{"id":94308,"date":"2021-05-26T19:04:45","date_gmt":"2021-05-26T12:04:45","guid":{"rendered":"https:\/\/bahtera.jp\/appsheet\/"},"modified":"2025-03-17T19:30:13","modified_gmt":"2025-03-17T12:30:13","slug":"appsheet","status":"publish","type":"post","link":"https:\/\/bahtera.jp\/en\/appsheet\/","title":{"rendered":"\"The Potential of In-House IT System Development for Achieving Business Improvements in Indonesia"},"content":{"rendered":"

As the functionality provided by tools like Kintone and AppSheet becomes more advanced, an era is emerging in Indonesia where in-house development of business systems is becoming possible. I believe that fundamental business transformation through IT is more advantageous when done in-house rather than outsourced.
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Production Control System in Indonesia<\/p>\r\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t

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It\u2019s not limited to Indonesia, but it\u2019s often said that the ultimate goals of the manufacturing industry are twofold: “cost reduction through productivity improvement” and “delivering products on time without delays.” From a management perspective, business plans are crafted to maximize growth based on market supply and demand adjustments. However, even if sales increase due to low pricing, it only reduces gross profit, leading to losses from selling and administrative expenses or non-operating costs. On the other hand, raising unit prices isn\u2019t straightforward due to market price considerations. Therefore, process management based on production plans aimed at reducing costs through … <\/p>\n\t\t\t\t\t\t\t\t<\/div>\r\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t

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Business Practices Continue to Evolve<\/h2>\n

In Indonesian companies, internal business tasks such as data management and forms are often handled manually using Excel. The convenience of Excel lies in its ability to flexibly modify formats embedded with formulas, allowing incremental updates and adjustments as needed to create an optimal format tailored to current work requirements.
\nIn other words, it\u2019s like individuals continuously improving their tasks little by little on a daily basis.
\nBusiness operations are a collective of individuals working together, and as customers and suppliers increase, the way tasks are performed gradually changes. Excel is adjusted to adapt accordingly. However, when formulas become too numerous, opening files takes longer, or when necessary data is scattered across individual PCs, consolidating it becomes time-consuming. At a certain point, limitations start to become apparent.
\nThis is where the idea of introducing a system comes in\u2014for visualizing internal operations, sharing accumulated information, and systematizing information for practical use<\/span>.
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\nBy systematizing the connections between task processes that have been refined at an individual level over years, it may become more convenient or easier compared to the Excel era. However, since business practices continue to evolve with environmental changes, system modifications\u2014or business improvements\u2014will be necessary again in a few years. <\/p>\n

Issues with Outsourcing and In-House Development of IT Systems in Indonesia<\/h2>\n

Unless it\u2019s a large corporation with a robust information systems department, in Indonesia\u2014unlike Japan\u2014the IT department often lacks sufficient staff. As a result, IT system implementation for business tasks is typically outsourced to IT service companies like ours.
\nEven in relatively small companies, if there\u2019s an Indonesian technician with strong IT skills on staff, they may develop systems in-house and integrate them into internal operations. However, Japanese expatriates in such companies often say, \u201cSince the system was built single-handedly by an IT-savvy Indonesian, we don\u2019t understand its inner workings, and we\u2019re worried about what happens if they leave.\u201d <\/p>\n

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  1. The weakness of outsourcing is its difficulty in adapting to changing business flows due to environmental shifts.<\/li>\n
  2. Even if a company wants to develop in-house, there\u2019s no IT-skilled talent internally.<\/li>\n
  3. Systems built by artisan-like IT technicians tend to become person-dependent.<\/li>\n<\/ol>\n<\/div>\n

    The issues with outsourcing and in-house development of IT systems in Indonesian local subsidiaries can be summarized in these three points.
    \nAs a result, three problems\u2014lack of visibility into the current situation, numbers not aligning, and processes not connecting<\/span>\u2014not only reduce operational efficiency but also lead to a decline in employees\u2019 awareness of sales and cost management.
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    Recommendations for Japanese Companies in Indonesia Struggling with Production Management Systems<\/p>\r\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t

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    All internal business operations are ultimately connected to revenue, which is the source of a company’s cash inflow, and purchasing, which is the source of cash outflow. When three key issues arise\u2014lack of visibility into the current state, discrepancies in figures, and a disconnect in process flow\u2014it not only reduces operational efficiency but also leads to a decline in employees’ awareness of sales and cost management.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\r\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t

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    \nPersonally, I believe the ideal IT-driven business improvement in Indonesia is \u201csomething that can be flexibly modified to adapt to environmental changes like Excel, requires no advanced IT skills, and can be built by internal business staff\u201d<\/span>. Such a convenient IT tool didn\u2019t exist before, leaving outsourcing as the only option. However, with technological advancements, we\u2019re entering an era where realistic proposals are possible. <\/p>\n

    Performance Data Collection System via Smartphone Using Google AppSheet<\/h2>\n