IT STRATEGIC PLAN PART 1 1 IT Strategic Plan Part 1 IT STRATEGIC PLAN PART 1 2 Business statement KALCH Distribution Company (KDC) is a regional...

IT STRATEGIC PLAN PART 1 5

IT Strategic Plan Part 1


Business statement

KALCH Distribution Company (KDC) is a regional distribution and transportation organization that has been working for over 60 years and it serves the main cities in the Mid-Atlantic region. It has its headquarters in Wilmington, Delaware and it has 6 distribution terminals namely; New York City, Philadelphia PA, Baltimore MD, Washington DC, Newark NJ and Wilmington DE. They are used for consolidating freight, 100 delivery vehicles which has 40 box trucks, 20 tractor/semi-trailer units and 40 panel vans. The growth is projected to be 5% per year, the reduction of expenses is to be 5% and their current revenue is $39 million a year with profit running at 4%.

Business strategic objectives

KDC’s business strategic objectives include; provide warehousing services for clients hence reducing delivery time. They also want to improve the percentage of loaded miles in their fleet thus reducing costs by coordination of delivery and pickups of freight at the same time in the same region. Also, they want to track the whereabouts of freight both in the terminals and on the trucks hence providing customers with accurate delivery times and dates. The company can also improve customer services through training the employees on their interpersonal skills (Gerow, 2015).

IT Vision and Mission Statement

The vision of KDC is “to promote transparency to ensure our customers are our number one priority”. This is through using of information technology system that will ensure accurate financials. Also, they use the mobile application which show customer information on the fleet.

The mission statement of the company is “to improve the transportation industry and ensuring there is sanity.” This is by use of the new system that the employees will be trained. The management reporting system will enhance transparency on the daily information activities (Whittington, 2014).

Inventory of Current IT Systems

The table below analyzes the current information system used by KDC to help in its growth. There are three systems namely; accurate financials which has a function of replacing the finance and accounting system used currently. The tables also gives the strategic goals aligned, the department and the IT resources to be used.

Current system

Function/Description

Strategic Goal aligned to

Business Unit/department

IT Resources (people equipment)

Accurate Financials

To replace the current finance and accounting system.

Improving transparency

Finance and accounting department

2 people

Management Reporting System

Give daily financial information

Improving the management report system.

Financial department

2 programmers

Mobile Marketing Application

To show potential customers information.

To Improve marketing.

Marketing

1 programmer and 1 designer

Reference

Gerow, J. E., Thatcher, J. B., & Grover, V. (2015). Six Types of IT-Business Strategic Alignment: An investigation of the constructs and their measurement. European Journal of Information Systems, 24(5), 465-491.

Whittington, R. (2014). Information systems strategy and strategy-as-practice: a joint agenda. The Journal of Strategic Information Systems, 23(1), 87-91.