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GENEX FUELS
Evidence Used by the CEO
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The CEO is using plenty of evidence to suggest that Genex is not using technology in a
competitive fashion. In general he points out that the company has not been as “agile and
responsive” as it needs to be. He points to the negative attitude of the IT personnel that always
insists on a new technology not working out for the company in thwarting all his requests and
plans for improvement.
Other derivative evidence is brought forward by the company’s CIO, Devlin, pursuant to
the CEO’s request for implementing SAP. Devlin notes that the company uses, “every piece of
hardware and software ever produced”, making integration and thus competitive usage of
technology harder. COMC was not a synchronized system with MAAS, adding to the
difficulties. Then there are difficulties related to integrating PriceOne, the old and obsolete, yet
absolutely essential software in the oil industry. There was also irrelevant data piled up in the
PriceOne database. Besides it is also going to be very expensive to modify code on the PriceOne.
It is also revealed that the information that the company possesses is for the most part not
automated. Therefore data is stored on paper and microfilm, of which 2 million different pieces
exist. Over a hundred thousand tapes of data – some hailing from 1940 exist as well. Analog
tapes, magnetic reels, cartridges and optical discs store the company’s seismic data worth billions
of dollars; this information is stored across five physical locations. This makes it harder to access
this information as data must be physically shipped and there is not enough time to process this
information for a sale.
Need for Sandy
GENEX FUELS
The need to hire Sandy cannot be classed as a mathematical decision of yes or no. Sandy
was most definitely not needed to reveal to Devlin that the technology at Genex was a mess. He
already knew as much, when Sandy says that, “the biggest problem you face at present is the fact
that you have absolutely no standards and no integration.” However the firm does appear to need
an expert like Sandy’s conclusive notes about the need for change. Sandy also helped pinpoint
that PriceOne is a liability because of its lack of synchronized operations and hard to upgrade
algorithms. Sandy also brought outside prerogatives to the table: he brings some context by
saying that Genex was not alone in the oil industry to not have updated their systems. He says,
“and like most oil and gas companies you have automated very few of your information assets as
other types of organizations have done.”
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Implementing SAP
A SAP enterprise resource planning software like SAP R/3 may be used. From end users
to the technical support, this is a massive, universal and all encompassing effort. Designing IT
architecture is the first and most important step in SAP implementation efforts. However some
amount of change management may also be required to get the employees mentally ready.
Internal and external, one time and recurring costs are analyzed in a cost of ownership analysis.
A cutover plan needs to be laid out and executed for transitioning to the new system.
A data center would need to be created, where data from all of the non-electronic systems
needs to be digitized, indexed and archived. There will be cloud backups to ensure that the data
stays safe. An all inclusive solution stack is needed to ensure that all this data can be integrated
in any analysis. A stress test plan will help point at the shortcomings and difficulties in the
system. A training plan for each of the the three divisions will be needed to fine tune the training
GENEX FUELS
process.
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