IPB University Expert Reveals the Importance of Business Analytics in Improving the Competitiveness of the Palm Oil Industry
Prof Arif Imam Suroso, Permanent Professor of Business Analytics explained the application of business analytics to improve the competitiveness of the palm oil industry in Indonesia. He explained that the palm oil industry contributes significantly to the Indonesian economy, namely as a source of foreign exchange for the country, increasing employment, and improving people’s welfare.
“In the context of the palm oil industry, there are a number of important challenges that need to be faced by Indonesia such as the issue of implementing sustainable development, bans on palm oil exports in destination countries, and climate change which also affects palm oil productivity in the future,” said Prof Arif during his Pre-Scientific Oration online on 25/4.
He continued, along with the rapid development of information technology, business analytics can be an option for a business or industry to obtain solutions to problems faced on the basis of factual information.
“Business analytics is the use of data, information technology, statistical analysis, quantitative methods, and models based on mathematical or computer approaches that can help managers gain insight into business operations and make better decisions based on facts both descriptively, predictively and prescriptively,” he said.
He said that one of the important findings through the application of business analytics was that the competitiveness of Indonesian palm oil products was higher than its competitors, whether in raw or refined form.
“However, Indonesia is still not superior to competitors in palm oil derivative products. On the other hand, the downstreaming of the palm oil industry can provide added value to a product so that it can create a higher product value in the global market,” said the Lecturer of Business School of IPB University.
Prof Arif explained that an important issue in the palm oil industry that was successfully revealed through prescriptive analysis was a business analytics model in determining the adoption of advanced mill technology by considering three main issues, namely technology, organisation and environment.
“Business analytics can be used to improve the efficiency, productivity and sustainability of the palm oil industry. With the application of business analytics, steps to strengthen the competitiveness of the palm oil industry can also be formulated properly, thus making a positive contribution to economic growth, social improvement and inclusive environmental benefits,” he said.
However, he added that business analytics is mostly used by the industry, so it is still not applicable to the general public or ordinary farmers because it is related to complex data collection. (Lp) (IAAS/RUM)
