Title:
Towards An Effective IT Governance In The Petroleum Industry
Abstract: The petroleum industry has a unique nature due
to the non-renewable energy sources and commodity nature of the final product.
Despite having invested billions of dollars on its information technology
(IT), one could argue that the full benefits expected from such investment
are yet to be delivered. This paper examines IT Governance as an effective
method of optimizing the performance of these IT initiatives. Corporate disasters
like Enron, Arthur Andersen, have resulted in legislation such as the
Sarbanes Oxley Act in the US; raising the bar for corporate governance standards
and accountability. The need for an effective IT Governance under the realm
of Corporate Governance in the petroleum industry is expressed in the paper.
The paper proceeds to examine IT Governance mechanisms such as decision-making
structures, alignment processes and communication mechanisms as an effective
method of complying with standards and leveraging IT to maximize and sustain
business advantages. Lastly, the implications for the petroleum industry
are discussed and some suggestions are made to enhance the effectiveness
of IT governance within the organization.