Annisa Nurrachman – 1040002023

Competitive Dynamics Rivalry – Class

Value Chain Analysis

PT. ASTRA INTERNATIONAL
Business Unit in Information Technology
 PT ASTRA GRAPHIA INFORMATION TECHNOLOGY (AGIT) -

The main objective of organizing the value chain is to maximizing value creation and
minimizing cost. As value chain is composed by the primary activities and support activities as
described below:
 There are five categories in the primary activities:
◦ Inbound Logistic → The activities of receiving, storing, and disseminating incoming
goods or material for use
◦ Operation → the processes of transforming inputs into finished products and services
◦ Outbound Logistic → the warehousing and distribution of finished goods
◦ Marketing and Sales → the identification of customer needs and the generation of
sales
◦ Services → the support of customers after the products and services are sold to them
 There are four categories in the support activities:
◦ Firm's Infrastructure → organizational structure, control systems, company culture,
etc
◦ Human Resource Management → employee recruiting, hiring, training, development,
and compensation
◦ Technology Development → technologies to support value-creating activities
◦ Procurement → purchasing inputs such as materials, supplies, and equipment

Initially, Astragraphia found in 1971 as a Xerox Division of PT Astra International that

specialized in the marketing and after sales services of xerox photocopy machines across
Indonesia. In 1976 the Xerox Division started standing by its own as independent company,
named PT Astra Graphia. It is become one of PT Astra International business units. Head office
of Astragraphia is in Jl.Kramat Raya 43, Jakarta 10450.

Primary Activities Analysis

Inbound Logistics

Astragraphia has two business segments that complement each other in a way to improve
business process:
 Document Solution as its main business managed by Astragraphia itslef, and the main
partner is Fuji Xerox Co. Ltd., Japan. The product and services: it has transformed from
hardware-based services provider into solution-based services provider covering
Document and Information Technology solution, with these following aspects of
document cycle:
 ◦ from document input (creating, scanning, merging, editing, capturing),
◦ document management (sharing, indexing, storing, archiving, distributing, routing)
◦ up to document output (printing, faxing, scanning, copying, emailing, web viewing)

According to the types hardware and services being offered in Astragraphia, there are
four business areas involved in this Document Solution:
 Office Product Business (OPB) provides document handling solution in the offices,
range within departmental units up to corporate level. The solutions: multifunction
hardware (scan, copy, print, and fax), with the capability of black-white and color
document printing. It is also supported by the integrated document management
software.
 Production Service Business (PSB) provide document solutions that focus on
production scale, with characteristics of high-speed digital printing and with the large
and small document volume, covering black-white and color document printing
solution with standard up to large size format.
 Printer Channel Business (PCB) provide laser printer based solution (include
multifunction printer), after use material, after sales services and several personal
computers and its peripherals from personal through departmental needs.
 FX Global Services Business (FXGS) provide solution that integrating all document
solution products, as well as supplying outsourcing of products and solutions in
accordance with customer requirement.

 Information and Communication Technology (ICT) Solution, which has started in 1983.
this type of solution is provided and run by a subsidiary named PT Astra Graphia
Information Technology (AGIT), where 99% shares of stock is owned by Astragraphia.
AGIT helps to attaining the business growth in its customers through its wide range of ICT
portfolios, trusted skillful professionals and proven track records with good reputation in
managing large and complex ICT projects, such as: SAP Implementation, Systems Integration
and Outsourcing Projects.

AGIT is offering Information Technology solutions and services delivered to several

industries as its customer focus which covering 5 groups industry segmentation:
 Automotive, Manufacturing and Distributions
 Government and Public Sector
 Financial Services and Insurance
 Oil, Gas & Mining
 Telecommunications

Operation

Astragraphia is a company that running in a technology industry to produce office products

equipment and IT services. The business operation is to develop parts of components material to be
processed into usable hardware.
In operating the solution, Astragraphia do these following:
  Office Product Business (OPB), to satisfy customer’s expectation and keep maintaining
the competitive advantage, OPB build 5 Intelligent Services:
1. Document Flow services, to help distribute documents electronically in a business
process flow to run work process well, including supporting scan-to-home application
which automatically machine will send document to user’s PC.
2. Management services, that enable administrator to manage multifunction hardware that
connect into network and authorized user, so it can optimizing printing, faxing, and
copying cost as well as recording utilization data and avoid the use of multifunction
machine by those unauthorized user.
3. Security services, to keep document confidentiality, through password system on the
document or using watermark on document that will emerge when duplicated. Launched
product in the market has supported more secure Internet Protocol (IP) version 6
4. Customization services, that simplifying several complex work steps into one work
instruction. With color screen, the features easier to use and accelerate work process that
is done by users
5. Mobile services, managing documents and using multifunction hardware in several
locations connected in the network. Access to multifunction hardware can be done
through browser and mobile device most commonly used

OPB contributed net revenues for Document Solution business (AGDS) equals 49.3% in
2010.

 Production Service Business (PSB), Astragraphia has strong distribution network and
wide range of service points with good services, always prioritizing customer
satisfaction. In 2010, the Revenue increased of 27%, installed units in average of 28%.
PSB has printing workflow solution divided into 3 parts: business management, process
management, and output management. Performance In 2010 PSB launched the
DocuColor 8002 Digital Press which is one of “Entry Production Color” portfolio.

Outbond Logistics

The products that Astragraphia provides are:

 office multifunction:
◦ color multifunction:
DocuCentre-IV C2260 --> it has has affordable price and fulfill the need of modern
scanning, fax in the office workflow more than expected. High quality color and black-
white fast and and low cost printing and copying, strong productivity, reliable for daily
use.
Features:
Searchable PDF2 to make archiving easier, organizing, searching and sharing documents.
New design in color user interface that has ease of use and access on newest features to
accelerate finishing work. Monitoring and tracking the machine utilization with Xerox
Standard Accounting. The reporting of machine utilization can be seen in a CSV file
format, to control cost of copying, printing, scanning and fax, limiting the use of color
printing for particular groups use through password or PIN activation.
 ◦ black-white multifunction

 production system:
◦ production color
◦ production monochrome
◦ continuous feed
 wide format system: DocuWide
DocuWide 2055 is a large-size digital multifunction hardware with a maximum input
paper of A0 and maximum output paper of A1, it enables the transfer big format picture
and technical documents.
By using add-on software DocuWorks give solution to manage documents electronically that can
eliminate the need of storing space with smart features that increase productivity, document
safety and security and save workspace.
 office printer
 software: office software, production software
 supplies

The IT solutions that AGIT provides are:

 Infrastructure Services: System Solutions, Network Solutions, Unified Communications,
Information Systems Security and Audit Solutions, Pointrek: Asset monitoring and
Tracking system
 Professional Services: SAP Solutions, Oracle Solutions, Telco Solutions, Utilities
Customer Care and Billing
 Outsourcing Services: IT Services Management, Seat Management, Maintenance
Services, Business Continuity Planning (BCP)
 Project Management
 Cloud Computing: Microsoft Exchange Hosting, Microsoft Office Communication
Hosting, SAP Managed, Remote Infrastructure Support, Data Center Collocation

Marketing & Sales

In the improvement of marketing approach for the customers to give work efficiency and
effectiveness, Astragraphia using Valued Services and Solutions (VSS) methods deliver
enhanced value to its customers, besides selling hardwares. The way VSS methods works is by:
 doing an assessment process before establishing the document management design for
certain company
 get the approval by the customer, to get the solution be implemented and installed in
 make an evaluation to find out if the system is suitable, fitted and productivity is achieved
as expected
 finally conducting the improvement if required

The market condition in terms of document solution demand shows the increasing need
of integrated offices document, variation of new products, the facility and the easy of use.
Therefore Astragraphia launched new products variants, enhance the sales team competence
through all Astragraphia's network, develop solution packages that suitable with the characters
of customer's business. These efforts has result in the significantly increasing of installed units of
OPB for color multifunction solutions as of 77%, PSB 28%, and PCB 60%. This increasing has
directly impact on being a majority in the market share and the increasing net income on all
business portfolios. This increasing has lead to other success as a new record of Astragraphia
Document Solution, that is the achievement of net income more than 1 Trillion Rupiah, it is the
firs time experience, the reach of 1.000th office color unit installation unit, Office Printer 10.000
units installation, and the first installation of Color 1000 Press machine.

Astragraphia always continuously provide service quality to its customers by expansion

throughout Indonesia and neighbor regions like Timor Leste. Up to the end of 2010, Astragraphia
has 22 branch offices in the nation-wide. So in the sales distribution network, Astragraphia also
conducts sales through dealers and resellers that are strategically spread in the nation-wide. To
strengthen Astragraphia's position in the promosing IT market in Indonesia, penetration is
conducted through PT SCS Astragraphia and 51% shares owned by Singapore Computer System
Limited (SCS).

Services

The service is conducted by Astragraphia is available in the dealers and resellers that are
also spread in all over Indonesia area.
Document Solution Dealer: PT. Divaintan Putripratama, PT. Fortuna Bestindo, PT. Inti
Surya Persada, CV. Putri Indah, CV. Juanda, PT. Multimas Mitra Bersama, PT. Fortuna
Graphindo. Astragraphia has 77 service points in all over Indonesia.
In distributing products and services, Astragraphia uses 3 distribution channels:
 Direct Sales Channel through sales personnel spread in all branches
 Indirect Channel through cooperate with Partner that has outlets in the ICT center places
in every province, a company that has modern outlets, hyper store and electronic store in
the big cities, also through system integrator that give solution in terms of IT projects.
 Direct to Customer Channel, to maximizing market penetration through Telesales &
Motorman development

Sales service through Direct Sales Channel in the market of usaha kecil menengah, there
is LayanGerak Operation (LGO). LayanGerak Operation is a service with the sales personel use
a Van car and visiting customers directly to sell and delivery ranged from used material, paper
(DocuPaper) and spare parts up to Office Printing System machine products sales and services.

Supporting Activities Analysis

Firm's Infrastructure

Corporate culture is directed to strengthen outstanding service culture, cooperation and trust that
has been developed all this time. Those culture values are as follows:
 Outstanding service  strong commitment and motivation to give best service for
customers more than expected
  Cooperation  active participation in maintaining solid teamwork in order to reach
specified performance target
 Trust  strong commitment to keep maintain trust that successfully achieved, in
interaction with customers and among the other peers of employees

Information Technology

Because technology is employed to some degree in every value creating activity, changes
in technology can impact competitive advantage by incrementally changing the activities or by
making possible new configurations.
Astragraphia has the initiatives to optimizing the values indicated by the improvement
and reorganizing of internal system to increase the rate of providing service to customers.
Astragraphia Document Solution is implementing 2 improvement projects: Cost Control System
and Contract Management System. Astragraphia IT (ICT) Solution is finishing 2 improvement
projects: Sales Force System and PCA System.

These various following technologies are used in both primary value activities and support
activities:
 Inbound Logistics Technologies
 Transportation
 Material handling
 Material storage
 Communications
 Testing
 Information systems
 Operations Technologies
 Process
 Materials
 Machine tools
 Material handling
 Packaging
 Maintenance
 Testing
 Building design & operation
 Information systems
 Outbound Logistics Technologies
 Transportation
 Material handling
 Packaging
 Communications
 Information systems
 Marketing & Sales Technologies
 Media
  Audio/video
 Communications
 Information systems
 Service Technologies
 Testing
 Communications
 Information systems

Many of these technologies used in every activity are similarly used in support activities.
These technologies related to training, computer-aided design, and software development. To the
extent that these technologies affect cost drivers or uniqueness, they can lead to a competitive
advantage.

Human Resources

As the market condition in 2011 that is good and conducive, Astragraphia faces the
business challenge and opportunity by enhancing its Human Resource at the operational area:
new recruitment, rotation and mutation.
By giving same opportunity to all employees to improve the competence in line with business
need to give best service to customers. The methods and facilities to develop employees'
competence are:
• Formal training (in-Class) conducted internally or externally (by vendor)
• E-learning as long-distance learning facility to increase knowledge and skill in sales,
information technology, and management
• Library that provide the newest book collections
• Sharing Knowledge, as a knowledge dissemination media from, to and by the employees

There several programs for employee development:

1. Certification Program → to achieve high quality standard and to meet requirements for
tender and business development:
 IT Certification to support Astragraphia's projects: CCNA, MCSE, MCP
 Product Specialist certification: Kofax, Documentum
2. Training of New Employees → to equip new employees for Sales, System Analyst,
Customer Engineer, and other staff before their postings:
- Introduction to company organization
- Products and strategies
- Product knowledge relevant to their tasks
- Basic Marketing
3. Managerial Program → To build managerial competences for supervisor level:
Management Development Program (MDP)
4. Train the Trainer Program → To build internal trainer competences through Principal’s
training center: based on Training ISO 9001:2008 Requirements
5. Sustainable competencies improvement program → To improve the capabilities of
operational staff:
- Business Consultant Workshop
 - System Consultant Workshop
- Office Solution Basic, Office Solution
- Professional and Office Solution Master Trainings

This training in Astragraphia and AGIT has spent Rp 3.35 billion in 2010 that covering
for training event, accommodation and transportation.

Procurement

In the procurement field, there are optimization steps by arranging the support of IT-
based material. In the project works to implement the solutions and for the company’s internal
needs, Astragraphia considers local suppliers for partnerships and suppliers of goods and
services. In equality towards suppliers, Astragraphia prioritizes local companies to assist with the
implementation of work projects with customers and to meet internal requirements. Oracle-
Indonesia and SAP-Indonesia are the two of Astragraphia’s partner in supplying software license
for its IT projects implementation.
In equality towards customers, Astragraphia sets competitive sale prices, unless the costs
of sending goods or installation services have to be included. Telkom and Jamsostek are the two
of the Astragraphia’s customers that still keep maintained a solid relationship due to the IT
projects works implemented there.
All procedures related to the selection of suppliers and dealing with customers in
Astragraphia have obtained 9001 certification.

References:
 http://www.netmba.com/strategy/value-chain/
 http://www.astragraphia.co.id/EN/investor/Astragraphia_AR2010.pdf