RUNNING HEAD: RUSTY RIMS ITSP: PART 1 1

Rusty Rims IT Strategic Plan: Part 1

IFSM 301
University of Maryland University College
 RUSTY RIMS ITSP: PART 1 2

Part One

1. Business Statement

Rusty Rims is a transportation and distribution company operating out of the Mid-

Atlantic region. The companies 6 distribution terminals are strategically placed

throughout the region, and are located in: Philadelphia PA, Baltimore MD, New York

City NY, Washington DC, Newark NJ, and finally Wilmington DE, which also serves as

the operational headquarters. Although growth has been stagnant recently, the 24 hours a

day, 7 days a week operation of Rusty Rims provides for a relevant and competitive

transportation and distribution business in a highly competitive environment.

2. Business Strategic Objectives

According to Pham (2013), a business strategy is a coordinated set of choices

that positions an organization to generate superior long-term financial or social returns.

The following business strategies are developed to provide long-term financial or social

returns for Rusty Rims while increasing profitability and growing the business. First, the

introduction of a storage for customers will allow customers to reduce shipping times to

their customers. Second, the improvement of the percent of loaded miles in the fleet will

reduce costs by providing the coordinated pickup and delivery of freight located in the

same geographical area. Third, the ability to track freight at all times throughout the

delivery and storage process will give customers a more accurate delivery date and time.

Lastly, reducing Rusty Rims annual expenses by 5% with the introduction of IT products

to manage, log data, and provide enhanced applications to employees and customers. The

consolidation and more efficient processes will be paramount to reducing costs.

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Additionally, the management must ensure that various state and federal

regulations remain in compliance. The 3 regulations most concerning are: the Sarbanes

Oxley financial audit and reporting requirement, the requirement to conduct a vehicle

safety check every 10,000 miles, and a Federal Motor Carrier Safety Administration

(FMCSA) reporting requirement on the number of hours per day for each driver.

3. IT Vision Statement

To be the market leading benchmark in the use of Information Technology in the

transportation and distribution industry

IT Mission Statement

Rusty Rims IT will provide a world class, continuously developing operating

environment through the use of Information Technology and support the ongoing and

future business processes (High, 2014).

4. Governance

According to Norfolk (2011), IT Governance is part of corporate governance.

Specific roles of IT governance are to make sure that automated systems are designed to

effectively work towards business goals that have been identified by the organization.

Additionally, IT governance must ensure that IT related risk is identified and managed,

and also ensure that automated information systems provide an accurate portrayal of the

businesses operation.

With this background and definition of how IT governance is aligned to the

business, it is extremely important that senior leadership from all departments maintain a

position on the governance board. Determining a clear objective that is within the budget
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allocation requires key personnel capable of making decisions, for example, the Chief

Financial Officer (CFO) or Vice President for budget analysis needs. By mapping IT to

the business, and maintaining a functioning IT governance board, the many-to-many

relationship of IT with the companies departments will provide Rusty Rims a cutting

edge approach to Information Technology in the industry.

5. Inventory of Current IT Projects

The following table outlines current projects and provides their relationship to

Rusty Rims. The Accurate Financials, Management Reporting System, and Mobile

Marketing App are current ongoing projects that will continue to be worked on. The

Route Optimization and Freight Tracking System will undergo an improvement to speed

up time required for dispatchers to input data and organize for shipment. Also, the Fleet

Maintenance System will be improved to improve the tracking and scheduling of

required maintenance as indicated in the FMCSA requirement. The Fleet Maintenance

System project will begin when the Accurate Financials project is complete and IT

programmers are available.

Current Function/ Strategic Business unit/ Business IT

System Description Goal department Benefits Resources
aligned to (people,
equipment)
Accurate Automation The Finance and Improve Two
Financials of all Sarbanes Accounting data entry programmers,
financial Oxley process for approx. 2
and financial accountants; weeks to
accounting audit and generate complete
data reporting financial
requirement reports
Management Provide Expense Management Daily reports Two
Reporting financial tracking; the will allow programmers,
System information Sarbanes management approx. 2
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to senior Oxley to adjust months to

management financial operations as complete
on a daily audit and needed
basis reporting
requirement
Mobile Sales staff Increase Marketing/Sales Gives sales One
Marketing App can use to profitability staff an programmer
show and grow additionally and web
potential the business tool in designer,
customers completing a approx. 2
information sale months to
about Rusty complete
Rims
Route Dispatchers Applies to Operations Reduce Two
Optimization and all strategic input time, programmers,
and Freight Delivery goals (High Organize approx. 1
Tracking drivers are Priority) shipments month to
System provided an for delivery complete
optimal and pickup
system for
tracking
Fleet Tracks all FMCSA Maintenance Federal Two
Maintenance maintenance requirement regulations programmers,
System related data maintain in approx. 1
compliance month to
complete

Feedback
Score
9.2 / 10 - 92 %
Feedback Date
Jan 29, 2016 4:57 PM
Assignments Feedback
Separating the strategic objectives would allow you to fully address each of them separately.
The governance section needed more depth.
Nice work overall.
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References

High, P. A. (2014). Implementing world class IT strategy: How IT can drive organizational
innovation John Wiley & Sons (US). Retrieved from
http://common.books24x7.com.ezproxy.umuc.edu/book/id_72795/book.asp

Norfolk, D. (2011). IT governance: Managing information technology for business, 2nd edition
Thorogood. Retrieved from
http://common.books24x7.com.ezproxy.umuc.edu/book/id_46594/book.asp

Pham, T., Pham, D. K., & Pham, A. T. (2013). From business strategy to information technology
roadmap: A practical guide for executives and board members CRC Press. Retrieved
from
http://common.books24x7.com.ezproxy.umuc.edu/book/id_51941/book.asp