LBC - Transforming into a multi-service company Incorporated in the 1950s as a brokerage & air cargo service provider, LBC

had been evolving into a variety of organizational transformations to catch up with current market trends. In the early 1960s, J. Antonio Araneta purchased the company and operated as an air cargo forwarding business. In the early '70s, his son Carlos R. Araneta, responding to market movements that had revolutionized the forwarding business by introducing the principle of time sensitive service. The service or another term for 24-hour courier service, which also included money remittance services, was offered for delivery anywhere in the country. It was during this period that LBC expanded and increased its Branches from the initial 13 to the current 543, covering practically every city and municipality of the country. These developments stemmed from LBC's expertise as a modern courier company with an instinctive commitment to express delivery. With its proven experience in supplying requirements for courier and money remittance services domestically, LBC eyed to serve the essential needs of overseas Filipinos. Overseas presence Consequently, LBC established its first overseas office in North America, particularly in San Francisco, USA in 1986. Several years later, a branch was opened-up in Vancouver, Canada. Right after the initial North American project, the Asian set up was then primarily established in Hong Kong, while the European office was set up in Madrid, Spain. LBC's overseas network now spans 76 branches, located in different continents and in countries where there are many Filipinos. Because of its continuous growth and development, LBC also engaged in corollary businesses such as travel and banking. These were later matched with Pension and Educational Plans. Newspaper publishing in the U.S. also adds up to its now diversified set of companies. LBC in time got the advantage of the Internet, its add-on elements and the www.teamlbc.com website was born. The company's Internet thrust is to attain the LBC's Year 2020 vision of reaching out to the global community that will ultimately make the world a smaller place. Infrastructure investment With LBC's rapidly growing domestic and overseas network, its information and communications infrastructure has also evolved and constantly enhanced to better

serve an equally growing customer base of about 2,000,000 with transactions going over 30,000 per day. Its database now carries more than nine million records. It also handles an increasing number of overseas transactions from different countries, primarily from the United States with more than half a million customers. According to LBC IT Director, Mr. Eduardo B. Cajigal, LBC started its computerization five years ago. Fragmented data and data connectivity have been challenging concerns. LBC has an extensive points-of-presence from Laoag to Zamboanga with more than 2,500 computers and printers, 12 powerful quad-processor servers, and a back-up recovery site in Makati. The company is currently using a web-enabled monitoring application that periodically updates data and transactions, such as gross sales, incoming shipments, and daily deliveries from LBC branches that are fed to the main distribution center in Pasay City. Top management uses an Intranet web-enabled business intelligence tool that allows them to view real-time changes in sales, trends, and customer behavior for effective marketing strategies and business decisions. It has also implemented a track-and-trace system to monitor the daily status of all its shipments. The system is currently available for LBC personnel and Customer Hotline but would soon be operational for LBC customers via SMS and the Internet. Aside from tracking shipments, LBC has also implemented an incident report monitoring system wherein branches can report any technical problem - whether hardware or software-related - to LBC's technical personnel. To provide up-to-the-minute information for its customers, Cajigal added that the company aims to have one synchronized, integrated database, connecting all the databases from LBC's domestic and overseas branches. As part of its financial services, LBC will soon unveil a remittance system wherein the LBC customer can remit their money over the counter at any LBC Branch within five to ten minutes, instead of the usual 24-hour wait on a door-to-door delivery. This system was developed in partnership with Fujitsu Philippines. Cajigal added that LBC has established a very good rapport with FPI. "The staff has the capability and capacity to provide us the service and we are banking on the experience of FPI." "Technology has become mature, in terms of capacity and service. For me, the business should drive the technology not the other way around. This is key in choosing our ICT partners," said Cajigal. "Providing effective service, maintaining a very economical or cost-effective way of operating the business, and finding ways and means to increase business profits are major challenges for LBC when implementing ICT projects."

Multi-service company Cajigal stressed that as part of LBC's vision in the medium term of making the world a smaller place for Filipino families, the company is looking at becoming one of the leading ICT companies in the Philippines through its subsidiary, W-Network, Inc., within the next 10 years. "LBC, as the premier Access and Delivery Company, always aims to provide better service for our customers. We want to become not only a modern courier company but also a multi-service organization, offering financial services, ICT services, logistics services, digital printing services, and e-commerce, which started with the teamlbc US web site. The company plans to have a web site for each country where LBC has an overseas presence," he said. One important lesson he learns in his job as LBC's IT director is to go back to the basics. "We have to be practical in terms of implementing ICT infrastructure and applications. A case in point is data connectivity. You cannot totally connect all domestic branches because some areas in the Philippines do not even have telephone lines, while wireless connection is out of the question due to its high cost implication. So when implementing technology, it all boils down to what applications are running in your network." For Cajigal, being practical in technology is a sound business decision that counts a lot on continuously transforming LBC as the next-generation multi-service organization.

LBC
I. Viewpoint- Mr. Eduardo B. Cajigal LBC IT Director Time context- January 15,2012 Problem Statement LBC cannot totally connect all domestic branches because some areas in the Philippines do not even have telephone lines, while wireless connection is out of the question due to its high cost implication. IV. Statement of Objective y to become not only a modern courier company but also a multi-service organization, offering financial services, ICT services, logistics services, digital printing services, and e-commerce, to provide a better service for their customers, in order to increase business profits.

II. III.

V.

Areas of Consideration y STRENGTH  A modern Courier Company with instinctive commitment to express delivery.  Trusted company.  Supported by Fujitsu Philippines  LBC customers now enjoy secure, faster money remittances from LBCs domestic and overseas branches.  They can handle the increase of their customers.  Gained recognition for its "Bilis" products and excellent customer service. WEAKNESS  They are very practical in using their budget.  Customers cannot totally connect all domestic branches.

OPPORTUNITY  Soon to unveil a remittance system wherein the LBC customer can remit their money over the counter at any LBC Branch within five to ten minutes.  The company plans to have a web site for each country where LBC has an overseas presence.  Fujitsu Philippines developed a remittance system wherein the LBC customer can remit their money over the counter at any LBC branch within five to ten minutes.

THREATS  Fragmented data and data connectivity have been challenging concerns.  A part of its financial services to LBCs growing volume of money remittances from overseas Filipinos, LBC is looking for a system to provide over-the-counter remittance, instead of the usual 24-hour wait on a door-to-door delivery to its customers.

VI.

Alternative Courses of Action y To engage in lending to small and medium enterprises and rural industries. ADVANTAGES  New company asset  Determination in the company DISADVANTAGES  Expensive  Time constraints y To unveil a remittance system wherein the LBC customer can remit their money over the counter at any LBC Branch within five to ten minutes, instead of the usual 24-hour wait on a door-to-door delivery. ADVANTAGES  Better connection to the consumer.

Providing effective service, maintaining a very economical or costeffective way of operating the business, and finding ways and means to increase business profits are major challenges for LBC when implementing ICT projects. DISADVANTAGE  RISKY

VII.

Analysis ACA 1

-engaging to a small and medium enterprises and rural industries. In engaging to this kind of business, the company have a new asset that will be an additional to their assets. It will also give determination to the company in expanding their business that will power them. However, in spite of that advantage is it would also another expenses to them, and have another time allotment as their disadvantages. ACA 2 -to unveil a remittance system wherein the LBC customer can remit their money over the counter at any LBC Branch within five to ten minutes, instead of the usual 24hour wait on a door-to-door delivery. In this action the customers has a better connection to the company and the company can give their costumers a better service. ACA 3 -Providing effective service, maintaining a very economical or cost-effective way of operating the business, in implementing ICT projects, having this project it was risky to the company, it might be result to a negative impact to the customers. Maybe some customers mighty are hassle in this kind of project.

VIII.

Conclusion

Rate 1-10, 10 is the highest ACAS ACA 1 VARIABLES EFFECTIVENESS 3 5 2 ACA 2 ACA 3

COST-EFFECEINT

NEUTRAL

TOTAL

15

Therefore, ACA 2 is the most effective in order that the customers can totally connect all domestic branches because of unveiling a remittance system wherein the LBC customer can remit their money over the counter at any LBC Branch within five to ten minutes, instead of the usual 24-hour wait on a door-to-door delivery. In this action the customers has a better connection to the company and the company can give their costumers a better service. Then in this action, it is support by Fujitsu Philippines to develop this remittance system.

IX.

Plan of Action WHO WHEN WHERE BUDGET

WHAT