INFORMATION SYSTEM STRATEGIC PLANNING MODEL
STRATEGIC PLANNING MODELS IN INFORMATION SYSTEMS APPROACH WITH TELEVISION broadcasting industry BLUE OCEAN STRATEGY AND BALANCED SCORECARD
Abstract
Increasing competition in the Indonesian broadcasting media companies today, especially television, allowing a business strategy needs to survive. Almost all the broadcast media utilize IT in their operation. But the ability of planning, management and implementation of IS / IT that is associated with its business strategy is still less applied. This can be seen from the output of each program broadcast from TV stations having the same hue and variety. Differentiation and product innovation does not appear where between one station to another station to produce products which are similar but not the same. Though their audience consists of many layers, cultural and social backgrounds, which definitely have different tastes and this is an opportunity to be worked out more carefully. Strategic Planning Information System is now one of the key in achieving company goals, due to be aligned with business strategy. Strategic Planning Information System that will be discussed in this study is to use business strategy Blue Ocean Strategy (BOS) to be integrated with the Balanced Scorecard (BSC). With properties on the BOS and the BSC, this answers the needs of Strategic Planning of Information Systems at the television media industry characterized by dynamic, innovative and high-level competition with the achievement of measurable results and comprehensive. PSSI is implemented in the Son of Space Toon TV. The study shows a PSSI TV broadcasting industry in line with its business strategy. The components of the broadcasting industry that caught the BOS value curve is mapped into the 4 BSC perspectives, namely financial perspective, customer, internal business processes, learning and growth. The result was further elaborated on the needs of the IS / IT aligned with business strategy BOS using the four perspectives of BSC. Needs of the IS / IT that appear later in the Inventory to be run in accordance with the strategic management of IS / IT him.
Keywords: Blue Ocean Strategy (BOS), Balanced Scorecard (BSC)
1. INTRODUCTION
Ward and Pepard in his book Strategic Planning for Information Systems said, to support a company's business strategy, an appropriate strategic Information Systems (IS) and Information Technology (IT) [12]. In recent decades with the advancement of IT, business people in the field of mass media, especially electronic undergone many changes. Efficiency and effectiveness is its influence is felt primarily audio editor tool and computer-based video replace analog machines. With memory prices tend to decline and continued to increase computer speed is accompanied by the greater data storage capacity and the compression technology of audio and video files are getting better, then IT is very feasible and reliable to implement.
With so many new stations generate high levels of competition among the advertiser's target audience and the broadcast industry. The broadcasting business has unique characteristics, the two targets at the same time businesses were targeted to be achieved that is the target reaches the maximum number of listeners and target revenues earned from advertising spending by advertisers. But more and more ads placed increasingly counterproductive to efforts to capture share of listeners.
With the problematic encountered in the broadcasting industry business is a strategic planning role of information systems becomes an important and determining business success. With strategic planning, IS / IT is expected to provide direction, and concentration on trying to reach the target. Background for the study was conducted to produce a strategic plan for information systems penyiaranTelevisi industry.
2. METHODOLOGY
Step-by-step study begins with the search business strategy that fits with the characteristics of the broadcasting industry to find the right tools to get the formula for the IS / IT strategy.
PEST analysis was used to analyze the external environment that affect business activity seen from the aspect of political, economic, social and technological. PEST analysis obtained from a formula suitable for use with the condition of the broadcast media industry today is Blue Ocean Strategy (BOS). While for the formulation of the IS / IT tools used the Balanced Scorecard (BOS). Formulation method IS / IT that align with the BOS this is something new to explain the formulation of the IS / IT strategy align with the formulation of BOS business. Figure 1 shows the steps formulations IS / IT Strategy with the BOS and the BSC until you reach the IS / IT Portfolio.
3. BASIS THEORY
This study is based on theories related to the object of the study. Instead of using theories and techniques of strategic planning of information systems, in this study also taken the theories of science communication as the foundation of science broadcasting industry. The benefits of these theories in this study to facilitate understanding the characteristics of the broadcasting industry. While the BOS and the BSC as the core of the modeling of this Information Systems Strategic Planning, to accommodate whatever be the deciding factor in this industry.
Blue Ocean Strategy
Blue Ocean Strategy (BOS), written by W. Chan Kim and Renee Mauborgne is part of the process of business strategy. BOS is defined in terms of business strategies that apply the mastery of the market space that is not contested (uncontested market space) so that makes the competition becomes irrelevant [9]. Markets that are not contested the analogy as Blue Ocean (Ocean Blue) where an organization to play alone without any competitor. Conversely, where the living conditions of mutual market contested by various parties in any way as if to bleed, then this condition is analogous to a Red Ocean or Red Ocean.
BOS approach emphasizes the equality between the value and innovation. The combination of innovation and value of the existence in ways that do to provide benefits to consumers and companies. In the figure 2 below describes innovations that created value by reducing costs and increasing value for systematic konsumen.Pendekatan designed by Kim and Mauborgne Blue Ocean Strategy in making an outline of the strategy consists of six principles which are clustered in two principles namely Formulation and Principle Implementation Principles.
Principle 3.1.1 Formulation
1. Reconstruct market boundaries. You do this by doing framework "six paths" are:
a. Looking across alternative industries.
b. Looking at the strategic groups within industries.
c. Observing the chain buyers.
d. Look Across Complementary Product and Service Offering.
e. Observing the emotional appeal to buyers or functional.
f. Looking at the time.
g. Focus on the big picture rather than on numbers.
2. Reach beyond existing demand.
3. Conducting a series of strategic properly by performing the following sequence:
a. Utility, the extent to which product has a utility or a benefit for consumers.
b. Price. : Implementing the right strategic pricing to attract buyers masses so they have the ability to buy the products offered.
c. Cost. Whether the company can achieve cost targets so that company profits could mendapatakan at the level of strategic pricing.
d. Adoption. Are there any obstacles or barriers in the adoption of ideas.
3.1.2 Execution or Implementation Principles
1. Overcoming major obstacles in the organization.
2. Integrating Execution into Strategy. Organizations must integrate into the strategy execution from the beginning.
3.1.3 Tools and Framework
At the time used to formulate and execute BOS frameworks and tools. Some tools and frameworks are:
1. Strategy Canvas. Figure 3 below is an example of a strategy canvas airline industry, which describes the factors that affect the aviation industry.
2. Framework 4 steps. In an effort to create innovative, value can be translated with an efficiency of production costs and create more value for consumers.
Balanced Scorecard
The Balanced Scorecard was first published by Robert S. Kaplan and David P. Norton in 1992 in an article entitled "The Balanced Scorecard - Measures That Drive Performance." The Balanced Scorecard is introduced at the beginning of an assessment and control management system that rapidly, accurately and comprehensively can provide insight to managers about business performance. Kaplan and Norton introduced the Balanced Scorecard at the enterprise level organizations. The basic principle of the Balanced Scorecard This is the point of view of assessing a company should not only be seen from the financial aspect, but might also be supplemented with measurements from other perspectives such as customer satisfaction, internal processes and ability to innovate.
According to Kaplan and Norton, The Balanced Scorecard is defined as follows:
"... A set of measure that's gives top managers a fast but comprehensive view of the business, includes financial measures That tell the results of actions already taken, complements the financial measures with operational measures on customer satisfaction, internal process and the organization's innovation and Improvements activities - That the operational measures are the drivers of future financial performance. "[8]
The Balanced Scorecard is more than just tactical or operational measurement system. Innovative companies use the scorecard as a strategic management system, to manage the long-term strategy and generate management processes such as:
1. Clarify and translate vision and strategy.
2. Communicating and linking strategic objectives and measures.
3. Plan, set targets and align strategic initiatives.
4. Enhance strategic feedback and learning.
Portfolio Matrix
McFarlan and McKenney (1983) proposed a system to categorize the information into four groups, namely support (support), High Potential, key operational and strategic.
1. Strategic
Critical information systems for business and future success.
2. Key Operational
Information systems necessary to support today's business continuity and effectiveness must always be maintained.
3. Support
Help improve business process efficiency and effectiveness of management, but not critical to the business.
4. High Potential
Information system which was implemented from new innovations and potential achieve competitive advantage.
4. ANALYSIS
Analysis of Blue Ocean Strategy
Defining business strategy in an environment full of change must create innovations that have to consider three things: WHO, what and how [1]. Who is who, that is the target segmentation really wanted to reach, What is the value of what will be provided with such innovations, and How is how to create these innovations. Blue Ocean Strategy (BOS) is a strategic management process that is able to change the business paradigm in the face of competition. BOS is about how to master the market space that is not contested and thus the competition becomes irrelevant. Market free of competition is referred to as Blue Ocean or the deep blue while the competition is filled with Red Ocean. [9]
This study focuses on Blue Ocean Strategy for this strategy to balance between customer value and company profits are accommodated in business strategy. What I want to emphasize is what is needed by the broadcasting industry is innovation that creates value, not just innovation and out of the competition but more than that, how to create value for consumers of this industry that are not available from competitors. It is also to consider the sustainability of the broadcasting business in the long term, innovation and value that is created must consider economic factors and provitable. This means that businesses should strongly consider how innovation is done, the cost should remove it economically feasible and capable of generating long-term profitability. Here are the pictures that explain the relationship between innovation and the level of demand.
BOS Components Affecting Broadcasting Industries
By using the Blue Ocean Strategy in the broadcasting industry and view broadcast television competition conditions in Indonesia today, the following factors affecting adalahfaktor-competition television broadcasting industry in Indonesia:
1. Rating factor, is the number of figures produced in the form of assessment based on the number of audience ratings that can be achieved by a television station.
2. Broadcast coverage. Broadcast coverage area based on the scope of broadcast is broadcast as well as local and national broadcast network broadcasts.
3. Audience segmentation. Target audience is to be achieved by a television audience could be based on the grouping based on: gender (male / female), Age (Children, Youth and Adult), Socio-Economic Strata, and Programs (Information / News, Entertainment, Education).
4. Ad Rates based on total audience is usually found in what is the cost-per-audience. For example an event cost 20 million rupiah to get total audience of 200,000 viewers, the cost-per-audience generated is 1000 per-audience.
5. Level of Efficiency and Effectiveness of the ad. Party advertiser would take into account the level of efficiency and effectiveness of the ads that are installed.
6. Programs that appeal to audiences. Here the level of creativity is required so that the designer program broadcast audience feel fulfilled and satisfied with the design of the program offered and loyal audience will follow the next event.
7. Grouping of stations. Currently doing some television grouping (grouping) as a take-over (the takeover of ownership) or partnership relationship (partnership), or grouping of local tv network. The purpose of this grouping is to strengthen competitiveness, and enhance corporate efficiency.
Under the conditions of competition in the broadcasting industry in Indonesia, to implement the Blue Ocean Strategy is necessary strategic steps to move from the condition of the Red Ocean to Ocean Blue. Because it makes a strategy canvas work done kerangkah 4 steps toward the Blue Ocean Strategy, namely:
Eliminate:
- Program of Events that do not fit the target audience.
- Eliminate ad rates based on rating systems.
- Sale of advertising that is not appropriate segment (redundant).
Create:
- Index level of advertising success based on market conditions according to the target audience of local products.
- Inhouse Researcht and Development, a mixture of research programs and market research to assess the level of advertising success.
- Forecast Audience Information System that can predict the trend level audience with a variety of conditions that influence it.
- Moving to Digital Television Stations.
Reduce:
- Reduce dependency level rating by the rating companies.
- Reduce the production of an event that has been duplicated at another station.
- National Broadcasting reduced and more to create local-laden programs.
- Ads on your favorite shows with ads quota system.
Increase:
- Relationships with local TV production house and to form networks and create a virtual integration.
- Enhancing the Role of Research and Development Department to enhance continuous innovation and quality control programs.
- Cooperation with retail enterprises to get data on the impact of advertising marketing products directly.
Analysis of Strategic Planning / IT Broadcasting Industry
Mapping the BOS to the BSC
To align the IS / IT strategy with business strategy is necessary to understand first the relationship between the two in the broadcasting industry. In the context of the broadcast industry, information very important role in determining the trend and direction of broadcasting policy. Since the broadcast service industry is much influenced by his fondness and all present (trends and up to date). Therefore, the IS / IT strategy as part of supporting not only fixed it also functions as a determinant of policy.
IS / IT strategy within the broadcasting industry as well as in-drive directly by the business strategy. IS / IT strategy is expected to specify what information is needed to realize its business strategy in achieving its business objectives. At this stage of analysis and information system strategic planning information technology based on analysis of the broadcasting industry with his business strategy is based on the Balanced Scorecard method.
First time in the blue ocean strategy map balanced scorecard to the business strategy. The purpose of this mapping to obtain a clearer perspective of the financial perspective, customer, internal interlaboratory as well as business growth and learning. Because the results are mapped into four perspectives will provide a clearer picture now proceed with the mapping of the Balanced Scorecard. Mapping, this mapping will lead to the need for information systems and information technology due to business strategy has been compiled. The following table describing the mapping of the BOS to the BSC.
Financial Perspective of the Components of the BOS:
• With a competitive ad pricing in the long term increase potential advertising revenue.
• With the local advertising that is more adaptive then the potential for local advertisers will be absorbed and will provide financial income.
• With virtual integration, the market will be global and financially increase potential revenue.
• Implementation of Ad-impact index in real income will increase due to rate rises when the index card ad-impact advertising a product rises.
Customer Perspectives on the BOS Components
• By setting the segment on TV BOS customer is the target audience will create high loyalty. In terms of advertisers will benefit because the target market according to mean advertising that is placed will be effective.
• With the ad and local program audience readily accepted because of the social and cultural proximity. From the advertiser side adapted to the existence of local advertising that is placed into the advertising is effective because the message would be easier to.
• The Quota ads on each event will make the assurance of broadcast patterns resulting from the presence of the audience watching the ad will create a comfortable pattern. The advantages for advertisers, it's easier to plan their advertising budgets.
• With the research and development to every show that aired from the audience will create a sense of fulfillment diinginkan.Dari side events will further investigate the characteristics advertisers target their ads.
• The existence of virtual integration between local TV advertisers will facilitate the appropriate advertising to effectively target their market.
• The Ad-Impact Index for advertisers will be able to measure the extent to which the effectiveness of their advertising with their business growth.
• With the use of digital technology for the audience will give satisfaction to the quality of the transmitted broadcast. Likewise for the advertisers, their advertising material is delivered to audiences with maximum good and the digital ad serving results can be monitored by them.
Internal Business Process Perspective on BOS Components
• With the goal segementasi clear and consistent in terms of operational and creative processes, events and broadcast material will be more focused. The program will be flown either event, as well as the quality and quantity is reached.
• With local advertising creative process is ongoing, with activities in the department of production, especially the adaptation program and the future will continue to increase production parts can become profit centers in which their products are not only worn by the stations themselves can even spread to other TV.
• With the implementation of the operational part of the broadcast advertising quotas will remain intact with the broadcast format is always fixed. This will provide certainty about the duration of the broadcast and broadcast content more weight.
• The format of the broadcast equipment will also facilitate the implementation process tv network system in which the ad slots and a fixed duration of the event easier to organize and adapt the network stations to broadcast the format of each member of a TV network.
• broadcast programs that are not glued to the rating system will provide more flexibility to producers in producing the program. There was no effect of "moral hazard" in which broadcast programs that have a high rating in "genjot 'duration as possible to get as many sponsors that often result in imposition of creativity that will degrade the quality of programs.
• Creation of an organization close relationship between members of the TV company's network will facilitate in coordinating the program targets will be achieved and within ad management system administration. TV so that network members are far from Jakarta as the center of the transaction will gain market share.
• With a digital broadcast system will facilitate the integration of broadcast systems into a data base system broadcasts a vending system administration.
Learning and Growth perspective of the BOS components
• Blue Ocean Strategy With every employee will be required to have the ability to innovate and kreatitivitas and high productivity to produce the appropriate segmentation and target output is expected. Because of that training and education for employees is needed, especially with the advancement of digital technology every employee is required to master appropriate field.
• The work team will grow as a solid target employees focus on their creative qualities and ideals rather than on market appetite. The final result of the broadcast program product will be more weight even have value "corporate social responsibility" is an audience who watched the program is not fooled, there is an element of moral education and the story contained in the program to easily digested because there are elements of "local content".
• The process of creativity and idealism will continue to flow from each team member along with tertampungnya aspirations and their ideas in any of their works. The process of learning and development also occurs inside where the communication is established between team members will facilitate the transfer of knowledge and expertise of senior team members to a more junior on each of their activities.
5. CONCLUSION
Under these conditions the broadcasting industry with a very high level of competition required a breakthrough for this industry remain healthy and able to survive. Strategic Planning Information Systems / Information Technology with the approach of the Blue Ocean Strategy, Balanced Scorecard (BSC-BOS) answer the need for strategic planning of IS / IT in this industry. Integrated approach between business strategy Blue Ocean Strategy with the Balanced Scorecard to produce Strategic Planning / IT (PSSI), a comprehensive so suitable for use in TV broadcasting industry.
Results of the study concluded that innovation is a strategic factor in improving competitive advantage. In this study also found that the TV industry, industry players in Indonesia are stuck in a competition that "bleeding" due to measurement success factor in the size of their program's audience ratings. From the observation, rating has not shown the real truth about the success of a program both from advertisers and audience. In accordance with this Blue Ocean Strategy is one option to exit the business strategy of the condition. Formulation BOS get one of the components as a replacement solution that rating is called Ad-Impact Index is an index that indicates a qualitative measure of the influence of advertising that is placed on TV stations to target advertising such as sales increased, the level of consumer awareness rises and so forth. To measure the level of satisfaction is measured in qualitative audience is through surveys. The solution is integrated into the BSC to obtain an Information Systems Strategic Planning more focused, as well as a comprehensive and dynamic characteristics according to the TV.
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