Task 4

Introduction:

Read the attached “Shore & More Bicycles Case Study” before completing this task.

Scenario:

You are the new IT team member of Shore & More Bicycles and have been asked to
research a new IT system by the chief technology officer. The company is expected to
double in size within four years.

Shore & More Bicycles is a U.S. based import/export company with many of its products
coming from suppliers in Asia. The system you propose should include technology that can
grow with the business and support its total operations, including customer Internet orders,
retail store operations, supplier orders and communications, and internal operations.

You will consider the current technology and emerging technology and, in your final report
to the chief technology officer, suggest an IT system with improved technology, including
hardware, software, system support, and human resource needs.

Task:
A. Analyze how the project aligns to the growth strategy of the company.

Shore & More Bicycles is operating its bicycle business in a fierce competitive market where
both low-end and high-end bicycle are served to the customers. But there must have
differentiation in bicycle product because customers are more concerned with the varying
features installed in the cycle such as a light bicycle. They can pick up and carry out when they
need to carry on something if an area is not conducive to riding or pushing the bike, like to carry
items while biking, thus making it necessary to have a basket or racks for attaching bags.
However, Shore & More Company is operating its business in an area where the economic
condition is congenial for the bicycle business not for the automobile production business, highly
congested area and most of the people have a disposable income. The goal of the strategic
planning is to be the first choice for riders of all ages, experiences, and levels of competition.

The company’s strategy is to develop bicycle design and grow the company to supply bicycles to
every-day users as well as high-end racers with a view to satisfying the demand of the customers.
As the company is only in the third year of business, the company is lean in staffing, has low
overhead costs. Moreover, it has networks for international suppliers and designers as well as
access to international and domestic markets. However, this company has a competitive price
structure compared to its existing competitors. They have been very successful in their first two
years of operation and it is expected by the company spokesperson that the third year figures will
be even better. The main key business drivers are strong marketing, sales, engineering and design
operations and functions and human resource operation and functions.

To meet the strategic goals, Shore & More Bicycles needs to complete the following objectives:
 Establish an international marketing campaign to raise brand awareness that includes a
10% increase in exhibiting at international racing events, 15% increase in apparel sales,
and a 30% increase in bicycle sales.
 Establish a domestic marketing campaign to raise brand awareness that includes a 20%
increase in racer sponsorships, a 20% increase in apparel sales, and a 25% increase in
bicycle sales.
 Establish job descriptions to target job searches for the specific skills needed to best
advance the productivity of the company.
  Establish at least five educational internships to gather new information from students,
test the ability and knowledge of the students, and examine their fit with the company.
 Develop safety programs for elementary and primary students in domestic and
international schools to introduce the brand to the students and have them utilize the
bicycles during the safety programs.

To achieve the strategic objectives, how the company align its expansion strategy that will
ultimately ensure the above mentioned goal of the company. To achieve the strategic goal, new
techniques for analyzing data related to marketing campaigns to determine how to increase brand
recognition in the international and domestic markets simultaneously. In addition to this,
performance management is one way of participation with the goal to measure productivity for each
employee. The company planned strategy to grow in the bicycle market is almost double in the next
four years. To align this strategic objective, current market and local and global market data analysis is
very important. As there are a number of existing competitors in the market, Shore and More Bicycles
has to analyze the nature of product they should introduce. Most of the competitors invest in heavy
metal to produce bicycle but from the customer analysis, it is found that they like to have light
bicycles so that they can move it on smoothly. As the company is in its initial stage of business, they
can focus developing area of any country rather than the developed area and they must focus rural
people as well as people who live in congested area where automobile business is not so flourished.
To maintain the goal of growth strategy, teaching interns and primary school children could be the
target group and they have to take initiatives to raise awareness of the brand recognition to them. It is
very important for Shore & More Bicycles because existing competitors already have promoted
renowned racers and put adverts in the international game place to increase brand value. The
company can also increase its brand value through their participation in safety programs in schools
and colleges. This program will increase target customers awareness and thus the brand value of
the company will foster to primary school children who are large buyer of bicycles.

B. Perform a gap analysis of the company’s current technology and future needs.
1. Discuss one IT system that could best address the company’s future technology
needs. Include the following components in your discussion:
a. Currently available hardware
b. Currently available software
c. Company’s need for system support
d. Emerging technology for later implementation into the proposed system
a. Justify why the IT system you recommended would be the best fit for the
company.

GAP Analysis: GAP analysis is a process of comparing between actual performance and
expected performance of a business to see whether it is meeting its expectation and identified
resources are being used property to meet the objectives of the company (Investopedia). In the
following a GAP analysis of Shore & More Bicycles is presented.

Future state/needs Current Next Actions/Proposals

Payroll system meets current
company size but needs to
expand payroll to double so
that future expansion supports
growth
Situation/technology
This is now only allows self
reporting with managers
approval of hours worked by
the worker. Manual system.
Payroll system needs to be
integrating with automated
coding by using computer
networking which will
automatically adjust workers
work hour.
Bicycles design needs to be
more technologically advance
3D software oriented to meet
the customers demand.
Email system needs to support
150 users and speed and
storage must be doubled,
Customer ordering system will
be via online order placement
by company website along
with other way.
Own networking system and
wireless network with highest
security system development.
Hardware system for call
center and employee will be
latest technology so that more
customers can be served with
less CSR time.
Allows for a single user to
design new styles and can
view in computer in 3D view.
Email system is currently
adequate up to 100 users and
limited storage capacity.
Customer orders are made
primarily through phone calls
or at dealership sites and via
email.
Current access is through a
local provider along with
Ethernet system.
Currently call center seats are
limited to 50 seats and
response time is 30 minutes.
This design share is only
possible in single computer
and it should be share through
networked system to use at
multiple sites for
collaboration and approvals
Email system should be
updated with large storage
capacity for filtering large
bulk of email order within
short time.
Need to develop sophisticated
website to take order
placement by customer as well
as need to have single system
to avoid duplication.
Wireless and wired network
system to avoid possible noise
that support high bandwidth
application should need
subscribed.
Need to Develop a system that
is more efficient and timely to
access the CSR necessary to
answer questions or take
order.

From the GAP analysis, it is apparent the currently company has some limited technology access
to support the future growth of expansion plan. Currently, the company has some hardware. This
hardware includes Desktop PCs, Laptop computers, wireless router, Ethernet, Smartphones, cell
phone, landline phone, scanners, servers and laser printers. On the other hand, currently available
software includes 3D engineering design software program on a standalone machine and some
other designing software. Currently the company needs to design superior bicycle design so that
the new design has got the differentiation feature which is the only way to develop the market as
there are many established company in the market. From the GAP analysis, current IT
Infrastructure has revealed the following notes about the extent of the systems.

 The website is hosted by an outside service and managed by a hired webmaster

 The call center has the potential for expansion to 50 seats
 The system for managing e-mail is limited to 100 users
 The design team in Rome has a 3D engineering design software program on a stand-
alone machine
 The IT system is not integrated with any other computers
 No central servers for storing data and document and program stored in internet-based
storage system
 Back up of files stored by each user on external hard drive
 The employees use a local phone system, cell phones, or smartphones to communicate.
 Each site is subscribed with local internet service provider.

To support future growth and expansion strategy of the company, the company needs system
support because the current system is not adequate to provide high quality services to the
customers. There are a number of key system summary already have been identified in the above
that show the current lack of the system very clearly. The company must set up additional
hardware connection in each site so that operation cannot run on standalone basis rather
production process and designing process should run simultaneously. There must be set up
wireless connection with large bandwidth and speed so that email system could be updated to
support more than 100 people at a time. Each wireless connection should be WPA encrypted and
MAC address filtering for security concern. However, each should be equipped with a series of
servers to provide large storage capacity and serve programs. Access to the database server
should require SSL connection which is an additional layer of security of sensitive data of the
company. Moreover, the email server should have a large storage capacity for email storage to
maintain records of communications.

To integrate each site to a centralize communication protocol and to make a centralize database,
cloud computing technology can be recommended because it will let the company integrate
sensitive information into a central database which will update each day work within the day
immediately. By allowing this cloud computing system, management can make decision
promptly based on the current situation of the company.

If the above mentioned recommended emerging technologies can be successfully incorporated

with the Shore & More bicycles, it will facilitate the production process of the company by
sharing design to different department for the justification of the product development with
differentiated features. This will allow making right decision of the product development
process. There is a shortage of the storage capacity of the company for backup files and email
servers storage. Currently online virtual storage is being used to store email backup but with the
development of new suggested technology this storage scarcity problem will be reduced. If the
company can set up large storage and bandwidth capacity, then a sophisticated website could be
developed which will facilitate online order processing system so fast. Additionally, they can
take feedback via website from the customer about the design, features and other specifications.
This will help the company make better decision to product design and development.

C. Create a memo in which you discuss the human resource needs for the recommended IT
system.

Internal Memo

From: Josef John,

To: Sara Beresi, CIO
RE: Human resource needs for the IT system

Over the last week a number of new bicycle order have been place which has been the nature of
differentiating features and superior design of bicycles of the company. These demands have
shored up the possibility of great profitability in Dixon, CA, and our Jacksonville, FL, sites. But
existing number of workers in manufacturing department are inadequate to meet the new demand
for the bicycles. Moreover, as new technology initiatives have been incorporated in the business
environment, additional skilled specialists in the IT teams are also very urgent to deploy. As the
size of the business is increasing and have been planned to expand business almost double in
size, therefore, the company needs some additional skilled workers to meet the demand of
customers. These workers includes cloud computing specialists, database security force, website
development and maintenance workers, order processing employees, WPA encryption and MAC
address filtering specialists must be deployed on an emergency basis. As the business size is
planned to expand in to double in size, there needs many workers for the production process on
the basis of the geographical regional demand.

In addition, we are looking forward to uninterruptible power supplies (UPS) and back-up
generators for the sites that support production, so that no inventory hold-up is happened. To
cope up with the demand satisfaction, 30 additional skilled IT professional workers is vey urgent
to deploy for the maintenance of the new IT system in each office as soon as possible.

Please do consider these suggestions, comments, and/or review the suggested human resource
needs and if you have any recommendation of correction for these devices to office. Your
insights and solutions have always been cutting edge and I know this will be innovative this time

also.

D. Evaluate how the recommended IT system would help support the company’s
globalization.

Technological developments are conceived as the main facilitator and driving force of most of
the globalization processes. However, technology is a result of intellectual activities. Therefore
technology is type of intellectual property. Today technology is developed through research and
development both from the institutional and individual perspective.

The recommend IT infrastructure facilitates globalization by establishing a high-end web site

which allows order processing system, supply chain management system to be automatic. That
mean, customers can place order through email, website and call centre via phone call on the one
hand. On the other hand, suppliers can review the inventory and other materials for the
production via accessing the company website which is restricted to public access but is
available for the suppliers and business partners. This is done via extranet system. Inventory will
be replenished automatically to avoid inventory pile up which is very costly. This site has the
option to order processing with customization and payment processing as well. This process will
provide faster customer service as well as company can have the feedback directly from the
customers. As a result, company can improve its customer services and can identify the true
picture of customer loyalty.

Shore & More bicycles have been operating its business in the United States. This company is
planning to expand its scale of operation in larger scale. From the market research information it
is found that developing countries are the best target market of bicycles because automobile
market is not flourished in those region where the economic and social condition of the
customers are not congenial for the automobile manufacturing business. Therefore, this
information depicts an opportunity to the company to expand its business to the global market.
Thus, the new technology initiatives will facilitate the network and other infrastructure
development so that the company can take the opportunity to expand business to those
developing countries via websites.

As the suppliers can connect to the company via extranet which is the outcome of new IT system
development, Shore & More bicycles can outsource necessary instrument and input for the
bicycle production from out the US. This will reduce the input cost because input cost for the
bicycle manufacturing is relatively cheap in Asia pacific regional countries. If new IT system is
established, then company can outsource raw materials from Asia pacific countries which in turn
help the company maintain competitive price relative to the competitors.
By establishing new technology in the workplace, the company can improve brand identification
in international and domestic markets. When customers are satisfied from the service by
company’s website usability and bicycle, accessory, and apparel products, they will perceive
higher brand recognition in their mind for the company. This will help raising brand awareness
that includes a 20% increase in racer sponsorships, a 20% increase in apparel sales, and a 25%
increase in bicycle sales. This is one of the strategic goals of the company.

New IT initiatives will integrate whole systems for improved functionality of the departments.
This increased functionality of the departments will further help to provide customers support via
call center, email and direct selling from the website. These were some justifications and
evaluations of the recommended IT system that would help support the company’s globalization.

E. Create a report for the chief technology officer that includes the business justification for
implementing the recommended IT system.

To: Chief Technology Officer

Cc: Jan Wilkons; Jon Stephis; Bryon Mitrason

Subject: Business justification for implementing the recommended IT system.

With the development of technology, the world is moving faster and business processes are
rapidly changing. The recommend IT infrastructure assists globalization by establishing a high-
end web site which allows order processing system, supply chain management system so that
automatic inventory replenishment can be done to avoid inventory pile up which is costly as
well. This site provides customized order processing option to the customer and payment
processing as well. This process will provide faster customer service as well as company can
have the feedback directly from the customers. As a result, company can improve its customer
services that make customer satisfied and satisfied customers are the returning customer.
Therefore, the profitability of the company will increase as there are some loyal customers in the
market for the company.

With the new information systems which are developed based on the concepts of "open,"
"centralized" and "functional distribution and consolidation, the company is able to fine-tune its
responses to changes in distribution and huge volume of transactions, on a nationwide scale.
These information system capabilities are utilized for making a quick response to business
expansion and changes in the business environment, improvement of profitability" and
"development of new businesses" and operate as safe and secure.

New IT infrastructure includes high performance designing software, production plant, and new
product design experts and an attractive customer oriented web site. So, additional investment in
this area must be a major priority to facilitate overall production.

Finally, to support the business expansion and emerging demand for different types of bicycles,
the need for new worker is very much inevitable to smooth the production process as well as to
operate the whole IT infrastructure system. To meet this employee needs, company can hire
workers from the rivals by providing attractive compensation package for the employees.
Although this process is not so easy to manage skilled employees from the rival. The overall new
IT system implementation will help achieve the strategic goal of the firm to expand business to
the target level of a 20% increase in racer sponsorships, a 20% increase in apparel sales, and a
25% increase in bicycle sales.

Josef John,
IT team member
Shore & More Bicycles
U.S. Headquarters
Jacksonville, FL
 References:

Davenport, T. H. (1993). Process innovation: reengineering work through information

technology. Boston, Mass.: Harvard Business School Press.

Fred r. david (2011), Strategic management concepts and cases, 13th edition, Prentice Hall
Publications, pp-135-180, 260-296,

Hill, Charles. W. L. and Jones, Gareth. R. (2012), Theory of Strategic Management with cases,
9th edition, South-Western Cengage learning, pp- 228-295

Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of
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