KYLogistics &Distribution IT Strategic Plan 15
Running Head: KY Logistics &Distribution IT Strategic Plan 1
KYLogistics &Distribution IT Strategic Plan
University of Maryland University College
IFSM 301
NAME
March 31, 2019
Part One
Business Statement
The KY Logistics and distribution is a regional company that operates on a 24-hour basis throughout the week, serving the Midwest region’s major cities of the US. The company contains five terminals distributions in Fort Wayne IN, Chicago IL, Milwaukee WI, Grand Rapids MI, and Indianapolis IN and its headquarters in Chicago, Illinois. The transportation and distribution company has 700 employees who include the truck drivers and the team leader, Kelvin, who is the president of the company. The company operates with 200 delivery vehicles, which include 80 box trucks, 40 tractor/semi-trailer units, and 80-panel vans and has current revenue of about $42 million a year. However, the president wants a 6% cut in the expenses to fund new initiatives and attain a 6% growth.
Business Strategic Objectives
The company has some strategic objectives that will help the business to improve its operations and thus increase the profits earned. The strategic goals are:
Strategic Business Objective 1: Providing warehousing service
Explanation: Typically, the warehousing services are very crucial to the company since it will be able to store products and retrieve them any time they are needed by the customers.
Strategic Business Objective 2: Improving the percentage of loaded miles
Explanation: This goal is meant to increase the amounts of loaded products, which are destined to be delivered in the same area in the field of operation.
Strategic Business Objective 3: to track the freight’s movements in the trucks and terminals.
Explanation: this is an effort to ensure that customers get their products in the exact desired time and the same state as dispatched from the company. The tracking will also reduce the cases of theft and delays.
New Strategic Objective: organizing for standardized contracts.
Explanation: the most crucial areas in the standardization of contracts our clients and the warehousing. A well-standardized contract helps in minimizing cases of manipulation of the negotiations by freighters as well as providing a chance to secure markets for the products.
IT Vision Statement
The vision is to update the information systems to support better the organization’s strategy in becoming the best company in the supply of efficient products and services to our customers through punctuality and accountability.
IT Mission Statement
The mission is to conduct transportation and distribution ethically and professionally with commitment and efficiency in protecting our customers and employees.
Governance
IT governance is a crucial sector in the alignment of the structure and operations of a given business (Betz, 2011). There are standards set through the International Standards for governing IT under the ISO/IEC 38500:2015, which gives the guidelines, principles, and expectations of operation. Since the transportation and transportation sector has not fully embraced the use of new technologies, IT governance should take a keen procedural step to ensure that the IT programs run effectively in the company. The governing body has the power of control, influence and takes charge of steering the policies to attain the organizational goals. The IT sector in the organization plays a very crucial role in controlling systems according to advancements in technology. The IT governance in the company should include the Chief Information Officer (CIO), chief security officer (CSO), the IT Manager, and the director of IT.
The Chief Information Officer (CIO) is responsible for ensuring that the business attains its goals through the technological systems. The CIO is also responsible for creating strategic plans to enable the company to grow through well-staged technological values. The CIO does not primarily take charge of the whole IT programs but instead ensures that the systems installed yield to the best outcomes from the set goals. Also, the CIO is the information risk manager and sets forth the budgets for future budgets in the organization. The Chief Security Officer is responsible for all the security cases related to the company and the information technology sector (Chopra and Meindl, 2007). In the KY Logistics, the chief security officer is the most senior officer as he is in the position of directing the management staff in implementing the security processes.
The IT manager controls all the technical issues involved in the process of carrying out daily activities. The work of controlling modern appliances in the organization would not be an easy task to carry out without the IT manager. Therefore, the KY Logistics must recognize the efforts of the IT manager, since the manager has the required knowledge to discern faults in the system and control them efficiently. Also, the IT manager incorporates new technology to the organization to make it counter competitions from the business rivals. An IT Director is the overseer of the infrastructure in the technical areas, tracking operations and assisting the company in reaching its goals as well as maintaining operations and systems. In a more refined way, the IT director has to take charge of maintaining a record of the advancements required to set forth the implementation of new technologies.
The best framework for IT governance for KY Logistics and Distribution Company is the Information Technology Infrastructure Library (ITIL). ITIL deals with design to ensure that the services are cost effective, provides a strategy to understand the customers and how to manipulate the services to meets customer needs. It transitions to make sure that the design is perfectly made and put into practice; provides an operation to manage the services, ensuring that they are delivered successfully. In critical situations, the ITIL helps in evaluating the business progress using Key Performance Indicators (KPIs). ITIL can align the information technology services with the need for the organization to support its business goals (White & Greiner, 2017). However, ITIL allows for service improvement, which provides mechanisms to improve the technology and processes used in management.
The primary responsibility of the governance body is to protect the well-being of all the members working in the company and their rights (Betz, 2011). The governance body is responsible for helping the organization to carry out its operations smoothly to achieve their goals as stipulated in the objectives. Besides, the key stakeholders, which include the customers, are considered in the sense that their satisfaction creates a healthy working environment. Other responsibilities include developing policies that allow interaction with the management to gear the alliances and healthy relationships in the technological sector. The IT governance also ensures that the organization operates under legal requirements through hiring personnel, monitoring the outcomes of technological intervention and financial stability in the company.
Prioritization of the IT projects is based on Infrastructure and how the company is connected to their clients. In setting up a typically well-designed project, there is a need to grant access to all the customers of the respective company. Perfect communication system ensures that freight movement is efficient, and the efforts made to improve the customer contacts (Betz, 2011). The IT projects in KY Logistics should make advancements in the current systems to promote efficient delivery of services. However, there is a need to scrutinize the effectiveness of the projects to put across to measure their importance to the company concerning the finances used to put the project across. The projects that are considered to have an immediate effect on the company would get the first attention according to the time management matrix created by Stephen Covey, which involves four simple buckets.
The main project is route optimization to create a wide range of market where the company will base its operations. In this case, the company will be able to reap an increased benefit since the market is widened and the customers are well attended. The KY Logistics company has the goal of providing satisfactory services to the clients; thus, through enlarging the market and area of operation, delivery of services would consequently lead to success. Similarly, the tracking system is another crucial project that would help the company to attain the intended goals. Tracking reduces the number of thefts inherent in the company’s transportation sector as well as increasing efficiency in product delivery to the customers. Tracking also makes timely delivery of products to the destined customers in the right quality and quantity.
Thus, in ensuring tracking systems are correctly installed, the company will be able to monitor the behavior of the truckers and their whereabouts. Tracking devices ensure that the attempts of the drivers to manipulate products transported are cut off and therefore security is heightened. Fleet maintenance is another crucial project to be carried out in the company to ensure that accidents are reduced significantly. The vehicles that are used to deliver products must be checked regularly for faults and other failures in time to ensure the flow of work in the right intended way. The other crucial project is creating a new accurate finance reporting system that will involve modifications to link up with the other services of the company. Through training the relevant staff, the company will be able to handle the IT issues related to the improvement of financial handling.
Inventory of current IT systems
There are some certain systems currently set up in the company to gear its operations and improve the way the operations are carried out. With close supervision in the different sectors in the company, the company has set up some objectives that are functional and help the processes to be carried effectively. The table below shows the inventory systems that have been put in place in the company to ensure the smooth running of the operations.
Current System
Function/ Description
Strategic Goal aligned to
Business Unit/ Department
Business Benefits
IT Resources (people, equipment)
Financial Reporting System
A system that is responsible for providing data on the payments and developmental programs.
Sarbanes-Oxley financial audit and reporting requirements.
Programmers in the department of finance responsible for creating a database and loading the respective software on servers.
The benefits to be reaped include a clear presentation of data about the financial status of the business. Ability to track finance data
The IT resources include the interface routing systems.
Management reporting system
A system that is responsible for the daily reporting of financial information.
Creating accurate financials
Programmers in support of Senior Management
To extract accurate financial reports on the operations.
Compiled data
Mobile marketing system
An app that shows the information concerning the potential customers.
Coming up with a mobile marketing app.
A programmer and a web designer for the marketing department.
To show the information regarding the potential customers. This would help in determining the market structure.
Fleet photos and specifications, pictures of the terminals and the distribution information.
Part 2
IT Strategies
IT strategies are the basic guidelines that describe the means to achieve the desired technologies in the organization. An organization can use various IT strategies in its operations, which include the following. To begin with, advanced analytics is a strategy that allows the organization to simulate the operations and make decision making more enthusiastic. Advancement in the analytics in the KY Logistics is aligned to the scrutinizing of the financial reporting system to provide a more efficient report. A thorough examination of the financial systems in the KY Logistics organization will help in presenting accurate reports on the financial stability of the organization. Since the current financial reports in the KY Logistics organization seem to have manipulative force, advancement in the analytics will help in holding the employees responsible for any faults in data analysis. Also, the errors inherent in the current state of the financial position of the organization will be corrected accordingly.
The other IT strategy is flash memory, which allows the organization to create new ways of computing and packaging of applications. Gartner argued that flash memory enables the organization to “move with the new tier in the storage echelon.” This strategy is attained through analyzing the annual growth rate of the business to scrutinize the client consumption levels to improve on the weak points. The flash memory is connected to the computing systems in the KY Logistics organization where the information is recorded in consumer devices. Flash memory is efficient in determining the rate of client payments and the development of the organization at the end of the financial business year.
Virtualization for availability is another IT strategy that allows the organization to check and detect faults in Information Technology. High availability of virtualized tools that include spare hardware tools provides the health check up on the entire technology sector in the organization. This strategy is aligned with the management reporting system that is responsible for presenting accurate financial reports. The hardware tools provided for scrutinizing the faults in the IT segment will help in providing relatively accurate details on the finances. The last IT strategy is a mobile application that deals with moving around with handsets that assist in navigating through the web, a wide environment of operation and uniting the operations of the organization. This IT strategy aligns to the mobile marketing system in the KY Logistics organization, which shows the information relating to potential customers. The mobile applications show the information regarding the potential customers, their transactions and the way to handle financial issues in the future.
IT Portfolio Roadmap
An IT Portfolio road map is a description of the operating systems in the organization, and the targets met within a given timeframe. IT Portfolio roadmap directs the organization to the strategies in progress and what has been attained through their use. However, the strategies to be put in place are evaluated to show the depth of their influence on the progress of the organization. The KYLOD systems in place and the other systems set to be implemented in the future are presented in the table below.
Projects by Functional Area
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Qtr 5
Qtr 6
Sales
Sales Force
Marketing
Analysis of Marketing
Finance
Business Intelligence
Web design
Webpage portal
Network Upgrade
Finance
Business Intelligence
Proposed Project.
The proposed project will reflect on the web design, which is set to review all the operations concerning the internet. All the operations in the KY Logistics organizations are to be synchronized with software that monitors the whole process. Web design is a collection of applications and software, which connects all the segments of the organization to function under one control. An example of the web design is webpage tags that usually help in product promotions, use of modern technology and advancements in the current technology. The webpage for the KYLOD institution will, therefore, aid in links that the clients can use to place their orders through an online platform. In a refined manner, creating a web page is an additional advantage since the organization can get in touch with the new technology as well as providing immediate feedback to online clients.
Risk management
Typically, project execution no doubt brings about so risks along in the course of implementation. The risks tend to hamper progressive approach on the project implicating scope, schedule, and cost. Therefore, the correct approach on the said risks is essential concerning project execution is essential as it builds on efficient delivery on the project. The following entails set of risks that Jenney should be prepared to manage as she executes her plans and risk management technique to adopt in addressing the identified risks.
The risk of failing to comply with the project schedule which, threatens to delay delivery on the project (Olson & Wu, 2015). Typically, during the project execution in there is usually project analysis and planning phase. During this phase, the project implementation team develops the plan on the project implementation timeline, hence, availing a schedule. Jenney should be aware of the schedule and manner in which activities are ought to be implemented in good time to facilitate delivery within speculated time. The risks of falling to comply with schedule are imminent given the respective aspects that affect timely delivery on project tasks. Eventually, Jenny can deploy acceptance risk management technique to address the risk. The technique involves Jenney conceding a mess delaying deliver and initiating a strategy to mitigate the same such as through crashing or fast-tracking project activities.
Besides, Jenney will also experience risk such as labor shortage. Typically, the project implementation tends to have plans underway on execution, but there lacks a plan on how to manage the workforce. Many are the times the project managers assume the team assigned is capable of delivering on the project. This implies the risk of labor shortage is imminent given that some employees may fall sick, others reassign while others may transfer creating a gap in the workforce (Olson & Wu, 2015). Eventually, Jenney should consider employing the following risk management technique to avert the condition, transfer the respective employees to fit their roles. This implies transferring employees to ensure that additional people join her team to facilitated deliver on the project.
Also, the risk of skill miss-merge is imminent as well where some of the team members may display incompetency threating quality delivery on the project. Some team members may fail to discharge properly on the project due to incompetence. Jenney as the project manager can deploy mitigation technique to manage the risk by ensuring collaboration with the expertise to build on synergy (Olson & Wu, 2015). Finally, the risk of individual employee delay in delivery on the task assigned. This involves employees failure to deliver per assigned times. Jenney can embrace rejection risk management technique to address the same; the technique involves rejecting any late submission.
Business continuity plan
Notably, the current technological eve has brought about new and better technologies to improve efficiency and effectiveness. However, at times system fails due to pre-disposure to threats attributed to either nature or human errors. Hence, Jenney ought to embrace a business continuity plan to build on effectiveness and continued running even in the event of occurrence of catastrophe. The following entails list and explanation on steps that Jenney ought to embrace to develop business continuity plan for KYLOD to ensure important system remain operational in the event of local catastrophe inclusive; step one, constitute risk management time(Cerullo & Cerullo, 2004).
Typically, constituting risk management team form the basis of business continuity planning by anticipating risks and possible ways to avert the risks. Step two involve developing business continuity planning team; the team is responsible for collaborating with the risk management team to avail business continuity plan in the event of disaster occurrence (Cerullo & Cerullo, 2004). The BCP should involve the risk management team that identify, assess, and recommend mitigation on risks. Also, BCP should involve BCP team that defines the course of action in the event of a disaster occurrence. The most important systems at KYLOD include; Financial Reporting System, Management reporting system and mobile marketing app for the system enable operational functioning of the firm. Typically, Jenney can ensure those systems remain available even in times of catastrophe by running the systems from the cloud and having real time complete backup systems somewhere which can pick automatic in the event of local systems failing (Cerullo & Cerullo, 2004).
References
Betz, C. T. (2011). Architecture and patterns for IT service management, resource planning, and governance: Making shoes for the cobbler’s children. Elsevier.
Cerullo, V., & Cerullo, M. J. (2004). Business continuity planning: a comprehensive approach. Information Systems Management, 21(3), 70-78.
Chopra, S. &Meindl, P. (2007). Supply Chain Management. Pearson.
KY Logistics & Distribution. (2018, June 10). [Case Study]
Olson, D. L., & Wu, D. D. (2015). Enterprise risk management (Vol. 3). World Scientific Publishing Company.
White, S. K., & Greiner, L. (2019, January 18). What is ITIL? Your guide to the IT Infrastructure Library. Retrieved March 31, 2019, from https://www.cio.com/article/2439501/infrastructure-it-infrastructure-library-itil-definition-and-solutions.html