1.0 Introduction

The oil and gas sector has played an amazing role in Oman’s economy. An increasingly prominent factor that was widely in consideration of Sultan’s extraordinary vision to deal with the challenges. The vision of the Sultan made the country great and increased its value to an exceptional extent (ICV). Sultan wanted to support and encourage the small and medium enterprises (SMEs), and also human resource development as part. With oil and gas production, about half of the gross domestic product of Oman is being maintained. The energy sector plays a vital role in the sultan’s vision to enhance and sustain Oman’s economy. It is not only dependent on the sources or support of the government but also dependent on private organizations in Oman [1].

 

Oil and gas have remained the pushing force or most sustainable element in the economy of Oman since 1967. Oman began the Oil and its byproducts as a commercial product from Oil-wells that year, and since then they have made it a vital resource for them. Oman’s oil market supports the economy which is eventually establishing the concept of modern Oman. In addition, it is the reason behind highly developed infrastructure also supporting massive projects like public education, medical services, and electrical utilities. Low prices of oil may be pushing firms to improve their efficiency, to decrease their market base cost and their workforce. Also, Oman has reserves of natural gas which also increase their economy quickly and also play a prominent role in increasing the vision of the Sultan’s industrial growth in upcoming years [2].

How ERP system can affect the Oil and Gas Sector of Oman and how it can be used to improve the efficiency of the system?

To observe an enhancement in productivity in the Oil and Gas sector of Oman due to RP implementation.

ERP is abbreviated from Enterprise Resource Planning which is among the largely developed and extensive information management system. It is the business process management software when being implemented in the organizations allows a firm or organization to use integrated applications. These integrated application helps to manage the business. ERP system also allows the electronic banking functions which involve technology, services, and human resources. ERP software is a modern and well-developed technique which is typically used by bigger organizations and industry especially having thousands of human resources workforce, as well as multiple functions, merged to facets operation. It also involves managing the sales, production planning, marketing and accounts in a single database and User-friendly interface. Normally, designed to customizing and analyze the data but on small sectors.

ERP has the potential to optimize any system. The idea is to implement the ERP system in the oil and gas sector of Oman and use it in a way that can increase the efficiency of the system.

2.0 Literature Review

Enterprise resource planning is an efficient software platform that can be utilized in the oil and gas sector of Oman to improve the efficiency of the system. This corresponds to the use of the oil and gas sector in related the efficiency of the system. In modern communication, there are changes related to big industries and organizations [3]. The creation of this software is depending upon the need of larger business organizations in Oman.

2.1 Modern Ways of ERP

In modern days ERP systems are implemented by the organization’s own system and software. A number of applications of Enterprise Resource planning have been carried out due to the market deficiency in Oman there are gaps in the technology integration towards the industry [4]. The greater market consists of Oracle, Microsoft, and SAP as the key players in implementing the enterprise resource planning system has been implemented by the organization depending on their size.

The studies made by Alok and his coworkers also stress the role of Enterprise Resource Planning and Oil and gas sector in Oman [5]. The business environment has attracted the competition with the help of increasing the complex activities in business. In order to promote integration and optimization of various business, it is required the planning and decision making should be made in relevance to the system. The ERP implementation prove a new dimension in the oil and gas sector because this will help in the smooth transition of the system between the ERP application in Oil and gas sector in Oman and its effect on the economic sector.

Human resource and inventory are linked to the efficient software to control the important activities in oil and gas sector [6]. There are some challenges present in the Enterprise Resource Planning which can generate a load of information for the manufacturing companies. Enterprise Resource planning consists of the integrated structure where the logistics and sales are a track with the organization activities. The bigger the sector, the more is the chance for ERP system to be implemented.

2.2 Oman Oil and Gas sector

The oil and gas sector of Oman has been under the influence of the ERP systems. This system provides integration and optimization to the various business process which is related to benefits of the organization. ERP system has gained popularity in providing the accurate responses to resource management [7]. ERP system help to automate companies with the help of client-server system. This is the integrated code used in Oman where the challenging and time-consuming parts are removed through the implementation of computerized mechanics.

The author also provides an example for the ERP adoption in Oman business groups which enhance the performance and quality of business with the help of flexibility and responsibility. These systems are widely adopted in the form of a business model which affect the working of oil and gas industry in Oman [8]. The implementation of an ERP system remains a challenge for the timeline because it is a challenge to regulate the oil and gas sector in terms of business relationship.

2.3 Low Budget for ERP

According to the studies, about ninety percent of the systems are regulated with the help of low budget for the ERP systems because the change is only about the industry and process related to Oman business culture. There is some draw present in the implementation of a software system to the oil and gas sector of Oman. This can be related to the complex social issues which may form the solid bases of inefficiency in the organization [9]. The mutual adaption towards the information technology is essential for the ERP systems to be implemented in the social systems of Oman. According to the author, the case studies and interviews tend to provide an important piece of information which is not available on from the organization analysis, this is a complex point but should not be compromised because the oil and gas sector requires an infrastructure. In Oman due to similar environment condition ERP system have a restricted mode of application in the industry.

The Author also had made a strong point regarding the ERP practice and implementation in Oman. This changes the nature of project implementation and provides a solid resource for the management to underline the common issues present for the ERP projects [10]. This affects the planning stage where a different type of instruments is practised under the same concepts of ERP systems.

2.4 Management Information System

ERP systems are categorized in the form of management information systems. These are sometimes perceived as complex programs to implement in the industry where the system selection and valuation have deemed different for the people. A major implementation plan is made in regard with the organizational outcomes and people which are related with the concerned with the department and role [11]. The ERP systems have brought a revolution in Oman due to the financial resources and reduction of risk from the petroleum sector. This helps to start the financial services where the scale of implementation is recorded in the form of software implementation and controls.

In implementing the ERP system there had been difficulties for the petroleum sector in Oman. The obstacles which were present in ERP systems implementation was the technical problems and people barriers. The technical problems in Oman can be accounted towards the technological advancement and its integration with the Enterprise resource planning. The people also stand as the prominent barrier because during installation both of the issues are highlighted in the context of behavioural and organizational changes [12]. The change in the cost and risk also provide an opportunity for the competitors for a solid place in technology investment.

2.5 Improving the Efficiency

The ERP system is related to improving the efficiency of the petroleum and gas sector in Oman. This will have related to the stakeholder’s contribution in providing the flexibility for the whole systems. The main form is related to the company culture and strategy. If the Oman petroleum companies are motivated towards the enterprise resource planning activity, then it can form changes in the process through the enterprise-wide formation [9]. This helps to include more customers towards the existing workflow and data formats.

The evidence from the literature shows that ERP systems are vital to introduce the IT integrators in the oil and gas sector of Oman. This helps to changes the upstream for people where the drilling operations are connected in link with the operation of wells [8]. If the process is controlled with the help of software management, then the business efficiency will improve and this will regard is the most prominent area for drilling.

Enterprise resource planning is an important part of the business management and the research shows how it can be used to increase the efficiency of oil and gas sector in Oman. The system actually facilitates the tracking and management of the information. The system requires money, time and resources for proper results [6]. The main idea for the system implementation is the cutting cost and streamlining workflows. If this system is not planned for the corporate sector then it can have a huge impact on enterprise applications.

When the entries resource planning is discussed in terms of the implementation, SAP often comes directly from the software manufacturer and capitalization. The implementation of ERP system actually helps to provide efficiency to the wide expanding business. Oman oil sector is also a part of the same chain which provides an increasing demand for development [5]. The supplies and the dispatch cannot be controlled with the help of conventional management and there is a need to imply the ERP system in the business.

 

2.6 Lack of Motivation and Commitment

According to the author ERP project is related to resource-consuming activities and it demands motivation and commitment from all the sector of business. The oil and gas sector also need to follow the rules of software to change the environment. The first type of variant is the initial phase of ERP. The package introduced in the SMART technique provides the process mas for the critical steps in an organization. The other step is related to the development of ERP packages in context with the project failures and risk of ERP systems.

According to the work of Maha and co-workers, there are different types of business related to the adoption of E-commerce [13]. Oman oil and gas area is also a similar example where the ERP system is proposed to provide improvement and efficiency. According to the past overview, ERP systems have attracted a lot of investment from the company. ERP system extends the framework towards system boundaries which can be extended with the help of vendors and customers.

The electronic network for buyers and vendors has been made effective with the help of ERP Systems. The map of Oman suggests its importance in the Gulf area as the whole part of the sea is covered with the ports. The method of incorporating the E-procurement network for the ERP based systems is the first step in initiating the real changes in business process. Now the second area is the ERP systems based on the E-procurement [12]. The business with a high volume of the transaction can become substantial for whole oil and gas sector because it will provide innovative features to expand the business.

2.7 Type of Barrier’s

In applying the ERP systems there is a different kind of barriers present. The first barrier comes out in the form of high cost. The Oil and gas sector should have remained prepared for the cost because this will be initial investment for improving the efficiency of the business, the setup cost pertains as the first barrier in applying ERP system to the Oman conventional business [4]. The competitive bidding and inadequate technology infrastructure are also the supportive problems which can stop the path software’s to become a part of the industry, the immature business and lack of trust between the supply chain also provides that ERP systems can provide a bright future for the Oman sector but the problems should be tackled with more care and experience.

The petroleum development Oman is the prominent area which can be linked with the ERP systems. This is connected with the characteristics of sultanate which have different neighbours waiting for the same market for oil. The contrary has a strategic position on the Strait of Hormuz because the land was doubled. Oman is the leading member of the Arab league. This proves the association of 22 countries in relation to the population. The price of oil has affected the exponential growth of in GCC countries. This is the reason why the huge revenues are required for the mega-million-dollar projects [12]. The local population is relatively small and it is also facing a shortage of technology and computer skills. Applying the ERP systems will only focus on increasing the development operation and provide computer-related information regarded the business and corporate sector.

The implementation of ERP system is also related to the Oman vision 2020. This vision is a long-term plan made in relevance to the sustained oil reserves of the country. The main objective of this planning is to incorporate the ERP tool and analyze the result based on efficiency and improvement. The country future also depends on the economic stability and private sector corporation in development of industry-related ERP systems [4].

2.8 General Review of the technique

ERP analysis is basically dependent on the sharing of databases where the organization have made rules and regulation for the requirement. The implementation of the system plays an important role in efficiency as it is the major goal for the organization. The companies in Oman need to integrate the technology in terms of the management and information systems.

The implementation of ERP models is related with the integration and optimization for the process where the transaction was made in regard to improve the efficiency of the oil and gas sector [13]. The main barrier was the technology implementation and this was resolved with classified ERP models. ERP system is designed to study the effect towards the end to end-users and this will the recommend solution to achieve the business goals.

When the enterprise system is utilized under the management concepts there is a benefit for the relevant business sector. ERP systems are introduced in the manner to collect and process information regarding the changes in policy [10]. This also requires towards the efficient response towards the information. The main foundation in the early stages was accounted on the base of Gartner Group.

The implementation of the information system is little complex and it also depends on the sector scope and size [10]. Oil and gas sector size in Oman can be understood from the economic levels. Most of the earnings are related to the oil and gas sector where success rate and results are related to the implementation.

2.9 Software System

There is another point regarding the ERP system because the main change is related with the with replication of old software as compared to the new systems [4]. The old software’s for Ona companies is not working for the required results and the introduction of ERP sources has got the addition of different groups in the market. The vendors which provide the facilities are also prominent for most of the organization depending on the market size and structure.

The proposed system can be implemented in large sectors of Oman. This is the advantages which can aid the overall volume of Oman oil production. The organization which are connected with Oil and gas industry have higher values, therefore, ERP systems are the best possible solution for the companies. This is not the whole as the Oman LNG companies also aid a significant share in the market. This can increase the demand for ERP system as the products are easily available from the market [10]. LNG stands for Liquified natural gas is a byproduct of oil exploration and processing. This continued to become a pat with the final share of the government. The local industries and utilities also focus on product to regulate their production. This demands the role of Enterprise resource planning because the consumer has increased their circle of activity. It is required by the government and organization.

The introduction of ERP in the oil market have causes which should be explained to increase the performance level of the system. Now the bigger circle of production would require the planning of Enterprise in relation to the resources present [3]. The need for ERP has also exceeded because of the initiation of bigger projects in relation to the oil extractions. The companies tend to expand the nature of the services to a higher level. This is the reason the project in Oman has gathered a significant advantage.

2.11 Oman and its Location

The gas reserves present in the different area of Oman also forecast the need for the ERP systems where the reserves and their planning would be related to management systems [9]. The big projects will require the need for extensive management form the companies and the problems will be resolved with the help of software.

Oil market in Oman is related to the introduction of management programs and software which can regulate the bigger project and manage the situations regarding the ERP inductions. This would require a positive impact form people because Oman has its own importance in term of the Oil producer. The sales output for this country has been increased due to the change in management.

Enterprise resource planning has been considered the essential system in gaining a competitive edge over the globalized market [11]. This effect the competition levels in the market. ERP systems are designed to integrate and provide assistance for all the companies which are experiences problem over the management. In Oman due to the increasing demand for oil supplies and a new project, the importance of ERP can be understood even more with the help of the basic concepts of resource management.

According to Young, Most of the ERP systems are designed under the category of the business process. ERP also innovates the conventional practice so that the proper length of time can be achieved under the required results [14]. The Oil and gas market of Oman also requires ERP which is modified in the form of practical intent. The companies and groups in Oman look for modern management. This will be a most positive factor as it can change the implementation policy and provide new results for the Oman country as a whole.

There is a gap in the literature regarding the post-implementation of ERP. The implementation stages are considered as important but the post-implementation area is ignored [6]. In Oman, there is an importance for the post-implementation stage because it will help to provide the initial change to the atmosphere. The final form can be related to the unstable installation where the changes are related to the initial conditions.

ERPs systems in Oman also require a continuous development because the maintenance a support id required in the non-OPEC countries where the technology expansion has been recorded under low levels. This forms the initial changes in the size of ERP systems because the maintenance will have some technical issues which can affect the on-going project and contracts in Oman.

The ERP system can be used to improve the efficiency of Oman’s current management. The first is will be increasing the coordination between buyers and sellers. This will give a positive message to the neighbor that the oil supplies that have been maintained under the software from the trust will also increase [14]. The second part is related to developing a strong portfolio for technological advancement. The traditional system may have tracking systems. ERP can change the traditional system and provide enough amount of knowledge to deal with the potential problem in Oil and gas regulations.

 

3.0 Research Methodology

The qualitative and quantitative research methodologies are used to assess the influence of the ERP system on the Oil and Gas sector of Oman and how this system is influencing the efficiency of the oil and gas sector of Oman. The literature review of the implementation of ERP systems has provided data regarding the challenges of ERP systems and the impact of ERP systems on the efficiency of the organizations. This data is utilized for the formulation of questions that are used for the purpose of the survey. A questionnaire is designed to get the feedback from people about the impact of implementation of the ERP system in oil and gas sector [15]. The survey is conducted with the help of a questionnaire.

3.1 Data Collection and Sampling

3.1.1 Sample composition

The survey is conducted in the oil and gas sector of Oman. For the purpose survey, four big oil and gas companies of Oman are selected. These companies include Petroleum Development Oman, Al Baraka Oilfield Services Saoc, Arabian Industries LLC, and Grand Drilling Petroleum Services. Both print and electronic versions of the questionnaire are used for the survey. The size of the sample is 200 which targets the oil and gas sector of Oman. This size of the sample is sufficient for providing adequate data for the research purpose. The managers and IT experts of the oil and gas sectors of Oman are included in this sample. Approximately 50 managers and IT experts are engaged from each selected oil and gas company. The responses of 200 managers and IT experts from four oil and gas companies in Oman are recorded in both print and electronic versions for analysis.

3.1.2 Primary Data sources

The questionnaire is the primary data source for this research. For the designing of the questionnaire, an industry visit of Petroleum Development Oman is conducted to support the information gained through the literature review of ERP implementation. The industry visit helped in the development of a practical understanding of the issues and challenges faced during the implementation of the ERP system. Moreover, the industry visit has given insight into various parameters that determine the impact of the ERP system on the efficiency of Petroleum Development Oman. The questionnaire is drafted with the help of a literature review and observations made during the industry visit. The responses of questionnaires has constituted the primary data for research [16].

3.1.3 Secondary data sources

The secondary sources of data include the information from websites, journal articles and reviews of IT experts, reviews of oil and gas industry experts, and reviews of academia about the influence of ERP system on the efficiency of the oil and gas sector of Oman. To analyze the influence of ERP system on the performance of oil and gas companies, the annual reports of the four selected oil and gas companies of Oman are accessed. The annual reports of these companies have provided qualitative and quantitative data for the research [17].

3.2 Data analysis techniques

Two fundamental techniques of data analysis are employed to organize, inspect and model the primary and secondary data. The data is analyzed by both quantitative and qualitative data analysis for the deduction of reliable results of the study. The results obtained through data analysis have formed the base of the conclusion of this research. In this research, the primary data consists of quantitative data, and secondary data comprised qualitative data. The quantitative data analysis technique is used for the analysis of primary data and the qualitative data analysis technique is used for the analysis of secondary data [18].

3.2.1 Quantitative data analysis

The responses to the questionnaires are tabulated in two different formats. The first format contains the frequency distribution of data. The second format contains the percentage distribution of the survey responses. The tabulation of data in frequency and percentage distribution formats has helped in the inspection and interpretation of the primary data. Moreover, the primary data is plotted to make it easy to interpret. To simplify the process of analysis, SPSS is used as a tool for the quantitative analysis of primary data [19].

3.2.2 Qualitative data analysis

There are three steps for the qualitative analysis of secondary data. In the first step, data is divided into different categories to increase the subjectivity of qualitative data. This practice has helped in the quantification of non-quantifiable data. Different parameters are identified in each category to increase the objectivity of data. Each category of secondary data is assigned a specific code to make it more interpretable. Max QDA software is used for this purpose. In the second qualitative data analysis, the theme of different categories is identified by critically analyzing each category. Next, the patterns are observed in different categories, and the relationships are developed between different factors [20]. The relationship between various parameters is recorded.

The relationships and patterns are tabulated to make them more interpretable. Finally, the summary of organized data is compiled for critical analysis. The compiled qualitative data is comprehensively and critically analyzed and its relationship is developed with the quantitative data. The trends and patterns of quantitative and qualitative data are compared to make reliable deductions. The comparison of these two different types of data has helped in the development of linkage of the findings with the objectives of the research. The differences and similarities between quantitative and qualitative data are observed and decisions are made on the basis of the relationship between the two.

The analysis of quantitative and qualitative data by employing different techniques and soft-wares has converted the raw data into an objective format. Critical analysis skills are employed to deduce the useful findings of the research. Finally, careful conclusions are made on the basis of findings that meets the objectives of the study and imply productive recommendations for future research.

4.0 Research survey findings and analysis

The questionnaire designed for the survey of the impact of the ERP system in the oil and gas sector of Oman consists of sixteen questions. These questions investigate the integration of the ERP system with the existing system of the oil and gas companies. These questions ask for the opinions of the participants of this research about the influence of the ERP system on the operational performance and efficiency of the oil and gas sector of Oman. The questionnaire takes the responses from the participants in form of affirmation or negation of the statement of the respective question. The questionnaire also provides the option to add an opinion other than the affirmation or negation of the statement.

 

The analysis of data depicts that approximately 66.6 percent of the participants believe that advancement in technology has significantly influenced the oil and gas sector of Oman and approximately 33.3 percent of participants believe that advancement in technology has made no significant impact on the performance of oil and gas sector of Oman. The acceleration in technology advancement has introduced many software and hardware applications that can reduce the operational cost for the organizations. The oil and gas sector of Oman makes a significant contribution to the country’s economy. The incorporation of advanced technology in the oil and gas industries has improved efficiency and reduced operational cost.

Figure 1

All participants of this survey believed that information technology has changed industries. Information technology has transformed the mechanisms of industries. IT has introduced a paradigm shift in the operations of many industries. It has accelerated the operational efficiency of many industries. Information technology has facilitated the effective management of all activities in the industries.

Figure 2

All participants of this survey believe that the development of databases has reduced the complexity of many operations. Previously, the companies have to regenerate record at each step of most operations. This practice increases the cost as well as the time of operation. The databases have minimized the cost and time of operations. The development of databases has facilitated the oil and gas companies in the management of immense data that is required for the day-to-day activities of the companies.

Figure 3

It is the opinion of all respondents of the survey that the enterprise resource planning has revolutionized every industry. Every industry demands efficient resource planning to optimize its resources and improve its performance. The giant companies need efficient coordination of all departments to align each department with the objectives of the organization. The ERP system helps organizations in meeting their goals and objectives. The ERP system facilitates the organization for the smooth implementation of new and existing projects. The ERP system has revolutionized organizational mechanisms.

Figure 4

Approximately 67 percent of the participants of this survey responded that the ERP system is beneficial for the oil and gas sector of Oman. Others responded that the ERP system is not beneficial for the oil and gas sector as the implementation of ERP will complicate the existing systems of the oil and gas industries. They opinionated that the existing systems of oil and gas industries are efficient enough and the incorporation of the ERP system will require a transformation in the organizational structure and strategies. However, the majority of the participants believe that the issues in the implementation of the ERP system can be mitigated and the desired outcome of this system can be achieved in a shorter time.

Figure 5

All respondents of this survey opinionated that the oil and gas sector of Oman should upgrade the database approach and implement the ERP system to optimize their resource planning. The vastness of oil and gas industries demands efficient planning of resources to improve performance. The literature survey on ERP systems implies that the implementation of ERP systems can increase organizational efficiency and it can improve the positioning of the organization in the competitive market. The employment of the ERP approach is crucial for the maximization of outputs.

Figure 6

Approximately 50 percent of the participants of the survey responded that the ERP system is too sophisticated to be used for the oil and gas industries. The literature review of the ERP implies that the ERP system is highly sophisticated and the suitability of the ERP system depends on the size of the organization. Small organizations have less capacity to absorb the ERP system into their existing infrastructure. Moreover, small organizations cannot get the maximum out of the implementation of the ERP system. Large organizations have greater feasibility for the implementation of the ERP system. Mostly, the oil and gas companies have a large infrastructure and have greater capability to integrate the ERP system than the small companies.

Figure 7

About 60 percent of the respondents of the survey believe that the ERP system is an affordable option for the oil and gas sector. The oil and gas industry is the booming industry of Oman. High profits margins of the oil and gas industry facilitate the companies to make large investments on the planning of its resources. The oil and gas sector of Oman has enough capability to bear the expenses of the implementation of ERP system. There is a greater probability of higher rate of return in the implementation of the ERP system.

Figure 8

All participants in this survey responded that most of the companies operating in the oil and gas sector are aware of the ERP system. The competitive environment in the oil and gas industry of Oman has forced the companies to seek approaches that can improve positioning and give them a competitive advantage over their competitors. The ERP system has the capability to build a distinct advantage for the company that is not possessed by the competitors. Many oil and gas companies of Oman are aware of the significance of the ERP system. These companies are seeking the implementation of the ERP system to increase their profitability.

Figure 9

All participants of this survey responded that the ERP system can help in the growth of the oil and gas sector of Oman. The key benefits of this system are that it can efficiently manage the resources and reduce the cost of production. The ERP system can minimize operational expenses and increase the production of the oil and gas sector. This feature will attract new investors and the oil and gas industry will experience growth in investments. About 60 percent of the participants responded that the implementation of this system is economical for this sector. The ERP system has quite small operational and maintenance costs. The employment of an ERP system is economical for the oil and gas sector owing to its minimal expenses and maximum output.

Figure 10

All participants of this survey opinionated that employee satisfaction is crucial for the successful implementation of the ERP system. During change management, it is important to align the narratives of all employees with the objectives of the organization. It is crucial to overcome the internal resistance for the complete absorption of change in the organizational structure and culture. The will of employees is significant for the integration of the ERP system with the existing organizational mechanisms.

Figure 11

About 60 percent of the participants believe that ERP has the capability to remove all flaws of the resource management system of an organization. The literature review of the efficiency of the ERP system implies that the ERP system can improve the resource planning but it cannot absolutely remove the flaws in resource management system. The complexity of resource planning depends on the size of the organization. If the organization is large with complex infrastructure, there is a high probability that the ERP system will perform with maximum efficiency. In small organizations, the ERP system has the greater capability to minimize the weaknesses of the resource management system.

Figure 12

About 100 percent of participants believe that the ERP is not a simple method to be implemented. The issues involved in the implementation of the ERP system demand an appropriate mitigation plan to increase the chances of success. The issues in technology selection, change management, and knowledge management complicate the process of implementation of the ERP. It is a challenging task to integrate, absorb and manage the ERP system with the existing organizational structure.

Figure 13

About 60 percent of the participants responded that the ERP system is not the answer to all the problems related to resource handling in the oil and gas industry of Oman. The handling of resources is a comprehensive and complicated process and the ERP system is not mature enough to address all challenges of resource handling. The ERP system can only assist with resource management. It can only minimize the problems related to resource planning. The strategies of the oil and gas companies can maximize the efficiency of resource handling. The ERP system can only complement the functioning of resource management.

Figure 14

The analysis of the annual reports of Petroleum Development Oman depicts that the implementation of the ERP system has increased the productivity and the profitability of the company. The annual reports of three other selected oil and gas companies show that these companies have experienced a reduction in production cost and improvement in operational efficiency. The analysis of journal articles and the perspectives of different scholars and IT experts depicted that the ERP system is beneficial for large organizations. The reviews of experts show that the implementation of the ERP system in the oil and gas sector of Oman will positively influence the efficiency of this sector.

5.0 Discussion

The importance of ERP systems in the Oil and Gas sector of Oman cannot be denied. This industry has been gathering attraction from the future vision of Oman. The main thought for integrating the small and medium industries under one platform was to enable the companies in Oman to have a competitive edge over the human resource development part. The sources in Oman are linked with the private organization which has added to the role of improving efficiency for market cost and workforce. This change is related to the sultan industrial growth forecasted for the next five to ten years.

The main objective of the study was to affect the oil and gas sector and steps that can increase the efficiency of the system [6]. If there is a need for productivity in the oil and gas sector the ERPS should be implemented in the business context. This affects the banking operation because the technology and services in Oman are closely linked with the oil and gas sector.

ERP software’s a modern tools that controls and managed operations regarding the efforts of the industry as well as the human resource workforce [5]. This is potentially viable as the research shows that in implementing the ERP there are some potential challenges and difficulties. These can only be removed with the help of professional knowledge and a business standpoint. The projects which have been spotted in Oman have a higher nature of responsibility that can only be controlled with the help of ERPs initiative.

The research was carried out in the form of quantitative and qualitative analysis where the fishbone method was used to calculate data regarding the ERP systems. This involved data collection from journal articles and websites. The main point was to learn standard techniques regarding ERP and provide a comparison between the technology available in the market [6]. The importance of ERP systems was also investigated with the help of the quantitative method of research. In this portion surveys and questionnaires were carried out to find the information about Oman companies and their counterparts.

This main advantage was related to the business improvement and aligning the changes in relation to the culture of Oman. As the National language is Arabic, therefore, it was the requirement of the ERP system to implement the multilanguage interface to the desired programs where the final product has to be installed [5]. From the research, it was found that leading ERP software was the ebizframe as a successful achievement in the field of e-commerce. This has helped many middle-east countries to resolve the business issues and it has also determined its role in Oman.

 

6.0 Conclusion

Resource planning is a significant constituent of an organization’s strategy. The efficient management of resources is crucial for the companies that are operating in the turbulent environment of the oil and gas industry of Oman. The employment of the ERP system increases the operational efficiency of the organizations. This research studies how the implementation of the ERP system in the oil and gas sector of Oman influences the efficiency and productivity of this sector. The literature review is conducted on the ERP system to explore the efficiency of this system for resource handling and to identify the challenges during the implementation. The primary data for this study is collected with the help of a survey that included the participants from four different oil and gas companies in Oman. The secondary data was collected from the journal articles and from the reviews of industry experts about the impact of ERP systems on organizational performance.

The qualitative and quantitative data analysis techniques are employed for the interpretation of primary and secondary data. The analysis of primary data shows that the managers and IT experts of the four oil and gas companies of Oman encourage the implementation of the ERP system in the oil and gas industry of Oman. They viewed ERP systems as of extreme importance for the efficiency of oil and gas companies. The analysis of secondary data shows that the implementation of the ERP system has improved the profitability of the oil and gas companies in Oman. The findings of this study suggest that the oil and gas sector should implement the ERP system to boost its growth.

7.0 Recommendations

During the study, it has been found that the implementation of the ERP system is a complicated process. The selection of technology for the ERP is a challenging task as there is no universal model that can satisfy the demands of every organization. Moreover, it is challenging to make the ERP system compatible with the organizational structure. However, these challenges can be reduced by formulating an appropriate mitigation plan. This research can be further extended by comprehensively studying the challenges faced by the Petroleum Development of Oman during the implementation of the ERP system. By analyzing those challenges, the mitigation plan for minimizing the challenges could be proposed for other oil and gas companies that are seeking the implementation of the ERP system.

The mitigation plan of PDO for the implementation of the ERP system can be analyzed to assess its performance. The strong strategies from the mitigation plan of PDO can be adopted and the weak strategies can be improved. An efficient model can be developed for the oil and gas companies that support the successful implementation of the ERP system. A model can be developed for the evaluation of the ERP implementation plan and for the assessment of the mitigation plan. Comprehensive research could be conducted on the efficiency of the mitigation plans adopted by different organizations for the implementation of the ERP system.

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