Strategic Information System Citizens Gas Company

Question: Discuss about the Strategic Information System for Citizens Gas Company. Answer: Introduction and Overview of the report The term market implies exchange of products and services from buyers to sellers in terms of money. There are many types of industries associated with different products and services and different organizations have different competitive and financial policy based on its work portfolio management. In the sector of oil and gas industries, the change in demand and supply of customer affects an entire spectrum of market; which led the company management to face a huge loss criterion. Based on the concept of gas industry, this assignment has reflected below. In the discussion criteria of CGSs new system the researcher has explained in depth the concept of need for market information, accuracy, use of frequency, requirements of turnaround, support, data environment processing and benefit of cost analysis with respect to an organizational management. Whereas, in identification and incorporation of data of Citizens Gas Company (CGC) system the researcher has manipulated the concept of numbe r of customers, data of weather, factors of heating, forecasting of sales, unit demand of the customer, structure of customer rate, terms of suppliers contract, capacity of storage field and system of priority with respect to company management. The researcher has discussed the overview of the report in the first few stanzas; whereas the identification of the information that must be integrate into company new system to provide appropriate capability of planning and the criteria to consider in specifying the structure and features of Citizens Gas Company (CGC) new system has been sorely explained below it necessary diagram and figures. Overview of the report In the present scenario of the case study, the company name Citizens Gas Company provides the service of natural gas to more than two lac customers. In these company segments, the customer base is divided into three general sectors which comprises of residential, commercial and industrial with its different source of revenue; whereas each segments of customers are defined into different levels of comparison. For instance, the usage of residential customer is highly parallel with the climate conditions; the traditional consumer usage is duly climate dependent; while the use of industrial customer is generalized into certain organization factors. The organization management purchase natural gas from nearly ten pipeline industries with contract tenure of ten to fifteen years. The supply chain management totally depends upon the weathering conditions. The company management uses the amount of contract as the volume of the gas specified in the agreement. The company is working very strong ly to maintain the demands and supply with different segments of customers in the market. The company uses its service portfolio based on the curtail service. In recent years, the company is not being able to control the supply to establish the long term contracts. The customer demand is totally dependent to a number of customers. To overcome the issue; the company hired a director of corporate planning to make the systemization in monthly gas plan during the year; and increase the operating incomes of a company management. Discussion of criteria to consider the specified features and structures of Citizens Gas Company (CGC) new system In context to the relevant case study provided on Citizens Gas Company (CGC) new system, there are various ways to consider the specified features which generally include the following: need for market information, accuracy, and use of frequency, requirements of turnaround, support, data environment processing and benefit of cost analysis (Arvidsson, Holmstrom and Lyytinen 2014). Requirement for information of market: The factors of core strategy that may affect the supply and demand for the organizational management must be unique; their crucial importance must be taken into consideration and the effect of the quantity must be equally quantified. Accuracy: The level of accuracy that is needed for the system mainly determines the required detail level, input data quantity, and the standardisation of the scheme logic (Osterle 2013). While the scheme should be systematically manipulated and designed to issue the match accuracy that is sorely need and sudden care should be taken to manipulate the maximum effort that is not spent in specified areas; when the entire accuracy is minimum to the planning of the environment (Liu and Wang 2014). Use of frequency: The system of frequency must provide the certain directions to the level of sophistication and automation that is required. If the scheme is to be used once in a month to articulate the effort of the latest data; it must be adequate to establish a minimum standardisation system (Burgelman 2012). If it contains varieties of alternatives evaluation then the concept of online system is more efficient and desirable. Figure 1: Structure of Citizens Gas Company (CGC) new system (Source: Chen, Ye and Yi 2013, pp-638) Requirements of turnaround: The requirements of timely and scheduled meetings must be reporting in monthly basis to provide guidance to the degree of level of complexity and automation that will be appropriate (Arvidsson, Holmstrm and Lyytinen 2014). The reason behind this is that the scheme must be used for the purpose of multi planning tactical and multiyear planning; the system should be manipulated and designed for providing fast results turnaround at the end of the month (Turner 2014). Apart from these, certain considerations must be taken for minimising the requirements of data input. Benefit of cost analysis: The adoption and the implementation of a new system in an organizational management must be justified based on a cost benefit analysis (Rothaermel 2015). Data environment processing: Now-a-days, the system of planning requires computer resources with significant amount both in terms of data storage and in processing of time (Fujili 2016). Support: The personnel of company management should be able to assist the scheme ongoing basis. This normally includes collecting and entering various data and information as well as scheme system updating (Melewar, Gambetti and Martin 2014). The burden of support must be in low rate to avoid the lack of system reporting simplifying assumptions. If the system does not maintained and modified; it results a fall in the disrepair state (Arvidsson, Holmstrm and Lyytinen 2014). All the necessary factors mentioned above, is very important for considering and specifying the features and structures of Citizens Gas Company (CGC) new system. Identification of the data that must be incorporated into Citizens Gas Company (CGC) system to provide the adequate planning capability and explanation of each data item usefulness level The identification of the information and the data that may be adopted into company system to provide the appropriate capability of planning includes some major points highlighted below by the researcher. The researcher has explained each and every point with detailed specifications in context of Citizens Gas Company (CGC) management; it generally includes: number of customers, data of weather, factors of heating, forecasting of sales, unit demand of the customer, structure of customer rate, terms of suppliers contract, capacity of storage field and system of priority (Power, Sharda and Burstein 2015). Number of customers: In Citizens Gas Company (CGC) the number of customer plays a vital role in shaping the need of an organizational management. The number of customer must be accountable and projectable in each and every month; unless and until the growth of customer become regular. The base of a consumer count must be use in growth factor of conjunction (Carroll 2015). The company must be accustomed that the count of customer must be broken into categories based on the facilitation of the existing demand (commercial, residential, non heating commercial, non heating industrial) (Agrawal and Cooper 2016). Data of weather: The data that is required for heating must be entered by following a certain process. For the first year, the metrological trends results a cold or warm year. From the consecutive years, the calculation of data weather must be used by an organizational management (Arvidsson, Holmstrm and Lyytinen 2014). As the year passes, the short term forecasts and long term forecasts should be entered strictly to impoverish the capability of predictability of the organization planning system (Turker and Altuntas 2014). Factors of heating: The factor of heating generally implies the conversion of data weather to demand of consumer. They must be provided for each and every type of consumer which uses the concept of heating (residential heating, industrial heating and commercial heating) (Arvidsson, Holmstrm and Lyytinen 2014). Forecasting of sales: The top and the foremost industrial accounts must be forecast individually in monthly five year plan segmentation. The segregation of non heating and heating sales for several consumers must be projected by the class of company revenue (Shapiro and Varian 2013). Figure 2: Identification and Incorporation of Citizens Gas Company (CGC) new system (Source: Liu and Wang 2014, pp-1505) Unit demand of the customer: According to the researcher, the consumption in monthly basis for industrial and commercial consumer may be provided in a variable and constant time; to reflect and highlights the fluctuations of company long term trends. These consumer data and information should be used to accumulate he entire portion of non heating industrial and commercial consumer demand. Structure of customer rate: The rate of customer must provide the information of monthly rate consummation at the level of revenue class (commercial, industrial and residential). The information must be on monthly basis to generate scheduled change of rate by company revenue class (Arvidsson, Holmstrm and Lyytinen 2014). Terms of suppliers contract: For each contract of different suppliers in gas industry the term of contract (starting and the end dates), cost of unit, and monthly volumes conditions may be maintained by an organizational management of Citizens Gas Company (CGC) (Chen, Ye and Yi 2013). Capacity of storage field: The capacity of the gas storage field is needed for determination (Bajdor and Grabara 2014). If the remaining gas is in storage; it can be easily withdrawn via gas supplement supply of pipeline. System of priority: A perfect priority system is provided that need to be establish in case where the organization needs to adhere the service due to the inappropriate gas supply (Osterle 2013). The above five factors are very important for determination of gas demand. The further next points are crucial for supply determination. The successive of last points are necessary to meet inappropriate demand (Arvidsson, Holmstrm and Lyytinen 2014). The valuable data must be considered on a monthly basis because of the certain fluctuation of demand and supply in industry. Class Customers Sales in Cubic Feet Revenues Residential 160,000 80 billion $160 million Commercial 38,000 15 billion $ 25 million Industrial 2,000 50 billion $ 65 million Totals 145 billion $250 million Figure 3: Financial data of Citizens Gas Company (CGC) new system (Source: Turker and Altuntas 2014, pp-840) The above details of Citizen Gas Company (Citizens Gas Company (CGC) have been segregated into three general sectors (residential, commercial and industrial customers). The number of customers have been serially personalised by sales and revenue segmentation (Carroll 2015). The number of customers in residential area avails more service as compared to commercial and industrial area (Podnar and Balmer 2013). The sales and he revenue sectors also get fluctuated by number of customer generalisations. In recent years, the company is not being able to establish the long term contracts. The customer demand is totally dependent to a number of customers (as specified above) (Arvidsson, Holmstrm and Lyytinen 2014). To overcome the issue; the company hired a director of corporate planning to make the systemization in monthly gas plan during the year; and increase the operating incomes of a company management. The researcher has discussed these company outcomes as per the required specification (as mentioned above). Explanation of necessary diagrams and tables of Citizens Gas Company (CGC) company The researcher has maintained and manipulated certain data assumptions and consequences relating to the concept. Based on the above scenario of gas company Citizens Gas Company (CGC) data and information, the following graphs are being drawn. Figure 4: Strategically data of Citizens Gas Company (CGC) new system (1) (Source: Created by author) The above graph shows that the reserves to production ratio are the key indicators of the oil as well as gas industry. The diagram shows the total production of oil based on the last four years from the year mid of 2012 to 2015 (Fujili 2016). It shows the ratio of the oil reserves to the production of the Citizens Gas Company. From the above graph, it is been analyzed that the production of the oil increases after the duration of 6 months (Turner 2014). It shows the reserve to production ratio of the oil. The reserve portion shows the ratio of the total amount of the resources that are to be known to exist within an area as well as it is economically recoverable. In the year 2013, it is seen that the production portion of the oil is approximately 1000; it is the amount of the resources that are produced in one year at the current rate (Arvidsson, Holmstrm and Lyytinen 2014). From the graph, it is been analyzed that the production of oil increases that will continue to produce well in the future. The ration of the production to reserves misleads to the average person that are being expressed on the year basis. In the year 2014, the production of the oil remains same. But in the year 2015, the production of the oil increases to approximately 1200 (Turker and Altuntas 2014). The fact is that from the production rate, it is not to be assumed that in the next year, the production of the oil will increase. It can be possible that it can run out suddenly, therefore the production will decline to zero (Arvidsson, Holmstrm and Lyytinen 2014). The resources show an increase into the rate of production, until it reaches its peaks. Then after reaching the peak, the production declines, therefore it enters into the declining phase. The magnitude of the reserve production ratio is to be related to the annual rate of the production (Carroll 2015). Figure 5: Strategically data of Citizens Gas Company (CGC) new system (2) (Source: Created by author) The above graph shows the total production of gas based on the three four years from the year 2013 to 2015. It shows the ratio of the gas reserves to the production of the Citizens Gas Company. From the above graph, it is been analyzed that the production of the gas increases after the duration of one year. In the year 2013, the total production of the gas is between 600 to 800 (Shapiro and Varian 2013). The magnitude of the reserve to production ratio is mainly related to the annual rate of the production of the gas. It also depends on the geographical features. If it contains varieties of alternatives evaluation then the concept of online system is more efficient and desirable. The burden of support must be in low rate to avoid the lack of system reporting simplifying assumptions. The data that is required for heating must be entered by following a certain process. The further next points are crucial for supply determination. As the governmental policies are the slow production, therefore there is an increase in the reserve to production ratio prolongs towards the reserve life. The Citizens Gas Company injects the gas to increase their production (Davenport 2013). Due to decrease in the reserve to production ratio, there is an increase in the production that comes from the expense of decreasing the reserve life. In the year 2014, it remains same. Finally, in the year 2015, it increases to 800-1000. Due to change in the technology, there is economic changes that are altering the ratio within short period of time. The factors that can influence the estimation of the reserve are defined as optimism (Arvidsson, Holmstrm and Lyytinen 2014). As the consumption of the resources are not constant, but sometimes it is typically increases due to growth of the population. It is seen that may be in the next year, the production rate of the gas decrease, it is possible and then the production will become zero. Due to d ecline into the production of the gas, it declines into the phase of declination. The non-constant values of the production ratio implies that there many be an overestimation as well as underestimation of the reserve life (Chen, Ye and Yi 2013). Conclusion The entire assignment concludes with the broad concept of gas industry associated with the name of the company as Citizens Gas Company (CGC). The researcher has highlighted and reflected several intellectual insights based on organizational management. The company has hired the manager to make succeed in the plan of corporate planning and to make certain assumptions that the company has faced recently. On the basis of company financial performance the company is not being able to articulate the basements of several customers at a glance. The researcher has maintained and manipulated certain concepts of gas industry by identification of the data that should be incorporated into Citizens Gas Company (CGC) new system to provide adequate planning capability and the criteria to consider in specifying the structure and features of Citizens Gas Company (CGC) new system has been sorely explained below it necessary diagram and figures. Varieties of diagrams are illustrated above with respect to company management financial data and fiscal data. The pin point answer has also been answered by the researcher with context to customer data and information. It is very important to adopt and implement new and advance system technology in a company management to make ensure the possibilities of the future outcomes. There is various identification of the data in the company; that must be implemented in Citizens Gas Company (CGC) with adequate corporate planning system has also been reflected and highlighted by the researcher. 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