IMPLEMENTATION OF A KNOWLEDGE MANAGEMENT SYSTEM TO INCREASE PROFIT OF THE COMPANY CASE OF PT. PE

Fahri Muhammad, Dedy Sushandoyo

Institut Teknologi Bandung, Indonesia

fahri_muhammad@sbm-itb.ac.id , dedy.sushandoyo@sbm-itb.ac.id

Abstract

The IT industry has grown rapidly, resulting in fierce competition among enterprises. System integrators, such as PT. PE, confronts stiff competition, especially when serving government clients. However, profits at PT. PE have fallen during the last three years. This study aims to address two key questions: firstly, what is the knowledge management system that should be proposed to PT. PE to increase their profit? Secondly, what is the implementation plan of the proposed knowledge management system? A qualitative research method was used to study these questions. Data was gathered through interviews with important stakeholders such as the CEO, project managers (PM), and administrative employees. Observations were also done within the operations team. The data was collected from January through April 2023. this study underlines the significance of knowledge management for system integrator organizations such as PT. PE. The problems discovered in PT. PE's knowledge management processes have had a significant impact on its profitability. PT. PE, on the other hand, hopes to overcome these issues, improve their knowledge management processes, and, eventually, increase their profitability and competitive position in the IT market, through the offered solutions and implementation plan. In conclusion, this study emphasizes the crucial importance of knowledge management in the success of system integrator firms. The issues revealed in PT. PE's knowledge management methods have had a negative impact on its profitability. However, with the offered solutions and implementation plan, PT. PE hopes to overcome these problems, improve their knowledge management procedures, and ultimately increase their profitability and competitive position in the IT industry. This study contributes to the understanding of successful methods that might drive success for system integrator organizations in a highly competitive industry by emphasizing the relevance of knowledge management.

Keywords: Knowledge Management, system integrator, Profit, SECI, PPT

Introduction

Knowledge management (KM) is a way of making the right knowledge be given to the right people, at the right time through process in the company that is used to collect, create, process, develop, store, and disseminate the correct knowledge to be used to achieve the company's goals (Hajric, 2018). According to (Meihami & Meihami, 2014) and document360 team (2019) knowledge management can provide several competitive advantages for an organization such as customer satisfaction, organizational performance, innovation, improve decision making process, speed access to knowledge, and avoid redundant effort (Meihami & Meihami, 2014).

Based on the brief explanation above about how useful knowledge management can solve problems in the company and increase the competitive capabilities of a company, it will also certainly be useful for PT. PE as one of the system integrators companies in Indonesia. The purpose of this paper is how the author implements the knowledge management system at PT. PE with the aim of being able to solve operational problems that occur in the company and increase competitiveness in the IT Industry, especially in Indonesia. The problem that PT. PE faced was a decline in earnings over the las five years, as shown in the graph below.

Figure 1. PT. PE Profit Graphic

Source: Author

From the graphic above, in the last 5 years there has been a decrease in the profit of PT. PE. Especially from 2019 to 2020 to 2021 there was a significant decline in profits, this was due to ineffective managing companies, of course there are other external causes, such as increased operating costs of third parties, economic conditions that affect the dollar exchange rate where all operating costs and purchases of goods are very sensitive to dollar prices. This research will focus on internal problems where things can be more controlled. The author will utilize a cause diagram to determine the root cause of the profit decline.

Figure 2. Cause Diagram Analysis

Source: Author

Based on the cause diagram above, the decline in profits that are being faced by PT. PE is caused by ineffective in managing companies and it is caused by several things. Furthermore, the analysis carried out can be seen that almost all problems or causes of PT. PE became ineffective in the company due to the lack of knowledge management system in the company. Therefore, in this study, the author will focus on problems caused by the lack of knowledge management system. Because by solving this, it can help PT. PE solved many of their internal problems.

Metode

The research method of this research is qualitative. The choice of qualitative method in this study is because the purpose of this study is closely related to the experience of employees during their work and the population of this study, which is very small, namely the operational team of PT. PE which consists of only 5 people. This is in accordance with the explanation of (Hammarberg, Kirkman, & de Lacey, 2016) where explaining that qualitative research is used to answer questions about the experience, meaning and perspective of participants and when those involved are small groups. In addition, qualitative identic with research that is contextual and requires something more detailed (Hammarberg et al., 2016).

According to (Creswell, 2014) there are 4 data types of data collection data methods for qualitative research, namely, observation, interview, documents, and Audio-Visual Materials. But in this study the author will focus on 2 types of collection data method, namely observation and interview. Because observation and interview are methods that have been around for a long time and are most commonly used for qualitative research (Given, 2008); (Ryan, Coughlan, & Cronin, 2009); (Sandelowski, 2002).

Thematic analysis will be used as the analysis method in this study. Qualitative data collection is usually dependent on interpretation that mean need several explanations (Alhojailan & Ibrahim, 2012). There are many methods that can be used, one of which is thematic analysis. Thematic analysis is a type of qualitative analysis that is used to analyze classifications and present themes (patterns) that relate to the data (Alhojailan & Ibrahim, 2012). According to (Alhojailan & Ibrahim, 2012) thematic analysis is considered the most appropriate for any study that seeks to discover using interpretation because it's provided a systematic element to data analyst

Results and Discussion

1. Analysis

Based on the results of interviews and observations that have been conducted by the author to 3 interviewees from the operational team of PT. PE, there are several problems and information in carrying out their work, then the information will be coded which will be included in the themes that are stages of thematic analysis. For data from interviews and observations stay in the appendix.

Figure 3. Thematic Analysis Theme

Source: Author

Based on the theme above, the coding is divided into two, namely as a sub-cause, critical knowledge and as recommendations from interviewees and observations. The division will be seen in the table below

Table 1. Coding Grouping

No	Coding	Type
1	The knowledge gap between employee	Sub Cause
2	No established platform for sharing knowledge	Sub Cause
3	Established safety and secure sharing knowledge platform	Recommendation
4	Limited access to training and development resources	Sub Cause
5	Create a sharing session	Recommendation
6	Create a proper training and development program	Recommendation
7	Ineffective stored project document platform	Sub Cause
8	Create a platform for stored document	Recommendation
9	Create a central database	Recommendation
10	Create SOP	Recommendation
11	No database for vendor or client information	Sub Cause
12	No process for converting tacit knowledge into explicit knowledge	Sub Cause
13	Incentive system	Recommendation
14	Management encourages learning and development in the future	Recommendation
15	Evaluation system	Recommendation
16	Lack of existing culture of leaning in the company	Sub Cause
17	Basic computing skill	Critical Knowledge
18	Communication skill (negotiation, etc)	Critical Knowledge
19	Project management knowledge (leadership, problem management)	Critical Knowledge
20	Industry knowledge (administration and IT knowledge)	Critical Knowledge
21	Dependency on third party	Sub Cause
22	Lack of knowledge management	Sub Cause

2. Business Solution

PT. PE has not implemented a knowledge management strategy starting from the individual or corporate levels. After finding several problems faced by the company related to the application of knowledge management obtained from the results of interviews and observations to employees in the environment of PT. PE there are 9 sub causes faced by PT. PE in the context of knowledge management. Both from the knowledge gap between employees, no establish platform for sharing knowledge, ineffective platform for stored document, lack of database, no processing for converting tacit knowledge into explicit knowledge, limited access to training and development resources, dependency on third party, lack of knowledge about knowledge management and lack of existing culture of learning in the company.

Therefore, the role of knowledge management will contribute to solving existing knowledge management problems. To solve all sub-causes are described followed by determining their respective knowledge management objectives, which are then assigned to the KM framework People, process and technology. Individuals involved in knowledge management processes within an organization are referred to as "people." This includes hiring, training, motivating, and retaining the knowledge management system's operators (Hamou-Lhadj, Lynch, & Akgunduz, 2015). Process aspect refers to the procedures, practices, and policies that govern knowledge management activities. Processes include activities such as knowledge creation, documentation, storage, retrieval, and dissemination (McAdam, R., & Reid, 2001). And technology is referring to the tools, systems, and platforms that support knowledge management. Technology includes hardware and software applications such as databases, intranets, and collaboration tools (Alavi & Leidner, 2001). An explanation of the methods used will be explained in the table below.

Table 2. Business Solution Knowledge Management

Business Issue	Sub Cause	KM Objective	People	Process	Technology
Profit Decrease	Knowledge Gap between employees	Establish a knowledge sharing platform to enable employees to share their knowledge and expertise more effectively.	Director, Employee	Ptalk (S), Pmentorship (S)	Cloud Based
	No Established platform for sharing knowledge	To establish a knowledge sharing platform that allows employees to easily share their knowledge and expertise with others in the company.	Director, Employee, IT	Phub (S)	Web Based
	Ineffective platform for stored document	Implement a new and more effective document management system to ensure that important knowledge assets are properly stored and easily accessible to employees.	Director, Employee, IT	Pdoc (C)	Cloud Based, AI
	Dependency on third party	Reduce dependency on third party knowledge	Director, Employee	PTalk(S), Phub(S), PTraining(S)	Cloud based, AI
	Lack of knowledge about knowledge management	to improve understanding of knowledge management processes and their practical implementation inside the business, with the goal of achieving the company's vision and purpose.	Director, employee, Agent of change	Ptraining(S), Agent of change (I)
	Lack of database	Establish a centralized database to store important information and knowledge assets, making them more easily accessible to employees.	Director, Employee, IT	Pdoc (C)	databased, AI
	No process for converting tacit knowledge into explicit knowledge	Develop a process for converting tacit knowledge (i.e., knowledge that is not easily codified or written down) into explicit knowledge (i.e., knowledge that can be easily shared and documented).	Director, Employee, agent of change	Create SOP (E), Create lesson learn from each project (E), Exit Interview (E)	Cloud Based
	Limited access to training and development resources	Increase access to training and development resources for all employees, to ensure that they have the knowledge and skills needed to perform their jobs effectively.	Director, employee, HR	Ptraining (S), Pdevelopment (I)
	Lack of existing culture of leaning in the company	Develop a culture of learning in the company, where employees are encouraged to continually improve their knowledge and skills.	Director, Employee, Agent of Change	Agent of Change (I)	Social Media

Source: Author

SECI

Furthermore, the proposed knowledge management process will be divided based on the SECI framework.

Table 3. SECI Tools

Socialization	Externalization
Ptalk	Create SOP
Pmentorship	Create lesson learned from each project
Phub	Exit interview
Ptraining
Combination	Internalization
Pdoc	Pdevelopment
	Agent of change

Source: Author

Socialization – Tacit to Tacit Knowledge.

Socialization is a process of sharing experiences and thereby creating tacit knowledge such as shared mental model and technical skill (Hajric, 2018) &; (Nonaka, Takeuchi, & Umemoto, 1996). In the business solution recommendation above including Ptalk, Ptalk is a sharing session activity that will be carried out by both internal and external employees (vendors or related parties) to employees at PT. PE, of course, will discuss several aspects such as what problems they have faced and how they have overcome them, then also updates on ongoing projects. For vendors they will explain about their latest products, and others. This activity will be carried out once every 1 month. The outcome of this activity will also be in the form of recordings, documents from sharing sessions that can be accessed in the future.

Next is Pmentorship. Pmentorship is a mentoring program carried out by internal parties between senior employees and junior employees, such as at PT. Junior PLE PMs will be mentored by senior PMs to gain knowledge that senior PMs already have, as well as other positions. Mentorship is an efficient method of closing the knowledge gap among employees in an organization. Employees may feel they lack the assistance and advice they need to improve their skills and knowledge since there is no clear platform for knowledge sharing and limited access to training and development tools. Employees might benefit from the wisdom and experience of their more senior colleagues by creating a mentorship program.

Third is Phub. Phub, as a collaborative tool, could be an excellent answer to the company's knowledge gap problem. Employees can use Phub to cooperate and exchange documents, experiences, and discuss current or historical difficulties. Because this platform is web-based, it is easily accessible to all employees from any location and at any time. Phub's capacity will make it easier for employees to share knowledge and cooperate on various projects, resulting in more knowledge sharing and better decision-making. This collaboration platform may keep employees up to date on current projects and activities, as well as enable knowledge transfer between team members. Employees will have access to a larger range of knowledge and will be able to contribute to the company's knowledge base by using Phub as a platform for knowledge exchange. Thus, implementing Phub will be a beneficial step for the company in terms of improving knowledge management and fostering a learning culture.

The last one is Ptraining. Ptraining is a thorough training program designed to improve employees' knowledge and abilities in crucial areas for the firm, such as procurement procedures in government institutions, effective communication skills, basic IT skills, and more. The curriculum will be created so that employees can attend relevant training sessions that correspond to their job responsibilities and personal development objectives. Employees will also be able to receive feedback and coaching from their managers, allowing them to reflect on their progress and identify areas for further improvement. By investing in employee development through Ptraining, the company can ensure that its employees has the information and skills needed to fulfill their job obligations efficiently and contribute to the organization's overall success. At least once a year for each employee.

Externalization – Tacit to Explicit knowledge

Externalization is a process of articulating Tacit knowledge into explicit concept (Hajric, 2018) &; (Nonaka et al., 1996). First is developing SOP. Developing a standard operating procedure (SOP) based on the experiences of each individual and best practices from industry is a critical step in addressing the company's knowledge gap problem. This SOP will act as a reference for all employees, particularly new hires, as they learn about the company's operations, policies, and protocols. Employees will have a clear idea of what is expected of them if there is a standard set of instructions, and they may refer to the SOP anytime they meet any challenges or difficulties. This will aid in ensuring consistency in job quality and reducing errors or misunderstandings, resulting in greater efficiency and production. Furthermore, reviewing and updating the SOP on a regular basis will ensure that it remains relevant and reflects any changes in the company's operations, reviewing and updating can be done every 2 years. Furthermore, reviewing and updating the SOP on a regular basis will ensure that it remains relevant and reflects any changes in the company's operations. By applying this method, the organization may streamline its processes, improve knowledge management, and ensure that its people have the information and skills they need to do their jobs effectively.

Second one is created lesson learned from each project. Creating a lesson learned document for each project is a critical component of knowledge management. It enables the organization to capture project-specific information and make it available for future initiatives. By doing so, the company may avoid making the same mistakes and build on earlier project accomplishments. What went well, what didn't work, what could have been done differently, and what were the important lessons from the project can all be included in the lesson learned document. This document can be used as a reference for future projects, as well as for training purposes to help new employees understand the organization's project management methodology. Furthermore, this document can be used as a knowledge-sharing platform for employees to learn from one another and share their experiences. As a result, generating a lesson learned document is a critical step in fostering a learning and continuous improvement culture within the firm.

The last one is exit interview; The exit interview program is intended to retain the knowledge of employees who intend to leave the organization. This program entails interviewing retiring employees in order to record their thoughts, experiences, and knowledge, which can then be passed to other individuals or teams. Exit interviews can assist organizations in retaining valuable expertise, particularly in critical areas, and mitigating knowledge loss caused by high turnover rates. Exit interviews can also assist company in identifying areas for improvement and making required changes to boost retention rates and employee satisfaction. Exit interview program implementation and analysis can provide significant data for future decision-making and ensure the sustainability of the knowledge management program.

Internalization – Explicit to tacit knowledge

First is Pdevelopment, Pdevelopment is a program that aims to improve employees' abilities and knowledge by exposing them to new situations. Attending leadership training programs or being allocated to various project kinds, continue their master degree might be examples of this. Pdevelopment attempts to build an organizational culture of continuous learning and development, which can improve employee engagement and retention while also encouraging innovation and creativity. And after their finish their training they will make a proposal to make an improvement in the company, beside that also in this program, there will be e-learning where employee can self-paced with tests at the end of the course

Second one is Agent of change, The "Agent of Change" program is a strategic project designed to help organizations apply knowledge management methods. The program entails the identification of a designated employee who is tasked with driving change within the organization through developing the culture of continuous learning. The selected individual serves as a change agent and is critical in promoting the adoption of the company's various knowledge management programs. The Agent of Change program is a valuable tool that firms may utilize to develop a learning culture, enhance employee engagement, and encourage knowledge management techniques. One of the tools that can be used by agent of change is social media, where he/she can promote the implementation using company social media like IG, Facebook, YouTube or TikTok. Organizations can guarantee that knowledge management methods are interwoven into the fabric of the organization and that there is a persistent effort to foster continuous learning and improvement by identifying and empowering a designated individual to drive change.

Combination

In this part knowledge management tools that be used is Pdoc. Pdoc is a comprehensive platform designed to make it easier to store, retrieve, and share project-related documents. This portal is useful for maintaining and disseminating multiple templates and existing project papers within the organization. Pdoc is designed to provide a centralized area for managing and storing all necessary project-related documents and data that employees have access to. It also serves as a storage location for vital datasets such as vendor lists and client information such as contact information, company names, and email addresses. The software allows employees to access the database at any time and gives them the information they need to contact the appropriate stakeholders in the event of an issue. Also, in this program will be included an Artificial intelligence that will easily speed up the search and also combine documents that are still related to the theme sought by employees. Organizations can improve their knowledge management procedures and assure the availability of information to all key stakeholders by establishing such a platform.

Table 4. Knowledge Management Program Recap

Knowledge Management Program	About	Things to do	Benefit
Ptalk	A sharing session to increase the knowledge of employees, who will be speakers is both from internal parties to discuss experiences from doing projects and external such as vendors to discuss their products and best practices in the market	· List potential speakers, · make theme planning per week, · record when ptalk is done	Equalize the knowledge of employees, and also reduce dependency to third parties
Pmentorship	One by one mentoring program where a senior employee will be paired with a junior employee and provide mentoring to the junior employee especially helps in dealing with problems in the project	· List personnel who may be mentors, · do mentoship	Equalize the knowledge of employees, and also reduce dependency to third parties
Phub	A web-based platform and application that functions for communication of all employees, not only for chatting, but this platform will also be useful for sharing knowledge both from Ptalk, or lessons learned from each project and can be in the form of documents, images, videos, voice recordings, etc. In addition, this will be a platform for employees to collaborate with each other in carrying out projects or developing new ideas, even though they are from different divisions.	· Create a platform with vendors, · upload documents such as government rules etc. · create collaborative programs	Creating new ideas, creating your own products, and reducing dependency on consultants who make design projects can get a profit of around 0.5%
Ptraining	The training program is mainly to meet the needs of companies such as training on TKDN and procurement of goods and services, in addition to basic computing skills, communication skills and project management such as PMP and others.	· Conduct training needs analysis, · choose vendors for training, · make training plans for each employee	Improve employee knowledge and skills, increase efficiency and effectivity
Create SOP	A standard in running a project that will be prepared based on existing rules in the procurement industry of goods and services, besides that combined with the experience of employees will be able to match the client where the project takes place	· Collect all rules regarding the procurement of goods and services from the government and each agency, · conduct an FGD to discuss standards in running projects in addition to existing rules	Make it easier for new employees to adapt, increase efficiency and effectivity
Create lesson learned from each project	A report that contains experience in undergoing the project such as obstacles faced and how to deal with them, in addition to containing suggestions if the problem arises again, in the form of digitization and stored in Phub	· Create a form to fill out about lessons learned, · distribute to the project team, · recap all answers and digitize	Improve employee knowledge and skills, increase efficiency and effectivity
Exit interview	Interviews that will be conducted to employees who resign, or work contracts expire, containing questions about their experience in the company, advice for the company, etc.	Create a list of interview questions	Maintaining existing knowledge
Pdoc	A platform to store all project administration documents, from draft letters to documents that have been signed by clients, such as contracts etc. Create a database containing client and vendor personal data, such as name, company, email, number that can be contacted, as well as the capabilities they have	· create platforms with vendors, · digitize existing documents, · upload all draft document, · collect client and vendor data	Simplify the adaptation of new employees, increase efficiency and effectivity, avoid fines from BPK for missing documents (maintain profit 0.1 - 0.3%)
Pdevelopment	A development program for employees that can be a rotation program where they are given projects at different clients and also given scholarships to continue their graduate program education	Planning for program development	Increase employee knowledge and skills, increase employee satisfaction
Agent of Change	The program selects employees who will help to implement this knowledge management program	· Selecting employees to become agents of change, · providing training for agent understanding of knowledge management	Simplify the implementation of knowledge management

Source: Author

3. Implementation Plan

This implementation plan will be divided into 4 stages, namely, design, socialization, implementation, and evaluation which will be carried out for 1 year starting from September 2023 where all work projects have been completed.

Table 5. Implementation Plan

No	Activities	PIC	Proposed time framework
			Sep-23	Oct-23	Nov-23	Dec-23	Jan-24	Feb-24	Mar-24	Apr-24	May-24	Jun-24	Jul-24	Aug-24	Sep-24
	Design Stage
1	Create a plan and look for outsourcing to create Phub, Pdoc and partners for doing training.	KM Manager
2	Create budget for implementing the knowledge management	KM Manager
3	Get Approval from C-level	KM Manager
4	Hire outsources	KM Manager
5	Create the program	KM Manager
	Introduce
6	Introduce all program to employees	KM Manager
7	Train employees to use or do program	KM Manager
	Implementation
8	Implement all the program	agent of change
9	Monitoring the progress of knowledge management program	agent of change
	Evaluation
10	Eval the effectiveness of the knowledge management program	KM Manager

In the process of implementing this knowledge management program, the company will choose one KM Manager from one of the existing employees to become PIC at almost all stages except for the implementation stage which will later be assisted by an agent of change. For a more detailed explanation will be explained below.

Design stage

This stage will be divided into 5 sub-stages, starting with Create a plan and look for outsourcing to create Phub, Pdoc and partners for doing training. Of course, before it can be implemented, such as having to be able to submit submissions, both operational plans, how implementation runs and also describe the budget needed. Given that PT. PE does not have an internal IT person, therefore programs such as Phub and Pdoc that use PT. PE must hire a third-party who can assist in making both programs tailored to the needs of the company, in addition to Ptraining where PT. PE will work with training service providers according to the needs of PT. PE such as communication, especially negotiation soft skills which is one of the critical knowledge needed at PT. PE in undergoing projects. This activity has a target of being carried out for 2 months

Furthermore, after finding a list of third parties who can be invited to work together to carry out knowledge management projects that want to be implemented, the KM manager is tasked with making a RAB which will be given to the C-level to get approval for next year's implementation, this activity is carried out for 1 month, namely October 2023.

The next stage is submission to the C-level where of course it will go through several stages starting with submission to the COO as the direct supervisor where this implementation is carried out and also to the CEO and CFO discussing in more detail about the costs needed. Some of these stages will certainly be passed by presentations in front of the C-levels. Therefore, it took 1 month after adjusting to the busyness of the C-level.

After the planning and RAB are approved by the C-level, of course, the next stage is to contact the third parties with whom we will cooperate and of course discuss in more detail about how to cooperate, terms of payment etc.

After everything is completed, the sub-stage of this stage is the create program, which will be carried out for 3 months from November 2023. At this stage will begin to be more detailed about the program to be made, such as discussions with stakeholders according to their needs, and will also be given to third-parties as parties who will create several programs, for Ptalk, collection of documents to be stored and other operational needs of each program.

Introduce

At this stage, it begins with introduce all programs that have been made to employees, this activity will be carried out in early January 2024, this activity will be carried out during a townhall meeting at the beginning of the year where the company will explain their targets for that year and at the same time discuss this new KM program.

In addition, of course, it is necessary to hold training for employees so that they get used to using some of the programs that have been made, such as Phub and Pdoc, how they access and use them and also who they should ask if there is a problem.

Implementation

At this stage of implementation, one of the employees will be chosen to be an agent of change, of course, he will be responsible or as a PIC to ensure the implementation process runs smoothly, such as helping if there are problems and others, of course, here the KM Manager does not just disappear, but will be an advisor to assist the agent of change in carrying out his duties. This implementation process will be carried out during the first 8 months to see the effectiveness of each program made.

Evaluation

This is the last stage where each evaluation process will be carried out once every 1 year, at the end of the year so as not to interfere with the company's project, by providing surveys to each employee to measure their level of satisfaction with the programs made and asking about what needs to be improved from the programs made. In addition, to add data to each program, there will usually be a mini survey of every activity they do, all of these data will be collected and used as evaluation material for the future.

Conclusion

Starting from the problem of PT. PE experienced a decrease in profits, and after analysis it was found that the cause of the problem was ineffective in managing company which when analyzed more deeply found the root cause was lack of knowledge management system. Furthermore, to obtain more detailed data to help the process of implementing knowledge management is carried out with du events, namely interviews and observations. The data collection process is carried out focusing on the operational team where this problem occurs. Interviews were conducted with 3 people, namely COO, Project Manager and Project Admin.

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