In any business, nothing is more important than right information at the right time. The Internet has given birth to Information Technology. Systems have been developed to make information accurate, readily available, and accessible throughout the organization. It is the modern trend used in collecting, processing and disseminating important information that leads any organization to better planning, decision making and producing better results.
The oil and gas industry, like in other industries, needs information technology in order to survive and exist in the competitive world of business. IT has a very important role in increasing productivity. It is the foundation for producing by-products of oil and gas, services and how the business itself will be conducted so that an oil and gas firm will have strategic advantage over other firms.
Importance of Computer Information Systems in Oil and Gas Industry
- Excellent Operational Performance – Computer Information Systems are necessary and vital tools that managers can use in achieving higher levels of competence, efficiency and productivity in its business operations. When an oil or gas firm has a retail link system in its organization, it will know when a depot is running out of oil or gas and will immediately ship out the needed supply.
- Creation of new products, services and business models. CIS plays a vital role in creation of new products and services. It can also help in the creation of an entirely new business model. Business models defines how the company produces, delivers and sells a product or service to gain profit. With oil fields running out of deposits, oil and gas companies are looking for other resources and CIS can provide the much needed information to address this need.
- It helps build relationship between customer and supplier. When there is better customer service, the customer comes back to purchase more. This will mean increase in revenues and profit. Oil and gas firms need computers to keep track of what and why the customer keeps coming back.
- Competitive Advantage – When a firm does better than its competitors, such as cheaper price for the same quality of oil or gas, it already has achieved a competitive advantage and will result to higher sales and profits.
- Industry level changes day to day. The oil and gas industry has to turn to computer information systems to provide them the capability to respond to these daily changes.
More info: Urgent Need for Digital Transformation in Oil and Gas Industry | Types of Computer Information
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