Information technology value engineering through partial adjustment valuation theory

Lukman Abdurrahman (Telkom University)
Candiwan Candiwan (Telkom University)

TELKOMNIKA (Telecommunication Computing Electronics and Control)
Vol 24, No 1: February 2026

The paper proposes a systems management approach that utilizes information technology (IT) treatment as a framework to help firms enhance future performance by optimising key parameters. The method certifies a valuation approach that enables businesses to better manage their IT infrastructure and improve performance. A case study of A case study of PT Telekomunikasi Indonesia (Telkom) and PT XL Axiata (XL) (2004–2018) shows the method’s effectiveness. Once the IT value is identified, specific parameters can be engineered to improve performance without changing other variables. The approach uses a partial adjustment valuation model, enabling performance gains at lower costs. The results show significant improvements in both firms’ performance values and ratios compared to their originals. This supports adopting a cost leadership strategy, making IT based businesses more efficient, cost-effective, and better performing across financial, business, and strategic dimensions.