BCG Operational Transformation event discusses how companies can focus on operational improvements to position themselves for the next wave of growth
JAKARTA— Today, The Boston Consulting Group (BCG) held a seminar with the theme "Operational Transformation: Succeeding in Turbulent Times" to discuss the issues and strategies that Indonesian businesses can take to succeed amidst economic uncertainty. The event, which was held at The Ritz-Carlton Hotel, Jakarta, gathered top Indonesian business leaders.
Data from the Indonesian Stock Exchange found that, in the first semester of 2015, a host of benchmark publicly listed companies posted double-digit drop in profits, something unseen since 2008, as weak domestic consumption and low commodity prices linger. “The current environment is posing tremendous challenges to CEOs, but as with any challenging period, it is also an even greater opportunity for CEOs to strengthen their organizational and operational efficiency, and emerge from this period stronger” said Eddy Tamboto, Partner and Managing Director of BCG’s Jakarta office.
Today's Operational Transformation event featured a panel discussion by three leading Indonesian CEOs – Budi Sadikin, President Director, PT Bank Mandiri (Persero) Tbk, Emirsyah Satar, Chairman, MatahariMall.com, and Prijono Sugiarto, CEO, PT Astra International Tbk – Hans-Paul Bürkner, BCG’s Global Chairman also sat on the panel. The panelists explained that Indonesian CEOs generally believe this is a challenging and uncertain environment. Many are already responding by improving operational efficiency and by being more selective in their investments. Yet the CEOs also stated that Indonesia remains a high-growth market and companies are almost universally still focused on how to position themselves for the next wave of growth.
BCG shared its experience in working with global and Indonesian clients to improve operational efficiency. "We at BCG believe investing in operational efficiency not only helps companies weather turbulent times like today, but is crucial to achieving a competitive edge and being well positioned to emerge from the downturn ready to capitalize on growth opportunities," stated Edwin Utama, Partner and Managing Director, BCG Jakarta. The discussion at today's event centered on a number of actions Indonesian companies can take in today's environment to improve their operations including: simplifying their organization, reducing procurement spend, and implementing LEAN methodologies. BCG shared benchmarks of companies reducing their cost base by up-to 10% through realizing 'quick-wins' and more than 25% over the course two years by radically rethinking their business model. "We find the biggest challenge for companies is recognizing the need for change and maintaining the momentum through the course of a multi-year journey." said Yulius Yulius, Partner and Managing Director of BCG's Jakarta Office. BCG also shared how they've helped global and local companies overcome these challenges using their proven transformation approach.
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