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KY Logistics and Distribution Company (KYLOD)
IT Strategic Plan for KY Logistics and Distribution Company
Nambo Francis
IFSM 301
June 20, 2019
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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:
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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 objective – The 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
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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 UpToDate
technology. The company is going to prioritize, considering customer satisfaction.
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5. Inventory of the Current IT Systems
Present
System
Purpose/
Description
The strategic
objective
associated
with
Business
Category/
Branch
Business
Paybacks
IT
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
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.
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IT Strategies
IT Strategy
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.
Business Enabling
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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.
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
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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
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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.
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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 with principles, which are updated and communicated among
them.
Risk management methods can she use for each one to try to avert or alleviate.
Commented [AG1]: http://www.bsp.gov.ph/downloads/pu blications/2015/layman2015.pdf
Verbatim, paraphrased, source was not cited.
Commented [AG2]: https://www.projectmanager.com/trai ning/it-risk-management-strategies
Verbatim, paraphrased, this source was not cited.
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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: A 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
Commented [AG3]: https://www.projectmanager.com/trai ning/it-risk-management-strategies
Some content was verbatim, other content paraphrased. The
source was not cited.
Commented [AG4]: https://www.wifihackers.org/file- ready/business-continuity-management-a-critical-
management
Verbatim, source was not cited.
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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:
Commented [AG5]: https://www.investopedia.com/terms/ b/business-continuity-planning.asp
Verbatim from source, source was not cited.
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• 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.
Commented [AG6]: http://blog.dayaciptamandiri.com/201 4/10/perubahan-dalam-dunia-business.html
Verbatim from the source, source was not cited.
Commented [AG7]: Verbatim from the case study with a few words paraphrased. No quotations for using exact
wording.
Commented [AG8]: Verbatim from case study with a few words paraphrased. No quotations for exact wording.
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c. Financial Systems, accountant, 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/resourc
esandtools
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
