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Essay / Research Paper Abstract
This 3 page paper discusses some of the changes the new CEO made at BP’s information technology division in the early 1990s. Bibliography lists 2 sources.
Page Count:
3 pages (~225 words per page)
File: ME12_PGbpxit.rtf
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Unformatted sample text from the term paper:
bit more encompassing in this company, it incorporates everything involved in exploring for and producing oil and gas. Like everyone else, BPX had to become more efficient, they had to
cut their costs. John Browne, CEO, believed the way to do with was through information technology (IT). As the new CEO, Browne thought that the IT division had too
many managers, it was top-heavy, he thought, so he appointed John Cross as the General Manager to lead the IT division. By the end of six years, Browne and Cross
had trimmed the budget by 63 percent and reduced employees by 90 percent leading to a savings of $460 million (Cross, Earl and Sampler 1997). The IT division subsequently became
known as the XIT division. As an example of their reduction actions, they began with 170 software applications and they cut that down to 75. Even with such a drastic
cut, there were no discernable differences in the business outcomes. A lot of cost was saved by outsourcing IT projects as well as reducing the number of IT centers BPX
had itself. As so many companies have done, BPX decided to build their IT program around a constant to allow for better integration. They chose Sybase, a database management
program (Cross, Earl and Sampler, 1997). They worked to create standards in the oil industry so information could be shared more easily with partners (Cross, Earl and Sampler 1997). And,
they developed one e-mail system that was used by everyone in BPX no matter where they were located in the world (Cross, Earl and Sampler 1997). In the early
1990s, Browne decided to outsource most of their IT work. They used three vendors< SEMA Group, Syncordia, and SAIC (Cross, Earl and Sampler 1997). They could be integrated on a
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