5. Case Objective - Globalizing Your IS This case illustrates how BP’s CIO led his enterprise via his vision and how he has structured his organization to sell that vision to the very independent-thinking business units.
10. BP plc "BP" derives from British Petroleum British-based Global Energy Company BP is the United Kingdom's Largest Corporation 3rd Largest Energy Company 4th Largest Company in the world Head Office in St James's, City of Westminster, London.
12. Core Values We are innovative, behaving in a way which takes full advantage of the rapid development and application of know-how, including new ideas, processes and knowledge. At the heart of BP is a focus on performance that earns us the right to grow. Performance Innovative Progressive Green We will be a company that never stands still, a company with a dynamic leadership continually searching for new ideas and better ways of doing things, a company that is open, inclusive and diverse. We will be an environmental leader, demonstrating social responsibility in all that we do and a concern for the environment in its broadest sense.
21. transactions and information exchange are becoming faster, cheaper, and more pervasiveIndustry Consolidation Shift in Consumption Oil to Natural Gas
22. Business Structure Organization Structure 8-Level Hierarchy (10 yrs ago) Simplified (2006) Executive Committees(Business Stream) 150 Business Units in 100 countries Separate balance sheets & performance criteria Accountability & free reign of operations HQ convinces Business Units of the wisdom of BP-wide practices Peer Groups (decisions) Networks of business units in a business stream Federations Vehicle for sharing knowledge among peers Where businesses must justify the resources they seek
25. John Leggate – Group VP Nicknamed "Shiny Brains" “The corollary to speed of uptake is the speed at which companies and industries can be left behind” Its important to be the first adopter of technology and to put to work for business.
28. Digital Business (DB) 4 Central Groups Which deliver overarching strategy Enterprise infrastructure and projects Policies and standards Support Differentiated Service Offerings driven by the business streams DB Strategy and Chief of Staff DB Chief Technology Office (CTO) DB Projects DB Operations
29. Digital Business (DB) Mission Need to reconcile business unit independence with overarching HQ strategy (“speed matters”) Strong core values and operational excellence How can IT be a value-add? Vision Technology provider to strategy-creation role Strategy, architecture, differentiated services based on business streams (processes) Living on the Web Socializing technical directions (adoption) Going forward: Foster learning and focus on explanation (assimilation)
30. Team Skills – A Broad Portfolio critical when a leadership team is not only creating the future but is also responsible for selling it
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32. The paradox of business simplification Is deciding where to seek commonality and standards and … … where to seek flexibility and innovation.
40. Going Forward Fostering Learning Too much prompting is needed to get BP employees to look at what others within BP are doing elsewhere in the world. Becoming a connected corporation helps, but … … the key is behavioraland cultural change. The Major Question is “How do we get 100,000 people to fully utilize BP’s resources to change our underlying business?
41. Going Forward Exploitation The real leverage comes from the value a new system opens up. Adoptionand exploitationof the new technology and systems become a major challenge but a necessary component to realizing the valueof the business transformation. Investing a lot of effort in changing management to train and influence employees to acceptand use the new technology.
43. Transformation into a Digital Business With a leaner IT budget, BP has used the Internet technology to move forward – by both looking inward and outward – connecting its employees with each other, and the company with its customers, suppliers, and the wide global community.
44. Transformational Examples Company operations became more mobile, more connected, and more productive: Online Knowledge Mgmt - In the North Sea, all information related to infrastructure capabilities and specifications (platforms, pipelines, terminals, etc.) is posted on the Web; Fiber-optic cables - to provide media-rich, data-intensive interaction between platforms and field operations, pipeline operations, and on-shore support. 4D Seismic Technology - to support sub-surface operation.
45. Thank you Takeaway The digital business experience was a journey of discovery, a learn-do-learn model.
Editor's Notes
creating a vision of the future and selling it
In business sinceAmoco 1889ARCO 1866BP 1909 (first oil discovered in 1908)BP Amoco 1998
The glues for BP’s decentralized business approach are strongly shared core values and operational excellence
E.g. BP has externalized its human resource (HR) processes through the use of an external provider, Exult.Exult integrated the numerous databases and is managing the processes via the web.BP is handing processes to service providers to consolidate, simplify, and then operate
Each team creates “the framework for conversation” with the business unitsabout architecture for a specific area, such as wireless, Web Services, and so on.
For example, BP had 36 systems reporting health and safety problems in 1999. Once the health and safety community knew this fact, it decided how to decrease the number.The same is happening with the 100 maintenance management systems.Similar communities handle major system upgrades.
