The Application of New Information Economics Method on Distribution Company to improve the Efficiency and Effectiveness of Performance

PT SS is the main furniture material distribution company in East Java, Indonesia. PT SS has been applying an information technology system for its whole business processes, both on the lights on, infrastructure, services, management and the plan of the application system project. The objective of this research is to give a clear description of the benefits and impacts of the IS/IT investment to the management, both of the lights on or future projects. It is also intended to produce the right decision and better IS/IT investment alternatives. The researcher proposed to analyze the lights on and the project using New Information Economics (NIE). 4 out of 5 practices of NIE, which are demand/supply planning, innovation, prioritization and alignment, were proposed to be applied. The research resulted in the IS/IT investment strategy on the lights on, the fulfillment of the IS/IT requirements, the development of new innovation and priority of the project based on the company strategy intention. It concluded that the company was able to identify which light on was necessary to be enhanced, corrected or ignored. Moreover, it could be identified which project should be prioritized to allow the company to allocate the resources towards the lights on and appropriate project to support the strategy Intention of the company.