MITS4001 Assignment: Security Services Limited Case Study Report

This report offers a comprehensive analysis of the Security Services Limited (SSL) case study, examining the value derived from its current information systems portfolio, the need for a coherent IT strategy, and the strategic benefits of IT investments. It explores the classification of IT resources using the Ward and Griffith Matrix, identifies the values these resources provide, and suggests metrics for evaluating IT investments, such as payback period and ROI. The report emphasizes the importance of conducting critical success factor and value chain analyses to develop an effective IT strategy aligned with business objectives. It also discusses the potential benefits of improved IT infrastructure, including enhanced business capabilities, reduced operational costs, and a competitive advantage. Furthermore, the analysis addresses the current decentralized IT management structure within SSL, advocating for a centralized system to improve efficiency and reduce costs, with specific recommendations for the management of various IT functions. The report also emphasizes the strategic potential of IT investments in areas such as customer engagement, supply chain management, product differentiation, and core competency enhancement, while also suggesting the use of Business Process Re-engineering (BPR) and VRIO analysis to maximize the value of IT investments.

Security Services Limited Case Study
Student’s name
Institutional Affiliation(s)

Question One
To identify the value that SSL derives from the current portfolio of information systems,
it is imperative to classify the existing applications, processes, and people according to the Ward
and Griffith Matrix. The IT physical resources at SSL comprises of the PCs, IBM AS/400
minicomputer and the WAN connectivity. The software at the firm includes the Pegasus payroll
package, budgeting & costing software, routing and rostering software, and productivity type
packages [1]. IT Human resources at SSL include the ex-policeman working at the Private
Transport Division, the 24-year-old Business Computing Graduate working in the Business
Security Division, the hybrid manager, four programmers, the analyst/ programmer, six data
entry clerks, a system analyst, and two computer operators. The first value the IT resources
provide to SSL is to act as a support system. The assets that fall under this category include all
the software at the company, which makes it possible to run business functions. For example, the
Pegasus payroll package eases the payment process hence helping the business to maintain a
highly motivated staff [2].
The other value of the current portfolio is that it contributes to the operationalization of
SSL processes and activities. Take, for instance, the Autoroute application which runs on the
computers in the transport department of the Private Transport Division which helps in planning
and scheduling routes to optimize business operations. Besides, the LAN network helps in
maintaining seamless communication between the different departments in the Home Office
Services Division. Another value delivered by the IT resources at SSL is steering the
organization towards the realization of the set goals and objectives [3]. To illustrate, the business
productivity package in the personal computers of the Home Office Services Division helps in
determining the level of productivity in the company and how to bolster productivity. Also, all

the IT experts such as programmers and system analysts have a strategic and operational value to
the company since they hence in improving operational efficiency at the company [4].
Given the pace of today’s technology, there is no denying that SSL will invest in IT
infrastructure and as such, there is dire need to establish the metrics to evaluate information
system investments. One such metric is the payback period to assess how long it will take for the
company to recuperate the financial resources used in IS investments. For example, if the
company spends USD $10000 to purchase a personal computer, the payback period should show
how long it will take to get the investment back. Also, the company should consider using the
return on investment (ROI) of investing in IS [5]. The return on investment indicates the value
that a firm will generate from acquiring an asset or channeling money to a venture. Furthermore,
going into the future, the company should assess how an IS investment will contribute to agility
in decision making as well as improve the quality of business decisions.
Question Two
Notably, many parts of the company lack a coherent IS strategy- a deficiency which
might severe the company’s sustainability and competitiveness. Therefore, there is a need to
construct an IS strategy which is supportive of the business strategy [6]. One of the ways the
company can design an effective IS strategy is to conduct a critical success factor analysis to
establish the IT needs of every department and business unit of the company. Each department or
business unit has the essential functions which if not well addressed, they can stall the firm’s
operations. Therefore, identifying the critical success factors in every department would help to
determine where IT investments are most needed. To illustrate, a transport department is likely to
require a route planning package more than a sales department or marketing unit [7]. Secondly,
conducting a value chain analysis will help the business to identify its current IT capabilities as

well as those assets which offer a competitive edge. After identifying the IT assets, which are
rare, unique, and valuable, SSL can then use this insight to determine where to make more IT
investments.
Furthermore, a value chain analysis helps a firm to know the capabilities it is lacking but
which are vital in improving efficiency [8]. Take, for instance, the fact that the current
technology infrastructure does not support digital communication between the divisional areas
and headquarters. A value chain analysis can help in pointing the need to invest in digital
communication infrastructure, which would improve the firm’s core competencies. Deciding the
IT planning process would also be an integral step in helping SSL to design An IT strategy
which is supportive of the business strategy. It is imperative to state that SSL’s organizational
structure is a matrix one where the heads of business units are solely in charge of their
departments [9]. Therefore, the IT planning process should not veer off too far from this
arrangement. However, IT planning is a strategic function, and for this reason, a middle-out or
innovative planning process would work well in SSL’s case. And then, it would also help to
determine if the strategy is a long term or short timed and whether it aims to serve internal or
external needs or both.
If SSL succeeds in establishing an IT strategy which is suitable for the business strategy,
there are some benefits it will reap. One of them is the improvement of business capabilities. For
example, the current IT strategy hampers communication between the business units and the
headquarters, and it also leads to redundancy. An effective IT strategy would remove this hurdle
and in turn, enhance the firm’s capability [10]. Also, there is no denying that the new-found
efficiency would bring down SSL’s cost of operations since it would remove duplication of
functions. To illustrate, there would be no need to maintain six data entry clerks on the payroll

since communication would be seamless. Thirdly, SSL would gain an unrivaled competitive
advantage since the technology infrastructure would improve the quality of decisions and help
the firm to take advantage of new opportunities in the market [11]. A business unit manager who
has a new idea that would improve the value proposition will be able to communicate
immediately with the headquarter executives instead of waiting till the message arrives through
manual means- time by which another firm might have seized the opportunity.
Question Three
When SSL decides to channel more resources to the IS department, they will need to
evaluate if these investments have strategic benefits to the organization in the divisional and
company-wide perspective. Although the case study has not stated, the security services industry
is a competitive one meaning that failure of a business to deliver a unique value proposition will
see the customers go to another provider [12]. For this reason, investing in IT will enable the
business to deliver unique value to the clients. To illustrate, the domestic security division may
experience myriad challenges if it does not leverage cutting-edge technology while marketing
new services. Also, customers in the 21st century are very demanding and require the business to
go out of its way to meet their demands. Also,social platforms have increased consumer power to
new heights. As such, IS investments will help improve engagement with customers and
ultimately inspire brand loyalty [13].
The suppliers to SSL’s operations such as the car dealers and providers of uniforms are
very integral to the company’s operations, and in the current landscape, the IT infrastructure does
not facilitate trust and communication with the suppliers. Imagine if a supplier to the Security
office division wants to follow up on their payment. Following up would be difficult and
strenuous since it is near impossible to check where the process has reached. However, if the

department had state of the art document system, a supplier does not have even to visit
physically since one call to the office will give them all the answers. Therefore, IT investment
will streamline the supply chain process [14]. The IT investments will also help the company to
differentiate its products from the others. For instance, in the home security division, the firm
might use the Internet of Things to bolster security. Another strategic potential is the opportunity
to enhance the core competencies, which are the source of competitive advantage. For example,
improving a capability such as information processing would translate into the competence of
quality and timely decisions.
Business process re-engineering would come in handy in maximizing the potential of IS
and IT at SSL [7]. BPR would help the firm to establish how the business processes add value to
the business. For instance, the BPR would look at the procurement process and establish the
redundancies and duplicities which create inefficiency in the process. Using a VRIO analysis in
the BPR would point out the processes which are most valuable, rare, and non-imitable since
these are the ones that are a source of SSL’s competitive advantage. After such an analysis, the
BPR process would assist in establishing the process which could accrue value if improved
through IS investments. The BPR could also be instrumental in identifying the processes which
should be eliminated or those which can be merged with others [11].
Question Four
There is one overarching fact when it comes to the IT functions at SSL- the function is
distributed across the business units with no central management from the headquarters. It is,
therefore, no doubt that some divisional areas like the domestic security division have no IS
investments while the headquarters offices lag behind the home office services division [9].
Also, the discrepancy in the IT personnel between the various divisions points to the lack of

centralized IT management. Whereas the private transport division is managed by an ex-
policeman who has the experience, but no training in IT, the home office services division is
well-endowed with-IT experts taking into account the presence of a hybrid manager with IT and
finance experience and two programmers [10]. The disintegration in the way IT is managed
stems from the way the company has grown over the years. The firm has grown from organic
growth from the original core business, startups in related security segments and a takeover and
merger with companies offering related services. Therefore, although the business divisions are
under the umbrella of one company, they are independent in functional areas such as marketing,
sales, and IT leading to the lack of centralized IT management [2].
As at per now, the IS not working optimally to serve the firms objectives hence the need
to explore a suitable location for IT services in the future. When it comes to the operations
management of the IT infrastructure, a centralized management system would help in improving
efficiency and also contribute to cost reduction since every department does not have to hire its
technician. For instance, a centralized IS operations management will put the responsibilities
capacity planning and backup in the hands of one department [14]. When it comes to the IS
strategy, it is best to consider it as a strategic function to be carried out by the top-level
executives. Components of IS strategy such as IT staffing and architecture should be intertwined
with other strategic objectives as this is the only way to inject a culture of leveraging on IS to
optimize business operations. Database administration also needs to be managed from a central
location. The only function that should be decentralized is user support functions like help desk
support and shared services since these vary from a unit to another [13].

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