Development Program) will help MedcoEnergi increase business performance and provide value added point for their competitive in global market.

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Berbagi Tak Pernah Rugi, Edisi Solidaritas Bencana Indonesia

Mari sumbangkan kepedulian melalui Berbagi Tak Pernah Rugi bersama Bali Blogger Community (BBC). Ada kegiatan (a) Donor Darah, (b) Pasar Barang Bekas, (c) Konsultasi Kesehatan, dan (d) Hiburan.

Seluruh hasil kegiatan akan disumbangkan untuk korban bencana di Wasior, Mentawai, dan Merapi.

Di Pasar Barang Bekas tiap orang bisa menjual dan membeli barang-barang bekas. Pakaian, CD/DVD, alat elektronik, buku, majalah, dan apa saja ba…rang bekas Anda. Seluruh hasil penjualan akan disumbangkan untuk para korban bencana.

Di Konsultasi Kesehatan, tiap orang bebas untuk konsultasi tentang kesehatannya. Tiap pasien akan dikenakan biaya Rp 10.000 yang hasil akhirnya akan disumbangkan juga pada korban bencana.

Acara ini terbuka untuk diikuti semua warga dunia maya di Bali. Anda Facebooker, Kaskuser, Tweeps, Hacker, dan seterusnya dipersilakan untuk ikut serta.

Jika Anda ingin memberikan sumbangan, silakan kirimkan ke rekening:

Ni Nyoman Arie Suriasih
BCA #1461554551

Website: www.baliblogger.org | www.balebengong.net
Twitter: @baliblogger | @balebengong
Email: dirgantarabagus@gmail.com.

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Setahun disini…

1 oktober lalu, tepat satu tahun saya berada disini . Dengan label sebagai support, banyak hal yang saya lewati melalui satu tahap yang dinamakan pembelajaran. Dan memang tidak mudah untuk belajar satu sistem, khususnya di bidang perhotelan yang mana sistemnya terintegrasi (satu dan yang lainnya saling berhubungan) dan satu hal yang pasti sistem itu tidak akan pernah berhenti, selama hotel tidak tutup maka sistem itu akan terus berjalan, nah tugas kita sebagai support adalah menjadi supaya sistem itu running well.

Sebagai orang support, label mesti stand by 24 jam memang tidak salah, dan saya mengerti akan hal itu seperti diawal saya mengiyakan menyanggupinya, dan memang disediakan fasilitas untuk itu. Yang dibutuhkan hanya kemauan keras, loyalitas dan ketahanan tubuh. Dalam versi saya..Kemauan Keras yaitu mau ga kamu menerima telepon atau diganggu pada saat diluar jam kerja ? Loyalitas pekerjaan ini tidak membutuhkan waktu 9 jam kerja..bahkan lebih, dan saya dituntut untuk itu. Ketahanan Tubuh…kadang diperlukan extra tenaga untuk ini, kadang dalam keadaan kondisi tubuh kurang fit pun mesti siap sedia.

Banyak yang saya lewati selama setahun terakhir disini diluar pembelajaran. Yang biasa saya tampil apa adanya di tempat kerja sebelumnya, tidak disini..disini dituntut rapi dalam berpakaian dan tidak boleh berjenggot. Menambah teman dan koneksi dan mereka pun orangnya asik asik lowh 😉 Oh ya..banyak MACAN (manusia cantik) disini, dan saya lebih mengutamakan request dari mereka, hiihihih….(nggak dink…cuman prioritas didahulukan :D)


Selebihnya…dalam hal pekerjaan tentunya sama saja (dimanapun akan tetap sama saya kira) butuh keuletan dalam menjalaninya, tidak usah neko neko, jalani saja..support akan selalu menjadi support (kecuali takdir mengatakan beda).
Sekali lagi…memang butuh waktu untuk mengerti benar sebuah sistem dan seiring berjalannya waktu…karir tentu saja akan berkembang, let see…;)

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