Part A. Introduction
Knowledge management is a multidisciplinary process of creating, gathering, disseminating, managing, and using knowledge within an organization. It involves identifying, distributing, and enabling the adoption of various insights, information, and experiences of an organization to achieve the set goals and objectives (Ferreira et al., 2018). Knowledge management systems entailentail the software platforms, organizational processes, and technologies organizations use to capture, store, share, and manage the organization’s insights, information, and knowledge (Tiwari, 2022). They include collaboration tools, research and insight libraries, and customer service knowledge bases. In recent years, non-profit organizations, large corporations, and public institutions have increased their efforts in knowledge management to remain competitive and succeed in achieving their goals and objectives (Novak et al., 2020). Arabian American Oil Company (ARAMCO) is one of the corporations that has enhanced its efforts towards knowledge management in recent years. The global oil producer has realized that knowledge management is essential to managing its human expertise, decision-making, innovation, and operations management.
Brief Description of Saudi Aramco
Saudi Aramco is a state-owned oil company headquartered in Dhahran, Saudi Arabia. The company was founded in 1933 following a concession agreement between the Standard Oil Company of California and the Saudi Arabian government (Kavthankar & Perepu, 2021). It began drilling operations and commenced commercial oil production in 1938. Aramco expanded rapidly across Saudi Arabia and globally over the next decades. Today, it is the largest and most profitable oil producer in the world (Weijermars & Moeller, 2021). According to Weijermars Al-Shehri (2022), Aramco generated 9.2 million barrels of oil daily in 2020. In that fiscal year, the company generated a net income of $49 billion from oil sales despite low demand and volatility in the oil process during the Covid-19 pandemic. Aramco’s profitability has continued to soar since it went public with an IPO in 2019. Weijermars & Moeller (2021) indicated that Aramco has recently eclipsed the world’s most valuable companies, such as Alphabet’s Google and Apple, in value and profitability. Aramco explores, produces, processes, and distributes crude oil natural gas, and petrochemicals. It operates through a network of air refueling sites, processing plants, and pipelines (Kavthankar & Perepu, 2021). Aramco also has international joint ventures and subsidiaries in Europe, North America, and Africa. However, the management and monitoring of Aramco has remained under the Supreme Council for Petroleum and Minerals and the Saudi Arabian Ministry of Petroleum and Mineral Resources despite going public in 2019.
Description of the Knowledge Management System of Suadi Aramco
While harnessing various capabilities emanating from recent technological advancements, Aramco has embarked on a well-designed and structured knowledge management system. The company’s management recently realized that managing its organizational information and knowledge was critical to its success (Alghamdi et al., 2021). Aramco has installed an important knowledge management system known as ShareK (Share Knowledge) to help distribute, gather, use, and manage knowledge in the company (Bhatti et al., 2022). Customized in the Microsoft SharePoint, ShareK assists in sharing and managing information and reducing redundancy within the organization. It integrates several strategies, including knowledge harvesting and a collaborative environment. The system has also integrated information and communication systems in its operations to eliminate the fragmented knowledge and information flows (Bhatti, Alyahya, & Alshiha, 2022). It also has social and technical perspectives involved in developing the company’s capabilities. ShareK’s structure is also critical to the company’s knowledge management. It is designed to encourage sharing and collaboration and allows flexibility. ShareK’s database encompasses customer knowledge, process procedures, product information, and competitive intelligence (Alyoubi et al., 2019). These knowledge repositories offer the company better understand its progress and potential. The American Productivity and Quality Centre (APQC) recently recognized and awarded Aramco’s Project Management Office Department (PMOD) knowledge management process (Aramco Life, 2021). APQC noted that Aramco’s knowledge management system has better information and expertise access, engages and recognizes employees, and continues to develop.
Major Tools and Techniques Used to Capture and Disseminate Knowledge at Saudi Aramco
Saudi Aramco’s ShareK uses different tools and techniques to capture and disseminate knowledge within the company. These include knowledge retention tools, on-the-job training, and shadowing. The system knowledge retention tools such as knowledge bases, wikis, document management systems, and learning management systems are integrated into its operations to ensure the shared knowledge is retained and easily retrievable and accessible when needed (Krajčovič, Gabajová, Matys, Grznár, Dulina, & Kohár, s2021). The company also uses on-the-job training as effective tool to capture and disseminate organizational knowledge to its new staff (Ode, & Ayavoo, 2020). Under this approach, trainers continuously offer various regarding the company’s operations, goals, vision, and plans to the new employees. It also assimilates the employees into the the company’s culture and way of operations. Shadowing is the other essential knowledge management technique that Aramco’s KMS embrace. It entails consciously passing on knowledge and information gained through exposure to the job (Rony, Lubis, & Rizkyta, 2019). The knowledge is passed as one observes and learns from another person’s mastery.
Importance of Knowledge Management to Saudi Aramco
The KMS at Saudi Aramco is essential to the company’s success. Firstly, it is accessible to all members of the company, facilitating cooperation and collaboration among employees, managers, and other stakeholders (Alghamdi, Ng, Ho, Ramachandran, & Abdulsamad, 2021). Knowledge and engagement communities developed in the system have fostered informal and formal relationships within the company, helping in the development of solutions to challenges facing the company. The system has been essential and strategic to the enhancement of Aramco’s competitive advantage (Alyoubi, Alyoubi& Almazmomi, 2019). It also assists the oil producer in gathering, documenting, storing, and sharing the company’s experiences, insights, and knowledge among its stakeholders. Aramco’s managers are also using knowledge mapping to acquire information from the company’s subsidiaries and ensure the company’s goals and objectives are pursued and achieved.
Major Challenges Facing Saudi Aramco in Saudi Arabia to Implement Knowledge Management Systems
The major challenges facing Saudi Aramco in implementing its KMS in Saudi Arabia include continuous technological changes, strict government regulations and control, demotivated workforces, and outdated regulations. Continuous technological developments are challenging to sustain to most firms in Saudi Arabia (Alshammari, 2020). As a result, the company’s KMS remain outdated and become vulnerable to cyber-attacks. Secondly, the Saudi government has imposed strict regulations on the company’s operations due to its shared ownership of the company (Albassam, 2019). This prevents sharing particular confidential but essential information to the stakeholders via the KM systems. Unliberal labour management in Saudi Arabia is demoralizing several employees (Alshammari, 2020). Low motivation and morale limit the employees’ commitment to various KMS aspects such as information gathering, documentation, and retention. These challenges are making it difficult for Aramco to implement its KMS in Saudi Arabia.
Part B. Recommendation and Conclusion
Saudi Aramco should consider partnering with the renowned tech and IT firms to automatically update its KM systems as the technologies advance. This will help eliminate the outdated technologies in the company’s KM and mitigate any potential cyber threats to the its KM systems. The company’s management should lobby with the Saudi government to exempt the company from local legal restrictions due to its multinational and IPO status. It will ensure the firm is consistent with its global partners and competitors. Aramco should standardize its employment terms and conditions. As such, it will eliminate the local employment barriers and issues, bolstering the employee’ morale.
Knowledge management systems have proved crucial to organization’s success and competitiveness in the contemporary corporate world. They ensure firms’ information and knowledge are effectively identified and captured, stored and retained, distributed and utilized in the achievement of the set goals and objectives. They also ensure the information are ready for the planning and efficiently used in operations and implementations. Despite having a recognized knowledge management system, ARAMCO is implementing various measures to improve the system and maximize its use. The company is likely to experience greater innovations, developments, and growth if it effectively addresses the current challenges facing its KMS.
References
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