Naval Technology Development Strategy in the Integrated Fleet Weapon

System for Supporting the Principal Task of Indonesian Navy

Ahmadi

1∗

, Avando Bastari

, Bill Saudiaz

and A. K. Susilo

Indonesian Naval Technology College (Sekolah Tinggi Teknologi Angkatan Laut/STTAL) Bumimoro-Morokrembangan,

Surabaya 60178, Indonesia

Keywords:

Naval Technology, Strategy, Fleet Weaping System.

Abstract:

As an effort to optimize the implementation of Indonesia Navy principal task, development strategy has an

important role to encounter naval defense and security threat. This research aimed at formulating a strategy

to develop naval technology to strengthen the integrated naval weapon system. This research used SWOT

(Strength, Weakness, Opportunity, Threat) analysis method as strategy formulation. Secondly, this research

used the Interpretative Structural Modeling (ISM) and Balanced Scorecard approach. Naval technology de-

velopment strategy in the integrated ﬂeet weapon system (SSAT) which was based on naval technology was

formulated into a strategic management plan which was based on ﬁve points of SO strategy, three points of

ST strategy, six points of WO strategy and one point of WT strategy that made in ﬁfteen stages of strategy

in the naval technological mastery. The strategy mapping created in the Balanced Scorecard structure pre-

sented that ﬁnancial perspective was made of one strategy target. Nine strategy targets were in the internal

process perspective. Learning and Growth perspective was made of four strategy goals. In addition, customer

aspect consisted of one strategy goal. This research was expected to give contribution to the naval strategic

development to support the integrated ﬂeet weapon system in the Indonesian Navy.

1 INTRODUCTION

Located in a strategic trade route and sea transporta-

tion, Indonesia faces some challenge in the manage-

ment of maritime defense which comprises several

dimensions including defense and security manage-

ment. The national defense strategy which is imple-

mented in the sea is referred to the infrastructure and

the mastery of Naval Technology, especially in In-

tegrated Fleet Weapon System in Indonesian Navy,

where the military strategy believes that technology-

supported weapon system is an asset to win a combat.

As an effort to optimize the implementation of

Indonesia Navy principal task, development strategy

has an important role to encounter naval defense and

security threat. This research aimed at formulating a

strategy to develop naval technology to strengthen the

integrated naval weapon system by using technology

management approach. This research used SWOT

(Strength, Weakness, Opportunity, Threat) analysis

method as strategy formulation. Secondly, this re-

search used the Interpretative Structural Modeling

(ISM)-Balanced Scorecard approach as a part of strat-

egy implementation Sahiti et al. (2016).

There is some literature in support of research

likely SWOT analysis uses to obtain the weight value

from the expert in identifying the internal and external

factors of traditional shipbuilding industry. SWOT

analysis uses to determine the external and internal

factors to support of strategy formulation in business

schools in the Kingdom of Saudi Arabia. Integrate

results of each level and provide a ﬁnal assessment of

the market selection strategy. SWOT analysis used to

give a rank of countries in calculating the number of

gold medals, silver medals and bronze medals won.

ISM for analyzing interactions between barriers

to just-in-time (JIT) production operations. ISM to

analysis of core industry competencies in Pekalon-

gan City. ISM to identify the drivers of travel /

tourism growth and build relationships between en-

ablers. ISM to study various aspects and correla-

tions between youth and sustainable rural develop-

ment. ISM to identify and rank the various criteria

used for supplier evaluation (Y

uksel and Da

gdeviren,

2007).

BSC as a methodological concept for performance

assessment based on system dynamics. The rele-

vance of BSC to improving ﬁnancial performance.

Ahmadi, ., Bastari, A., Saudiaz, B. and Susilo, A.

Naval Technology Development Strategy in the Integrated Fleet Weapon System for Supporting the Principal Task of Indonesian Navy.

DOI: 10.5220/0008548501850194

In Proceedings of the 3rd International Conference on Marine Technology (SENTA 2018), pages 185-194

ISBN: 978-989-758-436-7

185

Implement BSC on the performance of strategic man-

agement for the banking industry. BSC to evaluate

performance, implement organizational mission and

strategy. BSC to measure the performance of higher

education. BSC to examine employee performance

appraisal in implementing the company’s new strat-

egy. BSC to observe the organization’s strategic plan-

ning process in directing its efforts.

There were three stages of strategic management

namely strategy formulation, strategy implementa-

tion, and strategy evaluation. The delimitation of the

study was on the strategy formulation strategy evalu-

ation plan. This research was expected to give contri-

bution to the naval strategic development to support

the integrated ﬂeet weapon system in the Indonesian

Navy.

The paper is organized as follows. Section 2 re-

views the basic concept of method, Naval Technol-

ogy, Integrated Fleet Weapon System. Section 3 gives

the result and discussion of the paper. Section 4 de-

scribes the conclusion of Naval Technology develop-

ment strategy for Integrated Fleet Weapon System

2 MATERIALS /

METHODOLOGY

2.1 Indonesia Navy

The Indonesian Navy (Indonesian Navy) is one of the

branches of the army and is part of the Indonesian Na-

tional Army (TNI), which is responsible for the Re-

public of Indonesia’s national defense operations at

sea. According to Law No.34/2004 on the Indonesian

National Armed Forces, Article 9, the Navy has the

following tasks (Quesado et al., 2018):

• Perform military duties in national defense

• Enforce the law and secure the order in the sea

area of national jurisdiction in accordance with

national laws and ratiﬁed international laws

• Perform diplomatic duties in support of foreign

policy set by the government

• Engage with other duties relevant for the mainte-

nance and development of naval power

• Support civilian empowerment in sea defense ar-

eas

2.2 Integrated Fleet Weapon System

(SSAT)

As the main component of sea national defense, In-

donesian Navy implements national defense policy

Figure 1: Integrated Fleet Weapon System of Indonesian

Navy

which is defending national sovereignty and territo-

rial integrity, protecting the national honor and se-

curity, and performing military operations. Indone-

sian Army strength is integrated in Integrated Fleet

Weapon System (translated as Sistem Senjata Armada

Terpadu or SSAT). SSAT consists of four compo-

nents, namely Republic of Indonesia Warship (KRI),

Aircraft, Marines, and Naval base. These four com-

ponents are interrelated and support each other. The

SSAT is literally correlated with the integrated use of

the four Navy weapon systems during operation. The

four components cannot act separately but under the

integrated instruction of the Navy.

2.3 Naval Technology

In conducting naval operations in the future, there is

a need for highly skilled personnel with an effective

response to an attack. In designing new systems and

equipment, ﬂexibility and adaptability are needed to

manage technology improvements. In testing skills

and providing training, there needs to be a closer re-

lationship between naval personnel and the defense

industry to provide feedback on developing new ca-

pabilities.

The general trend towards fewer crews will en-

courage the application of technological capacity to

improve crew capability. The role of warships by

2030 will begin to change with the use of unmanned

systems and remote control systems. It will have a

greater effect with less risk of the aircraft carrier. In

addition, the need for mission ﬂexibility and energy

efﬁciency in naval vessels will encourage the appli-

cation of technology which is related to energy stor-

age, production, shipping and reuse or energy man-

agement.

In the Global Marine Technology Trends 2030,

will focus on 8 (eight) technology ﬁelds, with the

potential to change naval operations in the future.

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186

These eight technologies will play an important role

in future war battles (Attri et al., 2013). The eight

technologies include 1) Advanced Material; 2) Au-

tonomous System; 3) Big Data Analytic; 4) Advanced

Manufacturing; 5) Energy Management; 6) Cyber and

Electronic Warfare; 7) Human Computer Interaction;

8) Human Augmentation

2.4 SWOT Analysis

SWOT Analysis is an analysis consisting of micro en-

vironment analysis to ﬁnd out the strengths and weak-

nesses of a company, and macro environment analy-

sis to ﬁnd out opportunities and threats to the com-

pany. This analysis is based on logic that could op-

timize strengths and opportunities, but it could min-

imize weaknesses and threats at the same time [19].

The strategic decision-making process is always re-

lated to the development of missions, goals, strate-

gies, and policies of an industry/company. A research

shows that industry or company performance can be

determined by combination of internal and external

factors. Both of these factors must be considered in

the SWOT analysis. Internal factors include strengths

and weaknesses, while the external factors include op-

portunities and threats.

SWOT matrix is a decision-making formulation

instrument to determine the strategies adopted based

on logic to optimize strengths and opportunities of

the company, and simultaneously minimize the weak-

nesses and threats. Below are steps in preparing

SWOT matrix:

• Compiling a list of external opportunities and

threats of a company as well as the internal

strengths and weaknesses.

• Developing SO (Strength-Opportunity) strategy

by matching the internal strength with the exter-

nal opportunities.

• Developing WO (Weakness-Opportunity) strat-

egy by matching the internal weaknesses with the

external opportunities.

• Developing ST (Strength-Threat) strategy by

matching the internal strength with the external

threats.

• Developing WT (Weakness-Threat) strategy by

matching the internal weaknesses with the exter-

nal threats.

2.5 Interpretative Structural Modeling

(ISM)

The interpretative structural modeling (ISM) used for

ideal planning, is an effective method because all ele-

ments can be processed in a simple matrix. ISM was

ﬁrst proposed by War ﬁeld in 1973. The interpreta-

tive structural modeling is a methodology that aims

to identify the relationship between a particular item,

which deﬁnes a related problem or issue and a suit-

able modeling technique for analyzing the inﬂuence

of one variable on another variable.

ISM has been well proven to identify structural

relationships among system-speciﬁc variables. The

basic idea is to use practical experience and expert

knowledge to parse complex systems into multiple

sub-systems and build structured structural models.

The ISM-based approach is one of the versatile and

powerful techniques that have been used to solve

complex multi-factor problems. ISM is interpreta-

tive, since the group assessment selected for the study

determines whether and how the related variables.

There are procedures or stages in the use of the ISM

method, such stages as :

• Identify parameters.

• Development of Structural Self Interaction Matrix

(SSIM). The development of an interpretive struc-

tural model begins with the preparation of a struc-

tural self-interaction matrix, indicating the direc-

tion of the contextual relationship between ele-

ments.

• Reach ability Matrix. From the self-interaction

matrix (SSIM), the relational indicator is con-

verted to binary numbers 0 and 1 to obtain a

square matrix, called the reach ability matrix.

• Partition level.

• The construction of interpretative structural mod-

eling (ISM).

• MICMAC analysis. MICMAC is used to check

driving power and dependence power. Variables

have been grouped into four criteria known as Au-

tonomous, Linkage, Dependent and Driving / in-

dependent. The following is the meaning of the

four categories (Shahbandarzadeh and Haghighat,

2010): 1) Variable Autonomous. 2) Linkage Vari-

ables. 3) Dependent Variables. 4) Independent

Variables.

Table 1: Rule of Development SSIM.

Symb. Relationship between row(i)&column(j) element

V Barrier i lead to barrier j, not in reserve direction

A Barrier j lead to barrier i, not in reserve direction

X Barrier i and j lead to each other, in both direction

O Barrier i and j are unrelated

Naval Technology Development Strategy in the Integrated Fleet Weapon System for Supporting the Principal Task of Indonesian Navy

187

Figure 2: Sample on Reachability Matrix

2.6 Balanced Scorecard (BSC)

Balanced scorecard is a method developed to measure

every activity carried out by a company in order to re-

alize the goals of the company. Balanced scorecard is

a separate activity related to targeting, but then inte-

grated with the strategy management system. Strate-

gic management system is the process of formulating

and implementing strategies to realize the vision con-

tinuously and structured. Balanced scorecard is fur-

ther developed as a means to communicate from vari-

ous units within an organization. Balanced scorecard

is also developed as a tool for organizations to focus

on strategy management.

In matrix development, data collection, and data

analysis, BSC refer to four perspectives, namely:

a. Financial Perspective. In the ﬁnancial per-

spective, there are three aspects of the strategy im-

plemented by the company; a) revenue growth and a

combination of income owned by a business organi-

zation; b) decreased costs and increased productivity;

c) optimal use of assets, and investment strategies.

b. Customer Perspective (Customer). In this per-

spective, measurements are carried out with ﬁve main

aspects, likely : 1) Market share measurement. Mea-

surement of the size of the company’s market share.

2) Customer retention. Measurement is done by

knowing the percentage of business growth, with the

number of customers owned by the company. 3) Cus-

tomer acquisition. Measurement can be done through

the percentage of the number of additional customers.

4) Customer satisfaction. Measurement of the level

of customer satisfaction. 5) Customer proﬁtability.

Measurement of customer proﬁtability can be done

using Activity Based-Costing (ABC) techniques.

c. Internal Process. In this perspective, the com-

pany measures all activities carried out by the com-

pany, both managers and employees to create a prod-

uct, which can provide satisfaction to customers, and

shareholders. In this case, the company focuses on

three main business processes, namely: the innova-

tion process, the operating process, the post-sale pro-

cess.

d. Learning and Growth. Kaplan revealed the im-

portance of a business organization to pay attention

Figure 3: The Balanced Scorecard

Figure 4: Flowchart for Development Strategy of Integrated

Fleet Weapon System

to its employees, monitor employee welfare, and in-

crease employee knowledge, because with increasing

levels of employee knowledge, it will also increase

the ability of employees to participate in achieving re-

sults and company goals.

3 RESULT AND DISCUSSION

The research was started by data collection by in-

terviewing six expert personnel (E1;E2;E3;E4;E5;E6)

for the development of Integrated Fleet Weapon Sys-

tem (SSAT). After all data were collected, the data

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188

were categorized into external and internal analy-

sis. SWOT analysis was used in order to know the

strengths and weaknesses in the internal condition re-

garding SSAT development, as well as recognizing

the opportunities and threats.

3.1 Internal Factor Analysis

According to the respondent assessment result, there

were several internal factors which became the

strengths and weaknesses of technological mastery as

mentioned below.

Based on the table above, there were eleven points

in strength analysis factor and thirteen points for

weakness analysis factor which is identiﬁes in inter-

nal factor.

3.2 External Factor Analysis

The respondent assessment result showed that there

were some external factors which became the threats

and opportunities in technological mastery as men-

tioned below :

Based on the identiﬁcation from various internal

and external factors, the next step was arranged to be

factors of strategy. The existing internal and exter-

nal factors were combined to determine an alternative

for the strategy of navy posture development. In this

following table presented the strategies which were

formulated from the SWOT matrix.

The data from the table above, there were ﬁve

points of SO strategy and three points of ST strat-

egy for naval technological mastery, followed by six

points of WO strategy and one point of WT strategy.

They were compilated into ﬁfteen strategies for the

naval technological mastery.

3.3 Identiﬁcation of Priority and

Strategy Mapping

The arrangement of priority and strategy mapping

was started by creating hierarchy system between pre-

viously identiﬁed aspects. The creation of hierarchy

used the Interpretative Structural Modeling approach

method. This method aimed to plan the chosen strat-

egy to be described in the implementation plan ac-

cording to the hierarchical system.

• SSIM was the stage to determine the dominant

variables from the SWOT analysis result to know

the interrelation level between sub strategy in

maritime food development.

• Structural Self Interaction Matrix (SSIM).

• Reach ability Matrix (RM). Table xx of matrix

SSIM was made into the table of Reachability Ma-

trix (RM) by changing V, A, X, O into 1 and 0.

• ISM Framework Model to SSAT development

strategy. The data development result of SSIM

and RM were made into the sub strategy frame-

work which inﬂuenced the SSAT development

strategy

Structure of element above showed that WT-1

strategy was in priority 1, while strategy of ST-1 and

WO-5 was in priority 2, ST-3 strategy was in priority

3, also SO-1 and WO-1 strategy were in priority 4.

In priority 5, there were four strategies namely SO-

2, SO-3, SO-4, and WO-2. Strategy of WO-4 was in

priority 6, WO-3 and ST-2 strategy were in priority 7,

SO-5 strategy was in priority 8 and WO-6 in priority

3.4 Strategy Mapping

Strategy mapping presented a portrayal of how each

work could support the whole strategic achievement

of the organization. Strategy mapping helped the or-

ganization to especially visualize what was needed to

do and support the development strategy of integrated

ﬂeet weapon system.

Strategy mapping would ease the organization ac-

tors to monitor strategy implementation development.

The result from the analysis of strategy mapping de-

sign correlated Balanced Scorecard with the designed

strategy which was the development if integrated ﬂeet

weapon system.

Financial perspective consisted of one strategy

goal to improve defense budget. Internal process per-

spective consisted of nine strategy goals as follows:

1) Big Data Analytic Mastery; 2) Technology Trans-

ferred; 3) Cyber Infrastructure; 4) Autonomous Sys-

tem; 5) Nano Technology Development; 6) Stealth

Technology; 7) Diplomacy Ability; 8) Energy Man-

agement; 9) Technology Development by National In-

dustry. Learning and Growth perspective was made

of four strategy goals namely 1) Blue Print is Real-

ized; 2) Cyber Ability; 3) Cyber and Electronic War-

fare Ability; 4) New Technology for Weapon System.

Customer aspect consisted of one strategy goal, High

Value Research.

4 CONCLUSION

Development of technology affects every dimension

of human life, including the defense and security as-

pects. Along with the strategic position in the trade

Naval Technology Development Strategy in the Integrated Fleet Weapon System for Supporting the Principal Task of Indonesian Navy

189

Table 2: Internal Factor Analysis

Strength Weakness

1. Able to develop Nano-compositetechnology

2. Able to develop unmanned system.

3. Had cyber infrastructure in theheadquarter

4. Z generation who were familiarwith computation

5. Technology transfer cooperationwho opened

theopportunity for technological mastery.

6. Had maintenance system untilorganic stage

7. There was a Committee of DefenseIndustry

Policy (KKIP) as the basic of independent

SSAT technological development

8. Organization managerial which wassolid enough

9. Presence of the blueprint of MEF 2024.

10. As the biggest organization in Southeast Asia

11. Logistic supporting system whichwas

systematicand well-structured from the organization

1. Limited stealth aircraft of SSAT

2. Absence of electro molecular system in SSAT.

3. Nanocomposite technology which was still in

thestage of prototype.

4. The Big Data Analysis technologywhich was

stillhack-prone.

5. Partially data analysis.

6. Absence of integrated energy management

systemyet.

7. Hack-prone in the Major Command level

8. Electronic warfare technology which was

stilllimited to generation

9. Absence of the use of human

augmentationtechnology

10.Limited manufacturing tools.

11. Technology development was dependent to

importpolicy.

12. Budget strength was below the standard

(2% of GDP).

13.Research and development were not in line

with KKIP policy and defense industry

Table 3: Eksternal Factor Analysis

Threat Opportunity

1. 1.Dependent to unrenewable resources

2.Fund for research and development waslimited

3.Threat of cyber-attack.

4.Threat of data hack.

5.Natural resources as the target ofmany countries.

6.Threat as the weapon market.

7.Radicalism and communism threat.

8.Threat as a trafﬁc when there wasa conﬂict

between countries.Social gap.

1. 1. National economy growth which was above global

economy growth.

2. Abundant stock of alternative energy.

3. Low wage level

4. There was a legal protection of KKIPfor defense

industry.

5. Vast development of internet

6. Internet system which supported the decision-making

time

7. PMDpolicy of the government

8. As the biggest democratic countryBonus of

population demographic

Table 4: SWOT matrix of Strategy Formulation

Strategy (SO) Strategy (ST)

1. Nano technology development which reached production

stage. 2. Development of unmanned system based on KKIP

to production level 3. Development of cyber infrastructure to

the level of Major Command. 4. Implementation of technology

transfer to the level of TOK, TOKH, TOP 5. Development of

blue print that was suitable with naval technological mastery of

2030 and PMD policy

1. Implementation management of energy and development of

renewable resources 2. Optimization of the ability of Z gen-

eration in the system of information and cyber development 3.

Improvement of the diplomacy ability as the balance of power in

Asia Paciﬁc

Strategy (WO) Strategy (WT)

1. Development of unmanned technology with KKIP and Inhan

2. Integration of big data analytics to the high level 3. Improving

electronic warfare ability to the ﬁfth level. 4. Upgrade of manu-

facturing tools. 5. Development of technology by focusing on

domestic procurement. 6. Doing a research which was suitable

with KKIP policy and defense industry.

1. Improvement of standard defense budget strength (2% GDP)

gradually.

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Table 5: Compilation of Naval Technology for Weapon System Strategy

Code Sub Strategy

SO-1 Development of Nano-technology development to production stage

SO-2 Development of unmanned system based on KKIP to production level.

SO-3 Development of cyber infrastructure to the level of Major Command

SO-4 Implementation of technology transfer to the level of TOK, TOKH, TOP.

SO-5 Development of blue print that was suitable with naval technological mastery of 2030 and PMD policy

ST-1 Implementation management of energy and development of renewable resources

ST-2 Optimization of the ability of Z generation in the system of information and cyber development

ST-3 Improvement of the diplomacy ability as the balance of power in Asia Paciﬁc

WO-1 Development of unmanned technology with KKIP and Inhan

WO-2 Integration of big data analytics to the high level

WO-3 Improving electronic warfare ability to the ﬁfth level.

WO-4 Upgrade of manufacturing tools.

WO-5 Development of technology by focusing on domestic procurement.

WO-6 Doing a research which was suitable with KKIP policy and defense industry.

WT-1 Improvement of standard defense budget strength (2% GDP) gradually.

Figure 5: Structural Self Interaction Matrix

Naval Technology Development Strategy in the Integrated Fleet Weapon System for Supporting the Principal Task of Indonesian Navy

191

Figure 6: Reach-ability Matrix

Figure 7: Conical Matrix

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Figure 8: Strategy Mapping of Balanced Scorecard from Weapon System Development.(Source: FGD from Expert)

and sea transportation route, naval technological-

based maritime management strategy was needed spe-

cially to develop the integrated ﬂeet weapon system

(SSAT) of the Indonesian Navy. Naval technology

development strategy in the integrated ﬂeet weapon

system (SSAT) which was based on naval technol-

ogy was formulated into a strategic management plan

which was based on ﬁve points of SO strategy, three

points of ST strategy, six points of WO strategy and

one point of WT strategy that made in ﬁfteen stages

of strategy in the naval technological mastery.

Hierarchical structure in sub strategy element

showed that WT-1 strategy was in priority 1. Besides,

strategy of ST-1 and WO-5 was in priority 2, ST-3

strategy was in priority 3, and SO-1 and WO-1 strat-

egy were in priority 4. There were four strategies in

priority 5 namely SO-2, SO-3, SO-4, and WO-2. Pri-

ority 6 had Strategy of WO-4, WO-3 and ST-2 strat-

egy were in priority 7, SO-5 strategy was in priority 8

and WO-6 in priority 9.

The strategy mapping created in the Balanced

Scorecard structure presented that ﬁnancial perspec-

tive was made of one strategy target: improvement of

defense budget. Nine strategy targets were in the in-

ternal process perspective, and they were 1) Big Data

Analytic Mastery; 2) Technology Transferred; 3) Cy-

ber Infrastructure; 4) Autonomous System; 5) Nano

Technology Development; 6) Stealth Technology; 7)

Diplomacy Ability; 8) Energy Management; 9) Tech-

nology Development by National Industry. Learn-

ing and Growth perspective was made of four strat-

egy goals namely 1) Blue Print is Realized; 2) Cy-

ber Ability; 3) Cyber and Electronic Warfare Ability;

4) New Technology for Weapon System. In addition,

customer aspect consisted of one strategy goal, High

Value Research.

5 FUTURE WORK

In this research, the strategy implementation needs

to be continued by giving weight on sub strategy.

Besides, estimation of implementation time must be

added to the planning of strategy implementation.

Further development is needed by the making of time-

line and road map as the implementation of continu-

ing strategy.

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