Abstract
The paper is focused on the evaluation of the IT global strategies of ADMA-OPCO. The innovations in the sphere of oil and gas segment are essential as the company is experiencing rapid growth, and thus, should deal with it appropriately. ITD allows the corporation to manage the growth effectively, and, in addition, contributes to better service delivery and improvement of the working process. The statistics and data presented in the paper contribute to better involvement into the issue and provide some insights regarding the effectiveness of the implemented approaches.
IT technologies seem to be an essential component in the development of the company, and thus, receive the priority. The digital era and globalization influence the way the companies function. The paper aims to investigate whether the implementation of IT strategies positively affects the work of the ADMA-OPCO.
Current Position of ADMA-OPCO
ADMA-OPCO is a state-owned enterprise that is responsible for the exploration and development of oil and gas sector. Over the past few years, the company has gained a positive reputation in the oil and gas industry.
Operations/activities. Becoming a fully state-owned company in 1971, ADMA-OPCO has since experienced impressive growth, significantly investing in oil production. Today the company has 11 subsidiaries, covering all areas of the oil and gas industry, including drilling (onshore and offshore), technical support operations in the Gulf, transport tankers, distribution of oil and oil products, and the production of fertilizers (Operations & production, 2015).
Vision. The ADMA-OPCO aims to become a premier company in terms of gas and oil production. Moreover, their vision is centered on reaching the highest effectiveness, innovation of technologies, and maximizes value.
Mission. The fundamental mission is to develop oil and gas sector and improve cost-effectiveness standard. In addition, the company aims to maintain the highest HSE.
Objectives. Objectives of the company are closely related to its mission. Automating management, development of online systems of monitoring, fostering the development through innovations and IT technologies are the primary objectives of the company.
ITD Implementation at ADMA-OPCO
The expansion of the company demands the improvement and innovations of the approaches that are used by ADMA-OPCO. The business transforms and becomes complex, and thus, the implementation of the IT strategies seems to be essential for consideration and future success of the corporation. The primary goal of the company is to improve the production and to reach the index of 1 million of barrels production every day. The company implements ITD to foster the development and improve collaboration.
The Key IT Strategic Challenges
The fundamental purpose of the IT strategies of ADMA-OPCO is to provide the automation of the processes. The primary concern is to make a transition from the service provider to the type of business that creates value. The IT strategies face challenges constantly, and thus, the company needs to make sure that their strategies are capable not only to overcome difficulties but to reach success as well. The fundamental challenge that IT strategies are facing is the business growth.
Scope and Scale of ADMA-OPCO
There are six primary principles that can be considered as guiding powers for the ADMA-OPCO. First and foremost, in terms of standardization, the company aims to use hard and software beneficially, creates centralized management as well as integrated infrastructure. Business process performance is another concern of the company and in order to foster development and direct the business process towards improvement, ADMA-OPCO creates applications, supports human resources, and improves governance and support model (Albadri, 2013).
As for the infrastructure, the pivotal strategies involve economic development, partnership, and the provision of the informational security. Another component that is essential for the corporation is innovations (Information technology strategy 2014-2018, 2014).
ADMA-OPCO has already implemented video conferences that complement business meetings. The managers realize the significance of changes, especially in the digital era. Moreover, the company appreciates the usage of personal gadgets by the workers in order to increase the effectiveness. Furthermore, the company makes an accent on the strategic partnership and sustainability.
Information Technology Division and Its Activities
The new approaches in the sphere of IT consequently lead to the improvement of the transparency of the service delivery. Moreover, it affects the cost and production standards beneficially. Information technology division provides better analysis and understanding of functioning of five major components; among them are the following ones, namely
- Financial performance;
- Project performance;
- User satisfaction;
- Operational performance;
- Information security.
The question arises whether the ITD is an effective tool that improves the work of the company. The reduction of technology costs was the pivotal objective of the implementation of the ITD. It should be highlighted that the strategy worked, and the finance was stabilized in 2008 (Hults, Thurber, & Victor, 2012). The simplifying of the IT infrastructure received the primary concern.
To streamline the work in ADMA-OPCO, the decision was made to decrease the number of applications and make the application usable across the whole company on all the levels of management (Albadri, 2013). The company uses costs to improve future projects, and thus, is one of the most successful across the globe. The work of the ITD is possible due to the proper functioning of six components, namely:
- ITCST (IT Client ServicesTeam);
- ISPT (IS Planning Team);
- BST (Business Solutions Team);
- ITIT (IT Infrastructure Team);
- CSIAT (Cyber Security and Information Assurance Team);
- TT (Telecommunication Team).
Business model
The company is guided by the service provision model. Delivery is considered to be a complicated process that is influenced by a number of factors, such as service, business process, support, and administration. The model can be divided in three major groups, namely demand, control, and supply. The section demand involves requirements, success factors, business process, and IT scoping.
The area of control is significant, and thus, involves outsource, governance process, financial management, and KPI (Information technology strategy 2014-2018, 2014). In addition, the section of supply is divided into services, enterprise architecture, administration, and support.
Impact of the ITD on ADMA-OPCO and Sustainability
Informational technology division plays an essential role in ADMA-OPCO. The implementation of the new technologies in the sphere of IT provides the company with a crucial possibility to maximize effectiveness, predict the results of the implemented technologies on the stage of research. It gives an opportunity to obtain a maximum result with minimum expenses.
IT industry gives a possibility to make accurate calculations and assumptions and eliminate the risks. Moreover, it is impossible to foster effectiveness without the implementation of the innovations and IT technologies. The quality improved significantly. Thus, the IT industry is a progressive approach that allows successful planning that contributes to a better outcome.
Current IT strategic gaps
The current IT strategic gap is the difference between current operation and increasing demand. However, it should be stressed that the company aims to react to the problems instantly, and thus, is working on the improvement in managing the increasing demand.
IT Strategy in ADMA-OPCO
IT strategy in ADMA-OPCO involves organization of the informational environment in order to provide comfortable access to data, making sure that the system is safe and reliable, and improvement of the communication process.
Purpose of Integration
The purpose of the integration of ADMA-OPCO to the implementation of the IT strategies in the working process is understandable because the company realizes the significance of innovations, especially in the digital era. It is impossible to coordinate the working process without IT technologies. Moreover, the business intelligence seems to be a fundamental factor because it aims to facilitate and structure the information flood.
Role of the ITD Function
The role of the ITD function should not be undervalued as it provides the business with an opportunity to use modern technologies, innovations, and create value. The primary role is to support the functioning of every unit of the company.
Primary Role of the ITD Executive
The primary role of the ITD executive is to ensure that the system functions appropriately and to adjust it to the current needs of the company.
Major IT Project: Performance Criteria
All the projects that are created for the modern customers are complex. In order to ensure that the work is high quality, it is essential to organize the work in the dimension of effective and phased dimension. The work that is related to the customers gives an opportunity to check the product or service in accordance with the desire of the client. The monitoring provides a company with a possibility to coordinate the work into the needed direction.
As a result, the customer will be satisfied. Because of the difficulties and challenges that the company faces, the process of monitoring is possible only due to the IT technologies. IT projects give an opportunity to discover the risks and eliminate them. In addition, such projects help the organization to function in accordance with high-quality standards.
Critical service availability
The development of the Internet gave an opportunity to bring the companies closer to their customers. ADMA-OPCO aims to provide its clients with necessary information via the web and, in addition, the clients have an opportunity to use e-business and e-payment.
Financial Criteria Capital Expenditure (CAPEX) and Operation Expenditure (OPEX)
The operation budget (OPEC) is relatively stable, whereas CAPEX changes. However, in 2014 and 2015, there was a tendency to increase. According to the researchers, the index of CAPEX is likely to increase as well, in comparison to 2016.
HSE near-miss report
The company deals with the near-miss reports appropriately. The employees are respected in the organization, and that is, aim to eliminate the risks related to injuries.
BSA Behavioral Safety Audit
BSA is centered on promoting safe behavior in the workplace and the reduction of incidents that lead to injuries. ADMA-OPCO appreciates and respects the employees, and thus, aims to provide everyone with a secure workplace (Safety, 2015). The safety team maintains HSE performance, provides every worker with support, and conducts audits in order to investigate incidents and eliminate the risks in future.
Localization hiring new local employees
ADMA-OPCO aims to attract local employees. According to the statistics, the number of UAE nationals who work for the company constantly increases since 2008, whereas the number of expatriates decreases.
Triggers for Developing IS Applications
The major reason for the fact that the applications were developed was the desire to streamline the working process. Applications facilitate the communication across the organization as well as improve the work of the company.
Top Management Participation in IS/IT Planning
IT planning is essential for the work to be successful as it allows better control and eliminates the risks.
- The budget is announced by CEO on May;
- Every team starts gaining the IT data for the following year;
- Division management needs to approve the requirement and sent to Finance Division, where the project needs to be approved;
- Finance Division sends the project to ISP team of ITD, after approving it;
- ISP consolidates the division requirements and checks the requirements concerning the budget;
- Next year the ISP form is to be filled and send to IT for procurement.
User Participation in IS/IT Planning
The participation of the user in IS/IT Planning is essential as it will provide the understanding of the support improvement and regulation of the business performance.
IS Executive Participation in Business Planning
The participation of the IS Executive plays a significant role in the business planning as it contributes to better control over the process and ability to coordinate results.
Assessment of New Technologies
It is of paramount importance to highlight that ITD is functioning due to new technologies and innovations, and thus, should be assessed in order to eliminate risks and be able to draw appropriate conclusions regarding mastering the process and improvement of the system. The assessment should involve the evaluation of the strategies, goals, and objectives and the way new technologies complement it and whether they contribute to the development.
Status of IS Executive
Mr. Saker stated that IT manager should be active and put efforts to ensure on time delivery of innovations.
Current Stage of the Organization’s Maturity of the Strategic Integration
According to the model, provided by King and Teo, ADMA-OPCO is fully integrated because the business strategies are intertwined with IT technologies and strategic planning (Chew & Gottschalk, 2009).
Current stage of the IS/IT growth
According to Nolan’s model of the IT growth, ADMA-OPCO is currently operating on the fourth stage, namely integration (Albadri, 2012). This conclusion can be drawn by taking a closer look at the fundamental principles of the stage, namely the increase in control by the clients, a variety of data, information is organized by IT technologies, on-line database, and high standards.
Strategic Alignment of the organization in relation to Luftman Strategic Alignment Maturity Model
The organization develops in accordance with a variety of strategies. The strategic alignment of the company involves the performance of the following stages, namely:
- Initial process;
- Committed process;
- Established process
- Improved process;
- Optimized process.
ADMA-OPCO aims to optimize all the aspects of the working process (Caravelli, 2011).
Organization’s Strategic IT Resources and Sourcing Strategy
The sourcing strategy is focused on the improvement of the system that will increase the satisfaction of the clients. In addition, the information is believed to be an effective tool in reaching the goals. The strategic IT resources are people. The company values the employees and provides them with educational programs for them to foster innovations and develop IT technologies.
The organization should work on improvement of the customer-centered approach and develop the system according to the client’s and employees’ feedback.
Literature Review
Information Technology Strategy 2014-2018 provides a detailed analysis of the ITD strategies and the ways ADMA-OPCO implements them to improve the working process. Moreover, the report presents relevant data that provide with an opportunity to evaluate the role of IT technologies for the company’s development.
Oil and Governance: State-Owned Enterprises and the World Energy Supply is focused on discovering the world of the oil industry and the place of ADMA-OPCO in it (Hults, Thurber, & Victor, 2012). Moreover, the book provides some insights concerning the way the company uses IT technologies to reach goals and missions.
The issue regarding the information systems and the role of the applications is the primary concern of the book Information Systems Applications in the Arab Education Sector. It provides a clear understanding of current trends and approaches that are used by the company today (Albadri, 2013).
It was essential to evaluate the growth of the company in order to understand whether the approaches and methods used by ADMA-OPCO help the organization to reach success. The book Information Technology Strategy and Management contributed to the evaluation of the level of development. The presented data helped to investigate this issue.
References
Albadri, F. (2012). Cases on enterprise information systems and implementation stages: Learning from the Gulf. Hershey, PA: Business Science Reference.
Albadri, F. (2013). Information systems applications in the Arab education sector. Hershey, PA: Information Science Reference.
Caravelli, J. (2011). Beyond sand and oil: The nuclear Middle East. Santa Barbara, CA: Praeger Security International.
Chew, E., & Gottschalk, P. (2009). Information technology strategy and management: Best practices. Hershey, PA: Information Science Reference.
Hults, D., Thurber, M., & Victor, D. (2012). Oil and governance: State-owned enterprises and the world energy supply. Cambridge, UK: Cambridge University Press.
Information technology strategy 2014-2018 (Rep.). (2014). ADMA-OPCO.
Operations & production. (2015). Web.
Safety. (2015). Web.