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

Kessya Azzahra Rismadewi (), Lukman Abdurahman, Muharman Lubis and Muhammad Fakhrul Safitra
Additional contact information
Kessya Azzahra Rismadewi: Telkom University
Lukman Abdurahman: Telkom University
Muharman Lubis: Telkom University
Muhammad Fakhrul Safitra: Telkom University

A chapter in Proceedings of the International Conference on Enterprise and Industrial Systems (ICOEINS 2023), 2023, pp 81-97 from Springer

Abstract: 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.

Keywords: Business positioning; IT-based enterprises; partial adjustment valuation; performance enhancement; systems engineering; valuation methodologies; information technology (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-340-5_8

Ordering information: This item can be ordered from
http://www.springer.com/9789464633405

DOI: 10.2991/978-94-6463-340-5_8

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().