Management Information System In Oil Company In Libya - Research Paper Example

CHAPTER III METHODOLOGY This chapter presents the methodology used in the report. It includes the research design, research setting, data and source of data, instrumentation, data collection, and data analysis. 3.1 Study Design The investigation is primarily based on the principles of descriptive qualitative research. As Kothari (2004) mentions that descriptive research includes surveys and fact-finding enquiriesof different kinds. The major purpose of descriptive research is description of the state ofaffairs as it exists at presentin which the main characteristicof this method is that the researcher has no control over the variables; he can only reportwhat has happened or what is happening. It alsoincludes attempts by researchers to discover causes even when they cannot control thevariables. The methods of research utilized in descriptive research are survey methods ofall kinds, including comparative and correlational methods.Strauss and Corbin (1991:17) refer to qualitative research as any kind ofresearch that produces findings which are meaningful, testable and scientifically freefrom contradictions. This type of research focuses on understanding rather thanpredicting or controlling phenomena. Moreover, quantitative research is based on the measurement of quantityor amount. It is applicable to phenomena that can be expressed in terms of quantity.Qualitative research, on the other hand, is concerned with qualitative phenomenon, i.e.,phenomena relating to or involving quality or kind. 3.2 Research Setting This study is conducted in Malang, Indonesia to analyze user competency impact on the implementation of management information system in oil companies in Libya as to reveal the problems in adopting the system and the benefits for the companies. According to the United States Institute of Peace (USIP), although Libya ranks 17th as a world oil supplier, it is Africa’s largest oil reserve, producing 1.8 million barrels per day (bbl/d). Libya contains nearly 46.4 billion barrels of oil, as of January 2011. The majority of existing oil fields are located in three major basins; Sirte, Murzuk and Pelagian (Stankosvka& Lavender, 2011). This is more than sufficient to give it much greater international leverage than itstiny population (just over 6 million people) or modest per capita GDP ($16,000)would normally suggest. Libya’s oil industry is dominated by its state-owned National Oil Company,which controls at least a majority interest in all oil exploration, production, andrefining (Zweig, 2009). This study is aimed to find out information about management information system used in oil companies in Libya which have to maintain their production of oil to supply domestic and international demand. The duration of the study is two months, from middle of March 2014 to the beginning of May 2014. 3.3 Data and Source of Data The data of this study include the information about user competency of management information system applied in oil companies in Libya. The type of data used in this study is secondary data, which are obtained directly from data sources including documents that have been collected, such as articles, official websites, statistics and global reporting, and organizational structures. A documentation including a wide range of written materials production of qualitative information can be particularly useful in trying to understand the problem that may have existed on the ground in the area of ​​research and case studies. Policy documents and mission statements, annual reports, minutes or meetings, and codes of conduct are valuable source of data. 3.4 Data Collection The data will be collected through documentation gathering from the internet and requesting the data from the related company. To obtain comprehensive information, the researcher made some field notes of the documentations. The data obtained from internet will include the history and the profile of the company. The data that are requested from the company will cover the user competency of management information system. 3.5 Data Analysis After the data are collected from the internet and from the company, they will be processed and consolidated andlater coded.This study follows the process of data analysis as described by Kothari (2004: 122- 127), that is editing collected raw data to detect errors and omissions and to correct these when possible, arranging data in groups or classes on the basis of user competency characteristics in adopting management information system and displaying the analysed data in an orderly arranged columns and rows. Analysis of data involves examining, sorting, categorizing, evaluating,comparing, synthesizing and contemplating the coded data, as well as reviewing theraw and recorded data, according to Lawrence and Neumann (1997:402).According to Bless and Smith (2003:13), data processing allows the researcher togeneralize the findings from the sample used in the research to the larger populationin which the researcher is interested. The processing and consolidation of data will bedone in this research to achieve the aim of the study. Chapter IV FINDINGS It is vital to acknowledge the findings of this study in the implementation of the management information system in Libya’s oil companies. As stipulated in the earlier chapters, management information systems entails a quality business application that collects, examines and processes organization data to aid in coming with quality reports necessary for making sound decisions and promoting the continuity of a company’s business operations. Reaching successful Oil business goals is the focal point in the implementation of the management information system in Libya (Obrien&Marakas 2006). Upon, a deep study on this subject, this report has compiled the following as the main findings. 4.1 Management Information System Implementation in Oil companies in Libya Among the top MIS applied in Libya is the Subsea Production System. This has and is widely used in the day-to-day operations of Libya’s National Oil Corporation. The system operates as enterprise resource planning (ERP), which integrates a number of features such as management of oil production and sales, human resource management and inventory control. Libya’s National Industrial Systems Company (NISCO) has incorporated the use of Open Spirit in the management of Oil. Open Spirit engrosses a data management system and a geographical Information system, which is very important in smooth management of an Oil company (Ahmed & Meehan 2011). Management Information Systems have always been used in the integration of the company data from all departments of Libya’s oil company. The integration of these data is fundamental in making it easy for the oil companies to process business information and come up with sound reports for management to enjoy easy business oriented decision-making processes (Hitt, Ireland &Hoskisson 2013). As indicated in the design model of the management information system (MIS) below, there is a considerable set of features that it provides in promoting the quality of services in Libya’s Oil companies. The system entails a quality module called business transactions used specifically in the handling of the day to day oil business operations. Along side it is a transaction processing system, which is vital in provision of efficiency, accuracy and accountability for each oil business conducted by a representative. The content of these two modules is stored in an all time available storage centre called the operational databases. To ensure that there is a well managed availability of oil products, the system further provides an inventory management module. This module will act as a very essential tool in providing a bird’s eye view of the content of each product at any particular time. To the management and the company at large, this feature is very crucial as it aids them prepare in a timely fashion to add quantity of a particular product before it gets to zero. Thus, the inventory module plays a significant role in promoting the business continuity of Libya’s Oil companies. The of the inventory system is validated and stored in the database for valid oil transactions. There is the oil production decision support system which is mainly used in aiding the top management in making sound decision about their respective oil production duties. Additionally, the oil expert system further ensures that there is high efficiency and accuracy in an oil company’s business operations. Furthermore, the oil production and marketing module further plays a huge role in promoting delivery of high quality business transactions. This is very important in promoting the quality, quantity and standards of Libya’s oil companies’ operations. Figure: A model design of MIS 4.2 Factors Affecting the Success of Management Information System in Libya The study indicates that the success of the management information systems in Libya’s oil is based on two key aspects. Firstly, the individual performance level of company employees is a crucial aspect in the determination of productivity of the system. It is that, using the management information system, individual oil company employees have been more productive compared to when the system was not in use. The second criteria for determining the success of this system (MIS) is, organizational performance. In organizational performance, major emphasis has been laid on the ability of the system to integrate different departments of and oil Company and the competency of the company as a single coherent unit (Abdallah&Albadri 2011). On this basis, it important to clarify that the success of Libya’s Oil companies can hugely be promoted by the implementation of management information systems. The system will provide high quality services in the processing of Oil operations along with effective information sharing platform for better decision making among the companies’ top management. It is however essential to note the there is a significant set of factors that affect success implementation of management information systems in Libya. These factors are as stipulated in the diagram below. Fear of the unknown among stakeholders Most of the stakeholders in Libya’s oil companies are the local trade men. Due to lack of high quality knowledge of information systems and technology at large, they hugely have the fear that implementation of technologies such as the Management Information system can negatively impact the productivity of their oil companies. Poor Support from top management The top management in most of Libya’s Oil companies are driven by their traditional oil business practices. In this sense, it is very hard to influence them to smoothly agree into implementation of the management information systems. Lack of qualified I.T personnel Due to the lack of consistent peace in the region, there are very few individuals with the knowledge of Information Technology. This makes it hard to smoothly implement information technology. In fact, the subject of lack of qualified I.T personnel has been leading to slow adoption of management information systems in Libya’s Oil companies. Obsolete Computing systems Libya has significantly been left behind particularly on the subject of use of up to date computing devices and systems. This is because of lack of peaceful learning, innovation and development environment in the region. Consequently, this has made it very complex to successfully implement the management information systems. Low employee knowledge levels Most employees in the region are politically employed. Additionally, the existence of a poor learning environment in the region has resulted into a workforce that is lack quality knowledge of information systems, technology and business at large. Working with this category of employee groups has created significant obstacles in the successful implementation of management information systems Lack of willingness to change Based on the fact that most of the stakeholders in Libya’s oil companies have the fear of the unknown in implementation of MIS, their respective will to change is very low. Consequently, this has made it very complex to successfully implement the management information systems. 4.3 User Competency in Management Information System in Libyas Oil Company. The competence of users in the utilization of the management information system is a very crucial component in promoting success of Libya’s Oil companies. In fact, one of the key components that has been revealed in the implementation of management information system is the integration of competence systems. This study has been successful in defining competence at this level, which is about the proficiency of a company employee or user in the utilization of the operations of an information system in the oil company. To be precise, competence systems define how each user is expected to deliver in a competent environment, along with strategies for the growth of organizational and individual competency levels over time. In general, the competence component is aimed at defining the ability of the users to use information technology such as the management information system and come up with higher performance levels (Abdallah & Albadri 2011). It is vital to note that there is a significant set of skills that the users of the management information system must possess in order to promote its successful implementation. The management information systems are solely focused on promoting the ability of the company to be at the top of its competitors in the global oil market, which is hugely influenced by enhancement of user productivity in an oil company. In this sense, the following set of skills stands out as the focal point in the success of Libya’s oil companies (Hallett 2002). Firstly, it is essential that the employees at Libya’s oil company encompass significant computing skills particularly data entry, word processing, use databases and computerized information processing. These skills are a fundamental need in the smooth use of the management information system, which is the key to ensuring that data processing at the company takes place with a lot of accuracy, efficiency and effectiveness. That is, skills in information technology are a crucial tool in ensuring that the users easily learn to use the MIS thus delivering the best services to enhance the productivity of Libya’s oil companies (Abdallah & Albadri 2011). Secondly, the users have to posses analytical and problem skills, which will aid them in becoming more creative and innovative as they interact with the management information system. In fact, the availability of analytical and problem solving skills will play a significant role in ensuring that the users learn how to use the system at a fast rate thus aid in improving the productivity of Libya’s oil company. Creativity and flexibility are also highly important skills in the implementation of management information system. To be specific, creativity skills will play a significant role in promoting a user’s to generate and apply new ideas and solutions. Thus, in the case of the management information system, users will have a well developed mental platform that fits in well in the new idea, which is crucial in coming with solution that promote the success of the company. Additionally, flexibility is essential particularly in preparing the users to accept changes on the technicalities applied in the execution of their daily functions. In this, having a group of flexible users will ensure that they can give their best in accepting change and promote the success of the new technology (Ehteshami& Wright 2011) . Lastly but certainly not the least, integrity is a key skill in the implementation of management information system at Libya’s oil companies. Integrity focuses on the ability of a user to adhere to standards and procedures available in a particular system. In this sense, having users that have the skill of integrity will ensure that they adhere to the data requirements for the MIS. This is very fundamental in promoting the success of Libya’s oil companies (Ehteshami& Wright 2011). In general, this study figured out that user competency is clearly a crucial subject of concern in the enhancement of the productivity of Libya’s oil companies. Successful promoting of user competency required major emphasis to be laid on people, technology and the organization data. People initiate the execution of system functionalities, along with inputting the required data. Technology focuses on the implementation of predefined functional requirements based on the system data. The integration and processing of the company data on the basis of the predefined technologies acts as the building block to successful implementation of the management information system. Essentially, all this revolves around the subject of user competency thus making it crucial that the company workers are equipped with the necessary skills for successful implementation of the targeted management information system (Hallett 2002). 4.4 Obstacles in the Implementation of Management Information System This change is from the traditional (centralized approach) to a strategically organized approach where each department has a definition of all the services it is expected to deliver to the company. In the traditional (centralized) form of management, an oil company, there are no clear or distinct departments. This hinders progressive business continuity of Libya’s Oil companies. However, the adoption of the approach of an MIS simplifies organizational management necessary in enhancing productivity of the Oil Company and promoting competitiveness in the global oil industry (Otman&Karlberg 2007). Having a quality feedback criterion from the customers has also been found out as a fundamental aspect in ensuring that a company assesses its competitiveness in the oil industry and the global market at large. This study found out that lack of a clear feedback platform at most of Libya’s oil companies has also been a hindrance in the advancement of their respective business operations (Turner 2005). Research further outlines that the implementation of the management information system will play a very important role in ensuring that the top management have a clear understanding of the progress of their respective oil companies. Accepting positive change is a very essential aspect in ensuring that an oil company remains competitive in the current ever-advancing technological world. To be specific, organizational came out as a key finding in this research. On this basis, the implementation of the management information system in Libya’s Oil company can add immense value to the particularly through the adoption of changes in the execution of business processes (Hallett 2002). The MIS will aid in smooth defining of the company’s departments, which is a fundamental need in ascertaining that there is no contradiction on the areas of operation for each company department. This research hereby found out that the MIS implementation has been a very important tool in promoting in Libya’s Oil management companies (Ahmed & Meehan 2011). 4.5 Benefit of Management Information System to Libya Oil Companies Significant research in Libya’s Oil operations reveals that, in recent years, Libya has undergone drastic reduction in the levels of oil production. This has been influenced by the introduction of sanctions by international community. In addition, the rise of conflicts in the oil rich regions in the country has further deteriorated the interest of most foreign investors. To be specific, the ability to maintain a friendly environment for oil companies to return to Libya has been a subject of great concern. Furthermore, the need to have quality adoption of information technology in the day-to-day oil operations has also made it so important that the different stakeholders suffer from smooth management of the Oil Companies. The implementation of management information systems has made it easier to handle all these cases in that it provides a clear platform for each stakeholder to make sound decisions. Libya has had a number of concerns mainly over the oil prices and the future of oil production, which is a key component in the competitiveness of the country in the Oil industry (Speight 2011). This study has revealed that the above need has been factor in the implementation of management of information system in Libya’s oil companies. The major goal is to enhance competition and meet the standards of most global oil companies in their daily operations. The role of the management information system in the Oil Company has been identified as processing of accounting needs, controlling and executing daily operations and generation of time-based reports. In this sense, the management information system is always aimed at ensuring that the top management and employees of a company employ quality and efficient operations in the execution of their respective company duties. In fact, the MIS simplifies the ability of an Oil company’s Human resource department to understand the value added by each staff member in the company productivity. The uniqueness of the management information system is brought about by the fact that it integrates major managerial functions into one coherent component. Specifically, the ability of the management information to examine and analyze the operations of different segments of an organization makes it a very crucial software in promoting successful business continuity of Libya’s oil companies (Ehteshami& Wright 2011). This study has further figured out the management information system is a very important application in the smooth management of the operations of an Oil Company. Among the most common features integrated in the management information system are expert systems, executive information systems and decision support systems. Essentially, this provides a bird’s eye view of all the key areas of operation of a company thus playing a huge role in promoting success of Libya’s Oil companies (Speight 2011). Upon a thorough analysis of the targeted operations of the management information system, this study has revealed a number of benefits that are fundamental in the success of Libya’s Oil companies. These benefits include, the ability of the organization to maintain a quality and effective mechanism for coordinating different departments of an Oil Company (Ehteshami& Wright 2011). It also provides a fast and reliable access to organization data. Additionally, the management information system eases the need for much labor in the daily operations of an Oil company. Furthermore, the system offers quality departmental and organizational techniques in the control of key services such as accounts, inventory and payroll. Through integration of the managerial information system with the internet, it further provides a better technique for maintaining contact with the rest of the world (Vandewalle 1998). It is also important to acknowledge that this study has found out that management information system revolves around three main areas of concern. These areas include data confidentiality, integrity and availability. On data confidentiality, the system has clear sets of well-defined access privilege levels. These access privileges define the right people able to access and manipulate data in different segments of the oil company. This is a very important aspect in the success of Libya’s oil companies since it aids in enhancing security in the company data. Most importantly, this protects an oil company’s business data from any unauthorized access (Hitt, Ireland &Hoskisson 2013). Data integrity in the management information system is another key aspect that makes the system a vital requirement for Libya’s oil companies. It entails the ability of the system to ensure that the stored business content always supports atomicity. That is, data saved in the system maintains its current values until changed by an authorized accountable user of the management information system. This is also another very fundamental feature in the system as it promotes successful achievement of the profit-making goal of an oil company (Turner 2005). About the feature of availability, this research indicates that it engrosses the ability of the system to maintain twenty-four-seven (24/7) processing of the targeted functionalities. Research indicates that most of Libya’s oil company operations continue up to odd hours (Vandewalle 1998). That is, employees of Libya’s most oil company have to operate in shifts (day and night). This is to maintain all time productivity in their respective areas of operations. In this sense, the ability of the system to maintain availability plays a huge role in ensuring that the company meets the goal of enhancing its business continuity. Lastly but certainly not the least, another crucial finding in this research is that the implementation of the management information system will be of great importance in the planning of future productions and success of the set out business goals. Most importantly, the MIS aids in easy spotting of a company’s strengths and weaknesses. This is influenced by the generation of high quality revenue reports and performance information for each of the company employees. In essence, this research stipulates that the MIS will be of great significance in maximizing the output levels of almost all of Libya’s Oil Companies along with making them competitive in the current ever-advancing global Oil market (Otman&Karlberg 2007). Read More