ABC Logistics: IS/IT Governance in Asian Market Expansion

This case study examines the IT/IS governance framework of ABC Logistics, focusing on its expansion into the Asian market. It explores critical elements like risk management, resource allocation, and establishing organizational structures. The case study highlights factors ensuring stakeholder commitment, such as responsibility, dependency, and influence, while also addressing the importance of mitigating challenges in IS/IT governance, including project challenges and resource management. Furthermore, it reviews the focus areas of the IS/IT governance framework, which include strategic alignment, resource management, risk management, and performance management. The study also discusses the challenges faced during the adoption of the IS/IT governance framework, such as information gaps, funding gaps, and objective gaps. The case study provides a comprehensive analysis of the IT governance strategies and challenges faced by ABC Logistics, offering insights into the effective implementation and management of IT systems within the organization to achieve its business objectives.

Running head: CASE STUDY: “ABC LOGISTICS”
Case Study- ABC logistics
Name of the Student
Name of the University
Author’s Note

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CASE STUDY: “ABC LOGISTICS”
Table of Contents
1. Elements of an IS/IT governance framework..............................................................................2
2. Factors that helps in ensuring that the stakeholders commit to the governance framework......3
3. Importance of addressing challenges of IS/IT governance.........................................................3
4. Discussion about the importance of IS/IT governance................................................................4
5. Reviewing the focus area of IS/IT governance framework.........................................................5
6. Discussion of the focus area of IT governance...........................................................................6
7. Approaches as well as challenges for the adoption of IS/IT governance framework................7
References........................................................................................................................................8

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CASE STUDY: “ABC LOGISTICS”
1. Elements of an IS/IT governance framework
The different elements of IS/IT governance framework for expanding the organization of
ABC logistics into the Asian market are as follows:
Manage risk: It is identified that as the developments of logistic market by the
organization necessarily have some risk, therefore the main starting point must be clarification as
well as discussion of organization risk tolerance.
Allocate resources: It is identified that effective IT/IS governance framework mainly
requires different types of resources. It is found that portfolio management is one of the
procedures that assists in managing the diversity of size, timeframe, scope as well as initiatives
related with the project of developing logistics market (Fukuyama 2013).
Establish structures: IT/IS structure as well as procedures generally include number of
issues including the challenges that are associated with processes as well as platforms (Van
Grembergen and De 2017). However, it is identified that it also includes various types of macro
level issues related with organizational structures as well as nature of value creation within
different external relationships.
Communicate: IT/IS governance framework must be communicated properly within the
organization so that the stakeholders of the organization can easily understand the entire vision
as well as risk tolerance related with the development of new logistic markets (Charron, Dijkstra
and Lapuente 2014). It is identified that proper IT/IS governance framework will helps in
improving communication.

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CASE STUDY: “ABC LOGISTICS”
2. Factors that helps in ensuring that the stakeholders commit to the
governance framework
The factors that helps in ensuring that the stakeholders mainly commit to the IT/IS
governance framework:
Responsibility: If the stakeholder are committed to the IT/IS governance then the
stakeholders of the organization have proper legal, operational, ethical as well as moral
responsibilities towards the organization.
Dependency: The dependency of the stakeholders on the organization enhances when
the stakeholders of the organization are generally committed with the IT/IS government
framework (Zimmerman 2016). Thus, it is identified that enhanced dependency of the
stakeholders generally helps in highlighting that the stakeholders are engaged or committed to
IT/IS governance framework of the organization.
Influence: Proper commitment of the stakeholders to the IT/IS government framework
creates major impact on the organization’s decision-making procedure (Vob and Kemp 2015).
This helps in creating positive impact on the operation of the project.
Diverse perspective: When the stakeholder is committed with the IT/IS framework then
they will present different types of views in understanding new situations for identifying various
types of opportunities for action.
3. Importance of addressing challenges of IS/IT governance
The significance of addressing challenges within IS/IT governments are elaborated
below:

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Mitigation of project challenges: If the challenges associated with IT/IS governments
are addressed properly then the identification of risk would be easier (Samra 2016). It is
identified that proper identification of risk would be helpful in managing the risks with the help
of proper risk management as well as risk mitigation strategies. If the risks related with the IT/IS
governance framework
Appropriate management of resources: If the risks or challenges are properly
addressed then the challenge that occurs with inappropriate presence or maintenance of resources
can be managed properly (Stephenson 2013). Proper management resources would be helpful in
brining proper positive outcome on the framework of IT/IS governance within the organization.
Avoid negative impact on the organization : If the IT/IS government framework
related with the risk are highlighted properly then the impact that is created due to the
challenges of IT/IS governance does not create any negative impact on the organization as they
are resolved by proper risk mitigation or management strategies (Hooghe et al. 2016).
4. Discussion about the importance of IS/IT governance
IT/IS governance mainly deals with the performance as well as risk management of
different IT systems. The governance mechanism that is utilized by the IT/IS framework
generally focuses on the risk management as well as performance of the IT system that would
create value for the entire organization for ensuring proper as well as intended alignment of the
IT with the objectives of the business (Faguet 2014). Hence it is found that the IT/IS framework
would be found advantageous for identifying, establishing as well as linking mechanism with the
IT systems for managing various types of risks in order to make sure that the performance of the
organization “ABC logistics” assists in achieving objectives of the entire organization. It is

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CASE STUDY: “ABC LOGISTICS”
analyzed that the requirements of the IT governance generally consists of two types of
components that include structural component as well as process component (Pestoff et al.
2013). IT is analyzed that the structural component generally helps in pertaining the various
activities of the organization in a unique way that generally support the various activities of the
information technology.
5. Reviewing the focus area of IS/IT governance framework
The focus area of the IS/IT governance frameworks are as follows:
Strategic alignment: It is defined as one of the procedure that generally assists in linking
the structure of the organization as well as resources with the business environment (Andonova
et al. 2014). The procedure of bringing proper actions within the project is only possible with the
help of IT/IS framework.
Resource Management: The different types of resources that are required for the IT
related project are generally identified. It is found that IT/IS government plays an important role
in managing the resources of the project so that the project would become successful (Downes et
al. 2016). Proper resource management by the IT/IS government framework would bring
positive impact on the project.
Risk management: The IS/IT framework mainly focuses on the risks that are associated
with the project. It is identified that proper risk identification by the IS/IT governance framework
assists in analyzing the impact of the risks on the project (Gereffi and Lee 2016). Proper risk
mitigation strategies or management plan would be helpful in managing the identified risk. Thus

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CASE STUDY: “ABC LOGISTICS”
it is analyzed that focus on the areas of risk management by the IS/IT governance framework
would be advantageous.
Performance management: Performance management is one of the procedures that is
mainly undertaken by the employees as well as managers to work together for their plan, in order
to monitor as well as review the objectives of the work as well as the entire contribution within
the organization (Meijer and Bolívar 2016). It is identified that performance management
generally depends on the capability of the employees of the organization to bring appropriate
result within the project of developing the logistic market.
6. Discussion of the focus area of IT governance
The focus areas of the IT governance for the project “development of logistic market”
include:
Performance management: The IT governance framework mainly focuses on the
performance management of the workers or staffs of the organization. This is because proper
performance of the staff members will bring positive result on the project. The IT governance
generally focuses on the performance management in order to develop proper logistic market by
the organization, which would be helpful for making “ABC logistics” as one of the leading
organization in the logistic market (Janssen and Estevez 2013). It is identified that proper
performance management by the organization would be helpful in creating proper as well as
effective work environment in which the staff of the organization are generally enabled to work
achieving the objective as well as goals of the organization.

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CASE STUDY: “ABC LOGISTICS”
7. Approaches as well as challenges for the adoption of IS/IT governance
framework
The challenges that are faced due to the adoption of IS/IT frameworks are elaborated
below:
Information gap: The organization does not have proper communication facility and
thus they face difficulty in communicating with different departments of the organization. This
will create major impact on the adoption of IT/IS governance framework within the organization.
Funding gap: The organization “ABC logistics” want to develop logistic market in its
region of operation. However, the project faces difficulty due to recent downturn in the
Australian dollar therefore the CEO wants to concentrate new logistics market within the Asia
market (Faguet 2014). It is identified that developing logistics market within Asian countries also
requires proper funding support. If the organization does not get proper funding support then
number of challenges will e faced by the organization.
Objective gap: The objective of the project “development of logistics market” must be
reflected in such a way that the stakeholders of the organization get proper idea about the project
as well as its importance (Downes et al. 2016). However, due to ineffective way of
representation the organization faces number of challenges in adopting the IT/IS government
framework.

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CASE STUDY: “ABC LOGISTICS”
References
Andonova, L., Betsill, M.M., Bulkeley, H., Compagnon, D., Hale, T., Hoffmann, M.J., Newell,
P., Paterson, M., Roger, C. and VanDeveer, S.D., 2014. Transnational climate change
governance. Cambridge University Press.
Charron, N., Dijkstra, L. and Lapuente, V., 2014. Regional governance matters: quality of
government within European Union member states.Regional Studies, 48(1), pp.68-90.
Downes, D., Rock, P. and McLaughlin, E., 2016. Understanding deviance: a guide to the
sociology of crime and rule-breaking. Oxford University Press.
Faguet, J.P., 2014. Decentralization and governance. World Development,53, pp.2-13.
Fukuyama, F., 2013. What is governance?. Governance, 26(3), pp.347-368.
Gereffi, G. and Lee, J., 2016. Economic and social upgrading in global value chains and
industrial clusters: Why governance matters. Journal of Business Ethics, 133(1), pp.25-38.
Hooghe, L., Marks, G., Schakel, A.H., Niedzwiecki, S., Osterkatz, S.C. and Shair-Rosenfield, S.,
2016. Measuring regional authority. Oxford, UK: Oxford University Press.
Janssen, M. and Estevez, E., 2013. Lean government and platform-based governance—Doing
more with less. Government Information Quarterly, 30, pp.S1-S8.
Meijer, A. and Bolívar, M.P.R., 2016. Governing the smart city: a review of the literature on
smart urban governance. International Review of Administrative Sciences, 82(2), pp.392-408.
Pestoff, V., Brandsen, T. and Verschuere, B. eds., 2013. New public governance, the third sector,
and co-production (Vol. 7). Routledge.

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Van Grembergen, W. and De Haes, S., 2017, January. Introduction to IT Governance and Its
Mechanisms Minitrack. In Proceedings of the 50th Hawaii International Conference on System
Sciences.
Vob, J.P. and Kemp, R., 2015. Sustainability and reflexive governance: introduction. Technische
Universität Berlin.
Zimmerman, E., 2016. Introduction. In Think Tanks and Non-Traditional Security (pp. 1-15).
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