Practical implementation of Innovations in an Indonesian company

1
Practical implementation of Innovations in an
Indonesian company

• Experience sharing
• By PT Rekayasa Industri
• March 2008

2
Presentation topics

• What is PT Rekayasa Industri
• Definition of Innovation vs Invention
• Typical Corporate Innovations in our companies
  between
• Our latest Corporate innovation
• Our latest Technological innovation

3
We are currently 1000 people company with 600
engineers around 70 post graduates
4
We built all of the fertilizer plants in
Indonesia, Malaysia Brunei
-
8
5
We built 70 of all of the cements plants in
Indonesia
6
We built oil refineries in Indonesia
7
We install pipeline under the sea, across 168 km
of Sunda strait
8
We built the largest Biodiesel plant in the
world, located at Dumai
9
We engineered the largest LNG plant in Asia LNG
Tangguh
10
ButWe were bankrupt in 1994 !!!!
11
How did we do it ?
12
The answerthrough continuous Innovation !!!
13
Presentation topics

• What is PT Rekayasa Industri
• Definition of Innovation vs Invention
• Typical Corporate Innovation in our company
  between
• Our latest Corporate innovation
• Our latest Technological innovation

14
Definition of Innovation

• the act of introducing something new something
  newly introduced (The American Heritage
  Dictionary)
• a new idea, method or device (Merriam-Webster
  Online)
• the successful exploitation of new ideas
  (Department of Trade Industry, UK)
• change that creates a new dimension of
  performance Peter Drucker (Hesselbein, 2002)
• Note
• NEW - must be substantially different, a
  insignificant change, and increase in value

15
Invention vs Innovation

• Invention is the first occurrence of an idea for
  a new product or process
• Innovation is the first attempt to carry it out
  into practice
• An innovation is not an innovation until someone
  successfully implements and makes money on the
  idea

16
Presentation topics

• What is PT Rekayasa Industri
• Definition of Innovation vs Invention
• Typical Corporate Innovations in our companies
  between
• Our latest Corporate innovation
• Our latest Technological innovation

17
1994 - Re-engineering the corporation (Marketing
innovation)

• Customer focus
• Formation of SBU (Strategic Business Unit)
• End-to-end responsibility

18
1995 Implementation of ISO 9001 Quality system
(Process innovation)

• Introducing the concept of Internal dan
  external customer
• Starting Continuous Improvement cycles
• Do what you write Write what you do

19
1995 - Implementing Project Management Body of
Knowledge (process innovation)

• Distributed Authority (empowerment) Centralized
  control
• Introducing the concept of Benchmarking Project
  execution based on intenational standards methods
  such as CII
• Implementing Lessons learned system

20
1996 - Implementation of Information Technology
based on Digital Nervous System

• E-mail
• ERP system
• Intranet
• 3-D Plant Design System
• E-procurement
• Workflow

21
Implementing the concept of Digital Nervous
System
22
We completely eliminate our manual design
drafting to full 3-D Plant Design System
23
Plant design review are perfomed in a virtual
walkthrough
24
Development of Portal in our Intranet
25
Rely on Intranet as knowledge base
26
Employee Self Service system
27
Implementing Workflows
28
In 1997, we are the first to implement VSAT(s) in
our project site offices
29
Revenue Growth in Billion Rupiah
30
Net Profit Growth in Billion Rupiah
31
Presentation topics

• What is PT Rekayasa Industri
• Definition of Innovation vs Invention
• Typical Corporate Innovations in our companies
  between
• Our latest Corporate innovation
• Our latest Technological innovation

32
SWOT Analysis in 2004

1. Too much reliance on Fertilizer business
2. Natural gas is rapidly depleting Fertilizer
   projects are decreasing in numbers
3. Energy upstream market is starting to boom

33
Converting to Customer Centric Organization
(Marketing innovation)

• Not ordinary marketing
• Changing from customer focus to customer centric
• Knowing customer intention
• Creating new market

34
Transformation to Customer Intention Centric
Organization
create and develop
Values together
With clients
Providing
Customer Intention Centric
Full
Rekayasa future
Service
Complexity
Expand to
To clients
New
Market
Customer Service Centric
region
Dedicated on
Market Centric
Fertilizer
Business
In Indonesia
Fertilizer Based
Transformation Direction
Learning
EPC to
become
Main cont
Learning EPC
Rekayasas past
Competitiveness
1995
2004
2000
35
Typical conventional organization
36
Typical examples of our customer centric
organization
37
Cluster concept introduced byMichael Porter
38
Implementation of Cluster concept in Customer
Centric Organization
39
Sales growth by 5 (five) times in the past 4
years
Target
Customer centric organization
40
Presentation topics

• What is PT Rekayasa Industri
• Definition of Innovation vs Invention
• Typical Corporate Innovations in our companies
  between
• Our latest Corporate innovation
• Our latest Technological innovation

41
Low cost Power plants using Geothermal energy
42
Our secret innovation Specialized Vacuum
condensing system
43
Convert Coal to Synthetic Natural Gas for making
Ammonia Urea
44
The first application in Indonesia to make Urea
fertilizer from Coal
45
We are implementing Advance Technology to convert
off gas from Balongan Refinery to become Olefin
46
We signed a US 283 million dollar contract to
convert an ordinary Refinery to become a
Petrochemical complex
47
Indonesia needs 2 (two) type of Institutions

• Inventive institutions where new ideas or
  products are created or developed such as
  Research laboratories, Universities and Research
  institutions
• Innovative institutions where the new ideas or
  product are implemented to create significant
  change and value creation

48
Summary

• Innovation is a change that creates a NEW
  dimension of performance - Peter Drucker.
• NEW - must be substantially different, a
  significant change and an in increase value.
• An innovation is not an innovation until it makes
  money.
• Practical proven implementation examples of
  Marketing innovation, Process business innovation
  and Technology innovation in an Indonesian
  company are presented

49
To read more about prospects, opportunities
innovations please go to www.triharyo.com