Revitalizing IT-Based Enterprises: Uncovering Innovative Strategies for Performance Enhancement via Partial Adjustment Valuation

(A Case Study of Indonesian Banking Industry)

DOI

10.2991/978-94-6463-340-5_8How to use a DOI?

Keywords

Business positioning; IT-based enterprises; partial adjustment valuation; performance enhancement; systems engineering; valuation methodologies; information technology

Abstract

In general, many banks have not fully optimized their IT-based investment efforts, particularly when anticipating gradual changes or adjustments in specific financial variables over time. This approach is primarily employed to assess the valuation of assets, securities, or companies. The primary data source for this study comprised Annual Reports from three prominent Indonesian banking institutions: BNI, Mandiri, and BRI, spanning the period from 2006 to 2021. The percentage values obtained for these banks are as follows: BNI at 30%, Mandiri at 25%, and BRI at 21%. Combining the percentages for these three banks, the overall percentages are 25% for BNI, 21% for BRI, and 30% for Mandiri. Conversely, the average percentages for these institutions are as follows: BNI at 75%, BRI at 63%, and Mandiri at 90%. Based on these findings, companies can enhance their performance by evaluating their IT investments and aligning their expectations with the future value of IT. Essentially, the improvement in performance for banking institutions can continue to rise without the need for additional capital expenditures, although income may increase without necessarily reaching the expected levels. Consequently, businesses must optimize the value of IT in accordance with their strategic plans, considering factors such as equity liquidity, minimum wages, labor costs, capital expenditure, and income.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Kessya Azzahra Rismadewi
AU  - Lukman Abdurahman
AU  - Muharman Lubis
AU  - Muhammad Fakhrul Safitra
PY  - 2023
DA  - 2023/12/30
TI  - Revitalizing IT-Based Enterprises: Uncovering Innovative Strategies for Performance Enhancement via Partial Adjustment Valuation
BT  - Proceedings of the International Conference on Enterprise and Industrial Systems (ICOEINS 2023)
PB  - Atlantis Press
SP  - 81
EP  - 97
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-340-5_8
DO  - 10.2991/978-94-6463-340-5_8
ID  - Rismadewi2023
ER  -