Author: Andrew Alotei Allotey
PhD Candidate, Business University of Costa Rica
Email: andrew.allotey@gmail.com
Abstract
In the pursuit of every business venture, be it profit or non-profit, there is a complementary product of relationship. That is to say that once there is the creation of value targeted at people or the organization, there has also been created a need for information flow. Most large oil companies are known as being “integrated” because they combine upstream activities, which include exploration and production, with downstream operations. Some prefer to divide downstream operations into mid and downstream, with the refining process taking place midstream and the distribution occurring in the downstream phase. Businesses of oil companies run in a chain and the flow of information is deemed important. Oil Marketing Companies (OMCs) in Ghana operated as a loose organization for many years. However, in October 2003 an Association of Oil Marketing Companies (AOMCs) was registered with the adoption of a Constitution by all it Members (Association of Oil Marketing Companies of Ghana, 2011). The formation of the association has improved the level of integration since one of its main duties is to provide coordination between the Association and all the major Stakeholders in the Oil Industry, the Ministries and other Government Agencies.
The marketing and distribution of petroleum products takes place on a vast, global scale as hundreds of millions of companies and individuals buy these products. In Ghana alone, the association of oil marketing companies of Ghana has at least 51 members as at the beginning of the year 2013 and they believe communication and information sharing amongst members can improve their operations (GNA, 2013).
Information flow is seen to be the corner stone upon which organizational activities completely rest and if ignored or misused would be destructive (Mason-Jones et al, 1998). In the downstream or oil marketing industry, particularly the established companies, there seems to be an awareness of the need to devote attention to organizational communication and information flow. Relative to most industries, OMCs require dedicated attention to the stages in production since there is a wide range of specifications, technical language, literal multiples in quantity produced and strict deadlines (Mitchell, 2012). Distortion in information flow, either by the source or receiver, can be very costly, both to the client or service provider and this has given way to the use of information systems in most industries in the world (Larson et al, 1996).
It is clear that the application of information systems in the supply chain management process use technology to more effectively manage information flow (Subramani, 2003). It is vital that modern businesses including OMCs in Ghana will adopt or continue to use emerging technologies that can help improve their operations but can it be said that OMCs in Ghana feel motivated to use information systems in their day to day operations? Some organisations apart from the OMCs believe it is not necessary to even use information systems due to some perceived ideologies. They are challenged by the problem of the level of influence such technologies has on its productivity. Others believe it must be weighed to ascertain whether such technologies can even be improved whiles the company sees growth in its operations.
The use and usefulness of information systems vary in many ways. Previous research has attempted to establish causal relations between prerequisites for use, such as technical quality, information quality, and use and user satisfaction (DeLone & McLean, 1992). Others have concentrated on the relationship between user participation and use, or other indicators of system success but it will be important to also know the influence the role of information systems play in supply chain management especially in the operations of OMCs.
Keywords: Management Information System, Supply Chain Management, Procurement Management
