United Tractors’ Digital Innovation with Microsoft for a Resilient, Growing Indonesia

 |   Indonesia News Center

United Tractors Command Center (doc. United Tractors)

Starting the business as a heavy machinery distributor, PT United Tractors Tbk. (UT), one of Astra’s subsidiaries, has now developed into a front-runner in the nation’s industry through its five business pillars: construction machinery, mining contracting, coal mining, construction industry, and energy. Business transformation that is integrated with digital transformation becomes one of the primary keys for UT’s success in supporting the industry’s digitalization, so it can actively contribute to a resilient, growing Indonesia.

UT has adopted several technological solutions to expand its business and make it more relevant to the customers’ needs. Some of them include fleet management digitalization, manpower digitalization, big data management, and cloud utilization. Along with the technological advancement today, cloud is one of the most prominent factors in accelerating digitalization that allows businesses to grow rapidly, supported by big data integration, thus expanding business adaptability toward market changes.

Lie Gunadi, UT IT Division Head said, “For almost 50 years of UT’s presence in driving progress across various industries in Indonesia, we have truly witnessed how technology has changed the way we live and work. Among the technologies that we have utilized in UT, cloud is one of the examples that is capable to deliver unprecedented innovations. This technology has connected UT’s employees at the head office, branches, sites, and all points of support. It also has increased the effectiveness and efficiency of the company’s business for customers’ satisfaction. In this journey, we are continuously supported by Microsoft through cloud-based technology solutions such as Microsoft 365, Microsoft Azure, and even SAP HANA on Azure. We hope our transformation will support the realization of Indonesia’s Industry 4.0.”

The range of cloud capabilities that have been optimized by UT includes data storage and analysis, data-based driven insights, and integrated collaborative working. From these optimizations, UT has successfully paved the way for a series of innovations, such as:

  1. Developing various digital products. One of them is intended for inventory planning and to increase customers’ heavy equipment productivity by utilizing predictive maintenance. The utilization of heavy equipment across several industries, including in construction and mining, plays a very crucial role. The occurrence of heavy equipment breakdown for just one day will affect the company’s daily operational activities. Through analytical skills, UT can predict the requirement of heavy equipment maintenance systematically – for instance, when heavy equipment needs maintenance, or when its spare parts need to be changed. Thus, operational activities at various industries can run smoothly, while UT maintains the quality of the company’s services.
  2. Conducting big data-driven analysis. Through a secured cloud system, big data will be utilized to conduct deep insight analytics toward all available data, including structured and unstructured data, both from UT’s internal and external environment, to strategically expand its business.
  3. Pioneering UT Connect, an integrated digital solution platform specifically designed to increase services for the customers. For example, as an operational unit analytics platform that can track the usage of heavy equipment, heavy equipment’s condition, and its fuel consumption. Besides, this application can also be utilized for heavy equipment maintenance requirements, tracking spare parts procurement, and others.
  4. Providing UTOne, an integrated internal digital solution platform to assist employees’ work and to support various employees’ digital needs, such as Employee Self Service.
  5. Building the Command Center, a digital operation headquarters for UT’s business, including at branches, sites, and points of support that are spread in 100 locations across the archipelago.

Wanda Prasetia, Microsoft Indonesia Business Development Manager said, “UT’s vast-ranging industries, starting from construction to energy and minerals, show how UT plays a significant role in Indonesia’s developing economy. Digitalization at UT will motivate UT’s surrounding industries, such as customers and partners, to consequently transform. From here, the potential to accelerate the realization of Industry 4.0 that will be able to support the growth of Indonesia’s digital economy is immense. Microsoft is proud to be UT’s solution partner; directly witnessing how our cloud technology is empowering various industries in Indonesia.”

In the middle of the COVID-19 pandemic, all UT employees are indirectly demanded to be adaptive to using technology to smoothen daily work, thus allowing more room for UT to optimize the acceleration of the company’s digital transformation.

“Moving forward, we hope that we can continue and enhance the company’s digital transformation by initiating innovation along with other business lines’ diversification strategy. We believe that innovative digital transformation will answer the needs of Industry 4.0 and contribute positive impact toward Indonesia’s digital economy,” Lie Gunadi ended.