The Impact of Information Technology Application to the Enterprise Design Factors and Competitive Advantage of Manufacturing Industries in Indonesia

Oleh: SUTRISNO, JOKO
Email: library@lib.unair.ac.id; library@unair.ac.id
Post Graduate Airlangga University
Dibuat: 2007-01-29 , dengan 1 file(s).

Keywords: Information technology, enterprise design factors, competitive advantage of information technology, manufacturing industry.

Subject: STRATEGIC PLANNING; INFORMATION TECHNOLOGY

The current globalization era will bring manufacturing industries to a sharper global competition. The one who win in the competition, are those having competitive advantage. The competitive advantages of manufacturing industries are characterized by having operation efficiency, suitable products, quality products and opportunity to spawn new business. The manufacturing industries, those are not efficient and less competitive, they will soon disappear and out of market.

This study is assessing the application of Information Technology in manufacturing industries to increase its competitive advantage. The application of Information Technology in this study is defined in the form of computer integrated manufacturing (CIM) system, which will cover the following activities (1) office automation (2) manufacturing resources planning system (3) manufacturing communication (4) computer aided product design and (5) manufacturing process system.

Application of Information Technology in manufacturing process will leverage the competitive advantage of manufacturing industries, as it will increase business operation efficiency, faster products differentiation, products quality improvement, and spawning new business,

However investment in information technology is considered costly, require long-term preparation and need strong coordination in all aspect of the manufacturing organization. Information Technology investment should be well planned and calculated accordingly to avoid the unnecessary kit due to the disability in operating the Information Technology based equipment system

Enterprise design factors of manufacturing industries such as training, business process re-engineering, system design, technology management and production planning as part of the integrated system of manufacturing industries will support and intensify the utility of Information Technology based equipments to bring about the competitive advantage of manufacturing industries in Indonesia.
It is suggested that full and thorough understanding to the role of Information Technology based equipment will enable enterprise in reducing risk and cost involved in Information Technology investment and increase the enterprise efficiency, products quality and provide capacity in spawning new related business