Model Development of Information Technology Value for Downstream Petroleum Industry

Until today, industries know about their Information Technology (IT) spending year by year. Those industries calculate and understand that the spending always grows. The problem is they only know that their IT spending is just costs and no effect to performance in term of revenue. This study aim is to create model that can explain relation between IT spending and industry's performance. The research process employs IT value analysis as a basis. This approach can generate IT value through capabilities and core competencies. Hence it will impact on performance. The study will employ Downstream Petroleum (DP) industry. We take DP because the case study is non IT industry. As non IT industry, DP industry only spends low cost on IT. The industry has a need to know the IT value. The research result shows that certain IT resources may have positive impacts to IT value by deploying IT value model.