OXY’S INFORMATION SYSTEM
MODULE: MANAGEMENT INFORMATION SYSTEMS
Table of Contents
THE CURRENT INFORMATION SYSTEM TYPES AND MODELS USED IN OXY OMAN INCORPORATED.. 4
Finance and Accounting Departments. 5
Sales and Marketing Department 7
CLASSIFICATION OF THE STRATEGIES APPLIED FOR USING THE INFORMATION SYSTEM AT OXY.. 9
Sales and Marketing Department 10
Finance and Accounting Department 10
CURRENT ETHICAL, SOCIAL, AND POLITICAL ISSUES RAISED BY INFORMATION SYSTEMS OF OXY.. 11
Table of figures
Figure I Operations Department Flowchart (source: exampleplaining.com)…………………………….. 5
Number II: Finance and Accounting Process Flowchart (source: lucidchart.com)……………………. 6
Number III: Human Resource Department Flow Chart (source: HR-Ease.com)………………………. 7
Number IV: Sales and Marketing Department Flowchart (source: isixsigma.com)…………………… 8
Figure V: Engineering Department Process Flowchart (Researchgate.net)……………………………… 8
THE CURRENT INFORMATION SYSTEM TYPES AND MODELS USED IN OXY OMAN INCORPORATED
According to Kukreja (2017), the information system is a collection of software and hardware components, people, communication networks, and data resources involved with the collection, storage, processing, and dissemination of information in an organization. They include Decision Support Systems, Transaction Processing System, Knowledge Work Systems, Office Automation Systems, and Executive Information Systems Along With Operations Support Systems. To best design an Information System Model, key elements are significantly factored (Juneja, 2018). Such features include products and services, customers, business processes, along with communication technology.
At Occidental Oman Incorporated, also known as OXY, all the information systems named above are used (OXY, 2020). The company’s operations are broadly classified into Oil and Gas, Chemical along with Midstream and Marketing. According to Gateways (2020), a division of company departments is categorized into Engineering, Operations, Finance, Accounting, Human Resource Management, and Marketing.
Operations Department
The operations department has significantly employed Knowledge Work Systems and Operating Support Systems by field operators as well as Management Information Systems for the operation management level. A knowledge Work System facilitates the creation of knowledge and ensures that technical skills are assimilated in operations. For instance, Computer-Aided Designs (CAD) software acts as a system of internal checks to correct operations errors (Juneja, 2018). Similarly, the Management Information System is used by operations department top-level management to facilitate decision making, planning, and controlling activities. It draws data from Transaction Processing Systems for compilation and processing into reports for management action.
Figure I Operations Department Flowchart (source: exampleplaining.com)
Finance and Accounting Departments
The primary function of this department is to provide accounting services and to manage company funds. The department entails a lot of transaction reporting, analysis, budgeting and preparation as well as the production of periodic statements and reports for management planning and decision making. The department uses Management Information System, such as Office Automation Systems, Accounting Information System, and Transaction Process System, as well as Inventory Control and Management Reporting Systems (OXY, 2020). The above systems combine efforts to offer computerized database for executing efficient and accurate accounting and finance functions.
Figure II: Finance and Accounting Process Flowchart (source: lucidchart.com)
Human Resource Department
Essential human resource functions revolve around resource planning, employee selection, recruitment, training, and compensation and career development. Management Information System (MIS) and Office Automation System are mainly used. Office Automation system enables official communication of the Human Resource Department through email and voicemail (OXY, 2020). Similarly, the Human Resource Information System facilitates automated payroll preparation for employee compensation as well as other benefits.
Figure III: Human Resource Department Flow Chart (source: HR-Ease.com)
Sales and Marketing Department
The main activities in this department revolve around branding, executing marketing campaigns, and producing promotional materials, such as the recruitment of new business partners and tenders (Gateways, 2020). Similarly, conducting customer and market research, following up on product delivery and collection of receipts. The department uses the Sales and Marketing Information System. It helps in managing distribution networks, projecting sales, tracking prices, advertising costs, and discounts.
Figure IV: Sales and Marketing Department Flowchart (source: isixsigma.com)
Engineering Department
This department executes the majority of the operations relating to gas and oil exploration, oil production, solar energy generation as well as gas plant operations, and freshwater supply to communities neighbouring their operation fields. The department has an extensive integrated Decision Support System, Process Control, and Knowledge Work Systems, Expert Systems, along with Geographic Information Systems. According to Ohio (2018), such systems significantly improve the flow of information, decision making, as well as ensuring accuracy and efficiency.
Figure V: Engineering Department Process Flowchart (Researchgate.net)
CLASSIFICATION OF THE STRATEGIES APPLIED FOR USING THE INFORMATION SYSTEM AT OXY
Oxy Oman Incorporated has strategically invested in its Information System. According to Arvidsson, Holmström, and Lyytinen (2014), strategic investment in Information Systems is only viable if the organization integrates its Information Technology capabilities in the operations. The ability to model and maintain strategic intent is paramount for any IS strategy. Oxy has employed two Information System Strategies (Gateways, 2020). They include operations support strategy and management support strategies that serve several vital purposes.
Operations Department
Firstly, the operations support strategy has created a barrier for a new entry into the industry by a competitor (Arvidsson, Holmström and Lyytinen, 2014). It has also promoted sophisticated business networks by leveraging technology in the supply chain, posing huge costs for competitors to venture.
Sales and Marketing Department
The operations support and management support strategies have provided Oxy Oman Incorporated with improved marketing tools (Gateways, 2020). The various robust databases have led to a competitive advantage by enhancing the company’s marketing and sales tactics through data mining. It has also promoted avenues for locking suppliers and customers through automated relations such as timely statements sharing and other strategic information.
Engineering Department
A combination of both strategies has resulted in using IS to offer services and create products that are difficult to duplicate (Laudon, 2015). It has also improved the company’s value chain by eliminating spillage in the production process and significantly reducing defective products.
Finance and Accounting Department
Management support strategy has helped the department lower the cost of products and production processes (OXY, 2020). It has also resulted in Oxy Oman Incorporated offering products and services at a reduced price compared to its peers leading to a competitive advantage that creates a reserve fund for future expansion and growth of the company.
Human Resource Department
Management support strategy has resulted in improved communication channels in the organization and promotes innovation as a means of enhancing employees’ productivity (Gateways, 2020). Tracking of attendance used and paid leave and timekeeping for policy review and implementation.
CHALLENGES POSED BY THE CONTEMPORARY INFORMATION SYSTEMS TECHNOLOGY AND THE INTERNET REGARDING PROTECTION OF INDIVIDUAL PRIVACY AND INTELLECTUAL PROPERTY
Oxy Oman Incorporated’s structure for privacy and fair information practices faces several challenges. Firstly, the disclosure about the use of cookies and the type used between session cookies and persistent cookies (May 2013). Another problem relates to logging activity whereby the company should inform its website about the use of automated tools for logging information. Disclosure of reasons about the use of web bugs and beacons techniques poses challenges due to the explanation of what information was tracked, how, and why they use the methods. The use of choices and consent to offer options to consumers relating to the secondary use of information collected from them poses another challenge (Laudon, 2015). Such policies prevent anonymity for copying, manipulating, or communicating information unlawfully.
CURRENT ETHICAL, SOCIAL, AND POLITICAL ISSUES RAISED BY INFORMATION SYSTEMS OF OXY
Main social, ethical, and political issues relating to Information Systems at Oxy Oman Incorporated relate to property rights and obligations, control and accountability, quality of life, information rights and responsibilities, as well as system quality.
Ethical Issues
Sophisticated data analysis methods such as profiling and pattern analysis from non-obvious relationship awareness have resulted in a threat to individual privacy.
Political Issues
Political issues revolve around the lack of defined laws and policies that should regulate matters about Information System. For instance, property and information rights protection in a digital community in which ownership is difficult to trace and or account.
Social Issues
Social Issues are concerned with the quality of life in terms of value preservations, target groups to be protected from violation, and cultural norms and values that should be integrated into the information system.
Recommendation for Policy
The company should enact the Electronic Transaction Act currently used to govern operations related to information technology lawfully. It is justified because an employee involved in any of the above malpractice can be sued in a court of law.
[Total Words 1304]
Reference
Books and journals
Arvidsson, V., Holmström, J., and Lyytinen, K. (2014). Information systems use as strategy practise: A multi-dimensional view of strategic information system implementation and use. The Journal of Strategic Information Systems, 23(1), pp.45-61. Available at: https://doi.org/10.1016/j.jsis.2014.01.004
[Accessed 19 May, 2020].
Laudon, K.C., 2015. Management information systems (p. 143). Upper Saddle River: Pearson.
May, C., 2013. The global political economy of intellectual property rights: The new enclosures?. Routledge.
Websites
- Kukreja, S., 2017. Six Major Types of Information Systems. Management Study HQ. Available at: https://www.managementstudyhq.com/six-major-types-of-information-systems
[Accessed 19 May, 2020].
- Juneja, P., 2018. Elements of Information System Model. com. Available at: https://www.managementstudyguide.com/information-system-model-elements
[Accessed 19 May, 2020].
- OXY, 2020. Facts Oman. Oxy.com. Available at: https://www.oxy.com/News/Documents/Occidental-Fast-Facts_Oman.
[Accessed 19 May, 2020].
- Gateways, B., 2020. OCCIDENTAL OMAN INCORPORATED – Oman. Businessgateways.com. Available at: https://businessgateways.com/oman/oxy [Accessed 19 May 2020].
- Ohio, u., 2018. Information Systems for the Engineering Manager | Ohio University. Ohio University. Available at: https://onlinemasters.ohio.edu/blog/information-systems-for-the-engineering-manager-overview-and-use-in-civil-engineering-projects
[Accessed 19 May, 2020].