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TASK SUMMARY

CROSS-
FUNCTIONAL APP

Big Task 02

Group 5

Faculty Study program Topics MK code Arranged by

10
Technique Industrial W162100030 Group 5
Engineering Ristono MT Sitinjak
(41620110078)

Dosage : Indra Almahdy Ir MSc.


PIG
PRELIMINARY

1.1 Background
The term e-business was first introducedby Lou Gerstner, CEO of IBM. This term, can be
translated as business activities that are carried out automatically and semi-automatically using
computer information systems. E-business allows a company to deal with their internal and
external data processing systems more efficiently and flexibly.
Iptaria (2006) states that the e-business phenomenon has become a trend that colors
business activities in developed and developing countries. This is because its existence can make
business processes and systems better than the previous (conventional) methods.
Tarigan (2006) stated that since mid-2002, Indonesian businessmen believe that the use
of e-business can improve company performance, especially those related to efforts to streamline
operational performance. Research conducted by Warta Ekonomi shows that 54.2% of
companies that are respondents have implemented various e-business applications, including:
Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and Customer
Relationship Management (CRM). As many as 78.8% of the companies that were sampled in the
study stated that the use of e-business solutions could increase company productivity.
Telkomsel is a company engaged in telecommunications services in Indonesia. In 2002,
the company was awarded the E-Company Award for the category of telecommunication
company in the best use of e-business applications. This encourages the author to conduct an
analysis of the application of e-business applications in the company.

1.2 Formulation of the problem


The problems that will be discussed in this paper are regarding the implementation of e-
business in Indonesia, especially at PT Telkomsel.
1.3 Writing purpose
The purpose of writing this paper is to identify the implementation of e-business in
Indonesia, especially PT Telkomsel.
CHAPTER II THEORETICAL BASIS

2.1 Definition E-Business


E-businessdifferent from e-commerce. E-business has a broader scope, not only for
transactions using the internet network, but a combination with various technologies and forming
electronic communication that allows carrying out various types of business activities. O' Brian
& Marakas (2008) states that e-business is the use of the internet and other networks and
information technology that supports e-commerce, enterprise communication & collaboration,
and web-based business processes that connect companies with customers and business partners.
Wikipedia states that e-business is an activity that is directly or indirectly related to the process
of exchanging goods or services by utilizing the internet as a medium of communication and
transactions.application Internet technology that penetrates the internal business world, covering
systems, customer education, product development, and business development

2.2 Cross Functional Enterprise Application


The company considers a cross functional enterprise system as a strategy to use
information technology to share information resources and improve the efficiency and
effectiveness of business processes and develop a strategy of connectivity between customers,
suppliers, and business partners. O' Brian & Marakas (2008) provides an example of a cross
functional enterprise application as shown in the following figure.

Figure 2.1 Cross Functional Enterprise Application

2.3 Enterprise Application Architecture


The architectural form of a cross functional enterprise application that describes the basic
components, processes, and interfaces of e-business applications and their interrelationships with
each other. Mohan Sawhney & Jeff Zabin in O'Brien & Marakas (2008) describe enterprise
application architecture.

Figure 2.2 Enterprise Application Architecture

The picture shows that the company does not use traditional business functions or only supports
the company's internal business processes, but focuses on improving business processes with
customers, suppliers, partners, and stakeholders. ERP (Enterprise Resource Planning) focuses on
the company's internal production. CRM(Customer Relationship Management) focuses on
obtaining and retaining potential customers, through marketing, sales, and service processes.
PRM (Partner Relationship Management) to obtain and retain business partners who are able to
increase sales and distribution of the company's products and services. SCM (Supply Chain
Management) focuses on developing effective and efficient product and service processes
required by businesses.
CHAPTER III
COMPANY PROFILE

PT Telkomsel is the leading cellular telecommunications service provider in Indonesia by


market share. The company was founded on May 26, 1995 by providing GSM dual band
900/1800 MHz cellular services. The types of starter products offered are SimPATI and Kartu
AS prepaid cards, as well as postpaid HALO card services.
During 15 years of operation, Telkomsel has continued to maintain its market share and
become the leader in mobile lifestyle. At the end of June 2010, the company had 88.32 million
subscribers or represented 47% of the cellular services market. This is certainly inseparable from
the use of e-business to support operational activities.
In 2002, Telkomsel received the E-Company Award for the category of
telecommunication company in the best use of e-business applications. The award is based on
the results of the WARTA EKONOMI survey involving 356 companies and 1,556 respondents
spread throughout Jakarta. There are 7 criteria that form the basis of the assessment, namely:
customer value, process efficiency, innovation, human resources, management commitment,
revenue per total asset, and internet usage. Customer value is related to the level of customer
satisfaction attached to the product or service. Process efficiency concerns the company's ability
to optimize the ratio of inputs to outputs. Innovation is related to the type of innovation related to
information technology. Human resources relate to the percentage of employees who have
computer skills from the total number of employees and the amount of training. Management
commitment is related to management's attention in its investment in e-business implementation.
Revenue per total asset is calculated for the last 3 years. Internet use is related to the comparison
of the use of personal addresses to total employees, the availability of company websites, and
business transactions via the internet.
CHAPTER IVANALYSIS

4.1 Cross Functional Enterprise System


E-Businessprovide the foundation for the development of a cross functional enterprise
system, as a strategy to use information technology to share information sources and improve the
efficiency and effectiveness of business processes and develop a strategy of connectivity
between customers, suppliers, and business partners. O' Brian & Marakas (2008) provides an
example of a cross functional enterprise application which can be seen in the following figure.

Figure 4.1 Cross Functional Enterprise Application


Through this system, each part of the company can share information so as to increase the
effectiveness and efficiency of business processes. The marketing and manufacturing department
can obtain information from the R&D engineering section. In contrast, R & D engineering can
obtain information from the marketing and manufacturing departments. This is in accordance
with Amor's statement in Rauseo (2001) which states that e-business is the integration of
business processes, enterprise applications, and organizational structures to create high
performance of business models and business value creation processes.
Cross-functional enterprise application able to develop relationships with customers,
suppliers, and business partners This makes it the foundation for the development of Enterprise
Resource Planning (ERP), Supply Chain Management (SCM), Customer Relationship
Management (CRM), Partner Relationship Management (PRM), and Knowledge Management .
This is shown by the following figure:
Figure 4.2 Enterprise Application Architecture

4.1.1 Enterprise Resource Planning (ERP)


The challenges of intense competition in the business environment encourage various
circles of the business world to apply Information Technology (IT). One of the most widely
applied applications is ERP which is considered to encourage business activities, especially
operations to be efficient, fast, and able to make predictions for the future. Strategic decision
making can also be done because of the availability of new and updated data and information
support. Based on research conducted by Warta Ekonomi in Tarigan (2006) it was stated that
78.8% of the companies in Indonesia who were respondents did not hesitate to mention that the
use of ERP applications could increase company productivity.
Tarigan (2006) states that ERP has developed as an integration tool, having the ability to
integrate all company applications into a data storage center so that it is easy to be accessed by
all parties who need it. This allows the integration of all parts or departments and functions
within the company through a computerized information system.
O'Brian & Marakas (2008) grouped ERP activities into five main components, namely:
Logistics function, manufacturing/production, human resources, distribution, and financial
accounting. This is shown by the following picture
Figure 4.3 ERP Activities
Each ERP activity is made in the form of a module. Companies in Indonesia generally do not
buy all ERP modules, but only certain modules, for example, there are companies that want to
implement only the human resource and financial management module.
Currently, there are 3 oracle-based ERP modules used by Telkomsel, namely: Sales,
distribution, order management; Accounting & finance; and human resources. The accounting &
finance module is integrated with HRIS, so that through this application, employees can check
the amount of payroll paid, overtime claims, reimbursement, etc. The sales, distribution & order
management module is integrated with the accounting & finance module, so that every seller
transaction will be entered into the finance system and recorded as revenue from sales.
Gruver, et al (1998) in O'Brian & Marakas (2008) state several functions of ERP,
namely:

1. Quality and efficiency


ERP provides a framework for integrating and improving the company's internal
business processes that impact on the quality and efficiency of customer service,
production and distribution.
The ERP implemented by Telkomsel has an impact on improving quality and
efficiency, because information can be easily obtained by each part of the company,
so that it can accelerate the company's internal business processes, for example:
Calculation of overtime costs, financial reporting etc. In addition, the accuracy of the
data causes the quality of calculations and decision making to be better.

2. Reduce costs
Many companies report a significant reduction in transaction, software, and IT staff
costs after using ERP compared to when using an unintegrated legacy system.
Telkomsel has departments spread across several regions. The existence of ERP
allows sending reports in Telkomsel to be faster without being influenced by location,
thereby reducing transportation costs and time.

3. Decision Support
ERP provides cross functional information quickly to managers, so they can improve
their decision-making abilities for the better.
ERP provides data faster because of the integration in several parts of the company.
This causes the decision-making process to be faster, for example: Decisions
regarding working capital based on data on the amount of employee salary payments

4. Enterprise agility
ERP implementation causes the organizational structure to become more flexible, as
well as managerial obligations and information resources. This causes the
organization to be more adaptive.
Telkomsel's ERP system integrates data from several company departments, making
it easier to share information, be it salary payments, sales revenue, etc.

4.1.2 Supply Chain Management (SCM)


Supply Chainhelp companies to get the right product to the right place, at the right time
with the right quantity and at an affordable price. O' Brian & Marakas (2008) stated that the
purpose of SCM is to streamline the process by forecasting demand, controlling inventory,
improving business relationships with customers, suppliers, distributors, and other parties and
receiving feedback on all statuses from supply chain links. Indraseno (2007) states that the basic
concept of SCM is the management of the flow of raw materials, information, payments, and
services from suppliers to final consumers through manufacturing and warehouses.
From what has been mentioned above, it can be concluded that Supply Chain
Management (SCM) is a cross functional enterprise system that uses information systems to
encourage and maintain relationships with several important business processes, and parties such
as suppliers, customers and business partners. The purpose of SCM is to create fast, efficient,
low-cost business relationships from the company's product concept to the market. O' Brian &
Marakas (2008) states that many companies use internet technology to create an e-business SCM
system that can shorten the supply chain process. traditional. The illustration of the use of SCM
can be seen in the following figure:

Figure 4.4 Supply Chain Management


The following figure illustrates the supply chain life cycle and functional SCM process using
internet technology and SCM software. In addition, it shows how many companies are currently
reengineering supply chain processes using internet technology and supply chain management
software so as to reduce costs, increase efficiency, and improve supply chain cycle times.
Adiguna (2009) stated that the use of SCM for several companies in developing
countries, including Indonesia, is currently still very limited. In general, the relationship between
each sub-system involved is still insulated, making it difficult to compete in the free market.
Telkomsel uses the SCM system in manufacturing to distribution of starter packs and
physical credit. The supplier will provide the physical card, which then the company will provide
the phone number, serial number and credit for the starter pack, while for physical credit, the
company will only provide the serial number of the card and credit. After the product is finished
being produced, it is then distributed through the post office to each POD (Point Of Distribution)
point, including for the Greater Jakarta area, namely: Jakarta, Bekasi, Rangkas Bitung, Bogor,
Karawang, Sukabumi, and Serang. Furthermore, the official distributor as Telkomsel's business
partner will take the product and then sell it directly to distributors and end users.
According to O'Brian & Marakas (2008) states that the SCM function can be divided
into:
1. Planning
This function can be divided into 2, namely:
a. Supply chain design
The supply chain system is able to improve the relationship between suppliers,
factories and distributors. This is because they have the convenience of
connecting with each other, be it in the form of product requests, distribution, etc
b. Collaborative demand & supply planning
The system allows companies to estimate customer needs so that planning and
inventory management can be carried out. The company is able to see the amount
of: distribution, sales, and stock of each POD area. This allows the company to
estimate and plan how many starters and physical vouchers will be produced, and
which areas require additional products to be distributed.
2. Execution
a. Materials management
The SCM system allows companies to do several things, including:
 Sharing inventory information and procurement status information
The head office will be able to access and control the production process
because it is able to update production, inventory, distribution, and stock
information for each POD.
 Ensure that the materials needed for production are available at the right
place and time.
The production planning process concerns when the product will be
produced, so that the materials needed, in this case the cards, and the
packaging are available before the production process is carried out.
 Reducing raw material expenditure, procurement costs, safety stocks, as
well as raw material and finished goods inventory
The company is able to reduce costs, because it is able to carry out
production and inventory planning, so that it is able to avoid shortages or
excess raw materials.

b. Collaborative manufacturing
The company is able to carry out planning and scheduling based on resources, raw
materials, and other things that affect it.
c. Collaborative fulfillment
 Commit to delivery dates in real time
The company is able to monitor the products that have been distributed to
AD partners (Authorized Daeler) in each POD. Data collection on the
number of products taken and the time can be obtained in real time.
 Provide orders from various channels in a timely manner through the
implementation of order management.
The company is able to ensure the availability of goods needed by each
AD partner in a timely manner by scheduling production and ensuring the
resource requirements for production, be it labor, cards, or packaging.
 Support the entire logistics process, including pick-up, packaging and
shipping.
Telkomsel sends all its products through PT POS Indonesia every
Wednesday, on that day the entire system has been prepared and all
interested parties will participate in monitoring, be it AD partners, branch
offices, and head office.
d. Supply chain management
 Monitor every step in the supply chain process, from price to when the
customer receives the product, and provide alerts when problems occur.
The system allows for monitoring every step in the supply chain, starting
from the procurement of raw materials, production, to the distribution
process.
e. Supply chain performance management
 Provides reports from the supply chain, such as filling rate, order cycle
times, and capacity utilization.
The company is able to get reports on distribution orders, order cycle
times, and others which are usually reported at the end of each month,

4.1.3 Customer Relationship Management (CRM)


Nowadays it is very easy for customers to make comparisons with just a click of the
mouse to switch to another company's product. This causes connectedness with customers to be a
very valuable company asset. Those relationships are worth more than a company's products,
stores, factories, web addresses, even employees. Every company strategy must include aspects
of finding and retaining valuable customers. O'Brian & Marakas (2008) stated that many
companies are implementing CRM to increase the chances of success in a competitive business
environment.
CRM uses information technology to create a cross functional enterprise system that
integrates customer service processes in sales, marketing, and customer service that interacts
with the company's customers.
PT Telkomsel utilizes CRM to be able to get and retain potential customers, using Oracle.
The important components in the CRM system are as follows:

Figure 4.5 Customer Relationship Management


a. Contact & Account Management
O'Brian & Marakas (2008) stated that CRM software helps companies in sales,
marketing, and service departments to have and track data from customers. Information
can be a telephone number, fax, email, personal contact, etc. CRM systems store
customer data and allow it to be accessed via the internet, intranet, or other network for
sales, marketing, and other applications.

PT Telkomsel maintains a customer database consisting of:


Customer contact data: mobile phone number, home phone number and home/office
address.
Customer partner/relative data: mobile phone number, home phone number and
home/office address.
These data are needed if the company wants to contact customers to carry out several
programs, including:
1. New product offering program
Customers will receive offers regarding new products or existing products via
telephone or SMS.
2. Loyalty program
The company will send birthday SMS and invitations to customers with certain
criteria as part of the retention program.
3. Telephone billing.
The company will send invoices for prepaid products (kartuHALO) every month via
email or letter.
b. Sales
CRM allows companies to get real time access to customer data, and allows them to
check before making a sale.

CRM software makes it easy for Telkomsel to provide attractive offers to customers with
certain criteria, for example based on ARPU (Average Revenue Per User) or average
telephone usage in 1 month. In general, the telemarketing department will contact
customers with ARPU criteria > 500,000 to offer HALO card numbers, flash,
blackberries, and iPhone installments.
c. Marketing & Fulfillment
The CRM system helps the marketing department to carry out direct marketing activities,
as well as store response data from customers for offers made.

PT Telkomsel stores data from telemarketing results in the form of customer responses
which will make it easier for the company to connect with the customer concerned in the
future, For example: Customers do not need internet applications because they already
have them from other operators.

d. Customer Service & Support


CRM systems help customer service managers quickly create, designate, and manage
service requests. Helpdesk software helps call center departments to assist customers who
have problems with a product or service by providing relevant service data and
suggestions for troubleshooting.

If the call center section is having difficulty handling customer complaints or serving
customer requests for product information, it can be assisted through this system, which
provides data on product information, HP trauble shooting, blackberry problems, etc.
other than that

e. Retentions & Loyalty Programs


O' Brian & Marakas (2008) stated that it is very important for a company to improve its
retention program and maintain customer loyalty, because:
1. Selling to new customers costs 6 times more than selling to existing customers
2. Dissatisfied customers will tell 8-10 people about their experiences.
3. The company was able to increase 85% by increasing its retention program by 5%.
4. The opportunity to be able to sell products to new customers is 15%, while the
existing customers are 5%.
5. 70% of customers who complain will continue to use the company's services/services
if the company quickly resolves the problem.
A CRM system will help to identify, reward, and resell to loyal customers. Telkomsel has a
customer database that is part of the simPATI Zone (for simPATI card users), Gen Asik (for
KartuAS users), and HALO cards. In general, loyalty programs are provided based on ARPU,
hobbies, and age of the customer, for example for simPATI customers who have a hobby of
watching movies, there is a free watching loyalty program (Telkomsel Friday Movie Mania) by
exchanging their Telkomsel Points.

4.1.4 Knowledge Management


The development of science and technology in this era of globalization occurs very
quickly. The company's ability in both cases is one of the most important competitive factors.
When a company tries to develop its economies of scale, it takes a very broad level of knowledge
on every existing personnel to be able to compete and survive.
The increasingly tight competition conditions have led to the need for a paradigm shift
from resource base competitiveness to relying on knowledge base competitiveness. These two
concepts are very contradictory, the first concept rests on the superiority of natural resources and
geographical location. The second concept is based on science and technology and the
development of the company's human resources. Romhardt (2003) states that knowledge is an
important competitive factor in winning the competition.
In an effort to facilitate the development of the company's human resources, it is
necessary to have the ability to manage and develop the knowledge possessed. Knowledge
management can be a reliable support for companies to increase competitiveness.
Wikipedia states that knowledge management is a series of activities used by
organization or company to identify, create, describe, and distribute knowledgeto be reused,
known, and studied within the organization. Yuliazmi (2005) states that knowledge management
is an effort to increase useful knowledge in organizations, including getting used to a culture of
communicating with personnel, providing opportunities for learning, and promoting knowledge
sharing. If Knowledge Management uses e-business or computer-based applications, it is called a
Knowledge Management System (KMS).
The tight competition in the telecommunication business has caused Telkomsel to
continue to optimize knowledge management in order to be able to win the business competition.
This ultimately encourages companies to implement KMS.
Putri & Pangaribuan (2009) stated several things needed to foster a culture of sharing
knowledge through KMS, namely:
1. Creating know-how
Every employee is given the opportunity and is free to determine new ways to
complete tasks, innovate, and synergize external knowledge within the institution. In
this effort, every employee is given access to the internet so that it allows them to
open their horizons because they are connected to websites that provide them with
information related to job descriptions. In addition, Telkomsel provides opportunities
for employees to convey their innovations by holding an annual event, Telkomsel
Business Idea. Each participant can send business ideas by e-mail to the committee.

2. Capture and identify knowledge that is considered valuable and represented logically.
Every quarter, Telkomsel evaluates the job performance of each employee according
to their job description. The results of this assessment will be inputted by superiors
(minimum supervisor level) through HRIS (Human Resources Management). Based
on this, the human resource management will plan the types of training needed by
employees to improve their abilities.

3. Placement of new knowledge in a format that is easily accessible to all employees and
officials.
Telkomsel provides e-learning applications that make it easier for employees spread
throughout Indonesia to conduct training without any time and place restrictions. In
addition, an internal website is also provided, such as Warta Halo which allows
employees to find out in more detail about the services or products issued by the
company.

4. Knowledge management to ensure that information is up-to-date so that it can be


evaluated for relevance and activation.
Telkomsel has an IT (Information Technology) section that works closely with HR
(Human Resources) to update the information materials provided through the internal
website and e-learning.

5. The knowledge format provided on the portal is a user friendly format so that all
employees can access and develop it at any time.
To ensure that the format provided through the internal portal is user friendly, the
company conducts a survey through its internal website to all employees. This
activity is usually carried out once a year.

4.1.5 Partner Relationship Management(PRM)


Anonymous (2008) states that in an effort to increase company profits, it is necessary to
integrate the company's internal business processes with a network of business partners. This is
important, so that partners obtain tools and information that support the sale of products or
services. Today, many companies consider PRM as a system capable of meeting these needs.
IT Summary states that Partner Relationship Management (PRM), which is a term in
business that is used to describe strategies and methodologies to improve relationships and
communication between a company and its business partners/company partners. Dmitri Ilkaev
(2000) states that PRM is a business strategy to improve communication between a company and
its partners.
Telkomsel has several strategic partners who are closely related in the implementation of
PRM, including:
1. Hello booth
One of Telkomsel's strategic partners, is Gerai Halo, a party that sells Telkomsel products
and provides services to customers, as is done by GraPARI. In its operational activities,
Halo outlets gain access via extranet to company applications, but with limited authority,
allowing outlets to easily connect with Telkomsel.

2. OMR (Outlet Maintenance Representative)


OMR is a party that makes visits to outlets that sell Telecommunication products in the
form of starter packs and physical cards. In carrying out its work reporting, OMR uses a
mobile phone that has been installed with special software. The results of this report are
received by Telkomsel in real time

CHAPTER V CONCLUSION & SUGGESTIONS

5.1 Conclusion
E-Business provide the foundation for the development of a cross functional enterprise
system, as a strategy to use information technology to share information sources and improve the
efficiency and effectiveness of business processes and develop a strategy of connectivity
between customers, suppliers, and business partners.
Cross-functional enterprise application able to develop relationships with customers,
suppliers, and business partners This makes it the foundation for the development of Enterprise
Resource Planning (ERP), Supply Chain Management (SCM), Customer Relationship
Management (CRM), Knowledge Management, and Partner Relationship Management (PRM) .
Tight competition in the telecommunications business has caused Telkomsel to
implement a cross functional enterprise system which is the foundation of the implementation of
ERP, SCM, CRM, PRM, and Knowledge Management, each of which has connections with
customers, suppliers, and business partners. It is hoped that this implementation will be able to
increase the company's competitiveness.

5.2 Suggestion
The suggestions from writing this paper are:
1. Telkomsel should add a production planning module in its ERP.
2. The large number of prepaid customers makes it difficult for companies to carry out
retention programs, because the databases filled in by customers are often invalid.
This causes the company to need to build an aggressive program to build its customer
database.

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