Improving Innovation Management Implementation as Part of the Consistent Application of the Strategic for Business Growth

Abstract

The sales strategy has not been supported by effective facilities. This can be seen from the income statement of related area. Sales or revenue conditions varies widely every month, especially when compared to last year. Likewise, with the cost of support or production. Costs in the income statement consist of Capital Expense and Operational Expense. While operational expense is divided into 2 parts, namely fix cost and variable cost. This research focuses on the ratio between the variable cost in each item compared to the revenue in the monthly income statement. There are several areas that show a decrease in the ratio in general when compared to last year. And in Pareto, there are 2 items that are dominant in variable cost, namely: Freight and Warehouse shipping. This area is used as a role model for any innovations that are related to the two GL accounts. To quickly multiply the benefits, these innovations are distributed to other areas. The implementation process is carried out regularly and monitored until it provides benefits to the company in the form of an income statement. Within 3 months it can be felt that the cost reduction was Rp. 15,673.45 Mio.