Bp business and information strategy alignment

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Evaluating British Petroleum (BP)'s Enterprise Information Assets for business goals attainment using Information Systems Strategy triangle

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Bp business and information strategy alignment

  1. 1. Wee Kim Wee School of Communication and Information CI6228 – Managing Information Systems“Evaluating British Petroleum (BP)’s Enterprise Information Assets forbusiness goals attainment using Information System Strategy triangle” Submitted By ThangaveluMuthuKumaar (G1101765E) AjaiLoganathan Singh (G1101834E)
  2. 2. Table of ContentsIntroduction: ........................................................................................................................................... 3British Petroleum - Overview .................................................................................................................. 3 2.2 Reason for Choosing BP ................................................................................................................ 4Theoretical frameworks and reasons for choice .................................................................................... 5 3.1 Information System Strategy Triangle framework........................................................................ 6 3.2 Hypercompetition Framework...................................................................................................... 7 3.3 IT Value Chain model .................................................................................................................... 7Related Frameworks available in aligning strategies .............................................................................. 8Applying frameworks in BP ..................................................................................................................... 8 5.1 Hypercompetition framework ...................................................................................................... 9 5.1.1 Strategic soothsaying ............................................................................................................. 9 Buy, not build .................................................................................................................................. 9 Selective outsourcing ...................................................................................................................... 9 Strategy to manage outsourcing ................................................................................................... 10 Technology implementation in BP - Evolution of a dedicated IT stack......................................... 10 5.1.2 Positioning for speed ........................................................................................................... 14 Failure to leverage Social Media during Crisis Management........................................................ 14Research findings .................................................................................................................................. 17Lessons Learnt....................................................................................................................................... 18Conclusion ............................................................................................................................................. 19Appendix ............................................................................................................................................... 21
  3. 3. Abstract:The study analyses the information systems and technology implemented in BritishPetroleum (BP) from a business perspective. The key success in technology transformationfor any organization lies in the proper alignment between Information Systems and BusinessStrategies. The objective of this study is to analyse BP‟s business strategy using HyperCompetition model;using internal Value Chain model created by BP to understand IToutsourcing strategy and tracing enterprise technology implementations evolvedin BritishPetroleum over the years. 1. Introduction:The essence of survival for an organization is to gain competitive and strategic advantagewith every move to differentiate and serve the customers better. With technologyadvancements in the recent past includes increase in processing power of computers, datastorage capacity of servers and robust network connectivity; enterprises have realized IT tobe an important business component and integrated in their organizational processes.Understanding IT to be a key driver in organization growth and enabler of businessprocesses, there has been an increased thrust in organizations to leveragevalue intheirinvestment in technology. The success is usually determined by the alignment between theInformation System (IS) and organizational planning, that is attained when general managersand technical personnel are able to work in collaboration. 2. British Petroleum - OverviewBP was an Anglo-Persian company involved in exploiting the discovery of oil forcommercial purpose in Iran in 1909. It was then changed to Anglo-Iranian Co and later toBritish Petroleum in 1954. BP expanded its business towards petrochemical industries in
  4. 4. 1947, followed by major discovery of oil wells in Alaska and North Sea. Around 1970, BPdiversified its functions into new areas including computer software, coal and other minerals(Hollier, 1992).2.1Understanding BP’s Business and Organizational structureBritish Petroleum (BP) is the fourth largest oil and gas company in the world. They areinvolved in both B2B (Business to Business) and B2C (Business to Consumer) markets withcustomer base in around 70 countries. Their major end products are petrol, diesel, lubricants,maritime and aviation fuel, gas for industrial consumers and bottled gas. BP‟s major retailbrands are BP Connect, BP Express, BP Shop, Castrol, Air BP and BP Shipping. Shell,Chevron, Exxon are BP‟s top competitors.Upstream & Downstream model:BP core operations involve exploration, production andprocessing in its upstream model and refining, marketing and distributing energy in thedownstream model. A vertical-integration management style is adopted in BP. Apart fromthese distinct divisions, a fourth division namely Strategy and Integration which hostsbusiness functions Human Resource (HR), Information Technology (IT), Finance andTechnology and ensures integration among the core three divisions and functions. In 2010,organizational strategic realignment in BP was done by the Chief Executive, Bob Dudley inExploration and Production division after considering the competitive market.2.2 Reason for Choosing BPOver the years, many organizations had changed their existing information systems due toadvancement in technology, overspending of IT budget and overhead in maintenance. Theincrease in thrust in leveraging IS assets towards their growth has led to Strategic InformationSystems Planning (SISP) (Pollack, 2010). As stated during mid-90s, BPs mission is tobecome the best upstream company in the world.The foremost change in BP was done to IT
  5. 5. division. This report analyses the BPs strategic plans in achieving their business missionusing the ISS triangle. The main objective of BP transformation is to change the existingorganization to a more dynamic, scalable and adapting to changing environment andeconomic demands. Since IT was used extensively throughout the organization in thebusiness processes, changing IT will have a direct impact on their business strategy. Anorganization to realise this fact and re-architecture the information systems to achieve theirbusiness strategy is British Petroleum (BP).Early 90s, CEO John Browne realised the potential change needed for the IT functions in theexploration division of BP. There have been three broad generations of changes in ITfunctions, First generation focussing on the cost-savings and efficiency; Second generationstarted during late 80s with the objective to maintain IT as a strategic resource, the primaryaim of this era is to have IT aligned with or supporting business strategy.Unfortunatelystrategic benefits yield from second generation is less sustainable hence third generationprinciples focus changed to outsourcing and decentralising IT functions.The principle change from third generation in IT function is discussed in this paper tounderstand the alignment between IS and business strategy. Also the recent technologyimplementations and integration of new information strategies after lessons learnt in therecent oil spill crisis is understood to analyse how BP leverages IT to create business value. 3. Theoretical frameworks and reasons for choiceTo better understand the importance of organizations information system which is not anisland within a firm, rather it is the core functioning part in enabling the business engine. Wehave used Information System Strategy (ISS) triangle, a simple framework for understandingthe impact of Information System (IS) in organization as depicted by (Pearlson& Saunders,2009).
  6. 6. Alignment: The definition for alignment provided in the paper "Winning 3 leggedrace"(Hoque, Sambamurthy, Zmud, Trainer, & Wilson, 2005) is used for this study; "thesituation in which a companys current and emerging business strategy is enabled, supportedand unconstrained by technology". When an organization is able to achieve proper fitbetween the IT functions and organizations business strategy, it is said be in strategicalignment. Hence, alignment has become a prime concern for senior executives.Over the years, BP has undergone technology transformation to accomplish their businessgoal and to sustain the inevitable economic market. The most recent critical events in BP‟scalendar found to have a massive impact on business, operations and revenue is the 2010‟s oilspill by BP in the Gulf of Mexico followed by 1980 oil glut (Refer Appendix Figure 4).3.1 Information System Strategy Triangle frameworkA framework that helps to understand the importance of information systems in currentorganization trend is the Information System Strategy triangle (Pollack, 2010). Figure 1: Information System (IS) Strategy TriangleThe three elements of the triangle are as follows (Pearlson& Saunders, 2009);  Business strategy is the mission of the organization; what the business seeks to accomplish; a clear boundary that shows the steps taken by an organization to achieve the goal and objectives.  Organization strategy is focussed on the people, process, and purpose to achieve the business goal.
  7. 7.  Information systems strategy is the service provided by the organisation to complement the business goal. For a successful organisation, these three vertices of the triangle should be aligned and complement each other.3.2 Hypercompetition FrameworkThe main focus is to understand the alignment between BP‟s information system strategy andbusiness strategy. This framework helps us to identify different aspects of BPs businessstrategy and helps us to analyse the alignment of IS in the strategy triangle. With theeconomic changes faced by BP over the years this framework is useful in understanding thechanges made in sustaining the business strategy during the tough times. The approachesused in this study are Strategic soothsaying and Positioning for speed3.3 IT Value Chain modelA framework created by BP is the IT value chain model or Jacobs ladder. This frameworkhas helped BP better distinguish between areas to be maintained in-house and outsourced.The four main components of this framework are; Figure 2: IT value chain modelBusiness process delivers business outcomes; it provides a level to measure the businessperformance.Information is an important component in an organization, every decision
  8. 8. making process is made based on the information available and accessible. Application oftencalled as information systems, the medium in which information is transported.Infrastructure provides the base for the information system, this allows organization to easilymeasure the cost, value but it is difficult to measure the outcome of information, applicationdevelopment.Organizations sometimes fail to satisfy their business strategy due to lack of understandingcore business process rather focussing on nice applications which results in no return oninvestment (Baets, 1992). 4. Related Frameworks available in aligning strategiesDuring the IT transformation era 1989 to 1995, BPs has framed new principles to manage ITactivities. Seven elements (Pearlson & Saunders, 2009) identified in their transformationagenda which acted as a framework for other organizations in IT transformation(ReferAppendix: 1.1).Zachman framework is an enterprise architecture framework, it provides a structure toanalyse and define the architectural artefacts. It provides a two dimensional matrix logicallyanalysing an enterprise information systems along the lines of What, Where, When, Why,How and Who. 5. Applying frameworks in BPThe frameworksare applied to analyse the role of information system in ISS triangle. BPsapproach in competitive environment using technology changes is discussed in this section;
  9. 9. 5.1 Hypercompetition framework5.1.1 Strategic soothsayingBPs approach towards seeking new knowledge that can predict or create a new window foropportunities to achieve the business strategy is seen during the technology transformation.The traditional models were useful only during the environmental stability era, these modelswere not able to sustain the continuously changing market and were not flexible to adaptduring economic changes. BP was one of the pioneers in forming new management principlessuch as seven component model for IT transformation (Refer Appendix Table 1) and IT valuechain modelfor outsourcing. Further over the years, BPhas implemented various enterprisesystems and use of social media during crisis management to align IS with their businessstrategy. Following are the few strategic moves highlighted during the different phases;Buy, not build:The key decision to destroy the current IT functions and strategically plan foroutsourcing is implemented. The core business of BP is basically exploring oil and notapplication development or infrastructure management, hence value creation to the businessare held by in-house expertise. Activities like application and infrastructure management arecost drivers rather than value creators hence in order to reduce cost and achieve businessstrategy outsourcing is followed. BPs pursuit of realising their goal to "buy, not build" policywas a unique initiative in creative external software market (Cross, Earl, & Sampler,1997).Selective outsourcing: BP strategy to reduce the dependency on specific suppliers andimplemented the mixed sourcing strategy, increasingly moved to selective outsourcing(hybrid model)(Lacity, Willcocks, & Feeny, 1996). Since 1986, it had outsourced selectedservices in the form of renewable contracts with providers like SEMA group, Syncordia,SAIC, I-NET and CTG (Cross, 1995).IT value chain or Jacobs ladder model was used todraw guidelines to identify the IT functions to be outsourced.
  10. 10. Strategy to manage outsourcing:The foremost transition took place in the core workingstrategy of IT division, traditional role of system analyst are changed to business consultant.Realigning traditional job responsibilities of IT analyst from mere solution providers toredesigning and optimising business operations were carried out. Managers were involved incoordination roles like vendor management, change management, post project evaluationsrather than software development and management. This transformation in IT personnelskillshas provided a best-of-class solution for the problems and also sets an equal balancebetween business, people and technical skills (Cross, et al., 1997).Centralised IT system “plug and play”The decentralized IT systems have resulted in fragmented and duplicated information due towhich managing information had become increasingly cumbersome. The strategic move todefine a global architecture planning was designed, regional IT divisions are allowed to selectapplications "plug and play" in the global architecture. This architecture led to the design of anumber of services shared among divisions. Since IT resources has short-life span,redesigning and updating infrastructure was a constant process to meet changing businesssolutions.The main goal of IT implementation was to avoid the complexity involved in the existingsystems (application reduced from 175 to 75, with no complaints from business), andoutsourcing of the value realization IT functions. This strategic move has eventually allowedIT division to pursue value creation, cost reduction and oversee infrastructure.Technology implementation in BP - Evolution of a dedicated IT stack:Technologyevolved in BP over years. By now, they have stacked the IT in three different layers with fourdifferent kinds of technologies.
  11. 11. Figure3: IT Stack at BP (Rao, 2007)Foundation:BP achieved secure, seamlesscommunicationand basic processing capabilityEnables business by providing the firm wide basic back end and system capabilities.Enterprise data centres and servers are managed by HP since 2010. Cisco manages thewireless LAN Communication links and network services with over 20 collaborative projectssince 2001 to access control, plant operational data and to connect their operating offices.Commodity:BP increased productivity with improved process planning and materialsmanagement triggered by a common user level electronic platform for collaboration andcollaboration available as a commodity.IBM Maximo Asset Management enables BP toconnect its business processes with over 1500 suppliers to co-ordinate the maintenance,operation and repair of specialised exploration and production equipment.BP uses shared datasystems based on common data standards such as XML (Holland, Shaw &Kawalek,2005).Plum Tree‟s Content Management Systems enables BP to manage its organizationalmemory and help in dissemination and diffusion of processes and operations knowledge.Table Stakes:BP maximized asset efficiency by outsourcing the functionalities to specializedvendors or by purchasing the license of the software. BP improved business process
  12. 12. management with SAP and IT business applications with competing IT vendors since 2009(IBM, Wipro, Tata, Infosys, and Accenture). Microsoft provides Business Intelligenceservices for the BP management to gain insights on the business processes since 2006. OracleSiebel CRM systems provides downstream operations management. Seebeyond‟s ICAN andTibco are the Enterprise Application Integration (EAI) systems used to connect with differentplatforms, architecture and technology.SoftwareAG‟sWebmethods enable enterprise workflow modelling used to process transactions, avoid conflict at different layers of theorganization. (Vemmestad, 2008)Google Search Appliance enhances BP‟s enterprise searchengine capabilities with more intuitive searches with multi-lingual options for the employeesand website users and enhanced search speed five-fold, increasing internal and publicsearches by 80%Differentiating:IT guided BP in overcoming the upstream challenges in transforming the oilrigs to digital oil platforms, oil recovery to optimized oil recovery. Process simulations withadvanced imaging and visualization in real time helped BP to ensure the best quality andsafety standards in their operations and delivery. Specialized and competing oil field serviceproviders helped BP to achieve operational efficiency in the fields of exploration.BP outsources most of its operations at the previous levels in the stack and it relies onspecialized Supplier performance Management solutions providers like Biznet Solutionstuned for energy companies with integrated energy metrics since 2000.3D Visualization andsimulation helps in risk analysis and to ensure operational capabilities like deployment,change management. Extensive video monitoring ensures safety levels, fire and gasdetections. Real time web based information processing helps in solving issues confronted inoperations and to serve as a self-diagnostic platform. Augmented reality based simulationshelp in intuitive and realistic core exploration and production process design. Transocean,Halliburton, Cameroon, Schlumberger and Baker Hughes are the major oil field service and
  13. 13. simulation software providers employed by BP now. To exploit the ingrain talent of humancapital in BP, it has launched an „Idea Aggregator web tool‟ to propose, vote and promoteideas to market after validation since 2006. It has also launched a crowdsourcing platform totap on collective intelligence from the external communities. BP has also invested on nextgeneration web search based on semantic web to be on the top of the competing ladder.Field of the future (FOTF) portalis an in-house state-of-the-art system consisting of the usecontrol systems, sensors, real time data distribution and the use of advanced optimization andcontrol modelling. (Source: www.bp.com, Frontiers Publication, Dec 2006)ACE (Advanced Collaboration Environment) is used for control rooms offering real time offshore monitoring and “see and talk facilities with always-on video link”.One touch toolworks using a web browser pulls and combines information from 24 different databases aboutreservoirs, geological maps to generate easily consumable mash ups, visualizations forcomparison and instant decision making.CMS (Crisis Management System) gathers andvisualizes the information from Geographical Information Systems (GIS) about the weather,environment , ocean currents and also various other internal and external sources andmonitors the safety of environment and people.ISIS (Integrated Subsurface InformationSystems) gathers the down hole information from the wells using sensors in real time thatmeasures critical parameters such as temperature and pressure.Starting from the third generation (transformation) stage wherein BPs focus is to alignInformation System towards their business strategy. Pitching with outsourcing strategy toreduce cost, downsizing IT resources and implementing various enterprise and innovativetechnology has made BP attain a position of competitive advantage in gaining newknowledge and creating a window for opportunities.
  14. 14. 5.1.2 Positioning for speedThough BP had a winning streak in positioning its IT transformation and reacting to thechange in technology and process as fast as possible in its competing circle, it has clearly lostthe game in the Information Communication perspective during the Oil Spill Crisis in 2010.This part critiques the negative aspects of BP‟s reactions to social media during the earlydays of the spill and how BP progressively incorporated the social media strategies in theirInformation Strategy soon after the lessons learnt.On April 20th 9.46pm: The Deep-water Horizon, the sub sea oil drilling system explodedoff the Louisiana coast in the Gulf of Mexico.Impact on environment and people: 11 dead, 16 injured and 115 workers rescued. BP hadreleased about 4.9 million barrels of crude oil causing the ecological imbalance in thesurrounding coastal areas and affected tourism and fisheries industry to a great extent.Impact on corporate image and brand:BP had employed Ogilvy & Mather as their PublicRelations (PR) consultants. During the spill, the corporate communications was notpositioned for speed to reveal BP‟s realization of the mistake and commitment in thereformation activities.Failure to leverage Social Media during Crisis ManagementSocial Media by then added a new layer of communication. Environment activists, localartists trying to popularize them with BP‟s context used YouTube video channel to criticizeBP‟s poor actions to resolve the crisis. “When BP spills coffee” 1produced by UCB comedyreached 2.5 million views by June 2010.On 16th May, a parody twitter account for BP named@BPGlobalPR opens with the tweet: “We regretfully admit that something has happened offin the Gulf Coast. More to come”.By June 2010, @BPGlobalPR (parody) had 125,000followers whereas @BP_America (official) had 10,000. „Boycott BP‟ facebook page had1http://www.youtube.com/watch?v=2AAa0gd7ClM&ob=av3e
  15. 15. 233,000 fans while the official BP page had 18,000 (Andersson & Macdonald, 2010).Greenpeace, the global environmental non-governmental organization (NGO) initiated a"Rebrand the BP Logo" contest in Internet and asked the contest entrants to submit theirentries on Flickr.com, the social photo sharing site. There were approximately 2,500 entriesand about 600,000 views of the logo rebrands entered, just in a few weeks by June 2010.The stock price of BP fell by 15% in 43 days partially due to the disruption of its corporateimage in social media .2BP started off communicating very late even for the first time. It came up with a tweet fromits official page only after 10 days from the start of the spill. BP also ignored the parodytwitter account @BPGlobalPR activities and the unofficial logo redesign competitionorganized internally in the micro blog. @BPGlobalPRsold $10,000 of „BP cares‟ t-shirts anddonates all proceeds to the recovery mission (Refer Appendix Figure 5).These activitiesshould have been recognized and supported by BP officially, but it underestimated the valueof social media and social networks.From the start, BP was not sharing the feedback aboutthe reformation activities openly in social media and BP wasn‟t open to public criticisms andcomments about the disaster or recovery. It imposed extensive commenting policy that warnsany "ad hominem attacks" will be removed. This to some extent provoked the social mediausers to start online campaigns against BP.Its sole strategy of purchasing more “Google Ad words” , search key phrases and Youtubeoverlaying ads related to the oil spill which redirected to the BP‟s video channel or websiteabout reformation activities was not able to save their corporate image.2http://www.propublica.org/article/congressmen-raised-concerns-about-bp-safety-in-months-before-gulf-spillhttp://abcnews.go.com/WNT/video/conversation-twitters-satirical-bp-star-10849258Donthttp://mashable.com/2010/06/09/bpglobalpr-changes-biohttp://mashable.com/2010/06/02/social-media-gulf-oil-spill/http://www.nytimes.com/interactive/2010/05/01/us/20100501-oil-spill-tracker.htmlhttp://www.businessinsider.com/bps-crisis-pr-strategy-unprepared-inefficient-and-incomprehensive-2010-5http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7804922/BP-chief-Tony-Hayward-sold-shares-weeks-before-oil-spill.htmlhttp://www.fastcompany.com/1644053/infographic-of-the-day-what-the-heck-is-a-relief-well-bp-explains
  16. 16. BPs strategy towards Social media monitoring and reputation maintenanceFollowed by criticism, an aggressive social media strategy which formed a part of theirrecovery strategy was devised. BP outsourced the social media monitoring to Social360, acorporate specializing in monitoring social media content to selectively respond and engageonline discussions of users for seven months following the spill. It identified relevantconversations on social web (blogs, Twitter, Facebook, forums, etc.) and results are filteredand analysed by a team of human editors into concise reports for client consumption. Morethan 10.5 million individual social media posts were processed. The marketing team at BPdirectly coordinated with the social360 team in generating interactive content to the public.New posts on social media and collaborative activities connected people withBP activitieslike reformation, executivepublic speeches about the pace of relief activities and investigationresults for the cause of spill. (Source: Social360 BP case study3). BP partnered with Radian6,a social sentiment analytics organization to constantly report on the social media sentimentspermanently after the oil spill.BP started engaging online reputation management consultingto guide on their social media and online brand management strategies along with the PRconsulting firm Oglivy&Mathers.The competitive advantage attained by BP in the strategic soothsaying approach with theinsight in analysing the current IT functions and using the IT value chain model foroutsourcing has tried to align IS towards their business strategy in ISS triangle.But thedelayed action from the corporate communications perspective during the massiveenvironmental disaster created by BPmadethem completely pull back from the competitivemarket. The poor performance in responding to the crisis and poor planning has lostcredibility among customers and stakeholders. BP has a tough recovery mission for itscorporate image and it‟s still going on.3http://social360monitoring.com/case-studies-bp/
  17. 17. 6. Research findingsBP has rightly envisioned the IT transformation early in the competitor circle (1990) andframed a customized strategic plan to align information system with business strategy.Outsourcing is one of the key elements in the transformation phase which has provided BPwith a tremendous cost reduction results. The selective IT (hybrid) outsourcing for costreduction and business process improvement right from the start of IT transformationprovides least bargaining power for suppliers.Using the IT value chain model by making theright choice of competing vendors and differentiating their core and non-core processes hasled to align their information system with business strategy. Starting with a complete strategicinformation system planning to transform their business strategyto an architecture and then toinfrastructure implementation has set an example for other organizations in ITimplementation. BP chose the best-in-class enterprise systems for its operations and businessprocess facilitation.BP enabled best collaboration between virtual teams across geographiesto share knowledge and expertise by choosing and installing the best and securecommunication, collaboration and content management software and hardware.Ignoring the social media sentiments during the greatest BP crisis, oil spill andunderestimating the power of network effects, user generated content and web 2.0 forcorporate communications led to the destruction of its corporate image in the marketcomprising competitors, customers and stakeholders.BP uses Knowledge Management (KM) and Business Intelligence (BI) to turn data andinformation into contextual knowledge and generate insights to the top management about thecustomer trends and business. BP also tuned its global information systems to provide bothautonomy as well as decentralization to facilitate context based decision making in theoperating locations across geographies.Advanced in-house Information processing systems in
  18. 18. real time providing simulations in multiple dimensions enabled BP to exploit theiroperational capability and gain competitive advantage.The use of balanced score card, an intellectual capital management framework helps vendorsto focus not only on providing service but to contribute to BPs core business process. 7. Lessons LearntBP learnt from the mistake of underestimating the power of social media during a crisis. BPthen strengthened its social media strategy by partnering with consulting firms providingspecialized sentiment analytics and online reputation management solutions.The official YouTube channel for BP was launched only on May 18, 2010, soon after thedisaster and it is very unfortunate to see such an industrial giant in oil and gas had no cluesabout the emerging information and communication platform and social media. The in-houseIT team of BP need to have research collaboration with universities, offered to attend latesttechnology conferences and subscribe to IT journals, consumer and market trend reports fromNielsen, Ipsos and integrate research databases like Forrester inside BP‟s library.The oil spill‟s investigation also proved that technology wasn‟t the sole reason behind thedisaster, but also due to the negligence of the employee at site, who ignored the earlywarnings raised by the system about the defect. Knowledge Management can be a viablesolution in long term to avoid such risks by codifying the scenarios, discussing incommunities about the problem and exploiting collective knowledge to solve it.
  19. 19. 8. ConclusionThe strategic planningby British Petroleum‟s during IT transformation to carry selectiveoutsourcing, enterprise system implementationshows how BP leverages information systemstowards their business strategy. To specifically drill down and understand the businessstrategies with Information systems, D‟Aveni‟s hyper competition model – Strategicsoothsaying and positioning for speed approaches were used. Value chain model helped us toappreciate their selective outsourcing strategy retaining the core differentiating state-of-the-art systems in-house. Improper initial response during oil spill through social media showstheir set back in handling new technology. Late recovery strategy post oil spill showed theprotest arose due to negligence of the mass in social media. Information systems andtechnology has been and is a key value creator and business process enabler for BP. Thesuccess lies in understanding and catering information systems to the needs of the businessstrategy.
  20. 20. ReferencesHollier, A. (1992),“Computerised finding aids at the British petroleum archive”, Journal of the Society of Archivists, 13(2), 124-131. doi: 10.1080/00379819209511677Pollack, T. A. (2010), “Strategic information systems planning”, ASCUE Proceedings, 47-58.Pearlson, K., & Saunders, C. S. (2009), “Strategic management of information systems”, Keri E. Pearlson, Carol Silverman Saunders: Hoboken, N.J.: John Wiley & Sons, c2009.4th ed., International student version.Hoque, F., Sambamurthy, V., Zmud, R., Trainer, T., & Wilson, C. (2005), “Winning the 3- legged Race: when business and technology run together:” Prentice-Hall, Inc.Baets, W. (1992), “Aligning information systems with business strategy”, The Journal of Strategic Information Systems, 1(4), 205-213.Cross, J., Earl, M. J., & Sampler, J. L. (1997),“Transformation of the IT function at British Petroleum”,Mis Quarterly, 401-423.Lacity, M. C., Willcocks, L. P., &Feeny, D. F. (1996), “The value of selective IT sourcing. Sloan management review”, 37, 13-25.Rao Vijay (2007), “Future Challenges Facing BP, How technology can help”, available at http://www.bp.comJohn Cross (1995), “HowBP Exploration achieved seamless service from multiple suppliers”, Harvard Business ReviewFrontiers (2006) ,“Virtually there”, Frontiers publication, available at http://www.bp.comC.P. Holland, D.R. Shaw, and P. Kawalek (2005), “BPs Multienterprise Asset Management System”, Information andSoftware Technology 47(15), pp. 999-1007.Andersson Liri and MacdonaldJonathan (2010),“An overview of the BP crisis from a communications perspective”, available at www.thisfluidworld.comJohn Vemmestad ( 2008),“Mature fields technology”, available at http://www.bp.comTony Hayward, Andy Inglis, Byron Grote and Iain Conn (2010), “BP Strategy Presentation”, London, available at http://www.bp.com
  21. 21. AppendixTable 1: BP IT transformation agenda with 7 component modelFrom ToSystem Provider Infrastructure PlannerMonopoly Supplier Mixed sourcingBusiness Standard Industry standardsDecentralized bias Centralized topsightSystem analyst Business consultantCraftsman Project ManagersLarge Functions Lean TeamsFigure 4: Uncertain price environment,Source: BP Statistical Review of World Energy, 20114Figure 5: @BPGlobalPR(Twitter Parody Account) statement by its founder, LeroyStick (MacDonald & Andersson,2010)4http://bp.com/statisticalreview

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