The company at hand is Abu Dhabi Oil Company. This company is located in the United Arab Emirates. It was established in 1999 through a joint form of stocks purchases, so that, in the long run, its establishment was focused at maintaining and focusing on the already developed energy sector in the United Arab Emirates oil industry. The core responsibility that the Company was mandated to undertake was aimed at portraying the level of accountability, which was previously held by the Abu Dhabi National Oil Company. This company is an industry (Takreer, 2009).
Abu Dhabi Oil Company is mainly focused on operations that include the refining of crude oil and condensate, distribution of petroleum products, and an extensive manufacture of granulated sulfur for both the local and international market, at large. The Company has employed more than 100 employees and operates from the Middle East (Takreer, 2009).
Identification of Challenges that May Result from Adoption of Information Systems
Working force Downsizing: it is safe to indicate that the modern business environment relies entirely on the maximization of internet based technological advances, as well as web enabled information fundamental systems, so as to achieve its desired objectives. The major objective of any company is mostly depicted with the organization need of maximizing profits, while at the same time, minimizing losses altogether (Laudon, 2010).
It is also fair to stipulate that when a network-based information system is put in place. It, thus, means that the benefiting firm is positioned at an advantaged position, which will facilitate further developments attributed to business strategies, processes, as well as operational organization structures.
Having mentioned all these requirements, it will, therefore, be implicated that with the introduction of Information systems, most of works which were previously conducted by the underlying human force will have to be considerably minimized. This is because of the automation of the once manual processes. Human form of intelligence will be replaced by much anticipated computer intelligence which is considered much superior and effective altogether.
In this case, Abu Dhabi Oil Company will, for instance, be forced to cut down on the number of employees closely linked with distribution of the final products in a bid to cut the supply chain expenses incurred. It is expected that with the minimization of the expenses, computer intelligence should have taken positive effect, making crucial decisions pertain this matter altogether. As much as the process of cutting down on jobs seems easier, it is actually faced with criticism from both the government, as well as the surrounding community, at large.
It is well known that by creation of employment, any company acts to create rather smoother rapport with the surrounding business environment: positive Corporate Social Responsibility, and, thus, by acting against this expectation, it will, thus, not be supported by the existing community. It is also known that there are expansive policies which are always formulated by the governing authority to guide and protect employees from unfair forms of losing jobs. In this case, the company will find it hard to implement the advance technological information that is so much needed in decision-making processes.
Difficulty in Implementing Management Information Systems: the process which is involved in setting, designing, implementing and maintaining an effective management system in the company, and will rather be costly and, thus, consume a lot of resources, which were previously not meant for the project. It is always the desire for most companies to rely on the actual budgets that were initially set, and abides by it, in order to meet their respective financial obligations, as well as objectives in that matter (Lotainn, 2011).
Unnecessary costs incurred, while conducting the operations of the firm, are termed as miscellaneous altogether. It, therefore, takes well-formulated forms of budgets for companies, in order to execute the processes involved in the implementation of management information system. For instance, Abu Dhabi Oil Company was initially established with a core purpose of serving the local energy need, as well as for exportation, in that sense that most of its entire operation was formulated, based on the traditional manual approach. In order to remain relevant in the market, and, thus, increase its proficiency level needed, it needs to implement these changes by allocating budgets for various projects associated with the positive information systems at first.
Goals to Be Established
Abu Dhabi Oil Company is a manufacturing company, and, therefore, the implementation of the information system will affect the manufacturing processes altogether. In order to conduct the implementation processes, then it will be perfectly safe to formulate goals, which, when adhered to, will lead to effective built-in processes as a whole.
The first goal, which will act towards obtaining positive results, is to make sure that the company sets aside enough amounts of resources needed to carry out the deployment requirement. It should be noted that the processes involved with information system establishment is expensive in designing, implementing and maintaining, as a whole. It is, therefore, wise for the financial department of the Abu Dhabi Oil Company, to set aside the substantial amount of resources for effective implementation processes.
It is also safe to implicate the fact that the resources that are to be set aside can further be differentiated to include all slots of the process required, that is to say, that financial commitments would be allocated separately to the processes of designing, implementing, as well as maintaining the information system as a whole (Gosse, 2010).
The aforementioned company being a multi-billion industry means that the processes of formulating and establishing the budget intended for the purpose of embracing effective information system is supposed to be based on a short time frame, so that the money resources meant for the project can be accumulated at a period ranging between 6 and 12 months. The profits recorded by the firm from the proceeds of oil are far more, and can accommodate the development goal at hand.
The second goal involves itself with the formulation of relevant data which can be used by management to measure the effectiveness of the information system that is expected to be deployed altogether. The purpose of formulating this particular goal acts towards the establishing of the real business value, which the resultant implementation process will impact on the firm. It will be extremely illogical for the firm to precede with implementing the processes, then later be termed as having failed, in the end. The introduction of effective management information system is aimed at fostering the revenue proceeds by way of enhancing quick platforms, for which crucial decisions concerning the supply chain framework are made generally.
The process involved in the determination of both the effectiveness and efficiency of the aforementioned information system requires the firm to seek services of qualified consultants. It, therefore, needs more time, since there are several procedures involved in the same, such as a collection of data, analyzing of the collected data and formulation of the precise data in order to produce relevant forms of results to those personnel involved in these cases (Pant, & Hsu, 1995).
According to the technical expertise, as well as the amount of resources available within the company, it will be safe to postulate a timescale of about 1 year. Meaning that all processes involved in the collection, evaluation and analysis of relevant data can be outsourced, and findings presented to the management for the effective use in the decision-making processes pertaining to the issues at hand. The management of the Abu Dhabi Oil Company is well structured to allow easier application of these, rather than technical processes involved.
In this scenario, it will be safe to put up measures which will facilitate the smooth transition required from the traditional approach model to a much more advanced approach that is technologically based, and among those measures, which are to be put in place, is defining and outsourcing the most qualified consultants to deal with the matter at hand much more effectively and with professionalism (O’Brien, 1999). Qualified consultant personnel are placed at better positions to produce quality amount of information altogether.
Factors that Will Enhance the Achievement of the Goals
The goals to be achieved by the Abu Dhabi Oil Company comprise of the financial obligation goal, which is mainly meant to provide the application of the management information systems with the financial commitments it requires. The other goal involves itself with extensive forms of research, which is expected to be conducted, in order to determine both the efficiency and effectiveness of the information system to deploy as a whole.
In order to facilitate aforementioned goals, facets, such as training of the entire management staff, are expected to be provided in a lengthy platform altogether. The training program, which may take forms of workshops and seminars, is to be used for enlightening the staff about the need to transform the existing decision channels by replacing them (traditional models) with modern models, for which to conduct business strategies as whole. Measures to be put in place in this strategy involve making sure that all employees are prepared psychologically, in order to avoid problems that may result from phenomenon, such as the employee mistrust. Trainings should be allocated a minimum of 3 months for effectiveness.
Another facet which Abu Dhabi can use, in order to facilitate an easier transformation of the implementation processes involved, is by making sure that the business environment is well set to facilitate the easier allocation of funds required as a whole. The measure taken involve putting in place, involve preparing shareholders psychologically, so that dividends achieved are not disbursed, but rather retained to conduct the implementation process at hand.
The maximum amount of time that can be allocated for this particular matter should not fall back to 3 months, in order to achieve fair results altogether.
The final measure that can be put in place, in order to facilitate the smooth operation of the business goals established focuses on the need to design the organizational structure in a way, which will foster easier application processes. The measure to be taken involves the easier delegation of both duties and responsibilities, so that every employee is held accountable, in case a failure is encountered on the part of the information system, which has been implemented.
All in all, it is perfectly reasonable to indicate that Abu Dhabi Oil Company is positioned at much safer position, for which it can use to conduct its daily manufacturing processes effectively and efficiently in that matter, so that the newly implemented information system is perceived to portray positive impacts altogether (Killuian, 2009).