IN320
Strategic Use Of Information Technology
Group 14
Global Communication System – The Home Office - Statoil
Inger Hyllene, Hilde Hatlestad, Mai-Lill Østengen, Mette R. Myhre
An introduction of the Information System and those who uses it.
It is established an agreement between Statoil and the trade union of the use of ”distant work”
in Statoil. The agreement gives the framework around how the units can use ”distant work” as
their way of work. In addition to some important principles and attitudes around ”distant
work”, the agreement says that ”distant work” must be considered from local circumstances.
It’s the manager who decides if ”distant work” can be used.
If the ”distant work” is used there shall be made an individual agreement with the user
according the organisation of ”distant work”. It’s made a standard form for such agreement.
The system demands a PC connected to the Internet. To connect to Statoil inside the firewall
there is used a system of codes.
The system uses an advanced bankcard similar to a calculator, where the users have a pin code of their own. When the pin-code is put in the calculator a 7-numbered code is displayed.
The code changes every 20 seconds. The calculator is synchronised to a server who operates
the security system inside the firewall.
When you are inside the firewall, the system demands an access which every Statoil
employee’s got, an access to your own system portfolio to Statoil’s server or mainframes.
The name of the IT-system is ”Connect IT” (Win Frame).
Those who uses the system:
Every employee in Statoil can get an access if they get an agreement with their manager.
”Distant work” requires that you have the type of work who permitting to use it, not those
who do shift-work, not the janitor, not the receptionist and not the nurses.
The reason for ”distant work” can be various:




geographical
family matter (sick children, spouse…..)
in a project phase
in combination with study
The agreement can last for a shorter or longer period of time.
Side 1 av 6
D:\533580263.doc
IN320
Strategic Use Of Information Technology
Group 14
Global Communication System – The Home Office - Statoil
What the information system does
The system gives you the possibility to do your job satisfactory from home, without being at
the office.
You communicate at the same level as being at the office, but you miss the ”face to face”
communication.
”Distant work” is a demanding way of work. This kind of work gives a hold lot of
possibilities what flexibilities are concerned, but it demands good management and defining
of tasks. It also demands good discipline from the employee.
”Distant work” on a regular basis is new in Statoil, therefore is it important to learn from
earlier experience and adjust this form of work to the local needs within those principles the
”distant work” agreement gives.
There is no regulation on this area from the government, but they are working on it with legal
authority within ”Working Environment Act”.
But Statoil will still point out that the leader and the employee consider these things when it
comes to ”distant work” to take care of it in a good way.
The agreement does not inform on which choice of computer equipment to use for ”distant
work”. Each employee negotiate with their leader to get the equipment they need. Most of
them can use ”IT-skritt” Pace’s as basis-tool. (This is PC’s and software that every Statoil
employee has got for use at home.)
The agreement for ”distant work” includes home office, work in other arranged office
environment in Statoil or other arranged place of work.
This replace the work at ordinary place of work.
”Distant work” can normally practise until 80% of agreed working hours. The rest must be
taken within the office.
This because the ”face to face” communication is an important part of working.
Side 2 av 6
D:\533580263.doc
IN320
Strategic Use Of Information Technology
Group 14
Global Communication System – The Home Office - Statoil
Strategic Information Systems (SIS)
SIS can change the goals, operations, products, services or environmental relationships to
help organizations gain an edge over competitors.
Information Systems can be used to support strategy at these levels:
 Business; low-cost producer, differentiate products, serve new markets
 Firm; achieve new efficiencies, enhance services
 Industry; promote competitive advantage by facilitating cooperation with other firms in
the industry, creating consortiums or communities for sharing information, exchanging
transaction or coordinating activities.
How is Statoil's Information System Strategic?
An effective IS a prerequisite for effective access to and good use of the real resource;
information. Statoil’s home office is a new way to organize business to try to gain competitive
advantages. With home offices the work can be both centralized and decentralized at the same
time. When the employees log on via the Internet, they are online with all their coworkers
(who work at Statoil's own office premises), and they gain access to the same information as
they do (SAP R/3, Lotus Notes, Internet...). The fact that information is "open" and easy
accessible enables a high degree of delegation, reduces the need for detailed supervision and
allows a flat organization. Home working can also yield greater efficiency because
interruptions and stress connected with the work situation are avoided; the employee is able to
concentrate more fully upon the work.
When Statoil chose SAP R/3 as a common platform for the administrative systems, they
developed and implemented an IT strategy; they determined, developed and maintained the
firm’s technological platform.
SAP R/3 is an administrative tool that helps ensure that all employees are well informed and
that the information systems provide a basis for the way Statoil organizes the work.
In Statoil’s recently launched BRA-program (Better, Faster Administration), the objective is
to establish common administrative work processes within the group, which will be supported
through the use of common IT-systems based upon SAP R/3. This is an example of how
closed processes are attempted to be “intercepted”, made more efficient and standardized
through the use of IT. This can help Statoil gain a competitive advantage, but only when the
necessary competence is developed. The objectives of using IT in closed processes will
generally be automation with a view to increased efficiency, reduced time consumption or
increased quality.
IT used in a conscious, goal directed manner could result in a competitive advantage for a
firm. It is not the technology in itself that which adds value, but the way in which it is used in
relation to the firm.
Side 3 av 6
D:\533580263.doc
IN320
Strategic Use Of Information Technology
Group 14
Global Communication System – The Home Office - Statoil
Nina Udnes Tronstad (head of Statoil Data) says: “Statoil has the capacity to develop and
utilize existing and new business opportunities and the capacity to understand the need for the
implementation of improvement measures in periods in which they are making money. (...) In
coming years we will commit ourselves to increasing employees' expertise in using PCs and
the necessary software through the IT-step. As a result of an ongoing strategy process in
Statoil Data, we will also be concretizing main fields of commitment in the time ahead, such
as better integration between IT and business, IT as a natural part of the improvement projects
and focusing upon the application of IT through simple and flexible solutions."
Where does the Information System add value to those who are
implementing it?
"Businesses should try to develop Strategic Information Systems for the value activities that
add the most value to their particular firm"
Home-office
Support Activities
Administration and Management: Electronic Scheduling and Messaging Systems
Human Resources: Workforce Planning Systems
Technology: Computer-Aided Design Systems
Procurement: Computerized Ordering Systems
Operations
Outbound
Logistics
Sales and
Marketing
Service
Primary Activities
Inbound
Logistics
Automated
Warehousing
System
ComputerControlled
Machining
Systems
Automated
Shipment
Scheduling
Systems
Computerized
Ordering
Systems
Equipment
Maintenance
Systems
Statoil Home-office
Statoil Home-office add most value to the support activities included in Administration and
Management and Human Resources.
Home working additionally enables work to be carried out from a wider geographical area.
This offers both employer an employee greater flexibility with regard to organisation of the
business. By moving the work to the employee’s home, the company can save on costs in the
Side 4 av 6
D:\533580263.doc
IN320
Strategic Use Of Information Technology
Group 14
Global Communication System – The Home Office - Statoil
form of office premises, electricity, insurance, etc. these saving will however have the greatest
impact where the employees basically work from home and do not additionally have a
permanent office in the employer’s premises. A shared workplace can instead increase the
costs to the employer.
Home working can also yield greater efficiency because interruptions and stress connected
with the work situation are avoided. The employee is able to concentrate more fully upon the
work travelling to and from the workplace is no longer necessary. However, this will only
reap a full reward for those employees who work solely at home. Those who partly work at
home can experience new stress factors, e.g. travelling to and from to attend meetings.
Employees who base their life upon home working in combination with looking after
children, for example, can actually end up being more greatly interrupted than at the
workplace.
There can additionally be a risk of the real working hours becoming longer. This is especially
a factor for employees who work at home in addition to their usual work in the employer’s
premises. Home working opens up the possibility of producing work results within shorter
deadlines, because time which was previously “forced” relaxation can now be utilised. Where
rules which are intended to protect employees against excessive working hours are
circumvented in this way, it is dangerous.
An advantage with IT-based home working is that employees who have become permanently
ill or injured have a chance to carry out some work in the home. They are thereby able to
maintain greater contact with the workplace than would otherwise be the case. This must
nevertheless be seen in relation to the risk that the employee might feel pressurised to make a
work contribution at the same time as she or he is legitimately on the sick list.
One of the greatest drawbacks with home working lies in the employee’s isolation. This is
particularly pronounced for employees who work exclusively at home. Work communion and
social intercourse with colleagues is obviously reduced. Reduced contact can make it more
difficult to keep abreast of what is happening at the workplace, professional discussions, etc.
it might be feared that the employee might diminish his or her job and career opportunities as
a result of less direct contact with managers and colleagues,
New work forms as a consequence of IT will become a reality. It is therefore important that
the challenges are discussed and clarified at the earliest possible moment, such that we can at
the forefront of development in this field.
Relocate the work rather than the people.
Developments within IT now mean that work can be carried out on a computer at home, while
at the same time allowing communication with employer and colleagues over the data
network. There are now considerably greater prospects than previously of this work from
being able to be integrated as a natural link into the rest of the business. In work with
organisation development, the possibility also exist of utilising the technology to relocate the
work rather than the people.
Employees who wish to set up a home office particularly emphasise the need for flexible
working hours. The employees are able to tie the work in with other activities which are to be
carried out, e.g. child supervision.
Side 5 av 6
D:\533580263.doc
IN320
Strategic Use Of Information Technology
Group 14
Global Communication System – The Home Office - Statoil
Technology facilitates
Information and communication technology is a facilitator.
 The accessibility of internal and external information that facilitates management and
control of all activities independent of time or place. It also facilitates external
information about the community, the markets the customers, partners and
competitors. This availability of information has facilitated the use of information as a
production resource in a completely different way than before.
 New work processes are possible through the use of information and communication
technology which changes the cost effectiveness in the entire scheme of production
logistics. We can perform our tasks at home, in the workplace, with our partners or on
holiday.
 The new work processes create new software that makes it possible for people to be
linked together in new ways. Somebody working with a problem in Oslo can be asked
to contact somebody studying the same problem in San Francisco, or the system tells
of information at various sources. Examples of such tools are Ibex, Web Ware and
Lotus Domino.
 The new work processes are based on a combination of continuous learning and
innovation. This has actualised the discussion about organisational learning, that is,
the organisational forms that promote and inhibit learning and innovation.
Value Analysis of the Statoil Home-office
In 1997 there was a pilot project initialised by the IT and FT DT to test the values of Homeoffice for Statoil. They where focusing on the following questions:







Can it work as a working method?
Does the technology work?
How is the follow up and contact officiating?
What is needed within office supplies/helpingaids (own demands/ Statoil demands)?
How is it evaluated bye the emloyees and leaders?
In what degree will the problemsolving be affected?
How is the support working?
It wasn’t the technical sollution that was the interresting part in this project, but the value of
the work done by the employees home compared to staying at the office. Could they present
the same amount of results?
Home office as a working method
The results of the analysis shows a positive attitude to the home office, and it will most likely
work as a working method within Statoil.
The analysis also shows that most of the employees see the home office as a supplement to
the ordinary way of working, and thereby do not wish sto have the home office as an
alternative to or behalf of the office place. The demand for flexebility, efficancy and a
demanding job combined with the wish to see more of the family, which is the most important
reasons for the coworkers wanting to work at home. The analysis also show that the home
Side 6 av 6
D:\533580263.doc
IN320
Strategic Use Of Information Technology
Group 14
Global Communication System – The Home Office - Statoil
office rund best when it’s well prepared and organized. It’s presumed that clear boudaries will
make it easier to devide between work and home life.
Technology
The project used WinFrame-communication from IT-steps PC to the Statoil net. This was
working satisfactory most of the time, but there was problems with slow transmissiontime and
brake offs. For some of the users there has been a problem with applications and systems not
beeing reachable through the WinFrame. There was also a wish for printing oppertuneties.
Phonesollution
The majorety of the users had a phonesollution with forwarding from the officephone to the
homephone through Voice Mail. The users was only medium satisfied with this sollution, and
a sugestion of making a direct connection to the homephone was made after this analysis.
Office supplies/ helpingaids
The users did not get extra office supplies and helpingaids. Most of them had the nesecary
equipment, but some where asking for office chair, printer and a file cabinet. Some also
pointed out that it could get to be expensive to pay for ink to the printer for theselves.
Follow up and contact officiating
There was no remarkable change in the change of follow up and contact with the leader,
coleeges or external contacts for the home office users. It may seem like the the amount of
homeworking should not exeed 2-3 days a week. It importaint to have a good planning, clear
appointments and good goalmanagement to have a benefint of the home office.
The attitude for the home office among the workers and the leaders was very positive, and
they all seemed to think of this as a good way of working.Only a small percentage was
negative to the home office sollution (3,2%).
Changes in the way of work / problemsolving
The analysisi show little or noe change in the way of working and problemsolving. The users
who is working at home has adapted to the way of work in the organostaion, and half of the
users did not seem to think that it was neccesary to change the way of work or routines within
the unit. This may be because of the users seeing this as a supplement and not as an
alternative.
Support
There was little foundation to say anything about Statoil’s support for home office users, since
the analisys did not include this question of the technical information about the WinFrame
sollution. But there was only a small part of the user group who thought they would need
support to the home office.
The result of the value analysis shows that most of the users would use the home office
sollution while working for Statoil, but only 1-3 times a week. The value of work or results
does not decrease because of the home office. The value of prosperity actually increased
during this testing period.
Side 7 av 6
D:\533580263.doc
IN320
Strategic Use Of Information Technology
Group 14
Global Communication System – The Home Office - Statoil
Reference:






Laudon, Kenneth C. and Jane P. Laudon, "Management Information Systems" Sixth
Edition.
Statoil's website at: Http://www.statoil.com
Citrix website (WinFrame) at: Http://www.citrix.com/
Class notes by Judith M. Danielsen
Is it working? Working from home at Statoil, Norway
European Management Journal; London; Oct 1999; Venkatraman, N; Tanriverdi,
Huseyin; Stokke, Per;
Internal papers from Statoil dated 1998-09-10
Side 8 av 6
D:\533580263.doc