Indonesian conglomerate Kalla Group goes live with Oracle
By Yunnie Marzuki November 14, 2017
- Implements Oracle Cloud Applications for ERP and HR solutions
- Aims to connect all sub-companies to the system by Q4 2018
KALLA Group, an Eastern Indonesian conglomerate with core business areas in transportation, logistics, construction, property, trading, and energy, has gone live with Oracle Cloud Applications, to transform its business processes.
In order to enhance efficiency and manage risks, Kalla Group decided to deploy a strategy to embrace digital transformation across all of its business groups with Oracle Cloud Applications.
“Kalla Group is rapidly expanding our business, spanning across diverse industries including transportation, logistics, construction, property, trading and energy. With the rapid development in Eastern Indonesia, coupled with digitisation across key industries, we need to innovate and modernise our business to stay competitive.
“We chose Oracle Cloud to support us in our digital journey because of the company’s stellar reputation as a partner as well as its complete suite of business solutions built for the cloud,” said Kalla Group director Solihin Jusuf Kalla in a statement.
At the moment, only two Oracle Cloud Applications are implemented in the company, namely, Oracle Enterprise Resource Planning (ERP Cloud), and Oracle Human Capital Management (HCM) Cloud.
PT Haka Sarana Investama (part of Kalla Group) corporate strategist Disa Rizky Novianty says that the company needs to overhaul its legacy ERP environment and streamline its Human Resources (HR) strategy with the help of technology.
Previously, Kalla Group used various systems, both developed in-house or tailored by multiple vendors, to automate its business processes.
In addition, with six business units in the transportation, construction, property, logistics, trading and energy sectors, Kalla Group did not have the visibility into each subsidiary’s performance and could not make timely and strategic decisions to meet challenges.
“Before we dived into the cloud, we were lacking in the standardisation of data and control of it. Cloud could help us to manage data efficiently and cut down the cost,” Disa adds.
Oracle ERP Cloud will help Kalla Group to simplify the streamlining of financial operations with increased visibility and insight across its business units.
By reducing IT complexity, Oracle ERP Cloud will help Kalla Group increase productivity by spending more time on higher-value activities, such as analysing results and advising the company on strategy to help focus on growing its business.
Disa says that Kalla Group also needs a single HR solution that could ease processes and support local compliance needs across all business units and this was unattainable with the current solution.
With Oracle HCM Cloud, Kalla Group has access to a single, unified platform that will streamline operations so its HR team can spend less time on manual processes and focus more on driving business productivity.
Comprehensive data analytics will enable the team to better source and retain top talent all on one secure platform through an easy-to-use interface that is available on any device to help drive employee engagement and sourcing.
Founded in 1952, Kalla Group now has more than 20 sub-companies which operate in eight different industries.
There are seven sub-companies that went live with Oracle in October 2017, and Kalla Group aims to add another five in Q2 2018 and plans to implement the systems in all sub-companies by Q4 2018.
Cloud creates “snowball” effect
When asked about the challenges in implementing cloud or digitalisation, Disa says that it is hard to weld different “views” because the company is huge.
“However, in digitalisation, changing the mindset of the management level will be the crucial point. It’s important to persuade them on how digitalisation will help the company to grow better.”
Oracle vice president of Asean applications Amit Suxena says that implementing cloud in a brick and mortar company will have a “snowball” effect so although the response is small, at first, there will be a big positive impact in the future.
“So every decision made by the management level is important and we have to ensure that everyone follows it,” he says.