Perpustakaan Digital ITB

LEMIGAS is a Research and Development Centre for Oil and Gas Technology under The Agency for Research and Development of Energy and Mineral Resources within the Ministry of Energy and Mineral Resources of the Republic of Indonesia. LEMIGAS also provide laboratory and consulting services for oil and gas industry. Although it is a government institution, government regulation allows LEMIGAS to having business. LEMIGAS business is not in a good shape lately. Sales revenue has been declined since 2002. It only captures very small market share, it is true even before the decline. LEMIGAS business has also been affected by the new oil and gas Law No. 22/2001 that has the tendency to support liberalism in oil and gas business. To be a successful firm, LEMIGAS shall found a way to create unique value for its customers. This study is aimed to find a suitable strategic positioning and the corresponding operating model for LEMIGAS in order to create distinctive value for its customers and to grow its market share. Although this study limits the research to LEMIGAS upstream oil and gas activities (exploration and exploitation) but the finding may also be applied to the downstream. This study has used questionnaires to survey respondents who are LEMIGAS senior members and management. The questionnaire consists of three categories: 1) industry analysis, 2) internal analysis, and 3) strategic positioning. The positioning selection is generated by using frameworks of Treacy and Wiersema’s value disciplines (operational excellence, product leadership, and customer intimacy) and of Kim and Mauborgne’s value innovation. In general the industry and the internal analysis show that the research and the laboratory services are slightly better than the consulting. However, the three services are mildly attractive. The situation will not much different for the next five years. In contrary, respondents believe that current LEMIGAS internal performance is only moderate but, the situation can be improved significantly for the next five years. It finds out that research, laboratory, consulting, and experience are LEMIGAS capabilities that should be reconfigured and mutually reinforcing to becoming its competitive advantage. This study suggests LEMIGAS to adopt customer intimacy strategy and to reposition itself toward customer solution firm by integrating research-laboratory-consultingexperience capabilities. The experience should be codified in such a way forming a dynamic knowledge repository. Customer intimacy strategy may help LEMIGAS in having deep insight into the job the customer is trying to accomplish, therefore, it can improve the predictability of the innovation process. After all, building close relationship and mutual trust to customer are important in oil and gas business where data is the most precious and carefully guarded resource. Therefore, LEMIGAS should focus to particular set of customers that expect similar values. Thus, the repositioning suggest a narration of LEMIGAS' customer value proposition as building long-term meaningful equal partnerships and innovative solution that is tailored to customers' needs for getting their job done trough integrated research-laboratory-knowledge repository. To be a sustaining competitive advantage, customer solution activity system requires excellent customer management and innovation processes such as customer relationship management, knowledge management and jobs-to-be-done solution development. These key processes are represented by 13 strategic objectives, 31 measures, and 15 strategic initiatives which are the basis for further Balanced Scorecard development. The objectives are coherently configured in the proposed Strategy Map.