Rusty Rims IT Strategic Plan, Part 1

RustyRims IT Strategic Plan, Part 1

Joy Gillum

IFSM 301 6380

Dale Reed



RustyRims IT Strategic Plan, Part 1

1.Business statement

RustyRims (RR) is a company that operates in the transport industry,connecting major cities within the Atlantic region. Its headquartersis located in Wilmington, but it has about six distributionterminals. RR serves customers who wish to have their itemstransported from one port to their premises, premises to the port,and from one city to another. The company uses about 100 deliveryvehicles, 40 box trucks, 20 semi-trailers, and 40 panel vans toachieve all deliveries. The environment of the company’senvironment is competitive and this has reduced its chances ofgrowth. The economy of the environment f operation is relatively lowand the future prospects stand at an annual growth of 5% per year anda reduction in expenditure with the same percentage. With the currentrevenue of $39 million a year the company can register a considerableincrease in profits when the prospects are considered.

2.Business strategic objectives

  • To increase the company’s growth rate

  • To reduce the cost of operation

  • To increase efficiency in all operations

  • To increase the company’s compliance with the laws and regulations

3.IT Vision and mission statement

TheIt Department’s vision is to provide all departments with easy touse and efficient technology that is applicable in all operations,including accounting, tracking of deliveries, communication, andmaintenance services. The IT Department’s mission is to providereporting, accounting, route optimization, and fleet maintenanceinfrastructures to all departments. The department is dedicated toensuring that all technological infrastructures help otherdepartments become more efficient, communicate more effectively, anddeliver services at the least cost possible.


Corporategovernance is a complex exercise that requires the concerted effortsof different stakeholders. The process of governance includes asystem of rules, processes, and practices by which organizations arecontrolled and directed (Khan, 2011). In the case of RR, the Carol,the company’s CIO, should engage the company’s President, ChiefFinance Officer, and human resource manager. The president shouldprovide the overall direction and vision for the IT projects. The CFOshould do budgeting and allocate financial resources to the ITprojects (Cameron &amp Little, 2004). The human resources managershould organize staff training programs and ensure adequate staffingto the IT projects. The VP of operations is charged with overseeingthe day to day running of activities and to ensure that everything isin order. Setting of goals and ensuring growth and strategic planningare other responsibilities that are entrusted with the VP ofoperations.

Outof the four types of governance methodologies (policies andprocedures, board of directors, auditing, and the balance of power),RR should focus more on the board of directors. The board ofdirectors is a body that establishes the company’s mission, vision,values, and strategies (Adams, Hermalin, &amp Weisbach, 2010). Theboard should use its authority in the company to prioritize itprojects that are in line with the organizations strategic objectivesand mission. Methodologies used should also include an additional ofvalue to the existing system to ensure quality results.

5.Inventory of current IT projects

RRhas several IT systems used in different departments. Although thesystems that are currently being used have some benefits to thecompany, they have not helped the company achieve its desired levelof efficiency. Table I below will analyze the existing systems byfocusing on their functions, strategic objectives to which they arealigned to, business units where they are utilized, and the ITresources allocated to those systems. The accounting system increasescompliance since all the required financial figures are included andaccounted for. This encourages transparency and ease of trackinglosses.

Table1: Current IT projects

Current system


Strategic goal aligned

Business unit

Business benefits

IT resources

Accounting financial systems

Financial reporting

-Increase in efficiency

-Increase in compliance

Department of finance

-Efficient financial reporting.

-Reduce errors in financial statements




Route optimization and freight tracking system

Tracking the movement of cargo and company vehicles

-Increase in efficiency

Department of operations management

-Easy to management movement of company vehicles

-Easy to arrange shipment sequence.



Fleet maintenance system

Management of vehicle repair and maintenance services

-Increase efficiency

Department of maintenance

-Increase reliability of all vehicles by providing preventive maintenance services.

-Reduce chances of unexpected vehicle breakdown.

-Make it easy to monitor conditions of all vehicles.




InformationTechnology Strategies

Thefirst strategy on information technology is on cost management. Fromthe case study, the annual revenues are $39 million and this can beimproved. From the future prospects, the reduction in annualexpenditure would be appropriate and increasing the profit margin canbe useful. Secondly, the human capital management could help inachieving better revenue. The current competition in the businessenvironment is high and this is the major cause of reduced profits.When the company seeks some external funding from individuals, theirchances of increasing their competition would be higher. Takingcontrol of vendor management to reduce unnecessary uncertainties andoverall risk strategies can be beneficial (Ghobakhloo,Hong, Sabouri, &amp Zulkifli, 2012).


Thisportfolio gives an overall overview of the company. This includes thespecific activities to be undertaken and their stipulated time. Inthe overview, it is evident that the activities are t have effects atdifferent levels without depending on the others. Sales, marketing,developing of the product, finance and proper technical support arenecessary for improvement.

Projects by functional area


Qtr. 2

Qtr. 3

Qtr. 4

Qtr. 5

Qtr. 6


Sales force automation

Online quoting

Product development

Collaboration-wikis blogs

Showcase company products


Customer experience

Marketing analysis


Business intelligence

Global payroll

Technical support

Network upgrade

Data center move

Product maintenance

Customer satisfaction

Product availability


Productmaintenance is the next proposed project. After all the projects havebeen successful, ensuring that the customers are satisfied in allfrom the second quantity to the last is salient. The products shouldbe available from the onset of the project to completion time.Product maintenance would make sales easier, financial planning andfurther development into better products can be better. It is fromthis maintenance planning can be successful (Ravichandran&amp Liu, 2011)



Thefirst risk to be managed is financial. This is the most critical partto be managed since when it is poorly handled, there could be highchances of company fail. Secondly managerial risks should be handledwith care. This is the backbone of every organization and itdetermines the daily operations of the company. The managementdetermines the next course that the company takes and this iscrucial. Operational risks and political risks are to be consideredconsidering the competition in the area of operation. Operationalrisks include the day to day activities that can be affected by themanagement or the employees. The risks can be controlled by having aproper strategy in place that would ensure good management, hiringbetter employees and a good financial plan (Kutsch&amp Hall, 2010).


Toensure proper business continuity, five steps are necessary. First,risks must be identified then secondly analyzed with relevant tools.Design a strategy to handle the risk, plan on the appropriate way toexecute then take a success measurement. These steps will help in theproper growth of companies with minimum risks. The identified stepswould take into control the entire possible situation that wouldinterrupt the smooth operation of the business. The strategies forcontinuity would take into control the possible effects ofcompetition that must be properly handled. When competition isignored, the competitors can have an easier way out and kill thecurrent business. During execution, it can the plan should be madeeasier to understand and employ. In the last stage, success measuringshould also include identifying the effects of the competitors(Lindström,Samuelsson, &amp Hägerfors, 2010).


Adams,B., Hermalin, E., &amp Weisbach, S. (2010). The role of boards ofdirectors in corporate governance: A conceptual framework and survey.Journalof Economic Literature,48 (1), 58-107.

Cameron,J. &amp Little, I. (2004). Chieffinance officer: Role and responsibility.Victoria: Ego Press.

Ghobakhloo,M., Hong, T. S., Sabouri, M. S., &amp Zulkifli, N. (2012).Strategies for Successful Information Technology Adoption in Smalland Medium-sized Enterprises. Information,3(1),36–67.

Kutsch,E., &amp Hall, M. (2010). Deliberate ignorance in project riskmanagement. InternationalJournal of Project Management,28(3),245–255.

Lindström,J., Samuelsson, S., &amp Hägerfors, A. (2010). Business continuityplanning methodology. DisasterPrevention and Management,19,243–255.

Ravichandran,T., &amp Liu, Y. (2011). Environmental Factors, ManagerialProcesses, and Information Technology Investment Strategies. DecisionSciences,42(3),537–574.

Khan,H. (2011). A literature review of corporate governance. E-business,Management, and Economics,25, 1-5.

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