Improving Value in Oil Business with Integrated Operations: A Practical Case of Knowledge Management

Improving Value in Oil Business with Integrated Operations: A Practical Case of Knowledge Management

Cláudio Benevenuto de Campos Lima (Federal Fluminense University, Niterói, Brazil), Gilson Brito Alves Lima (Federal Fluminense University, Niterói, Brazil) and José Francisco Tebaldi de Castro (Federal Fluminense University, Niterói, Brazil)
Copyright: © 2015 |Pages: 18
DOI: 10.4018/IJKM.2015070104
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Abstract

Over the last decade, the oil industry has aimed to improve the efficiency of work processes by redesigning them, in order to provide data and information within the required time, with proper systems and engineering tools demanded to get faster and better decisions, taken by multidisciplinary teams, working in collaborative environments, called by Integrated Operations. Such strategy has been adopted by all oil operators and several service companies worldwide. This article studies a specific oil company in Brazil that is implementing this sort of initiative, with deep impacts on the oil production. As a methodological approach, a study of multiple cases of exploratory and descriptive character was performed at a production unit of this oil corporation. The results revealed that it was possible to apply the Integrated Operations method, allowing the study of intangibles, case analysis and the diagnosis of gaps.
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2. The Oil Industry Background

The oil industry has a high complexity level in decision-making processes, associated with its value chain. The oil production segment has many of its processes linked to impacting decisions in terms of the magnitude of economic values, due to the significant volume of investments, as well as the enormous economic and strategic importance of the product - oil and gas. In this sense, the oil operators have redesigned, especially in the last decade, the main work processes of their value chain in order to overcome numerous challenges related to the complexity of the scenery, the need for data, people integration and the growing availability of information, with strong focus on knowledge management.

Some organizations are still struggling to find the right approach that will allow them to take full advantage of their intellectual assets. Having the proper organizational culture remains an important barrier to knowledge management success. The presence of trust can also be used as an indicator of knowledge management initiative success (Ribière & Tuggle, 2005). The knowledge pyramid has been used for several years to illustrate the hierarchical relationships between data, information, knowledge, and wisdom (Jennex & Bartczak, 2013). A knowledge management strategy involves consciously helping people share and put knowledge into action. However, before an organization can realize the promise of knowledge management, a fundamental question needs to be made: What performance goals is the organization trying to achieve? (Massey, Ramesh, & Montoya-Weiss, 2005)

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