Here is the feedback from the part 1
You have tried to identify and breaking down the IT strategic plan of GGFRT Distribution Company into several long and short-term goals and how you plan to achieve them. The assignment was posted on time and you demonstrated that you have clear understanding of the subject matter. However, there is a very significant statement that I would like to point out to you:
For IT governance process at GGFRT to ensure that IT projects align with the business needs and strategy goals of the organization, there has to be a full participation of the CEO and COO in addition to the CIO. The top management must provide timely resources for the plan to be successful.
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.
Part Two
1. IT Strategies – 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
October 24, 2020
1
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/Busi
nessEnabling
(state the
words
“Internal” or
“Business
Enabling”)
Example: do not use
but leave it in the
table when
completing this
section.
•
Business Strategic Objective: Meet FMSCA reporting
Internal
•
Explanation of the Alignment of the IT Strategy to the
Business Strategic Objective: By acquiring or developing
requirements for driving hours by the company’s drivers
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.
Meet compliance
requirements by
updating current
technology or
developing/acquiring
new technology to meet
those mandates
1.
•
•
2.
•
•
3.
•
•
4.
•
•
Business Strategic Objective:
Explanation of Alignment of the IT Strategy to the
Business Strategic Objective:
Business Strategic Objective:
Explanation of Alignment of the IT Strategy to the
Business Strategic Objective:
Business Strategic Objective:
Explanation of Alignment of the IT Strategy to the
Business Strategic Objective:
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
October 24, 2020
2
required. Assume that the beginning of Quarter 1 is today with the projects already in the development
process. The table below is a sample only and shows the five functional areas of an example
company and two systems for each area. 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. Be sure to include an introductory paragraph to explain the
table that will follow. (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.)
Projects by
Functional Area
Qtr. 1
Qtr. 2
Qtr. 3
Qtr. 4
Qtr. 5
Qtr. 6
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. Proposed Project: 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.
That should include the three projects in the roadmap in the prior section. 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.
Solutions such as backups, training of employees, utilizing social media, customizing
packaging of products for storage and others involving Human Resources are not
appropriate solutions for this assignment.) Refer to Case Study for ideas for a new project.
This is a major part of the next assignment. Give this some thought.
4. Risk Management – (1) List and explain 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: accept, reject, transfer or mitigate)? You must discuss
specifics, related to the case study in your response.
October 24, 2020
3
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. Business Continuity Planning–
(a) List and explain the general 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, focusing on the BCP
(not general company roles) of each position on the BCP team: these should be
specific personnel from the case study.
(c) In addition, from the Case Study, identify what you consider the three most important
systems currently in use at GGFRT along with justification of your choices.
(d) Based on the three systems chosen in (c), explain the specific steps 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)
October 24, 2020
4
•
•
•
•
•
•
•
•
•
•
•
(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 technological systems/justification for their continuity of
operations
d. Specific steps to ensure these three technological systems remain operational
Write a short concise paper: Use the recommendations provided in each area for length of response.
It’s important to value quality over quantity.
Content areas should be double spaced; table entries should be single spaced.
To copy a table: 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 tables is preceded by an introductory sentence that explains what is
contained in the table, so the reader understands why the table has been included.
Use at least two resources with APA formatted 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 Reference Page 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 are not required for this report; however, please include page numbers.
Writing should always be in third person.
Compare your work to the Grading Rubric below to be sure you have met content and quality criteria.
Submit your paper as a Word document, 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 your last name first in the filename:
Lastname_Firstname_ITSP2
October 24, 2020
5
GRADING RUBRIC:
Criterion
IT Strategies
IT Portfolio
Roadmap
90-100%
Far Above
Standards
18-20 Points
80-89%
Above
Standards
16-17 Points
70-79%
Meets
Standards
14-15 Points
60-69%
Below
Standards
12-13 Points
< 60%
Well Below
Standards
0-11 Points
Four (4) or more
IT strategies
(including at least
two (2) businessenabling
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.
18-20 Points
Three (3) IT
strategies
(including two
(2) businessenabling
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.
16-17 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.
14-15 Points
Fewer than
three (3) IT
strategies (two
(2) businessenabling
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.
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.
12-13 Points
0-11 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
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)
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.
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.
Little or no
information is
provided on
the IT
Portfolio; table
is missing;
and/or
information
presented
does not apply
to the Case
Study.
October 24, 2020
Possible
Points
20
20
6
Criterion
Proposed
Project
Risk Management
90-100%
Far Above
Standards
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.
9-10 Points
80-89%
Above
Standards
and
demonstrates
understanding of
course concepts,
analysis, and
critical thinking.
Table is
professionally
presented, uses
a logical
structure, and
spelling is
correct.
70-79%
Meets
Standards
60-69%
Below
Standards
< 60%
Well Below
Standards
Possible
Points
8 Points
7 Points
6 Points
0-5 Points
10
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.
14-15 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.
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.
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.
No Proposed
Project is
included, or
proposed
project is not
appropriate to
the Case
Study and/or
is not
explained.
12-13 Points
10-11 Points
9 Points
0-8 Points
Four (4) or more
risks and impact
are listed and
At least three (3)
risks and impact
are listed and
Three (3) risks
and impact are
listed and
Fewer than
three (3) risks
and impact are
Risk
Management
section is not
October 24, 2020
15
7
Criterion
Business
Continuity
Planning
90-100%
Far Above
Standards
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.
14-15 Points
80-89%
Above
Standards
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.
70-79%
Meets
Standards
explained, along
with techniques to
prevent and/or
mitigate them;
risks and
techniques are
appropriate for
the Case Study.
60-69%
Below
Standards
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.
< 60%
Well Below
Standards
included; few
risks and
impact are
listed or
explained
and/or risks/
techniques do
not apply to
the Case
Study.
Possible
Points
12-13 Points
10-11 Points
9 Points
0-8 Points
15
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
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;
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.
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.
Business
Continuity
Planning is not
included or is
severely
lacking in
completeness
and/or
applicability to
the Case
Study.
October 24, 2020
8
Criterion
External
Research
Report
Format
90-100%
Far Above
Standards
thorough
understanding of
course concepts,
analysis, and
critical thinking.
9-10 Points
80-89%
Above
Standards
demonstrates
understanding of
course concepts,
analysis, and
critical thinking.
8 Points
70-79%
Meets
Standards
60-69%
Below
Standards
< 60%
Well Below
Standards
Possible
Points
7 Points
6 Points
0-5 Points
10
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.
9-10 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.
At least one (1)
source other than
the class materials
is used and
properly
incorporated into
the text.
Reference is cited
using APA style.
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.
No external
research is
incorporated,
or reference
listed is not
cited within
text.
8 Points
7 Points
6 Points
0-5 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.
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.
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.
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.
ITSP is
extremely
poorly written
has many
grammar
and/or spelling
errors or does
not convey the
information.
10
TOTAL
Possible
Points
October 24, 2020
100
9
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.
Winter, 2021
IFSM301
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” 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.
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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.
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.
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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 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
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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 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).
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 SarbanesOxley (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.
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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 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
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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 eighthour 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.
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.
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Your Task
From the perspective of the CIO for GGFRT, you will be completing many tasks over this
semester.
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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.
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.
01/14/2021 for University of Maryland Global Campus
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