GG Freightways (GGFRT) CIO Organization Memo

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GG Freightways (GGFRT) IT Strategic Plan

Djenabou Diallo

IFSM 301-6980

UMGC

06/28/2022

1. Business Statement

GGFRT covers a huge area in the southwestern United States. Located in Los Angeles, the firm has 8 primary ports. Los Angeles, San Diego, San Bernadino, Bakersfield, Scottsdale, Phoenix, Tucson, and Las Vegas are the cities with terminals. More than seven hundred and fifty people work in the company's eight primary terminals. There are two service centers in San Bernadino and Scottsdale. The corporation's profit is $35 million, with a gain of 6% on potential financial goals... By cutting operational expenses and producing an 8 percent profit, the company is aiming to earn an 8 percent profit, despite the current business situation. Consumer needs have evolved significantly during the organization's long history, which spans several decades. There is a lot of trust and recognition from many clientele, and thus it is well ahead of its rivals. The company can serve a large portion of the southwestern United States due to its superior products and services. There are 400 delivery and distribution vehicles in the company's fleet, implying that each terminal has an average of roughly 50 cars in its inventory. Eighty semi-trailer units, 160 box trucks, and 160-panel vans make up this fleet of vehicles. "GG Freightways, GGFRT" is one case study.

2. Business Strategic Objectives

Creating strategic goals that can contribute to a shift in the way a company operates should be considered the primary objective of any strategic plan or strategic direction. It is crucial to have a strategic plan because it assists the management of the firm in making decisions that are well thought out and educated, and these decisions will have a good impact on the organization (Vo, 2020). The following table will include strategic objectives with the goals of enhancing the overall experience of customers and the degree to which they are satisfied, as well as enhancing the effectiveness of business operations.

Business Strategic Objective (BSO) (enter number 1, 2, 3, 4 only)	Fully State the Objective (from the case study); it should not discuss IT for the new objective.	Explanation (in your own words for each BSO; for the new objective only, also incorporate how the management team would use the new objective to improve the business of GGFRT.  None should discuss any relationship to the use of IT
1	Freight monitoring	Keeping tabs on all the trucks so that an accurate report can be given to the consumers regarding the exact delivery dates and times
2	Increasing the percentage of loaded miles	By coordinating the delivery and collection of freight within the same geographic region, it will be simpler to cut and save costs.
3	Provide warehouse facilities to the customers	This is for clients that want to save money and time by reducing the time it takes to get products to customers. The client's customers can pick up the items from the warehouse later, or the goods can be stored there until a later date for delivery.
4 (new objective)	Improving the safety of trucks in the fleet	One way to accomplish this is by making certain that all the vehicles in the fleet are secure. To guarantee that the trucks are in good condition, the organization can implement a policy to certify that all vehicles are inspected and serviced regularly, for example, after every 10,000 kilometres, as required by the new federal law. This will ensure that the trucks are in good condition, improving productivity and reducing the risk of road collisions, which would occur if a car was not in good condition. Because of this, each package will be delivered to the customers on time, increasing their happiness with the business.

3. IT Mission and IT Vision Statements

a. IT Mission Statement

The mission statement will be as follows: "the utilization of modern technology in business operations to deliver the highest quality and most effective freight services on a local, national, and even international scale."

IT Vision Statement

Our vision is to support the organization’s IT strategy at a lower cost. Our vision is to improve the current process of the organization. Our vision is to deliver quality IT services to the organization and customers.

4. IT Governance

A governing board should be in place to guarantee that the strategic plan is implemented promptly. In addition to the IT department's senior management, this board should include members from across the organization. This means that the governance board will be comprised of senior IT management, certain members of the management board, and representation from each of the other divisions of the organization. President, Vice President of Operations, Chief Financial Officer, Chief Information Officer, Sales Manager, and Fleet Maintenance Manager are all members of the board of directors. The head of the IT department and two representatives from each of the other departments will also serve on the board. They will be responsible for ensuring that the organization's stated goals are carried out in governance. It will be the vice president's job to oversee the board's day-to-day operations. Comment by Diana Hill: Complete this section by stating the role of all members on the Board of IT Governance. CIO, CEO, CF0, Fleet Manager, Operations Manager

When it comes to accounting, the chief financial officer oversees ensuring that the company's needs are met and checking to see how successfully the latest technological advances are being used. The sales manager's job is to help incorporate client input into the implementation process, and the perspectives expressed will be critical in determining how effectively the process is going. To ensure a smooth implementation, the maintenance manager will submit information on all trucks in the fleet and other pertinent data. All departments will be considered, and their opinions will be incorporated into the board's decisions thanks to the participation of departmental representatives. It will be the panel's job to develop new IT ideas and then decide which one should be implemented first.

5. Inventory with Current IT Systems

There are a few IT systems in operation, even though the existing system is being replaced. The finance and accounting systems handle all financial transactions; vehicles are tracked by the fleet maintenance system, which aids in repair and maintenance planning; freight is tracked by the freight tracking system, which keeps track of shipments from the point of collection to their destination. In the table below, you'll find details about the various systems now in use.

Current System	Function/ Description	Strategic Goal aligned to (strategic business objective from part 2 of this assignment; if compliance noted as business goals were not used, they could still be incorporated in this table.	Business Unit/ Department	Business Benefits	IT Resources only (people, equipment supporting this system)
Finance and Accounting System	This system has information on all expenses, revenue, and whether or not the company is making profits or losses.	Ensure financial records are kept in order, and the transactions are carried out smoothly.	Finance and Accounting department	Improved accuracy of financial and accounting records	Servers and PCs, financial systems specialists, programmers, computer security expert
Freight Tracking System	Currently used to keep track of all freights and trucks from the point of origin to the final destination.	It helps ensure that the freight delivery process runs smoothly and can be easily monitored by all stakeholders.	Operations department	Improved running of the freight operations due to the easy tracking of the freight	Servers and PCs, network engineers, programmers, computer security expert
Fleet Maintenance System	Contains information about the vehicles in the fleet. This helps in planning for repairs and maintenance servicing of the cars.	Has all information about maintenance, including expenses are schedules of routine maintenance services	Maintenance department	It has made easier the process of vehicle maintenance as it contains all information about a vehicle, including expenses, in the fleet.	Servers and PCs, programmers, computer security expert

Part Two

1. IT Strategies

IT Strategy	State the Business Strategic Objective, then Explain the Alignment of the IT Strategy to the stated business Strategic Objective	Internal/Busine ss-Enabling (State the words “Internal” or “Business Enabling”)
Example: do not use but leave it in the table when completing this section. Meet compliance requirements by updating current technology or developing/acquiring modern technology to meet those mandates	 Business Strategic Objective: Meet FMSCA reporting requirements for driving hours by the company’s drivers  Explanation of the Alignment of the IT Strategy to the Business Strategic Objective: By acquiring or developing technology that will capture and store driver hours electronically, the company will follow FMSCA regulations and be able to provide this information upon request.	Internal

1. Implementation of GPS with freight.	 Business Strategic Objective: To determine the location of freight that is both on the roads and in the terminals.  Explanation of Alignment of the IT Strategy to the Business Strategic Objective: Implementation of this technology will help the company determine the exact location and time of the freight. This helps accrue customer satisfaction.	Business
2. Implementation of a truck scale technology in deliveries and pickups	 Business Strategic Objective: To increase the loaded miles percentage. Explanation of Alignment of the IT Strategy to the Business Strategic Objective: Implementation of this technology will result in accurate loading of trucks in size and weight.	Internal
3. Implementation of a Storage system technology to aid in the transportation and distribution of products under the instructions of the Warehouse operator.	 Business Strategic Objective: Providing warehouse services to clients.  Explanation of Alignment of the IT Strategy to the Business Strategic Objective: Implementation of this technology will aid in maximizing use of the floor space and aid in reducing the time clients will take to pick-up their goods.	Business
4. Implementation of a technology that integrates the driver’s fleet engine and their driving time	 Business Strategic Objective: Logging the hours per day the driver has worked.  Explanation of Alignment of the IT Strategy to the Business Strategic Objective: Implementation of technology will help the company adhere to the FMCSA regulations that stipulate the maximum number of hours of driving.	Internal

2. IT Portfolio Roadmap

The table below represents the new systems that GGFRT is planning to implement. One quarter last for three months. There are two systems that are currently in operation in the Finance function area. The old accounting and financial system in the company will be replaced by a new precise financial reporting system. The new precise financial reporting system will be completed in seven months and three weeks of staff training. The second system under the financial function is the management reporting system and will take an additional three months to be completed. Mobile software that will take four months to be completed will be a nice inclusion in the sales function area. In the Operational function area, the new project to be implemented is the “automated storage /retrieval system,” which will take four months to be completed.

Projects by Functional Area	Qtr. 1	Qtr. 2	Qtr. 3	Qtr. 4	Qtr. 5	Qtr. 6
Finance: Management Reporting system Precise Financial system
Sales: Mobile Application
Operational Automated Storage/Retrieval System

3. Proposed Project:

The project I will propose for GGFRT is an “Automated Storage/Retrieval System,” which can also be called the “Pallet Conveyor System.” The proposed project at GGFRT is “Automated Storage and Retrieval System.” This system is instrumental in aiding the company in effectively arranging its storage room. The system will further accrue the product security inventory and order picking accuracy. This new project will support the warehouse services strategy by reducing the hours it takes for customers to get their products during pick up. It will also help to improve the percent of loaded miles strategy where truck drivers will know the weight of items during pickup and delivery.

Additionally, the new proposed system will allow the company to save weight in pickups as the system will automatically tell the goods’ weight before pickups. The trucks at the company currently leave the docks eighty percent full, which the new system will help address, thereby saving weight.

4. Risk Management

A. Risk 1 - Loss of Key Personnel

One of the salient risks that Lance should be prepared for is the turnover of key employees like the head of the IT department. When this happens, it leads to the delay of the project as the company sorts to replace the personnel. This risk can be averted by Lance by employing mitigation strategies. This strategy involves hiring or assistant personnel to key employees in the company.

B. Risk 2 – Project Scope Change

Frequent changes in IT projects are quite logical, and IT projects are faced with an elevated risk of frequent changes. These changes are logical “no matter how detailed your specification is, there are always suggestions that come after you have started the implementation” (Story, n.d, para. 5). This will cause a delay in the project and consume more time employing new methods. The risk can be mitigated by Lance by not allowing drastic changes to the project, and when the project is fully implemented and operational, they can make the necessary changes.

C. Risk 3 – Financial Risk

All projects are subjected to the financial risk of budget cuts. This results when the initial cost planned in the budget varies from the current market prices. This causes a fiscal impact on the company as they must employ new ways of filling the gap in prices. Lance can mitigate this risk by ensuring the initial budget plan uses accurate prices of the current and future market.

D. Risk 4 – Prolonged Project Time

This risk arises when the project takes a long time to be completed then the initial estimated time. This affects the company as it may affect the development and implementation of other projects. This is the risk that possesses a high challenge to mitigation, and therefore Lance can prepare for a prolonged time due to technical issues being uncontrollable. Comment by Diana Hill: How is risk to be mitigated?

5. Business Continuity Planning

A. General Steps

The first step for GGFRT's business continuing plan is conducting Business Impact Analysis. Business Impact Analysis will aid GGFRT in analyzing the impact the organization will experience if the system is disrupted (Aleksandrova, 2018). With this, Lance must identify the system's critical functions and prioritize them. Current systems that will help Lance achieve this are Recovery Point Objective (RPO), Recovery Time Objective (RTP), and the Maximum Tolerable Downtime (MTD).

The second step for GGFRT's business continuing plan is conducting a Risk assessment. This will help in identifying potential threats, the vulnerability of the system, probability, and impacts of these threats on the organization. The risk can be calculated either qualitatively or quantitatively.

The third step is to conduct Risk management – once a risk assessment has been conducted and threats and vulnerabilities identified, Lance must develop a strategy to respond to those risks (Stine, 2020). A risk assessment report should be developed after the process.

The next step is to continue performing risk assessments and testing. Risks can never be eliminated; therefore, there is a need for a continuous monitoring process.

B. Personnel Involved

The Business Continuity Plan team will involve senior management like Chief Information Officer (CIO), Chief Information Security Officer (CISO), Chief Financial Officer (CFO), and IT Director of Operation; Business Line Management like the System Owner; Facility Management member like the Chief Security Officer (CSO); Internal Auditor like the Information System Security Officer / Information System Security Manager (ISSO/ISSM), Security Control Assessor; IT and crisis management team including, Network Engineer, System Administrator, and Backup administrator.

C. Important Systems

The three most important systems currently used by GGFRT are the Fleet maintenance system, Route optimization/ freight tracking system, and Financial and Accounting System. The routing optimization/ freight tracking system is significant as dispatchers use it to input freight origin and destination information and help management and customers track fleets and delivery time. The Financial and Accounting System helps the accounting department to develop accurate accounting records. The fleet maintenance system contains all vehicle specification information which is a vital record as it gives information on vehicles and how they are maintained.

D. Steps to Ensure the Operational of the Systems

1. Having a backup server in a different location.

2. Having a secondary worksite.

3. Have hard copy data on the fleet stored in the secondary location.

4. Equip drivers with GPS devices to help them when the routing optimization/freight tracking system fails.

References

Aleksandrova, S. V., Aleksandrov, M. N., & Vasiliev, V. A. (2018, September). Business continuity management system. In 2018 IEEE International Conference" Quality Management, Transport and Information Security, Information Technologies"(IT&QM&IS) (pp. 14-17). IEEE. Comment by Diana Hill: You do not use the case study as a reference. You are free to use this material.

Attached Document (Case Study: GG Freightways (GGFRT))

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Business Impact Analysis (BIA). (n.d.). Retrieved from http://itsm.ucsf.edu/business-impact analysis-bia-0.

FFIEC_BusinessContinuityPlanning. (2019). Retrieved from

https://learn.umuc.edu/d2l/le/content/415416/viewContent/16209629/View. Grembergen, W. V., & Haes, S. D. (n.d.). IT Governance and its mechanisms. Retrieved from https://learn.umuc.edu/d2l/le/content/415416/viewContent/16209611/View. Lindros, K., & Tittel, E. (2017, July 18). How to create an effective business continuity plan. Retrieved from https://www.cio.com/article/2381021/best-practices-how-to-create-an effective-business-continuity-plan.html.

Romero S. (June 2011). Understanding the Challenge and Incredible Potential of IT Governance Retrieved from https://pmisv.org/downloads-files/special-folder/programs/pm-insights fremont/1176-pm-fremont-insights-it-governance-condensed-version/file

Rouse, M., Bigelow, S. J., Rouse, M., & Rouse, M. (n.d.). What is ITIL (Information Technology Infrastructure Library)? - Definition from WhatIs.com. Retrieved from

https://searchdatacenter.techtarget.com/definition/ITIL.

Smart Advice: How to Develop an IT Strategic Plan. (2003, November 26). Retrieved from http://www.informationweek.com/smartadvice-how-to-develop-an-it-strategic-plan/d/d id/1021971.

Stine, K., Quinn, S., Witte, G., & Gardner, R. K. (2020). Integrating cybersecurity and enterprise risk management (ERM). National Institute of Standards and Technology. DOI, 10.

Stoy, A. (2018, November 18). IT Project Risk Examples - Common Risks in IT Projects & How to Avoid Them. Retrieved from https://www.brighthubpm.com/risk-management/90414- it-project-risk-examples/.

The purpose of strategic planning. (2018, October 8). Retrieved from https://www.nibusinessinfo.co.uk/content/purpose-strategic-planning.

Vo, E. (2020). What is strategic planning? Strategic planning process. Retrieved March from https://sba.thehartford.com/business-management/what-is-strategic-planning/