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KY Logistics and Distribution Company (KYLOD)

IT Strategic Plan for KY Logistics and Distribution Company

Nambo Francis

IFSM 301

1

June 20, 2019

IT strategic plan for KY Logistics and Distribution Company

1. Business Declaration - KY Logistics and Distribution Company (KYLOD) is a zonal company which has been offering transportation and services for the past four decades. The company provides its services to major cities in the Midwest region of the United States. Their headquarters is located in Chicago, Illinois. They have a total staff of 700 employees, including all the truck drivers. They have several distribution terminals which are located in Chicago, Milwaukee, Green Bay, Fort Wayne Indianapolis, and Grand Rapids, which help to fuse shipping, they also have vehicles including 40 tractors, 80 box trucks, and 80-panel vans. The company’s line of business is highly competitive, and they have shown slow growth due to a sluggish economy. Kevin, the company president, aspires, to see an increase in the rate of 6% per year. They work 24/7, with their salespersons visiting everywhere to market the company and make quotations. A dispatcher at terminal makes a list of freight pickups and drives and follows the routes making the drops at the respective stoppages. The company is reliable and competent in all their transport and distributive endeavors.

2. Business Strategic Objectives - KYLDO has three specific ideas which it aims to pursue and discover accomplishment in the subsequent business venture year strategically and offer the best services to the customers. The main concepts in KYLOD are explained in the following points.

Business Strategic Objective 1:

Provide Warehouse Services; this is targeting them for customers who want to the duration taken by the customers to receive their orders by availing the products locally.

Business Strategic Objective 2:

Progress the percent of covered distance in their fleet to reduce expenses by coordinating a synchronous pickup and delivery of merchandise at the same schedule for stations in the same geographical location.

Business Strategic Objective 3:

Track the whereabouts of freight both in the terminals and on the trucks to provide customers with accurate delivery dates and times.

3. IT Vision and IT Mission objectives-

· IT Mission objective – The mission of IT Company is to save time, dependable distributors, delivery the unsurpassed quality of merchandise in the section with the aid of the most convenience Technology.

· IT Vision objectiveThe Vision is achieved both cost, evolution, and mission objectives accompanied by a single delivery system. Using Technology in the delivery of commodities across the universe (SHRM, 2018).

4. Governance- the Company’s organization entails the President, Vice President in charge of Operations, Chief Financial Officer (CFO) Chief Information Officer (CIO) Sales Manager and a Fleet Manager who is in cost of maintaining safety. The senior officers of the company meet every single week to discuss important company matters and look for amicable solutions. The company IT department is now going to be headed by Jenny, who is the CIO. It is made up of seven programmers who develop and integrates all the company systems, six helpdesk personnel who oversee the six terminals (Stank, Daugherty & Gustin, 1994). The team also includes two network engineers and a financial systems specialist who ensures accurate financial reporting. IT staff support multiple locations. There are 15 servers in the Chicago headquarters which contain all software and data, and a backup unit for all the company information. Under the able leadership of Jenny as the CIO, the company's IT department is going milestones. Though they are still awaiting the updating of the older technology that they are currently using, they have been able accurately to make the financial reports without any hiccups whatsoever (Daugherty, Chen & Ferrin, 2011). They have been able to track the freight by locating the first and last destinations. However, they are willing to have something more current, which will enable them to see all freights during all the hours of transportation. They are also doing prodigious fleet management with the current technology that they have. The only challenge that they are having is to maintain the freight scheduling to be reliable to all their customers, which hopefully they will manage if they get a current and Up-to-date technology. The company is going to prioritize, considering customer satisfaction.

5. Inventory of the Current IT Systems

Present SystemSpring 2019

Purpose/

Description

The strategic objective associated with

Business Category/

Branch

Business Paybacks

IT

spring ‘19 Resources

(human, apparatus)

40 Personal computers

Accounting

Accounting, management.

IT infrastructure and administration unit and all end stations

A successful organization, accounting, and synchronization

40 people

15 servers

Networking, database, and recovery

Record keeping and data management

Chicago headquarters

Provided information safety over four decades.

8 Database administrators.

Marketing Smartphone application

It is used in all fields of marketing.

To increase the sales in the transport filed.

It gives the customers fleet updates.

IT Strategies

IT Strategy

(Spring 2019)

Strategic Objective, then Explanation of Alignment of the IT Strategy to Business Strategic Objective

Internal/Business-Enabling (state the words “Internal” or “Business Enabling”)

Improving and Upgrading Systems including IT equipment

Schemes upgrade,

By carrying out a system upgrade, including the IT equipment. Systems will be brought to newer, better, and up-to-date versions which are compliant with the latest technologies in the market.

This will significantly improve the computing time and processing of large and different formats of data faster and overall productivity of the system developers.

For a business to run smoothly and perform at its optimum peak, fast and responsive systems plus a reliable, fast and a secure network resource should be put in place as the play a significant role in the overall performance.

Internal

Expert Technical Support

Expert Support Team,

Having a competent help desk and support teams improves better communication with customers.

Currently, they are many technologies that have emerged; most are powered by advanced technologies such as Artificial Intelligence, AI.

Problems do happen unpredictably, and it requires better management and excellent communication to fast track the problem and how best can it be solved.

A well-structured IT support management makes it easy to streamline multiple queries, help to expert care for all technical support needs. This improves availability, resolve issues quickly to reduces outages, and minimize system downtime.

Business Enabling

Accurate Financial Reporting

Financial Reporting, reporting took the labor-intensive process, and system information was not readily available. The finance management team need to access the finance data any time and efficiently, and the new system must substitute the present finance and accounting system.

Upon implementation of this Precise Financial Report, it will make financial reporting a less tedious task and will enable the ability to meet compliance requirements, also tracking of any financial errors and ledgers will be more comfortable and there will be an estimated overall business improvement.

Internal

Automated and Smart Data Entry Techniques

Smart Data Input, as cited in the Case Study, bookkeepers, accountants, and dispatchers, have an enormous tedious task. Inputting of data into the systems is done manually; this means accuracy is a problem and performing a repetitive task.

Automated and Smart Data Entry Techniques can work faster and are more reliable as compared to a human. Data is converted more quickly from a hardcopy format to softy format and stored by the computer which is easy to manipulate. This Smart system can generate electronic documents.

By implementing this strategy, it put the business in line with other company in the market, and overall performance of the business is greatly improved as it can more handle the workload from its customers, thus increasing revenue generated annually.

Business Enabling

IT Portfolio Roadmap

Projects by

Functional Area

Qtl. 1

Qtl. 2

Qtl. 3

Qtl. 4

Qtl. 5

Qtl. 6

Product Development

Smartphone Marketing Application

Automated Shipment Tracking System

Finance

Precise Financial Report Structure

Technical Support

Management Report Structure

Proposed Project

Automated Shipment Tracking System

From the Case Study, most felt that there was some space, but tracking of the shipments might be a problem. A proposed Automated Shipment Tracking System is targeted to solve this problem by making it easy to keep track of the purchase in and out of the warehouse. This will keep records up to date on the status of the purchase, delivery forecast, and pickups destinations. This system is aimed to provide a single beautiful interface to keep track of the investments and offer better convenience.

Current techniques have a high level of inefficiency, mostly is gives the dispatchers and the bookkeepers a hard time keeping track of all the records and shipments in and out of the warehouse. Their chief objective is to get loads in and out of the stations within the shortest duration. Distribution duration is restrained as one of the company’s performance objective, and this improves their credit score. The proposed project will require a program writer and a web specialist in system design. It is aimed to take a maximum of two months.

Risk Management

IT risk assessment, the use of risk analysis procedures to IT to govern Technology risk including, user risk, proprietorship, process, and integration of the Company into the ventures.

The risk that Jenny should be aware of before the execution of the business plan.

1. The lifespan of the hardware, software, apps, and integrations to keep up dynamic technology. This would cut in deep if the systems implemented become outdated faster.

2. A setback, fault, or hazard in IT. This influences every facade of a venture.

3. Discovery of experts to conduct IT risk management, they should be trained and experienced in the IT field. These specialists are managed by the IT project manager, and they should possess excellent interpersonal skills so that they can be trustworthy and be determined in their tasks.

4. I am conforming to principles, which are updated and communicated among them.

Risk management methods can she use for each one to try to avert or alleviate.

Its keys to apply risk management procedures to IT to control the risk intrinsic in a particular work station.

Steps for IT Risk Management

· Appraise Soon and Often: The risk management process should take off within the shortest period. Additionally, the risk management process should be a continuous activity throughout the project's life cycle.

· Include Shareholders: An inordinate source that is often disregarded are the project shareholders who have an exceptional standpoint and can offer to understand into zones where jeopardy might ascend.

· Diminish the Impact: This is a moderation approach, where the business works to diminish the bearing of the hazard through the procedure, crews, or whatever possessions are at its clearance.

· Transfer Hazard: This is a transference tactic, when the business handovers the risk to an alternative object, it should be closely monitored.

Business Continuity Planning

1. General stages Jenny should adopt to progress a Business Continuity Plan of KYLOD so she can be sure that most significant systems will remain operational in the event of a catastrophe.

This is the processing of creating systems of preventing and recovery to deal with potential threats to a business. In addition to prevention, the goal is to permit ongoing operation before and during the execution of disaster recovery. Business Continuity Planning involves defining any risks that can affect business operations, making it an essential part of the business risk management strategy. There are several steps to follow to develop a robust Business Continuity Planning. They include:

Business impact analysis: Here, the business will identify functions and related resources that are time-sensitive.

Recovery: In this portion, the business must identify and implement steps to recover critical business functions

Organization: a continuity team must be created. This team will devise a plan to manage the disruption.

Training: the continuity team must be trained and tested. Members of the team should also complete exercise that goes over the plan strategies.

A business may also find it useful to come up with a checklist that includes key details such as emergency contact information, a list of resources the continuity team may need, where backup data and other required data is housed or stored and other relevant personnel. For a business continuity plan to be successful, all employees-even those who aren't on the continuity team must be aware of the project.

2. They are involved in its development and their roles in the BCP.

A Committee that can guarantee higher administration obligations, they are accountable for the error, commencement, preparation, endorsement, testing, and inspection of the organization continuity strategy.

A Business Continuity Planning is encompassed of the subsequent associates:

· Executive sponsor has general accountability for the BCP board, elicits senior organization’s funding and regulation.

· BCP coordinator safeguards senior administration sustenance approximates financial necessities. Develop a BCP strategy. Guarantees operative contributor input and runs the growth of plans and preparations for organizations sustainability.

· Security officer works with the coordinator to safeguard that all aspects of BCP achieve the security necessities of the venture.

· Chief Information Officer (CIO) collaborates closely with the BCP manager and IT experts to strategize operative and coherent steadiness.

· Business unit representatives prove input and assist in performing and analyzing the results of the business impact analysis.

3. Also, from the Case Study, identify what you consider the three most essential systems currently in use at KYLOD along with justification of your choices.

a. Routing systems, A dispatcher at a terminal produces a list of merchandise pickups and assign a vehicle to fetch the goods. To do this, they use the scheduling system to predict the categorization of trucks by zip code. They use google maps within a zip code to map out the specific order of vehicles since there may be numerous in a zip code location.

b. The fleet maintenance system contains data on each carrier. It includes vehicle identification details, a list of all maintenances, a precautionary maintenance agenda, and an inventory of fragments on hand.

c. Financial Systems, accountant, and use this system to perform updates on ledgers, filter data, or perform an audit of the business.

4. Based on the three systems chose in 3, explain the specific steps Jenny can take to ensure those systems continue to be available for KYLOD in the event of a local catastrophe.

Route optimization and tracking system, proper resource utilization should be optimized, and the personnel operating the system should be free from stress and available all time and should be motivated. A new backup of the system should be put in place in case the unprecedented happens, also additional personnel to take a shift for optimum performance of the business.

The Fleet maintenance system, this contains information of a fleet and should be readily available to the concerned personnel such as the mechanics, dispatcher. This boost early planning and relieves a lot of frictions in the event or problem.

Financial System, this is one of the major areas in business structure, and a well and efficient financial system in place boost productivity by a higher degree. Making sure data is available readily whenever it is needed, and considering the integrity and security of the information is of great importance.

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References

Daugherty, P., Chen, H., & Ferrin, B. (2011). Organizational structure and logistics service innovation. The International Journal of Logistics Management, 22(1), 26-51.

firstgroupplc.com. (2014). Strategic objectives. (n.d.). Retrieved from https://www.firstgroupplc.com/investors/strategy/strategic-priorities.aspx

SHRM. (2018). Mission & Vision Statements: What is the difference between mission, vision, and values statements. (n.d.). Retrieved from https://www.shrm.org/Pages/Custom404.aspx?requestUrl=https://www.shrm.org/resourcesandtools

Stank, T., Daugherty, P., & Gustin, C. (1994). Organizational Structure: Influence on Logistics Integration, Costs, and Information System Performance. The International Journal Of Logistics Management, 5(2), 41-52.

KYLOD Case Study (31 May 2019). IFSM 301, foundations of information systems

Management. Retrieved from https://learn.umuc.edu/d2l/le/content/325948/Home