Information Technology as an Integrative Mechanism in an Organization - Research Paper Example

The impact of Information technology on organizational change and the implications of integrating IT to the management of an organization: A case study of British Petroleum

Abstract

• Introduction

This project aims to evaluate how information technology can be used as an integrative mechanism in an organization. Also, the paper aims at describing the significant changes that have been experienced in the organizational leadership due to the influx of IT into the management requirements. Organizations today are using internet technologies and other information technology innovations as essential features of the management. Also, companies are experiencing both negative and positive impacts of IT integration. Therefore it is critical to evaluate these issues to minimize the negative repercussions of information technology integration. British Petroleum is an example of a company that has undergone its growth through a continuous dependency on information technology. The implementation of IT in the company was through several stages, facilitating the company to achieve a competitive advantage (Cross et al., 1997). The company was also focused on using IT to support their business strategy. Therefore, in this case, we can identify the use of information technology in management and its influence on organizational achievement. BP pioneered in creating a transformation in its performance by implementing new principles and the use of IT function.

• • Research background

The field of information technology has undergone significant evolution such that people depend on it for learning, working, and interacting. Researchers have noted that ICT is an important mechanism employed by various firms and organizations to achieve economic gains (Niebel, 2018). El Kadiri, et al., (2016) claim that the current developments in ICT technology are in terms of the Internet, computer software and hardware, mass and social media, and telecommunication advancements. Information technology can be defined as tools that people employ for gathering, sharing, and distributing information via communication with one another using interconnected networks (El Kadiri et al., 2016). Organizations, therefore, invest in ICT technologies to boost their performance economically as well as boost their production.

Further quality and efficiency can be boosted by investing increasingly in information technology. With better information, technology investment organizations can increase performance through a better supply chain and better logistics. Better logistics involve better customer satisfaction, reduced time wastage, minimized costs for production, differentiation of services, and managing customer relations with supplier issues. Further, the improvements that are availed in information technology have made it easy for companies to make use of various opportunities available to substitute analog processes with modern electronic interchanges.

In the past, it is essential to note that the far eastern countries such as Japan were controlling the business sector. However, increased competition from the American businesses saw America grow into a major economic giant. Several factors can be attributed to the growth of the American economy into a significant economic power. However, technological advancements rank as one of the most significant players of the American economic progress. The use of information technology in America is more intensive as compared to other countries in the world (Avgerou & Walsham, 2017). Also, internet development is another apparent reason for the climb of America into a significant economic power. Information technology, therefore, is a substantial revitalizer of American businesses. Evidence from various researches supports the claim that the investments in information technology in the early 1990s was the primary cause of transformation in the American economy (Gallipoli, & Makridis, 2018; Carlsson, 2016).

The accessibility of digital technology impacts the structure and the management of an organization in a significant way, especially in the value and use of information. Different approaches can be used for the infusion of technology provides an essential field for evaluating how the amount of information technology impacts organizational structure. As a result, it is necessary to research how organizational performance has been affected, mainly due to the introduction of information technology. Mosweunyane et al. (2019) claim that internet technology is an essential factor influencing an organization's corporate success and competitiveness. Internet technology has practical, integrative applications in an organization, and therefore they can be of great use when employed. The research in this paper aims at evaluating these issues on a case study of British Petroleum (BP).

• • Problem statement

Information technology is mainly used to refer to the use of computers in the process of producing, storing, communicating, and disseminating information within an organization. Researchers such as Mauerhoefer et al., (2017), have evaluated the impact of information technology in driving product development and overall business performance. The results indicated that there is a positive relationship between technology and product development, as well as the economic performance of an organization. This study, therefore, supports the evidence that organizations benefit from information technology primarily for the case of British Petroleum. The case study of British petroleum was done to learn whether information technology had a significant contribution to the company's organizational advancement in terms of structuring and economic performance. For the achievement of organizational change, information technology can serve as a significant catalyst. For most companies, it is a challenge to implement information technology.

In the past, it is essential to note that the organization viewed IT implementation as an occasional discrete task that was supposed to be done when the organization installed new technology or upgraded an existing one. As more advancements were being experienced, IT's impact was eminent in improving efficiencies, boosting communication, and the overall decision-making of the company, altering the competitive dynamics and facilitating new business models. Emerging information technology advancements come up with radically new products and services. As a result, the current business environment is pervasive with IT, and the business environment is changing in the way people work and live. IT development is an essential way of inventing new business models from which companies can draw from and employ the strategies, thus achieving a powerful virtual reality. British petroleum is an example of such an organization, and therefore this paper aims at presenting a critical evaluation of the company's dynamics and the impacts of IT.

• Literature Review

This section involves the evaluation of the relevant literature to answer the research question for this study. The reviewed materials, in this case, were selected based on specific inclusion and exclusion criteria. The research chosen materials were supposed to have been published not later than ten years and be found on the topic of information technology. The search engines that were used in the process of searching the relevant literature include Google Scholar and ResearchGate. The main keywords that were employed for the selection of the relevant literature are "Information Technology," "Technology Advancement," "organizational change," and "communication," "management control" as well as "decision making." After the available materials were selected, the researchers read the abstract for further review of the material's relevance to be included in the study. Based on these criteria, several articles were selected, which were then passed on to some experts for further reviewing.

In the current world, IT is regarded as an essential tool for the enhancement of competitiveness in the economy of a country. Various researchers, scientists, and business people have a critical consensus that information technology has vital impacts on the productivity of organizations and firms. However, the realization of these benefits is only achieved when information technology is widely used and spread in the frameworks of an organization. At the same time, there are various critical determinants of IT adoption, and there exist key theoretical models explaining these advances. This research is based on the knowledge that few reviews are based on the comparison of IT integration models and the organization and individual levels. Therefore this review attempts to bridge the gap in the literature by evaluating the theories of adoption models at the organizational standards and presenting various models that exist regarding the regulatory and environmental adoption of IT.

• • Information technology integration through the use of the Internet

With the advent of internets and management information systems such as computers, phones, and software, various businesses have had a chance of transforming from local household firms into international organizations with big names (Navimipour, & Soltani, 2016). To keep up with competition and performance requirements due to various advances in internet commercialization firms are significantly focusing on IT and telecommunication networks to streamline their services and boost their performance. This indicates how information technology has become an essential feature in the business landscape. With this in mind, it is imperative to note that the Internet helps in cutting costs, improving communication, and building recognition through the release of more innovative and attractive products (Ivanov et al., 2019).

One of the leading players in the company's success is efficient communication. Therefore, the Internet allows for increased connection, dispersed landscapes in business, and facilitates proper recruitment and retaining as well as leveraging employees through ongoing communication and collaboration (Attaran, & Woods, 2019). Information technology has a significant advantage in helping for efficient streamlining of conversation both in an external and internal organizational environment. A significant impact of the Internet in organizational performance can be noted in several ways. For instance, advances in internet technology have led to the creation of various software such as Skype, zoom, and GoToMeeting, that allow for online meetings and video conferencing (Sivarajah et al., 2019). This advancement will enable companies to have a significant chance of collaborating virtually in real-time, thus significantly reducing the time and costs associated with bringing clients on site. This also allows them to work remotely. Further Internet allows for firms to connect almost effortlessly with international and local suppliers.

Another fundamental integration advantage of internet technology is that it allows the organization to enhance its competitive edge in the market (Shehata, & Montash, 2019). This also allows for strategic thinking and transfer of knowledge. Through the access and leveraging of social networks as well as a subscription to various databases, companies can assemble and transfer as well as interpret information. Further, businesses can access customers and consumers of their products together with the ability to deliver new and enhanced products. When the Internet is used as a strategic investment, it provides organizations with tools that are efficient for proper evaluation of the market and implementation of strategies needed for competitive edge (Shehata & Montash, 2019).

Internet as an information technology advancement allows for storage, preservation, and maintenance of information through information management. In any business, information management is essential for organizations to store and safeguard sensitive information such as financial data effectively. Therefore, information technology gives organizations an ability to store, backup, and share information for later use as well as achieve protection of the data from authorized individuals (Jin et al., 2018). Therefore with IT, businesses have peace of mind in collecting, analyzing, and storing information for future use.

Implementation of internet technology is an expensive process in an organization. However, the long-run effect of the process is to achieve streamlined company operation and managerial procedures. When online training programs are implemented within an organization's internal processes, costs are reduced, and employees can save time spent outside of work (Soto-Acosta et al., 2017). Generally, information technology allows organizations to do more with less without affecting the quality and value of their services and products.

• • Integration for the case of British Petroleum

British Petroleum is one of the world's leading energy companies, with a mass-energy production of over 18.4 million tons of oil. The company fuels the economic growth of more than 70 countries, and it has an employee capacity of more than 74000 employees. The technological advancements in the world today mean that the world needs more energy produced and delivered in ways that have a minimum level of emissions. As a result, British Petroleum embraces this requirement and has created several strategies to modernize and improve its businesses. One of the ways that British Technology can achieve its goals and unleash its potential is by coming up with ideas for delivering digital solutions through advanced technology. Therefore, the company has an information technology and services team that is at the forefront in ensuring technology delivery and securing access to data and reducing various costs and time consumed in the company's systematic process.

One of the ways that BP can achieve its success in incorporating information technology is by partnering with information technology service providers to accelerate its information technology delivery. This is generally through unlocking critical systems and data, which can empower the company to boost their business and come up with essential technology solutions. Simultaneously, incorporation of information technology in the business can help the company speed up its project delivery and supercharge its innovation.

According to the information available on the company's website we it is clear that the company has come up with an API strategy that helps them to achieve their technology ambition and successful transformation of the company. Much attention in the company has been focused on the role of the Internet in facilitating commerce transactions in the company with various external partners. Web technology has enabled the company to achieve a revolutionary advancement through the boosting of its communication. Simultaneously, the use of internet technology has enabled the company to create a standard platform for collecting and processing massive amounts of data. Further, the company stakeholders have been able to make better and faster strategic decisions for operations. The Internet enables the company to have the capacity to facilitate change and implementation of change.

• • Management of information technology

Information technology management can be defined as a discipline where the resources of information technology within an organization are managed based on the organization's needs and priorities. In this case, the funds are in terms of tangible investments, hardware, and software, as well as data, data facilities, networks, and the staff involved in the maintenance of the system. The responsibility of managing ICT in the organization is a complex process that consists of a set of activities such as budgeting, staffing, control, change management, and organizing. At the same time, other aspects are particularly unique to technology, such as network planning, software design, and tech support. The main aim of the management of information technology in an organization is to ensure quality and value generation within the organization making use of the technology. Therefore IT management requires the alignment of business strategy with technology.

Modern technology and society are becoming very complicated. The traditional ways of life are deemed insufficient, and the new approaches of holistic and generalist and interdisciplinary view have become sufficient. In this chapter, we have discussed some of the complexities that are associated with IT and various systems in general within the setting of an organization. The structure of information technology in the modern organization is very complex, and therefore this calls for a significant process of managing an organization. When an organization continually relies on information within the setting of its information technology infrastructure, this means that the management task of its information technology processes will frequently become complex. The traditional management strategies of an organization were based on the assumption that the systems can be broken down into discrete parts and components that are clear and that have a causal relationship amongst themselves. With the current complexities in organizational management, it implies that the assumption is now invalid.

The management of ICT systems within an organization can only be understood through the systems' interactions with other systems in the organization environment. Therefore the management of information communication technology within an organization can be conceptualized as an open system rather than a closed one. The growth, survival, and maintenance of the organization depend on it. Considering the pressures that are evident within an organization, it is important to note that the management of ICT systems should not be taken as usual. Creating value in an organization is very important, which involves a network of relationships between the internal and external business environment. IT, therefore, plays a role in improving the overall chain of value in the organization. As a result, this increase notes that business and technology should work systematically through a creative and synergistic as well as a collaborative process rather than using a pure mechanistic span of control.

• • A theoretical review and the development of management theory

The modern world has created various complexities in management. There are different concepts, theories, and techniques that are being developed daily in the world with an attempt to solve the problems and issues related to management. There are many factors associated with management, such as human resources, CSR, ethics, values, and culture, among other factors. Management theories are based on implicit assumptions and conclusions (Rosenberg & Ferlie, 2016). Management thinkers with reputation have come up with different definitions of management where for instance, Drucker, (1990) defined management as an organizational process that involves planning strategically, effective management of resources as well as the deployment of human and financial support for the achievement of the firm's assets and measurement of results. On the other hand, Taylor (1992) defined manager as the art of knowing what the company wants to do and ensuring that it is done using the best and the cheapest way possible.

Management can be noted as an organ of the business with multipurpose roles of managing and controlling workers and the firm's work. The functions of the administration are distributed to all the stakeholders within the organization and are not limited to the supervisors and managers (Albers et al., 2016). The management school of thought has undergone a continuous evolution where Max Weber came up with the theory of bureaucracy, (Alatas, 2017), Henri Fayol developed the Principles of Management (Edwards, 2018) and Taylor developed the concept of Scientific Management (Wren, 2011). Among other thinkers, these have been involved in an intensive expansion of the management theory literature and broadening the knowledge field. From their concepts, we note the existent theories in management, such as scientific theory, administrative theory, behavioral theory, and the environmental theory (Saxena, 2019).

Management theories can be highly associated with motivation, leadership, and management of change in the organization. They can be practically applied in practical situations such as the incorporation of information technology in a firm. Management, as noted earlier, takes place in the organization. It has prescribed roles directed towards achieving the company's aims and objectives through the influence of all the stakeholders' efforts. Many of the principles available in the management theories have been absorbed in the organizations today are being developed to cope with the rapid change conditions possible in the organizations today. In ICT management, the employment of Tailor's concepts is essential such as the breakdown of the components of the tasks to develop modes of performing the tasks is very important. This, therefore, calls for the need to train employees to ensure first-class quality within their job. At the same time, using Weber's bureaucracy in the context of organization form is essential in developing the firm's legal authority to have a continuous functioning in the company, which is the founder of various rules.

• • An overview of organizational design theories

Organizational design theories are fundamental and relevant in the process of designing the organizational structure. There are several organizational design theories. In this section, we will evaluate three of them through a review of useful insights that are important in designing the organizational structure. One of the theories is known as a sociotechnical system design, which was founded by De Sitter (1993). He comes up with extensive work and formulates a set of rules and principles for designing and creating a viable organization structure. His arguments are based on the assumption that the sociotechnical approach was practical in transforming the structure of the organization rather than adopting a transformation of workers. He proposed that for organizations to be faced with increased uncertainties and complexities, they need to adequately invest in the organization's redesign to achieve successful thriving. He offered two options that an organization can opt to take, which include increasing the internal complexities of the organization to fit into the environment and restoring the external complexity of the environment by reducing the internal control coordination needs of the organization. This is an essential theoretical perspective in the sense of information technology incorporation. It explains how specific architecture determines coordination opportunities and adaptation of innovation as well as internal and external functioning (De Sitter et al., 1997).

At the same time, Galbraith (1994) proposed an organizational design approach, which is an essential way of bringing order to the complex area of corporate design and the integration of information processing views in an organization. Galbraith (1994) notes that the sociotechnical approach of various systems adopts a bottom-up design, which can also apply to the organization's lower levels. His model can be used in the identification and evaluation of alternative forms of organization. The approach has a close relationship with the contingency approach because it has two necessary conclusions that there is no single best way to organize, and not every organizing way is valid. According to Galbraith (1994), organizations consist of people or groups of people who have a specific aim of achieving a common purpose. These can be made by practicing division of labor, information-based decision making, and continuous evaluation of the processes over time. Therefore, the organizational design is based on the decision-making process that allows a sufficient coherence between organizational goals and patterns evident in the labor division process.

The last theoretical perspective in organizational management is the concept of Carroll & Burton (2012) on the contingency approach. Their view is highly related to the opinions of Galbraith (1994) in that information processing is an integrative concept for the design and management of an organization. Their perspectives are highly applicable in information technology integration because their views are concerned with information processing processes. They, therefore, give relevance in management through a proposition of strategic organization design. The link between Galbraith, (1994) and Carroll, & Burton, (2012) act as a further development of the organizational design. As a result, the two authors advocate for the importance of assessing, analyzing, and diagnosing the goals and infrastructure as well as the strategy and environment of the organization. They give a step by step approach towards the diagnosis and designing of an organization.

From the view of the three organizational design theories presented, it is essential to note that there is a need to ensure a better understanding of regulatory design approaches. At the same time, the methods shed light on the useful insight and practices that are offered by the authors into the management and design of an organization. At the same time, the evaluation presents that the theories are essential consideration whenever trying to implement and design information technology into the organization. Carroll & Burton (2012) are mainly concerned with organizational infrastructure, while De Sitter et al. (1997) focuses on organizational structure. These two concepts are interdependent when it comes to the management and operation of information technology.

• Methods

To ensure an efficient process of answering the research question, a case study research method will be adopted in this study to facilitate useful analysis of the BP Company, its suppliers, and customers. It also allows for an appropriate degree of depth and a focus for the new technology integration following the aims and the objectives of the research study.

• • Research Process

The research process will involve some process which includes carrying out a pretest questionnaire with some study participants to allow for a chance of ensuring that the research questionnaire is clear enough and covers all the items that are needed for the study. Further, the questionnaires will be administered to the managers at different levels of BP Company. These managers include the customer management group as well as the suppliers who have participated in the innovative process of British petroleum. Further, the researchers will go ahead and analyze the questionnaires for the generation of the research results.

At the same time, personal interviews will be conducted with the managers invited in the study. Since various managers will be interviewed in the study, the researchers will be able to evaluate the similarity of their reports. On the other hand, sporadic calls and visits will be done to the organization offices to clarify some specific points in the research that are not clear. This will be effective in ensuring that divergent points from two managers are clarified and that the researchers have a chance of answering the research question effectively.

The study will take approximately two months which indicates that they researchers will have a total of 200 hours of total research work. This time will be sufficient and enough to enable the researchers carry an in depth study of the study topic. Considering the fact that the research questions are complex and extensive having enough time is essential for the researchers to get enough information for answering the research question effectively. Also with enough time researchers will be able to omit all the limitations that are associated with rush during research. With the data obtained from the research the research hypothesis will then be justified.

Due to the fact that this study is a case study, it is evident that only certain situations and cases of the organization will be studied. For this study the researchers will be mainly interested in analyzing the process of information technology for the case of BP. This implies that the scope of study will be revolving around the degree and depth of tech adoption. Further it is important to note that considering the fact that this is a case study the study will be limited in the sense that the study results cannot be generalized and can only be used for the case of BP.

• • Research Design and sample selection

For the development of study cases for this research

3.3 Data collection and analysis

3.4 Reliability, validity and Limitations of research

4.0 Case study analysis

4.1 Background and profile of British petroleum

4.2 Impact on quality of performance

4.3 Summary of the results

5.0 Discussion

Impact of information technology to the organizational performance

Recommendations for achieving organizational change and recommendations for future research

6.0 Conclusion

In the past, it is essential to note that the far eastern countries such as Japan were controlling the business sector. However, increased competition from the American businesses saw America grow into a major economic giant. Several factors can be attributed to the growth of the American economy into a significant economic power. However, technological advancements rank as one of the most significant players of the American economic progress. The use of information technology in America is more intensive as compared to other countries in the world (Avgerou & Walsham, 2017). Also, internet development is another apparent reason for the climb of America into a significant economic power. Information technology, therefore, is a substantial revitalizer of American businesses. Evidence from various researches supports the claim that the investments in information technology in the early 1990s was the primary cause of transformation in the American economy (Gallipoli, & Makridis, 2018; Carlsson, 2016).

The accessibility of digital technology impacts the structure and the management of an organization in a significant way, especially in the value and use of information. Different approaches can be used for the infusion of technology provides an essential field for evaluating how the amount of information technology impacts organizational structure. As a result, it is necessary to research how organizational performance has been affected, mainly due to the introduction of information technology. Mosweunyane et al. (2019) claim that internet technology is an essential factor influencing an organization's corporate success and competitiveness. Internet technology has practical, integrative applications in an organization, and therefore they can be of great use when employed. The research in this paper aims at evaluating these issues on a case study of British Petroleum (BP).

• • Problem statement

Information technology is mainly used to refer to the use of computers in the process of producing, storing, communicating, and disseminating information within an organization. Researchers such as Mauerhoefer et al., (2017), have evaluated the impact of information technology in driving product development and overall business performance. The results indicated that there is a positive relationship between technology and product development, as well as the economic performance of an organization. This study, therefore, supports the evidence that organizations benefit from information technology primarily for the case of British Petroleum. The case study of British petroleum was done to learn whether information technology had a significant contribution to the company's organizational advancement in terms of structuring and economic performance. For the achievement of organizational change, information technology can serve as a significant catalyst. For most companies, it is a challenge to implement information technology.

In the past, it is essential to note that the organization viewed IT implementation as an occasional discrete task that was supposed to be done when the organization installed new technology or upgraded an existing one. As more advancements were being experienced, IT's impact was eminent in improving efficiencies, boosting communication, and the overall decision-making of the company, altering the competitive dynamics and facilitating new business models. Emerging information technology advancements come up with radically new products and services. As a result, the current business environment is pervasive with IT, and the business environment is changing in the way people work and live. IT development is an essential way of inventing new business models from which companies can draw from and employ the strategies, thus achieving a powerful virtual reality. Read More