Through greater use of IT systems, business developments across the globe and better management of projects, we are now operating in a world that is getting continually smaller.

As globalisation has taken hold and centralisation of control is no longer an option, we have worked to ensure we are ready to embrace these challenges by creating a new business model. By making use of the latest communications and IT systems, business can be done anywhere - as long as we employ the best staff we can to utilise these new innovations.

Effective and efficient
As the world becomes smaller, we are radically changing the way we operate. We are developing a number of new projects that are making us more effective and cost efficient and, in turn, enabling us to better meet the needs of our customers.

Our newbuilds programme is an obvious example of how we are developing products or services from wherever across the globe we can gain benefit - in this case in China. We are working closely with a yard near Shanghai on three concurrent projects to build up to 15 specialised gas carriers.

There are inherent risks in the complexity of a newbuilds programme, but we have highly capable people on the ground to drive these projects along.

Widespread IT systems
You would imagine that these newbuild projects create major logistical challenges, but through our widespread use of IT systems it is as if our disparate personnel are working in offices next door to each other.

Another area that is vital to the success of this project is stock control. The yard has chosen a Chinese and English language stock control system that is accessible to everybody involved in the project. Whether it be the purchase of steel plates for the ships’ hulls, through to electrical installations and consumables, tight control can be kept on purchases, all of which will be sourced locally.

In a short space of time we have been able to pull together the best elements of our cultural and business philosophies into a close-knit team. Through continued careful management of the projects between the teams in China and Norway, it is expected that the first vessels will be delivered to quality, on-time and within budget towards the end of 2006.

I.M. Skaugen has also recently initiated another completely new venture in China, in conjunction with the UMOE group - the building of retro-style motorboats for the European market. Manufactured under the name FiveStar Marine in a purpose-built facility near Shanghai, the first boats arrived in Europe at the end of 2005 after being just a design on a drawing board less than 12 months earlier. Though a new initiative for the company, this project is succeeding so effectively as it takes the know-ledge that we have gained during a dozen years of operating in China, and coupled it with the skills of a dynamic management team.

These Chinese projects certainly could not have been envisaged without the use of the latest IT systems - an area on which I.M. Skaugen places great emphasis.

Managing projects
The company has recently invested in Microsoft SharePoint project management software to coordinate its newbuilds program. Through this
web-based software we are able to control and manage project timelines, budgets and all relevant documentation, accessible from anywhere in the world. This system will soon be made available to other projects across the company.

A recent example of how our IT systems have been created to cope with any eventuality was the closing of our Houston office due to Hurricane Rita. The Norgas and SPT offices in Houston were evacuated and all communications were transferred for several days to our Singapore centre. By carefully coordinating our communications network, the company can always ensure that if situations like this occur anywhere in the world, the business is never disrupted.

Contingency plans
I.M. Skaugen has also developed a web-based disaster contingency room that allows personnel,
following an emergency situation, to follow events and remain in contact wherever they are. It is hoped that this will never need to be used but if it is necessary disruption to the company and customers will be kept to a minimum.

Running a global business demands systems that can manage the mass of information necessary to operate effectively. I.M. Skaugen has recently taken delivery of a powerful search tool facility to coordinate both its internal information systems and monitor external sources. This enterprise software - from Intellisearch - is enabling us to automatically unify, manage and utilise the information stored in our systems and - ultimately - an increase in revenue. Add to this a capability to monitor information in the marketplace and we can now much more effectively access and act upon departmental and enterprise-wide information that is fresh, relevant, and mission-critical - benefiting both our partners and ourselves.

Whether through new working practices, seeking new business opportunities or harnessing the latest technologies, we will always endeavour to be at the forefront of the latest developments for the benefit of partners, stakeholders and ourselves.