The information technology (IT) industry has recently been shaken by a new kind of revolution. The history of IT was once a simple matter. It took its rhythm from the pace of innovation: from 1945 -1950, the first computers, in the 1960s, the standardization of transistors, then the first high-level programming languages and the third generation of computers. During the decade 1970 -1980, integrated systems and microprocessors burst on the scene, while the 1990s are hastening the convergence between computer networks, telecommunications, and audiovisuals. This steady mutation was going on quietly until the "information superhighway" came along to shatter the calm.

Almost about half a century Bakrie Group has been developing its enterprise to become top ten Indonesian diversified conglomerate. The business coverage has been increased overtime, starting from commodity trading, Bakrie went to businesses of plantation, telecommunication, infrastructure & heavy industry, petrochemical, property, finance, electronic media and some more. On its 'Vision 2000', Bakrieis willing to become a world-class enterprise in the year 2000.

To succeed in the customer-driven global economy, Bakrie companies must be world-ready, even if they choose to stay at home. They must

- meet best-in-world standards;

- pioneer in the best ideas and technologies;

- invest in works force skills and offer employability security;

- act as a partners to suppliers and customers;

- connect to networks providing broad reach and additional resources.

Prosys is Bakrie's subsidiary which specialized in project management. Prosys also provide IT services and consulting. But, since it has limited IT resources and capabilities, its services do not grow as expected. Most .of its IT projects are just opportunistic driven.

To become a world-class company, Bakrie needs world-class IT services. So far, each subsidiary has its own IT department to support the operational activities. However, the internal IT services are limited with only small number of IT professionals and unsophisticated systems. Almost no company within Bakrie which has already put IT as a cpmpetitive strategy. Lack of local IT resources as well as risks of big IT investments might bring management of Bakrie to wait and see IT policy.

Bakrie is willing to use IT services from Prosys, but existing competencies did not give enough confidence to Bakrie companies to award an assignment to Prosys. Most Bakrie people think that Prosys's service offering is not competitive. They also think that Prosys should offer services to Bakrie with discount price.



Research Location: PT. Prosys Bangun Nusantara

Supervisor: Wagiono Ismangil

Accepted on June 1996



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