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Journal : Journal The Winners

Central Maintenance Spin-Off Creation towards Digitalization Focused on the Parent Company: A Case Study of Integrated Steel Corporation (ISC) in Indonesia Imaduddin, Dani Akhmad; Wandebori, Harimukti; Hamsal, Mohammad
Journal The Winners Vol. 25 No. 1 (2024): Journal The Winners
Publisher : Bina Nusantara University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21512/tw.v25i1.11686

Abstract

The steel industry plays a crucial role in national development. Major global steel producers such as the United States, Russia, and Japan have seen declines due to the rise of China as a dominant steel producer. Integrated Steel Corporation (ISC) in Indonesia has also faced declining performance, with its market capitalization dropping by 68.9% over the past eight years. The research primarily aimed to analyze customer preferences in the maintenance industry and determine positioning strategies. Additionally, it sought to identify the factors driving the formation of the Strategic Maintenance Services (SMS) spin-off from ISC and propose strategies for SMS to achieve a competitive advantage. Data were collected qualitatively through interviews and Focus Group Discussions (FGDs) with customers to understand their perspectives, SMS management to grasp core business competencies and strategy, and ISC management to understand the parenting strategy. The results show several internal dynamics within ISC drove the formation of the SMS spin-off: 1) the transformation of the parent company; 2) short circuit incident at the main ISC factory; and 3) the cost burden of maintenance support. External factors indicate rapid industrial growth and the company's strengthening as a group after experiencing losses for almost a decade. The proposed strategy for SMS involves leveraging ISC’s subsidiaries and joint venture companies for centralized service maintenance. SMS aims to offer customized one-stop maintenance solutions with high quality at competitive prices by enabling Digital Maintenance Information (DMI). The target markets include large industries in steel manufacturing, petrochemicals, flour mills, cement, and logistics.
Co-Authors A.A. Ketut Agung Cahyawan W Abdul Mutalib Abdul Rahman Saleh Adhytia Pradiktha Darmawan Adnan Faris Sadewo Adrian Adrian Adriatama, Irshad Aliyya, Zalfa Andenko Utama, Andenko Andika Putra Panengah Arthur Simanjuntak Athaya, Neysa Shifra Audya Anindhita, Audya Aziz Laisa, Abdul Azkiya, Salma Calista, Vina Fabiola Chindia Ferdinansari, Chindia Chyntia Ika Ratnapuri, Chyntia Ika Dafid Dafid Darusulistyo, Sidik David CUH Sihotang Dermawan Wibisono Diah Armita, Sendika Dina Fadia Ditaprawira, I Gst. Ngr. Agung Bayu Dolitua, Arjuna Dyasanti Vidya Saputri Erik Joost de Bruijn Fadhil Fahmi Fikri Rasyidin, Muhammad Firdaus Ghalba Fitri Fitriyani Florentia Anindita Apsari Isthika Harm-Jan Steenhuis Hendra Winata, Hendra Imaduddin, Dani Akhmad Iman Haryanto Irfan Fauzan Rasyad Iskandar, Bachtiar Ivan Gurhananda Izzah, Zulfa Nurul Jihan Syifania Anwar, Jihan Syifania Jumar Jumar Kenny Kenny Khalandara, Khalandara Lubis, Kevin Fachrul Razi M. Rizqi Fabianto, M. Rizqi Martha Yoanita Matahari Kesadaran, Matahari Melvina Pascaline Mohammad Hamsal Muhamamd Falah Haidi, Muhamamd Falah Muhammad Fachruddin, Muhammad Muhammad Fakhrizal Muhammad Qareza Qualdi Muhammad Sherdian Wilandria Syofrinaldy Wilandria Syofrinaldy Noer Mulya, Tiwi Permata Mustika Sufiati Purwanegara Namira, Shastya Rizka Novika Candra Astuti Nurlia Roza, Innayah Nurul Huda Patrick Marco Andries, Patrick Marco Pidada, Agung Ananda Putera Qinanti, Rizqyani Rachmat Suhadi Raedi Zulfahmi Hanifi Ramadhani, Nabilla Rizky Ratih Ayudyaputri Reza Relen Indriyanto Riandiza, Bima Ricky Febrian, Muhammad Riski Pratama, Riski Rizal Abdullah, Rizal Ronaldo Bagus Putra Rumintjap, Astrid Felicia Rusbagja, Muhammad Zidane Ryan Gulfa Wijaya Sanctita, Mutia Puri Santi Novani Setiawan, Nisa Aulia Nur Shauma, Rena Fazza Simon, Zefanya Ferdinand Sutansyah Marahakim Syukri, Khariful Tama, Widya Teddy Mulyadi Hidayat Tedo Esmu Ziraga, Tedo Esmu Timothy Winata, Hansen Trihandoyo Indroyono Soesilo, Trihandoyo Indroyono Vanya Winona Wahyudi Wahyudi Yonathan Adiputra Susanto Zulkifli Zulkifli