IMPACT OF INFORMATION COMMUNICATION TECHNOLOGY ON ORGANISATION PRODUCTIVITY (CASE STUDY OF NNPC TOWERS, ABUJA)

IMPACT OF INFORMATION COMMUNICATION TECHNOLOGY ON ORGANISATION PRODUCTIVITY (CASE STUDY OF NNPC TOWERS, ABUJA)

Background To The Study

ICT (information and communication technology) has altered the manner in which people live, study, work, and associate. According to Tambe and Hitt (2016), ICT is a means through which businesses seek out creative ways of functioning and disseminating information to obtain economic advantages. Information technology, according to Abdallahand (2019), is a multimedia technology that includes the internet, software, hardware, computers, television, phones, email, satellites, blogs, and inter-networking initiatives. The beginning of the ICTs industry is traced to the birth of the internet in the late 1960s and the appearance of the Personal Computer (PC) in the 1970s (Adubifa, 2016). Its development as currently understood actually picked up momentum in the early 1990s. Since then, ICTs have integrated computing, communications and graphics through digitalization. It thrived on websites with the use of broad-band optical fiber lines. It has already made headway into the wireless mode and are becoming more and more personalized. ICTs are a general purpose technology and have wide applicability in various manufacturing and services sectors. It has the potential to affect virtually all sectors of the economy by imbuing greater information and development content in products and processes (Saidam, 2018). More importantly, it has spawned new products and made existing products more versatile. The development of lCTs has emerged to become another factor dividing the developed and the developing countries. ICTs have transformed the world, its potential for reducing poverty and fostering growth has increased rapidly.

According to Loukis, Sapounas, and Milionis (2017), organizations are spending more in information and communication technology (ICT) to boost performance and productivity. Gartner (2018) claimed, in support of this argument, that organizations are investing more in information systems to improve their efficiency, performance, quality, and productivity. It is one of the most important resources in the contemporary business climate. Current business organizations are linked to a worldwide communication network that expedites the transmission of information and business transactions. The worldwide system of communication includes the use of computers, GSM, and tax machines, among other technologies.

The use of information and communication technology tools, ideas, methods, policies, and implementation strategies to business operations has become of basic relevance and concern to all Nigerian organizations, as well as a need for local and worldwide competitiveness. ICT has a direct impact on managers' decision-making, planning, and the quality of services provided by organizations. It has altered the global structure of organizations and their business interactions, as well as the types of new technologies that may be employed to enhance the speed and quality of service delivery.

Clearly, information and communication technology (ICT) is a key growth area in Nigeria, particularly in a dynamic and highly competitive business environment that requires the use of advanced ICT tools to improve efficiency, cost effectiveness, and the delivery of high-quality products and services to customers (Allen & Morton, 2017). ICT is also seen as a tool for marketing, customer engagement, and customer prospecting, as well as for presenting IT services as distinct prospective services for customers (Werthner & Klein, 2017).

In oil and gas industry, the diffusion and adoption of information and communication technologies has aided the management of the industry and its subsidiaries. It has provided a means to improve both upstream operations (crude oil production and exploration) and downstream operations (transportation, refining of crude-oil and distribution of oil products). Through the use of online and e-commerce technology, ICT is being applied in creating awareness and sourcing the best way oil product can be refine electronically. Oil companies in particular adopt ICTs to improve the efficiency and effectiveness of their operations, as well as to aid management decision making. This helps to strengthen their competitive positions in rapidly changing environments. According to Matthew & Ibikunle, (2019), environmental, organizational, and technological factors are creating a highly competitive business environment in which customers are the focal point. Furthermore, these factors can change very quickly. Thus, the growth of any company is tied to servicing loyal customers, improving productivity, reducing costs, increasing market share, and providing timely organizational response.  

However, due to the degree of uncertainty in today’s competitive oil industry, oil companies in Nigeria are operating under increasing pressures to produce more with minimum resources. In order to succeed in this dynamic environment, oil companies must undertake innovative activities such as improving operational processes and continuously reviewing competitive strategies. ICT has a high impact in oil and gas operations. For example, in upstream operations ICTs and related technologies may provide possibilities for expanding proven crude oil reserves, improving the rate of crude-oil extraction from existing wells, and providing further means to discover new wells (UNCTAD, 2006) cited in Abdallahand (2019).

Furthermore, a growing number of corporate organizations also have recognized the high potential of information and communication technologies (ICTs) to contribute to national and social development. Many organizations have implemented the use of information and communication technology (ICT) in order to develop the products and services they offer to their customers. ICT signifies the technological standpoint of an information system (IS) and comprise computing, telecommunications and automation activities. Integrated information systems (IS) have taken center stage in changing organizations. Today, IS are found in several organizational operations e.g. production, marketing, communication, logistics, besides having greatly influenced present living. Modern enterprises largely depend on ICT for gathering and distribution of data and information.

According to Kitur (2016) several organizations including banks, insurance companies, and service companies have adopted ICT and considers it as a key success factor for the reason that it has turned out to be the motivating force that is decisive in the production and delivery of goods and services in those industries. In line with this, Attewell & Rule, 2019; and Boynton, (2016), claimed that organizations are rapidly using information technology to find solutions for business challenges, better the efficiency and effectiveness of decision-making, boost productivity and service quality, attain dynamic stability, and compete in new markets. According to Cerere (2015), organizations have long sought and used technology that improve the productivity and management of their manpower. In fact, he remarked that despite having grown over a lengthy period of time, information technology has emerged as a crucial instrument for the management of organizational activities. In the light of the above, this study seek to ascertain the impact of ICT on the organizational productivity of NNPC.

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