Evaluation Paper on KYLOD Company

1. Business Statement

KYLOD is a company that has been in operation for more than 40 years. It specializes in regional transportation and distribution of products where it serves the big cities in the US Midwest region. It has its headquarters in Chicago, Illinois. The company operates five distribution terminals located in Chicago IL, Milwaukee WI, Indianapolis IN, Grand Rapids Mi. The fleet is kept at the key maintenance shop which is in Chicago as well as at a smaller shop located in Naperville. Chicago is the only t terminal that is capable of performing massive engine and transmission work. The company's growth has been dormant due to a sluggish economy. The company desires to achieve a growth of 6% per year. It also expects to reduce its expenses by 6% to undertake new projects. The current revenues for KYLOD per year are $42 million while profit is at 5%.

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2. Business Strategic Objectives

Business Strategic Objective 1: Offer Warehousing Services

Explanation: the company will store customer's goods for a short period to allow its customers to lessen the delivery time for their local customers

Business Strategic Objective 2: Improve the Percentage of Loaded Miles

Explanation: The Company intends to improve the percentage of loaded miles in its fleet to decrease the costs by synchronizing its pickup and delivery of merchandise when in a similar geographic location.

Business Strategic Objective 3: Offer Customers Accurate Delivery Dates and Times

Explanation: KYLOD intends to monitor the movement of goods in the terminals as well as on the trucks to ensure that they provide customers with the correct information regarding the delivery dates and time.

New Strategic Objective: Be Compliant With Federal and State Regulations

The company desires to adhere to all relevant federal and state regulations. These regulations include the Sarbanes Oxley regulations that relate to financial audit and reporting, a new federal law that requires companies to inspect vehicle safety for every 10,000 miles and a federal motor carrier safety administration reporting requirement that desires to establish the number of hours drivers work per day.

3. IT Vision and IT Mission Statements

IT vision statement: create and implement necessary and effective IT capabilities for better operations and collaboration across various terminals to ensure that customer receive excellent services and to reduce costs

IT Mission statement: establish a unified and knowledgeable department through prioritized, safe and innovative use of IT resources.

4. Governance

1. The IT governance process should work for KYLOD by ensuring that the company's IT roles support the business strategies and objectives. The IT governance process should also help KYLOD adhere to regulations associated with financial and technological accountability. It should also serve to assist the company in protecting confidential information, become financially accountable, and play the role of data retention and recovery (Laudon & Laudon, 2015). It also should help the company meet the demands from customers, shareholders and stakeholders by providing a structure of best practices and controls (Gaines, 2018).
2. The management team should be the participants. They include the president, Vice President of Operations, Chief Financial Officer (CFO), Chief Information Officer (CIO), Sales Manager, and a Fleet Manager. The company's management team has been in place for many years except for the CIO, and therefore they know the challenges of this organization. These people are on the governance board since they are empowered, decisive and collaborative. The president and vice president will serve as the chairmen of the board. They will have the authority to make important decisions and also engage and provide direction to the governance board members and stakeholders.
3. The governance methodology that should be created is ITIL. ITIL should be used to help the company effectively integrate IT into its core business processes (Weill & Ross, 2004).
4. The governance body will serve to ensure that the company implements the best IT systems that match with the company's resources, goals and priorities
5. Projects should be prioritized based on the level of their importance, whether the company can afford and the number of resources required.

References

Gaines, C. (2018). Information systems as a strategic Partner in Organizational Performance. Journal of Management and Marketing Research, 1-17.

Retrieved 1 November 2018, from http://www.aabri.com/manuscripts/11997.pdf

Weill, P., & Ross, J. W. (2004). IT governance: How top performers manage IT decision rights for superior results. Harvard Business Press.

Laudon, K. C., & Laudon, J. P. (2015). Management information systems (Vol. 8). Prentice Hall.