PROJECT PROPOSAL

Instructions: 1. Please complete the form using Capital Letters.2. Completed proposal must be submitted through the assignment drop box

Course: University of WalesBachelor in Science In Business Information Technology

Name of Student: <<My name >>

Email Address: <<My email>> Contact No: << My tel >>

Student ID: << My ID >>

Project Title: IT STRATEGY PLANNING FOR GLOBAL SHIPPING PORT MANAGEMENT

Total Number of Pages including this cover page: 16

Date of Submission:

<< The date of Submission >>

Declaration: I declare that this proposal is my original work and that I have acknowledged any use of published or unpublished works of other people. I understand that I will be penalized for plagiarism and late submission.

_______________________________

Table of Contents

1 BACKGROUND.....................................................................................................1

2 AIM..........................................................................................................................3

3 OBJECTIVES..........................................................................................................3

4 RESEARCH METHODS/APPROACH..................................................................4

5 RESEARCH DESIGN.............................................................................................5

5.1 Methods of primary data collection.....................................................................6

5.2 Sources of Secondary data...................................................................................6

5.3 Interpretation of Data...........................................................................................7

6 CHALLENGES.......................................................................................................7

7 TASKS.....................................................................................................................8

8 TIME PLAN............................................................................................................8

9 REFERENCES:.......................................................................................................9

Appendix 1.........................................................................................................................10

Appendix 2.........................................................................................................................11

Appendix 3.........................................................................................................................12

Appendix 4.........................................................................................................................14

IT STRATEGY PLANNING FOR GLOBAL SHIPPING PORT MANAGMENT

1 BACKGROUND

The author currently works for a leading shipping port operations company called APM

Terminal (A.P. Moller Terminal) better known as “Maersk”. The A.P. Moller group of

companies head quartered in Copenhagen is a large conglomerate whose four main

business focus are Shipping (Maersk Line), Port Operations (APM Terminals), Maersk

Oil&Gas and Retail.

APM Terminals is present in 45 ocean shipping ports around the world, of which 13 are

under expansion, and 20 ports are either under development or in a concession

negotiation stage. Appendix 1 shows the world map indicating the location of these ports.

By the year 2010, this number is expected to grow to 85 ports. In the current 45 ports, the

IT infrastructure consists of the following:

500 Servers and 12,000 personal computers (PC).

40 Primary Vendors – Terminal Operating System (TOS), Enterprise Resource

Planning (ERP) & Technology

Over 100 IT vendors being used worldwide

3 Million security attacks on in-house systems per month

500 Mill system transaction updates annually.

Apmterminals.com site receives 14,470 hits per day

26 different network domain configurations

IT infrastructure & Systems support 13,600 Internal Users

The total annual operating cost for the above list is US$ 72 million and is expected to

grow to US$ 137 million per year with the corresponding increase in business by the year

2010. How to reduce cost for this existing systems? As indicated by Hoffman T (2006) it

does take creative thinking while using tools like benchmarking and focusing on good

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business processes to achieve impressive results. Hoffman T (2006) also describes how

many IT chiefs were too quick to embrace the “low hanging fruit” such as hardware

consolidation and standardization or renegotiated software licensing agreement. This

ironically leaves them increasingly difficult to find new avenues for operational savings

due to the lack of understanding on where the problem areas are. Sometimes a strategic

assessment of possibly spending more money now can save a lot in the long term.

APM Terminals current plan for growth is being proposed to be developed through a

reliable networked system portfolio that is rapidly deployable and extensibly utilized with

an optimal balance between Standardization / Flexibility and Efficiency / Effectiveness.

The diagram below depicts how their deduced balancing is to be achieved.

Figure 1. Balancing standardization, flexibility, efficiency and effectiveness as an IT

strategy (extracted from APM Terminal IT strategy plan)

The current IT senior managers in the company have realized that some of the learned

tools and approach need to be leaner in the future strategy as such there is a need to

adopt a process model that will aid alignment of IT to business needs to:

Enable strategic information to be consistently and accurately derived from

operational data.

Promote data sharing - reduces data redundancy and maintenance costs.

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Standardization : Flexibility

Efficiency : Effectiveness

Improve productivity by component development, management buy-in and reuse

existing resources as much as possible.

Reduce software development cycle time.

Share information with customers and business partners

Process Excellence Operations to align usage and deployment

Information Optimization to analyze effectiveness

2 AIM

The aim of this dissertation is to provide a complementary study into some cutting edge

proposal in strategic information system planning (SISP) for a company such as APM

terminals to help them in their quest to reduce cost in IT expenditure and increase their

business productivity.

3 OBJECTIVES

The main aim of the IT management at the company is to significantly reduce the cost of

IT expenditure by US$132 million by the year 2010. They plan to achieve this by

substantially increasing the new system frameworks’ effectiveness, efficiency and

flexibility.

The objective of this dissertation is to:

1) Introduce several leading IT planning strategies.

2) Select or design a hybrid strategy that will assist the company in their aim.

Appendix 2 shows a typical IS strategy development process adapted from

Ward et al 1996 in Algeo D 1997, that can be used for this objective.

3) Prove the cost savings that can be achieved with this designed strategy.

4) Formulate new and or alternative strategy concepts in the research process to

possibly enhance objective 3.

5) Discuss the outcome of the research effort for the company.

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The research paper may include management presentation documentation for concept

approval and expenditure justification for adoption of project.

4 RESEARCH METHODS/APPROACH

Ghauri & Gronhaug (2002) explains that “research methods refer to systematic, focused

and orderly collection of data for the purpose of obtaining information from them, to

solve and/or answer our research problems or questions. The research for this project will

likely take on a combination of explorative study and descriptive research. This method

of the research will be done as indicated by Segars & Grover (1999) on six broad process

dimensions, namely: comprehensiveness, formalization, focus, flow, participation and

consistency. The detailed descriptions of the six broad process dimensions extracted

from Segars & Grover (1999) can be found in Appendix 3.

Explorative study will most likely cover most of the objectives while descriptive research

shall be used to answer the who, what, when, where and how questions. The findings here

will steer APM terminals to make sound decision which according to Zikmund 2003, a

process of resolving a problem or choosing among alternative opportunities.

The explorative research segment will include much of data based research using both

quantitative and qualitative analysis. It will cover a comprehensive study for the

following category covering all 45 ports of the currently operating terminals:

IT Processes

Systems

Infrastructure

Organization

IT Governance

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5 RESEARCH DESIGN

Fawcett & Downs (1986) explains that descriptive theories are generated and tested by

descriptive research. According to Fawcett & Downs (1986) such research are also called

explorative research . In keeping synchronization to the objectives of this project, the

stages for the design of the research will be as follows:

1) Study into modern IS planning strategies.

2) Simultaneously during stage 1, initiate explorative research to create

spreadsheets of existing IS infrastructure and other data gathering efforts

mentioned above.

3) Construct a hypothesis a possible hybrid strategy for the company.

Deliverable – proposed IS strategy.

4) Get approval and buy-in from the company IT senior managers. (*** Decision

point**; alternative methods may be needed).

5) Rework the proposed hybrid strategy to include information gathered in stage

number 4.

Deliverable - finalized strategy and cost saving proof of hypothesis.

6) Submit final dissertation with recommendations of possible alternative

approaches, future deliberation based of emerging business trends and

conclusions.

The initial explorative stage of research for this project in IS Strategy Planning will be to

identify the many proven strategy planning methods theoretical or otherwise. This

identification will be done by reading books written on this topic, other research papers

and periodicals, industry trends based on documented case studies, professional and

reputable business magazines and internet resources. Senior IT Management at APM

Terminals has at this stage already discovered general problems and to some extend

hypothesized some possible solutions. Some of this discovery is listed in the background

above and shall be included for the explorative research. As indicated however by

Zikmund 3003, that “uncovering conclusive evidence to determine a particular course of

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action is not the purpose of the explorative research rather it is conducted to clarify

ambiguous problems.

5.1 Methods of primary data collection The quantitative data to study each terminals systems and infrastructure will be collected

from the respective IT departments of the country office. This primary data will be

recorded in a spreadsheet and will be re-handled to assess inventory profile and cost

profile. The future cost prediction to technology change will be added to the spreadsheet

for detailed comparison and realize the actual savings. These data will also be

extrapolated to show effectiveness and its efficiency.

The qualitative information that is being sought will come mainly from interviews with

senior company management, IT managers at the HQ, IT managers at the local terminal

office and users or super users of the various systems. A typical approach to quantitative

and qualitative analysis is shown in appendix 4.

Last but not the least is to hear some direct comments from our customers. A simple

questionnaire will be prepared to get our customers to tell us what they actually think of

us as business partners and how they rate our service quality and how we can better

interface to their IT solution to better track their shipping commodities.

5.2 Sources of Secondary dataAccording to Brannick & Roche (1997), there are two main advantages of secondary

data. First it is quicker to gather the data and secondly it is cheaper and easily available

then primary data. The sources for secondary data will be extensively used to gather

most of the information for this research that may come from:

1) Journals, white papers, text books and internet resources.

2) The company HQ’s IT department.

3) Contacting each individual terminal IT.

4) Management and employees of each terminal.

5) Customer representatives.

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6) Business partners / vendors.

The disadvantage of this data according to Brannick & Roche (1997) is how reliable are

they? So credibility of data here will be highly critical.

5.3 Interpretation of DataThe quantitative data from the spreadsheet will be used to track mainly the dollar

objective that needs to be proven with this project. It will also show how standardization,

efficiency, effectiveness of usage will also improve over time. The data should also be

able to provide staffing requirements with this initiative and help identify the need for

relevant vendors and resource development plan.

The qualitative data collected from interviews, group discussion and questionnaire are

mainly sources to create ideas to assess how we can add value to our customers in terms

of showing them that we care about their success. Identifying and improving on better

communication and provide for them an on-demand search for their information will take

the guess work out of their doing business with us.

The data gathered from the explorative research will now be used to test the hypothesis of

the derived planning strategy to save APM Terminals US$ 132 million by the year 2010.

6 CHALLENGES

One of the biggest challenge envisaged in this project undertaking is the proximity of the

authors current working location (Los Angeles, USA) and the Company’s headquarters in

the Hague, Netherlands. The General Manger of IT and Business processes Mr Scott

Kelley at the headquarter office is the main sponsor of this project. He has accepted to

sponsor this program and is currently preparing an official note in this regard.

Unfortunately, this letter of sponsorship is not available at time of this project proposal

submission.

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7 TASKS

TASK 1 Identification and Submission of project proposal

TASK 2 Establish a working relationship with the project supervisor.

TASK 3 Deliverable 1 : A hybrid strategy. – Progress report.

TASK 4 Presentation of strategy to company management.

TASK 5 Deliverable 2: Approved strategy. – Progress report.

TASK 6 Deliverable 3: Submission of dissertation and project viva.

8 TIME PLAN

TIME PLAN FOR DISSERTATIONSubmission of project proposal              Acceptance of project                Student on vacation              Detailed study of IT system and infrastructure              Research of modern IT strategies.              Derivation of new IT strategy for the company              Presentation of strategy to senior managements.              Submission of first draft of dissertation            Conceptual change if any after management presentation              Second draft of dissertation                Final submission of dissertation                                   

  April May June July August September October November December

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9 REFERENCES:

1. Hoffman T (2006). Squeezing dollars for maintenance. Retrieved on May 1, 2006

from :

http://www.computerworld.com/hardwaretopics/hardware/story/0,10801,110972,

00.html

2. Algeo D (1997), Developing the IS strategy. Retrieved on April 26, 2006 from

https://www.cs.tcd.ie/courses/ism/smis/topics/isstrdev/isstrdev.htm

3. Ghauri & Gronhaug (2002). Research methods in Business Studies; a practical

guide (2nd Ed). Harlow, England: Prentice Hall.

4. Segars & Grover (1999). Profiles of Strategic Information Systems Planning.

Extracted on April 28, 2006 from:

http://www.bkae.hu/nemeslaki/02folyamat/php75GXDU_article.pdf

5. Zikmund W.G (2003). Business Research Methods 7th edition. Mason OH:South-

Western, a division of Thomson Learning.

6. Fawcett & Downs (1986). The relationship between theory and research.

Norwalk CT: Appelton Century Croft.

7. Brannick & Roche (1997). Business research method; strategies, techniques and

sources. Dublin Ireland: Oak Tree Press.

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Appendix 1

Figure 2. World map showing current APM Terminal locations.

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Terminals

New Implementations

Terminals under expansion

Appendix 2

Figure 3. A framework of model and techniques to develop an IS Strategy (extracted

from Algeo D 1997)

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Appendix 3

Details of the the six broad process dimension for strategic information system planning (SISP) extracted from Segars & Grovers (1999) are as follows:

SISP process dimension

Explanation of the dimension

Comprehensiveness a. Exploration of a wide range of

alternatives.

b. Identifying a full range of objectives.

c. Constantly balancing the cost and risk

of the various consequences.

d. Searching for information to

constantly evaluate alternative actions.

e. Seeking expert advise on judgments

and for the above alternative actions.

f. Reexamining the positive and

negative consequences of all derived alternatives.

g. Making detailed plans, which should

include the consideration of contingencies for implementing

a chosen action.

Formalization The establishment of structure, techniques, written procedures

and policies that guide the planning process.

Focus Having a sound balance between exploration through limitless

creativity and control orientation that exist in the process structure

of strategic planning.

Flow Within a management hierarchy , the strategic planning may

need a information or decision flow bottom-up and top-down

respectively. It concerns the vertical flow of the planning system.

Participation In contrast to the flow, participation is concerned with the breadth

of the involvement on strategic planning. This includes

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SISP process dimension

Explanation of the dimension

involvement of individuals representing the various functional

areas of the company providing lateral communication in the

planning process.

Consistency Capturing the frequency of planning

activities/evaluation/revision of strategic choices. The favored

scenario is continuous planning process, constant communication

among planning participants and frequent assessment and

revision of strategic decisions.

Table 1. Six broad process dimension for strategic information system planning (SISP) extracted from Segars & Grovers (1999)

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Appendix 4

QUANTITATIVE QUALITATIVE

1. A high level system and infrastructure breakdown in each port.

2. Maintenance and upkeep/operation

cost of having these systems.

3. Categorize for uniformity and

standardization comparison of

existing systems and infrastructure

for business model analysis.

4. Measure throughput of every

system and correlation to its

business logic cost effectiveness.

5. Collate current and future cost

breakdown for tracking research

goals.

1. The level of usage of these system

and infrastructure and its effectiveness

to the business.

2. IT managers’ assessment on the

economical advantage in the current

cost drivers.

3. Users perception on the

effectiveness of their systems to

evaluate the utilization capabilities and

the effect of change.

4. Assess the ease of use of these

systems and operator responses to

future/more cost effective technology

usage.

5. Learn the effect of the initiative to

customers and partners.

Table 2. Quantitative and qualitative analysis for IT strategy in change management

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