Instructions
The GG Freightways (GGFRT) ITSP Part 2 Assignment is due at the end of this week. The assignment instructions are attached.
The Case Study is posted under Course Resources > Case Study. Use the Case Study as the background to develop your assignment. Also, review feedback from the Part 1 assignment to incorporate into this assignment.
You can utilize the ITSP2 IT Roadmap Table Example file (attached) to copy/paste the table into your assignment, then modify the information
GG Freightways (GGFRT) IT Strategic Plan, Part 2
Before you begin this assignment, be sure you have read the “GG Freightways Case Study” and the feedback you received on your IT Strategic Plan Part 1 assignment. Also, be sure you have read the course content materials that have been assigned to this point.
Purpose of this Assignment
This assignment gives you the opportunity to apply the course concepts to complete the development of an Information Technology Strategic Plan (ITSP) to support the strategic direction of GG Freightways (GGFRT). This assignment specifically addresses the following course outcomes to enable you to:
· identify, define, and explain the concepts of information technology governance and management
· apply best practices in information technology management and governance to make, defend, and justify an IT decision.
IT Strategic Plan for GG Freightways
For the previous assignment, you developed Part 1 of an IT Strategic Plan for GGFRT. For this assignment, you will incorporate any needed changes resulting from the feedback you received on your Part 1 assignment and you will add Part 2. Part 2 will include an IT project that you are proposing that GGFRT undertakes. This new project will be included in the IT Portfolio section of Part 2 and will be further described in a future assignment, the “IT Decision Paper.” The entire ITSP will be submitted as a single document for this assignment.
Assignment
First, you should make any changes to your Part 1 assignment, as indicated in the feedback you received. Then, you will develop Part 2 of the ITSP for GG Freightways (GGFRT), using the outline below, and add it to Part 1. A single, complete ITSP, with both Parts 1 and 2 will be submitted for this assignment. Note that Part 2 includes a project you are proposing that GGFRT undertakes. In addition to the course materials, at least one external resource (resource other than those provided in the class) must be used. Two or more cited references will earn top credit. Use a separate References page to list just the references you have cited. Remember to use the APA formatting rules and correctly cite and reference your sources with APA format. Use the Grading Rubric to be sure you have covered everything.
Please use this outline to build Part 2 of your IT Strategic Plan. Use the numbering and headings shown below.
1. – Write four (4) IT strategies and explain how they align to one or more of the business strategies from ITSP #1, Section 1, including the compliance requirements, articulated in the Case Study. If these business strategies were not included in your Part 1 paper, you should add these strategies into Part 1 prior to submitting this assignment. When the full ITSP is submitted for this assignment, there should be a clear link between the business strategies in Part 1 and the IT Strategies in Part 2. Provide at least one (1) internal IT strategy and two (2) business-enabling IT strategies and identify each as either and internal or business-enabling strategy. Refer to the reading on “Creating a Future Vision for the Chief Information Officer” for
an explanation of internal and external (business-enabling) IT strategies.
IT strategies are not
business strategic objectives but could be general IT initiatives (not specific projects) that support the business objectives from the ITSP #1.
Please complete the following table by copying/pasting it into your paper for this section:
IT Strategy (state the IT Strategy)
State the Business Strategic Objective from the ITSP #1 assignment, then Explain the Alignment of the IT Strategy in the first column to the stated Business Strategic Objective
Internal/Business-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 new 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 be in compliance with FMSCA regulations and be able to provide this information upon request.
Internal
1.
· Business Strategic Objective:
· Explanation of Alignment of the IT Strategy to the Business Strategic Objective:
2.
· Business Strategic Objective:
· Explanation of Alignment of the IT Strategy to the Business Strategic Objective:
3.
· Business Strategic Objective:
· Explanation of Alignment of the IT Strategy to the Business Strategic Objective:
4.
· Business Strategic Objective:
· Explanation of Alignment of the IT Strategy to the Business Strategic Objective:
2. IT Portfolio Roadmap – The overall IT Roadmap shows the systems that are currently in development or are planned to start within the time frame shown. It is a summary of projects to support your proposed strategy. You should review the case study and identify the new systems that the stakeholders are requesting or that GGFRT has decided to implement. Each of these systems should be entered into the table below under the appropriate functional area, such as marketing or finance. Then, the time frame for developing the system should be presented as a bar in the table. The table covers a six-quarter time frame shown, with each quarter having three months. Thus, the six-quarter time frame looks out a year and a half into the development and implementation of the strategy. Of course, the entire implementation may take longer, but six quarters allows both short term and long term to be viewed at a glance. For purposes of this assignment, only the projected timeframes to develop the projects are
required. Assume that the beginning of Quarter 1 is today with the projects already in the development process.
To develop your roadmap, use a table like the one below to create a timeline; you can copy the table, insert the functional areas and systems that are discussed in the Case Study, and use ‘insert shape – rectangle’ to insert the bars showing the timeframes for development of each. The functional areas and projects in development, and their timeframes should be extracted from the Case Study.
(You will have 3 projects that are in the current portfolio plus your proposed project from the next section, in your roadmap once it is completed.)
Sales
Sales Force Automation
Online Quoting
Product Development
Collaboration – Wikis, Blogs
Showcase Company Products
Marketing
Customer Experience
Marketing Analytics
Finance
Business Intelligence
Global Payroll
Technical Support
Network Upgrade
Data Center Move
3.
Next, (1) you will propose a new IT project to support at least one of the IT strategies in section 1 above and include it in the Table above. (2) Use a different color font to indicate this new project and insert it with the appropriate functional area in your table. In Section 3, (3) describe in a short paragraph how your proposed project will supplement the current IT development projects (systems in development) in supporting the business of GGFRT.
. In a future assignment, you will use this project to develop an “IT Decision Paper”; therefore, you should look at that assignment to be sure the project you propose will be appropriate for that assignment as well. (You can propose a specific vendor package though it is not necessary. However, if you are incorporating an integrated solution, you should discuss the various features of the package that are appropriate for the study.
Refer to Case Study for ideas for a new project. This is a major part of the next assignment. Give this some thought.
4.
– (1)
four (4) risks that Lance should be prepared to manage as he executes his plans. (2) What is the impact of the risk on GGFRT if not properly managed? (3) What risk management techniques can he use for each one to try to prevent and/or mitigate them (state: )? You must discuss specifics, related to the case study in your response.
This is a good area to do some external research – see what you can find on the web about IT project risks and risk management. (Review the document “IHS Guide to Risk Management” found under the Week 3 readings.) Complete (1), (2), (3) for each risk; list each risk separately in the format a. Risk 1, b. Risk 2, c. Risk 3, d. Risk 4, then the subsections (1), (2), (3). A source must be incorporated into this section for full credit.
5. –
(a) List and explain the
steps Lance should take to develop a Business Continuity Plan for GGFRT so he can be sure that the most important systems will remain operational in the event of a catastrophe.
(b) Include who should be involved in its development and their roles,
(c) In addition, from the Case Study, identify what you consider the three most important systems currently in use at GGFRT
.
(d) Based on the three systems chosen in (c),
Lance can take to ensure those systems continue to be available for GGFRT in the event of a local catastrophe.
(Review course materials on the Business Continuity Plan.)
The “right” and “wrong” answers have to do with whether or not you correctly incorporated the course concepts from the course and addressed all parts of the assignment. The project you propose is not as important as that it makes sense considering the course content and the Case Study. Use the Rubric below to be sure you have covered all aspects of the assignment.
Formatting Your Assignment
· Avoid quotation where possible by paraphrasing ideas and findings from your sources into both your own words and writing style. Changing a few words but including most of the wording and structure from the original text of your sources is not acceptable. Verbatim text directly from sources is not acceptable, even if cited. The work of the ideas and the writing needs to be your own. If you do use verbatim text, you must use quotation marks even if you have cited the source.
· Formatting: 1” margins, 12-point Times New Roman font.
· In the ITSP #2 assignment, you are preparing the second assignment which also will include ITSP #1 and the feedback provided on the graded copy and scoring rubric. This should be added to the ITSP #2 requirements. Begin with the updated ITSP #1 document, then add it to the ITSP #2 paper.
· Continue to use a title page from the ITSP #1 assignment that includes: The company name, title of assignment, your name, Course and Section number and date. Use the numbering format in the assignment instructions above, for these sections:
1. IT Strategies
2. IT Portfolio Roadmap
3. Proposed Project
4.
Risk Management
a. Risk 1: state the risk
(1): (explain the risk)
(2): (impact of the risk if not properly managed)
(3): (accept, reject, transfer, mitigate stated followed by the explanation on how management will be accomplished)
b. Risk 2: state the risk
(1): (explain the risk)
(2): (impact of the risk if not properly managed)
(3): (accept, reject, transfer, mitigate stated followed by the explanation on how management will be accomplished)
c. Risk 3: state the risk
(1): (explain the risk)
(2): (impact of the risk if not properly managed)
(3): (accept, reject, transfer, mitigate stated followed by the explanation on how management will be accomplished)
d. Risk 4: state the risk
(1): (explain the risk)
(2): (impact of the risk if not properly managed)
(3): (accept, reject, transfer, mitigate stated followed by the explanation on how management will be accomplished)
5. Business Continuity Planning
a. General steps of a BCP
b. Personnel involved with the BCP/roles related to the BCP
c. Three most important
systems/justification for their continuity of operations
d. Specific steps to ensure these three
systems remain operational
· Write a short concise paper: Use the recommendations provided in each area for of response. It’s important to value .
· Content areas should be ; table entries should be .
· To
: Move your cursor to the table, then click on the small box that appears at the upper left corner of the table to highlight the table; right click and COPY the table; put the cursor in your paper where you want the table and right click and PASTE the table.
· Ensure that each of the is preceded by an that explains what is contained in the table, so the reader understands why the table has been included.
· Use at least two with citation and reference. Any course content should be from the class reading content, not the assignment instructions or case study itself. For information on APA format, refer to Content>Course Resources>Writing Resources.
· Begin a for resources required for this assignment. Use APA format for your reference page. Combine the references from Parts 1 and 2 into a single list at the end of the document.
· Running headers
required for this report; however, please include page numbers.
· Writing should always be in third person.
· Compare your work to the below to be sure you have met content and quality criteria.
· Submit your paper as a , or a document that can be read in Word. Keep tables in Word format – do not paste in graphics. The paper should be uploaded to the ITSP #2 assignment folder.
· Your submission should include
: Lastname_Firstname_ITSP2
GRADING RUBRIC:
Criterion
90-100%
Far Above Standards
80-89%
Above Standards
70-79%
Meets Standards
60-69%
Below Standards
< 60% Well Below Standards Possible Points IT Strategies 18-20 Points Four (4) or more IT strategies (including at least two (2) business-enabling strategies and one (1) internal IT strategy) are presented and are clearly and appropriately stated and tied to the business strategies articulated in the Case Study and listed in Part 1; demonstrates thorough understanding of course concepts, analysis, and critical thinking. 16-17 Points Three (3) IT strategies (including two (2) business-enabling strategies and one (1) internal IT strategy) are presented and are clearly stated and appropriately tied to the business strategies articulated in the Case Study and listed in Part 1; demonstrates understanding of course concepts, analysis, and critical thinking. 14-15 Points Three (3) IT strategies (two (2) business-enabling strategies and one (1) internal IT strategy) are listed, stated, and aligned to the business strategies articulated in the Case Study. All business strategies cited are now included in Part 1. There is a clear link between the business strategies in Part 1 and the IT Strategies in Part 2. 12-13 Points Fewer than three (3) IT strategies (two (2) business-enabling strategies and one (1) internal IT strategy) are presented; one or more are not appropriately stated and tied to business strategies articulated in the Case Study; and/or business strategies are not listed in Part 1. 0-11 Points Few or no IT Strategies are included, strategies do not relate to the Case Study, and/or are poorly written and do not convey the information. 20 IT Portfolio Roadmap 18-20 Points This section includes an effective and well-written introductory paragraph that is applicable to the Case Study and the table that follows. The IT Portfolio roadmap table of systems in development accurately reflects the information presented in the Case Study (functional areas, systems, and timelines) and demonstrates thorough understanding of course concepts, analysis, and critical thinking. Table is very professionally presented, uses a logical and easily understandable structure, and spelling is correct. 16-17 Points This section includes an appropriate introductory paragraph that is applicable to the Case Study and the table that follows. The IT Portfolio roadmap table of systems in development accurately reflects the information presented in the Case Study (functional areas, systems, and timelines) and demonstrates understanding of course concepts, analysis, and critical thinking. Table is professionally presented, uses a logical structure, and spelling is correct. 14-15 Points This section includes an introductory paragraph that applies to the Case Study. The IT Portfolio roadmap table shows the functional areas and projects in development and their timeframes extracted from the Case Study. 12-13 Points This section is somewhat incomplete (lacking in introduction or required table, or table content is incomplete); and/or is not applicable to the Case Study. 0-11 Points Little or no information is provided on the IT Portfolio; table is missing; and/or information presented does not apply to the Case Study. 20 Proposed Project 9-10 Points The IT project proposed is appropriate to the Case Study, is aligned to a functional area, supports at least one (1) strategy in Section 1 above, and is included in the table. The explanation of how it supplements the current IT projects in development is clear and convincing and is clearly aligned to the business in the Case Study; demonstrates thorough understanding of course concepts, analysis, and critical thinking. 8 Points The IT project proposed is appropriate to the Case Study, is aligned to a functional area, supports at least one (1) strategy in Section 1 above, and is included in the table. The explanation of how it supplements the current IT projects in development is clear and is aligned to the business in the Case Study; demonstrates understanding of course concepts, analysis, and critical thinking. 7 Points A new IT project that supports at least one of the strategies in section 1 has been included it in the appropriate functional area in the table above, using a different color font. The explanation includes how the proposed project supplements the current IT development projects in supporting the business in the Case Study. 6 Points The IT project proposed is not appropriate to the Case Study; is not correctly aligned to a functional area; and/or is not listed in the table and/or the explanation of how it supplements the current IT projects in development is not clear or is missing. 0-5 Points No Proposed Project is included, or proposed project is not appropriate to the Case Study and/or is not explained. 10 Risk Manage-ment 14-15 Points Four (4) or more risks and impact are listed and fully explained, along with techniques to prevent and/or mitigate them; risks and techniques identified are appropriate for the Case Study; section is well written with reference used to support explanation; demonstrates thorough understanding of course concepts, analysis and critical thinking. 12-13 Points At least three (3) risks and impact are listed and fully explained, along with techniques to prevent and/or mitigate them; risks and techniques identified are appropriate for the Case Study; demonstrates good understanding of course concepts, analysis and critical thinking. 10-11 Points Three (3) risks and impact are listed and explained, along with techniques to prevent and/or mitigate them; risks and techniques are appropriate for the Case Study. 9 Points Fewer than three (3) risks and impact are listed and/or explained; lacking in some techniques to prevent and/or mitigate them and/or risks and techniques are not appropriate for the Case Study. 0-8 Points Risk Management section is not included; few risks and impact are listed or explained and/or risks/ techniques do not apply to the Case Study. 15 Business Continuity Planning 14-15 Points Business Continuity Planning (BCP) section thoroughly covers all four (4) requirements including the major steps needed to develop a BCP and correctly identifies the participants, their roles, and three (3) systems important to the Case Study are listed with complete steps to ensure their continued availability; responses are appropriate to the Case Study; demonstrates thorough understanding of course concepts, analysis, and critical thinking. 12-13 Points Business Continuity Planning (BCP) section completely covers at least three (3) requirements including the major steps needed to develop a BCP and correctly identifies the participants, their roles, and three (3) systems important to the Case Study are listed with steps to ensure their continued availability; responses are appropriate to the Case Study; demonstrates understanding of course concepts, analysis, and critical thinking. 10-11 Points Business Continuity Planning (BCP) section covers at least two (2) requirements including the major steps needed to develop a BCP and identifies the participants; their roles, and three systems important to the Case Study are listed with steps to ensure their continued availability; responses are appropriate to the Case Study. 9 Points Business Continuity Planning section is incomplete (lacking in major steps, participants, roles, identification of three (3) important systems and/or steps to ensure their continued availability) and/or is not applicable to the Case Study. 0-8 Points Business Continuity Planning is not included or is severely lacking in completeness and/or applicability to the Case Study. 15 External Research 9-10 Points Two (2) or more sources other than the class materials are incorporated and are substantive and are used effectively. Sources used are relevant and timely and contribute to the analysis and support conclusions. References are appropriately incorporated and cited using APA style. 8 Points At least one (1) source other than the class materials is incorporated and used effectively. Source(s) are relevant and contribute to the analysis. References are appropriately incorporated and cited using APA style. 7 Points At least one (1) source other than the class materials is used and properly incorporated into the text. Reference is cited using APA style. 6 Points A source other than the class materials may be used, but is not properly incorporated, and/or is not relevant or timely and/or APA style for references and citations is not followed. 0-5 Points No external research is incorporated, or reference listed is not cited within text. 10 Report Format 9-10 Points ITSP includes Part 1 (updated/ corrected as needed) and Part 2, integrated into a cohesive document; ITSP is very well written and easy to read; uses correct sentence structure, grammar, and spelling; presented in a professional format. 8 Points ITSP includes Part 1 (updated/ corrected as needed) and Part 2. ITSP reflects effective organization. Few errors in sentence structure, grammar, and spelling; presented in a professional format. 7 Points ITSP includes Part 1 (updated/ corrected as needed) and Part 2. ITSP has some organization; may have some errors in sentence structure, grammar, and spelling. 6 Points ITSP does not include Part 1; Part 1 has not been updated or corrected; ITSP is not well organized; and/or contains several grammar and/or spelling errors. 0-5 Points ITSP is extremely poorly written has many grammar and/or spelling errors or does not convey the information. 10 TOTAL Possible Points 100 October 24, 2020 2 Summer, 2021 IFSM301 Case Study: GG Freightways (GGFRT) GGFRT is a regional transportation and distribution company in operation for over 30 years. The company serves major cities in the southwestern region of the United States. Their headquarters (1), terminals/warehouses (8) and maintenance facilities (2) are noted below. Corporate Profile Corporate Name: GG Freightways Founded: August 1989 Headquarters: Los Angeles CA Terminals/Warehouses (8): Los Angeles CA, San Diego CA, San Bernardino CA, Bakersfield CA, Scottsdale AZ, Phoenix AZ, Tucson AZ, and Las Vegas NV Maintenance Facilities (2): San Bernardino CA, Scottsdale AZ Number of Employees: 750 (includes truck drivers) Fleet: 400 delivery vehicles (average of 50 per terminal) which include: 80 tractor/semi-trailer units, 160 box trucks and 160 panel vans Total Annual Gross Revenue: $35 million Current economic climate: stable industry, highly competitive business environment, 6% profit Future financial goals: 8% profit with 8% reduction in operating costs President and Chief Executive Officer (CEO): Marissa Schmidt To familiarize yourself with commonly used shipping terms in the freight industry, visit this site and refer to it as you read the case study and assignments: https://shipnorthamerica.com/resources/shipping-wiki/shipping-terms/ Current Business Operations GGFRT operates 24 hours a day, 7 days a week. Sales personnel (40 people, five per terminal) visit prospective customers to outline company capability, services provided and costs. When a customer decides to use GGFRT they call the dispatch office with shipment information. Usually they FAX a copy of the bill(s) of lading to a terminal with information such as origin, destination, product description, weight and number of packages. A dispatcher at a terminal makes a list of freight pickups and sends a truck to get the freight. To do this they use the Route Optimization/Freight Tracking System to determine the sequence of pickups by zip code. They use local maps within a zip code to map out the specific order of pickups since there may be several in a zip code area. They have a performance goal of 98% of freight picked up within 24 hours of availability. A driver follows the dispatch order for pickups. Many of the drivers complain that the pickup order is not efficient. When they pick up an order they sign for receipt and either load the freight or guide the customer’s forklift operators to arrange it properly in the truck. After freight is picked up it is brought to the terminal where it is unloaded and sorted by destination. A dispatcher then prepares a delivery ticket (again using the Route Optimization/Freight Tracking System) that is used to load a truck in the proper sequence for delivery. Some trucks take freight from one terminal to another while others make local deliveries. Since some terminals are close to 12 hours away from each other, there are many “out and back” https://shipnorthamerica.com/resources/shipping-wiki/shipping-terms/ Summer, 2021 IFSM301 routes where drivers meet halfway between terminals to exchange freight trailers, which benefits drivers so they don’t exceed their permitted daily maximum driving hours of 11 per day. About half of a terminal’s space is used on any given night. Dispatchers have a goal to turn freight around in the terminal overnight for next day delivery. When freight is sent out for delivery, the driver follows the delivery ticket order. Often, they are held up at a delivery destination by traffic or by lack of available unloading space. This can cause the driver to be late trying to make the day’s deliveries. Sometimes they get to a destination and the facility is closed and they bring the freight back to the terminal for delivery the next day. It is unloaded and re-sorted by destination. The dispatchers then add it to the next day’s delivery tickets. The major freight volumes are between Phoenix, San Diego and Los Angeles (about 70% of total volume). Trucks run at about 70% average of capacity between terminals. Local delivery volume is heaviest in Los Angeles, followed by Phoenix and then San Diego. Local delivery trucks operate at about 80% full while pickups fill about half of the vehicles space. Some customers pick up and/or drop freight at a terminal/warehouse, with their own equipment. Truck drivers communicate with the dispatchers using two-way commercial radios. Some also carry personal cell phones and use them if the radio is out of range. A few drivers also carry GPS devices to help locate addresses. In general, the drivers are content with the company. Pay and benefits are good, and they get overtime pay when deliveries run late. Complaints are few and mostly center around either the sequence of pickup and delivery of shipments or vehicle maintenance. The fleet is maintained at the main Scottsdale maintenance shop and at a smaller shop in San Bernardino. Either one can handle minor maintenance and preventative work. Only Scottsdale can perform major engine and transmission work. Overall the fleet is in good operating condition. All vehicles are on a preventative maintenance schedule which places them out of service two days a month, usually on weekends. Maintenance scheduling is a challenge because it can interfere with the steady flow of shipments both between terminals and for local delivery. There are no “extra” vehicles in the fleet. Administration The company management team consists of the President (CEO), Vice President of Operations (COO), Chief Financial Officer (CFO), Chief Information Officer (CIO), Sales Manager, and a Fleet Maintenance Manager who oversees maintenance and safety. They meet weekly to discuss opportunities and issues and to plan for future goals. Except for the CIO, the management team has been in place for many years. The president of the company just hired its first Chief Information Officer (CIO), Lance, after the previous IT Director retired. He comes from a nearby manufacturer who is also a major customer. At that company he was Deputy CIO and primarily responsible for network operations and security. Summer, 2021 IFSM301 Business Strategic Objectives At a recent meeting the management team decided to change the strategic plan for the business to meet growth and cost goals. They highlighted three new strategies they want to employ to increase profitability and grow the business. 1. First, they want to track the whereabouts of freight both in the terminals and on the trucks to provide customers with accurate delivery dates and times; 2. Second, they want to improve the percent of loaded miles in their fleet to reduce costs by coordinating the pickup and delivery of freight at the same time in the same geographic area; and, 3. Third, they desire to provide warehousing services for customers who want to reduce delivery time to their customers or company by having product available locally for pickup in warehouses or quicker local delivery. Federal/State Mandates In addition, the management team wants to ensure that the company remains in compliance with all applicable federal and state regulations. The ones they are most concerned about are: 1. The Sarbanes Oxley financial audit and reporting requirements; 2. A new federal requirement to conduct a vehicle safety check every 10,000 miles; and, 3. A Federal Motor Carrier Safety Administration (FMCSA) reporting requirement on the number hours per day for each driver (or max per week, etc.). CFO/CIO Goals The CFO has been charged with the overall project. He has asked Lance to help with this effort by modernizing information systems to support the new strategies. He has decided: 1. His first step is to update the IT strategic plan to link to the new strategies in the corporate plan. 2. Second, he wants to engage his customers in a proactive way to first, identify and prioritize IT projects that will help meet the new goals, and then develop a set of requirements for each project. 3. Third, he wants to decide on the best approach to modernize the information systems that will meet requirements at a reasonable cost, and for this he will need to make some changes to the IT organization. Strategic Direction As a small player in a large transportation market serving large cities, GGFRT has many larger competitors. They need to improve their alignment of IT with their business strategic objectives as well as updating their operational processes and IT to become more efficient in serving their customers and acquiring new ones. Current Technology GGFRT is using a mix of older technology products for finance and accounting, route optimization/ freight tracking and fleet maintenance. There are several projects already in the IT portfolio competing for resources. The CIO sees a major challenge in balancing available funding, IT staff workload and project prioritization. The project nearest completion is the adoption of the Precise Financial Reporting System to replace the aging finance and accounting system. It will be completed in six months. There are two other projects under way, one for management reporting (Management Reporting System) and one for a mobile application (Mobile Marketing App) that Summer, 2021 IFSM301 sales staff can use to show potential customers information on the fleet, distribution services available and freight rates, and warehouse options, including a comparison to the competition. The Route Optimization/Freight Tracking System is very important to the operations manager and dispatchers. The current system allows the input of freight origin and destination information. This is taken from a bill of lading which contains a plethora of specific information. When the dispatchers enter the origins and destinations into the system, they are grouped by zip code. The dispatchers then decide which zip codes will be loaded in a truck and in what sequence for delivery. This takes several hours at night to accomplish and must be done as quickly as possible so trucks can be loaded and sent out in the morning for delivery. Arranging shipment sequence within a zip code is done by locating each address on a map and entering it into the system in the best order. Pickups are handled in a similar manner. Freight tracking features are not yet integrated; this should be developed in the future to meet one of the business objectives. The freight tracking features of this system has not yet been developed. The Fleet Maintenance System contains information on each vehicle in the fleet. It includes all vehicle specifications, a summary of all repairs, a preventive maintenance schedule and an inventory of parts on hand. This information is entered by accounting clerks, mechanics, purchasing clerks and anyone else who has time to do data entry. It is not as time consuming as the route optimization/freight tracking system, but it contains information critical to fleet reliability. The greatest challenge is scheduling preventative maintenance since it requires vehicles to be down for two days. The dispatchers do not want the equipment taken out of service because it causes planning headaches. The relationship between dispatchers and maintenance personnel is strained. IT Organization When Lance was hired as CIO last month, he took a close look at the current staffing. The IT staff consists of 25 people, seven of whom are programmers. The programmers are charged with all systems development and integration work for the company. They have three projects in their current portfolio. Their skill sets include SQL, .Net and C+ programming, and Web design. There are eight helpdesk personnel who support the eight distribution terminals (one at each terminal). They work independently but report directly to the CIO. The remaining staff includes two network engineers, a financial systems specialist (an expert in the features of the Precise Financial Reporting System), a computer security expert, two shift supervisors (who report to the CIO and supervise the programmers, network engineers, financial systems specialist and computer security expert at headquarters), a web designer (though there is no website currently in use, this person reports to the shift supervisors), and the CIO and his two personal assistants. The IT staff supports multiple locations. At the Los Angeles headquarters/terminal/warehouse there are 15 servers (they contain all software and data; one stores a backup copy of the data) and 30 PCs for accounting, marketing, IT, administration and management. The terminal/warehouse operations offices have eight PCs for dispatchers, one for each of the maintenance offices, one for parts and one for drivers in the driver lounge. The other seven terminals have 10 PCs each and connect to headquarters by a virtual private network (VPN). Summer, 2021 IFSM301 IT Portfolio Precise Financial Reporting System- This new system will replace the current Finance and Accounting System. It is an off-the-shelf product that requires the owner to make modifications to interface with other systems they may own. Two programmers are working on the project. One is setting up the database and loading the software on servers. The other is learning about the system to write an interface with the Route Optimization/Freight Tracking System. A representative of the vendor of Precise Financial will train the accounting staff in its use. This will take about two weeks. It can be assumed that this new system will cover any Sarbanes-Oxley (SOX) mandate requirements. Management Reporting System- Senior management wanted to know financial information daily. Two programmers have been working on a system to compile the data in a format they can use. They plan to extract information from Precise Financials when it is ready but for now have focused on the current system. They will be done in two months. Mobile Marketing App- The marketing manager asked for an app that sales staff could use to show potential customers information. This would include things like fleet photos and specifications; pictures of the eight terminals and information about the distribution/warehouse services GGFRT can provide; and a comparison of their costs using sample shipments with rates from competitors compared to GGFRT costs. A programmer and the web designer are working on the project. It will take two more months to complete. The purpose of this app is not for tracking of freight and/or driver hours/vehicle mileage. The current design/development process is best described by the way it worked in the selection and integration of Precise Financials. The CFO asked the (former) CIO to develop a new finance and accounting system. The CIO interviewed large, respected companies and, after comparing their capability to the current system, chose Precise Financial Reporting. Two programmers were assigned, and a Precise Financial Reporting System specialist was hired to work between IT and the finance office. The CIO receives progress reports every two weeks. Situation When Lance was hired, he toured each terminal to see the IT setup and understand local business operations. It was important to him to know just how each person used the systems. He spent time with bookkeepers and accountants, dispatchers, drivers and terminal management. Since he came from one of GGFRT’s customers he knew that customers could offer insight into business improvements that would be good for both companies. He visited one large customer in each of the terminal’s area of service to get feedback on how operations between them and GGFRT could be improved. His goal was to see how he could translate what he learned into systems improvements. Interestingly the most complaints came from bookkeepers and accountants. They said the system was slow and data entry was tedious because accuracy was very important. If they entered wrong information, it could cause incorrect billing (rates are based on weight and size), improper loading (the wrong zip code could mean sending freight in the wrong direction unless a dispatcher caught the error), and more. They estimated current accuracy at about 95% but they had no way of knowing for sure. Further, they complained about financial reporting and their ability to meet Summer, 2021 IFSM301 compliance requirements. Reporting was mostly a manual process and data they needed from the system was not easily accessed. Most of them had resorted to keeping small ledgers at their desks to track information they knew they would need for reporting. The dispatchers explained that routing wasn’t all that hard, just time consuming. The routing system grouped all the shipments by zip code. They would take all the shipments in a zip code and look at the weight and size (how much cubic space each one needed in a truck), plot them on a map and then put them in delivery sequence. They thought most trucks left the loading dock full and that that the drivers made adjustments in their delivery sequence when needed. Pickups were a bit more challenging. Sometimes they sent a truck out just to pick up freight and bring it back to the terminal. Other times they contacted a driver to ask them to stop at a customer to pick up a shipment while they were making deliveries. Since they didn’t know exactly how much space was available on the truck this was a hit or miss situation. Drivers were left to decide if they could make it work. Drivers were the most outspoken, probably because no one ever asked for their opinion. They were also the happiest of employees (this might explain why they were non-union). They liked being able to make decisions on the go and they knew the customers very well. In fact, they could call some of them if they were running late and the customer would stay open so they could deliver or pick up a shipment. They seemed to have favorite customers and often spent extra time with them talking about common interests. Generally, they were good ambassadors for the company. Terminal managers were under constant pressure. Their main goal was to get shipments into and out of the terminal as quickly as possible. Delivery times were measured and part of their performance plan. They knew the company had established three new strategies because they were explained in an email they just got. Lance asked how they might provide warehousing services. Most felt they had extra space and could take on some storage but keeping track of the shipments might be a problem. They had to do this manually and the bookkeepers were the ones to keep the records. They felt more bookkeepers would be needed but they didn’t know how many. Lance also met with the maintenance and safety staff at the San Bernardino terminal. The maintenance folks had a large workload and complained that they had a hard time getting equipment in the shop for preventative work. They did not know when equipment would be available until the last minute, so scheduling was always a scramble because they needed to make sure mechanics were available to do the work. They had a lot of complaints about shifting work hours and the effect it had on their personal lives. The Safety Manager expressed concerns over driver hours of service. There are federal regulations that limit drivers to 11 hours of driving at a time. Then they need to take an eight-hour break. The problem was tracking the driver’s hours to make sure they stayed within the law. Dispatchers tried to help with this when they scheduled pickups and deliveries but there was no easy way to do it and the results were often based on best guess. The safety manager who was ultimately responsible for compliance had drivers turn in their hours each day, but this was always after the fact. Summer, 2021 IFSM301 Lance’s customer visits were eye-opening. Most of the customers had automated inventory systems and could easily track products from raw material to finished goods. They knew exactly what they would ship and when, usually several days ahead of time. Some customers however needed near instantaneous shipping. They wanted same-day pickup in a lot of cases and fast delivery. In most cases, they were all able to produce electronic documents such as the bill of lading and email or FAX it to GGFRT. During his interview for the CIO position, Lance was told that the previous IT Director had left a good foundation and that the staff seemed sufficient in number and appeared to be very capable. However, since GGFRT is developing its strategies for the future, the staff must be able to support the business strategies as well as the IT strategies that Lance would develop. One of the first things Lance did was to interview each member of his staff. He discovered that the roles and responsibilities tended to overlap and that morale among his staff was very low. Lance also interviewed the senior leadership of GGFRT and learned that his staff was not meeting their expectations for service. The help desk was perceived as being only somewhat competent and took much too long to respond to problems. Application developers were very slow in delivering systems, and when the systems were finally delivered, they did not reflect what the customers needed or wanted. Network outages occurred too often from the users’ perspective. Finally, the Chief Financial Officer told Lance that the IT costs need to be reduced. Lance knew he had many challenges. He was determined to identify essential projects and then prioritize them for management review. The outcomes would affect almost every aspect of the business. His IT portfolio was about to grow, and her organization will need to change to meet the challenges. Your Task From the perspective of the CIO for GGFRT, you will be completing many tasks over this semester. • In the ITSP #1 assignment, your main goals will be to develop a new business strategic objective that you feel is one that GGFRT needs to accomplish. You will write IT Mission and Vision statements and develop an IT Governance Board, select an IT Governance Methodology, choose your team and discuss their roles on the board. You will also choose a prioritization tool to rank projects and discuss criteria that is important while prioritizing those projects along with a few other tasks. • In the ITSP #2 assignment, your main goals will be to choose IT strategies, aligning them with business strategic objectives from the ITSP #1 assignment. You will complete an IT roadmap of the current project schedule and add a new project that you will deem important to GGFRT’s operations. You will discuss risk of implementing projects from the CIO perspective and create steps of a Business Continuity Plan along with a few other tasks. • For the CIO Memo assignment, you will discuss your leadership philosophy and management style, address IT strategies and discuss how each will benefit the business, create an organizational chart based on the information presented above for the 24 employees in the IT Department, explain how a CIO Organization differs from an IT Department, note Key Services (functions, positions) that will be included/eliminate in your new CIO Organization, create a new CIO organizational chart, and discuss key milestones (related to the Key Services’ section) for accomplishing your new CIO organizational structure along with a few other tasks. Summer, 2021 IFSM301 • In the IT Decision Paper assignment, your project will be presented (from the ITSP #2 assignment), the strategic alignment of your project to one of the business objectives (from the ITSP #1 assignment) and IT strategies (from the ITSP #2 assignment) will be discussed, discussion of where your proposed project would fit into the IT roadmap (from the ITSP #2 assignment) will be discussed, how your project will share data, integrate, or replace an existing or proposed system will be discussed, benefits the project will provide to GGFRT, requirements of the project, anticipated cost/size of the project, performance measures of your project and the system development life cycle steps of your project along with a few other tasks. GGFRT is a fictitious company created for the IFSM 301 Case Study. 02/26/2021 for University of Maryland Global Campus
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