Saudi Aramco Procurement Process Essay Example | Topics and Well Written Essays - 3250 words

Saudi Aramco Procurement Process - Essay Example The millennium is characterized with information technology as instrument for world wide business expansion, networking and in engaging with business partners for sustainable operations. Information technology also improved communication processes and hastened responses to corporate needs and systematized all operations. For some institutions and companies, this optimized virtual mechanism for complex procedures by thoroughly mainstreaming transactional contract relations. This means that through technology, corporation evolved into certain level of structural sophistication in centralizing internal mechanism and resolving once complex manual procedures, including assertiveness in the interaction of business decision processes. All this are made possible through the development of systematized digitized system of information technology. This essay will attempt to explicate and illustrate how information technology improved procedural procurement engendered organizational readiness in terms of corporate financial and technological resources as well as of its capacity to respond to external pressure due to competition with trading. Transactional relations of contact and procurement are now even done using the internet. It will also attempt to analyze if hard system model befits Saudi Aramco Company’s procurement procedures. Procurement Procedure is a process on how a contract is obtained. It is a mechanism to control the nature, object, expectations, and delivery of outcome based on agreements. It is a universal mechanisms adopted by companies and institutions that are operating in large scale, or in a multi-enterprise level with expensive capital investments but is constantly confronted with concerns on production technologies adaptation, volatile markets and pervasive regulation (Estache & Atsushi (2008). This situation is true with oil and gas extractive industries where there are standards and control mechanism that should be adopted to systematize its operations. This is considered as complexity management. Managing Information System There is a systematic approach used in managing information systems. This approach is technology-focused, process-sensitive, quantitative and qualitative in application and methodical in analysis, procedures, tools and techniques (Dumitrascu, 2006). This is evident in computerized system designed by infotech experts like Cisco. It helped in knowledge management and in systematizing transactions by increasing it company’s corporate virtual realities, although these require persons equipped with knowledge to ensure that the system will be effectively interactive. This means that the person must be knowledgeable too in maximizing digitized information in documentation as well as in technical system optimization to protect it from overload and techie backlog. Complexity management treats all hard structured and soft unstructured problems. Its system is rational, scientific and logical and itâ₠¬â„¢s developed with the assumption that the world is clear out there and can be customized based on our needs (Dumitrascu, 2006). Complexity management can be done using varied diagrams. This can be Spray Diagram, Systems Maps, Influence Diagrams, Multiple-cause diagrams, Sign graphs, and Control Model Diagram. These are explicated as follows: a. Influence Diagram— also known as relevance  analysis or a decision network illustrated graphical and mathematical representation in decision-making. It was developed in 1970s and is now adopted widely and becoming an alternative to  decision tree which typically suffers from  exponential growth  in number of branches with each variable modeled (Detwarasiti and Shachter, 2005 ; Holtzman,1989). ID is practicable for team decision analysis because it allows incomplete sharing of information among team members to be modeled and solved explicitly. The semantic of