1072019 3 business strategic objectives at a recent

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10/7/2019 3 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

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