Revitalizing IT-Based Enterprises: Uncovering Innovative Strategies for Performance Enhancement via Partial Adjustment Valuation

In general, many banks have not fully optimized their IT-based investment efforts, particularly when anticipating gradual changes or adjustments in specific financial variables over time. This approach is primarily employed to assess the valuation of assets, securities, or companies. The primary data source for this study comprised Annual Reports from three prominent Indonesian banking institutions: BNI, Mandiri, and BRI, spanning the period from 2006 to 2021. The percentage values obtained for these banks are as follows: BNI at 30%, Mandiri at 25%, and BRI at 21%. Combining the percentages for these three banks, the overall percentages are 25% for BNI, 21% for BRI, and 30% for Mandiri. Conversely, the average percentages for these institutions are as follows: BNI at 75%, BRI at 63%, and Mandiri at 90%. Based on these findings, companies can enhance their performance by evaluating their IT investments and aligning their expectations with the future value of IT. Essentially, the improvement in performance for banking institutions can continue to rise without the need for additional capital expenditures, although income may increase without necessarily reaching the expected levels. Consequently, businesses must optimize the value of IT in accordance with their strategic plans, considering factors such as equity liquidity, minimum wages, labor costs, capital expenditure, and income.