Saudi Aramco The Worlds Most Valuable Company Upgrades

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Saudi Aramco: The World’s Most Valuable Company Upgrades its SAP R/3 System

SBR 1 Saudi Aramco: the world’s most valuable company upgrades its SAP R/3 system 1 Founded 

in 1933, Aramco is Saudi Arabia’s national oil company, headquartered in Dhahran, Saudi Arabia. 

Aramco is managing the world’s largest reserve of crude oil; a humongous amount of 260 billion 

barrels, the world’s 4th largest gas reserves with 279 trillion cubic feet. It is the world leader of oil 

exploration, production, refining, distribution, shipping and marketing. Aramco is the world’s 

largest oil company by production and reserves. The company manages over 112 oil and gas fields 

in Saudi Arabia. It is the world’s top exporter of natural gas liquids (NGL) with over 316 million 

barrels in 2010. Aramco is owned by the government of Saudi Arabia. In 2005, Aramco was 

estimated to be worth $781 billion in 2005 which makes it the world's most valuable company. 

Aramco manages a lot of operational activities that are connected to numerous business processes. 

Therefore, it would have been very hard for Aramco to go without an integrated system that is able 

to understand the oil and gas industry as well as Aramco’s complicated operations. Furthermore, 

other operational activities need to be integrated and monitored e.g., healthcare, fleet of aircraft, 

telecommunications, real estate, etc. Saudi Aramco depends on an enterprise resource planning 

(ERP) system from SAP. To get benefit from the latest releases from SAP, Saudi Aramco decided 

to upgrade their R/3 system to benefit from the functional enhancements which have the potentials 

to render competitive advantage. However, a decision was made to start with the upgrade of the 

hydrocarbon business and then other units and department will follow. The upgrade project faced 

many challenges, but mainly the need to manage a 24x7 global business in different operational 

areas and the need to ensure operational excellence. Further, the aim was to upgrade without 

disrupting day-to-day business activities and to demonstrate the value of upgrade to the other 

divisions. The SAP ERP upgrade project had to be accompanied with two other services from 

SAP: SAP Safeguarding for Upgrade and SAP Active Global Support. IT aimed at a minimized 

downtime in order to comply with the stringent business requirements, and that is why the project 

relied on SAP Safeguarding for Upgrade portfolio of services, which was provided by the SAP 

Active Global Support organization. As a result, SAP managed to finish the project, one month 

ahead of time. “SAP Active Global Support worked closely with us throughout the project, SBR 

#1 helping us define requirements, draw up plans, and optimize the environment to ensure rapid 

implementation”, said Adel Aldoulab, SAP Hydrocarbons Management Division Head at Aramco.

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Saudi Aramco: The World’s Most Valuable Company Upgrades its SAP R/3 System SBR 1 Saudi Aramco: the world’s most valuable company upgrades its SAP R/3 system 1 Founded in 1933, Aramco is Saudi Arabia’s national oil company, headquartered in Dhahran, Saudi Arabia. Aramco is managing the world’s largest reserve of crude oil; a humongous amount of 260 billion barrels, the world’s 4th largest gas reserves with 279 trillion cubic feet. It is the world leader of oil exploration, production, refining, distribution, shipping and marketing. Aramco is the world’s largest oil company by production and reserves. The company manages over 112 oil and gas fields in Saudi Arabia. It is the world’s top exporter of natural gas liquids (NGL) with over 316 million barrels in 2010. Aramco is owned by the government of Saudi Arabia. In 2005, Aramco was estimated to be worth $781 billion in 2005 which makes it the world's most valuable company. Aramco manages a lot of operational activities that are connected to numerous business processes. Therefore, it would have been very hard for Aramco to go without an integrated system that is able to understand the oil and gas industry as well as Aramco’s complicated operations. Furthermore, other operational activities need to be integrated and monitored e.g., healthcare, fleet of aircraft, telecommunications, real estate, etc. Saudi Aramco depends on an enterprise resource planning (ERP) system from SAP. To get benefit from the latest releases from SAP, Saudi Aramco decided to upgrade their R/3 system to benefit from the functional enhancements which have the potentials to render competitive advantage. However, a decision was made to start with the upgrade of the hydrocarbon business and then other units and department will follow. The upgrade project faced many challenges, but mainly the need to manage a 24x7 global business in different operational areas and the need to ensure operational excellence. Further, the aim was to upgrade without disrupting day-to-day business activities and to demonstrate the value of upgrade to the other divisions. The SAP ERP upgrade project had to be accompanied with two other services from SAP: SAP Safeguarding for Upgrade and SAP Active Global Support. IT aimed at a minimized downtime in order to comply with the stringent business requirements, and that is why the project relied on SAP Safeguarding for Upgrade portfolio of services, which was provided by the SAP Active Global Support organization. As a result, SAP managed to finish the project, one month ahead of time. “SAP Active Global Support worked closely with us throughout the project, SBR #1 helping us define requirements, draw up plans, and optimize the environment to ensure rapid implementation”, said Adel Aldoulab, SAP Hydrocarbons Management Division Head at Aramco. The upgrade team at Aramco planned a twelve hour go-live process. It was planned to go-live through the night and early morning during the weekend. To make sure that no disruption occurs, Aramco installed a small-scale version of the R/3 to a limited number of users and partners so that they are able to maintain critical data which will be migrated to SAP ERP upon go-live. The upgrade took 9 hours and remaining 3 were used in system health check. The project resulted in a number of benefits including: reduced maintenance costs, enhanced integration between different business units and functions, enabling Aramco to seize new opportunities as they emerge. It also facilitated flexible application deployment an improved collaboration via the new portal capabilities supported by the SAP NetWeaver® platform. It was reported that Aramco estimated the maintenance costs savings to reach nearly USD 2 million over the next 3-4 years, as a result of the SAP upgrade. Recently, Aramco extended their SAP ERP system by adding Land Management System. Aramco corporate land, including concessions and reservations, is truly enormous reaching more than one tenth of the Kingdom’s land. Aramco’s operations are connected via a wide network of over 5000 KM of utility and pipelines. The company expansion has resulted in land reservations increasing three folds since 1980. As a matter of fact, the oil and gas industry make extensive use of GIS information in support of daily operations and decision making. GIS information is used in production and exploration, site selection, routing, resource allocation, planning and land management. The Land Management System is an integral part of SAP ERP. The system integrates GIS information with SAP ERP information. The system integrates 17 separate business processes as well as 3 systems into a single screen, which one SAP authorized user could maintain through SAP. The Land Management System is able to remotely monitor the land through a change detection algorithm which utilizes satellite imagery to detect changes in land use. Together with onsite filed inspection, the system helped Aramco to prevent unauthorized access and/or utilization of its land. I will post the case study in different file. The question should one page length and should have the following requirements: 1-Introduction 2- body 3- conclusion 4-font : Times New Roman 5- font size:12 point 6- Harvard Reference style No Plagiarism The question: management information system MIS* *Project phases: Phase 1: Critically discuss the MIS components ((People , organization, technology)) Support your response with a figure or picture. ? * *People* •Information systems require skilled people to build, maintain, and use them. •Employee attitudes affect ability to use systems productively. •Role of managers •Perceive business challenges. •Set organizational strategy. •Allocate human and financial resources. •Creative work: new products, services. *Organizations* •Coordinate work through structured hierarchy and business processes. •Business processes: related tasks and behaviors for accomplishing work •Examples: fulfilling an order, hiring an employee •May be informal or include formal rules •Culture embedded in information systems *Technology* •IT Infrastructure: Foundation or platform that information systems built on •Computer hardware •Computer software •Data management technology •Networking and telecommunications technology •Internet and Web, extranets, intranets •Voice, video communications)) ...
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CompEngineerHarold
School: Duke University

Attached.

MIS 1

COMPONENTS OF MANAGEMENT INFORMATION SYSTEMS

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Course code
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Date of submission

MIS 2
Management Information Systems (MIS)
MIS is the use of information and technology, business processes and people to record,
process and store data to produce information needed by decision-makers to run their businesses.
There are three major components of MIS namely: people, organizations, and technology (Bose,
2002: p.89-91). Saudi Aramco Company employs MIS to its day to day activities in different
departments such as a fleet of aircraft, healthcare, telecommunications, and real estate.
People are the users of the information to perform different tasks as needed by the
company. The users are managers, accountants, engineers, ICT experts, and top executives. In
Saudi Aramco, the team of experts were responsible for installation, managing and using the
SAP R/3. Support staff ensures the system is functioning normally. Managers are in charge of
their respective departments to ensure they run smoothly as expected (Laudon, K.C., and
Laudon, J.P., 2016). Employee’s knowledge and attitude affect the way t...

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Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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