Business Intelligence And Strategic Information Systems Business Essay

Harmonizing to British Petroleum web site, BP is one of the largest energy companies in the universe with 2003 grosss of $ 233 billion. It has 100.000 employees more than 100 states and it passing on IT is 1.7 $ bllion per twelvemonth. The planetary energy market is complex and competitory. Leading petrochemicals company, BP usage Business Objects Business Intelligence ( BI ) solutions to present strategic information across the concern to 35 states and externally to clients via extranets. Information from an Oracle information warehouse supports twenty-four hours to twenty-four hours concern activity and delivers support for scheme planning and concern development. ( Cooke 2003 )

BP organizational construction, merchandise and services and corporate mission has been assumed to look as shown in appendix 1

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The analysis of the remainder study is organised as follows:

Section 2: Strategic function of information systems

Analysis of strategic place of the BP, in footings of the Porter ‘s five competitory forces.

Section 3: Specific Social, Ethical and Legal Issues

Analysis of Social, ethical and legal issues originating from the execution and usage of information system at the BP.

Section 4: Information technology infrastructures and future emerging engineering

Analysis BP IT substructure and BP future taking engineering


Discussion about BP concern procedure and IT security failures and their impact on the administration.

Section 6: Decisions and recommendations


A strategic information system is that support the competitory scheme of the administration such as increasing a house ‘s dickering power over its purchasers and providers, rising entry barriers, and discouraging competitory competition. ( zhanga & A ; ladob 2001 ) .

2.1 Analysis of competitory forces in BP

Harmonizing to Lauden and Lauden, it is apparent in Porter ‘s competitory forces theoretical account, the strategic place of the house and its schemes are determined non merely by competition with its traditional direct rivals but besides by four other forces in the industry ‘s environment are new market entrants, utility merchandise, clients, and providers. Lashkar-e-Taiba ‘s analyse these forces at British Petroleum.

Rivalry ( Moderate )

The excavation, oil and gas industry is one of the most profitable. Even though there is a strong rate of growing within the industry, competition remains moderate due to the shift costs, size of rivals ( oil companies ) and similarity of those rivals and high monetary value competition ( yergin1992 ) . In oil industry there are few major market leaders. Bain ( 1956 ) describe BP oligopoly construction is characterised by high mutuality between challengers. The determinations of BP are to a great extent based upon the determinations of their rivals. Due to the tight oligopoly market BP compete in it appears that BP they could be conspiring with their rivals on monetary values. The merchandises they sell are really homogeneous ; the monetary value snap of demand is low. ( Lipczynski & A ; Wilson2001 )

Menace of new entrant ( low )

British crude oil ( BP ) operates in the energy industry. This is an oligopoly market – there are a little figure of houses in the energy industry and basking a big market portion. ( Mankiw2008 ) . BP is doing tremendous net incomes as a monopolizer. BP remains able to last in oligopoly market due to high barrier to an entry, capital demand and economic sciences of graduated table for new entrant. In free economic system new companies are ever come ining the market place because of entry barrier are low. But in oligopoly market in which BP runing barriers to entry are high for new companies. ( lauden & A ; lauden2010 )

Buyer Power

The power of purchaser grows if they can easy exchange to a rival ‘s merchandise and services. Product distinction can pull purchaser to exchange another merchandise ( Lauden & A ; lauden2010 ) . Many bing participants on the market ; this makes the purchaser dickering power centrist. In instance of really limited market leader in the market like oil industry in which BP operating. BP dickering power of consumers as purchasers is really limited. BP is runing in the concatenation of oligopolistic retail merchants who collude on monetary values, following barometric monetary value degree on the footing of the market monetary value leader. ( Kolk & A ; llevy2001 )

Supplier power ( high )

BP has no providers, as they supply themselves. The retail merchants purchase their fuel from BP, who extract and refine petroleum from several of their ain locations around the Earth although they are at the clemency of the market monetary value of oil. The monetary value oil is determined by chiefly from the trust of OPEC – the universe ‘s 13 largest oil bring forthing groups ( Charran2002 ) .More item explain about OPEC in appendix 2.

Menace of replacements ( low )

Menace of replacements of oil at the current minute is truly weak chiefly due to the high monetary values of such Solar panels and other alternate energy include high shift costs and long waiting clip, which makes them unattractive to the consumer. Although bloodies and bioethanol besides exist, but there handiness is low. ( Aune, Mohn, Osmundsen & A ; Rosendahl 2010 ) . Even though for BP the menace of replacements is weak, many of the replacements for crude oil such as LPG are already distributed by BP. Harmonizing to BP web site, BP is good prepared for any possible menaces from possible advanced replacement come ining the market, partially because BP have big sums of investing already in research and development to happen oil replacement.


The function of authorities dramas an of import function in commanding the sum of net incomes received from gross revenues of crude oil. Windfall revenue enhancements were introduced by the labour authorities in 1997 on public-service corporation and energy companies such as BP in an effort to cut down the growing of the late privatised industry. ( Anon 2008 )


The debut of new engineering has a ripple consequence, raising new ethical, societal, and political issues that must be dealt with on the person, societal, and political degrees.These issues have five moral dimension: information rights and duties, belongings rights and duties, system quality, quality of life, and answerability and control. ( lauden & A ; lauden 2010 )

BP societal, ethical and political policies focus on five cardinal countries: wellness, safety and environment ; employees ; ethical behavior, relationships ; and finance and control.

3.1 Intellectual belongings and right of first publication:

Intellectual belongings and right of first publication includes: aˆ? Patents. aˆ? Copyrights. aˆ? Trademarks and service Markss. aˆ? Other sorts of confidential concern information such as: – Gross saless, selling and other corporate databases, Business thoughts, procedures, proposals or schemes, – Software bought or developed by the company. – Information used in trading activities including pricing, selling and client schemes. ( Babusiaux2004 )


Misused of any confidential information, including computing machine records, from anterior employers, load any unaccredited package on any BP computing machine, utilizing anyone else ‘s confidential information, copying paperss and stuffs ( including computing machine package ) that are non copyrighted ( for illustration, a authorities study ) , utilizing copyrighted stuffs or third-party hallmarks ( for illustration, parts of sound, picture and off-the-internet or off-the-air recordings ) without specific permission from the right of first publication proprietor, wittingly conflict a valid patent of another party. ( & lt ; & gt ; , NOV2009 )

Quality of life

BP believes in footings of quality of life that, wherever we operate:

Our activities should bring forth economic benefits and chances for an enhanced quality of life for those affected by our concern, our behavior should be a positive influence. ( Browne2003 )


Oil spills ( environment issue )

Oil and chemical spills can be extremely damaging to the environment and to biodiversity, and cause concern loss. In peculiar, marine petroleum oil spills remain a important hazard for BP.

Safety and works operations: Safety of employees, contractors and the populace, societal issue originating at BP. ( Browne2003 )

Insider information

‘Inside information ‘ means information that relates, straight or indirectly, to BP or its securities or to another company or other securities and is non available to the populace.


Buy or sell portions in BP or any other company while in ownership of inside information – even if you ‘think ‘ you are non trusting on it.

Disclose inside information to anyone outside the company, including household members ( e.g. your partner ) , without anterior blessing. ( & gt ; nov2009 )

3.4 Digital systems usage and security

Digital systems and the information processed and stored on them. Who uses digital systems – employees, contractors, advisers and other people with impermanent entree – must guarantee that these resources are used suitably and in line with relevant security policies.


Use company electronic communications systems to convey without mandate: – Confidential informations about persons. – Confidential company information. – Copyrighted or accredited stuffs.

Intentionally entree, shop, send, station or publish: – Pornographic, sexually expressed or sexually exploitatory images or text. ( & lt ; www.digitalenrgyjournal/ & gt ; )

Accurate and complete informations, records, coverage and accounting:

Honest, accurate and nonsubjective recording and coverage of information – whether fiscal or non-financial – is indispensable to BP ‘s credibleness and repute, run intoing BP ‘s legal and regulative duties. ( cambell2007 )


Intentionally do a false or deceptive entry in a study, record or expense claim.

Falsify any record, whether fiscal or non-financial.

Sell, transportation or dispose of company assets without proper certification and mandate.

Privacy and employee confidentiality ( system quality )

BP is committed to esteeming the confidentiality of employees ‘ personal

Information. It is BP policy to get and retain merely employee personal informations

that is required for the effectual operation of BP, or that is required by jurisprudence in

the topographic points where we operate.


Entree to company personal informations without mandate

Provide personal employee informations to anyone indoors or outside of BP without proper mandate ( & lt ; & gt ; nov2008 )


Harmonizing to lauden & A ; lauden, Today IT substructure is composed of seven major constituents which are: Data direction and storage, cyberspace platforms, computing machines and hardware platforms, runing system platforms, endeavor package applications, networking /communications, advisers and system planimeters.

4.1 Analysis of IT substructure ecosystem at BP:

Oil and Gas companies like BP are to a great extent dependent on their IT and webs, undertakings runing from off-shore boring to transit of the concluding goods are completed expeditiously. Oil and gas companies are invariably looking outside of their ain industry, seeking inspiration to cut down cost and better efficiency. ( Helum2006 )

HP Open position direction package was implemented to supervise the work flow and alarm the support applied scientist in instance any detector studies failure because of this execution the applied scientist can get down working on the job within the 3 hr window. BP has implemented the cutting border engineering to run into with its IT substructure demands. BP has installed 2,000 Km of fiber overseas telegram to link the oil Fieldss to the distant waiters. The company besides replaced the traditional UNIX platforms to 64-bit Red Hat Linux systems to heighten treating power of the digital oil field. The digital oil field in BP consists of 3 beds – architecture at the underside, so a center bed where that information is turned into information, so a top bed, informations substructure. At the information substructure bed, applications like SAP, Oracle, SQL are used to garner informations, where the information is utilize for different undertakings e.g. foretelling the machine failures, making historical production charts, calculate sum of oil and gas produced, etc. ( Cross, Earl & A ; Samplar1997 ) In 1999, the BP ‘s main engineering officer ( CTO ) came up with the thought of ask foring outside experts and terminal users to brief BP ‘s top executives on emerging engineerings. These meetings are known internally as “ Blue Chalks ” “ Its 80 per cent about people, 15 per cent about procedures and 5 per cent about engineering ” ( Latin2009 ) .

4.2 BP Future Leading Edge Technology

RFID and Sensor Network:

RFID ( Radio frequence deification ) is a sort of detector. Which sensors several traits, both communicate via wireless moving ridges, contain a consecutive figure and necessitate the same basic IT substructure to aggregate analyse and administer informations to the people who can move on it. ( Robert2004 ) In 2003, a meeting on RFID ( Radio Frequency Identification ) and on detector web was held by BP and after elaborate treatments, it was decided to prove and utilize RFID and detector web engineering in supply concatenation and logistics ; plus life rhythm and care ; and wellness, safety, security and the environment. ( Robert2004 )

Field of Future:

BP has been invariably implementing newer engineering in the oilfield as it is being developed and tested under the programme called Field of Future. The company employs about 30 in house staff and 70 advisers to work on the undertaking. The Field of Future engineerings are profiting over 80 per cent of BP ‘s Wellss. About 2 million informations tickets have been installed to back up production, monitoring by supplying existent clip information to the Operators. ( & lt ; & gt ; may2010 )

Distant public presentation direction:

Remote direction has lowered costs and increased production significantly. Gathering, conditioning, analyzing and pass oning information to and from the oil Fieldss and Wellss are some of the undertakings that are being performed utilizing distant direction package ‘s. “ Incorporate Surveillance Information System ( ISIS ) is a BP proprietary engineering that is at the bosom of production surveillance. ISIS brings real-time field informations to applied scientists sitting in the office, or anyplace else in the universe. ISIS provides uninterrupted monitoring and advanced watchful mechanisms, showing information and analyses that allow BP applied scientists to supervise production operations remotely in existent clip and do better determinations, faster, to turn to any jobs. ( Cross, Earl & A ; Samplar1997 )

Section 5: Information systems security

BP Information Systems Security

BP has been profiting by digitising the oil field and seting Information Technology substructure in topographic point. Certain, there are infinite benefits of IT in the oil industry and it reduces the cost of operations dramatically and increases productiveness but there are booby traps of utilizing the engineering, which are non hidden from these companies as we hear about the cyber-attacks everyday on different companies. A cyber-attack is nil but an unauthorised entree to the company ‘s systems to either bargain valuable informations or execute black undertakings. ( Macarthy2003 )

The Network Protocols:

The US Department of Homeland Security Science and Technology Directorate initiated the US oil and gas security undertaking. The chief ground behind this undertaking was to turn to the lifting concerns towards the high use of Ethernet and TCP/IP protocols in the oil and gas industry systems. Since most hackers understand Ethernet and TCP/IP engineering, therefore the systems are more prone to cyber-attacks. Appropriate trial systems and simulations are being created to to the full prove the systems against different types of onslaughts that may happen in future. The oil and gas control and monitoring systems are non every bit secure as other modern concern webs. ( LOGIIC2007 )

The Email Security:

The bulk of the information in BP is exchanged via electronic mails like any other oil company. The electronic mails from different employee contain different sort of information. The electronic mail waiters are besides really prone to choping due to the handiness of valuable informations in the signifier of electronic mails. Major safeguards have to be taken in order to keep the security of the email systems such as utilizing encrypted protocols ( POPS, IMAPS, etc.

Lack of Knowledge Management:

BP information engineering section employs many in house employees and advisers. When an employee or adviser leaves the company, he/she takes the cognition with him/her. It is really important to execute cognition transportation with either the director or the following replacing. It is besides really of import to revoke any entree to the systems upon expiration of employment of a worker. As acquiring fired or laid off can take an ex- employee to assail the company ‘s systems, which can ensue in concern loss or any other type of ruinous event.

One large illustration deficiency of cognition direction: The biggest catastrophe late occurred is the monolithic sum of oil spill from BP ‘s rig in the Gulf of Mexico. Some experts are analyzing the state of affairs by proving different theories on the available information. Greg Guam from Maverick Media presents his theory of related exposure to the Gulf catastrophe. “ There were multiple “ Panic Buttons ” to hit, even a alleged “ Dead adult male ” fail-safe that should hold been engaged automatically. None of these security processs worked. Harmonizing to BP ‘s Dean Hayward, “ It is the ultimate safety system on any rig and there is no case in point for them neglecting. ” In fact, Minerals Management Service records show that this BOP passed a trial on April 10, less than two hebdomads before it failed. Therefore far, no 1 has been able to explicate it. ( Guma2010 ) ] If we consider the fact presented by Greg it is extremely possible that an opposing company or a 3rd party hacker invasion occurred and managed to carry through this atrocious undertaking.

Impacts of Cyber Attacks:

It is really difficult to gauge the impacts of a cyber-attack because it all depends on the aggressors capablenesss. If some one time hack the full system the consequences can be ruinous. In February 2010, simulated cyber-attacks were practised in Washington. “ The Cell phone webs, land lines and the Internet rapidly went down, followed by the full East Coast electric power grid as mock bomb onslaughts targeted gas grapevines and power Stationss implementing engineerings into a concern theoretical account should be performed with intense attention and the systems must be hack cogent evidence to avoid concern breaks. Where IT can take one company at the top, the cyber-attacks can drop a company within proceedingss of these onslaughts. ( Garg, Cartis & A ; Halper2003 )





Oil Spill


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BP was founded by William Knox ‘s ‘ Arcy in 1909 as Anglo Persian oil company limited. In BP has good established in Europe, North and South America, Asia and Africa. BP ‘s concern merchandise and services are geographic expedition and production gas, power and renewable and refinement and selling. Through these, BP provides its client with fuel for transit, energy for heat and visible radiation, retail services and petrochemical merchandises for mundane points. BP has six maestro trade names presenting excellence across the Earth. Which are BP, Am Pm, Aral, Arco, Wild Bean Cafe and Castrol.BP owns or has an involvement in 24 oil refineries of which 5 are in the USA, and 13 in Europe including 2 in the UK and 6 are in other parts of universe. BP refines petroleum oil to bring forth gasoline, Diesel and Lubricate and besides LPG. BP policies ( codification of behavior ) that are the foundation on which its conducts its concern. The policies focus on ethical behavior, employees, relationships, HSE, every bit good as control and finance. BP concern scheme is to make a civilization to which people from all over the universe want to belong and contributes, where all employees are treated with self-respect and regard and are able to win on their virtue irrespective of gender or civilization.


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