Sunday, April 20, 2008

Exxon Mobil: Focus on Flexibility

Exxon Mobils's ultimate payoff from standardization isn’t just cost savings from achieving economies of scale but, also from the efficiencies made possible by adopting consistent platforms and business processes add flexibility to the business by allowing rapid movement into new markets. Exxon Mobil is also able to adjust workloads among offices worldwidewhich offers the company a competitive advantage.
However, with a profit of 20-40 billion since 2006 Exxon has the ability to add flexibility to its IT and can move away from it's fixation of standardization. Exxon Mobil does support the use of leading-edge, best-of-breed technology when the business value is high and the technology can be narrowly deployed. It is a constant balance you have between sustaining these standards that give you the flexibilities and economies of scale also being responsive to the needs of the different business lines. This has been one of the reasons Exxon Mobil has continued to be the industry leader.
What is interesting is the fact that most companies in the oil industry invest 1% of their total revenue in supporting IT. A small value compared to other industries that are up to 6-8%.

http://www.computerworld.com/mobiletopics/mobile/story/0,10801,69187,00.html

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