Strategic Development of IT Business Essay
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Strategic Development of IT Business Essay Example
In the course of preparing the presentation there have been several critical issues that our group had to address and evaluate in order to objectively identify the nature and extend of impact on the development of IT infrastructure within the selected area of business or organization.
The initial proposal of the work suggested for us to choose an organization that would serve as a basis for any further analysis. Our choice is a Germany based multi-national Logistics Service Provider (LSP) “GEIS Cargo Logistic Company”. The company has several headquarter branches in various parts of the world but for our exercise we have decided to examine the relationship between German HQ and Asia Pacific branch located in Hong Kong.
The IT solution proposal we were evaluating is organization, structure, and technical thresholds of implementing Central Host Server Solution (CHSS). This kind of solution is beneficial to the business of the organization due to several reasons:
- Allows to centralize the processing of the information, thus reducing the costs of server running and hosting by increasing the speed of access from various parts of the world and localizing the potential software errors and hardware malfunctions.
- Out of site server solution allows the company to focus its attention on core business and leave the IT part of the question to hired third company (outsourced IT support). This leads to decrease in company employed resources and processes optimization.
From the technical point of view we had to look at the risks that are inevitably present when any company decides to amend the IT structure of the enterprise. One of the first issues is the consolidation of the information within GEIS Cargo Logistic. Previously the company was operating different types of servers (with subsequently different storage algorithms and architecture) and now it aims to consolidate its operations in one place. This required a common approach to data storage (consistent DB hierarchy) and well developed centralized administrative tools. A centralized point of access and processing must be heavily monitored to detect potential info outflow and minimize exposure to uncontrolled external data clients.
Along with technical issues a set of human factors exists in the proposed improvement of IT structure of GEIS Cargo Logistic. First of all, people need sufficient trainings to operate within the new environment. The communication of regional headquarters with data center must be improved, and basic models of operating are to be formally recorded. As the result this will lead to better human resource utilization and overall increase in job satisfaction with later development of balance in work-personal life individual’s schedule.
The major risks identified in the course of presentation are:
- Failure of WAN. The exposure to this risk is rather high. The situation is worsened by the fact that the structure of the IT is becoming very centralized, and much is dependable on one small point. Out of the order of one channel can cause additional workload on the rest with the potential of malfunctions and shutdowns. The ISDN backups are the solutions to this. Various methods of access to information through different channels can provide for a better control of data flow. Along with WAN a “traditional” LAN / ISDN points of access must be arranged.
- Lost of Local IT expertise needed for routine operations. Risk is low and is eliminated through the centralization of operations where IT specialists take control of core processes and routine operations. Outsourcing of major IT activities can be helpful at this point of time
- However, point #2 leads to another risk arising where the control of IT operations is given to one vendor who later on decides to charge higher bills for its services. This can be avoided by careful examination of propositions and selection of reputable vendor for IT purposes.
In the conclusion I would like to state that:
The market of IT technology is one of the most profitable out of all modern businesses. The Return on Investment exceeds average industry indicators, payback periods are short, though the useful life of equipment is short as well. The sustainable growth of the industry allows for predictable investment and forecasting. CHSS can achieve higher efficiency and bring out more support for the above issues to lead GEIS Cargo Logistic to the enhancement of competitiveness in order to generate growth in revenue and organization simultaneously. Moreover Central Hosting Server Solution is a solid foundation for future business infrastructure development.